Addabbo Responds to Cuomo's Executive Budget

Urges District Residents to Contact His Office to Have Questions Answered

Queens, NY – NYS Senator Joseph P. Addabbo, Jr. (D-Queens) released the following statement today regarding Governor Andrew Cuomo’s Executive Budget:

While our state may not have found its way out of the woods yet when it comes to its fiscal problems, I believe Governor Cuomo has delivered a credible way of how to find its way there. 

The Executive Budget is the starting point for debates and discussions on how to address the fiscal demands of the state and simultaneously protect the essential services it provides for the people.

During the state’s budget process over the next two and a half months, I will work on many related issues such as supporting our senior centers through Title XX funding, protecting the Office for People with Developmental Disabilities (OPWDD) budget, and the hydrofracking issue. 

I will also continue my efforts on restoring the funding of those entities that have not received financial support in my district ever since local discretionary monies were eliminated in the state budget two years ago. Credible youth programs, schools, community groups, senior centers and veterans organizations have suffered greatly due to the lack of local state funding.

Since our state budget is largely comprised of taxpayer dollars, I encourage all residents to call my office with any questions on the budget process.

Cuomo Budget Outlines Vision for Reforming NY

"This Budget Represents the Next Step in Our Plan to Transform New York State"

On January 17, Governor Andrew Cuomo unveiled his 2012-13 Executive Budget and Reform Plan, which expands on the historic reforms enacted last year to continue building a New New York. As a result of the tough decisions and bipartisan cooperation of the past year, the State is able to close the current deficit without broad cuts, new taxes, fees or gimmicks.

In addition, the Governor's Executive Budget proposes major reforms to reduce the cost of government for taxpayers, implements accountability in our schools to put students first, and puts the State in a position to leverage billions of dollars in private sector investment to grow the economy and create jobs.

"Because of the tough choices and the historic reforms we achieved last year, we are able to propose a pro-growth budget, tackle broad fiscal reform, drive accountability in our schools to put students first, and leverage tens of billions of dollars of new investment to create jobs without significant cost to the taxpayer," Governor Cuomo said.

"Through fiscal discipline and working in partnership with the private sector, we are making New York a pro-growth State once again. This budget represents the next step in our plan to transform New York State."

The Governor's Executive Budget closes the current $2 billion budget deficit with no new taxes or new fees. It also proposes sweeping mandate relief and pension reform that will save taxpayers and local governments billions of dollars and launches historic education reform to put students ahead of the education bureaucracy.

The Executive Budget also lays the groundwork for an innovative $25 billion economic development agenda, funded largely by leveraging billions in private sector investment rather than by taxpayer dollars.

The State operating budget increases by less than 2 percent while honoring the two-year commitment made in 2011-12 to increase School Aid and Medicaid funding at approximately 4%.

Highlights of the plan include: Closing the current budget gap with no new taxes, fees or gimmicks, and including zero growth in State agency spending; Eliminating automatic spending inflators and implementing reforms throughout the budget to ensure that spending increases for service providers reflect performance and actual cost; allocating $1.3 billion in State investment designed to spur a total of $25 billion from other sources to launch and accelerate major infrastructure projects and create thousands of jobs; creating a plan for the State to take over 100% of the costs of Medicaid growth that will be phased in over three years, saving local governments $1.2 billion over the next five years; creating a pension reform plan that will save State taxpayers and local governments outside New York City $83 billion, and will save New York City $30 billion over the next 30 years; and increasing school aid by $805 million, including $250 million linked to improved academic performance and management efficiency, and implementation of an enhanced teacher evaluation process.

Due to the structural reforms enacted in last year's budget as well as the reforms proposed in this budget, the budget gap in 2013-14 is projected at $715 million. That is the lowest "first out-year" budget gap in two decades. The Executive Budget recommendations cut the projected four-year deficit by more than half, from $16.4 billion to $7.4 billion.

The Executive Budget includes: all Funds spending of $132.5 billion in the fiscal year that begins April 1, 2012, a decrease of $225 million from 2011-12. The back-to-back decline in All Funds spending represents the first time in decades that this has occurred; and State Operating Funds spending of $88.7 billion, an increase of $1.7 billion, or 1.9 percent. State Operating Funds exclude federal funds and long-term capital spending.

Financial Plan

The financial plan outlined by the Governor is based on the principles of fiscal discipline and reality-based budgeting that do not include using new taxes, fees, or one-shot gimmicks. State agency operations growth is held flat, while local assistance programs grow by 2.6%.

