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Source of Education Stabilization Amount and Other Services: Preliminary Conference Agreement Stimulus Allocations (2/20/09)
Source of FMAP: Division of the Budget Estimates
AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 The Federal Stimulus Impact on New York State http://senate.state.ny.us http://senate.state.ny.us AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 The Federal Stimulus Impact on New York State TARGETED FISCAL RELIEF http://senate.state.ny.us 3
Large-scale federal funding increases in two areas:
State Fiscal Stabilization Fund
Supplemental appropriations for currently-existing federal education funding streams: All major federal education programs will receive increased funding
STATE FISCAL STABILIZATION FUND: EDUCATION FUNDING STATE FISCAL STABILIZATION FUND: EDUCATION FUNDING
Two Block Grants:
$39.5 billion earmarked for education and distributed through existing state formulas to restore K-12 and postsecondary education budgets.
$8.8 billion grant to help fund other key services (Flex Fund) - which can be used for education and education modernization.
STATE FISCAL STABILIZATION FUND: EDUCATION FUNDING REGULATIONS
Federal legislation priorities: (1) funding stability and (2) adherence to scheduled formula increases, including those required by court orders.
State required to maintain school aid support at least at the level of 2006.
Funding received must restore aid to higher of FY 08 or 09 levels.
Funds allow phase-in of funding increases (Foundation Aid formula).
Funding aims to address serious issues associated with the “No Child Left Behind” program.
State must provide assurances that they will address four key areas:
(1) teacher equity distribution; (2) data systems; (3) enhancing assessment quality for English Language Learners, student with disabilities and improving State academic standards; and, (4) ensuring compliance with corrective actions for low-performing schools.
STATE FISCAL STABILIZATION FUND: FUNDING REGULATIONS 7
INCREASED FUNDING FOR EXISTING FEDERAL EDUCATION PROGRAMS INCREASED FUNDING FOR EXISTING FEDERAL EDUCATION PROGRAMS
Title 1: largest federal program supporting elementary and secondary education; annual expenditures of about $8 billion; accounts for about 3% of total U.S. education expenditures. While state and local funds account for over 90 percent of national education expenditures, Title I is an important source of funding for many high-poverty districts and schools.
New York State will receive a $1.16 billion increase over two years.
The Individuals with Disabilities Education Act ( IDEA ) ensures services to children with disabilities. IDEA governs early intervention, special education and related services to more than 6.5 million eligible infants, toddlers, children and youth with disabilities.
New York State will receive a $759.1 million increase over two years
Impact aid : $100 million to schools and local education agencies in close proximity to federal facilities and military bases
Pell Grants - $15.64 billion nationally. Increases maximum Pell levels to $5350 for 2009-2010 and $5550 in 2010-2011
Higher Education Teacher Quality Enhancement - $100 million nationally. Funds are focused on teacher residency programs.
In New York State, Higher Education will receive $83 million over two years from the State Fiscal Stabilization Funds.
New York will receive $550 Million from State Fiscal Stabilization Fund - Flex Fund fund to be allocated at the discretion of the Governor for other key services state wide, including higher education.
[ Health and Human Services Intro. ] http://senate.state.ny.us
SFY 08-09: Division of the Budget (DOB) estimates a total of $1.87 Billion in increased federal Medicaid payments for the last two quarters. With local share at 30% ($560 Million), State share is approximately $1.3 Billion.
SFY 09-10: DOB estimates the FMAP increase will be $4.96 billion, of which approximately $1.48 billion (30%) will go to localities and the remaining $3.47 billion will go to the State.
SFY 10-11: DOB estimates increased FMAP payments for three quarters of $4.15 billion of which approximately $1.25 billion will go to localities and the remaining $2.9 billion will go to the State.
All States get a minimum increase of 6.2% for the nine quarters covered under ARRA
FMAP increase adjusted upward each quarter by % increase in unemployment in three stages.
Based on estimates by DOB the increase is:
8.7795% for SFY 2008-09
10.1865% for April to June 30, 2009
11.5935% through the end of the program
CHILDREN AND FAMILIES AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 The Federal Stimulus Impact on New York State http://senate.state.ny.us AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 The Federal Stimulus Impact on New York State http://senate.state.ny.us 14
Workforce Investment Act (WIA): $174 million will be allocated for training grants:
$73.2 million for youth (up to age 24)
$30.8 million for adults
$70.2 million for dislocated workers
Employment Services: NYS will receive $23 million to provide integrated employment services for training and technical assistance in finding jobs.
