Assemblyman Angelo Santabarbara (D-Rotterdam) announced the Assembly passed a 2013-14 state budget proposal that would provide mandate relief for local governments, promote growth for local businesses and protect vital funding for agricultural programs (E.182).

“The Assembly budget proposal includes critical funding that would work to cut local costs and help promote a more business-friendly environment to help our region thrive,” Assemblyman Santabarbara said. “While this proposal is a step in the right direction, I will continue fighting to make sure funding goes toward programs that will spur job creation and continued growth in our community.”

Providing mandate relief to Montgomery County

The Assembly budget proposal includes an 11.2 percent increase in municipal assistance for cities, towns and villages – the first increase in five years. The Assembly proposal maintains this new funding level for a total impact of $660 million to help struggling local governments provide the essential services residents depend on.

“Helping relieve some of the financial burden on our local governments would allow them to better manage local costs and ultimately relieve some of the burden placed on taxpayers,” Assemblyman Santabarbara said. “There’s much more work to do on this issue, but it will continue to be one of my top priorities moving forward.”

In addition, the Assembly provides $120 million over two years to accelerate the state takeover of local Medicaid growth. Under the Assembly proposal, 2013-14 growth in the local share of Medicaid would decrease to 1 percent, instead of the 2 percent increase under current law. In 2014-15, growth in the local share of Medicaid would be eliminated.

“I’m glad to see the Assembly’s budget proposal include critical funding that would help relieve some of the crushing financial burden unfunded mandates have placed on our local governments,” Mayor of the City of Amsterdam Anne Thane said. “Right now, our area could use all the help it can get and I am thankful for Assemblyman Santabarbara’s hard work on this vitally important issue.”

Helping businesses reduce costs, protecting workers

The Assembly budget proposal includes Unemployment Insurance (UI) reform to make the UI fund solvent. Once fully implemented, employers will save $360.1 million annually. There will be three additional benefits to businesses as well:

• UI Interest Assessment: businesses will no longer pay interest on the federal UI loan once the fund is solvent;
• Contribution Schedule: businesses will pay contribution rates that are up to 25 percent lower than they pay now; and
• Federal Unemployment Tax Act (FUTA) Reduction: businesses will see the federal unemployment tax rate cut in half.

In August, Assemblyman Santabarbara wrote a letter to Governor Cuomo requesting that the state pick up the cost of the interest payment due to the Federal Unemployment Insurance Trust Fund instead of forcing small businesses to pay for it.

Funding for agricultural programs

“The agricultural industry in Montgomery County plays a crucial role in our economy,” Assemblyman Santabarbara said. “As a member of the Assembly’s Agriculture Committee, I fought to ensure the Assembly proposal restores vital funding to agriculture programs our local farmers depend on.”

Specifically, the Assembly budget proposal restores funding to the following programs:

• Farm Viability Institute: $821,000 (for a total of $1.22 million);
• Farm Net: $100,000 (for a total of $484,000); and
• Maple Producers Association: $100,000.