Governor Andrew M. Cuomo outlined the FY 2022 Executive Budget to reimagine, rebuild and renew New York in the wake of the ongoing COVID-19 pandemic.
The Governor presented two budget options, depending on the level of funding the federal government provides to New York following the devastating economic impact of Washington's failed COVID-19 response. The first option would support New York State's ongoing war against the pandemic and aggressive post-COVID reconstruction plan. The second option - absent $15 billion in federal funding - would cause pain for New Yorkers by forcing the state to raise revenue, cut expenses and borrow. It's a $193-billion roadmap for the next fiscal year, beginning April 1.
- Outlines Two Budget Options: One that Advances Aggressive Post-COVID Reconstruction, One that Causes Pain for NY if Feds Fail to Provide $15 Billion
- Path Taken Depends on Level of Federal Funding after Devastating Economic Impact of Washington's SALT Attack Compounded by Failed COVID Response
- With Adequate Federal Support, State Can Advance Governor's Bold Vision to Reimagine, Rebuild & Renew NY:
- $306 Billion Infrastructure Plan - Largest in Nation
- $29 Billion in Private and Public Green Economy Investments
- $1.3 Billion Rent Relief Program, $20 Billion to Create or Preserve 100,000 Affordable Homes, $128 Million for Homeless Housing & Assistance
- $15 Cap on Broadband for Low-Income Families, $150 Million to Address Food Insecurity, $10 million for Liberty Defense Fund
- $130 Million Pandemic Recovery & Restoration Program Supporting Highly-Impacted Small Businesses, Restaurant, Arts & Entertainment Industries
- $40 Million Infectious Disease Resiliency Commercialization Fund to Fast-track Innovations & Address Emerging Health Threats - Establish Public Health Corp
President Joe Biden’s proposed $1.9 trillion “American Rescue Package” includes $350 billion for state and local funding, Cuomo said. But he threatened to sue the Biden administration if New York does not receive $15 billion in federal aid.
The Governor also reiterated his call on federal partners to repeal the harmful State and Local Tax policy - or SALT cap- that cost New Yorkers over $30 billion over the last three years and amounted to the first double taxation in history. The average cost of SALT cap to New York households is $2,600 per home.
If the federal government provides New York with the $15 billion fair share, the State will be able to:
- Advance a $306 billion infrastructure plan - the largest in the nation - and $29 billion in green economy investments.
- Enact a $1.3 billion rent relief program, fund $20 billion program to create or preserve 100,000 affordable homes, and provide $128 million for homeless housing and assistance.
- Institute a $15 cap on broadband for low-income families, provide $150 million to address food insecurity, and continue the $10 million investment in the Liberty Defense Fund to provide free legal consultations and screenings to help undocumented New Yorkers.
- Create a $130 million Pandemic Recovery and Restoration Program to support small businesses as well as restaurant, arts and entertainment industries that were hurt by COVID.
- Establish a $40 million Infectious Disease Resiliency Commercialization Fund to fast-track innovations and address emerging health threats.
- Create a public health corps that will assist in supporting COVID-19 vaccination operations, establishing a best-in-the-nation emergency response public health capacity.
"The story of COVID has many chapters - we launched the battle last year and now we must not only finish it, but begin an aggressive post-COVID reconstruction," Governor Cuomo said. "We are in a different time and a different world than just one year ago and we shouldn't be surprised that this budget will look different. We have a plan in place, a strength that we have not had before and I believe our future is bright, but Washington must act fairly if we are to emerge on the other side of this crisis. Despite the federal irresponsibility, which allowed COVID to ambush our state, New Yorkers are ready to begin rebuilding, but for that to happen, we need SALT repealed and $15 billion in rightfully deserved federal aid - and we need it now. After years of federal hostility, I believe the stars are lined up for that to change - we just need to do it. We built the greatest state once before and I know that we will do it again."
2022 REIMAGINE | REBUILD | RENEW ENACTED BUDGET HIGHLIGHTS
Fiscal Highlights of the 2022 Executive Budget, assuming $15 billion in federal aid:
Defeating COVID and Strengthening Health Care Delivery
Telehealth: The COVID -19 pandemic has transformed the healthcare delivery system, as methods for accessing care have expanded. Accordingly, the State is advancing a comprehensive package of telehealth reforms that will lower costs, enhance care for vulnerable populations, and increase access to telehealth services by Increasing Access to Services through Comprehensive Regulatory Reform and Promoting Innovative Technologies and Approaches by increasing training and education opportunities, establishing a pilot program to facilitate telehealth for vulnerable populations, requiring insurers to offer e-Triage and Virtual Emergency Department, and allowing insurers to satisfy contractual care management requirements by utilizing emerging telehealth solutions that enhance care management efforts and integrated multi-disciplinary teams.
