Cuomo says new $212 billion state budget puts NY on right path for economic recovery
Press Release, Gov. Andrew Cuomo’s Office
Governor Andrew M. Cuomo on Tuesday announced highlights of the FY 2022 Enacted Budget to reimagine, rebuild and renew New York in the wake of the ongoing Covid-19 pandemic.
The Budget supports the Governor’s $311 billion infrastructure plan – the largest in the nation and the most expansive in State’s history – that will create thousands of jobs across the State.
The Budget establishes a first-in-the-nation program to provide affordable internet by requiring internet service providers to offer an affordable $15 per month high-speed internet plan to qualified low-income households.
The Budget enhances public safety by authorizing the withholding of up to 50 percent of State and Federal funds from jurisdictions that fail to produce a police reform plan and comply with the Governor’s Executive order. The Governor may require that the Attorney General appoint a monitor over the police force until the plan is adopted.
The Budget directs $2.3 billion in federal child care resources to expand availability, quality and affordability of child care across the state, and enhances the Employer Provided Child Care Credit to provide meaningful incentives to employers to help them provide child care to their employees.
The Budget supports $29 billion in public and private green economy investments to create 12,400 megawatts of green energy – enough to power 6 million homes – helping to fulfill the goals of New York’s Climate Leadership and Community Protection Act and also spur the COVID economic recovery. The investments include the largest offshore wind program in the nation, plans to make New York a global wind energy manufacturing powerhouse, constructing a green energy transmission superhighway, a public-private partnership to build nearly 100 renewable energy projects and supporting transit agencies’ transition to electric busses.
The Budget ensures that New York uses “Buy American” principles in manufacturing of renewable components. The Budget also requires prevailing wage for construction labor peace agreements for operations and manufacturing.
The Budget ensures access to fair and safe housing and protects renters by establishing a $2.4 billion rent relief program using Federal and State funds.
The Enacted Budget includes comprehensive nursing home reform legislation to help ensure facilities prioritize patients over profits, establishing minimum thresholds for nursing home spending on direct resident care and staffing, and investing $32 million annually to implement the reforms, while capping profits and performing related party transactions to drive funding to where it matters most, the patients.
The Budget enacts small business and arts relief and recovery assistance, a robust $1 billion relief package for small businesses, arts, entertainment and restaurant relief to help them recover from the impacts of the pandemic. It includes $865 million in grants and $139 million in tax credits.
The Budget also continues the phase-in of the middle class tax cut, which is expected to save 4.8 million New Yorkers over $2.2 billion this year.
From the beginning of the pandemic, Governor Cuomo led the national effort to secure Federal funding for state and local governments, with New York State receiving $12.6 billion in aid to help offset devastating revenue losses caused entirely by the pandemic. With this Federal funding and additional revenues, including $3.5 billion in new tax revenue that rises to $4.3 billion in FY 2023, the Enacted Budget closes the deficit and invests in the ongoing response to the pandemic and recovery efforts.
“New York was ambushed early and hit hardest by Covid, devastating our economy and requiring urgent and unprecedented emergency spending to manage the pandemic,” Governor Cuomo said. “Thanks to the State’s strong fiscal management and relentless pursuit to secure the federal support that the pandemic demanded, we not only balanced our budget, we are also making historic investments to reimagine, rebuild and renew New York in the aftermath of the worst health and economic crisis in a century.”
Fiscal Highlights of the FY 2022 Enacted Budget:
- State Operating Funds spending is $111 billion
- All Funds spending $212 billion for FY 2022
- Applies $5.5 billion in federal aid
- Provides $29.5 billion in School Aid, a $3 billion, 11% increase.
- Provides $7.7 billion in State support for higher education in New York
Other highlights include:
• Mobile Sports Wagering: The FY 2022 Enacted Budget authorizes mobile sports wagering. Once fully phased in, legalization will provide more than $500 million in much needed revenue for the State to help rebuild from COVID-19 and grow what could be the largest sports wagering market in the U.S. into a profitable industry long-term. Under the legislation, the state will issue a Request for Applications and must select at least two platform providers who must work with a total of at least four operators or skins. Once fully phased in, the program will provide $5 million annually to youth sports, and $6 million to combat problem gambling, doubling the resources currently available. The remainder of this new revenue will be dedicated to education.
• $1 Billion for Strengthening Local Highways and Bridges: The FY 2022 Enacted Budget builds upon Governor Cuomo’s record commitment to funding local highway and bridge projects. Funding for the Consolidated Highway Improvement Program (CHIPS) and the Marchiselli program increases by $100 million to $577.8 million and funding for Extreme Winter Recovery is $100 million. The Enacted Budget also provides $100 million of new funding to localities responsible for State Touring Routes, increases highway aid through the PAVE NY program by $50 million to $150 million, and maintains funding of local bridge projects through the BRIDGE NY program at $100 million. This represents an overall year-to-year increase of $285 million and brings funding for local highway and bridge projects to more than $1 billion. These programs will play a vital role in improving conditions on State and local roads and bridges and rebuilding New York.
• Increase Aid to Community Colleges by $50 Per Student with a Funding Floor: The Enacted Budget increases community college formula aid from $2,947 per student to $3,197 per student and includes a funding floor at 98 percent of prior year formula aid. These changes will provide an additional $25 million in State support to over 200,000 community college students in the 2021-22 academic year.
• Public-Private Partnership to Build Nearly 100 Renewable Energy Projects: New York will contract for another 24 large-scale renewable energy generation projects in 2021, to bring the State’s total clean energy build-out to nearly 100 projects. The 23 solar farms and one hydroelectric facility will be the most cost-efficient clean energy construction to date in New York, producing more than 2,200 megawatts of clean power, generating more than $2.9 billion of investment and creating 3,400 jobs in 16 counties Upstate.