Tuesday, January 19, 2021

CUOMO PROPOSES WORST CASE AND FAIR FUNDING BUDGETS FOR YEAR AHEAD

The sky might be falling or it might not be in New York State. The state has a $15 billion dollar deficit in the midst of a pandemic but Governor Andrew Cuomo is proposing two state budgets, one has huge cuts and tax increases while the other actually calls for a modest increase in spending and no higher taxes for the 2022 fiscal year that starts in April. The budget that will be in place depends on whether the federal government comes to the rescue. 

From Rochester First.com:

Tuesday the governor presented two budget proposals, each contingent on different aid packages from the federal government. The first budget, called a “worst case scenario” projects $6 billion in aid from Washington, while the other budget, “called a “fair funding scenario” projects $15 billion from D.C.

State of Politics explains further:

In one world, New York gets $15 billion in aid from the federal government to make up for the revenue that evaporated over the last year amid the worst of the COVID-19 pandemic in the spring. 

In another world, New York only gets $6 billion from Washington, forcing spending reductions, tax increases, and more borrowing.

Gov. Andrew Cuomo presented a sliding doors style budget — one that considers the "best case scenario" of $15 billion that closes a budget gap and the worst, which does not get New York halfway there. 

A lot is riding on whether incoming President Joe Biden, who is sworn into office on Wednesday, can win passage of a multi-trillion-dollar stimulus package in a Congress that is narrowly controlled by Democrats. Biden has proposed $350 billion for state and local governments. 

The governor is placing his faith in Biden, who has been allied with, as well as House Speaker Nancy Pelosi and the incoming Senate Majority Leader Chuck Schumer, a New Yorker. 

Cuomo praised all three, but noted the federal government remains responsible. 

Under the best case, New York is able to continue to phase a $400 million tax cut for middle-income earners and increase education spending by $3.8 billion. The state would also be able to create a $130 million COVID relief program for businesses, especially restaurants and theaters, that have been hit hard by the crisis. 

Cuomo also proposed $350 million for legalizing cannabis for adult retail sale in the state, along with a $100 million "social equity fund" for communities affected by strict drug laws.

But the bigger question becomes what happens if New York does not get $15 billion. Cuomo said New York would face a mix of tax hikes, spending cuts and borrowing to cover the budget gap. 

Progressives in the state Legislature are likely to push for tax increases no matter what, pointing to the widening income gap created by the pandemic.

NYS budget is due before April 1. Can Congress get a bailout for the states by then? I think so. 

City and State delves into some of the budget details in their coverage:

$192.9 billion – Total spending for fiscal year 2021-2022, according to the new executive budget proposal. State lawmakers approved a $192.7 billion budget for the current fiscal year.

$10.2 billion – The decline in state revenues this year compared to projections from February 2020.

$15 billion – The total budget gaps in fiscal years 2021 and 2022, according to the governor, who is requesting that amount in new federal funding.

$3.7 billion – Total tax increases the governor will propose if $15 billion in new federal aid is not approved by the April 1 budget deadline.

$6 billion – Amount of new funding that the state is assuming it will receive from the federal government over the upcoming two years.

5% – The share of the 20% reductions in state aid to local governments in the current fiscal year that the governor proposed to make permanent in his executive budget.

$130 million – The size of a Pandemic Recovery and Restart Program proposed by the governor. This includes $50 million in new aid for restaurants as well as $50 million for a business rehiring tax credit and $30 million to fund a new musical and theatrical tax credit.

$350 million – Projected state revenues in the first year following the legalization of recreational marijuana. Cuomo proposed that $100 million of this revenue should be earmarked for a social equity fund.

$500 million – Expected annual state revenues from legalizing mobile sports betting.

$31.7 billion – Total amount of total school aid proposed by Cuomo, a $2.1 billion increase from the current fiscal year.

$24.2 billion – Total proposed Medicaid spending in the new executive budget.

The more progressive State Legislature will have their say too so this is just the beginning. I guess this is cautious optimism.

31 comments:

Anonymous said...

