February 5, 2007 Dear Senators Please find attached the �Staff

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February 5, 2007 Dear Senators Please find attached the �Staff Powered By Docstoc
					      OWEN H. JOHNSON                                                                    DISTRICT OFFICE:
CHAIRMAN OF THE FINANCE COMMITTEE          THE SENATE                                  23-24 ARGYLE SQUARE
           CHAIRMAN
                                        STATE OF NEW YORK                         BABYLON, LONG ISLAND, NY 11702
                                                                                            (631) 669-9200
SUBCOMMITTEE ON L.I. MARINE DISTRICT
                                                                                          ALBANY OFFICE:
          COMMISSIONER
         ATLANTIC STATES                                                                     ROOM 913
    MARINE FISHERIES COMMISSION                                                      LEGISLATIVE OFFICE BLDG.
                                                                                        ALBANY, NY 12247
                                                                                           (518) 455-3411

                                                                                         E-MAIL ADDRESS:
                                                                                      ojohnson@senate.state.ny.us
                                                                                              WEBSITE:
                                                                                      www.senatorowenjohnson.net

                                                     February 5, 2007



   Dear Senators:

              Please find attached the “Staff Analysis of the SFY 2007-08 Executive Budget.” It is
   intended to assist the members of the Finance Committee and the Senate as a whole, in their
   deliberations. We hope that our readers find it useful.

             This analysis of the Executive Budget begins with a summary of the spending plan. It
   then examines an explanation of receipts and provides for Senate issues in focus. Finally, it
   examines appropriations and disbursements for each agency and program included in the
   budget. The report provides a comparison of the appropriations recommended this year with
   those approved last year, and an analysis of the Governor’s recommendations.

              Each member of the Senate Finance Committee devotes considerable time and effort
   to the passage of a budget that serves the interest of every New Yorker. I am most grateful for
   their cooperation. It is also a pleasure to thank the staff of the Senate Finance Committee,
   whose assistance has been invaluable.

                                                  Sincerely,




                                                  Owen H. Johnson
               STAFF ANALYSIS OF THE
            SFY 2007-08 EXECUTIVE BUDGET

                      As Prepared by the Senate Finance Committee Staff



Jeffrey Lovell                                                                  Robert F. Mujica
Secretary to the Finance Committee                   Managing Director of Budget & Fiscal Analysis
and Special Advisor to the Majority Leader           and Deputy Secretary to the Finance Committee


                               Peter S. Applebee, Assistant Director
                              Kathleen H. Preston, Assistant Director
                               Thomas P. Havel, Assistant Director

                    Richard C. Mereday                          Lauren E. King
                    Michael Paoli                               Angela Wright
                    Mary C. Arzoumanian                           Lillian Kelly
                    Mary D. Clark                                  Lora Como
                    Shawn M. MacKinnon                         Mariah C. Roda
                    Jacqueline Y. Donaldson                    Mark S. Nachbar
                    Heather Mowat                               Kandy S. Terry
                    Steven A. Taylor
                    Thomas LaLiberte, Jr                      Publication Editor
                    Maria A. LoGiudice                        Kurt Van Wormer
                    Ade Somide                         Assistant to the Secretary
                    Peter C. Drao                                 David J. Natoli
 SCHEDULE


                    SCHEDULE FOR LEGISLATIVE REVIEW
                OF THE 2007-08 EXECUTIVE BUDGET PROPOSAL

DATE             LOCATION         TIME            TOPIC

February 5       Hearing Room B   10:00 AM        Local Government Officials
                                                  & General Government

February 6       Hearing Room B   12:00 PM        Housing

February 7       Hearing Room B    9:30 AM        Mental Hygiene

February 8       Hearing Room B    9:30 AM        Higher Education

February 12      Hearing Room B   10:00 AM        Environmental Conservation

February 13      Hearing Room B    9:30 AM        Health, Medicaid & Aging

February 14      Hearing Room B    9:30 AM        Public Protection

February 15      Hearing Room B    9:30 AM        Transportation

February 26      Hearing Room B   10:00 AM        Workforce Issues

February 27      Hearing Room B    9:30 AM        Elementary & Secondary
                                                  Education

February 28      Hearing Room B    9:30 AM        Economic Development & Taxes

March    1       Hearing Room B    9:30 AM        Human Services

FORECAST OF RECEIPTS

On or before February 26          Release of Revenue Receipts by the
                                  Fiscal Committees of the Legislature


Page 2                                                                   Section Name
TABLE OF CONTENTS

   SECTION ONE: HIGHLIGHTS OF THE SFY 2007-08 BUDGET
                                                                                                                          PAGE

OVERVIEW OF THE SFY 2007-08 BUDGET. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

SUMMARY OF SPENDING BY CONFERENCE COMMITTEE

             Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
             Higher Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
             Health - Medicaid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
             Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
             Environmental Conservation, Agriculture and Housing. . . . . . 26
             Public Protection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
             Economic Development/Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
             Mental Hygiene. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
             Human Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
             General Government and Local Government Assistance. . . . . 46


