Plugged In @ Hinman Straub

April 9, 2021

What’s Inside

  • 2021-22 Budget Passes
  • NYSERDA Names President and CEO
  • Commission on Judicial Nomination Release List of Nominees for Court of Appeals Vacancy
  • Reminders and Links
  • Coming Up

2021-22 Budget Passes

The Governor delivered his FY 2022 Executive Budget address on Tuesday, January 19 in a presentation offered virtually from the State Capitol in Albany. New York then faced an estimated nearly $5 billion current year gap and a projected $10 billion shortfall for FY 2022.

For many weeks, the Governor urged federal support to state and local governments nationwide in response to the pandemic. He often stated New York’s budget gaps are attributable to the federal government’s failings in responding to the COVID-19 emergency and too large for the state to resolve on its own. The budget proposal released in January was premised on the state receiving billions of dollars in federal aid.

In March, federal lawmakers approved the “American Rescue Plan Act of 2021,” (ARPA) from which New York State government will receive $13 billion in unrestricted aid, as well as $6 billion dollars for cities, $4 billion dollars for counties, $825 million for local governments and $350 million for state capital projects. The state’s budget deficit was substantially reduced by funding approved under ARPA, and ultimately eliminated by significant additional revenues from new state taxes included in the budget.

The FY 2022 State Budget is comprised of a $212 billion plan that closes a projected $15 billion deficit in the prior and new fiscal years. Key provisions in the FY 2022 Budget include:

Broadband Access – The FY 2022 State Budget requires broadband service providers to offer a $15 a month internet plan for low-income customers meeting revised eligibility criteria.

Economic Development – The FY 2022 Budget creates the “COVID-19 Pandemic Small Business Recovery Grant Program,” to provide $800 million in grants to assist small businesses impacted by the pandemic. The new budget also omits the Executive proposal to merge the Centers of Excellence into the Centers for Advanced Technology program.

Education – The FY 2022 Budget would provide $29.5 billion in funding to public schools through school aid, restoring the Executive’s proposed cuts in state support to Foundation Aid, and providing all districts with an increase over 2020-21. The final budget commits to a full phase in of Foundation Aid over the next three school years (2023-24 school year).

Excluded Workers – The new state budget establishes a $2.1 billion “Excluded Worker Fund,” to provide benefits to workers who lost their jobs during the COVID-19 pandemic but were otherwise ineligible for unemployment insurance.

Environment – The FY 2022 Budget includes a $300 million appropriation for the Environmental Protection Fund (EPF) for investments in solid waste programs, parks, open space, and climate change mitigation programs. The FY 2022 Budget also includes a $500 million appropriation to support clean water infrastructure.

A $3 billion environmental bond issue that was to be on the 2020 ballot – and postponed due to the pandemic – will now be on the November 2022 general election ballot.

Higher Education – The FY 2022 Budget increases support for the Tuition Assistance Program by $87.8 million, in order to increase the maximum award by $500 to $5,665. The new budget also extends eligibility for scholarship award recipients affected by the COVID-19 pandemic, and provides an additional $7.1 million for the Higher Education Opportunity Program (HEOP) for a total of $42.6 million, and $3.7 million more for the Liberty Partnerships Program to total $22 million.

Infrastructure –The new budget includes $1.3 billion for the Empire Station Complex in New York City, but limits the use of the funds to the Penn Expansion or other transportation improvements. The budget also includes a 32% increase in local highway aid, allocating $1.078 billion for an array of transportation capital programs. A new $100 million program will prioritize road repair in urban areas. The FY 2022 State Budget also includes $100,000,000 for a sixth round of Downtown Revitalization Initiative (REDC) grants.

The FY 2022 State Budget appropriates $20 million for the Arts and Cultural Facilities Improvement Program, to provide facility enhancement grants to arts and cultural organizations statewide. These grants will help organizations comply with COVID-19 health regulations, including flexible seating, HVAC and filtration upgrades.

The new budget also includes $105 million in new capital funding for the Olympic Regional Development Authority, including $92.5 million for improvements in advance of the 2023 World University Games.

Mobile Sports Wagering – The FY 2022 Budget will authorize mobile sports wagering, estimated to raise $500 million annually.

Prekindergarten – The new state budget appropriates $105 million to expand four-year-old full-day prekindergarten, with $90 million provided by formula and $15 million via a competitive grant process. Prekindergarten funding will also increase by $20 million annually for the next two years.

Revenue & Tax Actions –The FY 2022Budget includes several increases and surcharges on high-income taxpayers to generate an additional $2.75 billion in state revenue:

  • Increases the current top state personal income tax rate of 8.82 percent rate to 9.65 percent;
  • A new 10.30 percent income tax rate for taxpayers earning between $5 million and $25 million (expiring December 31, 2027);

A new 10.90 percent income tax rate for taxpayers earning over $25 million (expiring December 31, 2027).

NYSERDA Names President and CEO

The New York State Energy Research and Development Authority (NYSERDA) announced that Doreen Harris, their acting president and CEO, would be named as the permanent hire for the position she has maintained since June of 2020.

Harris most recently served as vice president of large-scale renewables for NYSERDA. In that role, she oversaw the state’s development of land-based renewable resources, including spearheading the new siting legislation for such projects, and the development of New York’s offshore wind initiative..

Commission on Judicial Nomination Release List of Nominees for Court of Appeals Vacancy

The Commission on Judicial Nomination released a list of seven nominees for the Court of Appeals vacancy created by the scheduled June retirement of Judge Leslie Stein. Under New York’s Constitution, the Commission is charged with evaluating, and then recommending to the Governor, candidates to fill vacancies on the State’s highest court.

The Commission’s seven nominees include:

  • Ellen Nachtigall Biben, Administrative Judge, Criminal Matters, First Judicial District, Judge of the Court of Claims and acting Supreme Court Justice;
  • Kathy Hirata Chin, Esq., attorney in private practice (Crowell & Moring);
  • Caitlin J. Halligan, Esq., attorney in private practice (Selendy & Gay PLLC);
  • Valerie Brathwaite Nelson, Associate Justice, Appellate Division, Second Department;
  • Erin M. Peradotto, Associate Justice, Appellate Division, Fourth Department;
  • Madeline Singas, Nassau County District Attorney; and,
  • Shirley Troutman, Associate Justice, Appellate Division, Fourth Department.

The Governor will be required to choose from this list of candidates for his nomination to this Court of Appeals Vacancy. The Senate must then confirm or reject the nomination. The Commission will have to submit more names for the vacancy left by the passing of Judge Feinman. Judge Fahey will reach mandatory retirement age in January of 2022, which will require the Commission to submit yet another list of candidates.

Reminders and Links

City & State NY’s Weekly Winners and Losers here.

Coming Up

*POSTPONED TBD* The Senate will hold a public hearing on East Side Access/East Side Tunnel project oversight (MTA/Amtrak) on April 7.

The Board of Regents will hold their next meeting on April 12 and 13.

The Senate will hold a public hearing to discuss and receive input from stakeholders on the Climate and Community Investment Act (CCIA) on April 13.

The Senate will hold a public hearing on diversifying agriculture and addressing food justice alongside continuing inequalities in our food systems on April 13.

The Public Service Commission will hold its next meeting on April 15.

The Senate will hold a public hearing to examine potentially unfair and deceptive practices occurring in New York State’s primary and secondary ticket marketplaces for live events in order to identify any legislative and policy reforms that would help ensure sales are fair, equitable, transparent, and accessible for consumers and other stakeholders on April 22.

JCOPE will hold its next meeting on April 27.