TO: Executive Board Members and Statewide Labor/Management Chairs

FROM: Martin O’Connor, Susan Mitnick and Stephen Connolly

DATE: March 23, 2001

This week the Assembly and Senate passed one-house budget resolutions. These resolutions set, in very broad terms, the Assembly and Senate Majority positions on the SFY 2001-02 budget. This is the first legislative action in the budget process. The next step is for the Conference Committees to meet to resolve the differences between the changes each house has made to the Executive Budget. At this point we do not know when those meetings will begin. The major impediment to the Conference Committees meeting is the lack of consensus on available revenues. The Senate projects revenues for SFY 2001-02 to exceed the Governor’s projections by $1.2 billion. The Assembly’s projection is $2.1 billion more than the Governor projected. Until there is agreement on available funds it is unlikely the Conference Committees will meet.

The Senate Budget Resolution increases General Fund spending by $516 million over the proposed Executive Budget. (Note: The additions made by the Senate are made as appropriations. Appropriations differ from actual spending because an appropriation merely sets a limit on how much money is available for spending. There is no requirement to spend the entire appropriated amount.) The increase of $516 million is achieved by offsetting increased spending of $938 million with reductions of $422 million. The bulk of the increased spending is for Education ($385 million), Health/Medicaid ($210 million) and Member Items ($170 million). The reductions are Spending Re-estimates ($262 million) and Spending Reductions ($160 million). The Senate also includes an additional $134 million in tax cuts above the $1.8 billion included in the Executive Budget. Most of these tax cuts will be in the form of an expanded Empire Zone program and reductions in energy taxes. When fully implemented the Senate’s tax cuts will reduce revenues by $1.7 billion. This exceeds the governor’s plan by $1.2 billion.

The Assembly Budget Resolution increases General Fund spending by $1.42 billion over the proposed Executive Budget. The Assembly claims that "Sixty percent of the Assembly’s budget resolution restores cuts proposed by the governor." It also includes increases of $925 million increase for education, $136 million for Higher Education and $27.7 for libraries. The Assembly is also proposing reductions in the form of Spending Re-estimates ($386 million) and Spending Reductions ($240 million). The Assembly Budget Resolution also has a tax component. The Assembly plan will reduce revenues, when fully implemented, by $519 million. The major pieces of the Assembly plan are a $175 million child tax credit, $150 million Gross Receipt Tax savings for residential utility customers, $100 million to expand the Empire Zone program and $40 million for married couples by raising the standard deduction to $15,000 from $14,600.

The following section details how the major PEF budget priorities were addressed in the respective Budget Resolutions.

• Reject the Executive’s proposals to close Hutchings and Middletown PCs; to co-locate Rockland, Western NY, Sagamore and Queen’s Children’s PCs on the grounds of adult PCs; and to co-locate Kirby Forensic PC with Manhattan PC.
• Support the merger of the Taconic DDSO with the Capital District DDSO.

• Adds $994,000 to the Executive’s proposal for transition of Shared Staff to the counties to accommodate fringe benefits and calls for salary guarantees for State staff who opt to transition to county or voluntary agency employment.
• Accepts the phase-out of shared staff in OMH but says they want salary guarantees to staff.

• Concurs with the Executive proposal for the phase-out of Shared Staff.

• Establishes a $20 million "Road to Recovery" initiative to create and expand treatment options to help drug and alcohol addicted felony offenders. Funds will be allocated to OASAS, DOCS, the Division of Parole and DCJS. Most of this funding will go to private sector programs, including the following components: up to $2 million for expansion of the DTAP program, up to $5 million for residential and outpatient intensive drug treatment; up to $6 million for parolee and prison post-release residential treatment, outpatient services and transitional services; up to $2.5 million for treatment alternatives to street crime model cases management services; and $2.5 million for post-release job skill and development programs. Additional funding (unspecified) will be available for OASAS field office and training staff to assist in program implementation and for a new program evaluation unit.
• Added a $20 million "contingency appropriation" to be used by DOCS for staffing only if inmate numbers do not decline as expected.

• Restores $360,000 for six staff positions within parole operations.
• Adds $4 million in DOCS for mandatory drug treatment for certain types of inmates.
• Provides $1 million for the supervision, monitoring and mandatory treatment of certain non-violent drug offenders.
• Provides additional funding for substance abuse services administered by OASAS but most of the money would go to non-profit providers.

