Thiele Helps Pass State Budget That Invests in New York’s Future

Provides $1.5 billion in tax relief, spurs economic growth, makes historic investment in education and child care, delays aspects of Common Core

Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) announced the approval of the 2014-15 state budget that provides much-needed tax relief while working to create jobs and ensure a better economic outlook for New York State. The budget also makes a commitment to invest in our kids’ education in addition to making needed reforms to Common Core. The spending plan totals $138 billion and continues the state’s fiscal discipline by holding spending growth to less than 2 percent for the fourth consecutive year.

“The final state budget agreement reflects the Assembly’s commitment to the working families of New York,” Assemblyman Thiele said. “It provides essential funding to educate our kids, continues to alleviate the tax burden on families and helps create a better economic environment that will create jobs.”

Historic investment in education

The 2014-15 state budget increases school aid by $1.1 billion, or 5.4 percent, which is $551 million over the executive budget proposal (A.8556-D).

Included with this increase is $251 million in additional funding for Foundation Aid and $602 million in restorations to the Gap Elimination Adjustment (GEA), helping to reduce the negative financial impact on schools statewide.

“Every child in New York deserves to benefit from a great education,” Assemblyman Thiele said. “With an increase in school aid of more than 5 percent, significant funding for statewide full-day Universal Pre-K and a bond act proposal to modernize classroom technologies, this year’s state budget represents New York’s largest investment in our children’s future in recent memory.”

Reforming Common Core

The 2014-15 state budget incorporates recent legislation passed by the Assembly that helps fix the flawed implementation of Common Core. It protects students from unfair consequences based on test results and ensures the security of sensitive student data. The reforms also:

  • ban standardized tests for students in grades K-2;
  • prohibit Common Core test scores from solely or primarily determining grade promotion;
  • delay the use of test results from becoming part of the permanent record for students in grades 3-8;
  • make changes to assessments for students with disabilities and English language learners pursuant to a federal waiver submitted by the State Education Department (SED);
  • significantly limit the amount of classroom time used for test preparation and assessments;
  • direct SED to provide tools, resources and materials to assist teachers in professional development related to the new standards;
  • place restrictions on the sharing of student data and requiring SED to appoint a chief privacy officer who will serve a three-year term;
  • require the student privacy officer to set guidelines for sharing student data and develop policies to deal with any data breaches;
  • require third-party vendors to notify the school or SED of any data breaches and establishing penalties for failing to do so;
  • create a “Parents Bill of Rights” that places limitations on sharing student data with third-party vendors;
  • provide for the elimination of inBloom and require SED to request that all student information already provided to inBloom be deleted; and
  • allow schools to opt out of sharing private student information with similar entities and certain privately run data dashboards.

“All of us want higher standards for our children. And, while the intent behind Common Core is laudable, there is no question that the rollout has been seriously flawed,” Thiele said. “As we continue to work on addressing each area of concern, the state budget takes immediate action that will reduce stress and anxiety for students, parents and educators, eliminate unnecessary testing and protect student privacy. With testing beginning as soon as this week, it’s critical that we address these problems now.”

Making college education more affordable

The 2014-15 state budget helps grow our higher education system by providing $10.4 billion for SUNY. This year’s budget also helps students and parents by increasing funding for the Tuition Assistance Program (TAP) for the first time in 14 years and restores funding for other college opportunity programs (A.8556-D).

This year’s state budget provides an additional $20.2 million for community colleges, increasing base aid to SUNY community colleges by $75 per full-time equivalent (FTE) student, bringing the total to $2,497 per FTE. This is the third consecutive budget increase in community college funding.

Boosting TAP, other college opportunity programs

To help students afford the rising cost of college, the budget increases funding for TAP for the first time in 14 years. The maximum TAP award will be increased by $165 for a maximum award of $5,165 per full-time equivalent (FTE) student.

The budget also provides $102 million in funding for college opportunity programs, an increase of $4.2 million over the executive proposal. The funding restores cuts and provides a 3 percent increase for the Educational Opportunity Program (EOP), the Search for Education, Elevation and Knowledge (SEEK) program and the Higher Education Opportunity Program (HEOP).