UI Benefit Extension & Modernization: NYS will receive $442 million; can be used to provide Federal-participation benefits to part-time workers, victims of domestic violence and employment services to displaced workers or to pay back trust fund loans.
NYS owes $350 million
$30.8 million for adults
$70.2 million for dislocated workers
Trade Act Adjustment Assistance: option for additional assistance when factories close due to foreign competitors.
Unemployment Benefits : First $2,400 in unemployment benefits exempt from federal income taxes in 2009. The bill extends benefits by at least 20 weeks and temporarily increases weekly benefits by $25 ($100 a month).
Unemployment Claims in New York have doubled to a weekly average of about 25,000 from 12,000 to 13,000 a year ago. There are now more than 420,000 New Yorkers receiving benefits, up 175,000 from last year's average. (*)
New York State’s maximum weekly benefit is $405, while the current average weekly benefit is $309.
Almost 1.1 million New Yorkers lost their jobs during the recession.
TBD: No allocation established by the Federal Government due to the competitive nature of these grants
Federal statute requires State highway stimulus money to be distributed through the
Metropolitan Planning Organization (MPO) process. An MPO is a federally-required
transportation planning body responsible for the Regional Transportation Plan (RTP) and
a short-range Transportation Improvement Program (TIP) for its planning area. The
adoption of these plans is a prerequisite for the receipt of federal transit and highway
20 Category National NY % of Total Mass Transit $8.4 B $1.4 B 17% Highways & Bridges $27.5 B $1.1 B 4% Rail $9.3 B TBD Competitive Air $1.3 B TBD Competitive Discretionary: Surface Transportation $1.5 B TBD Competitive
The total (National) amount for Mass Transit is $8.2 billion, of which New York is allocated $1.445 billion , as follows: $1 billion urbanized area formula program; $213 million from Rail Modernization (primarily to MTA); and $23 million under non-urbanized formula. In addition, MTA could compete for approximately $200 million of the $743 million in New Start funding for major projects underway (East Side Access, and 2 nd Ave Subway)
Rail, Aviation and Other Discretionary/New York Share To-Be-Determined): Rail ($9.30 billion Nationwide)
$8 billion for high speed rail and intercity passenger service and $1.3 billion for Amtrak capital projects – New York will compete for discretionary funding.
Aviation ($1.30 billion): National amounts include $1.1 billion for the Airport Improvement Program and $200 million for an aviation facilities and equipment program: FAA to distribute directly to airport authorities.
SNAPSHOT OF NEW YORK METRO SHARE OF TRANSPORTATION STIMULUS FUNDS AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 The Federal Stimulus Impact on New York State SNAPSHOT OF NEW YORK METRO SHARE OF TRANSPORTATION STIMULUS FUNDS http://senate.state.ny.us 23
UPSTATE AUTHORITIES AND GOVERNOR’S APPORTIONMENT AREAS 24
HOUSING AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 The Federal Stimulus Impact on New York State http://senate.state.ny.us AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 The Federal Stimulus Impact on New York State http://senate.state.ny.us 27
New initiative provided pursuant to LIHEAP standards through community action programs and local providers. Fast action needed to move funds quickly to contractors; DHCR to ramp up training and certification.
Home (LIHTC): $245 million for New York State
To fill the gap in existing tax-credit deals for affordable housing development and construction.
Public Housing Repairs & Section 8 Project-Based: $504.8 million for New York State
NYCHA currently has an allocation of over $37 million for capital repairs which have been deposited in “project piggy banks” that could allow fast utilization.
TAX CUTS FOR NEW YORKERS _____________________________________________________________________________________________ Source: Division of the Budget and New York State Division of Taxation and Finance 31
A new refundable tax credit for 2009 and 2010 of $400 for individuals, and $800 for families. The credit is calculated at a rate of 6.2% of earned income, and phases out at $75,000 or $150,000 for married couples filing jointly.
Taxpayers can get this benefit through a reduced withholding (approximately $15 per period) or through claiming the credit on tax returns.
New York State Impact:
This credit will benefit over 7 million New York workers and their families. The amendment will not affect the State Financial Plan in SFY 09-10 or 10-11.
