The Governor and Legislature have finalized the FY21 State Budget. Due to plummeting state revenues caused by the COVID-19 pandemic, and the lack of additional federal funds to fill the revenue shortfalls in State and local government budgets, the state budget contains language that will allow the Director of Budget to make cuts to appropriations if the state budget is unbalanced during the year. Currently, the state is expecting a $15 billion shortfall which will force significant cuts to state operations, local governments, school districts, and nearly every program imaginable. While many items may be ”fully funded” currently, they won’t be for long if we do not get a massive infusion of federal funding to New York State.

Division of the Budget “Superpowers”
With the state facing unprecedented fiscal uncertainty due to the ongoing Coronavirus crisis, the enacted budget provides the Executive with broad authority to make mid-year changes to the state’s financial plan.

If, during any time period, the State’s General Fund is imbalanced, the Budget Director is given authority to adjust or reduce appropriations by any amount needed to balance the budget. The cuts would be made uniformly across-the-board to the extent practicable or by specific appropriations as needed. The legislature would have ten days to prepare its own plan, or the reductions would go into effect automatically.

COVID-Related Appropriations
The budget provides $4 billion in state appropriations to address the COVID-19 public health emergency, and includes $25 billion in Federal appropriation authority to address the crisis.

State Operations
The enacted budget authorizes the Department of Corrections and Community Supervision (DOCCS) to close facilities with only 90-days’ notice until March 31, 2021. There is no limit as to the number of facilities that can be closed.

DOCCS is required to transfer adolescent offenders from its facilities to OCFS facilities by October 1, 2020. Adolescent offenders are offenders under the age of 21 who were placed in units at DOCCS facilities solely intended for people their age. OCFS is a more proper placement for these offenders.

Local Governments
Aid and Incentives to Municipalities (AIM) funding is held flat over last year. The budget restores a proposed $9.3 million cut to municipalities that receive aid for hosting a video lottery gaming facility.

The budget also provides $250 million for counties and New York City for costs associated with raising the age of criminal responsibility.

Local Roads and Bridges
Funding for the CHIPS and Marchiselli programs is held flat from last year. The enacted budget restores $65 million for extreme winter recovery funding for local roads and bridges.

The enacted budget increases from $250,000 to $350,000 the competitive-bid threshold for CHIPS projects. This will allow municipalities to use their own workforce to perform work at or under the higher threshold instead of bidding out the contract competitively. This threshold hadn’t been increased since 2011.

Unified Court System
CSEA successfully defeated a proposal that would have made significant changes to the state’s court system and would have had potentially negative impacts on employees.

Education
K-12 Schools
The budget holds every school district harmless in foundation aid and will ensure that they receive the same funding as 2019-20 due to a infusion of federal funding.

Libraries
Library aid is reduced by $2.5 million over last year, and library construction aid is $20 million below last year’s levels.

Retirees
CSEA was successful in defeating several proposals that would have increased  health insurance costs for NYSHIP retirees. The proposals would have limited future reimbursement for Medicare Part B and would have totally eliminated the IRMA reimbursement for current and future retirees. Lastly, we defeated a proposal that would have created a Tier 2 retiree health insurance benefit for future state employees.

Elections
Time Off to Vote

The final budget changes last year’s law allowing employees three hours off to vote. Effective immediately, employees will be allowed two hours off to vote if they do not have sufficient time outside of scheduled working hours to vote. Four consecutive hours either before or after work shall be deemed sufficient time outside of working hours within which to vote.

Public Campaign Financing
The enacted budget codifies the recommendations of 2019’s Public Financing Commission relating to campaign finance reform.  This law will allow the use of taxpayer funds to match private campaign contributions of rates between $6 in public for every $1 in private contributions up to $12:1. However, no funding is appropriated for this program and it will not be in effect until the 2024 elections.

In addition, this law increases the threshold for ballot access to 130,000 votes or two percent, whichever is higher. Political parties will be required to meet this threshold in both presidential and gubernatorial election years.

Environmental Bond Act
The enacted budget calls for a $3 billion “Restore Mother Nature” bond act, to be on the ballot for the November 2020 General Election.

Health Care
The budget will create a $250 million fund, annually, for distressed hospitals and nursing home facilities. This will be funded by New York City ($200 million) and the remaining 57 counties ($50 million). For counties outside of New York City, they will pay a percentage of this amount based on the amount of sales tax revenue that they bring in annually. This will not be in effect until 2021.

CSEA was successfully able to defeat a proposal that would have reduced funding to public hospitals by $70 million.

However, the State has issued a regulation that will reduce state Medicaid payments by $2.5 billion. In addition, Medicaid payments will be uniformly reduced by 1.875% during this fiscal year. These cuts will be left up to the Department of Health and Division of Budget.

Sick Leave
The budget will require all private sector employers outside of New York City to provide employees with one hour of sick leave for every thirty hours worked, up to certain maximums.

• Employers with fewer than 4 employees and less than $1 million in revenue, workers can accumulate up to 40 hours of unpaid sick leave;
• Employers with fewer than 4 employees and more than $1 million in revenue, workers can accumulate up to 40 hours of paid sick leave;
• Employers with 5-99 employees, workers can accumulate up to 40 hours of paid sick leave;
• Employers with more than 99 employees, workers can accumulate up to 56 hours of paid sick leave.

Bail Reform
The enacted budget contains numerous changes to the state’s bail laws. These changes include expanding the conditions that a court may impose on a defendant and add additional offenses that a judge can use bail to detain a defendant.