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$106 Billion Budget Plan Increases School Aid; Restores Funds for Education & Health Care; Invests in Job Creation
Friday, March 11, 2005
Senate Majority Leader Joseph L. Bruno announced that the Senate has begun introducing budget bills that will comprise its proposals to amend the 2005-06 Executive Budget. The Senate budget includes significant increases in aid to public education, restores important funding for higher education and health care, includes proposals for Medicaid cost containment and relief for local property taxpayers, and makes major investments in transportation, economic development and capital projects.
The Senate will act on the budget bills beginning Monday and expects to complete passage no later than Tuesday so conference committees could begin as early as Tuesday.
"April 1st is 20 days away and there is still a lot of hard work to be done, but I believe everyone involved in the process has a will to get a budget done on time," Senator Bruno said. "The finish line is nearing and we are ready to sprint the rest of the way to get it done."
The Senate budget increases spending above the Governor�s proposed budget by about $1.1 billion, which is offset by spending cuts and other adjustments to the Governor�s budget that will result in a net spending increase of $800 million. The resulting budget would increase overall State spending to less than four percent on an annual basis.
The Senate budget rejects more than $465 million in tax and fee proposals in the Executive budget, including the hospital and nursing home assessment, motor vehicle fees and other proposed increases.
To pay for the spending the Senate budget uses increased tax receipts and surplus revenues, spending reestimates, fund balance transfers, spending reductions and rejections of new spending proposals.
"The budget we are introducing is sound and balanced and reflects input from weeks of public hearings and recommendations by members of the Senate Majority," Senator Bruno said. "It addresses our priorities for funding education, higher education, health care, job creation, economic development and other areas important to every New Yorker. After we act on the budget next week we will be ready to go to conference committees, resolve the differences between our budget and the Assembly�s plan, with input from the Executive, and get a budget done on time."
"From day one, the Senate has worked in earnest to get a state budget done on time by proposing and acting on budget reform, passing a contingency budget plan, reaching agreement on revenues and adhering to the schedule that we set out for ourselves," said Senator Owen H. Johnson (4th Senate District, Babylon), Chairman of the Finance Committee. "In keeping with this schedule, today we introduce our budget plan that we will pass next week which underscores what our priorities are as this process continues. Our plan would ensure that New Yorker�s most critical needs in the areas of health care and education are met, while encouraging further job growth and promoting fiscal stability. Everything is in place to get a state budget done on time this year and I believe that this is the year that we can do it."
Highlights of the Senate budget bills include the following:
EDUCATION
The Senate budget will increase school aid by about $450 million for the next school year. In addition, the Senate budget includes an additional $325 million that the Governor proposed for Sound Basic Education grants, but sets the funds aside in a special reserve fund for education.
HEALTH CARE
The Senate budget restores $650 million for hospitals, nursing homes and other providers. The budget includes a cap on the local share of Medicaid expenses that, when combined with the State takeover of the Family Health Plus program, would save taxpayers in the State and City of New York over $3 billion when fully implemented.
In addition, the budget includes almost $1.3 billion in cost containment on Medicaid programs, including reforms proposed by the Governor and recommendations made by the Senate Medicaid Reform Task Force. Senator Bruno said he is inviting the Assembly to join with the Senate�s bipartisan task force to pursue a two-house effort to enact other Medicaid savings and reforms.
The Senate budget also rejects a proposed $234 million tax increase on hospitals, nursing homes and other health care providers.
HIGHER EDUCATION
The Senate�s budget includes $250 million in higher education restorations. The budget rejects the Executive�s proposal to cut the TAP program and a proposed tuition increase in favor of a new tuition indexing system that would index tuition increases for incoming freshmen and freeze tuition rates for the remainder of their four years.
The Senate�s budget includes $80 million in restorations to SUNY included additional funding for base aid, operating aid and Educational Opportunity Program. The $37 million in CUNY restorations includes additional funding for base aid, operating aid, SEEK and College Discovery.
Additionally, the Senate budget includes the Governor�s $250 million capital program for public and private colleges. It sets aside $150 million for private colleges that would require a matching investment that would be distributed by formula and a $100 million competitive fund for public and private colleges that would also require a match.
ECONOMIC DEVELOPMENT & TAX CUTS
The Senate budget includes almost $2.1 billion in tax reductions over the next four years to create jobs and strengthen the economy. The Senate tax cut plan would save $264.6 million in 2005-06, increasing to $2.07 billion in four years.
The plan includes tax credits for biotechnology from the Senate�s Excell-NY program to provide incentives for New York State companies operating on the cutting edge of commercial applications for high technology and life sciences products. The credits will aid high technology firms in incubators looking to expand in New York, and companies that are looking to relocate or further expand in New York State.
The Senate budget also includes a small business health insurance tax credit to help reduce the number of uninsured New Yorkers; a billion dollar direct school property tax relief rebate program; expansion of the Empire Zone program to ensure a zone in each county and extending the program to 2015; and adopting a single sales factor to boost manufacturing jobs and investment in emerging technologies. This tax policy change would make New York more competitive and encourage employment and capital investment in the state.
The Senate budget also includes the Excell-NY program to increase employment by capitalizing on the strengths of various regions of the State. The Excell-NY jobs program would encourage regional economic developers, academic institutions, private-sector employers and all other relevant regional entities to join together to form a cohesive network that offers businesses expertise in product commercialization, technology transfer and other services. The Senate budget includes $87.5 million in all funds appropriations for Excell-NY in 2005-06.
In addition, the Senate tax cut and economic development proposal would allow for the direct shipment of wine into New York State from out-of-state wineries and allows New York wineries to ship to states with reciprocity agreements. This would boost the State�s wine industry and increase State sales tax revenues by $2 million in 2005-06 and $3 million annually.
TRANSPORTATION
The Senate budget includes a proposal for a multi-billion dollar billion transportation bond act that would fund road, bridge and mass transit capital projects throughout the State. It also includes $1.3 billion for highway project letting and $350 million for multi-modal transportation capital projects over the next five years.
CORRECTIONS
The Senate budget restores $15.5 million for correctional facilities slated for closings and cutbacks, including Camp Pharsalia, Mt. McGregor, Groveland Annex and Special Housing Units in Greene and Watertown and rejects a proposed reduction of 47 parole positions.
The budget also includes restorations of approximately $12 million for mental health, $16.4 million for human services, including an increase in the Supplemental Social Security Income benefit; $20.8 million for programs in housing, agriculture, and the environment.
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