Assembly Announces Approved $212 Billion SFY 2021-22 Budget Invests in N.Y. Communities and Aids in Recovery from the COVID-19 Pandemic

Speaker Carl Heastie and Ways and Means Committee Chair Helene E. Weinstein today announced that the approved State Fiscal Year (SFY) 2021-22 Budget of $212 billion will put New York families first by making critical investments in communities helping our economy recover from the COVID-19 pandemic.

The budget includes General Fund spending of $88.99 billion in SFY 2021-22. This is an increase of $14.3 billion or 19.1 percent over SFY 2020-21.

The approved budget provides All Fund spending of $212 billion in SFY 2021-22. This is an increase of $18.7 billion or 9.7 percent over SFY 2020-21.

Assembly Speaker Carl Heastie said, “Budgets are a statement of values, and in my two decades of service to the people of New York I can’t think of a more far-reaching and impactful budget than this. It meets longstanding goals of our Assembly Majority and addresses the historic inequities that have existed for too long. My colleagues and I have worked tirelessly to deliver a budget that will help New York rise from this health crisis and its devastating economic impacts while upholding our commitment to putting New York families first. I am particularly proud that we have been able to make historic investments in our schools, keep higher education within reach, deliver the relief that our small businesses need to get back on their feet, and provide critical funding for child care that families need to get back to work. I thank all my colleagues, especially Ways and Means Committee Chair Helene Weinstein, for their tireless efforts and advocacy in crafting a budget that truly meets the needs of all New Yorkers.”

“This budget makes the critical investments we need in our communities, in our people, in programs that support New Yorkers when they are most vulnerable and in helping us recover from the COVID-19 pandemic,” Assemblymember Weinstein said. “We have fought for funding for education, for tenants and homeowners struggling to make ends meet, and helping our small businesses keep their doors open. The Assembly Majority is dedicated to ensuring that our budget improves the lives of all New Yorkers.”

Revenue

The approved budget includes a series of new tax proposals that would increase state revenues by $3.5 billion in SFY 2021-22 and by $4.3 billion in SFY 2022-23. Last month, Congress passed the American Rescue Plan which included $23.8 billion in federal funding to help New York State and local governments to recover from the COVID-19 pandemic, rebuild the economy and get people back to work.

The budget would establish a new progressive tax rate for New York’s highest earners. For those with incomes over $5 million, the personal income tax (PIT) surcharge would increase the current 8.82 percent rate to 9.65 percent and establish two new brackets as follows: 10.3 percent for taxpayers between $5 million and $25 million and 10.9 percent for taxpayers over $25 million. This would generate approximately $2.8 billion in SFY 2021-22 and $3.3 billion in SFY 2022-23.

The plan will also increase the corporate tax rate from 6.5 percent to 7.25 percent for corporate franchise taxpayers with net incomes over $5 million and reinstate the capital base tax at 0.1875 percent. This will generate $750 million in SFY 2021-22 and $1.1 billion in SFY 2022-23.

The budget agreement authorizes mobile sports wagering in New York State, which will bring the state $99 million in SFY 2021-22,with the revenue growing to approximately $500 million per year over multiple years. Providers would be chosen through a competitive bidding process based upon certain scoring methods to balance revenue to New York State and for the Gaming Commission to determine the best platforms and operators for New York long term. The bill also sets aside $6 million annually for problem gambling services and $5 million for youth sports in underserved areas statewide, with the remainder of this funding will supplement education funding.

Getting New Yorkers Back to Work

The budget includes $800 million in funding for a Small Business Recovery Grant Program to help small businesses across the state that have struggled to keep their doors open over the last year. It also includes $25 million for the NY Restaurant Resiliency Grant program as well as $35 million in tax credits for restaurants in areas impacted by enhanced COVID-19 restrictions.

The spending plan includes $40 million for a new Arts Recovery Grant Program to assist with reopening efforts of various not for profit arts organizations and to provide financial support for the conversion of outdoor venue spaces. The budget also includes $43.1 million in total support for the New York State Council of the Arts (NYSCA) operating budget and $1 million for arts stabilization grants.

The enacted budget allocates $2.4 billion in federal aid to ensure local social services districts are able to fully fund child care subsidies provided to eligible families at or below 200 percent of the federal poverty level statewide, therefore expanding the availability of subsidies.

The approved spending plan also includes $50 million for the COVID-19 Recovery Workforce Initiative to support initiatives to re-engage those who have been disproportionately impacted by the economic fallout from the pandemic.

The budget also provides $2.1 billion for the Excluded Worker Fund, which will provide critical support for workers who do not have access to unemployment, federal stimulus funds or other assistance funds during the COVID-19 pandemic.

