Assemblywoman Ellen Jaffee Announces Passage of Early State Budget That Helps Hardworking New Yorkers

Budget increases minimum wage and education funding, creates jobs and cuts taxes for middle-class families and small businesses

March 29, 2013

Albany, NY – Assemblywoman Ellen Jaffee (D-Rockland) announced the passage of the 2013-14 state budget, which closes a $1.4 billion budget gap and increases the state’s minimum wage, bolsters education funding, invests in critical job creation programs and cuts taxes for middle-class families and small businesses. The spending plan totals $141.3 billion and includes federal funds for Superstorm Sandy cleanup as well as the adoption of the Affordable Care Act. Without the additional federal funding, the budget totals $135.1 billion, an increase of $1 billion, which is below 1 percent spending growth.

“The budget addresses fundamental issues facing our families, including the Assembly Majority’s long term commitment to increasing the state’s minimum wage and providing our schools the necessary funding for our children to receive a quality education,” said Assemblywoman Jaffee. “By stimulating job creation and bringing tax relief to middle-class families and small businesses, we are ushering in a stronger, more successful economic recovery throughout New York.”

Investing in our children’s educational future

The 2013-14 state budget increases school aid by $436 million over the executive’s budget proposal, or a $936.6 million increase over last year. The spending plan also increases community college base aid by $150 per-FTE student for the second year in a row.

“A community is only as strong as its schools,” said Jaffee. “And I’m pleased by our best efforts to increase funding. By increasing school aid we will be able to provide our children and young adults with the quality education they deserve, hold property taxes in check and keep the dream of a college degree alive for more working families. As we move forward I will continue to focus on funding our schools here in Rockland and ensuring a quality education for all public school students.”

The budget provides $20.8 billion in total Formula Base Aids for the 2013-14 school year, a $936.6 million increase over the 2012-13 school year.

The budget also includes $25 million for full-day and half-day pre-kindergarten grants. This new investment will allow for more full-day pre-K programs across the state and additional half-day pre-K slots.

“Giving our children an earlier start to education better prepares them for the future,” Jaffee said. “The Assembly Majority has been a major supporter of pre-K funding because studies show it helps children get ahead.”

Increasing the state’s minimum wage

The 2013-14 state budget increases the state’s minimum wage to $9.00 per hour by 2016. The wage will gradually increase over the next three years from $7.25 to $8.00 per hour on Dec. 31, 2013; to $8.75 on Dec. 31, 2014; and then to $9.00 per hour on Dec. 31, 2015.

“New Yorkers overwhelmingly support raising the minimum wage because it is the right thing to do morally, and it will help jumpstart consumer spending and spur the economy,” Jaffee said. “I have been a co-sponsor of this legislation and the Assembly Majority has led the fight to raise the wage. While I am pleased that soon, the thousands of hardworking families who depend on minimum wage will have a little more money in their pockets, I am nevertheless disappointed that it was not immediately increased to $9.00 per hour and that it was not indexed to the cost of living.”

The Assembly Majority has led a strong fight to increase the minimum wage, voting last year to increase it to $8.50 per hour and voting twice again this year to raise it to $9.00 per hour. The issue has become a hot-button topic nationally, and with over 80 percent of New Yorkers showing their support for an increased minimum wage, the Assembly delivered the results that hardworking families expect and deserve, Jaffee noted.

The increase to the minimum wage will directly benefit 925,000 New Yorkers currently earning below $9.00 an hour, which is over 10 percent of the state’s employed population.

Keeping NY affordable for millions of hardworking families

To continue providing a fairer tax system in New York, the 2013-14 state budget extends the current tax rate first implemented in 2012, locking in the lowest tax rate for middle-class families in 60 years. Approximately 4.4 million taxpayers, more than 99 percent of those filing statewide, benefited from $690 million in tax relief stemming from the tax restructuring.

“This multi-year extension is critical for hardworking families, and we did move forward with a progressive tax, which really helps,” Jaffee said.

The budget extends this middle-class tax cut for three additional years and pays for it by requiring those making over $2 million per year – less than 1 percent of all New York residents – pay their fair share.

