Establishes a fiscal cliff task force to conduct a study on fiscal cliffs in the state's public assistance programs and to make recommendations related thereto.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8431
SPONSOR: Davila TITLE OF BILL:
An act establishing a fiscal cliff task force to conduct a study on
fiscal cliffs in the state's public assistance programs and to make
recommendations related thereto; and providing for the repeal of such
provision upon expiration thereof
PURPOSE:
This bill would establish a fiscal cliff taskforce to conduct a study on
fiscal cliffs in the state's public assistance programs and to make
recommendations related thereto; and providing for the repeal of such
provision upon expiration thereof.
SUMMARY OF PROVISIONS:
This act establishes a fiscal cliff task force consisting of twenty
members including two members appointed by the temporary president of
the senate, one member appointed by the minority leader of the senate,
two members appointed by the speaker of the assembly, one member
appointed by the minority leader of the assembly, five members appointed
by the governor, three local social services district commissioners
appointed by the governor, the commissioner of the office of temporary
and disability assistance or his or her designee, the commissioner of
health or his or her designee, the commissioner of the department of
labor or his or her designee, and the commissioner of the office of
children and family services and his or her designee.
The taskforce shall meet at least quarterly at the call of the chair.
The taskforce shall conduct a study on the fiscal cliffs in the state
including, but not limited to, various public assistance programs, tax
credits and other programs or services provided by the state which are
tied to income.
The taskforce shall also recommend ways to reduce and or eliminate such
fiscal cliffs.
The taskforce shall make a preliminary report to the governor and the
legislature of its findings, conclusions, recommendations, and activ-
ities already undertaken by the taskforce by January 1,, 2025, and a
final report by September 1, 2025. The taskforce shall subsequently
report legislative proposals as it deems necessary to implement such
recommendations.
JUSTIFICATION:
Many public assistance programs based on income eligibility inadvertent-
ly create a fiscal cliff, where a small increase in their earned income
results in a disproportionate decrease in the recipient's benefits. When
a person's income level reaches those thresholds, they cannot afford to
earn more, whether through additional benefits or salary, because the
loss in benefits exceeds their incremental increase in their income. As
a result of these fiscal cliffs, New York State spends billions of
dollars for public assistance programs that inadvertently trap millions
of people in poverty.
These fiscal cliffs affect multiple programs. For example, a three-per-
son family loses their eligibility for Medicaid when they earn $30,630,
loses their eligibility for SNAP benefits when their earned income
exceeds $34, 548, loses eligibility for Home Energy Assistance Program
(HEAP) benefits once they earn $55,296, and loses eligibility for child-
care when they earn $64,090.
The taskforce created by this legislation would address these issues and
make recommendation on strategies and legislation needed to
reduce/eliminate these fiscal cliffs.
LEGISLATIVE HISTORY:
A. 7424-A - Vetoed by Governor-November 2023
FISCAL IMPACT ON THE STATE:
No fiscal implications for state or local government.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8431
2023-2024 Regular Sessions
IN ASSEMBLY
December 29, 2023
___________
Introduced by M. of A. DAVILA, MAHER, TAYLOR, SIMPSON, LUPARDO,
PEOPLES-STOKES, GOODELL -- read once and referred to the Committee on
Social Services
AN ACT establishing a fiscal cliff task force to conduct a study on
fiscal cliffs in the state's public assistance programs and to make
recommendations related thereto; and providing for the repeal of such
provision upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. (a) There is hereby established a fiscal cliff task force
2 to study fiscal cliffs in the state's public assistance programs and
3 make recommendations on how to reduce and eliminate such fiscal cliffs.
4 For the purposes of this section, the term "fiscal cliff" shall mean a
5 sudden decrease in public benefits that can occur with a small increase
6 in earnings.
