Civil Service Enforcement/Research Department

 

 

 

 

TO:                 Roger Benson

 

FROM:          Thomas Cetrino, Susan Mitnick, Steve Connolly, Kristie Sammons, Mike Marinello and Jeff Waggoner

 

DATE:            April 4, 2006

 

RE:                 SFY 2006-07 Final Enacted Budget – Summary of Major Provisions

 

The Assembly and Senate passed all legislation necessary to enact a budget for SFY2006-07. This memo summarizes the final action taken by the legislature on PEF’s budget priorities and other major changes the legislature made to state agencies’ state operations budgets.  If a state agency is not mentioned in this memo then it means that the legislature made no major changes to that agency’s state operations budget.  It is possible that the Governor will veto some of the Legislature’s recommended changes and that could affect some of PEF budget priorities.

 

In general PEF was very successful in achieving most of its major budget priorities.  However, they remain vulnerable until final action is taken by the Governor.

 

In addition to this memo we will be mailing Executive Board members a more detailed spreadsheet analysis of their agencies’ final enacted budgets. These analyses will also be posted on the PEF website in the Budgets section early next week. We will also update you on any actions the Governor may take on the SFY2006-07 budget enacted by the Legislature.

 

 

EDUCATION, LABOR AND FAMILY ASSISTANCE (S6453-C/A9553-C & S6458-C/A9558-B)

 

Office of Children and Family Services

Priorities:

  

Action:

 

Other Actions:

·        Directs that OCFS, in conjunction with DCJS, conduct a study of the prevalence, needs and services for sexually exploited children, to be provided to the Governor and Legislature by December 31, 2006.  The group home restoration is not linked to this issue.

·        Reduces nonpersonal service appropriation in the Central Administration Program by $1.8 million, which makes it the same appropriation as the SFY2005-06 enacted appropriation.

 

 

SUNY

Priority:

 

Action:

 

 

State Education Department

Priorities:

 

Action:

 

Other Actions:

 

 

Department of Labor

Other Actions:

 

 

Office of Temporary and Disability Assistance

Other Actions:

 

 

TRANSPORTATION, ECONOMIC DEVELOPMENT AND ENVIRONMENTAL CONSERVATION (S6455-C/A9555-C & S6459-C/A9559-B)

 

Department of Transportation

Priorities: 

 

Action:

 

 

Other Actions:

 

 

Agriculture & Markets

Priority: 

 

Action:

 

Other Actions:

 

 

Department of Economic Development

Priority:

 

Action:

 

Other Actions:

·        Allows DED to accept federal or municipal certification of Minority and Women Business Enterprises (MWBE).

·        Appoints the current NYSTAR board as the interim board of the Foundation for Science, Technology and Innovation (Foundation) which was created last year.

·        Specifically states that the purpose of the Foundation’s Regional Partnership program is to promote regional economic assistance by certifying partnerships that promote technology enhancement and innovation which will work in coordination with technology development organizations.

·        Makes the Foundation’s Regional Partnerships eligible for grants and loans from the Urban Development Corporation’s (UDC) JOBS NOW and Economic Development Fund programs.

·        NYSTAR appropriations are transferred to new Foundation and “where appropriate” made available to Regional Partnerships.

·        UDC must submit a comprehensive financial plan to the Legislature and Governor.

·        Requires DED to develop a statewide master plan for marketing.

 

 

Environmental Conservation

Other Actions:

 

 

Department of Motor Vehicles:

Other Actions:

 

 

Department of Taxation and Finance

Other Actions:

-              decreases by $400,000 the personal services appropriation and by $200,000 the non-personal services appropriation for the Audit, Collection and Enforcement Program which, according to the Senate Majority, would have funded 10 FTE positions;

-              eliminates a $1 million maintenance undistributed appropriation for the Revenue Processing and Reconciliation Program.

