Government Affairs Albany Update
February 20, 2009
Stimulus Impact on NYS
The Paterson Administration has made additional information available on the impact of the American Recovery and Investment Act on the state. Its preliminary analysis shows that the state expects at least $24.6 billion over the next two years, with funding for State fiscal relief, as well as for education aid, infrastructure projects, unemployment insurance benefits and others. Preliminary numbers on funding to New York under the ARRA, by spending category, is available here. By far, the largest category is Medicaid, with nearly $11 billion in increased federal support; with education “restorations” and support at $4.6 billion; and infrastructure programs receiving nearly $4 billion. The Governor has also created an Economic Recovery and Investment Cabinet, to be headed by Tim Gilchrist, former Deputy Secretary for Economic Development. The state's cabinet web site is available here; it contains additional information including the text and summaries of the Act. Governor Paterson has said that the federal funding does not change the need to bring state level more in line with long-term state revenues, nor diminish the need to re-evaluate state operations and “produce a smarter, less costly, more efficient government.” Other than restoring local highway funds, the Paterson Administration yet to make formal recommendations on how the ARRA funds would affect their budget proposal for Fiscal 2010.
PIT Hike Opposed
The Business Council has issued a press release and memo in opposition to S.2021 (Schneiderman), which would impose a projected $6 billion annual increase in personal income tax levies. An Assembly companion bill is expected shortly. This proposal would give New York a 10.3% top PIT rate, the second highest in the nation, and about 60 percent above the median top rate of the 43 states with a personal income tax. A copy of the bill text of S.2021 and our memo in opposition is available here.
NYSTAR Supercomputing Program
New York State businesses are eligible to access state-supported high performance computing resources for simulation based research and similar projects. NYSTAR's HPC Program provides computational resources at no charge to in-state businesses, for the purpose of applying world class computational resources to the research and development of product lines, to help them gain a competitive advantage in the global economy. NYSTAR is also finalizing a program to make computational scientists available to assist businesses in using the supercomputing resources under the HPC Allocation Program. Detailed information on the program is available here.