Reducing the property tax burden

This year’s budget provides significant property tax relief for homeowners across the state by offering a two-year property tax credit in the form of a direct check, provided that a local government and school district stay within the 2 percent property tax cap. To benefit for a second year, schools and localities would have to propose a detailed cost-cutting plan. This measure will not only help families save money but will also incentivize efficiency, saving taxpayers over $1.5 billion over the next 3 years.

“In a time where many are already struggling to get by, property taxes shouldn’t be pricing families out of their own homes,” said Thiele. “This essential relief will help lower the property tax burden on East End families and help make our community more affordable.”

Keeping New York affordable

In last year’s budget, the Assembly fought to phase out the 18-a utility surcharge imposed on energy bills. This year’s budget accelerates the phase-out, lowering the surcharge rates by $200 million annually for both residential and commercial customers and $600 million over the next three years.

“With utility prices climbing, it’s more important than ever to reduce costs for consumers,” said Thiele. “The 18-a utility surcharge is an unnecessary burden on ratepayers. Driving more relief to homeowners is crucial, because speeding up the phase-out will ease the strain on already tight family budgets.”

Helping manufacturers

In an effort to attract more businesses to the state and create more local jobs, the budget provides tax incentives to manufacturing businesses looking to set up shop here in New York. One such incentive eliminates the income tax on manufacturers, saving businesses $193 million dollars starting in 2014-15, creating jobs and revitalizing the economy.

The budget further relieves manufacturers by offering a tax credit equal to 20 percent of their property tax cost. Businesses that were worried about locating or expanding in New York will no longer face the same burdensome property taxes that discouraged those before them. This will save manufacturing businesses another $100 million each year starting in 2015-16.

“We are making it easier for manufacturers to do business here, so they can hire more workers,” said Thiele. “Whether it’s cutting their property taxes or lowering their income tax rate to 0 percent, we are helping to encourage technological innovation and create the good-paying, high-quality jobs we need to put New Yorkers back to work.”

Supporting small businesses and MWBEs

The budget also includes $1 million to support the Minority- and Women-owned Business Enterprise (MWBE) Development Lending Program, a $365,000 increase from the executive budget proposal. A new MWBE Investment Fund is also included within the lending program. The fund would provide critical financial support to foster the development of new and emerging ideas and promote the long-term financial performance and success of early-stage MWBEs.

“MWBEs and other small businesses are the drivers of our state’s economy. We need to be sure we are doing everything we can to help them compete,” Assemblyman Thiele said. “Removing barriers for small businesses allows them to participate in the rebuilding of our economy.”

Expanding the NY Works Program

Furthermore, the budget expands the NY Youth Works Program, which encourages businesses to hire unemployed, disadvantaged youth, ages 16 to 24, by connecting it to community colleges. Tying the occupational training component of the NY Youth Works Program to the Job Linkage Program will help encourage more employers to hire inner-city youth, said Thiele.

Improving transportation and job opportunities

To promote job growth while rebuilding our crumbling infrastructure, the budget dedicates over $3.4 billion for capital improvement of all transportation infrastructure.

The budget includes $438.1 million for the Consolidated Highway Improvement Program (CHIPs) and $39.2 million for the Marchiselli program. It also dedicates an additional $40 million in funding to help local governments repair local roads and bridges impacted by the harsh winter.

“After the winter we’ve had, many of our local roadways have deteriorated,” said Thiele. “This money will help cover the costs of much-needed repairs across the state, without overloading localities’ budgets.”

Strengthening New York’s child care system

The 2014-15 state budget provides funding to increase access to quality, affordable child care. The provisions include:

  • $34 million for more than 4,500 additional subsidized child care slots;
  • disregarding the earned income of teenagers under 18 in the household for the purpose of determining a family’s child care subsidy eligibility; and
  • requiring child care providers to post their most recent inspection report in a prominent place.

“It has become nearly impossible for working families to find affordable and reliable child care,” Assemblyman Thiele said. “The state budget addresses New York’s child care crisis so families don’t have to break the bank to afford safe, nurturing care for their children.”

