The Governor and the Legislature enacted the $237 billion 2024-25 New York State budget on April 20, 2024, and it includes significant progress on many of the priorities PEF advocates for in its ongoing “Fund Our Future” campaign.
“Thanks to the unrelenting advocacy of PEF members and the amazing support of Governor Kathy Hochul and the Democratic Majorities in both the New York State Senate and Assembly led by Senate Majority Leader Andrea Stewart Cousins and Assembly Speaker Carl Heastie, we continue to make meaningful gains to support state services and the state workers who provide those services,” said PEF President Wayne Spence.
This budget builds upon the union’s work at the contract table and continues its progress with policymakers on several fronts, including:
Tier 6 Reform
PEF’s top priority was reforming the Tier 5 and Tier 6 pension plans and we were successful this budget cycle on two fronts. We appreciate Gov. Hochul and the Legislature agreeing to reduce the final average salary calculation from 5 years to 3 years. This change, along with the reduction in vesting time from 10 years to 5 years that was passed in 2022, will help the state attract and retain the workers it needs to deliver services and reduce the more than $1 billion it currently spends annually on overtime. Lawmakers and the governor also extended the exclusion of overtime earnings when calculating Tier 6 members’ contributions to the pension plan until March 31, 2026. As we work to increase staffing and address inequities in Tier 6, the continuation of this provision protects PEF members from increased contribution costs caused by working voluntary or mandatory overtime to meet the state’s ongoing staffing needs. Contrary to some assertions, this provision eliminates a penalty, it does not create a “benefit enhancement.”
Extended COVID-19 Sick Leave
Thanks to the advocacy of members, PEF was successful in extending this program until July 31, 2025. It continues to be a critical for protecting staff and patients, especially at SUNY hospitals as well as in congregate care facilities at OMH, OCFS, DOCCS, and OPWDD. We are hopeful that progress against the virus continues so that we can continue to keep patients and staff safe from unnecessary infection!
Expanded State-Operated In-Patient Mental Health Beds
PEF’s “Fund Our Future Campaign” helped to deliver another $55 million in funding to support an additional 200 in-patient mental health beds at state-operated facilities. This increase builds upon the additional 350 state-operated beds added in the 2022 and 2023 state budgets. These beds are critical to ensuring that New Yorkers with significant mental illnesses – especially who are indigent, uninsured, underinsured or undocumented — are not left to care for themselves on the streets.
SUNY Downstate Saved
Thanks to the concerted efforts of PEF, UUP, AFT, and a coalition of concerned New York City clergy, State Senator Zellnor Myrie, Assemblymember Brian Cunningham, the Majority Conferences in both houses of the Legislature, and Governor Hochul, we stopped the immediate closure of SUNY Downstate planned by SUNY Chancellor John King. Over the next few months, a newly formed advisory board will convene to discuss the hospital’s finances, the services it provides, and the health care needs of the community. PEF remains committed to engaging stakeholders on the importance of this state-operated hospital. The Brooklyn Needs Downstate Coalition will continue its efforts to educate everyone about the essential dual roles played by Downstate – delivering essential healthcare in Brooklyn and educating the next generation of healthcare professionals.
End Lag Payroll & Salary Deferral
Thanks to PEF’s advocacy through its “Fund Our Future Campaign,” the Governor and the Legislature have passed budget legislation to end the arcane and counterproductive lag payroll system and salary deferral program for new hires beginning later this year. New employees hired on or after July 1, 2024, will no longer be subject to the salary deferral program, while new employees hired after July 1, 2025, will no longer be subject to the lag payroll system. This has been a long-sought after change that we believe will remove significant and unnecessary barriers to attracting and retaining new staff.
Stop Fast-Track Prison Closures
Despite the strong advocacy of PEF and other affected unions, the NYS Senate and Assembly passed budget legislation to authorize the Governor to close up to five correctional facilities with only 90 days advance notice. PEF is disappointed that the current one-year statutory notice will not be required and that affected individuals and communities will not receive appropriate advance notice if their facility is targeted for closure. PEF will continue to work with the Governor, the Legislature and DOCCS leadership to ensure that every PEF member is appropriately supported and has the opportunity to transfer to another position or facility if they so choose.
$10 Million for State Culture Hubs
PEF, working with members at the State Education Department, the Capital Region legislative delegation, and the Chairs of the Senate and Assembly Education committees, secured $10 million in new capital to preserve and improve facilities AND MORE THAN $5 MILLION IN ADDITIONAL OPERATING SUPPORT at the New York State Museum, State Library and the State Archives. PEF members have been fighting to improve those institutions for years. This is their first major capital support in decades.
Reject New York’s Entry into Nurse Compact
Working with legislative leaders, PEF successfully prevented a budget proposal from passing that would have authorized New York to enter into the Interstate Nurse Licensure Compact. New York maintains higher licensure standards than most of the states in the compact and, as a union representing more than 10,000 nurses, PEF opposed watering down standards for New York’s health care professionals. PEF is thankful to lawmakers for listening and looks forward to working with policymakers to establish real tools to attract and retain nurses in New York, including addressing bullying and aggressive behavior in the workplace, expanding nurse loan forgiveness programs, and establishing a tax credit for individuals to serve as nurse preceptors.
Stopped Cuts to Retiree Health Care
With the support of both houses of the Legislature, PEF successfully defeated the proposed cuts to the Income-Related Monthly Adjustment Amount (IRMAA). If enacted, this change would have increased out-of-pocket costs for Medicare-eligible PEF retirees living on fixed incomes. This win affirms PEF’s commitment to protect the purchasing power of PEF retirees who live on fixed incomes.
Design-Build Expansion Defeated
PEF successfully worked to exclude design-build projects from dormitory authority projects authorized under the Environmental Bond Act of 2022; the American Rescue Plan of 2021; The Infrastructure and Jobs Act of 2021 and the Inflation Reduction Act of 2022. Absent this prohibition, those could have used the flawed design-build program that does not allow for public employee oversight or inspections.