On Thursday, March 28, the Assembly adopted a FY 2013-14 state budget after an often difficult process in which we sought to maintain our commitment to fiscal discipline while making the right investments, from education to the economy, for the people and taxpayers of our state.
Over the past two years we have made important strides toward resolving New York's structural deficits and easing the tax burden that has restrained much-needed job growth. This effort has forced us to make some painful choices with respect to funding across a broad range of programs, and this year has been no exception.
Of the total $141.3 billion, approximately $6 billion relates to federal aid for communities devastated by Superstorm Sandy last fall and implementation of the Affordable Care Act. The remaining $135 billion represents an increase lower than the current rate of inflation.
Encouragingly, this is the third consecutive budget delivered on or before the official March 31 deadline, another sign that the partisan dysfunction that once paralyzed Albany and undermined faith in state government has been replaced with a new spirit of cooperation.
Following are some important elements of the enacted 2013-14 state budget:
No tax increase, rebate for middle-class families
We have eliminated a potential deficit of more than $1.3 billion without any broad-based tax increases. The budget also includes a $350 rebate in 2014 for families earning $40,000 and over with at least one child 16 or younger.
Increased support for New York's public schools
We have bolstered aid for local school districts by nearly $1 billion over the previous budget and $436 million over Governor Cuomo's original FY 2013-14 proposal, for a total of $20.8 billion. This reflects our enduring commitment to providing a high-quality public education for our children.
Minimum wage increase, business tax credit
New York's minimum hourly wage will increase from $7.25 to $9 over the next three years. This will make it easier for working New Yorkers to support themselves and their families, and their increased purchasing power will mean greater consumer demand for the state's economy. Also included is a tax credit for businesses who hire employees at the new minimum wage.
Funding for people with disabilities
The initial budget plan reduced spending for the Office for People With Developmental Disabilities (OPWDD) by $120 million as part of an on-going negotiation with the federal government over Medicaid repayments. These cuts could have been much deeper, and while the final budget only restores $30 million a commission will be appointed to explore potential remedies. I certainly pledge to do all I can on behalf of those whose needs do not diminish even in a difficult fiscal climate.
In the midst of a still-recovering national economy and in the wake of unexpected events such as Superstorm Sandy, New York undeniably faces significant challenges, a fact reflected by this year's budget negotiations and by the spending plan adopted by the Legislature. I believe we are building the foundation for a brighter future for the Empire State, but there is no question that a great deal remains to be done.
For more on the 2013-14 state budget, go here.