Assembly 2008-09 Budget Proposal: Balancing Economic Realities With Pressing Needs Of New Yorkers

Assembly Speaker Sheldon Silver, Ways and Means Committee Chair Herman D. Farrell, Jr., and the Assembly Majority today provided highlights of the Assembly's one-house budget proposal, which was passed in its entirety last week.

The lawmakers said the house's 2008-09 budget proposal maintains the Assembly Majority's long-standing commitment to addressing the needs of working families and supporting education, higher education, affordable housing, property tax relief, accessibility to health care, and economic development.

The $124.8 billion Assembly budget proposal includes:

• $1.7 billion in additional general support for public schools. The Assembly's plan reflects a second year of record school aid increases and continues our commitment to Campaign for Fiscal Equity (CFE).
• $400 million in capital funding for affordable housing and other housing programs around the state. None of this funding would be dependent upon the sale of property at the Jacob Javits Convention Center in New York City.
• $8.9 billion five-year capital plan for SUNY and CUNY to help these institutions nurture advanced research and attract high-tech industry.
• Acceptance of the Executive's proposed $1 billion in capital spending including $179 million lined out in specific projects.
• $150 million for direct assistance to help prevent New Yorkers from losing their homes due to mortgage foreclosure, and $30 million in additional support for other measures to ease the impact of the sub-prime mortgage crisis on individuals and communities around the state.
• Restoration of a scheduled increase in the STAR middle class property tax relief program, with a total of $169 million in additional rebates.
• A temporary increase in personal income taxes for those who earn $1 million or more annually which will generate $1.5 billion per year. The $1.5 billion in annual revenues will be dedicated to the General Fund for SFY 2008-09. In SFY 2009-10, revenues will be split between the General Fund and the newly-created New York Transportation Improvement Program (NY-TRIP), which will fund mass transit projects in the New York City metropolitan area and roads and bridges improvement throughout the state. In the final three years, the entire $1.5 billion will be dedicated to NY-TRIP.
• Expansion of the Child Health Plus (CHIP) program and rejection of the Executive's plan to increase CHIP monthly premiums, to help ensure that all working families have access to the program.
• $122.4 million in funding to delay the Executive's hospital reimbursement reforms until January 1, 2009 to allow for greater involvement by the hospital industry and other key stakeholders.
• Restoration of $15.4 million in cuts to the Elderly Pharmaceutical Insurance Coverage (EPIC) program, by rejecting a proposal to require prior authorization for medications not covered under Medicare Part D;
• An additional $60 million in Consolidated Highway Improvement Program (CHIPS) which provides financing for the improvement of local roads and bridges.
• Rejection of plans to shift costs to counties and other local governments related to public assistance programs and juvenile detention.
• Restoration of $164 million in local aid to New York City.
• An additional $43 million in adds to SUNY and $28.4 to CUNY.
• Restoration of $8.58 million in proposed cuts to SUNY and CUNY community colleges.
• An additional $140 base aid increase to SUNY and CUNY community colleges resulting in an additional $32 million in funding.
• Restoration of $3.1 million for student opportunity programs, such as the Higher Education Opportunity Program (HEOP), Search for Education Elevation and Knowledge (SEEK), College Discovery and the Liberty Partnership Program. In addition, $2.5 million is provided for Equal Opportunity Programs (EOP) to reduce unmet needs in student financial aid packages and increase enrollment in EOP, as well as for state operated and community colleges.
• Rejection of Executive proposal to increase fees on auto insurance policies.
• Investment in high-tech businesses, science and academic research by supporting the $15 million Universal Broadband Initiative.
• Additional oversight and tighter rules for businesses in Empire Zones, which receive lucrative tax breaks in exchange for creating jobs.

"We are working hard with Governor Paterson and with our colleagues in the Senate to enact a timely state budget that meets the needs of working families while at the same time taking into account the economic challenges we face," said Silver. "We believe that, working together, we can achieve the goal of an on-time budget."