Rent Relief and Investments in the Social Safety Net

The COVID-19 pandemic and resulting economic crisis have forced New Yorkers to struggle financially, making it hard for them to pay their rent or mortgages. In total, approximately $3 billion in combined federal and state dollars will be provided for rent and homeowner relief, including: $100 million for a hardship fund for those who cannot access funds from the Emergency Rental Assistance Program, $100 million to reduce homelessness, and $575 million in federal homeowner relief, including a three year, $60 million commitment to fund the Homeowner Protection Program (HOPP) to provide legal assistance to homeowners facing foreclosure.

New York received $2.3 billion in federal funding for Emergency Rental Assistance to aid eligible renters with rental arrears, utility and home energy costs or arrears, and future rent. The spending plan includes a proposal to get this rent relief funding to New Yorkers most in need quickly and efficiently.

The spending plan provides $325 million in capital funding to housing authorities across New York State, including $200 million for the New York City Housing Authority (NYCHA).

The approved spending plan includes $200 million for Pandemic Emergency Assistance, which will provide federal funds to local social services districts for flexible emergency services, as well as funding for services for survivors of domestic violence, food assistance for older New Yorkers, and support for families in need to purchase diapers for children under three years of age. It also includes $120 million for the Water Assistance Program, which is supported by federal funds and will help low income people pay drinking and waste water arrears and other related expenses.

Education

Investing in our schools, from Foundation Aid to funding for technology and mental health care, is more important than ever after our students have had two school years disrupted by COVID-19. The enacted budget includes $19.8 billion in Foundation Aid and provides a multi-year commitment to fully fund Foundation Aid over the next three years.

The enacted budget includes a multi-year investment in prekindergarten, including $105 million for this year.

The approved plan also makes transportation costs related to delivering food, educational materials, and internet connectivity, as well as transportation standby costs reimbursable.

The SFY 2021-22 Budget includes $18 million in ongoing funding for My Brother’s Keeper programs, for a total of $108 million in funding since the program's creation.

Higher Education

With so many New Yorkers struggling to make ends meet, it is more important than ever to ensure that tuition costs do not put higher education out of reach for New York’s students. The budget includes $13.7 billion in funding for higher education. It rejects proposed tuition increases for the State Universty of New York (SUNY) and the City University of New York (CUNY), and restores $46.4 million in operating aid to SUNY and $26.2 million to CUNY. The budget also provides SUNY and CUNY each with $100 million for expansion projects.

The funding plan would increase the maximum Tuition Assistance Program (TAP) award by $500, bringing it from $5,165 to $5,665. It also includes almost $180 million in funding for higher education opportunity programs.

Transportation

Investments in transportation are critical to getting the economy moving again. These investments provide important jobs in construction and ensure New Yorkers can get where they are going safely and efficiently. The approved budget will invest $11.2 billion in the state’s transportation network. The budget includes funding to provide $3.1 billion for the MTA, $368.17 million to non-MTA downstate transit systems and $235 million to upstate transit systems.

The funding plan also includes $538.1 million for the Consolidated Highway Improvement Program (CHIPs).

Human Services

The American Rescue Plan passed by Congress provided approximately $2.4 billion in federal child care aid for New York State. The budget directs that funding to ensure local social services districts are able to fully fund subsidies provided to eligible families at or below 200 percent of the federal poverty level statewide, expands access to priority groups that do not currently receive subsidies, limits copays, provides reimbursement for absences and makes investments in workforce stabilization.

The budget includes $69.4 million in local assistance for programs that provide services critical to the wellbeing of New York’s children, including childcare, child welfare services, foster care, adoption subsidies, adult protective and domestic violence services.

The approved funding plan provides critical funding for mental health services through the Office of Mental Health (OMH) including restoring $17.2 million for local assistance payments for non-residential programs under the OMH.

The approved budget would create a $32 million fund to support treatment and prevention of opioid use disorder, including funding to support medication-assisted treatment (MAT) in correctional facilities. The funding would be provided from the opioid settlement with McKinsy and Company, Inc.

Health

The COVID-19 pandemic has put incredible stress on our healthcare system, and demonstrated just how important it is that New Yorker’s have quality, affordable healthcare. The SFY 2021-22 budget includes $96 billion for health care services and systems throughout New York. It provides $542 million in restorations to the Medicaid program, including $204.4 million for hospitals and $51.75 million for the Managed Long Term Care (MLTC) Quality Pool.

Agriculture

The budget includes $35.78 million in funding for agricultural aid to localities and other critical agricultural programs. To help connect New York’s farmers with programs that get food to those in need, the spending plan includes $50 million for Nourish NY.

Environmental Conservation

The approved spending plan invests $1.84 billion in funding for the environment. This includes $500 million for clean water infrastructure and $300 million for the New York State Environmental Protection Fund (EPF).

