FY 2014 NYS Budget Overview

Contact: Ken Pokalsky

In the big picture, the agreed-to budget for Fiscal 2014 limits the growth of state government to less than 2 percent for the third straight year, reversing a long trend of unsustainable budget growth – an outcome that we strongly support.

However, the budget will also add to the cost of doing business by extending assessments on electric, natural gas and steam energy, for a total cost of nearly $1.5 billion, half of which will be paid by business, and by increasing the minimum wage – a measure whose impact will be felt by many business, with total cost estimates as high as $2 billion per year once fully implemented.   While the final agreement on both of these measures is an improvement over the original Executive Budget proposals, they are not consistent with a strategy to promote economic growth and the creation of good paying jobs.

These cost increases are only partially offset by cost-savings reforms in the state unemployment insurance and workers compensation system, and by tax reductions for manufacturers under the corporate franchise tax.

Highlights of the final FY 2014 state budget – both positive and negative – are summarized below. You can read The Business Council's complete recap of the final budget agreement here.