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Governor Andrew M. Cuomo signing the 2012-12 state budget at Manhattanville in Purchase Thursday. Looking on, left to right areState Senators Jeff Klein, Andrea Stewart-Cousins (35th Senate District, White Plains State Senator) Ken Zebrausk, Assemblypersons Robert Castelli of the new 93rd Assembly District) and Sandy Galef. Photo, Courtesy, Robert Castelli Office.
WPCNR ALBANY ROUNDS. Special to WPCNR from Assemblyman Robert J. Castelli, NY 89th Assembly District. April 5, 2012:
Assemblyman Robert J. Castelli was joined Thursday by Governor Andrew M. Cuomo who traveled to the 89th Assembly District to highlight the 2012-2013 New York State budget that was passed last week by the Legislature.
“The budget passed last week by the Legislature contains reforms and provisions to right size New York State government and create jobs in the Hudson Valley and across the state,” Castelli said. “Over the past 15 months Governor Cuomo has worked together with both parties to get our state moving in the right direction, and I applaud him for his leadership.”
The Budgetcloses a multi-billion dollar deficit with no new taxes, fees or gimmicks, limits spending growth to two percent or below for the second year in a row, and launches the New York Works Task Force to invest billions of dollars to rebuild the state’s roads, bridges, parks, and other infrastructure and create tens of thousands of jobs.
The New York Works Task Force is the centerpiece of Governor Cuomo’s jobs program and will reinvent state economic development with an innovative new strategy that will put New Yorkers back to work rebuilding the state’s infrastructure, he says. The Task Force will create tens of thousands of jobs by coordinating comprehensive capital plans, overseeing all investment in infrastructure projects, and accelerating hundreds of critical projects across the state.
The Budget includes key economic development and transportation initiatives, important reforms to improve government efficiency, and measures to strengthen communities across the state.
“This budget continues to put New York State back on track by holding the line on spending, while launching the New York Works program to create jobs and rebuild our state’s infrastructure. Over the past fifteen months, by working together in a bipartisan manner, we have transformed our government to protect taxpayer dollars and bring competence, integrity, and fiscal discipline back to Albany,” Governor Cuomo said. “I commend the individual members of the Assembly and Senate, as well as Majority Leader Skelos and Speaker Silver, for their leadership and hard work.”
Senator Andrea Stewart-Cousins said, “Governor Cuomo and the Legislature passed a balanced and straightforward budget which includes increases in education funding to support our public schools, and helps local governments hold the line on taxes. I commend the Governor for his work to get the state’s economy running again and for working with the Legislature to make this state better for all our residents.”
Governor Cuomo is a resident of the 89th Assembly District, which Castelli represents. The key provisions of the Budget include:
State Spending Growth Held to 2%
For the second year in a row, the Budget maintains two percent or less year to year growth in state spending, consistent with the tax cap on local governments. State Funds will total approximately $88.8 billion in 2012-13.
The Budget achieves flat state agency spending through the ongoing redesign of agency operations to reduce duplication, redundancy and waste. Since Governor Cuomo and Assemblyman Castelli took office, projected future deficits have been reduced by a cumulative $72 billion, according to the Division of the Budget.
Increase in School Aid
The Budget includes the 4% increase in education spending that was promised last year. Total school aid spending amounts to approximately $20.4 billion dollars. Included in that figure was the additional $250 million dollars, divided into $125 million for competitive grants, and $125 million for foundation aid.
This represents an increase of $805 million in total education spending, with most of the allocated increase targeted at high needs school districts.
New York Works Rebuild Roads and Bridges
The Budget funds the New York Works Program with $232 million in state capital funds and $917 million in new Federal funds for a total of $1.2 billion in new spending to accelerate repair, replacement and improvement of deficient roads and bridges.
This funding is over and above the $1.6 billion already allocated this year to the core transportation capital program for roads and bridges. This program is in addition to the advancement of the Tappan Zee Bridge replacement project that will inject billions more into the regional and state economy.
Thirty-two percent of the state’s bridges are rated deficient and forty percent of the state’s pavement surface is rated deficient. The additional $1.2 billion in accelerated projects selected by the Department of Transportation will include $212 million to address bridge deck and structural replacement or rehabilitation needs on approximately 115 bridges, $250 million for more than 2,000 miles of low cost pavement preservation and pavement treatments, and $700 million for transportation projects of regional or statewide significance throughout the state that had been delayed due to resource constraints.
Importantly, the New York Works Fund was already exempted from the Wicks Law during the historic tax deal in December.
Energy Super Highway Initiative
The Budget includes $16.2 million to New York State Energy Research and Development Authority for research and development programs and the development of the 2013 State Energy Plan which is part of the Governor’s Energy Super Highway Initiative. The initiative will develop an action plan for both short-term and long-term actions that will facilitate billions of dollars in private investment in Energy Super Highway projects. The Task Force recommendations will be a core component of the 2013 State Energy Plan.
Second Round of Regional Economic Development Council Awards
Last year, Governor Cuomo and the legislature created 10 Regional Councils that developed long term strategic plans for economic growth for their regions. These Councils were part of a process that awarded $785 million for job creation and community development. The Budget authorizes a second round of funding for the Regional Councils, including $220 million to implement regional strategic plans ($150 million in new capital funding and $70 million in tax credits from the Excelsior Jobs Program).
In addition, resources from a wide range of existing agency programs will be available to businesses and sponsors for economic development purposes that are consistent with Regional Council plans through the innovative Consolidated Funding Application. This process allows one-stop access for project sponsors to apply and compete for over $500 million in additional funding available through existing agency programs.