Expanding Nation-Leading COVID-19 Diagnostic Capacity: The Executive Budget will continue to support the expansion of the State's world-leading testing program, currently able to perform over 200,000 COVID-19 tests on a daily basis to identify disease and mitigate community spread.
Launch a New York State Infectious Diseases Resiliency Commercialization Fund: As part of Governor Cuomo's Life Science Initiative, Empire State Development will create a new $40 million New York State Infectious Diseases Resiliency Commercialization Fund led by Empire State Development and advised by the New York State Department of Health and other private experts to capitalize on New York's substantial research and development assets and expertise in life sciences, biotechnology and biodefense.
Continue COVID Response and Implementation of Vaccine Distribution: The Executive Budget will support the implementation of a statewide COVID-19 vaccination program that will be available to all New Yorkers within the year, ensuring a fair and equitable distribution to vulnerable and underserved communities within all regions of the state. The vaccine program will cover nearly 20 million residents at no cost, driving New York towards becoming the nation's first COVID-safe state and accelerating the State's re-opening effort.
Create the New York Public Health Corps: The New York Public Health Corps will assist in supporting COVID-19 vaccination operations and establishing a best-in-the-nation emergency response public health capacity that lasts beyond the COVID-19 pandemic. These fellows will include students in undergraduate and graduate public health programs, nursing schools and medical and pharmaceutical schools, recent graduates, retired medical professionals, volunteer first responders, and other New Yorkers who will receive an intensive public health training curriculum developed by Cornell University. After the COVID vaccination program is completed, New York will build on this Public Health Corps model by continuing to recruit and train public health professionals to be available and prepared to serve the State in any future crisis.
Assist Workers in Getting Vaccinated: To protect workers and those returning to work, improve public health, and help the State's economic recovery, public and private employers would be required to provide four hours of paid leave for up to two COVID-19 vaccinations for each employee.
$100 million to Eliminate Co-Payments for Low-Income New Yorkers: The COVID-19 pandemic showcased the persistent, staggering healthcare disparities in this country and in New York State. Blacks, Latinos, Asians and poor communities paid the highest price for COVID-19. Higher rates of underlying conditions were a major driver of these disparities. Increasing access to affordable healthcare will help address these disparities and help ensure that New York emerges from the pandemic stronger and more equitable.
Create the New Office of Addiction and Mental Health Services: In a continuation of previous efforts to coordinate and align services for individuals with addiction and mental illness, the Executive Budget integrates the Office of Addiction Services and Supports and the Office of Mental Health to create a new agency: the Office of Addiction and Mental Health Services.
Integrated Licensing: The Executive Budget authorizes the Department of Health, Office of Addiction Services and Supports, and the Office of Mental Health to establish a single, integrated license for outpatient mental health, addiction, and physical health services.
Jumpstarting New York's Economic Recovery
Enact the Pandemic Recovery and Restart Program: In order to help jumpstart New York's economy, New York will establish three new tax credits and expand another totaling $130 million to help smaller businesses in the accommodation, arts and entertainment, restaurant and musical and theatrical production industries to recover from the pandemic and bring back jobs to New York.
- Small Business Return-To-Work Tax Credit: This provides up to $50 million in tax credits to support small businesses in highly impacted sectors in the hiring of additional workers through 2021. (see more below)
- Restaurant Return-To-Work Tax Credit: This tax credit provides up to $50 million in tax credits to support restaurants hard hit by the pandemic through 2021.
- Extend and Enhance the Musical and Theatrical Production Credit for Four Years: This tax credit provides up to $25 million in tax credits for the jump start of the industry and the support of tourism activity in the City. In order to support musical and theatrical productions that occur in the State but outside of New York City, the Budget extends this credit for four years through 2025 and doubles it to $8 million.
Educate and Train Workers for In-Demand Jobs: Under Governor Cuomo's leadership, New York State has connected an unprecedented number of workers to jobs, and New York's colleges and universities have served a vital role in this effort. Workforce development must be flexible and respond nimbly to a rapidly changing environment and the COVID-related recession has magnified the need for flexibility.
