Governor & Legislative Leaders Announce 2021-2022 State Budget Agreement

Governor & Legislative Leaders Announce 2021-2022 State Budget Agreement

Share on email
Share on print
Share on facebook
Share on twitter
Share on linkedin
DHC law firm header image - New York City skyline

April 7, 2021 — The Governor and the Legislature agreed to the 2021-2022 State Budget yesterday afternoon. As of this update, the Senate has passed all the 2021-22 State Budget Bills, with the Assembly returning to session today to complete the passage process. The $212B package represents a jump in spending of $18B from last year’s adopted State Budget. While the Budget is technically a week late, the budget is inclusive of Federal relief aid due to the COVID-19 pandemic, and includes the following highlights (as provided by the 2021-22 Governor’s Budget Press Release):

  • $1 Billion Small Business and Arts Relief and Recovery Assistance: The FY 2022 Enactment Budget includes a $1 Billion small business, arts, entertainment, and restaurant relief package to help businesses and other organizations recover from the impacts of the pandemic.
    • COVID-19 Pandemic Small Business Recovery Grant Program: Provides $800 million in grant funding for small businesses including for-profit arts and cultural institutions impacted by the COVID-19 pandemic.
    • New York Restaurant Resiliency Grant Program: $25 million in grant funding to support restaurants that provide meals to distressed and under-represented communities
    • Arts and Cultural Organization Recovery Grant Program: $40 million to provide grants through the New York State Council on the Arts to eligible arts and cultural nonprofit organizations to assist in the recovery from the COVID-19 pandemic.
    • Restaurant Return-To-Work Tax Credit: Provides up to $35 million in tax credits to support restaurants hard hit by the pandemic through 2021.
    • New York City Musical and Theatrical Production Tax Credit: Provides up to $100 million in tax credits to jump-start the industry and support tourism activity in the City.
    • Extend and Enhance the Musical and Theatrical Production Credit for Four Years: In order to support musical and theatrical productions that occur in the State but outside of New York City, the Budget extends this credit for four years through 2025 and increases it by $4 million to $8 million.
    • $311 Billion Infrastructure Plan: New York’s $311 billion infrastructure plan includes the Governor’s $211 billion 2020-24 plan and his $100 billion 2015-2019 plan. The evolving plan increased by $36 billion in the budget with the inclusion of new, key elements of the Midtown West Redevelopment of New York City beginning with Penn Station, Belmont Station Redevelopment, a $3 billion environmental bond act, transportation programs, and additional supportive, affordable, and public housing support, along with incremental adds to the existing capital programs.
    • $29 Billion in Public and Private Green Economy Investments: New York will embark on an ambitious Green Energy program that will spur more than $29 billion in public and private investment across the state and create 12,400 megawatts of green energy – enough to power 6 million homes. These investments will not only shift the state to a carbon-neutral economy, fulfilling the goals of New York’s Climate Leadership and Community Protection Act, but also spur the COVID economic recovery. The investments include the largest offshore wind program in the nation, plans to make New York a global wind energy manufacturing powerhouse, constructing a green energy transmission superhighway, a public-private partnership to build nearly 100 renewable energy projects, and supporting transit agencies’ transition to electric buses.
    • New Round of Regional Economic Development Councils: The FY 2022 Enacted Budget includes core capital and tax-credit funding that will be combined with a wide range of existing agency programs for REDC awards totaling $750 million and will target assistance to impacted industries and allow for job creation and retention.
    • Provide $2.4 Billion to Protect Renters: The FY 2022 Enacted Budget creates a $2.4 billion Emergency Rental Assistance Program (ERAP) to ensure New Yorkers can make rent and remain stable in their homes. The program will support households in rental arrears that have experienced financial hardship, are at risk of homelessness or housing instability and that earn less than 80 percent of area median income. The program would prioritize those with the lowest incomes, the unemployed, and other vulnerable populations. Renters in the program will also be eligible to receive relief for utility arrears. The program is funded by $2.3 billion in Federal resources and $100 million of State resources to supplement the core program and target those facing hardship that may not otherwise be eligible. The program will be structured to enable coordinated efforts between the State and the local governments that opted to receive funds directly – leveraging resources, gaining efficiencies, and preventing fraud.
    • Enhancing Nursing Home Quality of Care: The Enacted Budget includes comprehensive nursing home reform legislation to help ensure facilities are prioritizing patient care over profits. These reforms establish minimum thresholds for nursing home spending of 70 percent of revenues on direct resident care and 40 percent of revenues on resident-facing staffing, capping profits at five percent, and targeting unscrupulous related party transactions. Excess revenues recouped by the State will be deposited into the existing nursing home quality pool for further investments for nursing homes to meet high-quality standards. Now, more than ever, it is important that nursing homes are staffed to provide high-quality care and safety for their residents. These initiatives will have a positive impact on nursing home residents and staff, delivering the quality of care needed for the most vulnerable New Yorkers in a safe environment.
    • Secured Federal Support for Local Governments: The Budget includes appropriation authority for local governments to receive Federal support. The historic package of $10.8 billion in Federal aid for local governments is a lifeline to localities, helping to support essential workers and government employees, assist the vaccination efforts, boost local economies, and support the network of local government services that New Yorkers depend on.
    • Mobile Sports Wagering: The FY 2022 Enacted Budget authorizes mobile sports wagering. Once fully phased in, legalization will provide more than $500 million in much needed revenue for the State to help rebuild from COVID-19 and grow what could be the largest sports wagering market in the U.S. into a profitable industry long-term. Under the legislation, the state will issue a Request for Applications and must select at least two platform providers who must work with a total of at least four operators or skins. Once fully phased in, the program will provide $5 million annually to youth sports, and $6 million to combat problem gambling, doubling the resources currently available. The remainder of this new revenue will be dedicated to education.
  • $29.5 Billion in School Aid: The FY 2022 Enacted Budget provides $29.5 billion in State funding to school districts for the 2021-22 school year through School Aid, the highest level of State aid ever, supporting the operational costs of school districts that educate 2.5 million students statewide. This investment represents an increase of $3.0 billion (11.3 percent) compared to the 2020-21 school year, including a $1.4 billion (7.6 percent) Foundation Aid increase. Approximately 75 percent of this increase is targeted to high-need school districts.
A link to the full release is provided here.

For a complete list of proposals and/or if you would like additional 2021-22 Budget information, please do not hesitate to contact our office.

Stay up to date

Subscribe to receive the latest insights and news from DHC.