Funding the MTA Capital Plan to Improve Transit in Metropolitan New York
The Budget supports full funding of the
MTA with $770 million of direct funding from the state. The five-year MTA capital plan contains $22.2 billion for projects critical to transit in New York City, Long Island and the Hudson Valley. This plan will produce thousands of jobs. The first two years of the MTA capital plan were funded at $9.1 billion. The Budget will help allow the MTA to obtain the full $13.1 billion needed to achieve the five year capital plan and complete some of the largest construction projects in the history of New York.
Repairing New York’s Dams and Flood Control Infrastructure
The state’s Department of Environmental Conservation maintains 91 flood control projects which 91 have been rated “minimally acceptable” or “unacceptable” by the Army Corps of Engineers. Additionally, the Department owns 577 dams statewide. Of the DEC owned dams, DEC engineers classify at least 24 dams as “high” and “intermediate” hazard structures, where failure poses serious threat to human life or significant property damage. The New York Works Funds will designate $102 million, leveraging more than $100 million in matching funds, to repair aged and otherwise failing structures, including levees, flood walls, dams, pumps and channels.
Rebuilding New York’s State Parks
The New York Works Fund will provide $89 million, as part of a total funding package of $143 million, to rehabilitate state parks. This represents the single largest infusion in history of capital dollars for New York’s parks. Currently, 83% of state parks are deteriorating. Projects will be funded in every region of the state, making improvements in 48 state parks and historic sites that serve 37 million visitors annually. This investment in New York‘s parks system will enhance the visitor experience and enable our state parks to reemerge after years of decline.
State Medicaid Spending
The Budget continues the two year appropriation structure and limits Department of Health Spending to four percent, commensurate with the Medicaid spending cap. Total Medicaid spending in the enacted budget is $54 billion. This includes recommendations from the Medicaid Redesign Team, to include investment in affordable housing for high cost Medicaid recipient populations, enhancements in essential benefits and relief to essential community providers.
State Relief for Local Medicaid Expenses
The Budget provides significant mandate relief in Medicaid spending for all counties and New York City, modeled after a piece of bipartisan legislation, Assembly Bill A8644, first introduced by Assemblywoman Amy Paulin and Assemblyman Castelli. The Budget includes a state takeover of growth in the local share of Medicaid costs, and implements a phased takeover of local government Medicaid administration expenses.
In 2013-14, local government Medicaid growth will be reduced to two percent, and then reduced by an additional one percent annually over the subsequent two years, so that in 2015-16, counties and New York City will no longer have to contribute toward the growth of Medicaid expenses. The takeover of the three percent Medicaid growth factor will save counties and New York City $1.2 billion over five state fiscal years.
The phased takeover of local government administrative costs of Medicaid will accomplish statewide economies of scale, lead to associated savings and help New York achieve reforms proposed at the State and Federal levels.
Consolidation
In addition to creating a New York State Gaming Commission through the merger of the Division of Lottery and the Racing and Wagering Board, the Budget includes transferring the management and operations of the Belleayre Ski Center from the Department of Environmental Conservation (DEC) to the Olympic Regional Development Authority. The Budget further includes the elimination of 25 boards and commissions that are no longer active or whose missions have been completed or become redundant.
Higher Education
The Budget includes an additional $31.3 million in support for local community colleges, raising base aid from $2,122 to $2,272 per full-time equivalent student. Community colleges are important economic drivers that educate students, retrain workers, and partner with local businesses. This additional support will allow community colleges across the state to expand class offerings, keep tuition affordable, and hire additional faculty.
As a result of the passage of the NY SUNY 2020 program last year, tuition at State run colleges will be held to a maximum increase of $300 per year, over the next five years. For the first time in history, those tuition cost increases will be retained by SUNY and CUNY, rather than allocated to the general fund, as they have been in the past. This results in $113.2 million in additional spending authority for SUNY and $66.6 million for CUNY.
Consistent with the provisions in the NY SUNY 2020, the Budget maintains General Fund operating support for SUNY and CUNY colleges at prior-year levels. The Budget includes $30 million of capital funding for a new round of NY SUNY 2020 Challenge Grants. When combined with an equal share from SUNY, the University’s 60 campuses, excluding the university centers, will compete for three $20 million challenge grants.
Local Government Aid
The budget maintained funding and made no cuts to both Aid and Incentives to Municipalities (AIM) and the Consolidated Local Street and Highway Improvement (CHIPS) funding for local governments.
Foreclosure Relief Unit
The Budget provides $9 million for the continuation of mortgage foreclosure counseling services through Homes and Community Renewal, with additional services financed with proceeds of the National Mortgage Servicing Settlement Agreement.
In addition, the Department of Financial Services will establish a new Foreclosure Relief Unit to provide counseling and mediation services to help New Yorkers stay in their homes.
Eliminating Wasteful Programs
This year’s budget also saw the elimination of New York‘s Combined Ballistic Identification System (CoBIS), the state’s decade-old ballistic identification system.
The change moves the state back to the use of a federal databank, which requires firearms dealers who receive a new handgun from a manufacturer to submit a sample cartridge. According to the State Police, there had been only two “hits” out of more than 356,000 casings in the redundant state system last year, while investigators had 366 hits in the federal system. It should be noted that this costly process has not resulted in the solution of a single crime. Eliminating the state program saves taxpayers $1.2 million dollars annually.
Office of New Americans
The Budget establishes an Office of New Americans to assist legal permanent residents to better participate in the state’s economy and civic life. The Office of New Americans will focus on expanding access to English language education services, promoting U.S. citizenship and civic involvement, and expanding business opportunities for new American business owners.
