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2009 – 10 Executive Budget Alert

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PENSIONS

Tier V – For Newly Hired Employees of the State and Local Governments.

The Proposal calls for all State and local government employees who are members of the New York Sate and Local Employees Retirement System (ERS), the New York State Teachers Retirement System (TRS) the New York City Employees’ Retirement System (NYCTRS), the New York City Board of Education Employee Retirement System (BERS) and the New York State and City optional Retirement Program (ORP) hired after March 1, 2009.

  • Must be 62 years of age before being eligible to draw a pension benefit (eliminates 30/50 benefit).
  • Permanent 3% employee contribution.
  • 10 years vesting.
  • 25 years of service before pension calculation multiplier increases from 1.66% to 2%.
  • Reduces the amount of sick leave allowed to be used for additional service credit from 200 days to 165 day (* we believe this is contractual and must be negotiated).
  • Excludes all overtime payments in final average salary calculations.

STATE WORKFORCE

The proposed budget continues the hiring freeze instituted in 2008.  It calls for agency consolidations/mergers and facility closures.

Salary / Payroll Proposals:

  • Wage Freeze – Elimination of the 3% salary increase in 2009-10.
  • Salary Deferral – 5 day salary deferral for all employees, a one-day reduction per paycheck for five payroll periods.  Payable upon separation from service or April 1, 2001.

** We believe these actions cannot be taken without negotiations, and CSEA will NOT re-open contracts **

Employee/Retirees Health Insurance:

Sliding scale for health insurance contributions for future retirees covered under NYSHIP: 

  • Currently, the State contributes 90 percent of premiums for individual coverage and 75 percent for dependent coverage for all employees who retire with more than 10 years of service.
  • Under this proposal the State would pay a minimum premium share of 50 percent for individuals and 35 percent for dependent coverage for employees who retire with 10 years of service.
  • The State’s contribution would increase 2 percent for each additional year of service to a max of 90 percent for individuals and 75 percent for dependent coverage for employees with 30 years of service.

Medicare Part B Premiums – this proposal would require active and retired employees to pay a share of the Medicaid Part B premium.  Currently the State pays 100 percent of the premium.  This is only for those covered under NYSHIP.

The budget includes destructive cuts in state services and the state workforce, while ignoring revenue-raising options.

CSEA members work hard in good times and bad.

The average CSEA member makes $40,000 per year and retirees have pensions of about $14,000.

Over many years and numerous contracts CSEA has fought to ensure that all formal, current and future members earn a living wage and have adequate pension and health care in retirement.  This budget seeks to undo those gains.

Wage Freeze – We will not re-open our contract.  CSEA negotiated a 4-year contract that was both fair and reasonable for our members and the state.

Salary Deferral – losing one-weeks pay will hurt my family and only cost the State more in the long-term.

These proposals violate our contract and we will fight against these changes.

Isn’t there a better way then making it harder for the people who do the work everyday!

Contact the Governor and State Legislators – Let them know that services will suffer if they go forward with these cuts.

Sample Letter – State Workforce

OFFICE OF CHILDREN & FAMILY SERVICES

The proposed budget does away with the 12-month closure notification law.

6 Youth Facility Closures:

  • Adirondack Residential Facility (Clinton County)
  • Cattaraugus Residential Center (Cattaraugus County)
  • Great Valley Residential Center (Cattaraugus County)
  • Pyramid Reception Center (Bronx)
  • Rochester Community Residential Home (Monroe County)
  • Syracuse Community Residential Home (Onondaga County)

2 Youth Facilities Downsized:

  • Allen Residential Center (Delaware County)
  • Tryon Residential Center (Fulton County)

3 Evening Reporting Centers Closures:

  • Capital District Evening Reporting Center (Albany County)
  • Buffalo Evening Reporting Center (Erie County)
  • Syracuse Evening Reporting Center (Onondaga County)

Talking Points – OCFS Closures.

