Assemblywoman Anna Kelles announced today that the Assembly State Fiscal Year (SFY) 2022-23 Budget proposal includes critical funding to help New Yorkers recover from the COVID-19 pandemic.

“This is a smart budget for COVID-19 recovery,” said Assemblymember Kelles. “Our one-house budget package prioritizes investments explicitly aimed at helping New Yorkers

recover, while boosting the economy and taking clear strides toward energy independence and sustainability. It is so important that we prioritize spending on longstanding issues that have limited the advancement of low and middle-income New Yorkers.”

“The Assembly Majority’s budget proposal lowers taxes and provides relief to those who need it most. It helps households across the state by accelerating middle-class tax cuts, expanding the child tax credit and Earned Income Tax Credit and providing $2.2 billion in property tax relief checks. We’re also fighting for a $500 million fund to help with utility arrears for those households who experienced unexpected increases on their energy bills this past winter. And we continue our quest to ensure every New Yorker has a roof over their head that is safe and affordable.”

Kelle’s budget bill (A9258A) was fully integrated into the Assembly’s one-house budget. This legislation would establish a New York State matching program for federal SBIR/STTR grants received by eligible NYS small businesses, providing critical early-stage seed funding for STEM startup companies.

Said Assemblymember Kelles: “This is a smart budget that takes a bold step away from the last decade of austerity just in time for our economic recovery after two years of this pandemic.”

Giving New Yorkers the relief they need to overcome rising inflation

• Includes $2.2 billion to create a one-year property tax rebate check for households that are eligible for School Tax Relief (STAR) and Enhanced STAR, and that have incomes at or below $250,000
• Provides $500 million for a utility arrears fund
• Includes $20 million in ratepayer relief, establishes a utility intervenor process to help customers challenge rate increases proposed by utilities and establishes a new Office of Utility Advocate
• Provides $380 million to expand the Earned Income Tax Credit (EITC)
  • Increases the state EITC by 25%, from 30% to 37.5% of the federal EITC
  • Doubles the state EITC benefit for individuals with no qualifying children
  • Allows taxpayers with an Individual Taxpayer Identification Number (ITIN) to be eligible for the state EITC
  • Authorizes advanced quarterly payment of the state EITC
  • Expands the New York City EITC
• Provides $500 million to expand the state Child Tax Credit
• Increases the existing child tax credit and expands it to include families with children under the age of 4, which were previously excluded from the state credit; a single parent making $20,000 with one qualifying child could see tax savings of as much as $527 from our expansion of the state EITC and Child Tax Credit
• Provides $162 million to accelerate middle-class tax cuts that began in 2018

Securing critical pandemic relief to advance New York’s recovery

• Provides $1.25 billion for the Emergency Rental Assistance Program (ERAP)
• Provides $400 million for the Homeowners Assistance Fund
• Provides $400 million for the Landlord Rental Assistance Program (LRAP)
• Provides $100 million to offset the Distressed Hospital Sales Tax Intercept
• Adds $40 million for Arts Recovery Grants, for a total of $80 million
• Provides $25 million – the same amount as last year – for the NY Restaurant Resiliency Grant Program (World Central Kitchen-model)
• Provides $20 million for the Hunger Prevention Nutrition Assistance Program
• Provides $15 million more than the executive budget – for a total of $35 million – for the Homeowner Protection Program (HOPP), which helps homeowners avoid foreclosure by connecting them to free, qualified mortgage assistance relief services¹
• Provides $7 million for Double Up Food Bucks, a healthy food incentive program that supports low-income families, local farmers and the economy²
• Provides $2 million for the Nutrition Outreach & Education Program (NOEP), which helps connect New Yorkers to nutrition assistance programs³
• Provides $50 million for flooding repair assistance