Two percent COLA for caregivers of the elderly and disabled

The state budget includes $13 million to support 2 percent salary increases for direct care workers, including those caring for the disabled at nonprofits licensed by the state. The first Cost of Living Adjustment (COLA) will take place on Jan. 1, 2015, and the second increase will go into effect on April 1, 2015. These caregivers assist the most vulnerable New Yorkers, and this pay increase will help ensure a well-qualified and adequately staffed human services workforce, Thiele noted.

“Direct care workers look after and assist those who need help the most,” Assemblyman Thiele said. “Their pay should reflect the enormous responsibility they take on at work every day.

Public campaign financing

This year’s budget establishes a pilot program for public campaign financing in the 2014 state Comptroller race. The program’s centerpiece is a 6-1 match of contributions up to $175, funded by the surplus money in the state’s Abandoned Property Fund. In addition, the program will cap campaign contributions at $6,000 per person for candidates participating in the public finance system. Further, participating candidates must agree to take part in at least one debate for both the primary and general election. Contributions from lobbyists, anonymous donors, campaign vendors and transfers from political parties or committees will not be matched by public funds.

“The Assembly has long pushed for a public campaign finance system and did so again this year by passing the Fair Elections Act,” said Thiele.

In addition, a new enforcement unit will be created within the state Board of Elections that will have independent authority to investigate violations of the Election Law via a Chief Enforcement Counsel. The budget legislation also strengthens disclosure requirements for independent expenditures for communications which refer to, and advocate for or against, a clearly identified candidate and are communicated to a general public audience.

Restoring public trust

The enacted 2014-15 state budget includes provisions to increase transparency and bring integrity back to government. To hold accountable those who abuse the public trust, the budget toughens anti-bribery laws and creates four new crimes of corrupting government. These new crimes may be used to prosecute public servants and persons acting in concert with them for schemes to defraud or schemes to steal from the state or other governmental entity. In addition, a new crime of “public corruption” is created to allow prosecution of public officials who, through the use of their office, commit crimes impacting state or local governments.

“The public deserves to have confidence that their officials are working for them,” said Thiele. “This year’s budget helps clean up government by weeding out corruption at all levels.”

Investing in vital health care programs

“You shouldn’t have to jump through hoops to receive adequate health care,” Assemblyman Thiele said. “One of my top priorities is to make certain each and every New Yorker has the care they need and deserve.”

The final budget agreement continues to ensure proper health care is available for our most vulnerable populations. The final budget rejects the governor’s recommendation to eliminate allowing spousal refusal, restoring $10 million. The practice of spousal refusal protects healthy spouses from being required to spend their life savings to care for ill spouses in need of long-term care.

“We work a lifetime to be able to relax, enjoy and have a sense of stability upon retirement,” Thiele said. “No one should have to lose everything in order to afford care for an ill spouse. We need to show the elderly the respect they deserve by preserving spousal refusal.”

In recognition of the need for health care research, the budget plan also provides $7 million in support for the Spinal Cord Injury Research Fund. Additionally, the budget provides $4.1 million for the expansion of eligibility for the Elderly Pharmaceutical Insurance Coverage (EPIC) program by increasing the income limit for the deductible plan from $35,000 to $75,000 for those who are single and $50,000 to $100,000 for those who are married.

The budget also invests in our health care systems’ infrastructure by including a new $1.2 billion capital program. The funding will support projects that improve financial stability and increase efficiency of health care providers. These funds will complement the $8 billion federal Medicaid Waiver program that will reinvest savings into the transformation of New York’s health care system.

“Access to affordable, quality health care is the right of every New Yorker,” Assemblyman Thiele said. “That includes the right to be treated at a facility that has the most up-to-date infrastructure.”

Supporting families

The budget takes into account the challenges parents face as they make decisions regarding their families. Specifically, the plan provides an additional $1 million for infertility services as well as $750,000 for family planning services.

“Women – and families – need our support as they decide what is best for their own future,” Thiele said. “Providing help as they attempt to grow their family is vital.”

The budget also provides $3.9 million to support the payment for Early Intervention Services, which are critical in helping infants and toddlers with developmental delays that can be remedied early on with appropriate care.