Assembly Announces Approved $212 Billion SFY 2021-22 Budget Invests in N.Y. Communities and Aids in Recovery from the COVID-19 Pandemic

Speaker Carl Heastie and Ways and Means Committee Chair Helene E. Weinstein today announced that the approved State Fiscal Year (SFY) 2021-22 Budget of $212 billion will put New York families first by making critical investments in communities helping our economy recover from the COVID-19 pandemic.

The budget includes General Fund spending of $88.99 billion in SFY 2021-22. This is an increase of $14.3 billion or 19.1 percent over SFY 2020-21.

The approved budget provides All Fund spending of $212 billion in SFY 2021-22. This is an increase of $18.7 billion or 9.7 percent over SFY 2020-21.

Assembly Speaker Carl Heastie said, “Budgets are a statement of values, and in my two decades of service to the people of New York I can’t think of a more far-reaching and impactful budget than this. It meets longstanding goals of our Assembly Majority and addresses the historic inequities that have existed for too long. My colleagues and I have worked tirelessly to deliver a budget that will help New York rise from this health crisis and its devastating economic impacts while upholding our commitment to putting New York families first. I am particularly proud that we have been able to make historic investments in our schools, keep higher education within reach, deliver the relief that our small businesses need to get back on their feet, and provide critical funding for child care that families need to get back to work. I thank all my colleagues, especially Ways and Means Committee Chair Helene Weinstein, for their tireless efforts and advocacy in crafting a budget that truly meets the needs of all New Yorkers.”

“This budget makes the critical investments we need in our communities, in our people, in programs that support New Yorkers when they are most vulnerable and in helping us recover from the COVID-19 pandemic,” Assemblymember Weinstein said. “We have fought for funding for education, for tenants and homeowners struggling to make ends meet, and helping our small businesses keep their doors open. The Assembly Majority is dedicated to ensuring that our budget improves the lives of all New Yorkers.”

Revenue

The approved budget includes a series of new tax proposals that would increase state revenues by $3.5 billion in SFY 2021-22 and by $4.3 billion in SFY 2022-23. Last month, Congress passed the American Rescue Plan which included $23.8 billion in federal funding to help New York State and local governments to recover from the COVID-19 pandemic, rebuild the economy and get people back to work.

The budget would establish a new progressive tax rate for New York’s highest earners. For those with incomes over $5 million, the personal income tax (PIT) surcharge would increase the current 8.82 percent rate to 9.65 percent and establish two new brackets as follows: 10.3 percent for taxpayers between $5 million and $25 million and 10.9 percent for taxpayers over $25 million. This would generate approximately $2.8 billion in SFY 2021-22 and $3.3 billion in SFY 2022-23.

The plan will also increase the corporate tax rate from 6.5 percent to 7.25 percent for corporate franchise taxpayers with net incomes over $5 million and reinstate the capital base tax at 0.1875 percent. This will generate $750 million in SFY 2021-22 and $1.1 billion in SFY 2022-23.

The budget agreement authorizes mobile sports wagering in New York State, which will bring the state $99 million in SFY 2021-22,with the revenue growing to approximately $500 million per year over multiple years. Providers would be chosen through a competitive bidding process based upon certain scoring methods to balance revenue to New York State and for the Gaming Commission to determine the best platforms and operators for New York long term. The bill also sets aside $6 million annually for problem gambling services and $5 million for youth sports in underserved areas statewide, with the remainder of this funding will supplement education funding.

Getting New Yorkers Back to Work

The budget includes $800 million in funding for a Small Business Recovery Grant Program to help small businesses across the state that have struggled to keep their doors open over the last year. It also includes $25 million for the NY Restaurant Resiliency Grant program as well as $35 million in tax credits for restaurants in areas impacted by enhanced COVID-19 restrictions.

The spending plan includes $40 million for a new Arts Recovery Grant Program to assist with reopening efforts of various not for profit arts organizations and to provide financial support for the conversion of outdoor venue spaces. The budget also includes $43.1 million in total support for the New York State Council of the Arts (NYSCA) operating budget and $1 million for arts stabilization grants.

The enacted budget allocates $2.4 billion in federal aid to ensure local social services districts are able to fully fund child care subsidies provided to eligible families at or below 200 percent of the federal poverty level statewide, therefore expanding the availability of subsidies.

The approved spending plan also includes $50 million for the COVID-19 Recovery Workforce Initiative to support initiatives to re-engage those who have been disproportionately impacted by the economic fallout from the pandemic.

The budget also provides $2.1 billion for the Excluded Worker Fund, which will provide critical support for workers who do not have access to unemployment, federal stimulus funds or other assistance funds during the COVID-19 pandemic.

