Despite challenges of executive transition, budget process marches forward

STAFF CONTACT :

Ken Pokalsky
14
Mar
2008

The Senate Republicans and Assembly Democrats each introduced an alternative budget plan this week. The Senate's came out in the form of a legislative resolution, while the Assembly introduced amended versions of the Governor's budget bills. Both the Senate resolution and the Assembly budget bills were approved by their respective houses this week.   Two-way budget negotiations, and joint legislative conference committees will commence next week.

Key features of these proposals:

Senate Resolution:

  • Rejects all revenue measures included in the Executive Budget proposal.
  • Limits total spending to levels proposed in the Executive Budget.
  • Does not include any of the Governor's economic development funding proposals.
  • Rejects “without prejudice” many of the Executive Budget spending proposals, including capital spending proposals for CUNY ($1.7 billion) and SUNY ($2.7 billion).
  • Increases state education aid by $381 million over the level proposed in the Executive Budget.
  • Rejects the Executive Budget proposal for a one year delay in basic middle class STAR rebates.
  • Rejects proposed changes to brownfield program eligibility criteria and tax credits.
  • Accepts the proposed one year extender of Power for Jobs and Energy Cost Savings Benefit programs, but rejects the Executive Budget's proposal to create a seven year replacement program.

Assembly Budget bills:

  • Accepts a majority of revenue measures included in the Executive Budget proposal; rejects or modifies several proposed business tax changes, including those to: eliminate the capital base cap on Article 9-A liability; expanding tax liability of real estate investment trusts; establish an economic nexus for out of state credit card operations. (Comparison of Executive Budget and Assembly revenue legislation is available here.)
  • Proposes to increase to 7.7% the personal income tax rate on income over $1 million, raising an estimated $1.5 billion per year.
  • Increases state education aid by $430 million over the level proposed in the Executive Budget.
  • Proposes to extend (through October 2010) the existing investment tax credits for certain financial service sectors.
  • Adopt the Governor's proposed $150 million “investment opportunity fund,” which is primarily an infrastructure investment fund, while rejecting the remainder of the Executive Budget economic development initiatives.
  • Accepts the proposed one year extender of Power for Jobs and Energy Cost Savings Benefit programs, but rejects the Executive Budget's proposal to create a seven year replacement program.
  • Propose a $400 million “housing opportunity fund” within the NYS Mortgage Agency, to provide funds for the creation and rehabilitation of “affordable, supportive and workforce housing”.
  • Rejects proposed changes to brownfield program eligibility criteria and tax credits.
  • Propose a “Climate Change Solutions Fund” to provide funding for public sector emission reduction projects, funded by revenues from the sale of CO2 emission allowances.
  • Propose a new state energy planning process.