Breaking Exodus News

That crowd on the George Washington Bridge heading South Just got large.

*NY Gov. Andrew Cuomo Proposes Raising the Top Income Tax Rate to 10.86% From 8.82%

*NYC Residents in Top Income Bracket Would Pay a Combined City & State of 14.7% Highest in Nation

James Eterno said...

4:11, That is the worst case scenario with tax increases. That is no longer very likely with Biden as president and Chuck Schumer as Senate Majority Leader.

Anonymous said...

Many people are predicting rising (even exploding?) inflation. Will our salaries rise accordingly or will they be devalued?

Anonymous said...

BEST GIGS IN D.O.E. RIGHT NOW
ATR ASSISTANT APRINCIPAL high school level
ATR TEACHER high school level
SPEECH TEACHER high school level

Anonymous said...

It would be nice if the state and city stopped wasting money first before burdening the working class.

Anonymous said...

File for Bankruptcy. We can't afford these 6 figure pensions in NYS. Cut jobs and reduce spending

Anonymous said...

Why would you think an ATR teacher in high school is the best gig? Have you ever been in the ATR. I think it is morally degrading. For some who don't want to teach and still earn a paycheck, it's a good fit, but not for someone who likes to teach. I would trade with someone in a second for a valid position and he/she can be an ATR.

Not ready to Die said...

5:54

Hate the UFT if you choose.

DONT HATE TEACHERS WHO EARNED A PENSION.

Are you a Coke brother by chance ?

Anonymous said...

Exactly. Don't let the veteran teachers suffer. It is much wiser to cut all the fat at the doe which is a lot. I know we've said this a million times before, but all the useless pds and programs (renewal), social programs, the ATR pool, useless consultants and all the bureaucrats at the doe and Deputy this and that.

Anonymous said...

The UFT should use dues and COPE money to send deBlasio on an all expense paid trip around the world until his term is over. (Peter Luger’s is closed after all.) It’s utterly astounding, in the worst possible way, what DB’s done to NYC and he still has another year left. If Biden sends money to NYC, DB will siphon off a great deal of it via his wife and friends, and he’ll still cry poverty for NYC, (which will be true with him as mayor) - at which time Mulgrew will agree to every horrendous giveback imaginable and asked. It doesn’t matter what Biden gives, with Mulgrew and deBlasio, it’s always the worst possible scenario imaginable.

Anonymous said...

Thank you, President Trump for pardoning Sheldon Silver. He was a great friend to teachers in New York City. I’m also extremely happy that it makes Governor Cuomo upset. He must think Silver’s crimes were greater than his own. Cuomo’s comments concerning his thoughts on why he was pardoned were appalling and anti-Semitic. Perhaps Biden will pardon him some day for his manslaughter of 6500 senior citizens.

Anonymous said...

It’s not teacher pensions that drain the system. It’s the cop , fireman pensions that are usually in excess of 150,000. Suffolk county and Nassau cops retire with pensions of 200k. It is completely ridiculous.

Anon2323 said...

@4:33 do not forget PE high school in small school. Good for me, shoot `19 years 115 days in CAR well deserved.

Let's continue to bail out the imbiciles who waste our cities money, like the 800 million Diblasio wife lost, that's only one example, billions have been mishandled. Let's give them money and make everything alright. Instead of spring break pay, how about a 4.5% raise off the bat for next contract.

Anonymous said...

History tells us that any money the doe sees will be wasted on useless bullshit. NY is the next California. The most recent person I know who has left NY, works remotely and went from a 5.5% state tax to zero% and his property/school taxes went from 9k to 2k. He saves 14 thousand per year out of NY. Our tax base is leaving. Cuomo and DeBlasio are in denial.

Just an Endangered CL said...

How the hell are there still ATRs? Mayor-UFT (MUFT)& DOE all kept saying they don't have enough teachers! Why, if only we had a union that supported ATRs (or any member for that matter) each one of them would now have a permanent position.