A temporary increase in the earned income tax credit for working families with three or more children.
EITC increased from 40 percent to 45 percent of a family's first $12,570 of earned income for families with three or more children; start of phase-out range for married couples filing a joint return increased by $1,880.
New York State Impact:
New York’s earned income tax credit is calculated as a percentage of the Federal credit – State credit goes up as Federal credit goes up.
No effect on the State Financial Plan for SFY 2009-10, but reduced revenues of $50 million in SFY 2010-11.
Eligibility requirements amended: currently, if the credit ($1,000) exceeds the taxpayer’s federal income tax liability, the taxpayer is eligible for a refundable credit equal to 15% of earned income above $8,500. ARRA changed this threshold to $3,000.
For example, a parent with earnings of $4,000 would receive no credit under the previous law, but will receive a credit equal to $150 under the new law.
New York State Impact:
New York’s Empire State Child Credit is calculated as a percentage of the Federal credit. As more families become eligible for the Federal credit, more will qualify for the Empire State Child Credit.
No effect on the State Financial Plan for SFY 2009-10, but reduced revenues of $120 million in SFY 2010-11.
New deduction for all taxpayers (both itemizers and non-itemizers) for State and local sales and excise taxes paid on the purchase of new cars, light truck, recreational vehicles, and motorcycles through 2009
ARRA prohibits duplicative use of both the current sales tax deduction and the new motor vehicle sales tax deduction.
New York State Impact:
As a result of the conformity with Federal law, New York taxpayers would be allowed to take the sales tax deduction on their NYS personal income tax return as well.
No effect on the State Financial Plan for SFY 2009-10, but reduced revenues of $8 million in SFY 2010-11.
Increases the maximum value of tax credit for first-time home buyers to $8,000, extends availability until December 1, 2009, and eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009.
The provision would retain the credit recapture if the house is sold within three years of purchase, and phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return).
New York State Impact:
All of these tax credits are awarded on the Federal level with no analogous NYS credit. The amendment will not affect the State Financial Plan in SFY 09-10 or 10-11.
Economic Recovery Payments for Seniors and People with Disabilities
The bill would provide a one-time payment of $250 to retirees, disabled individuals and SSI recipients receiving benefits from the Social Security Administration, Railroad Retirement beneficiaries, and disabled veterans receiving benefits from the U.S. Department of Veterans Affairs. The one-time payment is a reduction to any allowable Making Work Pay credit.
New York State Impact:
All of these tax credits are awarded on the Federal level with no impact on NYS. The amendment will not affect the State Financial Plan in SFY 2009-10, nor SFY 2010-11.
Small businesses allowed to write off the cost of certain capital expenses in the year of acquisition in lieu of recovering these costs over time through depreciation.
Until the end of 2010, small business taxpayers are allowed to write-off up to $125,000 of capital expenditures subject to a phase-out once capital expenditures exceed $500,000. Last year, Congress temporarily increased the amount that small businesses could write-off for capital expenditures incurred in 2008 to $250,000 and increased the phase-out threshold for 2008 to $800,000. The bill would extend these temporary increases for capital expenditures incurred in 2009.
New York State Impact:
As a result of the conformity with Federal law, New York’s taxpayers would be allowed to write off these capital expenses on their NYS tax return as well.
The amendment has no effect on the State Financial Plan for SFY 2009-10, but results in reduced revenues of $20 million in SFY 2010-11.
$4 billion nationally for clean water infrastructure projects, including construction, expansion or renovation of wastewater treatment plans, sewers and industrial treatment
New York State would receive 1.1632% or $431.6 million pursuant to Federal statute; expenditures on current top-priority local projects administered through Environmental Facilities Corporation.
Drinking Water State Revolving Loan Fund
$2 billion nationally for capital grants for the Safe Drinking Water Act. No matching or cost share requirements. EPA will reallocate such funds where projects are not under contract or construction within 12 months.
New York State would receive approximately $85 million, funding current top-priority items.
Federal Appropriation: $300 million in competitive grants. 30% of funding is given directly to states, 70% is for an EPA competitive grant program. Grant funds cannot be used for state's compliance with our own Diesel Emissions Reduction Act (DERA).
New York State is expected to receive $1.7 million through the 30% States portion. States and municipalities can apply for grants from EPA to do diesel retrofits on municipal bus fleets, school buses, and municipally owned construction/work vehicles.
