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Summary of SFY 2016-2017 Enacted NYS Budget
By Hinman Straub Advisors, LLC

New York Governor Andrew M. Cuomo presented his 2016 State of the State and Executive Budget Address in Albany on Wednesday, January 13th, 2016. In the 11 weeks since issuance of his SFY 2016-2017 Executive Budget proposals, lawmakers in the Senate and Assembly have held joint budget hearings on various areas of the Governor’s proposed budget, and later reached agreements on available revenue. Either house introduced and passed their “one-house” budgets, setting forth their priorities for a new state budget.

Legislative leaders and Governor Cuomo have worked round-the-clock in recent days to achieve final agreements. A series of “leaders’ meetings” – comprised of Governor Cuomo, Assembly Speaker Carl Heastie, Senate Majority Leader John Flanagan and Senate Independent Conference Leader Jeff Klein – have convened every day this week, and bargaining sessions of legislative and executive staff have been ongoing as well. Negotiations on major provisions of the budget plan proved difficult, especially regarding elements of the Governor’s original plan to increase the state’s minimum wage, to enact paid family leave, and to offset proposed shifts in Medicaid costs to localities (particularly to New York City).

Negotiations on budget bills were ongoing up to March 31st. These talks have now concluded and revised budget bills introduced just prior to the start of the new fiscal year, which begins April 1st. Lawmakers have agreed upon a new state budget that will total approximately $154 billion, and holds spending growth to below 2% for the 6th consecutive year. Highlights of the budget accord include the following:

Education – For the 2016-17 school year, the final budget provides $24.8 billion in school aid. The final budget includes a $1.5 billion increase in school aid, including a $627 million increase in Foundation Aid, and the elimination of the remaining $434 million in “Gap Elimination Adjustment (GEA).” The budget plan also includes $175 million for “community schools” and will increase support for charter schools by $54 million.

Economic Development – Agreements were reached on a number of appropriations supporting economic development initiatives, including:
  • Upstate Revitalization: The final 2016-17 budget includes $30 million for additional awards to the four regions (the North County, Capital District, Mohawk Valley and Mid-Hudson) that did not receive funding in 2015, this a reduction of $170 million from the Governor’s proposed budget.
  • Regional Economic Development Council Initiative: The final 2016-17 budget includes $150 million available during the 2016-17 and 2017-18 state fiscal years for services and expenses, loans and grants.
  • New York Works: The final 2016-17 budget includes $199 million for services and expenses, loans and grants related to the NY Works Economic Development Fund, an increase of $100 million from the Governor’s proposed budget.
Environment –The new budget increases funding for the Environmental Protection Fund (EPF) to $300 million dollars, $123 million over 2015-2016 and the highest funding level in the history of the EPF. The EPF is the state's core funding for projects protecting clean water and open space, forests and farms, providing for stewardship of public lands, supporting parks and waterfront revitalization, and smart growth.

The EPF will also now include a new “Climate Change Mitigation and Adaptation Account” to provide funding for adaptive infrastructure, greenhouse gas management, and resiliency planning programs, and a new category of assistance for “Climate Smart Community Projects” in localities around the State. These will also include rebates for the purchase of zero emission vehicle purchases, and for the construction of hydrogen fueling infrastructure.

Health Care – There are a number of important initiatives in health care that were approved by lawmakers in the new budget plan, including:
  • Family Health Initiatives - The final budget includes:
    • $25.3 million for Cancer Services Programs;
    • $26.3 million for Nutritional Information for Women, Infants, and Children;
    • $9.7 million for chronic disease prevention (including diabetes, asthma, and hypertension);
    • $5.5 million for Rape Crisis Centers;
    • $2.3 million for the Prenatal Care Program;
    • $9.65 million – a $1 million increase – for the Doctors Across New York Program and
    • restores $25 million in Excess Medical Malpractice Coverage to recruit and attract physicians to underserved communities; and $1 million to support organ donation.
  • Fighting Lyme Disease – The new budget plan includes $600,000 for research, education, and prevention effort in fighting Lyme Disease.
  • Health Care Capital Support - Community-based health care providers, hospitals, nursing homes, home care and other facilities statewide will be eligible to receive $200 million in new funds to support critical capital and infrastructure improvements, as well as to integrate and further develop health systems.
  • Heroin Prevention, Treatment and Recovery - The final budget includes $166 million in funding to help address the challenging public health crisis caused by heroin and opioid abuse in communities throughout the state.
     