Best comment! 8:03: "with Mulgrew and deBlasio, it’s always the worst possible scenario imaginable. "

Don't hide in shadows - tell your colleagues what is happening with our union. Although this may be a fool's errand with fixed-elections in the UFT, but maybe there's a slim chance we can vote out UNITY.

TeachNY said...

Even though I’m part of it, pensions have gotten insane. Especially the ones out in Suffolk and Nassau.

Anonymous said...

Cop / fireman pensions have gotten insane. Nassau / Suffolk cops routinely pull in over 200k pensions. Teachers making 60-100k pension is NOT the issue.

Anonymous said...

@5:31 AM

Serious question - where did your friend move to? My family and I are actually looking to leave New York State in Summer of 2022 and are trying to narrow down our options.

Want to move somewhere with lower COL and low property taxes.

Anonymous said...

I'm moving to Nevada

Anonymous said...

I bought a place, 4 minute walk off center las vegas strip.
Manhattan-$2 million. Vegas-$300k.

Anonymous said...

@8:10 PM and @9:40 PM,

It is poster 6:47 PM here.

I was actually born in Nevada, in Reno. I am a bit on the younger side and my sister is studying nursing. We are looking for a place with a diverse job market (meaning not solely focused on one industry, but location that offers job opportunities in various industries).

Any suggestions?

Sorry if it isn't related to the post, but the only places we know people moving from NYC are Texas (which is a bit too hot for us - dad is a heart patient). And WA State (not Seattle, outer suburbs) however seems even worse than NY with the homelessness and drug addict crisis.

Just an endangered CL said...

Pensions are not insane. They are a benefit earned by taking a job that pays significantly less per hour in NYC for a person with a comparable masters degree + additional credits. Once you factor in all the hours we actually work we're paid less per student than a tutor.

What is insane? All the money the Mayor and DOE are throwing away on a ton of useless programs at a time when we're 16 billion in the red.

Of course a 1-cent per share increase would immediately rectify the deficit, but let's no go there. Wait until NY claims bankruptcy and our "strong" union offers up our pensions...

F-MUFT

Just an Endangered CL said...

Let me rephrase that - we're paid less per student than a 15-year old babysitter.

Anonymous said...

My niece in ohio teaches sunday school one hr a week on zoom.she is a college student.i asked what she earns, suggested maybe 20$ an hour.she said90$!that is almost double of our per session, with a masters plus 30 at doe.if she worked a school day, it would be like top salary at doe.she is not even studying education!

Anonymous said...

Speech teachers are working
But librarians???

Anonymous said...

Get out! No one wants you here anyway. Just finished writing the Gov, Mayor, elected officials.. Bring back the full commuter tax!! And time to put tolls on Queens Nassau/Bronx Westchester border.. Sick of the free riders. You want to work here and have NYC taxpayers pay your salary, health insurance and pensions.. You need to pay. Drop the attitudes. Show some gratitude. Or Quit, no problem.

Anonymous said...

11:38

I am a highly educated teacher and my students receive a top-notch education. Their parents thank me; they return after college and thank me.

You get what you pay for - Do you want better education for these kids? Then you need to pay for it. Instead of complaining about teachers' salaries and benefits, complain about all the wasted tax dollars on the administrators and Central. They do less than nothing for the students and make top dollar for it.

So how about you drop the attitude & show some gratitude?

F-AMY&MUFT

Anonymous said...

Already got out 11:38. Ooooohhhh the threat of more taxes. Who’d a thunk a democrat would call for more taxes. Your city is dead. I see you’re in the anger stage of grief.

Anonymous said...

@7:38 AM

Genuinely curious - where'd you head out to? Looking to leave NYC in Summer of 2022. Would love to learn where fellow NYC teachers are heading out.

Anonymous said...

821 Putnam, Dutchess, Orange Counties have many nice areas with good schools. I personally prefer Putnam and Orange.

Anonymous said...

@7:33 AM

Thanks for the suggestions for upstate. Any other teachers on here who know teachers that left NYS?
Younger teacher no where close to retirement.
Sorry - I know it is not related to the post. Just trying to get a feel for where NYC teachers fared well and enjoy living at outside of NYS.