ENVIRONMENT ENVIRONMENT AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 The Federal Stimulus Impact on New York State http://senate.state.ny.us AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 The Federal Stimulus Impact on New York State http://senate.state.ny.us 44
State Energy Program (SEP): $3.1 billion nationally, $126 million for New York
Boost for energy efficiency and renewable energy programs, including efficiency-focused regulatory policies and building code improvements.
Energy Efficiency and Conservation Block Grants: $3.2 billion nationally, $31 million for New York
New funding for state and local government investments to increase energy efficiency and reduce greenhouse gas emissions, including energy audits, retrofits and financial incentives.
Weatherization Assistance Program: $5 billion nationally, $404 million for New York
New funding for large-scale investments in home weatherization and green jobs. Income eligibility increased to 200% of the federal poverty level ($43,820 for a family of four) and assistance per unit increased to $6500.
Jump-start for smart grid demonstration projects in geographically diverse urban, suburban, tribal and rural areas. Federal matching grants for smart grid technology will increase from 20% to 50% to modernize the nation’s electrical grid by deploying new smart grid, demand response and energy storage technologies.
Innovative Technology Loan Guarantee Program: $6 billion at the Federal level
New temporary program to provide loan guarantees for renewable energy systems and electric power transmission systems that begin construction by Sept. 30, 2011, including leading-edge biofuel technology.
Additional national programs include $2B for Advanced Batteries and Components Manufacturing, $300M for Alternative Fueled Vehicles Pilot Grants, $500M for Green Job Training and more.
Public Health Programs: $1 billion nationally, $60 million for New York
New funding for immunizations, evidence-based prevention and wellness programs, and infection reduction. HHS operating plan expected within 90 days.
Health Information Technology: $19 billion nationally, New York TBD
$17 billion in incentives and rate add-ons for Medicaid and Medicare hospitals and doctors to support implementation of electronic health records; $2 billion in loans and grants to jump-start implementation.
Edward Byrne Memorial Justice Assistance Grants: $2 billion nationally, $107 million for New York
New grants to states and local law enforcement agencies for projects that prevent, fight and prosecute crime. Funds available through September 30, 2010. No administrative overhead.
Community-Oriented Policing Services: $1 billion nationally, New York TBD
Grants to State, local and tribal government for the hiring of additional law enforcement officers; per-officer caps and local-match requirements are waived.
MINORITY PARTICIPATION PROVISIONS IN THE STIMULUS PLAN
"Maximum practicable opportunity" for contracting and subcontracting participation on ARRA-funded projects for Small Businesses, Veteran-owned Businesses, Disadvantaged Businesses, Minority and Women Businesses, and HUBZone Small Businesses.
Part of the $20 million for highway surface transportation and technology training must be used for job training focused on minorities, women and the socially and economically disadvantaged.
ARRA includes $20 million for disadvantaged business enterprises bonding assistance, including minority businesses.
Broadband Technology Opportunities Program provides support to organizations that provide access to facilitate greater use of broadband service by low-income, unserved, underserved, unemployed, aged, and otherwise vulnerable populations. In providing grants, the Secretary shall consider whether the applicant is a socially or economically disadvantaged small business.
State Fiscal Stabilization Fund provisions require that funds are used to achieve equity in teacher distribution between high and low-poverty schools and ensure that low-income and minority children are not taught by inexperienced, unqualified, or out-of-field teachers at higher rates than other children.
