ALBANY – Gov. Cuomo is set to propose a $132 billion state budget today that would cut overall spending by $225 million, create a less generous pension tier for new city and state employees and gradually eliminate increases in the city’s and counties’ costly Medicaid bills.
The spending plan Cuomo will present to state lawmakers would also tie a 4 percent, $805 million statewide increase in school aid to the approval of teacher evaluation plans within a year, as first reported by The Post.
The state would take over any increases in local Medicaid costs – now capped at 3 percent annually – by 2015 and would gradually assume local governments’ costs for administering the government health care program for the poor and disabled.
As he investigates non-profit groups’ salary levels, Cuomo called for a $199,000 cap on state reimbursement for the compensation of non-profit service providers’ executives.
The 0.6 percent overall spending cut reflects a 4.5 percent reduction in federal operating aid. State-funded spending would increase by 2 percent to $88.7 billion.
In his proposal for the fiscal year that begins April 1, Cuomo also called for:
– Merging the gaming-regulating Lottery Division and Racing and Wagering Board, consolidating the Department of Civil Service with the Governor’s Office of Employee Relations, streamlining other agencies and eliminating “inactive” boards and commissions.
– Delaying a scheduled 10 percent increase in the basic welfare grant in July by deferring 5 percent to July 2013, with the typical family grant growing to only $770 this year from $753.
– $15 billion in infrastructure projects through a mix of $723 million in new and $600 million in existing state funds, $9 billion in public authority money – including $5 billion for a new Tappan Zee Bridge – and $12.8 billion in federal aid to leverage $3 billion in private sector investment.
– Reforming teacher discipline by giving more power to the State Education Department to limit expenses and making both districts and unions, or employees, share in the cost of the process.
– Creating a federally-funded New York Health Benefit Exchange to buy and sell health insurance he says would insure a million more people and cut small business’s premiums by 22 percent.
– Eliminating cost of living increases for health and human service providers this year and tying any future increases to performance.
– Replacing the current 75 percent wholesale price tax on loose tobacco with a $4.53 per ounce tax, the same as cigarettes, to drive an extra $18 million into state coffers while replacing the 75 percent wholesale tax on cigars with a 20 cents per piece wholesale tax and a 50 percent retail tax – not affecting the retail price.
– Closing more juvenile justice facilities upstate and moving youths to New York City-based facilities.
– Suspending $15 million for a new New York City eviction and homelessness prevention program until it is reviewed.
– $200 million for a new round of regional economic development grants.
– Phasing out remaining Medicaid fee for service in favor of managed care and creating “Health Homes” to provide integrated care and management for the sickest Medicaid patients. And a “pilot program” in Brooklyn “and elsewhere” to improve the health care delivery system.
– Saving $30 billion for New York City over 30 years – and $45 million statewide in the coming year – through a new pension Tier VI, which progressively increases employee contributions from the current 3 percent to 4, 5 or 6 percent based on salary, raises the retirement age to 65 from 62 and prohibits early retirements, excludes overtime and other payments from pension calculations and offers 401-k-style defined contribution plans with employers contributing at least 4 percent and up to 7 percent if the employee kicks in 3 percent.
– Require commercial health insurers to cover Early Intervention services.
– Cut tobacco control funding by $5 million.
– Replacing lost federal funds with state money to keep 19,0000 child-care slots for working families.