OCFS claims the facilities to be closed or downsized were selected because of high vacancy rates.  However, we know how vacancy rates are manipulated by the agency through the placement and transfer of youths.

Due to deceptive actions by OCFS, CSEA ended its participation in a Labor-Management Task Force designed to help transform NYS juvenile justice system.

The proposed closing of youth facilities:

  • Undermines labor-management activities
  • Violates state law requiring 12 month notification prior to closures
  • Goes against the recommendations of the task forces consultant who believe more staffing will be required to transition from a correction model to a more therapeutic model.

The facilities slated for closure provide the small-scale environments that research studies document as enabling improved treatment for youth.

Over one-third of all OCFS-placed youth in private facilities fail in these placements and are transferred to OCFS facilities for more appropriate care.

In November 2008 alone, 19 youth were returned to Pyramid from private facilities.

ECONOMIC DEVELOPMENT AGENCY MERGERS 

The state’s economic development programs are currently administered by three entities:

  • The Department of Economic Development (DED) is responsible for providing policy guidance and for managing marketing and advertising activities that promote tourism and new business investment in New York.
  • The Empire State Development Corporation (ESDC) is a public authority charged with fostering and financing key economic development projects across the state.
  • The Foundation for Science, Technology and Innovation (NYSTAR) administers programs to foster university-based research and technology

The proposed Executive Budget proposes to merge three economic development entities – the Department of Economic Development (DED), the Foundation for Science, Technology and Innovation (NYSTAR) and the Empire State Development Corporation (ESDC).

DED and NYSTAR would be eliminated and their core programs would be assumed by ESDC.

Talking Points – Economic Development Mergers

The state must not allow all of its major economic development programs to be run by public benefit corporation – ESDC.  It should be run by a state agency.

  • ESDC is run by a board and is not directly accountable to the Governor or any other public official.
  • Public benefit corporations like ESDC are exempt form scrutiny and approval of the NYS Comptroller with respect to contracting.
  • ESDC operates outside the civil service system.

Economic Development should be consolidated into the Department of Economic Development (DED).  Transferring the personnel and functions of ESDC and NYSTAR into DED:

  • Ensures that staffing at all state economic development activities will be based on merit and fitness.  This protects employee civil service and union rights.
  • The Commissioner of DED is appointed by and accountable to the Governor, just like any other state agency.
  • As a state agency, DED is subject to greater public scrutiny, legislative oversight and transparency.

The state will still benefit from the cost savings, while public employees and the public are protected.

Contact the Governor and your elected officials and let them know that the state’s economic development programs should be run by a state agency NOT a public benefit corporation.

Sample Letter – State Workforce

CORRECTIONS

Planned Decrease of 1,342 Full-time Equivalent (FTE’s) Positions, due to planned consolidations

4 minimum-security camps are slated for closure:

  • Pharsalia (Chenango County)
  • Gabriels (Franklin County)
  • Georgetown (Madison County)
  • Mt. McGregor (Saratoge County)

DOCS plans to close several annexes to further consolidate the system and discontinue Prison Farm Operations at 12 Correction Facilities.

The budget provides for an accelerated closure notification to override the 12-month closure notification law and requires only 90-day notification in times of fiscal crisis.  Fiscal Crisis is defined as 2 consecutive quarters of decline in the gross domestic product (GDP).  Authorization for accelerated procedure will remain in effect until the close of the third year immediately following the fiscal year of the economic downturn.

Notice of closures is expected in March 2009 with the closures effective in June 2009.  Staff at affected facilities will be offered positions at other correctional facilities or can accept openings in other state agencies.

Talking Points – Corrections

Closing facilities is dangerous for employees and inmates.

DOC’s is wrong in their plan to “right size” corrections:

  • The state’s prison population is at 105% of capacity
  • Maximum-security facilities are at 124% of capacity
  • Medium security facilities are at 101% of capacity
  • Over 4,000 inmates are “double bunked”

The 12-month notification law must not be eliminated.

