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Senator Bruno addressed the media in the Capitol Building on Wednesday. |
Thursday, August 12, 2004
The Senate on Wednesday concluded passage of a 2004-05 state budget the provides for significant increases in aid to public education, restores and increases important funding for higher education and health care and makes major investments in economic development and capital projects at hospitals and public and private colleges and universities and provides new local assistance that can be used to reduce property taxes.
"While this process has gone on far longer than it should have, the final budget is very positive for the people of New York State," Senate Majority Leader Joseph L. Bruno said. "As people learn about the impact the budget will have on their lives through the addtional support for their schools and their communities and in other areas, they will be pleased with the end result."
"I'm confident that the budget we are passing meets the most pressing needs of New Yorkers by providing critical increases in aid to schools and important mandate relief to local government through the takeover of Family Health Plus, while preserving funding for vital programs and services," said Senator Owen H. Johnson (4th Senate District Babylon) Chairman of the Senate Finance Committee.
The budget totals $101.3 billion all-funds with $43 billion in general fund spending that represents an increase of 2.3% which is less than the rate of inflation (2.5%). The Legislature added $1.2 billion to the Executive Budget to pay for $850 million in new spending and to replace $350 million in rejected tax, fee and revenue proposals by the Governor, which were replaced with other revenue measures.
Other highlights of the budget include the following:
EDUCATION AND HIGHER EDUCATION
> $751 million increase (5.2%) in school aid bringing total to $15.2 billion. Since 1995, state school aid has increased by 54%, double the rate of inflation.
> Restoration of the Tuition Assistance Program (TAP) ($201.3 million) and rejection of a proposal to defer a portion of a student's TAP award until graduation; budget restores BUNDY Aid for private colleges and universities ($1.5 million), HEOP ($770,000); and restores $115 base aid at CUNY and SUNY community colleges.
> Budget includes a new $350 million investment in higher education infrastructure; $175 million for private colleges and universities; $175 million for public colleges. Matching provisions will leverage hundreds of millions more.
> Budget increases basic higher education capital assistance by more than $600 million to total $2.2 billion for SUNY and $1.4 billion for CUNY.
HEALTH CARE
> $250 million for capital investments in hospitals.
> Budget includes Senate proposal for state takeover of Family Health Plus (FHP) costs to save counties $404 million over two years and reduce local property taxes, as well as new FHP cost containment measures.
> Other reform measures include authorizing localities to implement programs to buy discount pharmaceuticals; doubling the long term care tax credit (to 20%) to encourage purchase of long term care insurance; and a rejection of a proposed tax increases on hospitals and nursing homes.
LOCAL GOVERNMENTS
> 100% state takeover of Family Health Plus saves counties $404 million in two years.
> Restoration of $35 million in local CHIPS highway aid;
> $700,000 expansion of supplemental municipal aid program to include 7 cities; state aid spin up for 7 cities; $25 Million each over three years in additional aid to Buffalo, Syracuse & Rochester.
NEW YORK CITY
> Budget provides a total package of $600 million for NYC, including:
- $288 million increase in school aid
- $312 million in tax and revenue measures either proposed by the Governor or requested by the City and relief from the state takeover of FHP.
ECONOMIC DEVELOPMENT
> $250 million capital program to economic development investments to build on the success of Gen*NY*sis and Centers for Excellence programs.
> One year extension of the Empire Zone Program.
> $100 million for multi-modal transportation facilities funding.
TAX CUTS
> The budget includes $456.7 million in tax relief through scheduled reductions which include the following:
- College Tuition Tax Credit/Deduction program - final phase-in will enable taxpayers to save $54 million through either a tax credit or deduction of tuition expenses;
- Gross Receipts Tax - Various GRT rate reductions will save residential, business and manufacturing energy consumers $110 million this year;
- Personal Income Tax - The first scheduled phase down (7.5% to 7.375%) of the increase in the state personal income tax will save taxpayers $267 million.
> The budget includes more than $1.1 billion in additional aid to schools and local governments (Family Health Plus takeover) that can be used to reduce property taxes
> The budget includes more than $29 million in new tax cuts including a $25 million tax cut intended to expand and revitalize the film making industry in New York; an alternative fuel credit and a low income housing tax credit.
LAW ENFORCEMENT
> $476.8 million for Homeland Security programs, including funding support for the 2004 anti-terrorism law;
> $12 million to restore funding for correctional facilities slated for closings and cutbacks;
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