Maintain fiscal discipline: The $3.5 billion budget gap identified in December is closed through $2 billion in spending reductions in the Executive Budget proposed today, and $1.5 billion in revenues from the middle-class tax reforms enacted last year that made the tax code more fair and equitable.

Even with 4% increases in education and Medicaid spending, and a 2.6% increase in Aid to Localities, there will be a net reduction in All Funds spending. Zero growth in State agency spending is achieved by redesigning State agency operations to reduce duplication, redundancy and waste.

Eliminate and reform automatic growth inflators: Last year, the Governor brought reality back to the definition of "deficit" in Albany by eliminating certain automatic inflators and pegging increases in education and Medicaid spending to rational and affordable measures of growth.

These actions saved New York billions of dollars and helped to stabilize the State's finances. The 2012-13 financial plan works to further control automatic cost growth and tie growth to rational measures. For 2012-13, inflators like cost of living adjustments will be kept flat and reforms will be introduced to ensure that spending increases in future years reflect performance and actual cost.

Economic Development

The 2012-13 Executive Budget funds a comprehensive and coordinated blueprint for economic development. The plan is designed to create jobs in New York State through public-private partnerships that leverage State resources to generate billions of dollars in economic growth, improve the State's infrastructure and support regionally-based economic strategies.

Leverage State assets to spur billions in private sector investment and create thousands of private sector jobs: The Executive Budget lays the groundwork for an innovative $25 billion economic development agenda, funded largely by leveraging billions in private sector investment rather than taxpayer dollars.

The New York Works Fund and Task Force will coordinate $1.3 billion in State funding to spur up to $25 billion in investment from other sources, including private companies, the federal government, and authorities, to allow major projects to move forward that will create jobs and improve the State's infrastructure.

To accelerate select infrastructure projects with maximum economic impact, the Governor's plan will use provisions from the Design Build legislation, which was passed in the 2011 December extraordinary session, that will allow projects to begin now and reduce costs by hundreds of millions of dollars.

A Second Round of Regional Economic Development Awards: The budget includes a new round of $200 million in competitive resources for the Governor's Regional Economic Development Councils. Of this total amount, $130 million is capital funding included in the New York Works program and $70 million comes from Excelsior Tax Credits.

The Councils have transformed the State's economic development approach from a top-down model to a bottom-up, community-based one. The second round of awards will allow each region to continue shaping its own economic destiny.

Re-imagining Government

The Executive Budget builds on Governor Cuomo's work to reinvent state government to perform more efficiently and better protect taxpayer money. The Executive Budget provides additional funding for the work of the Regional Economic Development Councils, and advances SAGE commission proposals to reverse decades of bureaucratic growth and refocus agencies' operations in ways that benefit service recipients and taxpayers alike.

The Governor is also proposing sweeping structural reforms to relieve local governments of State mandates that drive up local costs. These reforms, which address the largest cost-drivers for local governments, will help municipal leaders meet the pressures of the prolonged economic downturn, and will help local governments meet the goals of the property tax cap.

Healthcare Redesign: The Executive Budget calls for continued reforms to make the State's health system perform better and cost less. By enacting the Health Exchange, 1 million uninsured New Yorkers will gain coverage. It will reduce costs to individuals who purchase coverage directly by 66% and small businesses by 22%, all financed by the federal government at no cost to New York.

Reduce burden on counties by taking over Medicaid growth costs: Medicaid growth is a major cost driver for counties. In 2006, the State capped the amount of Medicaid cost growth that counties have to pay. Currently, the cap is 3% of growth; all growth over 3% is paid by the State. To provide significant fiscal relief to counties and to New York City, the State will phase in a 100% takeover of the costs of Medicaid growth.

In the 2013 fiscal year, the county cap will fall to 2% of Medicaid growth; in county fiscal year 2014, the county share will be reduced to 1%. Starting in county fiscal year 2015, the State will pay 100% of the costs of Medicaid growth. The takeover by the State of a greater share of local Medicaid expenses will save counties and New York City $1.2 billion over the next five years.

Enact pension reform: Next to Medicaid, pension costs are the most significant burden on local governments. The Governor called for a new tier in the State pension system that will save the State and local governments outside of New York City $83 billion and New York City $30 billion over the next 30 years.

The new pension plan would have progressive contribution rates between 4% and 6% with shared risk/reward for employees and employers to account for market volatility. It includes a voluntary option for Defined Contribution following the TIAA-CREF model. Employees taking this Defined Contribution will vest in this system after one year. This option will be portable. No current employees will be affected by the Governor's pension reform plan.

