FY 2021-22 Executive Budget Presentation Overview
Governor Cuomo and Division of Budget Director Robert Mujica provided two separate presentations today outlining the Governor’s $193B 2021-22 Executive Budget proposal. The Governor’s Executive Budget proposal is based on two distinct scenarios. In the first scenario, dubbed the “Worst Case” scenario by the Governor, New York would receive only $6B from the proposed $350B designated for “state and local government financing” in President Elect Biden’s $1.9T “American Rescue Plan” proposal. The second scenario, dubbed the “Fair Funding” scenario by the Governor, would result in New York receiving $15B in funding from the $1.9T “American Rescue Plan” proposal. The “Worst Case” scenario $6B figure is based on “conversations” the State has had with federal leaders noting that $6B would likely be the minimum that New York could receive. This figure would equate to 1.7% of the $350B. If New York only receives $6B in Federal aid, the Governor and Mujica both threatened, among other things, that the State would implement an income tax increase for the wealthy that would result in the State having the highest rate in the Nation with a 14.7% NYS/NYC combined rate; across the board cuts; cuts to social services and local governments, including a $600M cut in Medicaid; a $2B reduction in school funding; the continuation of the 5% across the board reductions; and significant state borrowing. Additionally, if the State only receives $6B, both the Governor and Mujica stated that New York will initiate litigation against the Federal government. The $15B “Fair Funding” scenario would result in New York receiving 4.3% of the $350B. Under the Governor’s “Fair Funding” scenario, the State would not have to implement spending cuts and tax increases and would be able to, among other things, restore the 5% across the board reductions; fund labor agreements; implement the scheduled middle-class tax cut; fund education; and provide the necessary funding to support the 1.6 million individuals added to Medicaid since 2012. Noting that over 6 million New Yorkers receive Medicaid-eligible services, including an additional half million new enrollees during the COVID-19 pandemic, the Governor’s FY 2021-22 Executive Budget anticipates receiving $48.1B in Federal Medicaid funding, with total Federal, State and local Medicaid spending expected to be $82.9B. The FY 2021-22 Executive Budget also includes the following:- Approximately $2B to fully support the direct cost of upcoming minimum wage increases for health care workers;
- The assumption of approximately $4.8B in local Medicaid costs;
- Continues $3.8B in capital investments for health care providers to transition into fiscally sustainable systems and to support capital projects, debt retirement and working capital.
- An allocation of $9.7M for individuals living in transitional adult homes in New York City who wish to transition into the community; and
- The DOH is preparing to file a three-year extension with CMS of the existing MRT 1115 Waiver by March 2021.
- “The DOH will increase the existing Nursing Home Quality Pool with an emphasis on rewarding quality based on staffing practices.”
- “The DOH will promulgate regulations governing the review and approval of any contracted staffing arrangements between nursing homes and staffing agencies that provide or arrange for direct care staff.”
- “Medicaid reimbursement rates will include only staffing costs related to staffing contract arrangements that comply with regulatory requirements and only to the extent that such costs are determined by the DOH to be consistent with fair market value and commercial reasonableness.”
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