State budget agreement includes responsible choices

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Thanks to the activism of CSEA retirees and members, the final New York state budget agreement will continue to safeguard your retirement security.

Union members helped beat back two proposals that targeted state retiree health costs, which would have jeopardized future retirees’ ability to sustain themselves and their families during retirement.

Future public employee retirees with fewer than 30 years of service will not face increased health insurance premium costs under the final 2016-17 New York state budget. CSEA had strongly opposed the initial proposal, noting that it had violated the Taylor Law.

Also out of the final agreement is a plan 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 higher-income retirees.

“We are pleased that that the adopted state budget will continue to support retirement security for our state’s people, whether they are retired or just starting their careers,” CSEA President Danny Donohue said.
This move was among many positive developments in the final spending plan, which addressed many of our union’s priorities and concerns.

The final budget includes $24 million to expand CSEA’s care pilot programs within the Office for People with Developmental Disabilities (OPWDD) and to expand state-operated respite services.

Also in the final budget is legislation to raise the minimum wage to $15 per hour, which will be phased in over several years. New York City minimum wages will rise in 2017 or 2018, depending on the size of the employer. Minimum wage workers on Long Island and Westchester County will earn $15 per hour starting in 2021. For minimum wage workers in the rest of the state, wages will rise to $12.50 per hour in 2020. In 2019, the
Department of Labor is due to study the economy in each region and the effect of the minimum wage increases statewide to determine whether a temporary suspension of the scheduled increases is necessary.

The enacted budget provides a $1.5 billion, or 6.5 percent, increase in school aid, including a full restoration of the $434 million outstanding in the Gap Elimination Adjustment (GEA) and a $627 million increase in Foundation Aid. The education tax credit was not included in the budget.

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