The promise of position in another facilities or state agency is misleading:

  • Are there enough vacancies in nearby facilities
  • An offer of a position nearly sixty miles away is not a genuine offer of employment to our CSEA member
  • There is a hiring freeze for all agencies

HEALTHCARE

The proposed budget calls for $2.5 billion in overall health care cuts.

Hospitals

$1 billion in cuts for hospitals

  • Cut inpatient reimbursements rates by 8% until March 31, 2009 and than another 2% until 2010.
  • Eliminate the remaining trend factor for 2008 and eliminate it in whole for all of 2009.
  • Cut $24 million from GME funding and redistributes the remaining money.

Nursing Homes

$845 million in cuts for nursing homes statewide.

  • Cut inpatient reimbursements rates by 8% until March 31, 2009 and then another 2% until 2010.
  • Eliminate nursing home rebasing.
  • Eliminate the remaining trend factor for 2008 and eliminate it in whole for all of 2009
  • Eliminate 6,000 nursing home beds and replace them with “community based alternatives.”
  • Eliminates workforce recruitment and retention grants.

Other Provisions

  • Increase the “covered lives assessment” by $245 million.  This assessment, which is charged to insurance companies for every premium that they issue, will be passed on to you through an insurance premium increase.

Talking Points – Healthcare

This budget would cause great harm to those who need health services by outright eliminating needed services or reducing the system’s ability to provide the service.

With the coming spike in the elderly through the retirement of the “baby-boomers,” the state should be creating more nursing home beds instead of eliminating the ones that we already have.

An increase in the covered lives assessment will raise our health insurance premiums.  Health insurance is expensive already – the Governor should not be balancing the budget through fees that he knows will be paid by the middle-class.

Public hospitals are facing revenue shortfalls already.  Redistributing Graduate Medical Education (GME) funding will only cause longer waits in the emergency room and fewer staff to administer services.

Many of our nursing homes are already short-staffed.  Eliminating the workforce recruitment and retention grant will cause fewer people to enter and stay in the health care field.

LOCAL GOVERNMENTS

The proposed budget calls for stagnant aid to municipalities, reduction in state reimbursement for county run programs and a decrease in benefits for local government employees.

  • A 0% increase in AIM funding for most localities.
  • Creation of TIER 5 for local government employees.
  • Eliminating state reimbursement for various optional public health projects preformed by counties.
  • Eliminate the $37.60 per diem payment to local jails for housing “state-ready” inmates and parole violators.
  • Elimination of the STAR rebate program.
  • Eliminating the Human Services COLA for 2009-10.
  • Increase in the basic welfare grant form $219 to $387 by January 2012.
  • Exempt all school districts for 5 years of WICKS law.
  • Making it easier for towns, villages, and special districts to consolidate or merge with other localities.
  • Eliminate certain fraud prevention techniques for people receiving certain social services.

Talking Points – Local Governments

With the cost of gas, groceries, and other household goods going up well over 3% for the past year, taking away my COLA of 3% will cause me more harm than the economy is already doing.

Local government workers are on the front line of identifying fraud and abuse in social service programs.  By eliminating the need for face-to-face interviews of social service recipients, our chances of catching fraud will decrease.

Municipal governments have been hit hard by this economic downturn as well.  Localities need more help from the state now in order to ensure that vital services are still r\provided, and the safety of all citizens is maintained.

Cutting reimbursements to counties and local governments for services that they provide will only force local governments to stop providing the service.

The creation of a TIER 5 retirement system is the easy way out to deal with a complex problem.  The salaries and benefits of CSEA members are not what are creating budget deficits.

NURSING HOMES

The proposed budget call for $845 million in cuts for nursing homes statewide.

