"In the face of unprecedented challenges on a national level and a federal government at a complete standstill, New York will deliver on the most productive agenda in our history and build on our record of accomplishments," Governor Cuomo said. "This is a true Justice Agenda that ensures our neediest schools receive an equitable share of funds, advances historic criminal justice reform, safeguards our health care, protects the rights of women in our state from the federal government, and leads the nation in fight against climate change and contaminants in our environment and our water. While extreme conservatives in Washington govern by division and fuel dysfunction, New York State will raise the beacon of progress and take action to make a real difference in people's lives."
FY 2020 Executive Budget:
- The FY 2020 Executive Budget is $175.2 billion on an All Funds basis.
- State Operating Funds is $102.0 billion, growth of 1.9%
- Health and Education spending grows at 3.6%, Executive Agencies at 0.8%.
ECONOMIC JUSTICE
Continue the Phase-In of Middle Class Tax Cuts: The Budget supports the phase-in of the middle class tax cuts. Under these reforms, rates will continue to drop to 5.5 percent and 6 percent when the cuts are fully phased in - an up to 20 percent cut in income tax rates for the middle class - and produce 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.
Extend the Millionaire's Tax: To protect the progress that has been made in enhancing progressivity and ensuring tax fairness for New York's middle-class, Governor Cuomo is proposing a five-year extension of the current tax rate on millionaires. This will preserve an estimated $4.4 billion annually otherwise unavailable to make vital investments in education and infrastructure to secure New York's future economic prosperity.
Make Permanent the Highly Successful Property Tax Cap: Governor Cuomo made a first-ever property tax cap a hallmark of his first campaign for Governor and a priority of his administration's first year. Since the implementation of the tax cap in 2012, growth has averaged approximately 2 percent and the tax cap has produced approximately $25 billion in taxpayers' savings. The Governor proposes that New York preserve and make permanent the property tax cap, as he has advocated in the past.
Close the Carried Interest Loophole: Because of an egregious loophole in federal law, some of the wealthiest people in the country, including hedge fund managers and private equity investors, are paying lower tax rates on their income than many middle class families. This "carried interest" loophole results in a substantial cost to middle-class New Yorkers, with the State losing about $100 million every year. To ensure that the wealthiest Americans are paying their fair share, Governor Cuomo will take a landmark step to close the carried interest loophole under New York State law and effectively eliminate the benefits of this loophole under the federal tax code.
Fight for the Full Deductibility of State and Local Taxes: Governor Cuomo fought the federal tax bill every step of the way while it was under consideration in Congress. After its passage, New York joined together with three other states to sue the federal government over this illegal and targeted assault. The Governor will continue to fight against this law and the threat that it poses to New York State, and he urges the new Democratic House of Representations stand together and demand that the SALT deduction is fully restored.
Continue Lawsuit Against Federal Government Challenging Unconstitutional Tax Law That Targets New York: Governor Cuomo and Attorney General Barbara D. Underwood filed a lawsuit to protect New York and its taxpayers from Washington's drastic curtailment of the SALT deduction. The lawsuit argues that the new SALT cap was enacted to target New York and similarly situated states, that it interferes with states' rights to make their own fiscal decisions, and that it will disproportionately harm taxpayers in these states. The Governor and Attorney General Letitia James will continue in their fight to overturn the law's unprecedented and unconstitutional limitations on SALT deductibility.
Building 21st Century Infrastructure
Invest an Additional $150 Billion in the Nation's Largest Infrastructure Program: Governor Cuomo has made an unprecedented commitment to invest $150 billion in infrastructure projects over the next five years. Beginning in FY 2020, these capital projects will rebuild transportation and mass transit systems, drive economic and community development, create new environmental and park facilities, and support our sustainable energy future.
Reduce Traffic Congestion in NYC and Fund the MTA: This year, the Governor will implement congestion pricing to establish a reliable funding stream to transform the transit system and reduce congestion in Manhattan. By charging fees for vehicles to move within the most congested area of New York City and then reinvesting those funds into transit improvements, this plan will combat gridlock and deliver to New York City's residents and visitors the world-class transit system they deserve.
Establish Accountability for the MTA: The MTA is a bureaucracy that lacks any accountability. The board of 17 members gives no single person a clear majority of nominees and there are 32 unions representing MTA employees that exert significant political power over the elected officials who appoint the board members. To overhaul this bureaucracy and fix the system, the Governor will work with the Legislature to establish clear authority over the MTA, while continuing to solve the need for dedicated funding and splitting capital funding shortfalls between New York City and New York State. Only with clearly designated authority and adequate funding can the MTA can be overhauled into the efficient and effective transit system that New Yorkers deserve.