¹ ag.ny.gov/protect-our-homes

² doubleupnys.com/about-the-program

³ nyconnects.ny.gov/services/nutrition-outreach-education-program-7186

Supporting local schools and libraries

• State funding for school aid would total $30.9 billion, an increase of $2.1 billion, or 7% over last year, and $120 million over the executive budget proposal
• Foundation Aid would be increased by $1.5 billion, and fully phased in by the 2023-24 school year
• $100 million more to fund new community school programs
• Provides $150 million for Universal Pre-Kindergarten (UPK), with $25 million going to increase the per pupil rate for districts already providing UPK, and $125 million to support new programs
• Includes a $10 million increase in aid for public libraries over the executive budget for a total of $106.1 million – a $12 million increase over last year
• Increases the subsidy for school breakfast for qualifying school districts and allows food products for any meal, not only lunch, to count toward the minimum 30% requirement of food produced, processed or grown in NY

Expanding access to affordable, high-quality child care and support services

• Provides over $3 billion for child care, including $2 billion to maintain current subsidies and expand the eligibility from 200% of the federal poverty level (FPL) to 400% FPL,
• $500 million toward additional child care stabilization grants, $370 million to increase the child care market rate from the 69th percentile to the 90th percentile and $200 million in capital support to expand child care access and availability
• Provides $53 million for children and youth services, including an increase in Medicaid rates and funding for various community non-residential programs such as:
  • Healthy Steps, which is a pediatric primary care program that supports healthy early childhood development and effective parenting⁴
  • Childhood Trauma Informed Network, which aims to enhance resources, collaboration and communication among individuals and agencies implementing trauma-responsive practices⁵
  • School & Home-Based Crisis Intervention, which provides intensive crisis care to children between the ages of 5 and 18 and serves as an alternative to hospitalization for children and adolescents experiencing emotional distress⁶
• Provides $15.6 million in start-up funds to expand child care centers on SUNY campuses, CUNY senior colleges and SUNY and CUNY community colleges
• Restores $24.76 million in Temporary Assistance for Needy Families (TANF) funding, which includes:
  • Restoring $5 million in funding for Advantage After School Program, which provides structured activities for kids to help them succeed academically⁷
  • An increase of $2.8 million for non-residential domestic violence services over the 2021-22 budget – $3 million more than the executive budget – for a total of $6 million

⁴ www1.nyc.gov/assets/doh/downloads/pdf/hcp/pediatric-bundle-healthy-steps.pdf

⁵ traumainformedny.org/Home

⁶ nycwell.cityofnewyork.us/en/crisis-services/home-based-crisis-intervention

⁷ ocfs.ny.gov/main/contracts/tanf/aas

Improving affordability and quality of higher education systems

• Includes $200 million in additional state operating support funds for SUNY and $200 million for CUNY
• Includes $48.8 million for SUNY and $59.6 million for CUNY to fully reimburse each system and eliminate the “TAP gap”
  • The TAP gap is the difference between TAP funding for students and actual tuition costs
• Increases the maximum TAP award from $5,665 to $7,070 over the next two years to match the maximum TAP award to SUNY’s tuition; additionally, the minimum TAP award would be increased from $500 to $1,000
• Extends TAP to part-time students and incarcerated people
• Includes $18.6 million to reset Excelsior tuition

• Provides an additional $60 million each for SUNY community colleges and CUNY community colleges

• Provides $53 million each to SUNY and CUNY to hire additional full-time faculty members
• Includes a $1.2 billion increase in expansion capital for SUNY and CUNY to fund a five-year capital plan for a total of $1.63 billion in expansion capital for each system
• Provides an additional $18 million – or a 10% increase – to all opportunity programs, doubling the executive’s proposed increase for a total of $215 million in opportunity program funding
• Provides a $28.8 million increase to SUNY’s mental health services for a total of $29.8 million and a $28.8 million increase for a total of $29.8 million to CUNY’s mental health services
• Provides a $2.5 million increase to SUNY’s High Needs Nursing Programs for a total of $4.2 million and $2.5 million to CUNY’s expansion of nursing programs for a total of$4.5 million
• Provides a $2 million increase in scholarships for students with disabilities for a total of $4 million

Boosting wages for selfless health care workers and investing in public health programs