Advance the Economic Recovery through Workforce Development: The Executive Budget enacts a COVID-19 Recovery Workforce Initiative, which invests $50 million for training in high-growth industries, employer-driven training for low-income workers, and funding for small businesses to re-train and hire furloughed, laid-off, or new employees. The investments will provide durable skills that lead to high-quality jobs and support the growth of small businesses recovering from COVID-19 impacts.
Legalization of Adult-Use Cannabis: The Executive Budget legalizes cannabis for adult use. Legalization will not only ensure public health and safety, but provide an opportunity for the State to generate more than $300 million in tax revenue. Beginning in FY 2023 revenues shall be first distributed to the Cannabis Social Equity Fund in the amount of $100 million over four years and $50 million annually thereafter. These monies will be used to support individuals and communities that have been the most harmed by decades of cannabis prohibition.
Support the Unemployed and Protect Workers: Since the beginning of the pandemic, the Department of Labor has paid out more than $61 billion in benefits to over 4 million New Yorkers - nearly 29 typical years' worth of benefits.
Continued Investment in Tourism: The COVID-19 pandemic caused a precipitous drop in travel, hitting New York's tourism industry particularly hard. As New York State advances its scientific-based reopening efforts, the Budget includes additional funding to attract visitors from around the world and boost the tourism economy. The program includes a ninth round of $15 million in competitive funding through the Market NY initiative to support marketing projects that promote regional attractions.
Another Round of Regional Economic Development Councils: The Executive Budget includes core capital and tax-credit funding that will be combined with a wide range of existing agency programs for REDC awards totaling $750 million and will target assistance to impacted industries and allow for job creating and retention.
Expand Opportunities for New York's MWBE Program: Governor Cuomo has been a champion of the Minority and Women Owned Business Enterprises (MWBE). In 2014, he set the utilization goal in State contracting at 30 percent to ensure all New Yorkers have the opportunity to take part in New York State's growing economy. New York State now has the highest MWBE contract participation in the nation. In fact, state contract spending with MWBE firms has grown from less than $100 million in 2010 to $3.14 billion as MWBE in FY 2020.
New York Works Economic Development Fund: A sixth round of investment equaling $220 million for the New York Works Economic Development Fund will provide additional statewide capital grants to support projects that facilitate the creation of new jobs or retain existing jobs, or fund infrastructure investments necessary to attract new businesses or expand existing businesses in support of economic recovery
Downtown Revitalization: The pandemic has kept New Yorkers at home to save lives, disrupting the flow of commerce in the downtown communities across the State. These areas need support now more than ever. To that end, the FY 2022 Budget provides $100 million for another round of the Downtown Revitalization Initiative, which has been transforming downtown neighborhoods into vibrant communities where the next generation of New Yorkers will want to live, work and raise families.
Transportation and Infrastructure
$306 Billion Infrastructure Plan: New York's $306 billion infrastructure plan includes the Governor's $206 billion 2020-24 plan and his $100 billion 2015-2019 plan.
Transformational Midtown West Macro Development:
- Empire Station Complex: As part of the Transformational Midtown West Development and with the completion of the Moynihan Train Hall, the State will turn to the existing Penn Station, launching a comprehensive $16 billion project to expand and reconstruct the existing station. The fully renovated Penn Station, including the iconic new Long Island Rail Road entrance on 7th Avenue that opened on December 31, 2020, will comprise a widened and completely reconstructed 33rd Street LIRR concourse and an expanded and completely transformed station.
- High Line Extension to Moynihan Station: As part of the Transformational Midtown West Development, the Budget includes funding to support the Governor's proposal to extend the High Line in Manhattan to give pedestrians seamless access to the elevated pathway from the recently opened Moynihan Train Hall.
First-in-the-Nation Affordable Internet for All Low-Income Families: When the COVID-19 virus first came to New York and then quickly began to spread throughout our communities, students and adults alike had to adapt to remote learning and remote work to keep each other safe. Immediately, it became clear that universal broadband was a prerequisite for success in a remote world. Currently, a basic high-speed internet plan costs, on average, more than $50 a month. The Executive Budget includes first-in-the-nation legislation requiring internet service providers to offer an affordable $15 per month high speed internet plan to all low-income households. The State will also require providers to advertise this plan to ensure programs reach underserved populations across the State. To further bridge the gap, the State will partner with Schmidt Futures and the Ford Foundation to launch a new hardship fund to pay for internet subscriptions for our most in need students who cannot afford $15 per month during this crisis.