Expand Design-Build and Enact Other Efficiencies to Expedite Construction Projects: Governor Cuomo's $100 billion infrastructure program is the nation's largest and boldest. Key to the program's success is the Governor's visionary decision to deploy the design-build method on complex projects, saving taxpayers time and money by making a single contractor responsible for both a project's design and its actual construction. To ensure efficiency across State projects, the Executive Budget includes legislation authorizing the use of state-of-the-art methods such as construction manager at-risk and construction manager-build, while expanding design-build to additional agencies.
Continuing New York's Bottom-Up Economic Development Strategy
Invest $750 million for Round Nine of the Regional Economic Development Councils: In 2011, Governor Cuomo established 10 Regional Economic Development Councils (REDCs) to develop long-term regional strategic economic development plans. Since then, the REDCs have awarded $6.1 billion to more than 7,300 projects. This strategy has resulted in 230,000 new or retained jobs in New York. The Executive Budget includes core capital and tax-credit funding that will be combined with a wide range of existing agency programs for a ninth round of REDC awards totaling $750 million.
Invest in Communities Across the State Through the Fourth Downtown Revitalization Initiative: The Downtown Revitalization Initiative is transforming downtown neighborhoods into vibrant communities where the next generation of New Yorkers will want to live, work and raise families. Participating communities are nominated by the State's ten REDCs based on the downtown's potential for transformation. Through three rounds of awards, each winning community was awarded $10 million to develop a downtown strategic investment plan and implement key catalytic projects that advance the community's vision for revitalization. The Executive Budget provides $100 million for the Downtown Revitalization Program Round IV.
Ensuring A Quality Education for All
Require Districts to Distribute State Aid in a More Equitable Manner to Their Neediest Schools: Although the state distributes 70 percent of its funding to the neediest districts, the districts do not always distribute funding to their schools in an equitable manner. In fact, some school districts have schools with significantly higher needs receiving less than the average school in the district. We must address this problem and therefore Governor Cuomo proposes to require that these school districts devote a portion of their 2019-20 school aid to increase the per-pupil allocation in those high-need schools. This increase in allocation will help ensure that funding intended to help improve educational outcomes for the neediest students reaches those students.
$1 Billion Education Aid Increase: State support for school districts will have increased by $8.1 billion (42 percent) since FY 2012. Over 70 percent of this year's increase goes to high-need school districts. Foundation Aid is increased by $338 million.
Expand Universal Pre-Kindergarten: The Budget includes an additional $15 million investment in pre-kindergarten to expand high-quality half-day and full-day prekindergarten instruction for three- and four-year-old children in high-need school districts.
Recruit 250 New Teachers in Shortage Areas through the We Teach NY Program: With the goals of diversifying and strengthening the teacher workforce pipeline, Governor Cuomo proposes to invest $3 million in the We Teach NY program, which will strategically recruit 250 new teachers to fill identified needed positions in New York classrooms in 2024.
Expand Master Teacher to High Poverty Schools to Increase Access to Advanced Courses: In 2013, Governor Cuomo launched the New York State Master Teacher Program to strengthen our nation's STEM education, giving selected educators an annual $15,000 stipend for four years, professional development opportunities and a platform to foster a supportive environment for the next generation of STEM teachers. In order to recruit and retain outstanding educators in the highest poverty schools, the Executive Budget will provide $1.5 million to support 100 new Master Teachers who teach in high-poverty schools with high rates of teacher turnover or high rates of relatively inexperienced teachers.
Protect Student Loan Borrowers: There are approximately 2.8 million student loan borrowers in New York that have tens of billions of dollars in outstanding student loan debt, which is serviced by about 30 student loan servicers. The Governor will advance sweeping protections for student loan borrowers by requiring that companies servicing student loans held by New Yorkers obtain a state license and meet standards consistent with the laws and regulations governing other significant lending products such as mortgages; banning upfront fees; requiring fair contracts and clear and conspicuous disclosures to borrowers; and providing penalties for failing to comply with the law.
Creating Economic Opportunity for Every New Yorker
Launch the $175 Million Workforce Initiative: Governor Cuomo will launch a new Consolidated Funding Application for workforce investments that will support strategic regional efforts that meet businesses' short-term workforce needs, improve regional talent pipelines, expand apprenticeships, and address the long-term needs of growing industries — with a particular focus on emerging fields with growing demand for jobs like clean energy, health technology, and computer science. These funds will also support efforts to improve the economic security of women, youth, and other populations that face significant barriers to career advancement.