Higher Education - The final 2016-17 budget freezes tuition at the State University of New York (SUNY) and the City University of New York (CUNY) for one year. SUNY and CUNY will not be able to institute a “rational” tuition plan but will have authority to increase out-of-state tuition. The budget provides more than $1 billion for the Tuition Assistance Program (TAP). The new budget also boosts funding for SUNY and CUNY community colleges with an additional $20 million, increasing the full-time equivalent (FTE) funding for the state’s community colleges by $100.

The final 2016-17 budget also includes $110 million for another round of SUNY 2020 ($55 million) and CUNY 2020 ($55 million) Challenge Grants. Funding will be awarded through a competitive process where campuses develop plans to improve academic outcomes, efficiencies, innovation and economic development.

Infrastructure – The SFY 2016-2017 budget pact includes the largest commitment to infrastructure spending in state history. Over five years, the plan will allocate $27.14 billion for State Department of Transportation and Thruway Authority programs, and $27.98 billion for programs of the Metropolitan Transportation Authority.

Minimum Wage Increase – Among the most contentious issues leading up to a final budget agreement was the Governor’s call to increase the minimum wage to $15 per hour. Under the budget pact, the minimum wage for employees of large businesses in New York City will rise to $15 per hour by the end of 2018, and for employees for smaller businesses in New York City by the end of 2019. In Westchester, Nassau and Suffolk counties, a phased increase in the minimum wage will be implemented by 2022. For the rest of New York State, the minimum wage will rise to $12.50 per hour by January 1, 2021.

Paid Family Leave – The Governor’s Executive Budget proposal introduced in January called for a paid family leave program, under which employees would be eligible for twelve weeks of paid family leave when caring for an infant or ill family member. The final budget agreement will institute this plan beginning in 2018.

Tax Cuts – The budget plan will lower personal income tax rates will drop to 5.5% for filers with incomes up to $300,000, totaling $4.2 billion by 2025.

We have summarized the major provisions included in the areas of Lower Education below:

For the 2016-17 school year the final budget provides $24.8 billion in school aid. This amount represents a year-to-year increase of $1.5 billion (or 6.5%).
  • Gap Elimination Adjustment Reduction. While the school aid runs appear to continue a Gap Elimination Adjustment (GEA) for some schools, the budget language indicates that the GEA is zero. It is reported that the 2016-17 final budget fully eliminates the with an investment of $434 million.
  • Foundation Aid. The 2016-17 final budget appropriates $627 million to support the Foundation Aid. This represents an increase of 4%.
  • Community Schools. The 2016-17 budget includes $175 million for community schools which is divided as follows:
    • Community Schools Grant. The 2016-17 final budget appropriates $75 million to establish community schools in those schools that are designated as takeover and restructuring schools as defined in section 211-F of the education law. Of the amount appropriated, $50 million is for operational support and $25 is for capital expenses.
    • Community School Aid Set-Aside. The 2016-17 final budget directs school districts to set aside a designated amount of their foundation aid to support the transformation of school buildings into community hubs to deliver co-located or school linked academic, health, mental health, nutrition and counseling services to students and their families or to support costs incurred to maximize students’ academic achievement. ($100 million).
  • Statewide Universal Full Day Pre-Kindergarten. The 2016-17 final budget appropriates $340 million in funding to support this program. This represents level funding.
  • Career and Technical Education (CTE). The 2016-17 final budget newly appropriates $1 million in support of these programs.
  • Early College High Schools. The 2016-17 final budget includes a total of $4,465,000 for Early College High Schools which is divided as follows:
    • The 2016-17 budget appropriates $1.465 million to support the continuation of early college high school programs.
    • The 2016-17 final budget appropriates $3 million in new funding to expand Early College High Schools.
  • New Parental Choice in Education. The 2016-17 final budget does not include language to create education tax credit programs
  • Pre-Kindergarten for 3 year olds. The 2016-17 final budget appropriates $22 million to expand high quality pre-kindergarten programs to 3-year-old children in highest-need school districts that develop a plan to deliver.
  • QUALITYstarsNY. The 2016-17 final budget appropriates an additional $2 million to support the implementation of QUALITYstarsNY, a quality rating and improvement system intended to ensure that we offer our youngest children. Language was added to allow the New York State Department of Health, the NYS Office of Children and Families, and the NYS Education Department to make recommendations to certain prekindergarten programs to participate in QUALITYstarsNY.
  • Empire State Pre-Kindergarten Grant Board. The 2016-17 final budget states that for new pre-kindergarten awards for 2016-16 and 2017-18 the “empire state pre-kindergarten grant board” as established pursuant to a chapter law of 2016, shall develop an oversubscription plan to distribute available slots within an oversubscribed region. The board shall consist of three people: one appointed by the Governor, one by the Senate and one by the Assembly.
  • Mayoral Control. The 2016-17 final budget does not include language regarding mayoral control in New York City.
  • Modernization of School Safety Plans. The 2016-17 final budget makes changes to existing school safety plans to require mandatory annual training of all staff, the designation of a chief emergency officer, and the modernization of plans to include responses to emergencies, such as lock-down drills.
Formula & Expense Based Aid 
  • Formula Aids. The 2016-17 final budget appears to fully fund reimbursement and expense based aids.
  • Special Academic Improvement Grants. The 2016-17 final budget appropriates $8.4 million for the 2016-17 school year for grants up to $12 million. This represents level funding.
  • Targeted Pre-Kindergarten. The 2016-17 final budget appropriates $1.303 million for the remaining obligations for the 2015-16 school year for the operation of targeted pre-kindergarten programs and support for 2016-17 school year. This represents level funding.
  • School Safety Building Aid Enhancement. The 2016-17 Final budget recommends extending the school safety building aid enhancement for an additional year (2017-18). These funds (an additional 10% of a districts building aid) may be used to purchase security equipment.
  • Nonpublic School Aid. The 2016-17 final budget appropriates $104,214,000 for 2016-17 FY. An additional $69,813,000 is appropriated for the payment of 2014-15 SY. Additional Academic Intervention assistance in the amount of $922,000 is available for nonpublic schools based on a plan to be developed by the Commissioner of Education. Finally, an appropriation of $15 million is available for safety equipment (only $4.5 million available prior to 4/1/2017).
  • Small Government Assistance to School Districts. The 2016-17 final budget appropriates $1,868,000 for assistance pursuant to subdivision 7 of section 3641 of the education law. This funding is provided to school districts impacted by assessment reductions resulting from a forest land management program. This represents level funding.
Big Four School Districts Specific Initiatives (Syracuse, Rochester, Yonkers and Buffalo)