  • Cut inpatient reimbursements rates by 8% until March 31, 2009 and then another 2% until 2010.
  • Eliminate nursing home rebasing.
  • Eliminate the remaining trend factor for 2008 and eliminate it in whole for all of 2009
  • Eliminate 6,000 nursing home beds and replace them with “community based alternatives.”
  • Eliminates workforce recruitment and retention grants.

Talking Points – Nursing Homes

This budget would cause great harm to those who need nursing home based services by eliminating needed services or reducing the system’s ability to provide the service.

With the coming spike in the elderly through the retirement of the “baby-boomers,” the state should be creating more nursing home beds instead of eliminating the ones that we already have.

Many of our nursing homes are already short-staffed.  Eliminating the workforce recruitment and retention grant will cause fewer people to enter and stay in the health care field.

EDUCATION

Overall School Aid Cut by $2.5 billion from Expected Levels

  • Eliminates $1.8 billion in expected school aid increases
  • Further decrease of $698 million from 2008-09 funding levels

Deficit Reduction Assessment (DRA) – a one-time $1.1 billion assessment would be taken against the total formula based aids.  Individual school districts will see reductions of anywhere from 3% to 13% depending on district wealth.

Pre-School Special Education – shifts approximately $188.3 million (15%) to school districts.

BOCES Aid – maintains the formula resulting in an increase of $33 million to a total of $706 million.

Universal Pre-K Frozen at 2008-09 Level

Full phase in extended to 2014-15, but exempted from the overall Deficit Reduction Assessment (DRA).

STAR – Continues the Enhanced and Basic STAR exemptions, but eliminates the Middle Class Star Rebate Program.

Reserve Accounts – allows school districts to withdraw funds from the employee benefits accrued liability reserve.

Talking Points – Education

Governor Paterson’s proposal to cut $2.5 billion in school aid would be devastating to the quality of education students across New York deserve.

Our schools and students cannot afford these proposed cuts.

The cuts to school aid meals services will have to be cut and property taxes will be raised.

Shifting a larger percentage of the cost of Pre-School Special Education from the state and counties to school districts will mean put an additional burden on school districts.

The Governor calls for a “shared sacrifice” from everyone except the wealthy.

Share the sacrifice of this budget deficit without putting the brunt of the burden on working and middle-class families by raising taxes on the wealthiest New Yorkers.

HIGHER EDUCATION

  • SUNY tuition would be increased by $620.  SUNY will retain 20% of tuition revenue, while the state would take the rest for the General Fund.
  • SUNY’s community college base aid would be reduced by 10 percent.
  • Requires SUNY Research Foundation to pay 10 percent of cost for using State-Funded facilities.

Administrative Flexibility

CSEA OPPOSES the budget proposal that also allows for more flexibility for SUNY and CUNY to have the flexibility to enter into contracts/procurements without pre-approval for goods, services and construction.

Talking Points – Higher Education

Across the state CSEA members deliver essential services that all New Yorkers depend on.

New York’s Higher Education system is one of the best in the country.  New Yorkers would benefit by keeping SUNY schools competitive and bringing more students to New York.

Investing more in higher education will attract young people all over the world to come to New York and help keep younger people in the state.

SUNY Flexibility

SUNY could privatize services currently provided by public employees.

Private vendors are not subject to the same accountability or oversight as are state employees.

Profit, not quality of service, is the driving motivator of private contractors.

It is critical to ensure that only the most qualified individuals are hired for public services.


The Budget

 

CSEA Slams Governor Paterson’s Budget

On December 16, Governor Paterson unveiled a $121.1 billion budget proposal.  He released his budget a month early in hopes of passing a budget by March to save the state additional money.  Paterson’s projected deficit has reached $15.5 billion.

