The Senate and Assembly released their own budget proposals this week, taking positions on the Governor’s proposal and highlighting their own priorities. Over the course of the next two weeks, the three sides will negotiate toward a final budget deal, with an April 1^st deadline as the target. Both houses are proposing to spend significantly more than the Governor proposed. Highlights of each proposal included below:

Assembly One House

The Assembly proposes an All Funds budget of $226.4 billion for State Fiscal Year (SFY) 2022-23, which is $7.9 billion or 3.6 percent over the Executive proposal. This increase is largely attributed to additional spending on healthcare ($3.2 billion); housing ($2.3 billion); child care ($2 billion); higher education programs ($911 million); and residential utility arrears relief ($500 million).

Additional Spending

Child Care – The Assembly proposal provides for an additional $3 billion in child care spending, utilizing both state and federal funds. The Assembly expands on the Governor’s proposal to increase eligibility for subsidized child care to individuals up to 400 percent above Federal Poverty Level (FPL), with a price tag of $2 billion.

Additionally, the Assembly proposes to provide the following increases in child care funding:

• $425 million to increase stabilization grants, for a total of $500 million;
• $370 million to increase reimbursement for subsidized child care from the 69th to the 90th percentile;
• $200 million in capital funding to support the expansion of access to child care, with an emphasis on child care deserts;
• $75 million to maintain the cap on family copays at 10 percent of income above FPL for subsidized child care;
• $55.2 million for the Foster Care Block grant;
• $30 million to restore the State’s child welfare reimbursement from 62 percent to 65 percent; and
• $26.9 million for adoption subsidies.

Education – Under the Assembly proposal, state funding for school aid would total $30.9 billion, an increase of $2.1 billion or seven percent over last year, and $120 million over the Executive proposal. The Assembly includes an additional $150 million for Universal Pre-K, $100 million for community schools, and $40 million for mental health services in schools.

Energy and Environment – The Assembly proposes to include $500 million in assistance for residential utility arrears. The Environmental Bond Act is increased to $5 billion and provides $20 million for a sales tax exemption for the first $35,000 for an electric vehicle (EV) purchase.

Health – The Assembly provides over $5.9 billion for health care wages and for hospitals including:

• $2.5 billion for Fair Pay for Home Care workers;
• $1.4 billion for the human service COLA to 11 percent;
• $750 million for safety-net healthcare providers;
• $400 million for all other non-homecare health care workers;
• $345 million for essential plan coverage for undocumented individuals;
• $250 million for major public hospitals;
• $100 million to the distressed hospital provider pool;
• $100 million for Nursing Home Retention and Recruitment supplement;
• $45 million for a rate increase to Early Intervention programs of 11 percent; and
• $42 million to preserve “prescriber prevails” in the Medicaid pharmacy benefit.

Higher Education – The Assembly proposes an additional $911 million in operating assistance for higher education, with $200 million in operating support for SUNY and CUNY. They allocate $95 million for an increase in the maximum TAP award, a $75 million subsidy to SUNY hospitals, and $68 million in debt relief for SUNY hospitals.

Housing – The Assembly proposes to include an additional $2.4 billion for various housing programs, including an additional $1.25 billion for the much maligned Emergency Rental Assistance Program (ERAP), which provides assistance for renters behind on their rent and utilities. $400 million each for landlord and homeowner assistance funds. The Assembly also includes a new $250 million program, as does the Senate, called the Housing Access Voucher Program designed to mirror the federal section 8 housing program that will provide a subsidy to those facing homelessness with tenants only required to cover a portion of rent, up to 30% of their household income.

Article VII Bills

The Assembly intentionally omitted many of the Governor’s proposals with the Speaker arguing that the Assembly would prefer to deal only with a fiscal document and leave policy out of the proposal. The Governor has outsized influence over the budget process and maximum leverage during budget negotiations. Many of the proposals omitted by the Assembly have broad support in the chamber, however, and are likely to be a large focus of the latter half of this legislative session.

Notable omissions include:

• PPGG Part P, allowing the sale of to-go alcoholic beverages;
• PPGG Part Z, the Independent Ethics Reform Act of 2022;
• PPGG Part AA, the Clean Slate Act;
• ELFA Part A, Mayoral control of NYC schools
• ELFA Part C, allowing provisional certification for school professionals;
• ELFA Part I, end transcript withholding for students with unpaid bills;
• HMH Part G, transfer oversight of medical professions from SED to DOH;
• HMH Part H, Rejects Global Cap Adjustment and instead repeals it;
• HMH Part P, Medicaid managed care procurement;
• TED Part RR, Extended Producer Responsibility Act;
• TED Part SS, Reduce Toxics in Packaging;
• TED Part CCC, residential gas service, 100 foot rule;
• TED Part EEE, Advanced building codes (fossil fuel free buildings by 2027); and
• REV Part CC, Authorizes additional casino licenses.