JOB CREATION IN NEW YORK STATE The American Recovery and Reinvestment Act is a nationwide effort to create jobs, jumpstart growth and transform our economy to compete in the 21st century. The package of $789 billion will create or save 3.5 million jobs over the next two years. Jobs created will be in a range of industries from clean energy to health care, with over 90% in the private sector. Estimates show that New York State will create or save approximately 215,000 to 224,000 jobs over the next two years _____________________________________ Source: White House Press Release: 2/17/2009 54 Congressional District Estimated Jobs Congressional District 1 7,700 Congressional District 2 7,700 Congressional District 3 7,100 Congressional District 7,500 Congressional District 5 7,400 Congressional District 6 7,800 Congressional District 7 7,900 Congressional District 8 8,500 Congressional District 9 7,800 Congressional District 10 7,600 Congressional District 11 7,800 Congressional District 12 8,400 Congressional District 13 8,300 Congressional District 14 7,900 Congressional District 15 8,100 Congressional District 16 7,500 Congressional District 17 7,700 Congressional District 18 7,500 Congressional District 19 8,200 Congressional District 20 8,000 Congressional District 21 7,800 Congressional District 22 7,900 Congressional District 23 7,800 Congressional District 24 7,600 Congressional District 25 7,500 Congressional District 26 7,900 Congressional District 27 7,100 Congressional District 28 7,000 Congressional District 29 7,500 Total 224,500
A BENEFIT TO ALL NEW YORKERS http://senate.state.ny.us
SENATE MAJORITY LEADER MALCOLM A. SMITH District Office Phone: 718-528-4290 Albany Office Phone: 518-455-2701 Email: [email_address] Senator Eric Adams District Phone: 718-284-4700 Albany Phone: 518-455-2431 [email_address] Senator Joe Addabbo Jr. District Phone: 718-738-1111 Albany Phone: 518-455-2322 [email_address] Senator Darrel J. Aubertine District Phone: 315-782-3418 Albany Phone: 518-455-2761 [email_address] Senator Neil Breslin District Phone: 518-455-2225 Albany Phone: 518-455-2225 [email_address] Senator Ruben Diaz District Phone: 718-991-3161 Albany Phone: 518-455-2511 [email_address] Senator Martin Malave Dilan District Phone: 718-573-1726 Albany Phone: 518-455-2177 [email_address]
Senator Pedro Espada Jr. District Phone: TBA Albany Phone: 518-455-3395 [email_address] Senator Brian X. Foley District Phone: 631-360-3356 Albany Phone: 518-455-2303 foley @ senate.state.ny.us Senator Ruth Hassell-Thompson District Phone: 718-547-8854 Albany Phone: 518-455-2061 [email_address] Senator Craig M. Johnson District Phone: 516-746-5923 Albany Phone: 518-455-2622 [email_address] Senator Jeff Klein District Phone: 718-822-2049 Albany Phone: 518-455-3595 [email_address] Senator Liz Krueger District Phone: 212-490-9535 Albany Phone: 518-455-2297 [email_address] Senator Thomas K. Duane District Phone: 212-633-8052 Albany Phone: 518-455-2451 [email_address] Senator Shirley L. Huntley District Phone: 718-332-2537 Albany Phone: 518-455-3531 [email_address]
Senator Hiram Monserrate District Phone: 718-205-3881 Albany Phone: 518-455-2529 [email_address] Senator Velmanette Montgomery District Phone: 718-643-6140 Albany Phone: 518-455-3451 [email_address] Senator George Onorato District Phone: 718-545-9706 Albany Phone: 518-455-3486 [email_address] Senator Kevin Parker District Phone: 718-629-6401 Albany Phone: 518-455-2580 [email_address] Senator Bill Perkins District Phone: 212-222-7315 Albany Phone: 518-455-2441 [email_address] Senator John Sampson District Phone: 718-649-7653 Albany Phone: 518-455-2788 [email_address] Senator Carl Kruger District Phone: 718-743-8610 Albany Phone: 518-455-2460 [email_address] Senator Suzi Oppenheimer District Phone: 914-934-5250 Albany Phone: 518-455-2031 [email_address]
Senator Eric Schneiderman District Phone: 212-928-5578 Albany Phone: 518-455-2041 [email_address] Senator Jose Serrano District Phone: 212-828-5829 Albany Phone: 518-455-2795 [email_address] Senator Daniel Squadron District Phone: 212-298-5565 Albany Phone: 518-455-2625 [email_address] Senator Toby Ann Stavisky District Phone: 718-455-0004 Albany Phone: 518-455-3461 [email_address] Senator Andrea Stewart-Cousins District Phone: 914-771-419 0 Albany Phone: 518-455-2585 [email_address] Senator Antoine Thompson District Phone: 716-854-8705 Albany Phone: 518-455-3371 [email_address] Senator Diane Savino District Phone: 718-727-9406 Albany Phone: 518-455-2437 [email_address] Senator Bill Stachowski District Phone: 716-826-3344 Albany Phone: 518-455-2426 [email_address] District Phone: 315-478-8745 Albany Phone: 518-455-2838 [email_address] Senator David Valesky