Government Affairs Albany Update
May 1, 2009
The Division of Budget this week released its “Enacted Budget Report,” on the final FY 2010 state spending plan. In effect the updated “financial plan” sets forth the State's budgetary projections for FY 2010 through 2013 based on this year's enacted budget.
The report shows:
- The FY 2010 Enacted Budget had a States Fund (state tax and fee financed) spending increase of 1.8 percent, or about $1.5 billion, to $84.657 billion, compared a projected negative .2 percent change in the inflation rate. The result is a full 2 percent real growth in state tax-financed spending.
- “All Funds” spending (all state and federal-financed spending) is projected to increase 8.5 percent from the previous FY to $131.935 billion, including $7.745 billion in federal “stimulus” spending. Federal stimulus provides another $2.917 billion in capital spending (primarily in environmental and transportation projects) that does not show up in the All Funds spending figures. In addition, there is approximately $2 billion in stimulus funds that flow directly to localities (mainly in dedicated education spending) that also does not show up in the All-Funds budget number.
- The Division of Budget reports that the enacted budget included $6.3 billion in reductions from previous spending authorizations (mostly changes in formula-driven spending items) including $1.652 billion from the elimination of the STAR rebate program) $5.397 in new or increased taxes and fees, and $2.07 billion in non-recurring revenues (primarily fund “sweeps” from public authorities and various state accounts.)
The Senate is moving a significant greenhouse gas emission bill this week. S.4315/A.7572 would require the DEC to impose restrictions greenhouse gas emissions from any source, including but not limited to manufacturing facilities, power generation, commercial buildings and others. The Assembly version of this legislation is on the Assembly Calendar.
The Business Council strongly opposes expanded state-level regulation of CO2 emissions and other greenhouse gases, especially considering the possibility of federal action. Our memo in opposition is available here. We urge you to join us in our opposition to this legislation.
Governor Paterson issued an Executive Order this week requiring state agencies to assess the impact of “mandates” on local government. Under its provisions, an agency proposing a regulation or legislation would have to determine their cost impact on local government, an assessment of its costs versus its benefits, and proposed sources of revenues by which such costs would be financed. It also requires agencies to reach out to local government for input in determining the potential cost of proposed regulations. Finally, it requires all agencies to review their regulations by the end of 2009, and provide a report to the Governor on any changes that could reduce the impact of existing mandates on local government and generate real property tax relief.
The Business Council has supported the Governor's call for a cap on real property tax increases, coupled with local government mandate relief, in order to reduce the real property tax burden on business.
The Business Council has also asked the Governor to consider a similar Executive Order addressing the impact of agency proposed legislation and rules on private sector business.
Business Council staff contact: email@example.com.