Local leaders tout budget highlights, failures

ALBANY | In a series of votes, state lawmakers have approved the $229 billion 2023-24 state budget. It is a month late. The budget package is usually made up of 10 bills; five relate to fiscal measures and five involve policy, such as safety and transportation. "The overall budget is approximately $229 billion. It is balanced," Gov. Kathy Hochul said in an announcement late last week. Lawmakers held state operations spending below a three percent increase and put 15 percent into reserves, a rainy-day savings initiative Hochul launched last year. Assemblyman Billy Jones (D-Chateaugay Lake) said the spending plan includes critical funding for the North Country. Though he expressed disappointment with some of the policy in the final calculation, Jones noted important resources will directly address North Country concerns. "After numerous debates and late nights in Albany, we have finally come to an agreement," Jones said in a statement on May 3. "We made some changes to bail reform to provide clarity for justices as well as allocated funding for training. Although I was disappointed by the governor's proposal for changes to Medicaid reimbursement to counties, the governor already had the ability to do this by policy. My colleagues and I were able to negotiate a three-year off-ramp to help counties transition." eFMAP FUNDS Jones is referring to the state's taking of eFMAP (Enhanced Federal Medical Assistance Percentage), which is money from the federal government for counties to use in Medicaid programs. Sen. Dan Stec (R-Queensbury) said this will cause further financial distress to local governments and homeowners by intercepting funding and shifting more than $2 billion in costs onto local taxpayers over the next four years. "This move will further accelerate our affordable housing crisis by driving up property taxes," Stec said. At the New York State Association of Counties, President Michael Zurlo raised a related concern. "The budget undermines counties' ability to control the growth of property taxes by pocketing federal Medicaid funding that has historically been shared with counties. These funds were championed by U.S. Senate Majority Leader Chuck Schumer and earmarked for local government taxpayers," he said in a statement. "The state's decision to intercept these funds is totally unnecessary and counterproductive. It will increase Medicaid costs for property taxpayers by hundreds of millions of dollars per year, plus a one-time loss of $1.6 billion of previously owed Medicaid savings that the State has decided to withhold indefinitely." Zurlo said the unilateral action undermines prior efforts by Governors M. Cuomo, Pataki, Spitzer, Paterson, and A. Cuomo to rein in the impact on local property taxes associated with the state's Medicaid program. "New York counties send to Albany nearly $8 billion each year as the local share of Medicaid expenses and have no control over the costs of the program. While we're frustrated by the inclusion of this cost shift, we commend the State Legislature for their efforts to remove this provision from the budget and for securing an agreement to phase out the funding over several years, rather than immediately shifting these costs to local taxpayers." $229 BILLION Stec said this year's is the worst state budget he has seen in his 11 years in the legislature. "Not only does this budget come at a ridiculously high price tag, it focuses on the wrong priorities. Despite promising to enact a prison reuse initiative for sites like Moriah Shock, this major issue was ignored. Instead of providing our taxpayers with needed relief, it allocates $1 billion to assist illegal immigrants. Rather than fund universal school lunches, something that has widespread bi-partisan support, it shortchanges that program in favor of providing several million to cannabis-related programs." For Jones, the budget's policy to reissue charter school licenses is a disappointment. "But I am pleased that my colleagues and I secured important funding for education, including fully funding Foundation Aid and critical funding for SUNY campuses and community colleges," Jones said. "My colleagues and I also increased funding for hospitals and nursing homes, but I realize it is not nearly enough. Our hospitals need more help and I will continue to push for more funding." FY2023-24 state spending does increase Medicaid reimbursement rates for hospitals by 7.5 percent and by 6.5 percent for nursing homes. Assemblyman Matt Simpson (R-Queensbury) also said this fell short. "Even with broad support to provide a critical 20 percent Medicaid reimbursement rate increase for our nursing homes, the first such rate increase in 15 years, this budget will not come anywhere close to the level needed," Simpson said. "Nursing homes will continue to incur huge losses and struggle to compensate qualified staff candidates resulting in the continued loss of access to much-needed and heavily