  • School Health Services Grants. The 2016-17 final budget appropriates $9.688 million (FY) for school health service grants for the 2016-17 school year. The grants shall apply to city schools districts in a city having a population in excess of 125,000 and less than 1,000,000 inhabitants. A total of $13.84 million is available for each school year. The 2016-17 final budget include $1.2 million for grands to the Rochester City School District or Buffalo City School District.
  • Fiscal Stabilization Grants. The 2016-17 final budget appropriates $45.068 million for fiscal stabilization grants to school districts based on a plan submitted by the Commissioner of Education and approved by the Division of the Budget; of which NYC DOE shall be eligible for $26.404 million.
  • “Say Yes to Education Program”. The 2016-17 final budget appropriates $350,000 (FY) for the Syracuse City School District for the “Say Yes to Education Program”. This represents level funding.
Contract for Excellence
  • Contract for Excellence. The 2016-17 final budget continues the requirement that all school districts currently in the Contracts for Excellence program would remain in the program unless all of the school buildings in the school district are reported as “In Good Standing” for purposes of the State accountability system.
Capital Construction & Other Grants
  • School Bus Driver Training Grants. The 2016-17 final budget appropriates $280,000 FY for school bus driver training grants to school districts and BOCES for the 2016-17 school year. No more than $400,000 shall be available from the fiscal year to support the 2016-17 school year. This represents level funding
Special Education 
  • Summer School Special Education (4408 programs). The 2016-17 final budget appropriates $364.5 million FY to meet the State’s share of summer school programs for school age students with disabilities.
  • State-Supported Private Schools for the Blind and Deaf. The 2016-17 final budget appropriates $96.2 million for the support of students attending state supported schools for the blind and deaf. This is a slight reduction as a result of reduced debt service. Up to $84.7 million of the appropriation is available to school districts for the tuition costs of students attending a state supported school; $2.5 million is available for debt service and the remaining $9 million is available for remaining allowable purposes, such as the education of deaf children under the age of 3 years and residential facilities. An additional $4.6 million is available in 2016-17 school year to support the schools directly. Additional appropriations of $903,000 each are available for the Henry Viscardi School and the New York School for the Deaf
  • Building Aid for Special Act School Districts. The 2016-17 final budget appropriates $1.890 (FY) for payments to the dormitory authority on behalf of eligible special act school districts for the 2016-17 school year.
  • Center for Autism and Related Disabilities at SUNY Albany. The 2016-17 final budget appropriates $1.2 for this program. Another $500,000 is allocated and supported by Federal IDEA discretionary funds. This represents level funding (restoration of $500,000 from the Executive).
  • Education of Youth Incarcerated. The 2016-17 final budget appropriates $12.250 million (FY) for the education of youth incarcerated in county correctional facilities pursuant to subdivision 12 of section 3602 of the education law for 2016-17 school year.
  • Fostering Youth Initiative. The 2016-17 final budget appropriates $3 million to support post-secondary opportunity to foster youth at public and independent colleges and universities, including summer transition programs. This represents an increase of $1.5 million.
  • OMH & OPWDD Aid. The 2016-17 final budget appropriates $46.2 million (FY) for the 2016-17 school year for the education of students who reside in a school operated by the Office of Mental Health or Office of People with Developmental Disabilities.
  • Special Education Waiver. The 2016-17 final budget does not include language proposed in the Executive budget establishing a waiver process for school districts, BOCES and approved private special education providers to request flexibility to certain special education requirements.
  • Minimum Wage Support. The 2016-17 final budget appropriates $1.1 million to support direct salary costs and related fringe benefits associated with any minimum wage increase that takes effect during the 2016-17 fiscal year impacting special acts and 853 schools.
Pre-School Special Education 
  • Preschool Special Education (4410 programs). The 2016-17 final budget appropriates $1.035 billion to meet the State’s share of preschool programs for students with disabilities.
Charter Schools 
  • Technical Assistance and Start-Up Grants. The 2016-17 final budget appropriates $4.837 million for Technical Assistance and Start-Up Grants for Charter Schools. This represents level funding.
  • Charter School Stimulus Account. The 2016-17 final budget appropriates $20 million (FY) for services and expenses related to the development, implementation and operation of charter schools, including facility costs and loans. These funds also support the administration and technical support provided by the Charter School Institute of SUNY. This allocation is supported by the Special Revenue Fund. Charter School Stimulus Fund. This represents level funding.
  • Charter School Tuition. The 2016-17 final budget newly provides an estimated $430 per pupil in support of charter schools statewide.