• Deny the Executive request to move 16 and 17 year olds to DOCS facilities.

• Rejects the Executive request to convert 12 Community Residential Homes to Evening Reporting Centers and provides $800,000 for 12 FTEs.

• Reject moving the Cultural Education program to the Council on the Arts. The move is proposed for October 1, 2001 and half-year funding is provided here as well as in the Council on the Arts budget.

• Denies industry fee increases and treble damages provision proposed in Superfund legislation.
• Creates a program to fund targeted environmental cleanups.
• Creates a $119 million cash managed program for Superfund within the $138 million appropriation.
• Rejects license fee increases. It is unclear whether funds will be provided from another source.

• Rejects Executive’s proposal to merge Superfund with Oil Spill Fund. Instead, intends to finance the Superfund with 50 percent General Fund appropriations and 50 percent from industry fees.
• Rejects license fee increases. It is unclear whether funds will be provided from another source.

• Adds $150 million to Highway and Bridge program but does not provide details on how much, if any, would be used for Engineering Services.

• Adds $45 million to Engineering Services budget.

• Rejects the Governor’s Article VII bill and offers instead Sen. LaValle's SUNY flexibility bill from last year.

• Accepts the Governor’s bill "with some modifications" that are not fully detailed.

The following is an agency by agency analysis of the changes made to the State Operations portion of the Executive Budget by the Senate and Assembly. If nothing is written about your agency or specific items of interest within your agency it indicates that neither the Senate nor Assembly made changes to the Executive Budget. It is important to understand that these legislative resolutions are not the final word on the State Budget. These are positions being staked out by the respective houses. The final budget will be determined over the course of the ensuing negotiations between the houses and the Governor. PEF members should still continue their lobbying campaign on behalf of the PEF budget priorities. The fight is not over until the budget is passed and signed into law by the Governor.

Assembly:

• Adds $110,000 to restore two positions in the Compliance program.

Senate:

• Establishes a $20 million "Road to Recovery" initiative to create and expand treatment options to help drug and alcohol addicted felony offenders. Funds will be allocated to OASAS, DOCS, the Division of Parole and DCJS. Most of this funding will go to private sector programs, including the following components: up to $2 million for expansion of the DTAP program, up to $5 million for residential and outpatient intensive drug treatment; up to $6 million for parolee and prison post release residential treatment and outpatient services and transitional services; up to $2.5 million for treatment alternatives to street crime model cases management services; and $2.5 million for post-release job skill and development programs. Additional funding (unspecified) will be available for OASAS field office and training staff to assist in program implementation and for a new program evaluation unit.

Assembly:

• Adds $207,000 to restore seven administrative planning positions.
• Adds over $70 million in funds to expand treatment programs, but it appears that all or most would go to nonprofit providers.

• Both houses reject the Executive Budget recommendation to move the State Library, State Museum and the State Archives to the Council.
• The Senate denies the e-commerce initiative.

Senate:

 

• Reduces the Executive’s recommendation for PaySR program from $14.2 million to $7.1 million "pending a determination of actual project costs through competitive bidding."

   

   

• Reduces the Executive’s recommendation "for other computer improvements" by ($887,000).

   

   

• Adds $150,000 for additional accountants and computer programmers for the Unclaimed Funds program.

   

   

• Reduces funding for temporary staff in the Unclaimed Funds program ($1.6 million).

   

• Proposes an audit of the prevailing wage enforcement program $200,000.

Assembly:

 

• Eliminates the Tokyo office ($1.45 million).

   

   

• Adds $294,000 for ATM inspectors.

   

   

• Adds $100,000 for additional Banking Intern positions.

   

Senate:

• Reduces by nonpersonal services across the agency ($3,783,000).
• Delaying the implementation of 18 new positions in the Systems Support program for six months and includes a reduction of ($353,000).
• Denies the Executive request to move 16 and 17 year olds to DOCS facilities.
• Allows, "should additional funds become available," for the construction of Juvenile Justice Centers.