• Supports the heroes that worked on the frontlines throughout this pandemic by repurposing $2.5 billion in executive funds allocated for health care worker bonuses and adding the Fair Pay for Home Care proposal, which would increase the home care minimum wage by 150%
  • Additionally, the Assembly would provide $400 million for wage increases in other sectors of Medicaid
• Allocates $120 million in bonuses for the state health care workforce
• Adds $1.55 billion in funding to the Medicaid program, and $120 million in funding to public health
• Provides $345 million to include coverage for undocumented immigrants under the Essential Plan
• Includes $45 million to increase Medicaid Early Intervention Rates by 11%
• Provides $750 million for safety-net health care providers
• Provides $250 million for major public hospitals

Ensuring New Yorkers experiencing mental health and substance abuse challenges receive the help they need

• Provides $310 million to increase the human services cost-of-living adjustment (COLA) to 11%
• Includes $100 million over two years for the Recover from COVID Schools Program (RECOVS), which provides matching funds for enhanced education or mental health support and would expand the allowable source of matching funds beyond federal stimulus funds
• Provides $2 million for the Positive School Climates Pilot Program
• Includes a new $40 million investment for additional Mental Health Grants in schools
• Allocates $3.82 million to restore funding for School Based Health Centers
• Includes $10 million in capital funding for the Independent Living Opportunities program under the state Office for People with Developmental Disabilities (OPWDD)
• Provides $50 million in capital funding for localities and non-profit organizations to increase capacity and expand access to mental health and substance abuse providers
• Provides an increase of $53 million for children’s mental health programs under state Office of Mental Health (OMH)
• Includes $8 million for mental health programs at SUNY/CUNY
• Provides $35 million to establish the 988 Crisis Hotline, which supports those experiencing a mental health or substance use disorder crisis

Combating gun violence and other dangerous crimes

• Provides an additional $19 million – for a total of $58.1 million – for the SNUG Violence Protection Program, Cure Violence, the Gun Involved Violence Elimination (GIVE) initiative and other programs to reduce gun violence in communities across the state
• Provides $28.6 million for youth justice and gang prevention programs
• Provides $20 million to help foster partnerships between the government and community-based organizations to better support communities and help them recover in the aftermath of a gun violence tragedy
• Provides $14.9 million to establish Gun Crime Analysis Centers, which would help state and local law enforcement solve and prevent firearm-related crime⁸
• Provides $13.1 million to expand Community Stabilization Units, which tackle community specific crime challenges⁹
• Provides $50 million in capital grants for communities impacted by gun violence

⁸ criminaljustice.ny.gov/ops/gunviolencereduction/index.htm

9 governor.ny.gov/news/governor-hochul-announces-three-part-agenda-prevent-and-reduce-gun-violence-and-violent- crime

Improving the criminal justice system and investing in safe alternatives to incarceration

• Restores $17 million to support criminal justice programs, including re-entry programs, community dispute resolution centers, community-based organizations, civil or criminal legal services and crime prevention programs
• Provides an additional $5 million for Alternative to Incarceration (ATI) programs throughout New York State, bringing the total amount of funding to $24 million
• Provides an additional $5 million for pretrial services including job placement programs, drug treatment and counseling services, for a total of $15 million in funding
• Provides $50 million in capital grants for equipment, technology and facility renovations to better support probation and parole services and re-entry programs
• Restores the carve out of $300,000 for the Assembly’s share of Edward Byrne Memorial Justice Assistance Grants (JAG), which is the primary provider of federal criminal justice funding for state and local governments¹⁰

