On Monday, the Assembly unveiled its
"Meeting The Challenge - Making The Grade"
education portion of its budget resolution that calls
for $3.4 billion in school aid increases over the next
two years. The Assembly's proposal, which would
establish a ground-breaking, two-year education
budgeting system, addresses the need for equity,
provides greater flexibility for school districts,
enhances efforts to recruit and retain quality teachers,
fulfills the promise of smaller class sizes and
universal pre-K and stabilizes local property taxes.
The Assembly resolution calls for increasing
spending by $1.42 billion above the $41.34 billion
General Fund budget proposed by Governor George
Pataki. It totals $2.29 billion above the
governor's $83.68 All Funds budget. Sixty percent
of the Assembly's budget resolution restores cuts
proposed by the governor. The budget resolution
also includes $519 million in tax cuts that provide
relief for working families and stimulate job
growth. And, it sets aside general reserves of
$2.17 billion.
"I think that this is a fair and balanced
budget. I am confident of our revenue expectations
and that this budget addresses the needs of the people
of New York State," said Assemblyman Herman Denny
Farrell, Jr., chair of the Ways and Means Committee.
"This budget resolution restores funding which
was cut in Governor Pataki's proposed budget to meet
our commitment to education on all levels, and it
ensures that our senior citizens are not being asked
to make impossible choices.
"In restoring funding which had been cut
by the governor's proposed budget, we are
ensuring that our senior citizens are not
forced to enter nursing homes prior to the
need for full-time residential care, and that
the services received when they do need
residential care are of the highest quality,"
continued Farrell (D-Manhattan). "I personally
know how difficult this decision is having had to
place my mother in a nursing home a number of years
ago. Every senior citizen should be able to make the
decision about nursing home care based on need, not
on the availability of qualified home care attendants."
Farrell noted that since 1995, the Assembly Majority forecasts
of state revenues have been more accurate than those of the
state Division of the Budget.
"Since the beginning of his administration,
the governor has underestimated revenues by more than
$10 billion," Farrell said. "In his 2000-01
budget, the governor underestimated receipts by $2.4
billion. In fact, in the last three months of this
fiscal year, more than $1 billion will be collected
from his updated forecast in January. Using modest
growth in line with consensus forecasts, the Assembly
Majority projects revenues of $2.1 billion above the
governor for this year and next year."
"This is a record of lost opportunities,"
Farrell continued. "We can no longer afford to
neglect the real needs of working families, the elderly
and our children. This year, these needs must be met."
Job Creation
The Assembly's job plan acknowledges that New
York's economy is actually a collection of diverse regional
economies. Consequently, the Assembly budget resolution
invests $470 million in high-technology development and
university - industry partnerships and eliminates the
state's cumbersome bureaucracy. The Assembly budget
resolution would:
- Restructure economic development programs;
- Build university - industry partnerships;
- Revitalize communities;
- Revive manufacturing;
- Foster a "new economy" workforce;
- Stimulate tourism; and
- Boost entrepreneurs and small business.
Health Care
The Assembly's budget resolution restores all
of the governor's cuts to Medicaid, providing
$327 million to nursing homes and home-care
services to assist the frail, elderly and the
disabled. The Assembly health-care budget also
would:
- Add $100 million in new state funding to address nursing home quality-of-care and staffing issues, to be matched with $100 million in federal funding;
- Allocate $50 million for hospitals to recruit and retain experienced health-care workers;
- Provide $5 million in state funding to address home care workforce needs that will draw a $5 million federal match;
- Reject the governor's plan to eliminate $34 million in funding to the successful EPIC prescription plan for seniors; and
- Direct the state Department of Health to hire additional nursing home inspectors and establish a hotline for nursing-home complaints.
Higher Education
The Assembly recognizes that a quality, affordable
college education is key to providing a brighter
future for our children and a skilled workforce
necessary to fill the technology-oriented jobs
created by the emerging "new economy." The Assembly
budget resolution increases higher education
funding by $107 million over SFY 2000-2001 - a $136
million increase over the executive.