Assembly:

• Eliminates funding for the construction of a new secure detention facility ($72.8 million).
• Eliminates state share of CONNECTIONS funding ($35 million).
• Eliminates federal share of CONNECTIONS funding ($25 million).
• Reduces nonpersonal services by ($2,384,496).
• Rejects the Executive request to convert 12 Community Residential Homes to Evening Reporting Centers and provides $800,000 for 12 FTEs.
• Rejects transfer of 16 and 17 year olds to DOCS

Assembly Budget Resolution (March 20, 2001):

 

• Adds $434,000 for five full-time positions in the Utility Intervention program.

   

Senate:

• Recommends a $20 million contingency appropriation for personal and nonpersonal services to be available on a quarterly basis if prison populations do not decline as predicted.
• Requests an inmate population report summarizing prison population projections
• Adds $1 million for the purchase of protective gloves and other safety equipment for DOCS staff. PEF anticipates that $500,000 of this appropriation is for safety equipment for PEF members.
• Prohibits funding to organizations which are involved in prison privatization. PEF assumes that this statement is related only to the provision of security services.
• Establishes a $20 million "Road to Recovery" initiative to create and expand treatment options to help drug and alcohol addicted felony offenders. Funds will be allocated to OASAS, DOCS, the Division of Parole and DCJS. Most of this funding will go to private sector programs, including the following components: up to $2 million for expansion of the DTAP program, up to $5 million for residential and outpatient intensive drug treatment; up to $6 million for parolee and prison post release residential treatment and outpatient services and transitional services; up to $2.5 million for treatment alternatives to street crime model cases management services; and $2.5 million for post-release job skill and development programs.
• Adds $126,000 for chaplains.

Assembly:

• Reduces the nonpersonal services appropriation by $5 million
• Adds $4 million for mandatory drug treatment services for certain non-violent drug offenders

Senate:

• Restores $260,000 to reflect denial of the Executive proposal to eliminate two positions and transfer three positions to the Division of Criminal Justice Services

Senate:

• Denies the Executive proposal to transfer in three positions from the Crime Victims Board.
• Cuts ($750,000) in the Administration and Operations and Systems programs for contractual services and other nonpersonal services expenses.
• Establishes a $20 million "Road to Recovery" initiative to create and expand treatment options to help drug and alcohol addicted felony offenders. Funds will be allocated to OASAS, DOCS, the Division of Parole and DCJS. Most of this funding will go to private sector programs, including the following components: up to $2 million for expansion of the DTAP program, up to $5 million for residential and outpatient intensive drug treatment; up to $6 million for parolee and prison post release residential treatment and outpatient services and transitional services; up to $2.5 million for treatment alternatives to street crime model cases management services; and $2.5 million for post-release job skill and development programs.

Senate

• Denies the Executive proposal to for $2.3 million in funding for 20 new positions assigned to reapportionment data review.

Assembly

• Denies the funding for 20 new positions assigned to reapportionment data review.
• Recommends transferring $240,000 from the Governor's Office of Regulatory Reform (GORR) to the Department of Economic Development in support of Personal Service for the Small Business On-line Permit Program.
• Recommends transferring $260,000 from the Governor's Office of Regulatory Reform (GORR) to the Department of Economic Development in support of Non-Personal Service for the Small Business On-line Permit Program.

Senate:

• Rejects moving the Cultural Education program to the Council on the Arts. The move is proposed for October 1, 2001 and half-year funding is provided here as well as in the Council on the Arts budget.
• Cuts $4 million from the Departments budget in a negative Maintenance Undistributed appropriation meaning that the Department can make the reduction in any part(s) of the agency.

Assembly:

• Rejects moving the Cultural Education program to the Council on the Arts. The move is proposed for October 1, 2001 and half-year funding is provided here as well as in the Council on the Arts budget.
• Rejects the Governor’s proposal for a rebate of license fees, which was projected to cost $15 million.
• Provides an additional $4 million for case services in the VESID program.
• Moves the $300,000 in State Operations funding for the Office of Elementary, Middle, Secondary and Continuing Education program Maintenance Undistributed appropriation to support additional staff to improve efficiency in the approval process.
• Adds $150,000 for School Bus Oversight staffing needs.