Offering relief to tenants and homeowners

• Increases the five-year housing capital plan by $1.7 billion, for a total of $6.1 billion in funding
• Provides $1 billion for Affordable Rental Housing and clarifies that commercial and hotel conversions are eligible for this funding
• Allocates $1.25 billion in additional funding for the Emergency Rental Assistance Program (ERAP)
• Provides $400 million in additional funding for the Landlord Rental Assistance Program (LRAP)
• Includes $250 million to establish the Housing Access Voucher Program (HVAP)
• Includes a $15 million increase over the executive budget to the Homeowner Protection Program (HOPP) for a total of $35 million
• Provides $50 million in additional funding to pay for homeowner repairs necessary due to storm damage that is above the amounts covered by FEMA or insurance.
• Provides $400 million in additional funding for the New York State Homeowner Assistance Fund (HAF) Program
• Increases funding for eviction legal counsel outside of New York City by $15 million for a total of $50 million
• Provides $1 billion for a new statewide Limited Equity Cooperative Housing program called Foundations for Futures, $250 million for additional homeownership funds, $100 million for land banks and $2 million for technical assistance to first-time homebuyers; all of this funding goes toward the goal of providing access to affordable homeownership
• Provides a $100 million increase to weatherize and electrify units for a total of $350 million
• Includes $150 million in funding for the Housing our Neighbors with Dignity Act (HONDA) to convert distressed hotels or other commercial properties into affordable housing
• Provides $20 million for the Small Rental Development Initiative to fund rural developments under 20 units

¹⁰ criminaljustice.ny.gov/ofpa/jagmain.htm

Investing in environmental conservation efforts and electric vehicles

• Allocates a $1 billion increase on top of the governor’s additional $1 billion to the Environmental Bond Act of 2022 for a total of $5 billion; the Assembly Majority proposes the $2 billion in additional funding go toward climate change related purposes, including:
  • An additional $500 million for energy efficiency and renewable energy projects at state-owned buildings, for a total of $850 million
  • $450 million for climate adaptation and mitigation projects, including for land acquisition and wetland protection
  • $300 million to combat air pollution in Environmental Justice communities
  • $200 million to combat the urban heat island effect, a phenomenon linked to climate change that causes major cities, such as New York City, to experience higher temperatures in the summertime compared to rural areas due to its lack of greenspace¹¹
  • $250 million to combat water pollution in Environmental Justice communities
  • An additional $150 million for open space conservation, for a total of $350 million
  • An additional $100 million for Farmland Protection, for a total of $200 million
  • $50 million for urban forest and habitat restoration projects
• Proposes an increase of $150 million, for a total of $250 million, for municipal stormwater grants; this would come from funds previously unallocated within the environmental bond act
• Allocates $500 million for various clean water infrastructure programs as follows:
  • $200 million for the Water Infrastructure Improvement Act (WIIA)
  • $140 million for projects in the New York City watershed
  • $50 million for Municipal Stormwater Grants
  • $40 million for Land Acquisition
  • $40 million for WIIA – emerging contaminants
  • $30 million for the Intermunicipal Water Infrastructure grant program
• Provides $400 million for the Environmental Protection Fund (EPF), an increase of $100 million over last year’s state budget
• Requires the New York State Energy and Research Development Authority (NYSERDA) to develop a comprehensive electric vehicle fast-charging station implementation plan
• Includes $20 million for the third installment of a five-year, $100 million program for electric transit buses
• Provides $17 million for the electrification of the state vehicle fleet, toward a goal of full electrification by 2035
• Requires that all new school bus purchases be zero emissions by 2027 and all school buses on the road be zero emissions by 2035; all schools will be reimbursed through transportation aid

¹¹ weact.org/2021/07/report-reveals-inequities-in-the-exposure-to-the-urban-heat-island-in-new-york-city

• Provides $15 million, for a total of $57.4 million, for New York State Energy Research and Development Authority (NYSERDA) to continue the Charge NY Program, which aims to get more electric cars and trucks on the road¹²
  • Funding will be used for charging stations installed at public, workplace and multi-unit dwelling parking lots
• Creates publicly accessible charging stations at state parks, funded from the $200 million in parks appropriation
• Provides $20 million for a sales tax exemption on the first $35,000 for an electric vehicle purchase

ABP Highlights – Supporting local governments and bolstering economic development