Aid to Local Governments: In addition to these reforms, the Executive Budget provides $715 million to local governments in unrestricted operating aid, and an additional $79 million in grants to promote greater efficiency.

The budget also reforms the Early Intervention program to reduce counties' administrative burdens and cut their costs by $99 million over five years, and reforms the Preschool special education program to reduce costs for counties outside of New York City by $150 million over five years. The Executive Budget does not include any cuts to Early Intervention or Preschool special education services.

Reforming the State's Education System

The Executive Budget includes major reforms to the State's public education system that are aimed at bolstering student achievement and improving efficiency for the taxpayer.

Increase in School Aid: The budget includes a total increase of $805 million in School Aid, including $250 million for performance grants linked to improved academic performance and management efficiency. High need school districts will receive 76 percent of the 2012-13 allocated increase and 69 percent of total school aid. The additional aid is linked to implementation of an enhanced teacher evaluation process.

Teacher Evaluation System: The Governor announced that the State Education Department and school employee unions will have 30 days to agree on a new effective teacher evaluation system or the Governor will propose an evaluation system in the 30 day budget amendments. Schools will be given one year to implement the system or risk forfeiting an increase in education aid in the 2012-13 and 2013-14 school budgets.

Program Overview

Environment and Energy: This year's Executive Budget maintains services at current levels for parks, environment and agricultural programs, and makes capital investments to strengthen infrastructure and improve energy management. The Executive Budget continues to support critical programs, including the Environmental Protection Fund, which will be maintained at $134 million, the same level as in 2011-12.

As part of the New York Works program to accelerate capital infrastructure projects statewide, the Budget includes $102 million in new funding for DEC to advance flood control, coastal erosion and critical dam safety projects, and $94 million for the large backlog of capital rehabilitation and improvement needs in 48 State parks and historic sites as well as the ski facilities operated by the Olympic Regional Development Authority.

Health Care: The Executive Budget reflects the continuation of the Medicaid spending cap enacted in 2011-12 and recommends a 4% funding increase consistent with its provisions. To achieve savings needed to address the State's budget gap, the Budget recommends $19.2 million in reductions to public health and aging programs, including $3.5 million in savings from administrative efficiencies.

Higher Education: Consistent with the provisions in the NYSUNY 2020 Challenge Grant Program, the Executive Budget maintains General Fund operating support for SUNY and CUNY colleges at prior-year levels.

The Executive Budget also accommodates authorized 2012-13 tuition increases by providing $113.2 million in additional spending authority for SUNY and $66.6 million for CUNY. The Executive Budget maintains base operating aid funding for community colleges at 2011-12 levels of $2,122 per full-time equivalent student.

Human Services: The Executive Budget provides funding for core supportive services for needy populations, limits spending growth to address the State's fiscal challenges, and implements measures to improve program performance. In child care, the Executive Budget increases General Fund support for child care subsidies by $93 million to offset a reduction in funding through the Federal Temporary Assistance for Needy Families (TANF) program.

Mental Hygiene: The Executive Budget supports significant and fundamental reforms that will strengthen the oversight of care provided to individuals in institutions and community residences. It also makes investments to improve the accountability of mental hygiene agencies, and reforms the payment process for not-for-profit providers. These proposals result in mental hygiene system funding of $8.2 billion in 2012-13, an annual spending increase of $85 million, or 1.0 percent.

Public Safety: The Executive Budget advances key initiatives to enhance public safety, including expanding the DNA database to include all crimes and improving emergency response and preparedness, while supporting recovery from Hurricane Irene and Tropical Storm Lee and continuing to lower the cost of ongoing operations. The budget includes $4.6 billion to protect New York's residents.

Revenue Actions and Tax Reform: This budget includes no new or increased taxes or fees. The Executive Budget proposes tax enforcement and loophole closing actions to ensure that all individuals pay their fair share of tax liabilities.

The budget includes $1.5 billion in net revenues in 2012-13, reflecting fair tax reform enacted in December that implemented a new tax bracket for higher income earners, cut taxes for middle class New Yorkers to the lowest level in 58 years, and increased the overall fairness of the tax system.

Transportation: The Executive Budget makes strategic and accelerated investments in the State's highway and bridge infrastructure including a new $1.16 billion in New York Works State and federal capital funds that will create jobs and improve the transportation system to support business and economic expansion.

The New York Works program will accelerate capital investment, building upon core transportation funding, to provide a total DOT capital program of nearly $4.5 billion in 2012-13, including highways, bridges, rail, aviation, non-MTA transit, and DOT facilities.