“By implementing a more progressive tax structure, we can continue to keep New York affordable for millions of families statewide,” Jaffee said. “Asking the wealthiest among us to pay their fair share goes a long way to ensuring low- and middle-income New Yorkers a more secure future for years to come. Quite simply, it’s the right thing to do.”

Tax credits signal NY means business

In a continued effort to make New York a friendlier place to do business and create jobs, the budget provides tax relief measures to the business community that will:

• phase out the 18-A utility assessment surcharge; by fiscal year 2017-18, the savings for utility customers will reach $500 million; and
• boost employment among veterans, many of whom are suffering from joblessness. A newly established veterans’ tax credit would be offered to businesses that hire veterans. For taxable years 2015 and 2016, this credit would be worth 10 percent of the wages paid to a qualified veteran during the first full year of employment or 15 percent of the wages if the veteran is disabled.

“We have an obligation to help take care of the veterans who honorably served our country,” Veterans are among the groups hardest hit by unemployment. Theses tax credits will help them get back to work,” said Jaffee. “This state budget puts money where it’s needed, giving small businesses already operating in New York, and here in Rockland more breathing room, and giving new businesses a reason to call New York home.”

Boosting Minority- and Women-Owned Small Businesses

The budget includes a $365,000 increase to the Minority- and Women-owned Business Development and Lending Program, for a total appropriation of $1 million, and opens certain state programs to more small businesses.

“Over the past few years, New York State has secured its spot as a great place to do business, and the 2013-14 budget takes another step in the right direction,” Jaffee said. “Our minority- and women-owned small businesses (MWBEs) are vital assets to Rockland’s economy. The Assembly Majority is committed to keeping them up and running and encouraging more businesses to open their doors right here in New York.”

Specifically, the budget authorizes MWBEs and other small businesses to access “bridge loans” for procurement purposes from the Small Business Revolving Loan Fund. Bridge loans are short-term loans that allow businesses more time to work out a long-term financing plan.

Transportation funding for infrastructure projects creates jobs

To promote job growth while rebuilding our crumbling infrastructure, the state budget includes $438.1 million for the Consolidated Local Street and Highway Improvement Program (CHIPs). This 21 percent increase is the first in five years and $75 million more than last year. It will be a welcome relief to local taxpayers and municipalities as well, noted Jaffee. The budget also authorizes $39.7 million annually for the Marchiselli Highway Improvement Program.

“With the added benefit of creating well-paying jobs in the construction industry, increased CHIPs funding ensures that protecting the safety of New Yorkers remains a top priority,” Jaffee said. “Roads maintained by local municipalities shoulder 87 percent of all travel in New York. We need to protect our families on the road and CHIPs puts the money directly where it’s needed most.”

Protecting unemployed workers and reducing costs for businesses

The 2013-14 budget gradually increases the weekly unemployment benefit from $405 per week to 50 percent of the state’s average weekly wage by Oct. 1, 2026.

“With our economy still making its way out of the worst recession since the Great Depression, protecting workers and those who can’t find work is incredibly important,” Jaffee said.

Additionally, the budget adopts the federal expansion of the Shared Work Program, which helps prevent employees from losing their jobs by providing employers with an alternative to laying off workers, Jaffee noted.

To save businesses money and further jumpstart our economy, the budget reforms the Unemployment Insurance (UI) system to make it solvent in 2016. Employers will immediately save $446.5 million annually and once the UI fund is solvent, there will be three additional benefits to businesses:

• UI Interest Assessment – businesses will no longer pay interest on the federal UI loan once the fund is solvent;
• Contribution Schedule – businesses will pay contribution rates that are up to 25 percent lower than they pay now; and
• Federal Unemployment Tax Act (FUTA) Reduction – businesses will see the federal unemployment tax rate cut in half.

“The Assembly Majority is continuing its commitment to lower costs for businesses and spur job growth,” Jaffee said. “We’ll continue looking for ways to free up money so businesses can hire.”

