Amends various provisions of chapters of the laws 2009 making appropriations for the support of government

Title of bill

An act to amend chapter 50 of the laws of 2009, enacting the public protection and general government budget; to amend chapter 53 of the laws of 2009, enacting the education, labor and family assistance budget; to amend chapter 54 of the laws of 2009, enacting the health and mental hygiene budget; and to amend chapter 55 of the laws of 2009, enacting the transportation, economic development and environmental conservation budget, in relation to the support of state government

Purpose

This bill would amend the enacted 2009-10 Budget Appropriation bills to affect necessary savings to the 2009-10 Financial Plan. These measures have been proposed by the Governor to address the State's projected budgetary gap for the State fiscal year 2009-10 and to help ensure Financial Plan balance.

This bill would enact a major component of Governor David A. Paterson's Deficit Reduction Plan (DRP). It proposes a number of across-the-board current fiscal year STATE FUNDS reductions to local assistance spending. Additionally, the bill reduces spending in several other key programs. Other bills being proposed in concert with this legislation would make statutory changes needed to implement both these and other gap closing measures needed to balance the Financial Plan.

Summary of provisions

Effective immediately upon enactment, following are the highlights of the savings actions:

* Reduce School Aid spending by $206 million for SFY 2009-10 ($295 million on a school year basis), and appropriate an additional $391 million in Federal ARRA funds, which reduces SFY support by $274 million. Additionally, there is a $69 million increase in the Lottery Fund and an offsetting decrease in the General Fund reflecting the Aqueduct VLT franchise payment.

* Reduce spending by $62.4 million available to Higher Education, including $28.4 million for the Higher Education Services Corporation, $24.1 million for SUNY, and $9.9 million for CUNY.

* Reduce spending by $143.9 million in Medicaid associated with the discontinuation of the mandated 2010 inflationary increase for hospitals, nursing homes and home care providers, reducing nursing home rebasing payments, extending the period from 8 to 15 days for which registered nurses can write prescription refills, and reducing payments to pharmacies to account for the settlement in First Data Bank litigation. The hospital appropriation is also reduced to reflect an offset associated with the increase in hospital inpatient assessment from 0.35 percent to 0.75 percent, the increment of which would be Medicaid reimbursable.

* Other adjustments in Health spending, including $10 million reduction in Tobacco Control Program.

* Authorizes a reduction in the Timothy's Law General Fund payments, providing a savings of $19.7 million to the General Fund in 2009-10, and recurring savings thereafter. The appropriation would be reduced by $29.2 million.

* Reduce $222 million EPF appropriation by $10 million to $212 million. This allows for a transfer of $10 million in EPF revenues to the General Fund; and

* Reduce transit aid appropriations by $125 million.

Statement in support

Enactment of these provisions is necessary to produce savings to ensure the current year budget balance, guard against further revenue reductions and address the projected Budget gap.

Budgetary implications

In combination with other legislation that proposes statutory changes, this bill would produce over $1.2 billion in savings. These savings would substantially reduce the projected gap for this fiscal year and beyond.

Effective date

This bill takes effect immediately.