State Workforce

Governor Paterson again proposed:

  • Eliminating the 3 percent 2009-10 salary increase.
  • Delaying salary payments (lag pay) for five-days before March 31, 2009
  • Changing retiree contributions for health care to be provided on a sliding scale based on the years of service
  • Require state employees and retirees to contribute to Medicare Part B premiums.  This is only for those covered under NYSHIP
  • A new Tier V for new state and local government employees.  New employees must be 62 to retire (eliminates 30/55 benefit); makes employee contribution of 3% permanent; increase the days unused sick leave; reduced service credit until reaching 25 years
  • There is no proposal for Early Retirement

CSEA President Danny Donohue said, “CSEA has repeatedly told the Governor that it will not reopen contracts.”

Health Care

Governor Paterson’s budget slashes the health care system by $3.5 billion in cuts and taxes to health care programs.

Cuts include:

  • $799 million to hospitals; increased hospital surcharges by $108 million
  • $424 million to nursing homes; eliminates nursing home rebasing.  A new methodology will be implemented beginning March 1, 2009
  • 8% reduction in Medicaid rates for 2008-09, and 2% for 2009-10
  • Elimination of the human services COLA for 2009-10.   It will start again in 2010 and go through 2014

Paterson’s budget also eliminates:

  • The trend factor for nursing homes and all hospitals for 2008-09 and 2009-10
  • 6,000 nursing home beds throughout state
  • The nursing home and hospital recruitment and retention grant

Education

The Executive Budget proposes

  • A cut of $2.5 billion in overall school aid
  • Library Aid would be decreased $18 million
  • Elimination of the Middle Class STAR Rebate checks
  • Increased BOCES Aid by $33 million
  • Increased transportation aid $93 million

Higher Education

  • SUNY tuition would be increased by $620.  SUNY will retain 20% of tuition revenue, while the state would take the rest for the General Fund
  • SUNY’s community college base aid would be reduced by 10 percent
  • Requires SUNY Research Foundation to pay 10 percent of cost for using State-funded facilities
  • Reduces SUNY hospitals aid by $25 million

Revenue

Governor Paterson’s proposal did not include an income tax increase for the wealthy, but did however include 88 new taxes and fees that would total $4 billion.  These include:

  • Increases Motor Vehicle License Fees by 25 percent
  • Requires DMV to reissues license plates starting April 1, 2010 and increases the fees from $15 to $25
  • Eliminates the sales tax exemption on clothing and shoes costing less than $110
  • New taxes on movie tickets, sporting events and other entertainment expenses, taxi rides, non-diet soda, beer, wine, personal services such as barbering, manicure, pedicure, massage, health salon
  • Cable and Satellite TV would become subject to sales tax

CSEA President Danny Donohue said, “The middle class will have to pay more and get less while the wealthiest New Yorkers slide by under the Governor’s proposal.  There is no sharing of the sacrifice here – it’s working people getting stuck with the bill.”  CSEA will work with the Governor and the Legislature to help pass a budget that is not on the backs of working families in New York State.


NEW YORK STATE BUDGET

State Budget Process

The state budget is the spending and revenue plan for each state fiscal year. The budget funds all state operations and programs. It is the main funding source for all county, local government and school programs. The state budget is also where tax policy is decided to determine how programs are paid for.

Cuts in state programs, education, Medicaid or transportation mean job losses and service cuts in state government, local governments and schools. This has a huge impact on CSEA members and the jobs we do. It directly impacts your contracts, pensions and other benefits.

The Governor introduces his budget in January and the legislature must act on it by April 1st. The legislature can amend and change the Governor's budget but a recent court decision has given the Governor the upper hand in this process.

The only way for CSEA members to protect their interests in this process is through lobbying their legislators and the Governor. CSEA members must know about the budget and how it affects them so

CSEA can respond as a united voice to protect our jobs and benefits.

CSEA MEMBER INVOLVEMENT

The CSEA Political Action Team gets involved in the state budget from day one. The Statewide Political Action Committee (PAC) reviews the state budget and determines the priorities that CSEA must fight for. These issues are brought to region, local and unit PACs as well. Letters, information and lobbying materials are sent to the PALs (Political Action Liaisons) so that each of the 212 state legislators hear CSEA's issues in the district.

