Budget Proposal Would Create New Jobs and Ensure Fiscal Responsibility
The New York State Senate approved a 2013-14 budget resolution, proposed by the Senate Majority Coalition, that focuses on helping businesses create new jobs, investing additional funds in education and transportation, providing mandate relief to local governments, and restoring proposed cuts to women’s health programs as well programs for the developmentally disabled. The budget also includes a proposal for a permanent two-percent state spending cap.
“This budget resolution addresses a number of our priorities including our major focus of creating jobs and providing relief for our families,” said State Senator Jack M. Martins. “We were able to include our Family Tax Relief Act and restore critical funding for education and programs that are important to many of the residents in our region.”
The budget resolution also includes: the Senate’s Blueprint for Jobs plan that would allow the 18a energy tax surcharge to expire and cut taxes on small businesses and manufacturers; the Senate’s Grown in New York plan to strengthen family farms and the agriculture industry; a school aid increase of $415 million above the Governor’s budget; restorations to women’s health programs that were cut in the Governor’s budget; property tax rebates for senior citizens; a $100 million increase in CHIPS funding for local road and bridge projects; and relief for counties from increasing Medicaid costs.
Highlights of the Senate budget include the following:
HELPING BUSINESSES CREATE JOBS
> Eliminates the Corporate Tax entirely for 200,000 small businesses over the next four years ($250 million);
> Provides a 10-percent Personal Income Tax (PIT) exemption for business income by 2016 ($120 million) for 800,000 small businesses that pay personal income taxes;
> Eliminates the Corporate Tax entirely for manufacturers over the next three years, saving them $445 million;
> Rejects the Governor’s proposal to extend the 18a energy tax surcharge to provide over $2.5 billion in relief to families and employers over the next five years;
> Eliminates 1,000 needless regulations;
> Invests in start-up companies and downtown revitalization;
> Expands job training opportunities;
> Encourages businesses to hire military veterans;
> Proposes a two-percent state spending cap and a super-majority vote to increase state taxes.
FAMILY TAX RELIEF ACT
> Increases the dependent exemption from $1,000 per dependent to $2,020 per dependent;
> Increases the dependent care credit for the first time since 1999;
> Increases the child tax credit from $330 per child to $375 per child;
> Provides a new supplemental child tax credit of $500 per family; and
> Restores STAR rebate checks for senior citizens.
GROWN IN NEW YORK
> Creates a personal income tax deduction for deposits into first-time farm purchase accounts; and
> Establishes a 25-percent natural resources improvement credit for farmland and forestlands.
> In addition, the Senate Budget Resolution adds funds for vital agriculture programs such as the Farm Viability Institute, the Tractor Rollover Program, and Cornell Farm Family, as well as support programs for Maple Producers, the Wine and Grape Foundation and apple growers.
RELIEF FOR LOCAL GOVERNMENTS
> Accelerates the state takeover of the local growth of Medicaid (one percent cap in 2013 and a zero percent cap in 2014), saving counties millions of dollars; and authorizes each county to perform a local audit of their program;
> Increases funding for the Aid to Municipalities Program (AIM) by $20.2 million;
> Increases CHIP funds for local road and bridge projects by $100 million;
> Establishes an independent Office of Risk Management; and
> Authorizes the Comptroller and NYS Teacher’s Retirement System Board to make a long-term stable pension contribution option available to local governments, but modifies the Governor’s pension reform proposal to ensure localities can meet their financial obligations along with giving them additional flexibility.
AID TO EDUCATION
> Increases state school aid by $415 million above the level proposed by the Governor; and
> Raises community college base aid by $150 per student, and proposes exempting community colleges from the job-killing MTA payroll tax.
FUNDING FOR WOMEN’S PROGRAMS
> Restores millions of dollars to critical women’s health programs cut as part of the Executive Budget proposal, including funding for: rape crisis centers, the Adelphi University Breast Cancer program, WIC, maternity/early childhood foundation, the prenatal and postpartum home visitation program, the Evidence Based Cancer Services Program (EBCSP) and programs to help domestic violence victims.
> Restores $120 million in cuts to the Office of People with Developmental Disabilities (OPWDD) to ensure the state continues to protect vulnerable New Yorkers.
> Accepts the $30 billion in federal Sandy aid and calls for the establishment of an inclusive process for public input related to storm relief and recovery. Portions of the funds may also be applied to damage from Hurricane Irene and Tropical Storm Lee;
> Calls for examination of statewide certification and licensing programs for mold removal contractors;
> Makes generator hook-ups available for service stations statewide, if federal funds are available; and
> Calls for the examination of the creation of a microgrid system to better protect New York hospitals and emergency care centers.