After nearly $500 million dollars invested to expand broadband internet to 98 percent of the state, New York will also lead the nation in making broadband affordable. Without affordable broadband, people are not only disconnected, they are disenfranchised. The Reimagine New York Commission reported to the Governor that high-quality, affordable broadband must be available to everyone and in New York we will make sure it is.
Making New York a Leader in the Green Energy Economy
Under Governor Cuomo's leadership, New York will embark on an ambitious Green Energy program that will spur more than $29 billion in public and private investment across the state and create 12,400 megawatts of green energy - enough to power 6 million homes. These investments will not only shift the state to a carbon neutral economy, fulfilling the goals of New York's Climate Leadership and Community Protection Act, but also spur the COVID economic recovery. Projects include:
- Largest Offshore Wind Program in the Nation
- Global Wind Energy Manufacturing Powerhouse
- Construct New York's Green Energy Transmission Superhighway
- Public-Private Partnership to Build Nearly 100 Renewable Energy Projects
- Support Electric Buses
Addressing Systemic Injustices
Streamlining and Enhancing Work to Address Domestic and Gender-Based Violence: Throughout the pandemic, there has been a stark increase in instances of domestic and gender-based violence, not only in New York, but throughout the nation. To address this, the Governor will build off past progress and implement new initiatives to stamp out this despicable behavior, including:
- Establishing a Domestic Violence Misdemeanor Label: As part of the Executive Budget, the Governor will be establishing a domestic violence misdemeanor ensuring these crimes will be added to a list of those disqualifying an individual from owning a firearm.
- The Office to End Domestic and Gender Based Violence: New York is proud to be the only State with an executive-level agency dedicated to the issue of domestic violence. The Office for the Prevention of Domestic Violence will transform into the Office to End Domestic and Gender Based Violence aimed at bringing together multiple efforts to address gender-based violence and create the first agency addressing gender-based violence in the nation. The new office will encourage collaboration among agencies and service providers, eliminate redundant processes, and simplify survivor interactions with the State.
- Require Abusers to Pay Survivor Housing Costs: The Executive Budget includes legislation allowing courts to require abusers to pay for damages to housing units, moving expenses and other housing costs when related to a domestic violence incident.
Facilitating the Creation of Statewide Childcare Options: The COVID-19 pandemic highlighted how a lack of access to affordable childcare can disrupt low-income families and force caregivers, primarily women, to choose between putting food on the table and caring for their children. While affordability serves as a barrier to families securing child care, there is also a lack of general accessibility of child care programs, as well as insufficient high quality provider capacity across the state which can inhibit families from accessing child care.
To make child care more affordable and equitable for our most vulnerable children and their parents, the Executive Budget includes efforts to:
- Strengthen Child Care Programs
- Enact Employer Child Care Credits
- Improve Child Care Affordability
Strengthen Hiring Standards for Police Officers: The Executive Budget includes legislation requiring all law enforcement agencies to comply with background check standards that include a criminal history check, a mental health exam, prior employer disclosure, review of the police registry for permanent decertification, and disclosure of previous misconduct.
Require Accreditation of Departments for Background Checks: The Executive Budget includes legislation requiring law enforcement agencies to become accredited for the purpose of standardizing background checks to ensure that only those most qualified can serve as a law enforcement officer.
Establish Decertification Standards for Police Officers: The Executive Budget includes legislation to create a more robust accountability mechanism to ensure no bad actors may serve as police officers by clearly defining conduct that results in permanent decertification, mandating reporting of misconduct, and requiring information sharing of serious misconduct by officers.
Fund Body Worn Cameras: The Executive Budget includes funding to support recently passed legislation requiring all State Police Officers on patrol to wear body cameras.
Liberty Defense Fund: This year, Governor Cuomo will continue to support the Liberty Defense Project to keep fighting for immigrants seeking a better life for themselves and their families. The Executive Budget authorizes $10 million for the Liberty Defense Fund to provide free legal consultations and screenings to help undocumented New Yorkers.
Support Raise the Age Implementation: The Executive Budget includes a $250 million appropriation to support continued implementation of the Raise the Age initiative.
Ensure Human Rights Protections for all New Yorkers: The Executive Budget supports the expansion of the Equal Rights Amendment in the State Constitution to permanently codify rights that reflect New York's commitment to equality. Legislation submitted with the Budget also adds citizenship and immigration status as protected classes under the Human Rights Law, and extends anti-discrimination provisions to for-profit schools to better protect against discrimination, harassment, and bullying in such institutions.