  • New York City Charter School Rental Aid. The 2016-17 final budget recommends making the calculation of rental aid for NYC charter schools permanent.
  • Charter School Supplemental Basic. The 2016-17 final budget appropriates $42.4 million to reimburse school districts for 2015-16 made to charter schools.
Educational Support Programs 
  • Extended Day/School Violence. The 2016-17 final budget appropriates $24.344 million (FY) for extended day/school safety programs. This represents level funding.
  • 21st Century Learning Centers. The 2016-17 final budget continues the Federal support ($96.526 million) of the 21st Century Learning Centers programs which provide academic enrichment outside the regular school hours to high-poverty and lowperforming schools through the Elementary and Secondary Education Act and No Child Left Behind account. This represents level funding.
  • School Lunch and Breakfast Program. The 2016-17 final budget appropriates $34.4 million (FY) to supplement Federal support for the provision of free and reduced-priced meals to low-income students. This represents level funding.
  • Summer Food Program. The 2016-17 final budget appropriates $3.049 million (FY) in State funds is available to supplement Federal support for provisions of free and reduced-priced meals to low-income students. This represents level funding.
  • Mentoring and Tutoring Program. The 2016-17 final budget appropriates $490,000 (FY) for mentoring and tutoring operated by Hillside Work-Scholarship Connection program which is based on model programs proven to be effective. This represents level funding.
  • Children of Migrant Workers. The 2016-17 final budget appropriates $89,000 (FY) for this program. This represents level funding.
  • New York Center for School Safety. The 2016-17 final budget appropriates $466,000 (FY) for the expenses of the New York Center for School Safety. This represents level funding.
  • Health Education Program (AIDS). The 2016-17 final budget appropriates $691,000 (FY) for services and expenses of the health education program which shall include instruction and support services in comprehensive health education and immune deficiency syndrome. $86,000 shall be made available to a program previously operated as the school health demonstration program. This represents level funding.
  • Primary Mental Health Project. The 2016-17 final budget appropriates $894,000 (FY) for expenses related to the Primary Mental Health Project at the Children’s Institute. This represents level funding.
  • Just for Kids program. The 2016-17 final budget appropriates $235,000 (FY) for this program. This represents level funding.
  • Learning Technology Programs. The 2016-17 final budget appropriates $2.3 million for 2016-17 school years for school districts and BOCES for funding of approved learning technology programs. Funds shall not exceed $3,285 million each school year. This represents level funding.
  • Special Academic Improvement Grants. The 2016-17 final budget appropriates $12 million for the 2016-17 school year for special academic improvement grants. ($8.4 million state fiscal year) This represents level funding.
  • Deferred Action for Childhood Arrivals (DACA). The 2016-17 final budget appropriates $1 million (FY) for this program. This represents level funding.
  • Rural Education Initiative. The 2016-17 Final budget appropriates $5 million from Federal funds in support of this program. This represents level funding.
School Leaders & Teacher Assistance Initiatives 
  • Teacher Mentor Intern Programs. The 2016-17 final budget appropriates $1.4 million (FY) for the Teacher-Mentor Intern program for the 2016-17 school year. No more than $2 million shall be available in each school year. This represents level funding.
  • Teachers for Tomorrow. The 2016-17 final budget appropriates a total of $17.5 million (FY) (or $25 million school year) for the Teacher of Tomorrow program for 2016-17. $5 million shall be available for a program to be developed by the commissioner to attract qualified teachers in STEM areas. $5 million shall be available to the Yonkers City School District and Syracuse City School district in support of STEM qualified teachers. Up to $5 million shall be made available as grants to colleges and universities to recruit and train STEM teachers.
  • National Board for Professional Teaching Standards. The 2016-17 final budget appropriates $368,000 (FY) for this certification grant program. This represents level funding.
  • Teacher Resource and Computer Center. The 2016-17 final budget appropriates $4,278,000 to pay for the remaining obligations for 2015-16 FY. In addition, $14.26 million is allocated for the 2016-17 school year ($9.982 FY) to support the centers.
  • Teacher Opportunity Corps Program. The 2016-17 final budget appropriates $450,000 for teacher opportunity program awards. This represents level funding.
Math & Science Initiatives 
  • Math and Science High Schools. The 2016-17 final budget appropriates $1.382 million (FY) for Math and Science High Schools, such as the Tech Valley High School, Bard College the City of Rochester school district. This represents level funding.
Literacy, Adult & Cultural Education Initiatives 
  • Bilingual Education/English Language Learners. The 2016-17 final budget appropriates $10.15 million (FY) for Bilingual Education grants available during 2016- 17. No more than $14.5 million is available for the school year. This grant initiative supports programs which include technical assistance centers, two-way Bilingual classrooms, and intensive Bilingual teacher training and leadership programs. An additional $1 million ($700,000 state fiscal year) is available for the 2016-17 school year.
