What You Should Know
On behalf of the Davidoff Hutcher & Citron government affairs practice we wanted to provide clients and friends of the firm an immediate top-level briefing on the 2018-19 State of New York Executive Budget, just released within the last 24-hours by Governor Andrew M. Cuomo.
– Governor Cuomo’s $168 billion budget for the 2018-19 fiscal year reflects a 2.3% increase over last year’s budget.
– The proposal scales back an expected spending boost for elementary and secondary education, proposing a 3% hike instead of a previously planned 4% jump. School aid is proposed to increase $769 million to $26.4 billion
– Along with the bump in aid to K-12 schools, Cuomo called for a 1% increase in higher education spending and a 3% increase in health care spending.
– The Executive Budget proposes to change the state income tax code, shifting it to an employer-paid payroll tax to offset the tax changes made at the federal level that limit people’s ability to deduct their state and local taxes (SALT) on their federal returns.
– Cuomo called for reductions in spending on transportation, mental health and state agencies. Community colleges would lose 2.4% ($18 million) in state aid. Further, it would freeze direct state aid to counties, towns, cities and villages, keeping aid at last year’s levels.
To fund these proposed increases and account for the current $4.4 billion budget deficit, Cuomo proposes to raise $1 billion in new revenue by:
– a new “opioid surcharge” fee of 2 cents per milligram of prescribed opioids, to be paid by the manufacturer, with the money earmarked toward anti-addiction programs;
– higher taxes on cigars and on e-cigarette vapor products;
– broadening the existing internet sales tax to all items sold by vendors with $100 million or more in annual sales;
– creating a fee on health insurance providers to recoup some of the savings they received in the corporate tax rate reduction; and
– creating a tax on non-profit health care providers that convert to for-profit corporations.
Legislatively, the Governor’s Budget proposal urges the passage of the Child Victims Act, the DREAM Act, and a comprehensive package of sexual harassment legislation. The Executive budget also proposes a Department of Health study on the feasibility of legalizing recreational marijuana, as well as improvements to New York’s bail and trial system.
If you have questions about the impact of the Governor’s Budget on your organization, do not hesitate to contact me or members of the DHC Government Affairs team for guidance and
counsel. The DHC team is an experienced and strong resource for the diverse clients for which we advocate in Albany, Washington, DC, New York City Hall and towns and cities all across our region.
For the full summary of the 2019 Executive Budget, click here.
For more information contact Steve Malito at email@example.com or at 518-465-8230.
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