Strengthening housing programs

“Obtaining affordable housing continues to be a struggle for many working families,” Assemblyman Thiele said. “The budget continues to support programs that help to solve this problem so every New Yorker has safe, quality housing available to them.”

Specifically, the budget restores $2.2 million to the Neighborhood and Rural Preservation programs. These programs aim to revitalize neighborhoods around the state to restore the vibrancy of communities, resulting in more affordable housing and an increased positive economic outlook, Thiele noted.

In addition, $200,000 is provided for a grandparent housing study, which could shed light on the increasing occurrence of children living with a grandparent or elderly relative and its affordable housing implications.

The budget plan also outlines how over $312 million in funds received from the mortgage foreclosure settlement with JPMorgan Chase will be used. The funds will be spent over several years to aid New Yorkers facing housing and foreclosure issues by:

  • providing funding for housing counselors;
  • running state and local foreclosure assistance hotlines;
  • operating state and local foreclosure mediation programs;
  • providing legal assistance; and
  • creating housing remediation and anti-blight projects.

Safeguarding the environment

“We owe it to future generations to take better care of our planet,” Thiele said. “Damage has already been done to our environment, but we can work together to provide the necessary resources to change course and protect it.”

Specifically, the budget continues a commitment to protecting New York’s environment for future generations by increasing funding to the Environmental Protection Fund (EPF) by $9 million – for a total of $162 million. In addition, the budget plan also provides $92.5 million to support capital investments in our state parks.

Making roadways safer for drivers

The budget agreement continues New York’s efforts to crack down on those who text while driving by implementing stricter penalties on young and new drivers convicted of the offense. Upon first conviction, the driver will have their license suspended for 120 days, and upon a second conviction, their license will be revoked for a full year.

“Texting, talking or using your phone in any other way while driving is simply not safe for anyone on the road,” Assemblyman Thiele said. “New York continues to be a leader in curbing this dangerous behavior in order to save lives.”

Supporting commuters by protecting MTA funding

The final budget rejects the governor’s proposal to sweep $40 million in MTA operational funds to pay down MTA debt service. The budget ensures $10 million of this funding remains dedicated for mass transit needs.

Thiele noted that while paying down debt service is needed, it shouldn’t come at the expense of MTA riders who have dealt with continual fare increases as well as service cuts. By rejecting the diversion of these funds they can be used for their intended purpose, whether it be for service improvements or to prevent future fare hikes.

Protecting and improving the criminal justice system

The budget includes funding to direct the Commission on Youth, Public Safety and Justice to make recommendations on increasing the age of juvenile jurisdiction in the state’s criminal justice system. Currently, New York is one of only two states in the nation that prosecutes 16- and 17-year-olds as adults.

“A 16-year-old is still a child; we must take that into consideration when prosecuting these young adults,” Thiele said. “This budget takes a needed step to reevaluate how our state’s criminal justice system treats teenagers in order to ensure fairness in the law.”

The 2014-15 budget provides $12.2 million in support for Alternatives to Incarceration (ATI) programs. Further, the budget provides:

  • $2.2 million for Prisoners’ Legal Services;
  • $2.1 million to the New York State Defenders Association; and
  • $600,000 for immigrant legal services for students and families.

The budget also restores $2.83 million in civil and criminal legal services grants, $600,000 for Edward Byrne Memorial Justice Assistance Grants (JAG) and $2.2 million to domestic violence-related civil and criminal legal services providers. It also provides an additional $100,000 for the Office of Indigent Legal Services.

Supporting the state’s agricultural industry

The budget provides $8.45 million in increased funding to agriculture programs, including the following:

  • Farm Viability Institute: $1.1 million;
  • Agribusiness Child Development: $1 million;
  • NY Apple Growers Association: $544,000;
  • Cornell University Rabies program: $460,000;
  • NY Wine and Grape Foundation: $287,000;
  • FarmNet: $216,000;
  • Maple Producers Association: $150,000; and
  • Tractor Rollover Protection Program: $150,000.

“New York’s agriculture industry is a major component of our state’s economy,” Assemblyman Thiele said. “By ensuring that this essential industry is receiving the support it needs, we are not only safeguarding its survival, but investing in its growth.”