Funding for local highway and bridge projects under the Consolidated Highway Improvement Program is maintained at $402.8 million. The MTA's capital program will receive $770 million in new State support over a multi-year period to help fund the MTA's $22.2 billion 2010-14 program. 

PEF, Cuomo Reach Tentative Agreement

Contract Terms Avert PEF Layoffs

Governor Cuomo announced that his administration has reached a five-year labor agreement with the New York State Public Employees Federation (PEF). PEF is one of the largest local white-collar unions in the United States and is New York's second-largest state-employee union. PEF represents 54,000 state employees.

The agreement mirrors an agreement reached last month with the Civil Service Employees Association (CSEA) and includes a freeze on base wages for 3 years and a redesign of the employee health care contribution and benefit system, saving $75 million this fiscal year, $92 million next fiscal year, and almost $400 million over the contract term. If adopted by the state's other collective bargaining units, the agreement will reduce workforce costs by over $1.5 billion over the course of the agreement, averting PEF layoffs due to the state’s fiscal crisis. “

"This agreement reflects the financial reality of the times. I am pleased that we could avoid these layoffs, protect the workforce and the taxpayer," Governor Cuomo said.

"This was a difficult agreement to reach, but with our members' jobs in peril and the state’s fiscal hardship we've stepped up and made the necessary sacrifices," said PEF President Ken Brynien.

"The agreement will preserve our members jobs and careers while bringing long term fiscal stability to the state. We are confident this is the best agreement that could be negotiated in the current environment."

As a result of this agreement, Director of State Operation Howard Glaser directed agencies to rescind the 20-day layoff notices that were sent out to members.

Base Wages: Under the five year agreement, there will be no general salary increase in Fiscal Year 2011-12; 2012-13; 2013-14. Employees will receive a 2 percent increase in 2014-15 and 2015-16.

2011-12: 0%

2012-13: 0%

2013-14: 0%

2014-15: 2%

2015-16: 2%

Savings: The 2011 wage agreement is $2.5 billion less costly to the state than the 2007 agreement, if adopted through the state workforce.

Health Care System Redesign: The agreement includes a series of reforms in the employee health care system which will save $54 million annually and $248 million over the contract term, for PEF alone.

Health Care Contributions: The agreement includes substantial changes to employee health care contributions bringing public employee benefits more in line with the private sector. The contribution for health care benefits have not changed in 30 years, while the cost of the state's health care program has increased 100 percent in the past decade. The agreement reflects a two percent increase in contributions for Grade 9 employees and below, and a six percent increase for Grade 10 employees and above. (Under the agreement, for example, the state will pay 69 percent of family coverage for a Grade 10 employee and above, and the employee will pay 31 percent. The prior split was 75 percent state/25 percent employee. For individual coverage, a Grade 10 employee and above will pay 16 percent and the state share will be 84 percent. The prior split was 10 percent employee/90 percent state).

Savings: The PEF agreement results in $42 million in annual savings from this provision, and $193 million over the contract term.

Health Care Opt Out: For the first time, the state is offering an opt-out option. Health care premiums cost $16,600 for family coverage and $7300 for individual coverage. Employees electing to opt out of the health insurance program must provide proof of alternative coverage and will receive $1000 or $3000 for the cessation of individual or family coverage, respectively. This will save the state thousands of dollars for each employee who opts out.

Savings: The opt-out will save $5.8 million annually and $25 million over the contract term for PEF alone.

Health Benefit Redesign: The health benefit plan system of co-pays, deductibles, and programs has been redesigned to encourage healthy choices and control costs of pharmaceutical products. For example, for the first time the plan will cover the use of nurse practitioners and "minute clinics" and encourage employees to use these services when appropriate instead of hospital emergency rooms.

Savings: The PEF savings for this provision are $8.6 million annually and $37 million over the contract term.

Deficit Reduction Leave: Under the agreement, employees will take a five day unpaid deficit reduction leave during fiscal year 2011-12 and four days unpaid leave during fiscal year 2012-13. The value of the days taken not worked will be deducted from employee pay over the remaining pay periods equally during the fiscal year in which they are taken. Employees will be repaid the value of the 4 days from 2012-13 in equal installments starting at the end of the contract term.

Savings: The furloughs will yield $360 million in savings if adopted by all bargaining units. Performance advances, longevity and retention payments: Performance advances and longevity payments will continue to be in effect. Current employees who remain active through 2013 will earn a onetime retention payment of $775 in 2013 and $225 in 2014 in recognition of working without a wage increase for three years.