Rent Relief and Investments in the Social Safety Net

The COVID-19 pandemic and resulting economic crisis have forced New Yorkers to struggle financially, making it hard for them to pay their rent or mortgages. In total, approximately $3 billion in combined federal and state dollars will be provided for rent and homeowner relief, including: $100 million for a hardship fund for those who cannot access funds from the Emergency Rental Assistance Program, $100 million to reduce homelessness, and $575 million in federal homeowner relief, including a three year, $60 million commitment to fund the Homeowner Protection Program (HOPP) to provide legal assistance to homeowners facing foreclosure.

New York received $2.3 billion in federal funding for Emergency Rental Assistance to aid eligible renters with rental arrears, utility and home energy costs or arrears, and future rent. The spending plan includes a proposal to get this rent relief funding to New Yorkers most in need quickly and efficiently.

The spending plan provides $325 million in capital funding to housing authorities across New York State, including $200 million for the New York City Housing Authority (NYCHA).

The approved spending plan includes $200 million for Pandemic Emergency Assistance, which will provide federal funds to local social services districts for flexible emergency services, as well as funding for services for survivors of domestic violence, food assistance for older New Yorkers, and support for families in need to purchase diapers for children under three years of age. It also includes $120 million for the Water Assistance Program, which is supported by federal funds and will help low income people pay drinking and waste water arrears and other related expenses.

Education

Investing in our schools, from Foundation Aid to funding for technology and mental health care, is more important than ever after our students have had two school years disrupted by COVID-19. The enacted budget includes $19.8 billion in Foundation Aid and provides a multi-year commitment to fully fund Foundation Aid over the next three years.

The enacted budget includes a multi-year investment in prekindergarten, including $105 million for this year.

The approved plan also makes transportation costs related to delivering food, educational materials, and internet connectivity, as well as transportation standby costs reimbursable.

The SFY 2021-22 Budget includes $18 million in ongoing funding for My Brother’s Keeper programs, for a total of $108 million in funding since the program's creation.

Higher Education

With so many New Yorkers struggling to make ends meet, it is more important than ever to ensure that tuition costs do not put higher education out of reach for New York’s students. The budget includes $13.7 billion in funding for higher education. It rejects proposed tuition increases for the State Universty of New York (SUNY) and the City University of New York (CUNY), and restores $46.4 million in operating aid to SUNY and $26.2 million to CUNY. The budget also provides SUNY and CUNY each with $100 million for expansion projects.

The funding plan would increase the maximum Tuition Assistance Program (TAP) award by $500, bringing it from $5,165 to $5,665. It also includes almost $180 million in funding for higher education opportunity programs.

Transportation

Investments in transportation are critical to getting the economy moving again. These investments provide important jobs in construction and ensure New Yorkers can get where they are going safely and efficiently. The approved budget will invest $11.2 billion in the state’s transportation network. The budget includes funding to provide $3.1 billion for the MTA, $368.17 million to non-MTA downstate transit systems and $235 million to upstate transit systems.

The funding plan also includes $538.1 million for the Consolidated Highway Improvement Program (CHIPs).

Human Services

The American Rescue Plan passed by Congress provided approximately $2.4 billion in federal child care aid for New York State. The budget directs that funding to ensure local social services districts are able to fully fund subsidies provided to eligible families at or below 200 percent of the federal poverty level statewide, expands access to priority groups that do not currently receive subsidies, limits copays, provides reimbursement for absences and makes investments in workforce stabilization.

The budget includes $69.4 million in local assistance for programs that provide services critical to the wellbeing of New York’s children, including childcare, child welfare services, foster care, adoption subsidies, adult protective and domestic violence services.

The approved funding plan provides critical funding for mental health services through the Office of Mental Health (OMH) including restoring $17.2 million for local assistance payments for non-residential programs under the OMH.

The approved budget would create a $32 million fund to support treatment and prevention of opioid use disorder, including funding to support medication-assisted treatment (MAT) in correctional facilities. The funding would be provided from the opioid settlement with McKinsy and Company, Inc.

Health

The COVID-19 pandemic has put incredible stress on our healthcare system, and demonstrated just how important it is that New Yorker’s have quality, affordable healthcare. The SFY 2021-22 budget includes $193.8 million for health care services and systems throughout New York. It provides $542 million in restorations to the Medicaid program, including $204.4 million for hospitals and $51.75 million for the Managed Long Term Care (MLTC) Quality Pool.

Agriculture

The budget includes $35.78 million in funding for agricultural aid to localities and other critical agricultural programs. To help connect New York’s farmers with programs that get food to those in need, the spending plan includes $50 million for Nourish NY.

Environmental Conservation

The approved spending plan invests $1.84 billion in funding for the environment. This includes $500 million for clean water infrastructure and $300 million for the New York State Environmental Protection Fund (EPF).