Lobby days, rallies and press events are planned in Albany and across the state. CSEA officers testify at public hearings and CSEA members join with AFSCME and the AFL-CIO to use our collective labor power. The PAC works with the PEOPLE committee and other CSEA committees to coordinate these activities.

Even with these large numbers, the key to success is the participation of individual CSEA members. It is CSEA members who live, work and vote in the districts that provide the real power. 2006

FINAL BUDGET AGREEMENT

This was another long budget year that resulted in a 2 way legislative budget agreement in April, however, the Governor line item vetoed much of this agreement and an override battle and threats of court challenges followed. This delayed a final budget agreement until June.

The Governor introduced a budget that slashed health care, attacked our pensions and severely shortchanged public education. CSEA members were directly affected by all of these cuts. Protecting public hospitals and nursing homes, and defeating a proposed new Tier 5, quickly became CSEA's top budget issues. Defeating a major expansion of charter schools and a private school voucher scheme were priorities as well.

The following is a breakdown of CSEA's major budget issues as agreed to by the legislature and the actions the legislature took on the Governor's proposals:

·         PUBLIC NURSING HOMES

Public nursing homes serve those most in need of long- term health care but who lack health insurance to pay for it. CSEA represents thousands of employees in these facilities. Because the federal government caps Medicaid grants for public nursing homes, and due to dramatic cost increases in health care, these facilities have faced closure, service cuts, quality of care problems, layoffs and privatization.

CSEA led a major campaign to increase state funds for these vital health care facilities to protect the services they provide and the people that they serve. This will help to protect the jobs and benefits of CSEA members.

CSEA won direct state grants for public nursing

homes over 4 years as follows:

$ 5 million April 1, 2006 -March 31, 2007

$15 million April 1, 2007 -March 31, 2008

$ 35 million April 1, 2008 -March 31, 2009

$100 million April 1, 2009 -March 31, 2010

And each year thereafter.

·         NURSING HOME REBASING /PUBLIC NURSING GRANTS FOR UPPER PAYMENT LIMIT

To address the long-term funding crisis the legislature created a 4-year rebasing plan to update reimbursement rates for public nursing homes. This will provide 50% of what public nursing homes would have been entitled to under the new formula if the federal government did not cap the reimbursement rates for public nursing homes.

·         HEALTH CARE BUDGET ISSUES

The legislature took the following actions on the Governor's proposal:

o        Rejected $233 million in nursing home cuts proposed by the Governor. These were targeted at public nursing homes and would have forced more closures, privatization and service cuts.

o        Rejected $133 million in cuts 10 hospitals proposed by the Governor. These cuts were targeted at public hospitals and would have forced service and staffing cuts where CSEA members work.

o        Approved a 2.5 % COLA for voluntary agencies in various programs licensed by DOH, OMH, OMRDD, OASAS and OCFS. CSEA is actively organizing new members in many of these facilities and this will help raise the salaries of those employees.

DEFEATED IN STATE BUDGET NEW TIER 5

In response to continued attacks on the state pension system by county executives, mayors and the press, the Governor made several budget proposals to roll back the pension of public employees. CSEA lobbied heavily against these proposals and defeated them. However, many newspapers continue to blame high property taxes on pension increases and calls for a new Tier 5 and reduced pension benefits will continue.

o        Rejected creating a pension task force to study creating a new Tier 5.

o        Rejected creating a new defined contribution plan for newly hired technology employees.

o        Rejected the Governor's early retirement proposal, which allowed management to pick and choose which employees were eligible, contained steep penalties and severely restricted the refilling of vacant positions.

These proposals would have set the stage for creation of a new tier with higher employee contributions and lower benefits for all public employees. This issue will remain a priority for CSEA over the coming months and CSEA will oppose any attempt to dismantle the public pension system.