Layoff Protection: PEF employees will receive broad layoff protection for fiscal year 2011-12 and 2012-13 arising from the $450 million budget gap. Workforce reductions due to management decisions to close or restructure facilities authorized by legislation, SAGE recommendations or material or unanticipated changes in the State's fiscal circumstances are not covered by this limitation.

The tentative agreement must be ratified by PEF rank and file members.

Negotiations for the State were led by a special team appointed by the Governor comprising Todd R. Snyder, Senior Managing Director of Rothschild Inc. and Co-Head of Rothschild's Restructuring and Reorganization group; and Joseph M. Bress, former head of the Governor's Office of Employee Relations and former Vice President of Labor Relations at Amtrak, under the direction of Howard Glaser, Director of State Operations.

Image courtesy of http://www.csea9200.com.

Cuomo: 'The Senate's Failure to Act Last Night Was Unacceptable'

New York Governor Issues Statement on Rent Regulations

"Affordable housing is an all too scarce commodity, especially in New York City and the surrounding areas. Our state's rent protection laws are essential and any long term expiration would create a crisis. Last night the State Senate -- both Democrats and Republicans -- failed to continue the laws beyond their expiration.

"We are making progress but the Senate's failure to act last night was unacceptable and a betrayal of the one million tenants living in rent protected apartments. I will not allow the legislature to go out of session and go home until tenants are protected. I am prepared to call special session to keep the legislature in place until there are rent protection laws in place."

New York State Officials Ready for Dangerous Storms

Cuomo Activates State Emergency Operations Center to Monitor Severe Weather Response

Governor Andrew M. Cuomo today activated the State Emergency Operations Center to ensure a rapid and coordinated response to severe weather events occurring across New York. "With severe weather impacting large portions of New York, state government is working proactively with our partners on the local level to ensure the safety of our residents and to make sure we can respond quickly to any storm-related problems," Governor Cuomo said.

"Flooding and dangerous storms are a real threat to people and property. I urge residents in areas where severe weather is occurring to monitor local news broadcasts and heed any emergency orders from local officials."

Measures taken in preparation for the storms include the following:

The State Office of Emergency Management is in contact with affected counties and local governments for a continual and real-time assessment of safety risks and clean-up operations.

State Emergency Management field staff have been deployed to impacted areas.

State Police and the Department of Transportation have enacted their storm plans and are assisting local first responders.

State Police airboats are prepared for rescue operations.

The Office of Fire Prevention and Control's Swift Water Rescue Team is prepared for rescue operations.

As of 11:00 AM, April 29, there are approximately 21,100 customers without power statewide. The scattered outages are a result of the recent thunderstorm activity. NYSEG is reporting 8,200 customers out, National Grid is reporting 8,500 customers out, and RG&E is reporting 4,400 customers out. NYSEG and National Grid cite tree damage from the storms as the leading cause of the outages over the past 24 hours. Lightning strikes have also resulted in a number of blown fuses.

For more information on what to do in an emergency, you can visit the State Office of Emergency Management website at www.dhses.ny.gov/oem/.

Photo source: http://www.nssl.noaa.gov/headlines/dszpics.html
Author: Daphne Zaras
Permission: Public Domain

Governor Cuomo, Council 82 Reach Historic Workforce Agreement

Wage Freezes and More Equitable Employee Health-Care Contributions Included in Contract

Governor Andrew Cuomo and Council 82, the labor union representing New York State's law enforcement officers, have reached an historic contract agreement.

The agreement includes wage freezes through the 2013-2014 fiscal year, elimination of so-called 'step increases,' more equitable employee health care contributions, and major reforms to health care benefits and overtime.

"I applaud Council 82 and its leadership for understanding the problems of the state, and realizing that through shared sacrifice, we can get New York on the road to recovery," Governor Cuomo said.

"This is a model the other unions negotiating with the state can follow. If similar contract terms were adopted by New York's other public employee unions, the state could achieve the $450 million in savings needed to avoid the 9,800 layoffs projected in the enacted budget. I also want to thank and commend our lead negotiators Todd Snyder and Joe Bress for their tireless work on behalf of the people of the state."

"This is a responsible agreement that is in the best interest of our members, the State of New York, and the taxpayers. It brings a long overdue contract to completion. It demonstrates the Cuomo Administration's commitment to working with its labor partners and its commitment to these employees and their important work.," said Jim Lyman, Executive Director of Council 82.