Senate One House

Additional Spending

Child Care – The Senate proposal provides an additional $2.2 billion for child care in the FY 2022-23, rising to $4.1 billion by FY 2024-25. The Senate proposes to increase the income eligibility limit for child care subsidies from 200 percent of the Federal Poverty Level (FPL) to 300 percent over the next three years. The Senate advances an alternative proposal to expand child care vouchers to the 100th percentile of the actual cost of care for households earning up to 500 percent of the FPL, to be phased in over the next three years for children up to five years of age or until the end of their first year of eligibility for kindergarten. Households with incomes between 300 percent and 500 percent of the FPL would not have co-payments of more than 10 percent of their household income over the FPL.

Education – The Senate proposes nearly a billion dollars in additional spending on education programs, including $250 million for Universal Pre-K, $195 million to reflect updated school aid formula data, $100 million for community schools, and $50 million for mental health services in schools.

Energy and Environment – The Senate proposes to include an additional $400 million for the reduction or elimination of residential utility arrears. The Senate also amends the environmental bond act to increase the bonding authority to $6 billion by adding a $2 billion suballocation for climate change mitigation efforts.

Health – The Senate proposes numerous large dollar additions to health care spending including:

• $1 billion for financially distressed and safety net hospitals;
• $625 million for Fair Pay for Home Care Workers;
• $422 million for the reduction of Medicaid PBM fees;
• $345 million to expand Essential Plan coverage to undocumented individuals;
• $250 million for a Distressed Hospital Fund Sales Tax Intercept.

Higher Education – The Senate proposes to provide $600 million for the SUNY “New Deal” program. The Senate increases year-to-year support for SUNY by $600 million, including $153 million for new full-time faculty, $48.8 million to fully close the TAP Gap, restoring pre-pandemic community college funding, increasing adjunct pay, and eliminating student fees. Similarly, the Senate provides $500 million for the CUNY “New Deal.” The Senate increases year-to-year support for CUNY by $500 million, including $153 million for new full-time faculty, $59.6 million to fully close the TAP Gap, restoring pre-pandemic community college funding, increasing adjunct pay, and eliminating student fees.

Housing – The Senate allocates $1.6 billion in federals funds for the Emergency Rental Assistance Program (ERAP), and provides $1 billion backstop in state funds in the absence of federal funding. The Senate also adds $500 million for NYCHA, $500 million for the Homeowner Assistance Fund (HAF), and like the Assembly, proposes to create the Housing Access Voucher Program and provides $250 million for such purpose.

Article VII Bills

The Senate appears to be more willing to negotiate policy within the context of the budget, making modifications to the Governor’s proposal, often substituting language for existing Senate bills, where the Assembly largely rejected non budget policy items.

Governor Extends COVID State of Emergency

The Governor extended the COVID-related State of Emergency until April 15^th, despite the statewide 7-Day positivity average falling under 2% over the past 12 days. The Governor said keeping the state of emergency in place provides the state with the ability to monitor hospitalization rates and the flexibility to address hospital capacity issues, if the need arises. The Assembly and Senate Rules surrounding voting via zoom or otherwise from outside the chamber are tied to the COVID state of emergency. The extension will allow those rules to remain in place throughout the budget process.

Governor Signs Executive Order Prohibiting the State from Contracting with Entities Conducting Business in Russia

The Governor signed a new Executive Order (EO) prohibiting the state from contracting with any institution or company, wherever located, which conducts any commercial activity in Russia in the form of contracting, sales, purchasing, investment, or any business partnership. This EO expands on a previous EO that prohibited the state from contracting with businesses headquartered in Russia.

Governor Hochul said:

Governor Signs Package of Sexual Harassment Bills

The Governor signed a package of legislation to address workplace harassment and discrimination, as follows:

(S.812B/A.2035B) Establishes a toll free confidential hotline for complaints of workplace sexual harassment

This Bill will require the Division of Human Rights to establish a toll free confidential hotline for complaints of workplace sexual harassment. The function of the hotline will be to connect complainants with experienced pro-bono attorneys who will help make them aware of their legal rights and advise them on the specifics of their individualized cases.

(S.3395B/A.2483B) Clarifies that the State and all public employers as subject to the provisions of the Human Rights Law.

This Bill clarifies that the State is considered an employer of anyone serving in the executive, judiciary, and legislative branches – including the staff of elected officials or judges – and subject to the provisions of the Human Rights Law. This legislation will clarify that the state will not be able to avoid responsibility for harassment of public employees and ensure that New York’s anti-harassment regulations protect both public and private employees.

(S.5870/A.7101) Prohibits the release of personnel files as a retaliatory action against employees

This Bill establishes that the release of personnel records to discredit victims of workplace discrimination counts as a retaliatory action under the Human Rights Law. The Human Rights Law expressly prohibits all forms of retaliation against complainants. This legislation clarifies that the release of a personnel record counts as retaliation except where it is necessary to comply with an investigation. This bill also provides additional recourse to victims of unlawful retaliation under this new provision by allowing them to file a complaint with the Attorney General who may commence a proceeding in state Supreme Court.