AID TO LOCAL GOVERNMENTS  

State aid to local governments helps keep property taxes down and pays for most county and local programs such as Medicaid, law enforcement, county and local jails, transportation and others. It is critical for CSEA to make sure that fair levels of state aid are available to protect the services CSEA members provide in local governments and their contracts.

The legislature:

·         Approved more than $77 million in increases over the Governor's proposal for cities outside of New York City (average 24.11 % increase) and $17 million increase over the Governor's proposal for towns and villages (nearly 20% average increase). This state aid will help local governments maintain the vital public services that CSEA members across the state provide and help with contract negotiations as well as keep property taxes down.

·         Rejected Governor's original Aid and Incentives for Municipalities (AIM) plan. This required local governments to cap their budgets, prohibited using state aid to negotiate contracts and encouraged local governments to reduce employee health insurance benefits and costs.

EDUCATION

CSEA represents nearly 40,000 employees in school districts and BOCES across the state and in SUNY, community colleges, the State Department of Education and other related agencies. Funding for schools and education programs support the academic, administrative, maintenance, school bus, cafeteria and many other services that CSEA members provide.

DEFEATED

Charter School Expansion

The legislature rejected the Governor's plan to increase the cap of 100 charter schools and create 150 new charter schools statewide and an unlimited number in New York City. Charter schools are operated by private employers but are funded with public money that is taken away from public schools. This cuts funding for the vast majority of students who are left in the public schools and forces property tax increases. CSEA will continue to oppose creating new charter schools until a more fair funding system is created and until they are proven successful.

School Districts

The legislature:

·         Approved $1.1 billion overall increase in state aid for school districts over last year, with $375 million for Sound Basic Education (6.9% increase).

·         Not finished - the Campaign for Fiscal Equity lawsuit, which requires the state to dramatically increase funding for New York City Schools. While the amount has not yet been agreed to, once finalized, the CFE lawsuit will require billions of additional state dollars to go to New York City.

HIGHER EDUCATION

The legislature:

·         Restored $83.65 million in Governor's TAP cuts and rejected limiting TAP to full time study.

·         Rejected $500 SUNY/CUNY tuition increase; differential campus increases and annual indexing of tuition increases based on inflation.

·         Approved increase in community college aid by $75.00 per full-time student.

·         Rejected privatization of SUNY hospitals.

DEFEATED

Privatizing Transportation  

The legislature rejected the Governor's proposal for "design/build contracts" and "public/private" partnerships. These two proposals would have set the stage for the sale of the Tapanzee Bridge. CSEA will adamantly oppose the sale or privatization of any of the state's highways, roadways or bridges.

OFFICE OF CHILDREN & FAMILY SERVICES

The legislature approved new language that requires the Office of Children and Family Services to provide 12-month notification prior to the significant reduction in services, transfer of operations to not-for-profits or staff reductions of public employees. This will help protect youth facilities from privatization and/or closure.

TAXES

The legislature approved a total tax cut plan that will cause $4.16 billion in lost state revenue over the next two years. This lost revenue will cause massive state deficits over the next several years.

School Tax Rebates

Beginning this year, all school property tax payers who are eligible for STAR or the enhanced STAR will be eligible for a new school property tax rebate to be issued by October 31st of each year. The amount of the rebate will vary depending on assessment rates, equalization rates and other factors. To get the rebate the tax must be paid on the primary residence and the taxpayer must not be delinquent on current school taxes. This rebate will cost the state almost 1 billion dollars per year.

Other Tax Issues Resolved in this Budget

·         Approved elimination of state 4% sales tax on clothing under $110.00.

·         Approved a new child tax credit of $330 per school age children (ages four to sixteen). This will cost the state $600 million in lost revenue.

·         Rejected the Governor's proposed tax credit for private tuition.

·         Rejected repeal of the estate tax on estates worth $1 million or more.

·         Rejected Governor's cigarette tax increase.