"Council 82 looks forward to continuing the good working relationship that we've developed with the Governor and his staff and supporting him in his efforts to restore our state government and making it work for the people again."

Highlights of the agreement include wage modifications: zero wage increases for fiscal years 2011/2012, 2012/2013, and 2013/2014, and eliminating performance advances or "step increases".

Health Insurance Premium Contribution

In order to align state employee health care costs with other states and the private sector, the agreement will increase the employee contribution for health care premiums. Individual members' share of health care expenses will increase from 10 percent to 20 percent.

Employees electing family coverage will pay 35 percent of the share of dependent health care costs, an increase from 25 percent. If adopted system-wide, these changes would save $178 million in the first year with increasing recurring savings in future years.

Health Care Benefit Redesign

The agreement also includes a redesign of the state employee health care benefits. If the reforms agreed to by Council 82 are adopted system-wide, these changes would save $196 million in the first year, including hospital coverage savings of $51 million, medical coverage savings of $58 million annually, and prescription drugs coverage savings of $87 million annually, with increasing savings in future years.

Examples include: Employees will be encouraged to use outpatient hospital services. A co-pay will be charged for in-patient services; Co-pays will be introduced for in-network emergency room visits, radiological and lab work and other hospital service; Medical visit co-pays will be increased but there will be no deductible for in-network services; Employees will be encouraged to use less expensive mail order prescription drug refills.

Reform Sick Leave Credit

Reduce amount of unused sick leave which can be credited toward reducing health care insurance premiums in retirement. System-wide savings would amount to approximately $45 million annually

Overtime Reform

Overtime compensation would be reformed to exclude sick days from accrual of time worked for purposes of qualifying for overtime compensation. System-wide this reform would save $11 million in the first year.

Retroactive Wage Settlement Identical to CSEA and PEF

Council 82 has been without a contract since 2005 and is currently in arbitration with the State. The agreement settles the arbitration by providing Council 82 members with a wage agreement identical to that received by CSEA and PEF for the same prior period. The one-time cost to the state of $48 million was reserved for this purpose in the enacted budget.

The agreement covers the Agency Law Enforcement Services unit of Council 82. The unit includes SUNY police, Park Police, and Department of Environmental Conservation Officers and Forest Rangers and covers 1160 employees.

Negotiations for the state were led by a special team appointed by the Governor comprising Todd R. Snyder, Senior Managing Director of Rothschild Inc. and Co-Head of Rothschild's Restructuring and Reorganization group; and Joseph M. Bress, former head of the Governor's Office of Employee Relations and former Vice President of Labor Relations at Amtrak, under the direction of Howard Glaser, Director of State Operations.

Image source: lenny4albany.com
Image credit: lenny4albany.com

'Abuses of Government Powers Will Be Stopped!'

Cuomo Announces New Policies For State Issued Parking Placards

Governor Andrew Cuomo has announced rigorous new policies for state issued parking placards after a review by State Inspector General Ellen Biben found systemic problems with how the placards were distributed and how they were used by some state employees.

Currently, the state distributes two types of parking placards. One says "police" in all capital letters, the other says "official business."

As a result of the Inspector General review, the Governor's office will: reduce the number of police placards distributed by over 84 percent from 1730 to 261 by limiting the distribution of police placards to only police personnel; reduce the number of total placards distributed by almost 10 percent from 2210 to 1993; redesign placards for greater transparency; create an application and approval process for receiving a placard – a protocol that previously did not exist; and create a clear enforcement process to handle those who abuse the privilege.

"Government issued parking placards are meant to be used by state employees when they are doing official business," said Cuomo.

"Under my administration, abuses of government powers will be stopped and those responsible will be held accountable. I applaud Inspector General Biben for her review of the distribution and use of parking placards, and for her recommendations reforming the system to hold those who have placards responsible for their actions."

"Too often we hear stories of the abuses of parking placards," Inspector General Biben said.

"Parking placards are not perks - period. These new policies intelligently transform the system from one that was flawed and ripe for abuse and to one that is transparent and will make individuals personally accountable for use of their placards."

The number of police parking placards distributed to executive branch agencies will be reduced from 1,730 to 261. They will only be issued to officials with statutory police powers and will be distributed only by the State Police. In all, the total number of placards distributed to executive agencies and the Legislature is being reduced from 2,210 to 1,993.

"The new rules make perfect sense: police placards should only be for police officers defined by state law," State Police Superintendent Joseph A. D'Amico said.

