Governor David Paterson today proposed a series of spending cuts and new fees and taxes to close a total $15 billion gap in the State's budget this year and next. Major areas hit in the Governor's Executive Budget for FY2009-2010 are health care ($3.5 billion), education ($2 billion) and elimination of the STAR school tax adjustment rebate ($1.7 billion). Human services programs were targeted for $385 million in cuts while mental hygiene services (OMH, OMRDD, OASAS) will be cut by $425 million. Proposals to increase revenues by $3.1 billion focused on fees and sales tax increases while avoiding increases to the State's personal income tax rates.

The Governor drew praise for his proposal to increase the basic allowance portion of the State's public assistance grant for the first time in 18 years. The grant would increase by 10% for each of the next three years, rising from $291 to $387 in January 2012. The average public assistance family would be eligible for approximately $100 more a month by the time this proposal is fully implemented. "The Federation of Protestant Welfare Agencies (FPWA) applauds Governor Paterson for including vital funding increases for the most vulnerable New Yorkers in the Executive Budget," said Executive Director and CEO Fatima Goldman, who also credited the Governor for increased funding for emergency food programs.

A preliminary review of the many cuts included in the Governor's Executive Budget Proposal indicated the following:

• The Human Service Cost of Living Adjustment (COLA) would be completely eliminated in 2009-2010: To reflect a long-term commitment to this program, a COLA is still planned for 2010-11 and 2011-12, and an extension of the COLA for an additional year (2012-13) is recommended. "We are thrilled that the Governor recognizes the importance of these adjustments and truly appreciate the partnership we have with the State in the delivery of services to New York's neediest and most difficult to reach populations," said Michael Stoller, Executive Director of the Humans Services Council (HSC), which had advocated strongly to maintain the State's longer term commitment to COLAS. "Not-for-profit human service agencies offer a proven community-based model of outreach and service provision, serving the disadvantaged where they live. When there is a loss or reduction in service due to difficulties with staff retention it is the public that loses the most."
• Creation of a Youth Programs Block Grant: A $90 million block grant will be created to provide districts with greater flexibility in funding their youth programs based on local priorities, resulting in $28 million in savings next year and $31 million in 2010-2011. Programs previously funded through a total of $118 million in discrete funding that would now be part of the block grant include: Detention Services, Youth Development and Delinquency Prevention, Special Delinquency Prevention Program, Runaway and Homeless Youth, Alternatives to Detention, and Alternatives to Residential Placement.
• A variety of OCFS and OTDA contracts and programs would be completely eliminated, including:

o Homelessness Prevention Program;

o Safety Net Assistance Local Innovations Program (SNAP);

o Local Interagency VESID Employment Services (LIVES);

o Educational Resources;

o HIV Welfare-to-Work;

o Strengthening Families through Stronger Fathers;

o Preventive Contracts;

o Amy Watkins Scholarship;

o Preventive services COLA;

o Caseworker Training;

o Substance Abuse Co-location Project; and,

o Caseworker Ratio and Portable Information Technology Pilot.

• A number of other OCFS and OTDA contracts and programs would be reduced by 25%, including:

o Single Room Occupancy (SRO) Supportive Services;

o Homelessness Intervention Program (HIP);

o Nutritional Outreach;

o New York State Refugee Resettlement Assistance Program (NYSRRAP);

o New York State Citizenship Initiative;

o Home Visiting;

o Advantage Schools:

o Kinship Care (50%);

o Post Placement;

o Hoyt Trust Fund;

o Evidenced-Based Community Initiatives;

o New York/New York III.

• Supplementary state funding to support the federal 21st Century Community Learning Centers afterschool program would be reduced by $7 million next year and $10 million in 2010-2011.
• A range of senior services also are being cut, including:

o The Stony Brook Evaluation of Geriatric Home Care ($0.1 million);

o NY Connects ($3.5 million);

o Managed Care Consumer Assistance Program ($0.8 million);

o Congregate Services Initiative ($0.1 million);

o Long Term Care Ombudsman ($0.1 million).

• Senior programs being completely eliminated are:

o The Affordable Independent Living Senior Housing Pilot ($1.8 million);

o Social Workers for Geriatric In-Home Care ($0.6 million);

o End of Life Care ($0.2 million);

o Enriched Social Adult Day Centers ($0.2 million);

o Long Term Care Insurance Outreach and Education ($2.8 million);

o Sustainable Transportation ($0.7 million);and;

o The Geriatric In-Home Medical Care Pilot ($0.7 million).

Advocates and providers expressed significant concerns over the potential impact of various cuts on youth development and after school services. "These cuts to after-school programs will have a deep impact on working parents in New York," said Lucy N. Friedman, President of The After School Corporation (TASC) which estimates that 15,000 New York State children could lose after school programs as a result of the Governor's budget cuts. "The scale of these and other anticipated cuts will threaten the viability of many free and low cost programs. Parents will have to scramble to find alternative programs to keep their kids safe after 3, if they can find any at all."

Advocates continued to criticize the Governor's refusal to offset service cuts with a proposal to increase taxes for higher income New Yorkers. "We are disappointed that the Governor decided to allow working class New Yorkers to shoulder the burden of this budget deficit," said Ron Deutsch, Executive Director of New Yorkers for Fiscal Fairness. "While the Governor calls for "shared sacrifice," his budget seems to allow for mostly "spared sacrifice." Increasing fees and enormous cuts in state spending on education, healthcare, and state services could be mitigated if the Governor had simply chosen to listen to the people of New York State who have been calling for an income tax increase on the wealthiest 5% of New Yorkers."