   SECTION TWO: SENATE ISSUES IN FOCUS
                                                                                                                          PAGE

PROPERTY TAX RELIEF

             Rebate New York Plus Program - Real Property Tax Relief for All. . . . . . . . . . . . . 49
             Executive Income and Geographic Based Star Expansion. . . . . . . . . . . . . . . . . . . . . 50

BUDGET REFORM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

SMALL BUSINESS TAX CUTS AND THE UPSTATE ECONOMY. . . . . . . . . . . . . . . . . . . 56

             TASK FORCE ON TAX SIMPLIFICATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

HIGHER EDUCATION AFFORDABILITY AND ACCESS . . . . . . . . . . . . . . . . . . . . . . . . . 60
HEALTH CARE REDUCTIONS AND INSURANCE EXPANSIONS. . . . . . . . . . . . . . . . . . 63
EDUCATION FOUNDATION AID FORMULA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

FINAL CFE DECISION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

SENATE HIGH SPEED RAIL TASK FORCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

IMPACT ON LOCAL GOVERNMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

              IMPACT ON NEW YORK CITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

PRISON CLOSURES COMMISSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

NEW ECONOMIC DEVELOPMENT PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

NEW YORK STATE STEM CELL AND INNOVATION FUND CORPORATION. . . . . . . 88

HEALTH CARE REDUCTIONS AND INSURANCE EXPANSIONS. . . . . . . . . . . . . . . . . . 90



   SECTION THREE: EXPLANATION OF RECEIPTS
                                                                                                                         PAGE

ECONOMIC OUTLOOK. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

RECEIPTS TABLES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

INDIVIDUAL TAX EXPLANATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

MISCELLANEOUS RECEIPTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

              FEE INCREASES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

DEDICATED FUNDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

DEBT FINANCING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129




   SECTION FOUR: AGENCY DETAIL
Adirondack Park Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                131
Aging, Office for the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           132
Agriculture and Markets, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        133
Alcoholic Beverage Control, Division of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       135
Arts, Council on the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          136
Audit and Control, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    137
Banking Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              138
Blind, Office for the. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          139
Budget, Division of the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             140
Capital Defender Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             141
Children and Family Services, Office of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       142
City University of New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 145
Civil Service, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                148
Consumer Protection Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 149
Correction, State Commission of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   150
Correctional Services, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      151
Crime Victims Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             155
Criminal Justice Services, Division of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    157
Deferred Compensation Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   162
Developmental Disabilities Planning Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           163
Domestic Violence, Office for the Prevention of . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           164
Economic Development, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           165
Education Department, State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 168
Elections, Board of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         174
Empire State Development Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          176
Employee Relations, Office of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 179
Energy Research and Development Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             180
Environmental Conservation, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           181
Environmental Facilities Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                     184
Executive Chamber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             185
General Services, Office of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               186
General State Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             188
Health, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             189
Higher Education Services Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       197
Homeland Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           199
Housing and Community Renewal, Division of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              201
Hudson River Park Trust. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              203
Human Rights, Division of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               204
Inspector General, Office of the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                205
Insurance Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            206
Interest on Lawyer Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                207
Investigation, Temporary State Commission of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            208
Judicial Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            209
Judiciary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   210
Labor, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            212
      Law, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
      Lieutenant Governor, Office of the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
      Lobbying, Temporary State Commission on . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
      Lottery, Division of the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
      Medicaid Inspector General. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
      Mental Hygiene, Department of
        Mental Health, Office of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
        Mental Retardation and Developmental Disabilities, Office of . . . . . . . . . . . . . . . . 225
        Quality of Care and Advocacy for Persons with Disabilities (CQCAPD), Commission . . .
227     Alcoholism and Substance Abuse Services, Office of . . . . . . . . . . . . . . . . . . . . . . . . 228
      Military and Naval Affairs, Division of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
      Motor Vehicles, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
      Olympic Regional Development Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
      Parks, Recreation and Historic Preservation, Office of . . . . . . . . . . . . . . . . . . . . . . . . 235
      Parole, Division of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
      Probation and Correctional Alternatives, Division of . . . . . . . . . . . . . . . . . . . . . . . . . 239
      Public Employment Relations Board. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
      Public Service, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
      Racing and Wagering Board, State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
      Racing Reform. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
      Real Property Services, Office of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
      Regulatory Reform, Governor's Office of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247
      Science, Technology and Innovation, Foundation for . . . . . . . . . . . . . . . . . . . . . . . . . 248
      State, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
      State Police, Division of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
      Mortgage Agency, State of New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
      State University of New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
      State University Construction Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
      Stem Cell and Innovation Fund Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
      Taxation and Finance, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
      Tax Appeals, Division of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
      Technology, Office for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
      Temporary and Disability Assistance, Office of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
      Transportation, Department of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
      Veterans' Affairs, Division of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
      Welfare Inspector General, Office of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
      Workers' Compensation Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274