Tackling Food Insecurities: The Budget includes $150 million to tackle food insecurity, and adds $25 million to Nourish New York for a total $60 million investment. This critical program helps people who are food insecure to access the nourishment that they need, while providing a market for farmers to sell their products.
$31.7 Billion in Support to School Districts: The Executive Budget provides $31.7 Billion in funding for school districts through School Aid, STAR, and extraordinary federal funds, to support operational costs of school districts that educate 2.6 million students statewide. Approximately 70 percent of these funds are targeted to high-need school districts.
Allocate $4.3 Billion in Federal Supplemental Funds: Given the extraordinary strain that the pandemic as places on school districts, educators and students, the Executive Budget allocates funds to schools to support ongoing operational and pandemic-related costs.
Authorize Aid for Pandemic-Related School District Transportation Costs: Under the Executive Budget, school districts will be reimbursed school districts for the cost of delivering school meals and instructional materials during pandemic-related school closures in spring 2020.
Consolidate $3.7 Billion in Expense-Based Aids: The Executive Budget establishes a block grant program from existing expense-based aids so that future funding increases can be allocated more progressively through Foundation Aid.
Ensure Fair and Safe Housing
Affordable and Homeless Housing Capital Plan: The Executive Budget continues the $20 billion, comprehensive five-year investment to create or preserve over 100,000 units of affordable housing and create 6,000 new units of supportive housing. The State is well on track toward meeting affordable housing goals and has already exceeded the supportive housing. To date, New York has financed the new construction and preservation of more than 66,500 affordable housing units and more than 7,000 units of supportive housing units that provide stability for some of the state's most vulnerable populations, including veterans, victims of domestic violence, frail or disabled senior citizens, young adults aging out of foster care, and New Yorkers identified as homeless with special needs, conditions, or other life challenges. With this success, the Governor has continued the State's commitment to supportive housing. The goal is now to create 20,000 units over 15 years, and the Budget includes $250 million in additional capital funding to continue making progress in FY 2022.
Support New Homeless Housing: The Executive Budget continues $128 million for the Homeless Housing and Assistance Program, a level achieved when funding for the program was doubled in FY 2021. This investment will create more housing for individuals and families who are homeless and unable to secure adequate housing without special assistance.
Protect Renters: The Executive Budget advances the emergency rental assistance program supported by Federal funds. The program will support households in rental arrears that have experienced financial hardship, are at risk of homelessness or housing instability, and that earn less than eighty percent of area median income. The program would prioritize the unemployed and those with the lowest incomes. The proposal ensures access to undocumented New Yorkers and may include the creation of a hardship fund. In addition to using the $800 million provided directly to the State the program would be structured to enable coordinated efforts between the State and the local governments that opted to receive funds directly - leveraging the full $1.3 billion directed to New York and other resources, gaining efficiencies, and preventing fraud.
Improve Office of Mental Health Housing Services: The Budget continues the $20 million investment from FY 2021 to support existing residential programs, a part of the cumulative increase of $70 million annually since FY 2015. In addition, $60 million in capital funding will preserve community-based housing that allows people to live in the most integrated setting possible.
The Executive Budget provides $7.5 billion in funding for higher education in New York, not including tuition - a $1.5 billion increase since FY 2012.
Preserving Support for Students Most In Need: The Executive Budget ensures access to an affordable college education in the face of economic challenges caused by the pandemic by preserving student financial aid and opportunity programs for our neediest students. The FY 2022 Executive Budget maintains full support for over $1 billion in HESC financial aid programs, including TAP and the Excelsior Scholarship, as well as over $200 million in funding for higher education opportunity programs and training centers. The Budget extends financial aid award duration limits for those students who, because of the pandemic, were unable to maintain satisfactory academic progress due to illness, course closure, or other special circumstances.
Extend a Predictable Funding Plan for SUNY and CUNY: In 2011, the Governor enacted a plan for predictable tuition increases for CUNY and SUNY, putting an end to surprise increases in student's bills. The Executive Budget extends this predictable funding plan for CUNY and SUNY that will continue to protect students from tuition spikes and provide our public colleges with additional resources to invest in college affordability and student success. This plan limits increases in the resident tuition rate at SUNY and CUNY to no more than $200 a year through AY 2025. The revenue generated from any tuition increase will be reinvested to support faculty, instruction, initiatives to improve student success and completion, and tuition credits for TAP-eligible students.