Our Analysis of Governor Cuomo’s 2012-2013 BudgetJanuary 17, 2012
Governor Andrew Cuomo released his $132.5 billion plan for the 2012-2013 budget today, closing an estimated $3.5 billion budget gap with $2 billion in savings and $1.5 billion derived from a reworked tax code that boosted levies on top earners. There are no new taxes or new fees under the plan, and, as agreed last year, the state would spend an additional 4 percent on education and Medicaid. The budget also proposes mandate relief, changes to pensions, and significant reform to the education system.
At this stage of our analysis, we do not see significant reductions or cuts in criminal justice or addiction or HIV services. The Governor’s actions in our areas include:
- Seeking Federal approval of a new Medicaid 1115 Waiver that will allow the State to reinvest in its health care infrastructure, and give the State the freedom to innovate. The new waiver will allow the State to prepare for implementation of national health care reform and continue reform of the State’s overall health care system;
- A proposal for the State to take over 100 percent of the costs of Medicaid growth that will be phased in over three years, saving local governments $1.2 billion over the next five years;
- Saving money by improving monitoring and spending controls of nonprofit providers, including a proposal to limit state reimbursement for salaries at state-subsidized nonprofits to $199,000;
- A proposal to close juvenile justice facilities as part of an effort to move New York City youths convicted of nonviolent crimes from state facilities upstate to more cost-efficient city-run facilities in the city
- Incorporating recommendations from last year’s Medicaid Redesign Team process that aim to make the State's health system perform better and cost less;
- Advocating enactment of the Health Exchange so that 1 million uninsured New Yorkers will gain coverage. This action will reduce costs to individuals who purchase coverage directly by 66% and small businesses by 22%, all financed by the federal government at no cost to New York;
- A proposal to expand the state DNA database to include all crimes;
- Providing $25 million for the Civil Legal Services Program through the Judiciary budget to address a central deficit that goes to the heart of the courts’ mission – providing equal justice to the millions of litigants who appear each year without counsel in eviction, foreclosure, domestic violence, consumer debt, and other cases involving the essentials of life;
- Eliminating automatic cost-of-living increases to human services providers.
Read our full preliminary analysis for more details on the key changes in our areas. The Legal Action Center will continue to gather details on the budget from our meetings and conversations with state policymakers and legislative staff.