Senate:

• Denies the Executive proposal for sportsman hunting and fishing fee increases and pesticide fee increases, but proposes to finance these programs through General Fund revenues ($5.3 million to cover the sportsman fee denial and $2.8 million to cover the pesticide fee denial).
• Recommends reducing nonpersonal services by $1,776,000.
• Provides additional funding of $20 million for the Environmental Protection Fund (EPF) from the existing $270 million fund balance.
• Denies the increased fees on industry, the community participation grants and the new voluntary cleanup program and instead proposes a $119 million cash managed program within the $138 appropriation.
• Proposes funding of $76 million to finance Superfund site cleanups and $31 million to finance the Oil Spill Program.
• Dedicates $69 million in existing corporate franchise tax receipts to the hazardous waste remedial fund for hazardous waste cleanups instead of General Fund receipts.
• Remaining revenue will fund a new program for targeted environmental cleanups to be allocated by the Executive, Senate and Assembly.

Assembly

• Denies the Executive proposal to increase sportsman hunting and fishing fees and pesticide certification fee increases. The Assembly proposal does not provide funding to cover these fee denials.
• Denies the Executive proposal for a $350,000 appropriation for an unspecified number of new positions relating to the leasing of State lands for oil and gas drilling.
• The Assembly Superfund Plan maintains the historic cost share percentages between industry and taxpayer. Superfund cost recoveries will continue to be used to pay for Superfund program costs outside the 50/50 industry-taxpayer cost share.
• Proposes a dedicating $13 million from existing hazardous waste generator fees and $18.4 million from the Executive’s proposed generator surcharge, for an industry contribution of $31.4 million, and provides a $31.4 million General fund match to create a $62.8 million Superfund account.
• Proposes that the remaining $37.6 million in General Fund contributions proposed by the Executive will be retained in a Trust Account to be matched with revenue to be determined pursuant to a chapter.

Senate:

• A reduction of ($300,000) from the consolidation of the oversight of the College Savings Program. This breaks down to ($130,000) from nonpersonal services and ($170,000) from personal services.

Senate:

• Denies the proposal to reduce funds transferred from the Health Care Reform Act of 2000 to offset General Fund spending, including the $30 million transfer which would offset the General Fund subsidy to Roswell Park
• Reduces funding for the development of the replacement Medicaid Management Information System by $2 million, due to unspent appropriations from past years
• Reduces nonpersonal services by $1 million
• Adds $250,000 for the establishment of an Advisory Committee on Health Care Workforce Issues comprised of health care practitioners and representatives of health care providers to address the critical workforce shortage
• Adds $250,000 for a Task Force on Health Care for low-income Legal Immigrants
• Provides $10 million (fully phased in) for a scholarship program for nurses
• Provides $1.25 million to help support dental clinics, including those at Stony Brook and the University of Buffalo.
• Recommends elimination of language allowing suballocation, transfer or interchange of funds within DOH allocations

Assembly:

• Reduces nonpersonal funding by $3 million
• Reduces $1,054,000 in personal services in the Office of Managed Care (added in the 30-day amendments to correctly reflect projected expenditures for employees)
• Reduces by $1 million for administration of the regional pilot project. Proposes to reprogram the $1 million to help pay for operating cost
• Restores $250,000 and adds $250,000 for uncompensated care payments to dental clinics sponsored by dental schools.
• Proposes that DOH be directed to hire additional nursing home inspection and surveillance staff and to provide for new training initiatives for all inspectors
• Adds $1 million to extend coverage under the Medicaid Presumptive Eligibility Program for a period of 90 days to uninsured persons discharged from psychiatric inpatient hospital care or released form a State or local correctional facility or jail for services and supplies related to the treatment of a mental illness
• Provides language in the Health Care Standards and Surveillance Program to stipulate that the $5,466,000 General Fund increase for the implementation of the Health Information Quality Improvement Act of 2000 ("Physician Profiling") and the reappropriation of $3 million must be spent

Senate:

• Rejects the $2 million for the e-commerce initiative.

Assembly:

• Rejects the $2 million for e-commerce. Recommends using the money for increased enforcement.
• Recommends a Comptroller’s audit of prevailing wage enforcement.
• Rejects moving $1 million from the Occupational Safety and Health Fee and Penalty account to the General Fund.