The Assembly's approach invests in programs that keep college affordable for working families and helps the state's public universities attract more full-time faculty. Several of the following components are part of a multi-year commitment to increase faculty lines and opportunity programs and meet the state's statutory requirements for funding community colleges and increasing the level of support to 40 percent over the next five years. Significant aspects of the Assembly's higher education budget plan include:
- Funding for full-time faculty at public colleges and universities increased by $22 million;
- Enhancing base aid to community colleges by $34.3 million - or $175 per student;
- A $21 million increase above the governor's budget proposal to improve the Tuition Assistance Program (TAP);
- Doubling graduate TAP awards to $1,100;
- Eliminating decreases in TAP to college juniors and seniors;
- Doubling TAP income deduction for families with more than one student in college;
- Providing $4 million for supplemental TAP for students who need an additional semester to graduate;
- Allocating a $23 million increase above the governor's proposal for opportunity programs, such as HEOP, EOP, SEEK, STEP & CSTEP;
- Restoring the governor's $3 million cut to higher education child-care services and adding $2 million.
Libraries
In last year's budget, the Assembly championed
the first increases in public library funding
in three years. The Assembly's 2001-02 budget
resolution continues the Assembly Majority's
support of public libraries across the state
by increasing library funding $27.7 million to
improve facilities and update technology.
Other key funding to aid libraries includes:
- $10 million in additional funds for library services and technology investments to narrow the "digital divide;" including NOVEL, the New York Online Virtual Electronic Library;
- $10 million for library construction projects;
- $6 million for school library materials;
- $1 million for "Baby Steps," a library program to encourage parents to read to their small children; and
- $700,000 to improve library services for the disabled.
Tax Cuts
The Assembly budget resolution tax-cut plan would provide a $519 million benefit over five years to working families and businesses that create jobs. The proposal creates a new child tax credit, reduces the Gross Receipts Tax (GRT) on residential utility customers, eliminates the marriage penalty tax and expands the Empire Zone program to help businesses receive the assistance they need to grow and create new jobs. The Assembly tax-cut plan would provide:
- $175 million in child tax credits for families with children;
- $150 million in GRT savings for residential utility customers;
- $40 million in savings for married couples by raising the standard deduction to $15,000 from $14,600; and
- $100 million to expand the Assembly's Empire Zone (EZ) program by doubling the size of existing EZs in the state and adding 14 new zones.
Environmental Conservation
The Assembly budget resolution provides a record level increase in funding for the environmental protection fund, including $28 million for municipal parks and waterfront rehabilitation and more than $60 million for open space land acquisition. It also includes funding for asthma projects and measures to stimulate the cleanup and remediation of brownfield sites.
Energy
The governor and the Public Service Commission (PSC) have proposed an annual $150 million system benefits charge on the state's utility ratepayers. To the extent such a charge is assessed, the Assembly believes monies received should be subject to annual appropriation in the state budget to allow for public scrutiny and accountability over the use of the funds. Therefore, the Assembly creates the State Energy Solutions Account for the deposit of monies received from the governor's system benefits charge. These funds shall be used for programs and projects that will most effectively address the critical energy issues currently facing the state.
Children and Families
The Assembly budget resolution provides $184 million in TANF surplus funds to expand child-care services. The Assembly also proposes a plan to re-direct $631 million in child welfare services funding. This plan would replace the Child Welfare Block Grant that expires March 31.
Housing
The Assembly budget strengthens the state's commitment to affordable housing for low and moderate-income families and to revitalizing housing in New York State. It also increases operating aid to neighborhood preservation corporations by almost $6 million. In addition, the Assembly resolution directs the State of New York Mortgage Agency (SONYMA) to use $80 million of excess reserves in the SONYMA insurance fund to encourage residential, mixed-use in Empire Zones. It also provides a state sales tax exemption on construction materials for these projects.
The Assembly provides additional capital and local assistance to DHCR as a part of a comprehensive housing program to help rebuild and revitalize housing in the state and strengthens the state's commitment to affordable housing.
Mental Health
The Assembly budget resolution rejects the governor's plan to close or co-locate numerous state psychiatric facilities for adults and children. It also requires that a formal, detailed plan for the future use of all state operated mental health facilities be submitted to the legislature.
Office of Alcohol and Substance Abuse Services (OASAS)
The Assembly budget provides $20 million for residential and outpatient substance abuse services, $5 million for prevention and treatment services for youth and $25 million in capital funding for residential treatment bed development.
Transportation
The Assembly resolution restores the letting level for road and highway projects to $1.9 billion and provides funding for the Metropolitan Transportation Authority to pay debt service on bonds supporting expansion projects agreed to in last year's budget.
Local Aid
The Assembly budget resolution provides a four percent across-the-board increase in state revenue sharing.
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