Steck: State Budget Includes Key Wins but Raises Power Concerns

“A common misconception people have about the New York State Budget is that it is similar to the process of the federal budget. In the federal system, Congress drafts the budget, and the President can either sign it or veto it. In New York State, we have executive budgeting where the Governor creates the budget, and the Speaker of the Assembly and the Senate Majority Leader negotiate the final budget with the Governor. In those negotiations, the Assembly and Senate leadership can only modify the Governor's proposal or threaten not to pass a budget altogether.

I am incredibly pleased that the final budget includes two pieces of legislation of mine. The first bill requires manufacturers who have ever produced, sold, or distributed Class B firefighting foam with PFAS to recall all such products. It is widely known that PFAS, often referred to as ‘forever chemicals,’ take a very long time to degrade. This critical legislation will protect the brave men and women who put their lives on the line to protect our communities from equipment containing these harmful chemicals. The next piece of legislation that is included in the budget eliminates the $20 electronic death registry fee that funeral directors must pay to obtain a burial and removal permit. It is very rare to pass legislation to eliminate an onerous fee. I want to thank my colleagues for supporting the inclusion of these two commonsense policies in the budget.

Last year, for the first time, we provided $1.2 million for 12 not-for-profit programs that treat co-occurring substance abuse and mental health disorders. This year, the New York State Budget will continue to fund these critical programs. I have heard directly from patients and providers who have benefited from this program and were able to receive the funding promptly. I am encouraged that $500,000 has been included in the budget to study my proposal to infuse the twelve state-run Addiction Treatment Centers (ATCs) with resources to treat co-occurring disorders. I am optimistic we will accomplish this in next year's budget.

I am also very proud that my proposal to increase the transparency of the Opioid Settlement Fund has been included in the budget. I have been highly critical over the years of the lack of transparency regarding how the funding has been allocated and to whom it has been awarded. Starting this year, the legislature will receive an annual report outlining the amount of money an entity is granted, the intended use of those funds, and an analysis of the effectiveness of the expenditures made in the previous year. This is a critical step forward to ensuring that we are investing in effective programs to treat those with substance use disorder.

When Governor Hochul unveiled her Executive Budget, she proposed a bell-to-bell smartphone restriction in K-12 schools. I am proud that her proposal was included in the final budget. Whenever I meet with educators, they consistently mention that students are distracted in the classroom and their social skills have deteriorated due to relying on texting and social media as their primary method of communication with peers. The budget will also provide universal breakfast and lunch to all students enrolled in publicly funded schools in New York State. Both of these proposals will improve educational outcomes and the overall well-being of all students.

While the final budget includes many proposals that I strongly support, there are also a few provisions that I do not support.

The capital projects budget bill included a provision that would grant the Governor emergency powers to cut up to $2 billion in funding without the consent of the legislature. The subtle abridgement of constitutional powers has long-term corrosive effects. It begins to erode the most profound manifestation of democracy. One person, the Governor of New York, already has more power over the budget than any other Governor of any other state. I have never supported any further ceding of legislative powers to the Governor. I do not support rule by executive orders, whether in Albany or Washington. I opposed granting the Governor emergency powers during the COVID-19 pandemic and voted against granting the Governor those same powers in this budget. While I am deeply concerned about the draconian cuts that will be made at the federal level, that is no excuse for ceding the legislature's powers to the Governor.

The Executive Budget also proposed a 2.1% cost-of-living adjustment (COLA) increase for employees who provide human services, including those at OASAS. In the Assembly One House Budget, I was proud that we were able to increase this amount to 7.8%. Unfortunately, the final budget only provides a 2.6% COLA for human service providers. I am deeply disappointed in this. As my colleague across the aisle correctly pointed out, had we not allocated taxpayer dollars to wasteful programs, such as extending the New York State Film Tax Credit or the Inflation Rebate Checks, we would have been able to ensure that the essential workers who help treat those with disabilities, mental health issues, and substance use disorder are well paid and have a competitive workforce.

While I appreciate the efforts made in the budget to provide greater transparency for Pharmacy Benefit Managers (PBMs), this is not the solution to lowering the cost of prescription drugs and keeping our small community pharmacies competitive with large chains like CVS and Walgreens. To accomplish this, I have introduced legislation prohibiting pharmacy benefit managers (PBMs) from owning pharmacies (A6546). Not only would this legislation keep small pharmacies competitive, but patients would also benefit from lower prescription drug prices since pharmacies would no longer be able to inflate prices to cover PBM fees and clawbacks. To demonstrate how logical this bill is, it mirrors an identical proposal from two United States Senators who rarely agree, Senators Elizabeth Warren (D-MA) and Josh Hawley (R-MO).

Another critical gap in this budget is the lack of investment in New York's infrastructure. Infrastructure investments not only create jobs but also make our state more attractive to businesses looking to establish a presence and drive long-term economic growth. To fund these vital projects, we should reinstate the New York Stock Transfer Tax. From 1905 to 1981, New York State established a half-penny tax on stock trades. New York State would generate more than $14 billion annually if reinstated. This is one way New York State could offset any extreme cuts to punish New York State and enrich the billionaire class. It is incredibly efficient, with a rate of one-half penny per dollar and a maximum total of $350 per transaction. At a time when New York must defend itself against harmful federal policies, this measure would provide stability and reaffirm our commitment to a fair economy that works for everyone.

As one party continues to prioritize the interests of the ultrawealthy, like Elon Musk, it is more important than ever to enact policies similar to those of FDR that will genuinely benefit the working class. Instead of providing a gimmicky one-time check and a 0.1% tax cut to the middle class, we should provide all New Yorkers with universal childcare and healthcare. These programs, like Social Security, are unifying. Everyone pays, and everyone benefits. Our path forward is to champion and use these programs to stabilize our country. Changing our approach to economics will not be easy. The idea that the government cannot do anything right has been deeply ingrained in the American people by propaganda from billionaires and their allies. However, to stabilize this country, the Majority Party must return to its Rooseveltian roots.”