• Provides $904.7 million for local governments in Aid and Incentives for Municipalities (AIM) program funding, which includes $865.2 million in unrestricted AIM for cities (excluding New York City), towns and villages
  • This is an increase of $150 million over the previous year, bringing AIM higher than 2018-19 enacted levels of funding
  • Counties will no longer be required to use internet sales tax revenues to cover this funding
• Provides $39 million for various local government efficiency programs
• Provides an additional $365,000 for the Minority- and Women-Owned Business Enterprise (MWBE) Development and Lending Program for a total of $1 million to cover additional services and expenses

ABP Highlights – Enhancing transportation systems and roadways across the state

• Provides $6.17 billion for Metropolitan Transportation Authority (MTA) transit assistance, an increase of $993 million – or 19.2% – over last year’s budget
• Includes a $33.2 billion, five-year Department of Transportation (DOT) Capital Plan, which is an increase of $436 million over the executive proposal and a 21% increase from the previous five years of the capital plan
• Provides $6.2 billion over a five-year span for capital aid to localities funding, which is an increase of $100 million over the executive budget and $2.2 billion, or 56%, over the previous five-year capital programs
• Programs under this funding include:
  • $538.1 million for the Consolidated Local Street and Highway Improvement Program (CHIPs) and $39.7 million for the Marchiselli program
  • $200 million for BRIDGE NY and $150 million for PAVE NY, which rehabilitate and replace worn-out bridges and repave roads impacted by extreme weather conditions, improving safety for drivers
  • $200 million for the State Route NY program, an increase of $100 million over the executive budget, which reimburses cities, villages and towns for capital project costs on New York- or U.S.-signed state touring routes that run through them

¹² www.nyserda.ny.gov/All-Programs/ChargeNY

• • $100 million for Extreme Winter Recovery program, which helps municipalities recover after harsh winters and severe weather events by providing reimbursements for storm-related damages
  • $100 million for a new “Pave our Potholes” local program
• Includes $100 million for upstate transit systems over five years

ABP Highlights – Helping businesses and our economy move forward

• Creates Small Business Hardship Savings Accounts to allow qualified small businesses with fewer than 25 employees to make contributions, up to 10% of net income, into a tax-deferred savings account; during times of specified economic hardship, these small businesses would be able to withdraw from the account tax-free for purposes of job retention or creation
• Provides $6 million within the Innovation Venture Competition program to create Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) matching grant programs
• Includes $500 million for market and shovel ready sites within the Regional Economic and Community Assistance program
• Adds $5.5 million for the Centers of Excellence, resulting in all centers receiving $1.25 million regardless of when they were established
• Adds $5.2 million for the Centers for Advance Technology (CAT) program, resulting in each CAT receiving $1.25 million
• Provides an additional $365,000 for the Minority- and Women-Owned Business Enterprise (MWBE) Development and Lending Program for a total of $1 million to cover additional services and expenses
• Provides support for reentry programs within the Workforce Development Grant Program
• Provides $250 million to create a refundable tax credit for small business COVID-19-related expenses
• Establishes a 0% tax rate for pass-through manufacturers; the current tax rate on these entities would be phased out over three years, beginning in tax year 2022, providing $150 million when fully implemented
• Increases the small business subtraction modification from 5 to 15 percent of net income, and expands the benefit to include pass-through entities with less than $1.5 million in gross income, providing a $100 million tax cut for New York small businesses
• Extends and expands the Hire-a-Vet Tax Credit to maintain the enhanced benefit for hiring a disabled veteran and to further expand program eligibility to include the NOAA Commissioned Officer Corps and the Commissioned Corps of the Public Health Service
• The Assembly provides $1.78 million in restorations and adds for various veterans’ programs
• Provides $7.7 million to expand the Dwyer Peer-to-Peer Veteran’s Support Program statewide, which offers counseling and support for veterans struggling with post-traumatic stress disorder (PTSD) and other mental health challenges¹³
• Provides $42.5 million for traditional Agricultural Aid to Localities programs, an increase of $7.1 million, or 20% above the executive budget proposal