 

 

Division of Lottery:

Other Actions:

 

 

 

PUBLIC PROTECTION AND GENERAL GOVERNMENT (S6450-C/A9550-C &     A6456-C/A9556-B)

 

Division of Parole

Priority: 

 

Action:

 

Other Actions:

 

 

Department of Correctional Services

Priority: 

 

Action:

 

Other Actions:

 

 

Early Retirement, Pension, Health Insurance and Civil Service Issues

Priorities:

 

Action:

 

 

Public Employee Relations Board

Priority: 

 

Action:

 

 

Office for Technology

Other Actions:

 

 

State Police

Other Actions:

 

 

Alcoholic Beverage Control

Other Actions:

 

 

Division of Criminal Justice Services

Other Actions:

 

 

State Board of Elections (the appropriation for Elections is in A9555C/S6455C-- the Transportation, Economic Development and Environmental Conservation bill, instead of the Public Protection, General Government bill)

Other Actions:

 

 

Office of General Services

Other Actions:

 

 

Department of Law

Other Actions:

 

 

Department of Civil Service

Other Actions:

 

 

Workers Compensation Board

Priority:

 

Action:

 

 

General State Charges

PEF requested that both houses reject the Executive’s proposal to authorize use of certain interest earnings to offset costs of health insurance for public employees and retirees until all parties were sure that it does not result in a cost shift to State employees.  PEF then explored this issue in detail with the Comptroller’s Office and Assembly and Senate fiscal staffs.  We determined that this proposal did not shift any additional health care costs to State employees or retirees.  Both houses then included the Executive proposal in S6456-C/A9556-B.

 

 

HEALTH AND  MENTAL HYGIENE (S6454-C/A9554-C & S6457-C/A9557-B)

 

Office of Mental Health

Other Actions:

 

 

Department of Health:

Other Actions:

 

 

Office of Medicaid Inspector General:

Other Actions:

 

 

TAX CUTS (S6460-C/A9560-B)

Priority:

 

Action:

-         Property Tax Rebates for Homeowners.  All property taxpayers, regardless of their income or the relation of their income to their property tax burden, will receive a check from the State in September or October 2006 equal to 30% of the value of their 2005-06 STAR homestead exemption.  The legislature claims that most homeowners will receive between $300 and $800 under this program but the Fiscal Policy Institute believes that most will receive less than $300 and that some will receive more than $800.  The total cost of this tax cut is estimated at $805 million in SFY2006-07 and $960 million in SFY2007-08.

-         Child Tax Credit.  Taxpayers will receive a State personal income tax credit equal to 33% of their federal child personal income tax credit for each child between the ages of 4 and 17.  Most middle-income families with adjusted gross incomes of less than $110,000 receive a $1,000 federal credit per child so their State income tax credit would be $330 per child.  The federal and State credits are reduced for families with adjusted gross incomes over $110,000.  The income level at which this credit is completely phased out depends on the number of children that a taxpayer has.  The legislature intended to ensure that all families with children that have incomes below $17,000 received at least a $100 refundable tax credit under this program.  The total cost of this tax cut is estimated at $0 in SFY2006-07 and $600 million in SFY2007-08.  While this tax cut is effective for the 2006 tax year, there will be no fiscal impact until tax returns for the 2006 tax year are filed in early 2007.

-         State Sales Tax on Clothing.  As of April 1, 2006, the state portion of the sales tax (4%) is eliminated on items of clothing and footwear costing less than $110.  Counties have the option of eliminating their portion of the sales tax on these same items.  The total cost of this tax cut is estimated at $587 million in SFY2006-07 and $606 million in SFY2007-08.

-         Reduce State Income Tax Marriage Penalty.  Increases the standard deduction for married taxpayers filing jointly to $15,000 which is double the standard deduction for single tax payers.  The total cost of this tax cut is estimated at $15 million in SFY2006-07 and $41 million in SFY2007-08.

 

 

cc:        Executive Board,

Council Leaders,

Statewide Labor Management Chairs