Expand Employer-Driven Training Opportunities by Enhancing the Employee Training Incentive Program: Governor Cuomo proposes to expand the Employee Training Incentive Program to provide more training options to more industries by enabling employers with dedicated training shops to draw on in-house expertise in delivering approved training, and by extending ETIP tax credits to internship opportunities in additional high-tech industries.
Protect Workers from Union-Busting Activity by Codifying EO 183 into Law and Expanding its Protections to Local Governments: New York State has a long and distinguished history of standing by union workers. This year, Governor Cuomo will continue to advance his support for unions by introducing legislation that not only codifies EO 183 into law, but expands its protections to local governments to ensure that more union workers are protected.
Increase Criminal Penalties for Wage Theft: Governor Cuomo will advance legislation to increase criminal penalties for employers who knowingly or intentionally commit wage theft violations to more closely align with other forms of theft.
Ensuring Access to Affordable Housing
Enact Historic Legislation to Strengthen Rent Regulation: This year, the Governor proposes aggressive rent regulation reforms, including ending vacancy decontrol, repealing preferential rent, and limiting building and apartment improvement charges. These changes will preserve the rent regulated housing stock, strengthen tenants' rights to affordable housing, and ensure New Yorkers safe, quality affordable housing.
Limit Security Deposits to Reduce Housing Barriers: Governor Cuomo will propose legislation to limit security deposits to a maximum of one month's rent across New York State, making New York's security deposit limits among the strongest in the nation This law will serve to ensure that burdensome security deposits will no longer serve as a barrier to entry for anyone trying to find a new place to live.
Help Families Build Credit and Holistically Evaluate Credit Scores: In New York State, most landlords conduct background credit checks on potential tenants, which often leads to rejecting applicants with low credit scores or an insufficient credit history. To ensure all New Yorkers have a fair shot of accessing affordable, quality housing, Governor Cuomo will issue regulations prohibiting state-funded housing operators from automatically turning away applicants with poor credit or histories of bankruptcy. Instead, the State will require that all potential tenants and homeowners be holistically evaluated to determine the circumstances behind their credit history and their ability to pay rent on a forward-looking basis.
Enact Source of Income Protections to Support Fair Housing for All: In certain parts of New York State, landlords can reject applicants based on their lawful source of income, disproportionately impacting households that rely on non-wage income or income assistance and those who use vouchers to obtain housing for their families. The Governor will work with the legislature to amend the New York State Human Rights Law to prohibit discrimination based on lawful source of income statewide to ensure that such lawful income is not a blanket barrier to housing, reducing financial instability for New York's most economically vulnerable individuals.
Combating Poverty
Support ESPRI Communities and Establish ESPRI Representation on REDC Workforce Development Committees: In 2016, Governor Cuomo created the Empire State Poverty Reduction Initiative (ESPRI) to combat poverty and reduce inequality. ESPRI is an important component of the Governor's anti-poverty agenda, and this year Governor Cuomo proposes to build on the success of these State and local partnerships to address poverty, supporting more community-based efforts through continued funding of ESPRI. Governor Cuomo will also continue to support efforts by the REDCs and the economic development community to broaden and deepen their commitments to local anti-poverty efforts and he will ensure an ESPRI representative is included on each region's Workforce Development Committee and involved in the review process for the Governor's new Workforce Development Initiative.
Reduce Hunger and Food Insecurity: Building on historic investments to combat food insecurity, Governor Cuomo will establish a goal to reduce household food insecurity in New York State by 10 percent by 2024. In order to achieve this goal, Governor Cuomo is directing the following actions: create a food and anti-hunger policy coordinator; simplify access to SNAP for older and disabled adults; enhanced resources and referrals in clinical settings; participate in SNAP online purchasing pilot; and expand food access in Central Brooklyn.
Supporting the Rural and Agricultural Economy
Continue the Revitalization of the Great New York State Fairgrounds: The State Fair drives $100 million a year in economic activity in Central New York and thousands of jobs. Under Governor Cuomo's leadership, New York State has invested more than $120 million dollars in two phases over the last three years to remake the New York State Fairgrounds. To continue the transformation of the State Fairgrounds, the State will make additional renovations and upgrades to enhance user experience. The Governor's commitment continues to make the fairgrounds a year-round destination.
Fund Key Programs to Support New York's Farmers: The agricultural industry is full of variability and uncertainty. As a reflection of the Governor's resolve to support New York's farmers, this year's Executive Budget will continue funding the specialized technical assistance, industry promotion, and research investments statewide to reduce farms' exposure to economic and climate inconsistency.
