Advocacy Update: 2021-2022 Executive Budget Proposal
January 19, 2021
Governor Cuomo offered his annual state budget address today, painting two different pictures for a potential 2021-22 state budget. The first, a more pessimistic approach, assumes $6 billion in forthcoming funding for the state in a new federal stimulus package. The second, more optimistic, assumes upwards of $15 billion worth of federal funding for the state in a new stimulus package.
The Governor said the executive budget proposal that he will be submitting to the legislature assumes the $6 billion funding package, but he spent much of his address detailing what a state budget could like look under the $15 billion scenario.
Beyond some high level comments about school funding, the Governor's address touched little upon education issues. Actual budget bills have yet to be released and school aid runs have yet to be published, so it is unclear exactly how CRRSA Act stimulus funding, approved in December, will be used and what school aid might look like for districts. Details on the Governor's proposal will be dependent on the language in those bills, but briefing materials give hints towards what we are likely to see, including:
- A renewed proposal to eliminate and consolidate expense-based aids into a new "Services Aid" category
- A new "Local District Funding Adjustment" reduction of $1.35 billion, which would be fully offset by federal funding from the CRRSA Act stimulus package
- The elimination of the Prior Year Aid claims list, resulting in the canceling out of approximately $300 million in state aid owed to school districts
- The approval of reimbursement for transportation expenses associated with the delivery of student meals and instructional materials in Spring 2020
The Governor reiterated the importance that the federal government provide a new round of stimulus with significant funding for state and local governments. NYSSBA agrees that such funding is necessary to allow the state to make whole on its commitments to school districts - both in the current year and in 2021-22. The Governor also continued his push for the federal government to restore full deductibility of SALT (state and local taxes). NYSSBA joins the Governor in that call.
NYSSBA Governmental Relations will continue to review the executive budget and will provide additional information and analysis in the days to come. This year, our executive budget webinar will be taking place on Wednesday, February 3rd during our Capital Conference event sponsored by Forecast5 Analytics. Members can join our Capital Conference Event virtually by registering below. The executive budget part of the program will begin at 9:35am.
NYSSBA's Governmental Relations team will continue to report on these and other issues. For more information, visit our Key Issues Page.
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