sought-after care by our vulnerable senior populations. Coupled with a woefully inadequate cost of living adjustment increase for other human services workers, I am fearful a rapidly deteriorating staffing situation in our critical care service areas will remain unresolved and many in need will continue going without the critical care they desperately seek." FIREFIGHTER SUPPORT The final budget incorporates Jones' bills to establish a $25 million capital fund (A4929) and a $6.5 million training fund (A3242) for volunteer fire departments. "Volunteer fire departments are at a crisis and need state support," Jones said. "We rely on them to be there during emergencies, and the state needs to step up and make sure that fire departments have the resources they need to keep our communities safe. I introduced these bills last year because of the many heartbreaking conversations with volunteer firefighters across the North Country about deteriorating facilities, outdated equipment, and dwindling membership. Including $31.5 million in the state budget for capital projects and training will help these fire departments tremendously." FIREARMS OK FOR RE-ENACTORS Jones said his bill to allow firearms at historic battle re-enactments (A4133), which was an issue during the Battle of Plattsburgh events last year, is in the final budget. "I am happy that re-enactors and the history community can finally rest easy knowing that they are officially allowed to carry firearms during historic battle re-enactments," said Jones. "These events not only bring tourists from all over, including Canada, but they are an important part of our communities and preserving our local history." The final budget made additional changes to the concealed carry law passed last year, clarifying language to allow military salutes during funerals and other celebrations. It includes language clarifying carry for qualified law enforcement officers authorized to carry concealed firearms. LINE ITEMS In addition to funding for volunteer fire departments, Jones secured the following budget items for the North Country: $200,000 for Senior Planet (Older Adults Technology Service) $225,000 for the North Country Chamber of Commerce $100,000 for the Adirondack North Country Association (ANCA) and $420,000 for the Adirondack Diversity Initiative $250,000 for the Paul Smith's Visitor Information Center $8 million to address overuse in the Adirondack and Catskills parks $2 million for a Survey of Climate change and Adirondack Lakes Ecosystems (SCALE) $100,000 for the Adirondack Mountain Club for a High Peaks Visitor Center $125,000 for North Country veterans $225,000 for the Maple Producers Association $300,000 for the Northern New York Agricultural Development Program $3.45 million for the Local Tourism Matching Grants Program "Between the funding for volunteer fire departments, education, the Adirondacks, and numerous North Country community organizations, this year's budget provides critical funding for our region and will help local residents get the resources they need," Jones said. ECONOMIC GROWTH North Country Chamber of Commerce President Garry Douglas found beneficial supports for economic growth. "We welcome the $90 million for continued support of ORDA (Olympic Regional Development Authority) and its sports venues. Of particular importance to our region's large and growing cluster of transportation companies, we are pleased that the MTA's fiscal challenges have been addressed, securing continued capital investments in trains and buses." Douglas said he hopes the conversation about affordable housing continues, even though Gov. Hochul's Housing Compact was withdrawn. "While we regret that the conversation between the governor and legislature on how to increase access to affordable housing in areas like the Adirondacks was set aside," noted Douglas, "we encourage this discussion to continue post-budget." DEFICIT PLANNING Stec said the budget spends at an unsustainable $229 billion and positions the state for a major budget deficit next year. The budget also puts 15 percent into a rainy-day reserve fund to counteract future budget shortfalls. According to NYSAC, the spending plan anticipates lower tax revenues over the next four years due to possible lower income and capital gains tax receipts. Predicted budget gaps are as follows: 2025 - $5.7 billion; 2026 - $9 billion; 2027 - 7.5 billion. "Even with these gaps the Governor's proposed budget fully funded reserve accounts two years ahead of schedule with a deposit in March 2023 of $5.4 billion, bringing total reserves to a record high of $19 billion," NYSAC said. The enacted budget does move the minimum wage to $17 per hour for New York City and downstate (Nassau, Suffolk, Westchester counties) by Jan. 1, 2026; and the remainder of the state to $16 per hour by Jan. 1, 2026.

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Local leaders tout budget highlights, failures

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