  • Adult Literacy Education Program (ALE). The 2016-17 final budget appropriates $7,293,000 for the 2016-17 (FY) for the Adult Literacy Education Program. This represents an increase of $1 million.
  • Employment Preparation Education Aid (EPE). The 2016-17 final budget appropriates $96 million (FY) for the Employee Preparation Education Aid (EPE) for the 2016-17 school year. [$13 million is set aside in support of the Consortium of Worker Education.]
  • Consortium for Worker Education (CWE). The 2016-17 final budget appropriates $13 million for the Consortium for Worker Education Funding for this program is withheld from the Employee Preparation Education Aid. This represents a restoration of $1.5 million from the Executive.
  • Aid for Public Libraries. The 2016-17 final budget appropriates $95.627 million for aid to public libraries, including aid to New York Public Library (NYPL) and NYPL’s science industry and business library. This represents an increase of $4 million over the Executive budget. An additional $1.3 million is available for reimbursement of costs associated with the payment of the Metropolitan Commuter Transportation Mobility Tax is available. An appropriation of $5.4 million is available for library technology.
  • Literacy and Basic Education for Public Assistance Recipients. The 2016-17 final budget $1,843,000 for this program. This represents level funding.
  • Public TV and Radio. The 2016-17 final budget appropriates $14.5 million (FY) to educational television and radio. This represents a restoration of $500,000.
  • Documentary Heritage Grant. The 2016-17 final budget newly appropriates $461,000 to support eligible archives, libraries, historical societies, museums and other organizations.
Native American Education 
  • Native American Building Aid. The 2016-17 final budget appropriates $3.5 million (FY) for building aid for school districts educating pupils residing on Indian reservations for 2016-17 school year. This represents level funding.
  • Native American Post-Secondary Aid. The 2016-17 final budget appropriates $598,000 (FY) for awards to eligible students for post-secondary aid. This represents level funding.
  • Native American School Aid. The 2016-17 final budget appropriates $33.601 million (FY) for support of Native American students in public school districts.
New Initiatives 
  • Schomburg Center for Research in Black Culture. The 2016-17 final budget newly appropriates $250,000 to support this program.
  • Specialized High School Admission Test. The 2016-17 final budget newly appropriates $1 million to assist low income middle school students quality for specialized high schools. Of which $250,000 will be awarded to Brooklyn Tech Alumni Foundation for the purpose of increasing the number of underrepresented students.
  • Specialized High School Outreach. The 2016-17 final budget newly appropriates $1 million ($350,000 each school) to fund an outreach coordinator to conduct outreach in underrepresented middle schools.
  • Additional Senate Aid. The 2016-17 final budget newly appropriates $54.82 million to support school districts, libraries, and not for profits.
  • My Brother’s Keeper Initiative. The 2016-17 final budget appropriates $18 million FY ($20 m school year) to support this initiative. An additional $2 million was allocated to support the creation of the Office of Family and Community Engagement.
  • Bard Early College High School Queens. The 2016-17 final budget appropriates $461,000 to support this program.
  • Additional Senate Aid (2nd). The 2016-17 final budget appropriates $24.995 million in grants in aid to certain school districts, libraries and not for profit institutions.
  • Executive Leadership Institute. The 2016-17 final budget appropriates $475,000 to support this program.
  • New York City Community Learning Schools Initiative. The 2016-17 final budget appropriates $775,000 to support this program.
  • Onondaga, Cortland, and Madison BOCES New Technology. The 2016-17 final budget appropriates $200,000 to support this program.
  • National History Day. The 2016-17 final budget appropriates $1.25 million to support this program.
  • Supplemental Valuation Impact Grants. The 2016-17 final budget appropriates $100,000 to support this program.
  • Advanced Placement Fees. The 2016-17 final budget appropriates $500,000 to offset the costs of advanced placement fees for economically disadvantaged students.
  • State Office of Religious and Independent Schools. The 2016-17 final budget appropriates $2 million to support this new office.
  • State Monitors. The 2016-17 final budget appropriates $225,000 to the NYS Education Department in support of state monitors.
  • Standardized Assessments. The 2016-17 final budget appropriates $8.4 million eliminate state-alone multiple choice field test and release additional test questions pursuant to a plan prepared by the Commissioner and approved by the Division of the Budget.
  • Professional Development. The 2016-17 final budget appropriates $1 million to support the professional development of teachers and principals. 

What’s next? There are 11 separate pieces of legislation that comprise the budget package for SFY 2016-2017. Each bill must pass both houses and be enacted into law in order to take effect. Upon the Senate and Assembly’s passage the Governor will likely approve each bill quickly thereafter. The 2016-2017 state fiscal year begins April 1, 2016.
 
 

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