R etiree NEWS cseany.org Chair: Judy Richards Winter 2016 Governor’s state budget bad for retirees Gov. Andrew Cuomo’s proposed $145 billion budget is full of bad choices and misguided priorities that hurt New York’s people, including their retirement security. Two proposals in the budget ALBANY — The governor’s proposed budget makes plenty of room for grandiose infrastructure projects that seek to inflate the administration’s reputation, but leaves out the necessary funding for public programs that serve our most vulnerable citizens. “Gov. Andrew Cuomo used a big show to make his case that New York is on the move. Billions are proposed to move our state forward, but too many New Yorkers are being left behind,” said CSEA President Danny Donohue. Shortchanging localities The budget also shortchanges localities that are increasingly in need of services. Recently, a century-old water main broke in Troy, which led not only to flooding, but to the loss of water in the city and numerous surrounding communities. This is only an example of how the governor’s specifically target state retiree health costs, jeopardizing people’s ability to sustain themselves and their families and have a dignified, secure retirement. “The state budget proposal puts aside plenty of money to supposedly move the state forward through infrastructure development and other pet projects, but it doesn’t provide the services and resources that people truly need,” CSEA President Danny Donohue budget isn’t doing enough for people. In addition, the spending plan continues wasteful corporate welfare and economic development schemes that fail to produce the jobs they promise. Pet projects over people The budget also includes $1 million to fund a commission to study proposals that could be proposed at a constitutional convention, which CSEA strongly opposes. The proposed spending plan is more about big-ticket spending for political pet projects and less about investing in the daily needs of the people who live here. For example, flawed plans and inadequate funding in mental health and developmental disabilities programs have long rankled CSEA. They not only hurt people in need, but also create challenging working conditions for CSEA members in those fields and create social and financial upheaval in local communities. There are more people receiving mental health services in local jails than in state psychiatric centers and the cost is shifted to already hard-pressed local taxpayers because of the state’s irresponsibility. While shortchanging localities on state aid, the Cuomo administration has repeatedly pushed a local government consolidation plan. Citizens have often voted down consolidations in the past because of valid concerns about loss of accountability, and a reduced ability to meet the needs of the people those governments are tasked to serve. Fiscal experts generally agree that consolidation will provide little, if any, savings for taxpayers. Budget billions don’t add up said. “It’s not retirement security if our people are struggling to get by after working for years and thinking they are earning a secure retirement, only to cruelly discover that they are not.” Capping reimbursements The budget includes a proposal to freeze Medicare Part B reimbursements to New York State Health Insurance Program (NYSHIP)-enrolled retirees at $104.90 and end any reimbursement of the increased costs of Part B for high-income retirees. Despite this reimbursement, Medicare places a surcharge on retirees who earn $85,000 or more. New York state reimburses these higher-income retirees between $584 and $3,216 per year, with the amount depending on the retirees’ income. The state wants to end these reimbursements. Retirees in NYSHIP are shifted over to Medicare when they turn 65, which saves NYSHIP billions of dollars. Raising health costs violates Taylor Law Another ill-advised budget proposal is a plan to raise health insurance premium costs for anyone who retires on or after Oct. 1, 2016. The state is proposing that retirees with fewer than 30 years of service pay proportionally more for their health premiums, in some cases up to 65 percent of the premium. This proposal does not affect police, fire and state corrections officers. While current retirees are not affected by this proposal, this plan is a violation of the Taylor Law. “The governor is attempting to change the terms of our collective bargaining agreement for active state employees through the budget process and we are not going to let him get away with it,” Donohue said.
Retiree News Winter 2016
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