COVID-19: Is NY State Broke?

Governor Andrew M. Cuomo today signed the FY 2021 Enacted Budget. 

“The budget was difficult because the state has no money,” Cuomo said Friday.

A $177 billion state budget passed by New York lawmakers Friday leaves leeway for spending cuts of as much as $10 billion as the full financial toll of the coronavirus outbreak becomes more clear.

Governor Cuomo: "I understand we're all consumed with the coronavirus situation but we have to be able to walk and chew gum. We have to move forward at the same time and that's why passing the budget and these pieces of legislation were important. These issues are still important and child vaping, et cetera, surrogacy, these are major issues for people. And they passed last night and congratulations."

State budget passed last night, at 3:00 a.m.  

There were major policy initiatives: the nation's first domestic terrorism law. It improved bail reform. It addressed the child vaping scourge going across the nation. It banned fentanyl, a ban against repeat subway sex offenders, campaign finance reform, paid sick leave, middle class tax cut, very aggressive airport construction program and accessible renewable energy.

For more information on the state's budget, tune in to this Sunday's Represent NYC featuring State Comptroller Tom DiNapoli:

2021 BUDGET HIGHLIGHTS

Establishing Paid Sick Leave for Working New Yorkers: To further empower New York's workers and protect all consumers in the State, the FY 2021 Enacted Budget enacts a paid sick leave program for working New Yorkers. Businesses with five to 99 employees will provide their employees at least five days of job-protected paid sick leave per year and businesses with 100 employees or more will provide at least seven days of paid sick leave per year. Smaller businesses, with four or fewer employees, will guarantee five days of job-protected unpaid sick leave to their employees every year. Small businesses already providing paid sick leave will be able to so.

Legalizing Gestational Surrogacy in New York State: The FY 2021 Enacted Budget legalizes gestational surrogacy in New York State once and for all, helping LGBTQ couples and couples struggling with infertility. The legislation will also establish criteria for surrogacy contracts that provide the strongest protections in the nation for parents and surrogates, ensuring all parties provide informed consent at every step of the process, and will create a Surrogates' Bill of Rights, which would ensure the unfettered right of surrogates to make their own healthcare decisions, including whether to terminate or continue a pregnancy and that surrogates have access to comprehensive health insurance and independent legal counsel of their choosing, all paid for by the intended parents. The legislation included in the Budget will also create a streamlined process for establishing parenthood when one of the individuals is a non-biological parent, a process known as "second parent adoption."

Passing the "New York Hate Crime Anti-Terrorism Act":  The FY 20201 Budget establishes a "domestic act of terrorism motivated by hate" crime as a new A-1 class felony punishable by up to life in prison without parole.

Closing the Out-of-State Gun Loophole: The FY 2021 Enacted Budget includes legislation to prohibit individuals from obtaining a gun license who commit serious offenses out-of-state that would disqualify them from obtaining a gun license if committed in New York. This will provide greater consistency in New York's licensing scheme and ensure individuals who are prohibited from purchasing a firearm are not able to do so. The Enacted Budget also includes legislation to require all state and local law enforcement agencies in the state to opt in to the ATF's crime gun trace data sharing program and submit crime guns recovered through the ATF's eTrace system. Additionally, the Enacted Budget includes legislation to amend the Mental Hygiene Law to allow New York to share reports of individuals who are a danger to themselves or others with other states.

Housing and Services for People who are Homeless, Including Those with Mental Illness: New York's homeless community and those with mental illness are among the hardest populations to help. The FY 2021 Enacted Budget includes an aggressive strategy and additional support to provide housing and services to these vulnerable populations.

Enact a Comprehensive Tobacco Control Policy. Governor Cuomo has taken unprecedented steps to ensure the health and safety of all New Yorkers by combating the use of harmful tobacco and nicotine products. The Enacted Budget prohibits the sale or distribution of e-cigarettes or vapor products that have a characterizing flavor unless approved as part of an FDA pre-market approval; prohibits the sale of tobacco products, including e-cigarettes, in all pharmacies; restricts the delivery of e-liquid products only to NYS-licensed vapor retailers; restricts the public display of tobacco and vapor products near schools; requires manufacturers of vapor products to disclose to the DOH Commissioner and the public, information regarding the ingredients, by-products, or contaminants in vapor products, whether intentional or unintentionally added; bans certain carrier oils if they are determined to be harmful; bans coupons and manufacturer discounts and displays in shops; and increases penalties for illegally selling tobacco products to minors.

Prescription Drugs: The FY 2021 Enacted Budget includes a three-part plan to lower prescription drug costs for all New Yorkers. The Budget caps insulin co-payments at $100 per month for insured patients to help address the rising cost of insulin that has resulted in diabetes patients rationing, skipping doses and not filling prescriptions. Finally, the Enacted Budget establishes a commission of experts to study the feasibility and benefits of a Canadian drug importation program and submit a plan to the U.S. Department of Health and Human Services for review.

Banning the "Pink Tax": The FY 2021 Enacted Budget prohibits gender-based pricing discrimination for substantially similar or like kind goods and services. The legislation would require certain service providers to provide price lists for standard services upon request and notice that gender-based price discrimination is prohibited under state law. Businesses that violate the law would be subject to civil penalties.

Authorized the Creation of a $3 Billion Restore Mother Nature Bond Act: The Budget authorizes the creation of a Bond Act to fund critical environmental restoration and climate mitigation projects in every corner of the state to ensure New York is able to adapt to the intensifying impacts of climate change, and reduce emissions, while creating jobs and local economic development. As part of the larger Restore Mother Nature Initiative, the Bond Act will be a key source of funding for projects focused on reducing flood risk, investing in resilient infrastructure, restoring freshwater and tidal wetlands, preserving open space, conserving forest areas, and reducing pollution from agricultural and storm water runoff. It will also fund up to $700 million in projects to fight climate change, including green buildings. It also aims to spend 35 percent of the funds on projects to benefit underserved areas of the state. The Budget Director will assess the state's finances and the economic outlook later this year and make a determination as to whether to move forward with the Bond Act. 

Continuing Middle Class Tax Cuts: This year's Enacted Budget continues to lower Personal Income Tax rates for middle-class New Yorkers. In 2020, the third year of the multi-year tax cuts enacted in 2016, income tax rates have been lowered from 6.85 percent to 6.09 percent for taxpayers in the $43,000-$161,550 income bracket, and to 6.41 percent in the $161,550-$323,200 income bracket. These cuts are expected to save 4.7 million New Yorkers over $1.8 billion this year. Furthermore, income tax rates will continue to drop to 5.5 percent for taxpayers in the $27,900-$161,550 tax bracket and 6 percent in the $161,550-$323,200 bracket. When the cuts are fully phased in, middle class taxpayers will have received an income tax rate cut up to 20 percent, amounting to a projected $4.2 billion in annual savings for six million filers by 2025. As the new rates phase in, they will be the State's lowest middle-class tax rates in more than 70 years. 

Addressing Veteran and Law Enforcement Suicides: The FY 2021 Enacted Budget invests $1 million to partner with organizations to help veterans, law enforcement and first responders with suicide prevention efforts. The Budget also directs state agencies to expand suicide prevention strategies for veterans, law enforcement, correctional officers and first responders, including a new campaign by the Office of Mental Health to reduce the stigma of mental illness. Additionally, the State will convene a panel of stakeholders and experts at its annual Suicide Prevention Conference to develop and implement strategies for preventing suicide among these special populations.