On January 31, 2007, Governor Eliot Spitzer's
2007-08 Executive Budget was presented to the Legislature. In addition
to the six appropriations bills the Governor submitted, he also
submitted six Article VII Bills. These six bills are his legislative
proposals.
The Executive Budget was a $120.6 billion proposal plan that increases
overall spending by 6.3% over this year's fiscal budget and nearly $10
billion more than Gov. Pataki's proposed budget a year ago. Of the
$120.6 billion proposal, legislators will have the most impact over the
$53.3 billion General Fund. This part of the budget is supported by
state-raised tax dollars. Of the General Fund, $30.6 billion will come
from taxpayers; $10.9 billion from user taxes; $6.3 billion from
business revenues and $4.9 billion from unspecified miscellaneous tax
revenues.
The state debt would increase from $48.8 billion to $52.6 billion, a
7.9% increase in the proposed budget.
The Governor stated that this budget proposal does not increase taxes.
Highlights of the Governor's Budget include:
Medicaid
The Governor's proposal reduces the state funds growth in Medicaid from
8% over the last five years to 1.7% in 2007-08. Spitzer said that New
York has the highest spending in the nation - despite having
approximately 2.6 million people uninsured.
The savings plan cuts over $1.29 billion from health care funds.
Tax Loopholes
The budget proposal includes $449 million from the elimination of
certain tax shelters. The Governor stated that, "these specific
provisions are not tax increases, but rather limit the ability of
taxpayers to take advantage of unintended provisions in law to reduce
their tax exposure through sophisticated tax planning techniques.
Tax Relief
The Governor proposed a three-year, $6 billion expanded property tax
relief plan. The Executive Budget Proposal for fiscal year 2007-08
provides $1.5 billion in property tax relief by increasing the STAR
Program with additional benefits to taxpayers based on income. STAR
would increase by $2 billion in 2008-09 and $2.5 billion in 2009-10.
Education
The Governor proposed a "Four-Year Educational Investment Plan" that
will increase school aid by $1.4 billion in 2007-08 which will increase
to $7 billion by 2010-11. The new funding will be tied to accountability
measures.
The Budget provides funds to address the school funding needs
highlighted by the Campaign for Fiscal Equity lawsuit, increasing state
funds directed to New York City schools by $3.2 billion over the next
four years. When combined with $2.2 billion in increased spending on
education, New York City has committed to providing in their four-year
financial plan, the total amount of increased spending on New York City
schools over the next four years will be $5.4 billion. In this funding
proposal are monies for the construction of new schools.
The Budget would allow for 150 new charter schools. Currently, the limit
has been set at 100 statewide. It provides $15.2 million of transitional
funding to five school districts, impacted by a concentration of charter
schools (Buffalo, Albany, Schenectady, Roosevelt and Lackawanna) and a
new requirement for the Regents to notify a school district of a new,
approved charter school in their district prior to adoption of their
school budget.
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Other highlights from the proposed Budget:
Capital Projects
Dedicated Highway and Bridge Trust Fund $1,919,247,000
Rail Services
For the construction and improvement of passenger and
rail freight projects 20,000,000
Non-MTA Capital Purpose
For the payment of the costs of mass transportation
capital projects 16,000,000
Recreation Purpose
Parks, recreation and historic preservation projects $ 25,225,000
Aviation Purpose
For projects at Stewart and Republic Airports 8,000,000
Urban Development Corporation Purposes
Roosevelt Island Operating Corporation Modernization of aerial tramway 15,000,000
Governor's Island improvement projects 20,000,00
Harriman Research and Technology Park 7,500,000
The Executive Budget Proposal includes a $200 million four-year
commitment also includes a $300 million Investment and Job Creation
Program.
Division of State Police
Development of a Troop G Facility 50,000,000
New Facilities Purpose - Troop Headquarters 6,000,000
Executives 2007-2008 Article VII Legislation
In addition to the above-mentioned articles from the Executive's
Proposed Budget and his press conference, the Governor can submit
legislative items pursuant to Article VII of the Constitution.
WICKS Legislation
WICKS Legislation modifies the multiple bidding requirements (the WICKS
Law) for state, municipalities, school districts and public authorities
by increasing the current thresholds from $50,000 to $1 million for
upstate municipalities and to $2 million for New York City. It also
provides for annual inflation adjustments for these proposed new WICKS
Law thresholds. Such adjustments shall be made on the first of September
of each year, based upon the Producer Price Index for non-residential
buildings published by the Bureau of Labor Statistics of the United
States Department of Labor and shall be applicable to solicitations
released after such annual adjustment date.
Photo Monitoring at Work Zones
This proposal authorizes a program of photo-monitoring enforcement of
speeding in up to 50 work zones (to be determined by the Superintendent
of the State Police). Violations will result in a $50 fine, but no
points on a driver's license.
Transportation
This proposal authorizes the Consolidated Local Street and Highway
Improvement Program (CHIPS) and Marchiselli Capital Aid to programs to
counties, cities, towns and villages for SFY 2007-2008 at $296.5 million
and $35.7 million respectively.
UDC
This proposal makes permanent the general loan powers of the New York
State Urban Development Corporation which is currently set to expire on
July 1, 2007. Provisions to extend the sunset date have been enacted
annually since 1997.
Empire State Development Corp.
This proposal establishes the Investment and Job Creation Program to be
administered by the Urban Development Corporation d/b/a Empire State
Development Corporation (ESDC). Also, it requires the ESDC to promulgate
rules and regulations setting forth the standards that will govern the
selection of the projects with an authorization of $300 million.
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In our next issue, we will highlight individual projects under capital
construction, as well as construction projects where monies have been
reappropriated, thereby enabling them to proceed.