Assembly:

 

• Adds $2 million for the provision of additional services

   

   

• Provides a sub-allocation of $500,000 from the Department of Insurance for the Managed Care Assistance Program

   

• Provides $500,000 (sub-allocated from the Department of Insurance) for services and expenses of a special Automobile Insurance Fraud Prosecutor to be appointed by the Governor and Attorney General

Senate

• Concurs with Executive request.

Assembly

• Denies funding for 26 additional retailer Sales Management positions.

Senate:

• Rejects the Executive’s proposals to close Hutchings and Middletown PCs; to co-locate Rockland, Western NY, Sagamore and Queen’s Children’s PCs on the grounds of adult PCs; and to co-locate Kirby Forensic PC with Manhattan PC.
• Provides the Senate’s share of funding ($7 million) for year one of the 10% mental health clinic adjustment and the 2.5% COLA for private provider agencies.
• Reduces general salary increases and specific clinical position increases by $1 million to reflect a delayed phase-in of new positions
• Indicates that the Senate "will explore, based on the availability of funds, addressing the need for out year cost of living adjustment (COLA) strategies, as well as additional funding for child psychiatric care and out-patient case management." This may have further implications for linking funding for not-for-profits to future downsizing and facility closures.
• Adds $260,000 for the New York State Psychiatric Institute.
• Adds $575,000 for Nathan Kline Institute.

Assembly:

• Rejects the Executive’s proposals to close Hutchings and Middletown PCs; to co-locate Rockland, Western NY, Sagamore and Queen’s Children’s PCs on the grounds of adult PCs; and to co-locate Kirby Forensic PC with Manhattan PC.
• Adds $994,000 to the Executive’s proposal for transition of Shared Staff to the counties to accommodate fringe benefits and calls for salary guarantees for State staff who opt to transition to county or voluntary agency employment.
• Supports the Executive’s proposal to fund salary increases for not-for-profit providers with savings from downsizing (the 625-bed reduction called for in the Executive Budget).
• Calls for the continuation of the 15% Community Reinvestment Act set aside for enhancing staff to patient ratios in State operated mental health facilities and the 7% set aside for State mental health staff providing services in the community.
• Proposes development of a formal detailed plan for future use of all State-operated mental health facilities submitted to the Legislature by October 1, 2001. The plan would require: participation of families of patients who would be affected by a proposal; demonstration of the means by which total physical separation of all children’s facilities from adult facilities would be maintained; documentation that there would be no interchange of staff between a children’s and an adult facility and that children’s services will be delivered by specialized staff; and documentation on a facility-by-facility basis all purported projected capital and operating savings from closures or co-locations. Also proposes that any savings from future facility closures or co-locations be used to increase funding to the Community Mental Health Support and Workforce Reinvestment Act.
• Proposes $125,000 for an independent study of the impact of prison life on seriously mentally ill prisoners and the extent and quality of mental health services available to prisoners.
• Proposes $100,000 to be used in conjunction with funding to OMRDD for an independent study on workforce recruitment and retention study relating to voluntary sector staff turnover.
• Adds $3 million for an adolescent mental health demonstration project for innovative residential and treatment programs by not-for-profit providers.

Senate:

• Reduces proposed bed development expenditures for State-operated NYS CARES beds by $500,000 to reflect anticipated delays on bringing these beds on-line.
• Denies proposed inflationary increases of $2 million.
• Reduces staffing enhancements by $1 million to reflect a delay in phasing in these new positions.
• Supports the merger of the Taconic DDSO with the Capital District DDSO.
• Re-estimates Patient Income Account revenues to provide a General Fund savings of $3.5 million.

Assembly:

• Supports the merger of the Taconic DDSO with the Capital District DDSO.
• Proposes that $4 million in fund balances from the Patient Income Account be used to offset General Fund spending.
• Proposes $100,000 to be used in conjunction with funding to OMH for an independent study on workforce recruitment and retention study relating to voluntary sector staff turnover.
• Proposes $1.6 million to support innovative workplace recruitment and retention initiatives for not-for-profit service providers.
• Provides $1.6 million in addition funds for a 3.25% COLA increase for not-for-profit Medicaid Service Coordinators.

Senate:

• Adds $200,000 in support of the New York Guard.

Senate:

• Denies additional staffing for the vision-testing requirement.
• Reduces Internet Enhancement funding by ($510,000).

