Governor Andrew Cuomo’s executive budget proposal for the fiscal year that begins in April once again holds the growth in state spending below 2 percent. Under the plan, growth in state operating funds spending would be held to 1.7 percent. Growth in “all funds” spending, which includes federal dollars that flow to the state, would be held to just 1.3 percent — excluding “extraordinary” federal aid related to the rollout of the Affordable Care Act and recovery from Superstorm Sandy.
The budget includes cuts in spending for a number of state agencies: 11.2 percent or $519 million for the Department of Health (excluding Medicaid); 9.5 percent or $6 million at the Office of the Medicaid Inspector General; 13.4 percent or $35 million at the Department of Labor.
The budget reflects the tax reforms and reductions originally proposed in the Pataki-McCall tax commission—of which Heather C. Briccetti, Esq., president and CEO of The Business Council was a member—including a more rapid phase out of the 18-A energy assessment and the elimination of the assessment on industries.
Commenting on the executive budget, Ms. Briccetti said:
“The Business Council of New York State applauds the Governor’s continued commitment to improve the state’s business climate as demonstrated in his executive budget. There is much for business to be encouraged about with the emphasis on holding growth in overall state spending to under 2 percent while promoting private sector investments and job creation, and increasing in-state personal income, through broad-based business tax relief.
“Specific business tax reductions in the Governor’s tax package will have significant multiplier effects throughout the state’s economy, and will support more than 14,000 new jobs by 2019, and almost 18,000 new jobs by 2024, as noted in a recent Public Policy Institute report prepared by state tax experts at Ernst and Young.
“The Business Council looks forward to working with The Governor and Legislature to make tax relief and the removal of regulatory business barriers a reality for New York in this legislative session.”