7 (b) (i) The task force shall consist of nineteen members, each to
8 serve for a term ending December 31, 2025. Such members shall be
9 appointed as follows: two members shall be appointed by the temporary
10 president of the senate; one member shall be appointed by the minority
11 leader of the senate; two members shall be appointed by the speaker of
12 the assembly; one member shall be appointed by the minority leader of
13 the assembly; five members shall be appointed by the governor; three
14 local social services district commissioners or their designees having
15 relevant experience in administering public benefits shall be appointed
16 by the governor, of which one district shall have five million or more
17 inhabitants; the commissioner of the office of temporary and disability
18 assistance or his or her designee; the commissioner of health or his or
19 her designee; the commissioner of taxation and finance or his or her
20 designee; the commissioner of the department of labor or his or her
21 designee; the commissioner of the office of children and family services
22 or his or her designee. Appointments shall be made within sixty days of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10565-06-3
A. 8431 2
1 the effective date of this section. Vacancies in the task force shall be
2 filled in the manner provided for original appointments.
3 (ii) All appointments shall be coordinated to ensure geographic repre-
4 sentation from the entire state.
5 (iii) The task force shall elect a chair, vice-chair, and other neces-
6 sary officers from among all appointed members.
7 (iv) A majority of the members of the task force then in office shall
8 constitute a quorum for the transaction of business or the exercise of
9 any power or function of the task force. An act, determination or deci-
10 sion of the majority of the members present during the presence of a
11 quorum shall be held to be the act, determination, or decision of the
12 task force.
13 (v) The task force shall meet at least quarterly at the call of the
14 chair. Meetings may be held via teleconference. Special meetings may be
15 called by the chair at the request of a majority of the members of the
16 task force.
17 (vi) Members of the task force shall receive no compensation for their
18 services but shall be reimbursed for their actual expenses incurred in
19 the performance of their duties in the work of the task force.
20 (c) The task force shall:
21 (i) conduct a study on the fiscal cliffs in the state. Such study
22 shall include, but not be limited to: public assistance programs; the
23 supplemental nutrition assistance program (SNAP); the home energy
24 assistance program (HEAP); housing assistance; the child care tax credit
25 and other tax credits; the school tax relief program (STAR) and other
26 real property tax credits and reductions; Medicaid; NY state of health,
27 the official health plan marketplace; child care subsidies tied to
28 income; cash benefits; effective tax rates; and any other program or
29 service provided by the state or any political subdivision thereof which
30 is tied to income;
31 (ii) study the causes and reasons why fiscal cliffs occur to individ-
32 uals on public benefits, including but not limited to, the impact of
33 current public assistance programs monetary allotments, asset tests,
34 asset limits, and income disregards, as well as how minimum wage and
35 other earnings may impact those receiving public benefits; and
36 (iii) recommend ways to reduce and/or eliminate fiscal cliffs includ-
37 ing, but not limited to, recommending program and policy modifications,
38 amendments to the law, including but not limited to possible changes in
39 calculating and paying the earned income tax credit or other tax cred-
40 its, changes to the New York codes, rules and regulations, and any other
41 recommendation the task force deems appropriate.
42 (d) The task force may, as it deems appropriate, request that studies,
43 surveys, or analyses relating to the task force's powers and duties be
44 performed by any state department, commission, agency or public authori-
45 ty. All state departments, commissions, agencies or public authorities
46 shall provide information and advice in a timely manner and otherwise
47 assist the task force with its work.
48 (e) The office of temporary and disability assistance shall provide
49 staff services to the task force and such other administrative assist-
50 ance as may be necessary for the task force to carry out its duties,
51 functions and powers.
52 (f) The task force shall make a preliminary report to the governor and
53 the legislature of its findings, conclusions, recommendations and activ-
54 ities already undertaken by the task force, not later than January 1,
55 2025, and a final report of its findings, conclusions, recommendations
56 and activities already undertaken by the task force, not later than
A. 8431 3
1 September 1, 2025 and shall submit with its reports legislative
2 proposals as it deems necessary to implement its recommendations.
3 § 2. This act shall take effect immediately and shall expire three
4 years after it shall have become a law when upon such date the
5 provisions of this act shall be deemed repealed.
