Enacted Budget Provides $113 Million in Property Tax Relief Over Three Years and Increases School Aid by Over $90 Million
Albany, NY – April 10, 2014 – (RealEstateRama) — Governor Andrew M. Cuomo today highlighted key points of the 2014-2015 New York State Budget, the fourth consecutive on-time budget that holds spending growth below two percent, in Irondequoit. The Budget provides $1.5 billion in property tax cuts to help New York’s homeowners and encourage local governments to increase efficiencies, transforms schools and increases education spending by a record 5%, and lowers the corporate income tax rate to zero.
“This fourth consecutive on-time budget builds on the State’s progress over the past three years and the commitment to grow the economy and create good jobs for New Yorkers and their families,” Governor Cuomo said. “It maintains our fiscal discipline by holding spending growth below two percent, while also cutting up to $1.5 billion in property taxes to help homeowners and address the unsustainable proliferation of local governments. The budget also contains major investments in education that will transform our schools, including an increase in state aid by more than $90 million for schools in the Finger Lakes region and support for quality pre-k programs across the state. These investments, along with many other important provisions, are what make this budget a blueprint for success that will continue to make New York stronger, more competitive, and more affordable for all.”
Property Tax Relief
The Budget includes a new Property Tax Rebate Program to provide relief to New York homeowners and address one of the primary drivers of the State’s high property taxes – the outsized number of local governments. Over three years, the program will result in over $1.5 billion in direct property tax relief, and the Finger Lakes region will see a total savings over three years of $113 million.
The property tax relief package is designed to incentivize local governments and school districts to share services and reduce their financial burden on the taxpayer. In the first year under the reform plan, New Yorkers will receive property tax relief if their local governments stay within the property tax cap.
The property tax cuts will be extended for a second year in jurisdictions which comply with the tax cap and have put forward a plan to save one percent of their tax levy per year, over three years. While localities may offer a variety of approaches, the plan is designed to incentivize county governments and school districts to convene and facilitate a process and submit a county-wide or BOCES region-wide plan for approval.
Support for Schools
Meeting the education needs of New York’s students gives them a path to prosperity and the tools to become productive members of society, while also providing a more secure economic future for the state. The Budget includes a series of actions that build on the progress of the last three years to ensure all of New York’s students receive a quality education.
School Aid: The Budget includes a $1.1 billion – or 5.3% – increase in education aid for the 2014-15 school year. High-needs school districts will receive nearly 70 percent of the 2014-15 allocated increase. The Finger Lakes region will receive over $1.7 billion in School Aid, an increase of over $90 million.
Statewide Universal Full-Day Pre-Kindergarten: The Budget builds upon the success of the first-ever State-funded full-day pre-kindergarten program by committing to invest $1.5 billion over five years to support the phase-in of a Statewide Universal Full-Day Pre-Kindergarten program.
Protect Choice for all of New York’s Children: The Budget increases tuition funding for charter school students over three years: $250 per student the first year, $350 the second, and $500 in the third. The Budget will also promote the growth of charter schools by addressing their facility needs, and charter schools will be eligible for pre-kindergarten funding.
Reform Common Core Implementation: The Budget puts into law a series of recommendations to immediately improve the implementation of the Common Core in New York State, including banning standardized “bubble tests” for young children, protecting students from high stakes based on unfair test results and over-testing, and protecting privacy.
Other Regional Highlights
State Parks: The New York Works Program will provide $90 million to rehabilitate tate parks, continuing the infusion of capital dollars for New York’s parks. A total of $10.6 million will be provided for ten state parks and historic sites around the Rochester area.
Environmental Protection Fund: The 2014-15 Environmental Protection Fund (EPF) is funded at $162 million and includes several projects for the Rochester area.
Finger Lakes/Lake Ontario Watershed: The EPF includes $1.5 million, an increase of $200,000 over the 2013-14 Enacted Budget, for the protection and enhancement of water quality.
Zoos, Botanical Gardens, and Aquaria (ZBGA): The EPF budget includes $11.35 million for ZBGA’s statewide in 2014-15. While the ZBGA awards for 2014 have yet to be determined, in 2013, Rochester zoos, botanical gardens and aquariums received more than $398,000 in grants from this program.
Environmental Justice Grants: The Budget includes $490,000 for grants (of up to $50,000 each) to community based organizations for projects that address environmental harms and risks. Specific grants have not yet been determined for the coming year.
Accelerated Phase-Out of 18-A Utility Surcharge: The Budget accelerates the phase-out of the 18-a temporary assessment for all customers. New Yorkers pay some of the highest energy bills in the nation and the temporary utility assessment exacerbates this burden on struggling businesses and families. The Budget will save businesses and residents $600 million over the next three years.
Voluntary Grant Program for Back-up Power at Gas Stations (Upstate): New York is the first state in the nation with a comprehensive plan to ensure that power is maintained at strategically located gas stations in an emergency. $3.1 million in Federal funding will be made available to approximately 241 Upstate gas stations located within a half mile of exits on critical highways who voluntarily install backup power capacity.
New York State Agricultural Experiment Station (Geneva): Approximately $600,000 in Ag&Mkts local assistance funding will be provided to the NYS Agricultural Experiment Station, operated by Cornell, for various agricultural research initiatives, including $200,000 for a program to evaluate and test hop and barley varieties in New York.
Continuing the Success of the REDCs: The Regional Economic Development Councils created in 2011 have replaced the top-down approach to economic development with a process that focuses on the unique strengths and priorities of each region. The Budget provides $150 million in flexible new economic development capital funding and $70 million in State tax credits for a fourth round of the REDC process.
Economic Transformation Program: $32 million to support communities affected by the closure of four correctional facilities in July 2014 and any closure of juvenile justice facilities in 2014-15 (NOTE: Butler Correctional Facility in the Finger Lakes Region is slated to close). Communities will be able to use the funds to leverage private sector investments that create jobs and support initiatives that transform their economies. The four correctional facility sites that align with a university will also be eligible for inclusion in the START-UP NY program.
Continued Economic Development Initiatives: The Enacted Budget continues the support of various projects, including $872,330 for the Rochester Center of Excellence in Photonics, $872,330 for the Rochester Center of Excellence in Sustainable Manufacturing, $872,330 for the Rochester Center of Excellence in Data Sciences, $600,000 for the Seneca Army Depot, and $2 million for military base retention efforts.
Expand and Launch Another Round of NYSUNY 2020: The Budget includes $55 million for a new and expanded round of NYSUNY 2020 grants. Priority will be given to plans that use technology to improve academic success and job opportunities for students, leverage public-private partnerships through the START-UP NY program, and better connect students to the workforce.
The Rochester Genesee Regional Transportation Authority (RGRTA): Serves areas in Monroe, Genesee, Livingston, Orleans, Wayne, Wyoming and Seneca counties, increases by $969,000 on a year-to-year basis to a total of $33.6 million.
Contact Information:
Governor’s Press Office
NYC Press Office: 212.681.4640
Albany Press Office: 518.474.8418
press.office (at) exec.ny (dot) gov
