Albany, NY-- The 2014-15 FY state budget has been voted on and signed by the Governor. Below are details on some of the most important areas impacting CSEA members. Please visit our website for more information.
Taxes
Property Tax “Freeze”: The Governor’s proposal to freeze local and school property taxes is included in the final budget with modifications.
In order to receive a credit in the first year, homeowners must live in a local government or school district that stays within the two percent property tax cap. In the second year of the freeze, municipalities will be required to submit a plan for savings. Past actions of shared services, mergers and other efficiencies will be counted towards the savings goal. There is no penalty if local governments do not meet their efficiency plans.
Estate Tax: The final budget raises the exemption level for the Estate Tax to $5.25 million over 4 years. The budget does not lower the tax rate.
Business Taxes: The budget merges the Bank Tax with the Corporate Franchise Tax. The Corporate Franchise Tax rate would then be lowered to 6.5% beginning on January 1, 2016. Additionally, the budget eliminates the Corporate Franchise Tax for all manufacturers. Qualified manufacturers will also get a 20 percent credit on property taxes. Qualified manufacturers have all of their real and personal property in New York or have an adjusted basis of said property under federal law of at least $1 million.
Taxes
Property Tax “Freeze”: The Governor’s proposal to freeze local and school property taxes is included in the final budget with modifications.
In order to receive a credit in the first year, homeowners must live in a local government or school district that stays within the two percent property tax cap. In the second year of the freeze, municipalities will be required to submit a plan for savings. Past actions of shared services, mergers and other efficiencies will be counted towards the savings goal. There is no penalty if local governments do not meet their efficiency plans.
Estate Tax: The final budget raises the exemption level for the Estate Tax to $5.25 million over 4 years. The budget does not lower the tax rate.
Business Taxes: The budget merges the Bank Tax with the Corporate Franchise Tax. The Corporate Franchise Tax rate would then be lowered to 6.5% beginning on January 1, 2016. Additionally, the budget eliminates the Corporate Franchise Tax for all manufacturers. Qualified manufacturers will also get a 20 percent credit on property taxes. Qualified manufacturers have all of their real and personal property in New York or have an adjusted basis of said property under federal law of at least $1 million.
Local Governments
The final budget includes $438.1 million for the Consolidated Local Highway Improvement Program (CHIPS). The budget also includes $40 million to localities for road repair.
Local governments will not receive any increase in AIM funding.
Health Care
The budget rejects the Governor’s proposal to allow for-profit hospitals in New York.
The budget includes the Safe Patient Handling bill that CSEA has been working on for over 12 years. Safe patient handling procedures protect both health care workers and patients by replacing the manual lifting and moving of patients with assistive devices. The provisions in the budget require a statewide work group to define best practices and issue a report. Health care facilities are required to implement best practices by January of 2017.
The health care budget includes a $1.2 billion bond authority for health care facilities over a 7 year period. This money can be used to invest in health facility infrastructure.
Human Services COLA
Once again the COLA is delayed by 6 months. In January of 2015, a 2 percent COLA would be paid to direct care personnel. The language directing the payments to the actual worker is very strong and providers must forward a resolution of their board attesting to the fact that the money went to the direct care worker. In April of 2015 another 2 percent COLA will be applied pursuant to the same terms.
SUNY Hospitals
The state subsidy to SUNY hospitals is increased by $27.5 million bringing total aid for Upstate, Downstate and Stony Brook to $87.5 million.
Education
Total funding was increased by $1.1 billion. This is an increase of $500 million over the governor’s proposal. The budget also includes a $2 billion education bond to put new technology in schools and for the construction of new classroom space. The bond will have to be approved by voters in a referendum.
Universal Pre-K
A proposal for Universal Pre-K is included in the final budget. It is funded at $340 million: $300 million to NYC and $40 million for the rest of the state. It does not contain a dedicated tax of high-income earners in New York City to fund it.
Libraries
Library funding faced a cut of $4 million from last years’ appropriation in the Governor’s budget. The Legislature restored that cut and increased funding by an additional $1 million.
Child Care
There is an increase of $34 million for child care subsidies. Facilitated enrollment is funded at last year’s level of $7.265 million.
Other Issues
OCFS: The final budget rejects allowing OCFS to close limited secure facilities without providing one year notice prior to closure (delays Close-to-Home in regards to limited-secure youths by an additional year)
DMV: The budget rejects allowing the DMV to be open on Saturdays on a permanent basis.
Public Financing: A one year demonstration program for the public financing of elections would be implemented for the 2014 election for State Comptroller only. The money for the program would be provided by abandoned property funds rather than taxpayer money. Candidates will need to opt-in to the program to participate.
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