Investing in our community, protecting programs for at-risk youth

The 2013-14 budget combines the Youth Development and Delinquency Prevention (YDDP) program and the Special Delinquency Prevention Program (SDPP) into a single Youth Development Program, streamlining access to these funds for community service providers. The budget also restores $1.3 million in funding for the Youth Development Program. Additionally, the budget reinstates funding for the following community-based initiatives:

• Community Reinvestment ($1.75 million);
• Safe Harbor for Sexually Exploited Children program (nearly $1.65 million);
• Child Care Subsidies ($1 million);
• Caseload Reduction ($757,200);
• Runaway and Homeless Youth ($254,456); and
• Center for Alternative Sentencing and Employment Services ($200,000).

“These programs are fundamental to protecting our at-risk youth and investing in the improvement of our communities,” Jaffee said. “This year’s budget will provide thousands of at-risk youth safer alternatives than the streets and give them an opportunity to be successful.”

Investing in vital health care programs

The 2013-14 state budget restores $18 million across 89 critical public health programs, including tobacco prevention programs, family planning services and school-based health centers. Further, the budget restores funding for other critical health care programs, including:

• $2 million for spinal-cord injury research;
• $1.1 million for HIV/AIDS-related programs;
• $1 million for infertility programs;
• $557,000 for school-based health centers; and
• $550,000 for women’s health initiatives.

Additionally, the budget includes $34.3 million to protect the right of spousal refusal, ensuring that seniors with ailing spouses who are in need of long-term care services are protected against losing assets that are critical to their well-being, Jaffee noted.

“It’s imperative that we continue to fund these essential health care services so many families depend on,” said Jaffee.

Much-needed funding for family planning services

In an effort to protect essential family planning and women’s health care services for all New Yorkers, regardless of income, the 2013-14 budget provides $750,000 to support family planning services.

“With women’s reproductive rights under attack across the nation, this funding for family planning services is a reminder that New York is a leader in protecting a women’s right to choose,” Jaffee said. “Securing this vital funding helps ensure that women can gain access to the critical health services they need.”

Safeguarding the Environmental Protection Fund

To protect the state’s environmental conservation efforts, the budget includes $153 million for the Environmental Protection Fund (EPF), a $19 million increase over last year’s funding, Jaffee added.

“This budget maintains our longstanding commitment to environmental protection throughout the state,” Jaffee said. “Safeguarding this critical funding will help us combat the destruction of our environment and allow our families to enjoy the beauty of our natural surroundings for many years to come.”

Holding utility companies accountable

In an effort to hold combination gas and electric companies more accountable and more responsive to regulators and customers, the budget strengthens the Public Service Commission’s (PSC) oversight and enforcement capabilities and:

• establishes a “failure to reasonably comply” standard for violations of Public Service Law;
• requires that civil penalties can only be remitted directly to and for the benefit of ratepayers;
• authorizes the PSC to evaluate the continued operation of a power corporation; and
• allows the PSC to revoke a corporation’s operating certificate.

“Strengthening the PSC will enable the commission to more effectively oversee and crack down on utility companies that come up short on the services customers are paying for,” Jaffee said. “These new penalties will give the commission greater authority over the state’s utilities and work to keep them in line, making sure our families receive the services they deserve and pay for.”

Implementing the NY SAFE Act

The budget provides $27.7 million to the Office of Information Technology Services for an electronic gun permit database, as called for in the New York Secure Ammunition and Firearms Enforcement (NY SAFE) Act.

The funding will support the creation of a statewide database of all handgun licenses in New York. The database will enable the State Police to crosscheck the National Instant Criminal Background Check System (NICS) to determine if any current licensees have been legally disqualified from possessing firearms under federal law, including those with criminal convictions, involuntary commitments and those subject to orders of protection.

“We were able to provide funding in the budget to implement the NY SAFE Act,” Jaffee said. “By establishing this critical database, we are providing law enforcement with the tools they need to help safeguard our communities against gun violence and save lives.”

OPWDD:

“I opposed the 6% cut to the Office for People with Developmental Disabilities (OPWDD) and voted for full restoration in the Assembly’s one-house budget resolution which passed the Assembly,” Jaffee said. "I am disappointed that this final budget limited restoration to $30 million dollars (2.5%). We must continue our efforts and advocate for full restoration of funding to ensure people with developmental disabilities and their families have access to the critical services they need."

i. Quinnipiac University Polling Institute, January 31, 2013

ii. www.assembly.state.ny.us/ssspolicy/2013minwage.pdf

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