"I applaud Governor Cuomo for taking the initiative to implement these smart policies that will help prevent the abuse of these placards."

The new parking placard policies for the executive branch and Legislature also say that: state officials are required to fill out a form before receiving the placard indicating why the placard is needed and what vehicle it will be used in; state officials are required to sign a certification acknowledging the proper use of a placard; the Executive Chamber is recalling all outstanding "Police" placards so they can be redistributed to police personnel only; state officials without police powers will be issued "Official Business" placards; the State Police will review and distribute all "Police" placards; the Governor's Office of Public Safety will review and distribute all "Official Business" placards; agencies will review requests by employees to ensure that their duties and responsibilities would require the use of a placard; complaints of improper use of "Police" placards will be handled by State Police; complaints of improper use of "Official Business" placards will be handled by the Inspector General's office; an employee who misuses the placard could face disciplinary action.

The placards have also been redesigned to clearly show what agency it belongs to and the license plate number of the car that it should be displayed in.

Cuomo, Skelos & Silver Reach Agreement on 2011-2012 New York State Budget

Historic Budget Provides Transformational Plan for State

Governor Andrew M. Cuomo, Senate Majority Leader Dean Skelos and Assembly Speaker Sheldon Silver today announced an agreement on a 2011-2012 budget that eliminates a $10 billion deficit.

The agreement includes historic reforms that redesign state government, create efficiencies through consolidation, cap spending increases for education and Medicaid, and transform the future budgeting process.

The approximately $132.5 billion budget will reduce spending overall by over 2 percent from the current year, eliminate 3,700 prison beds, establish regional economic development councils, bring performance funding to education, redesign Medicaid, and cap next year's education and Medicaid spending.

This budget reaches its financial goals with no new taxes and no borrowing, and will also cut next year's projected budget deficit from $15 billion to about $2 billion.

Recent changes to the budget include an additional $272 million in education which includes restoration of funding for schools for the blind and deaf (4201) and summer school special education. Human services funding of $91 million was added and $86 million for higher education including SUNY hospitals, SUNY and CUNY community colleges. There are also miscellaneous program additions of $33 million including aid to localities and agriculture programs. The budget proposal requires the Office of Court Administration (OCA) to reduce its budget by $170 million to reflect a more proportionate share of the state's reductions. There were also $54 million in miscellaneous cuts. As a result, the net add spending to this budget is approximately $250 million. In addition, there are no new member items.

"I have said that New York is at a crossroads – one road leading to further dysfunction and decline, the other towards fiscal responsibility and government efficiency. I believe this budget puts us on the right path," Governor Cuomo said. "This budget makes tough choices, which is what you sent me to Albany to do. It closes a $10 billion dollar deficit with no new taxes or borrowing, redesigns government to force it to cut waste and inefficiency, and finally delivers real results for hard-working families across New York State. I applaud and thank Majority Leader Skelos and Speaker Silver for working together to reach this agreement."

Senate Majority Leader Dean G. Skelos said, "This budget agreement keeps our Senate Republican commitment to reduce spending, cut taxes and empower the private sector to create jobs, and will begin to put New York on the path to fiscal recovery. By working together to reach consensus on a responsible spending plan that eliminates a $10 billion deficit without raising taxes, we have tightened our belt and protected middle-class families in every region of this State. I am particularly pleased with Governor Cuomo's commitment to making UB2020 a reality, which will bring jobs and hope to Western New York, as well as improvements to the other university centers, which are important priorities of our Senate Republican conference. Today's developments ensure we are moving full speed ahead to an on-time budget."

Assembly Speaker Sheldon Silver said, "Speaking for the Assembly Majority, I commend Governor Cuomo for his leadership in bringing about this agreement and for providing the Legislature with an executive budget that was strong and firmly grounded in reality. Government had to tighten its belt with the same sense of urgency that working families have been tightening their belts since the economy went into freefall in 2008. The sole consolation is that working with the Governor, we were able to achieve critical restorations which will soften the cuts affecting working families, our senior citizens, our most vulnerable populations and the children in our classrooms."

The 2011-2012 budget agreement contains critical components first proposed in Governor Cuomo's executive budget, including redesigning Medicaid and recalibrating the cost of state government, in part, by merging and consolidating agencies as well as curbing spending growth to sustainable and affordable levels.