Assembly:

• Adds $150,000 to hire additional employees to supervise school bus motor carriers in conjunction with the State Education Department (SED) which will also receive a matching $150,000 to hire employees for school bus oversight.

Senate:

 

• Reduces the $30 million proposed for the new e-Commerce/e-Government initiatives to $3 million.

   

   

• Reduces proposed funding for the (GIS) initiative from $4.2 million to $1.1 million. Asserts that an additional $1 million is available for this project within the Department of Transportation.

   

   

• Reduces NyeNet appropriations by $8.6 million to more accurately reflect actual disbursements over the last three years.

   

Assembly

 

• Denies $25 million in unspecified funding for E-Government projects.

   

Senate:

• Adds $250,000 for a Global Positioning Satellite Pilot program for parolees.

Assembly:

• Restores $360,000 for six staff positions within parole operations.
• Provides $1 million for the supervision, monitoring and mandatory treatment of certain non-violent drug offenders.

Senate:

• Rejects the Executive’s technology initiative ($750,000).

Assembly:

• Rejects the Executive’s Co-Star Program and administrative costs associated with the program ($3,682,800).

Senate:

 

• Cuts ($500,000) for nonpersonal services efficiencies across the agency.

   

   

• Denies funding ($2.6 million) for the online registration system.

   

   

• Denies Executive’s proposal to change licensing fees.

   

   

• Denies Executive proposal to increase Uniform Commercial Code paper filing fees.

   

   

• Recommends that the extension for authorization for the Department of State to administer the Federal Community Services Block Grant program be one year instead of the proposed three years.

   

Assembly:

 

• Rejects the Executive’s proposal to increase application and examination fees.

   

   

• Eliminates the Quality Communities Program because the "Executive has not adequately explained the goals and activities of this program."

   

   

• Recommends that the extension for authorization for the Department of State to administer the Federal Community Services Block Grant program be one year instead of the proposed three years.

   

• Restores $93,000 for the New York Commission on Uniform State Laws.

Senate:

• Adds $1 million for the purchase of mobile radios.
• Reduces appropriations by $1.2 million related to aviation insurance.

Assembly:

• Reduces funding for the Communication Assistance Law Enforcement Act wiretapping technology by $3,151,000.
• Eliminates $1.2 million for helicopter insurance.

Senate:

• Supports Executive’s proposal for financial support for SUNY hospitals.
• Rejects Article VII bill regarding teaching hospitals and instead supports the Senate’s Hospital Flexibility Bill (S. 3024B).
• Rejects any attempt to change the governance structure of the SUNY hospitals.

Assembly:

• Reduces SUNY Central Administration due to operating efficiencies ($2.2 million).
• Accepts Executive’s proposal for financial support of SUNY hospitals as a "first step towards attaining fiscal stability."
• Accepts Article VII proposals with "certain modifications." These "modifications" are not included in the resolution.

Senate

 

• Reduces without prejudice nonpersonal services by $2 million commensurate with the decline in personal services as recommended by the Governor.

   

Assembly

 

• Recommends a personal service reduction of $304,760 from the Executive's proposed budget. This reduction is the result of an across the board reduction in total personal service and nonpersonal service costs for the Office of Tax Policy Analysis, as well as a denial of an additional $93,000 in total Personal Service.

   

Senate:

• A reduction of ($9,535,000) from nonpersonal services across the agency.

• Rejects the Executive’s proposals to fund CONNECTIONS in the Systems Support and Information Services program.
• Proposes using the $273,140,000 to redesign the system.

Senate

• Recommends capital restorations of $475 million including $150 million for the Highway and Bridge Program in order to fund the Five Year Highway and Bridge Capital Plan to a level which is consistent with what was envisioned within the original Five Year Capital Plan (including the $3.8 billion Bond Act) agreed upon during the 2000-01 Session for the first year of the plan. These funding amounts will enable $1.9 billion to be spent on highway and bridge construction projects in SFY 2001-02.

Assembly

• Recommends capital restorations of $477 million including $150 million for the Dedicated Highway and Bridge Trust Fund. The increase to the letting level will enable $1.9 billion to be spent on highway and bridge construction projects in SFY 2001-02. This is the level of funding approved in the SFY 2000-01 budget.
• The increase in the letting level will require an increase in Engineering Services of $45 million, in order to implement the Capital Program.