Page 4 - Retiree News Winter 2018
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State budget proposal includes smart investments, concerns for services
ALBANY — Gov. Andrew Cuomo’s proposed $168 billion 2018-19 New York State Budget includes proposals that will help the state weather uncertain support from the federal government, but fails to go far enough to protect all New Yorkers.
A major aspect driving the state budget is the effect of federal
tax reform on New York, and the expected cuts to federal programs such as Medicare and Medicaid to help pay for the tax cuts. The new tax law also caps the deductibility of state and local taxes for many New Yorkers.
The proposed state budget contains $1 billion in new revenue
to help close the $4 billion budget deficit, including a sales tax on internet purchases (with a portion of this tax going to local governments), taxes on opiates (with revenues going to fight the opioid epidemic), vaping liquid and health insurers.
The revenues will offset additional cuts to state agencies and local government aid, both of which
were essentially held flat under the governor’s plan.
“The governor’s revenue
proposals are a step in the right direction,” CSEA President Danny Donohue said. “The revenues are
a smart way to help balance the budget and protect public services from devastating funding cuts. State agencies and local governments have been doing more with less every year, and more cuts would mean more harm to the New Yorkers who need these services the most.”
These New Yorkers include many indigent, poor and uninsured people who receive health care at one at the state’s three safety-net, State University of New York (SUNY) hospitals. The budget includes eliminating the $78.6 million subsidy to the SUNY hospitals and instead provides the same level of capital funding to the facilities.
This shift would endanger the hospitals’ ability to continue to provide health care to all who need services. We will work to get the subsidies restored.
“It is unconscionable that the state would walk away from its responsibility to provide funding for a major public provider of health care,” Donohue said. “The people
these hospitals serve need our help the most.”
The budget also proposes to
cap the state’s reimbursement
of Medicare Part B premiums for retirees in the New York State Health Insurance Program (NYSHIP), and ignores future premium rate increases. This proposal would further harm retirees by eliminating the state’s reimbursement of the Income Related Monthly Adjustment Amounts (IRMAA) for higher-income retirees.
The governor had proposed these items in the past several budgets, but state lawmakers had rejected them. We are again strongly opposed to this proposal.
“The state should not be looking toward retirees for spending cuts,” Donohue said. “For those living on a fixed income, any changes in out-of- pocket expenses for health care can really harm their budgets and well- being. Retirees are already stretched thin. Combined with threats of
cuts to their federal benefits, they especially can’t afford this extra burden.”
We are also strongly concerned
about the state’s proposals for mental health care and juvenile justice.
In the state Office of Mental Health (OHM), the budget cuts 275 full-
time equivalent positions through attrition and allows the reduction of up to 400 state-operated inpatient beds.
“Eliminating direct care staff and reducing the capacity for mental health facilities to care for those with mental illness makes it harder for them to receive services,” Donohue said.
The budget also proposes a $4 million cut in library funding and a $10 million cut to library building aid. CSEA is opposed to these reductions, as libraries provide essential services to New Yorkers of all ages.
“This is a tough budget year and we credit the state for looking at solutions other than further cuts to already-stretched public services, but there is much work to be done,” Donohue said. “We will work to ensure that this state budget is fair for everyone.”
Governor’s 2018-19 New York State Budget proposal, by the numbers:
$168 Governor’s budget
$769 million
proposed increase for K-12 education aid.
DOH DOH DOH DOH DOH DOH DOH DOH
381New full-time equivalent Department of Health positions.
$7 million
Proposed increase for child care funding.
$78.6 million
Amount of proposed subsidies eliminated for the state’s SUNY hospitals.
400 Office
of Mental Health inpatient beds that the agency would be allowed to cut.
total billion state
XXXXXXX
275 proposed reductions of full-time equivalent Office of Mental Health positions.
OMH OMH OMH OMH OMH OMH OMH
$715 million
Total for aid to local governments.
DMV DMV
89 New Department of Motor Vehicles positions.
70 New Department of Transportation positions for snow and ice removal.
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