Policy reforms in the 2011-2012 budget include:

· Changing Permanent Law and Provides 2-Year Appropriations and Caps for Education and Medicaid: Education will be increased at a rate of personal income growth next year – roughly 4 percent. Medicaid will be increased at a rate tied to healthcare CPI which is roughly 4 percent. Together, these actions reduce next year's deficit from about $15 billion to about $2 billion and change decades-old practice of overspending.· Redesigning the Medicaid System: The budget includes a global cap on State Medicaid expenditures of approximately $15 billion and implementation of the majority of recommendations by the Medicaid Redesign Team (MRT) to redesign and restructure the Medicaid program to be more efficient and get better results for patients. There are reallocations within the MRT cap that reduce some areas while targeting increases to others. Among the notable changes: the cap on medical malpractice is not included and EPIC is increased by $22 million. The MRT reduction of $2.8 billion and the overall spending cap to the state will be enforced by the Department of Health's "superpower" provision, whereby the commissioner has authority to make reductions during the year to enforce the cap.

· Creating Regional Economic Development Councils: The budget establishes 10 Regional Economic Development Councils, chaired by Lieutenant Governor Robert Duffy. These councils will create a region-based approach to allocate economic development funds to speed up the creation of jobs. They will act as one-stop shop for all State-supported economic development and business assistance programs in each region, and will be supported with $130 million in capital that is reprogrammed from existing resources.

· Creating the Recharge NY Power Program: Recharge New York will enhance and make permanent the current Power for Jobs Program that will significantly boost the state's economy by creating and maintaining hundreds of thousands of jobs. Recharge New York will improve upon the existing program by opening it to new participants and allocating a blend of stable, low-cost hydropower and market power for use by businesses that seek to grow and create jobs in New York state.

· Authorizing the SAGE Commission: The budget authorizes Governor Cuomo's Spending and Government Efficiency (SAGE) Commission to reduce the number of agencies, authorities, and commissions by 20 percent. Currently, the consolidation of Parole and Corrections will save $16.8 million, the merging of NYSTAR into Department of Economic Development will save $1.9 million, and the merging of Consumer Protection into the Department of State will save $500,000.

· Creating the Department of Financial Services: The budget merges the state's Banking and Insurance Departments into a new Department of Financial Services.

· Authorizing Governor to Close Prisons: The state will eliminate 3,700 prison beds throughout New York at the sole discretion of the administration in consultation with the Legislature.

· UB 2020: The Governor has also agreed to hold a summit with stakeholders to discuss how to make UB 2020 a reality.

· Reforming the Juvenile Justice System: The budget includes significant reforms of the state's juvenile justice system by encouraging greater use of community-based alternatives, downsizing the state juvenile facilities system by more than 30 percent, and investing resources into enhanced services for juveniles that remain in OCFS custody.

· Creating New Education Performance and Efficiency Grants: The budget enacts initiatives Governor Cuomo proposed to make districts more efficient and improve student performance. Funds totaling $500 million will be awarded competitively to districts that demonstrate significant improvements in student performance and to districts that undertake long term structural changes to reduce costs and improve efficiency. The budget also restores $270 million in education related funding.

· Improving the Excelsior Jobs Program: As proposed in the executive budget, the budget strengthens the Excelsior Jobs Program, which was created in 2010 to provide job creation and investment tax credit incentives to businesses in targeted industries.

Photo Author: United States
Permission: Public Domain

Albany Update

Gov's Executive Order to Reduce Cost of
State Agency Contracts

Governor Andrew Cuomo has issued an Executive Order which will reduce the cost of many personal services contracts (PSC) used by New York State agencies by 10 percent.

Under the order, agencies will be permitted to renew certain PSCs only if the contractor agrees to the reduction or with the approval of the Director of State Operations.

"My proposed budget calls for significant savings from State agencies and reducing the cost of contracts those agencies enter into will help achieve our goal," said the governor. "My administration will continue looking for ways to save taxpayers' money across all sectors of our government, and asking companies that do business with the State to find new efficiencies and lower their costs is a critical part of the process."

The state uses PSCs in areas including research and analysis, data processing, computer programming, engineering, environmental assessment, health and mental health services, and accounting.

State agencies will also be required to examine the roles currently assigned to PSCs and take all reasonable measures to ensure that the same services could not be acquired at a lower price.

These measures include discussing lower price options with current contractors, deciding whether re-bidding contract would achieve cost savings and working with the Director of State Agency Redesign and Efficiency to determine if savings could be achieved through bundling with other state agencies currently utilizing the same contractor.

The Spending and Government Efficiency Commission, created by Executive Order No. 4, will continue to review the state's practices regarding contracts for personal services to identify additional ways to reduce their number and cost.

Photo Author: United States
Permission: Public Domain