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FY 2015 Final Budget Summary

Overview

At the start of the 2014 session, The Business Council set business tax reform as our top legislative priority.

That was accomplished in a final budget agreement that will provide nearly $600 million in annual business tax savings while keeping the overall growth in state spending under 2 percent for the fourth consecutive year.

The broad-based tax reductions and reforms included in the budget — the most significant New York has seen in decades -- will improve our tax climate relative to other states and promote investment and jobs in key economic sectors throughout the state.  Key reforms include modernizing and restructuring the corporate franchise tax, reforming bank taxation, reducing the corporate franchise tax rate to 6.5 percent, adopting the 20 percent real property tax credit for manufacturers, and others.

Significant reforms to the state's estate tax law, including an increased exemption that will match the federal exemption, will eliminate estate tax liability for many small business and farm owners, as well as homeowners and other state residents.

In addition, the budget included significant new economic development and public infrastructure funding, as well as fund to support the state's tourism industry.

And, although the budget makes adjustments to the implementation of the Common Core, The Business Council was pleased to see it preserves the new, more rigorous standards that are crucial to ensuring students graduate college and career ready.

The final budget agreement contained some disappointments, including a significantly scaled back reduction of business energy assessments, a new out-of-network coverage mandate and a compensation methodology for OON providers that increase the cost of health insurance, and the failure to extend and update the state's valuable brownfield credit.

Overall, this was a good budget for the state's business community, and for the state.

The following compares key Executive Budget proposals and their outcome in the final budget agreement.

We welcome your questions or comments.

Construction

Contract Procurement

Economic Development

Executive Budget proposal; Funding initiatives include:

Additional provisions included in the final budget:

Education / Higher Education / Workforce Development

Education

After school programs (S. 6353-E/A. 8553-E – Education Department Appropriations) funded through casino and gaming revenue fund

Additional provisions include in the final budget:

Common Core Reform Act (S.6356-D/A.8556-D, Part AA, Subparts A-L):

Charter schools

Higher Education

Election and Campaign Finance Reform

Energy

Additional provisions include in the final budget:

Environment

Additional provisions include in the final budget:

Financial Services

The Department of Financial Services will have under its purview new proposals to strengthen consumer protections in financial actions.  

Health Care / Health Insurance

The following provides an overview of key provisions in health. 

Out of Network (S.6357/A.8557 PART U)

Additional provision included in the final budget:

Health Infrastructure Improvement

HCRA reauthorization

Medicaid Redesign

Additional provision included in the final budget:

Labor / Human Resources

Racing and Gaming

Taxation / Revenues / Tax Credits

Corporate Tax Reform (Part A)
The following provides an overview of key provisions of these corporate franchise tax and other business tax reform provisions.

ITC and Manufacturers' Credit (Part R)

Estate Tax Reform

Tax Credits

Additional provision included the final budget:

Technology / Telecommunications

Transportation

Travel and Tourism

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