Press Release
State Budget Funds Important Investments in Health Coverage, Consumer Assistance Programs and Child Care, But Serious Issues Remain
Two years since the beginning of a dangerous pandemic that landed a devastating blow to New York, destabilizing families, creating permanent job loss for countless people, and causing an economic recession that disproportionately impacted low-income Black and brown residents, Governor Hochul and the State Legislature last Friday announced a budget agreement that advances important investments in health coverage, child care, consumer assistance programs and temporarily expands the state’s Earned Income Tax Credit (EITC) and New York City’s Earned Income Tax Credit (NYC EITC).
The Community Service Society (CSS) applauds these measures. At the same time, this year’s surplus budget, fueled by an influx of federal funds and higher than anticipated tax revenue, raised expectations that more would be done in the budget to expedite comprehensive recovery for low-income families and other state residents still reeling from the effects of the pandemic. For example, despite deep and widespread support, Clean Slate legislation which would automatically seal old conviction records for civil purposes and allow the more than 2.3 million New Yorkers with past justice systems involvement the ability to move forward, obtain jobs and stable places to live, and be full participants in our state’s economy, was left out in the final hours of budget negotiations. So were several proposals to improve housing conditions for low-income tenants across the state.
While we are disappointed the budget failed to include these items, we are encouraged by the fact that both the Governor and Legislative leaders support passage of Clean Slate before the end of the legislative session in June. To that end, over the next two months CSS will continue to fight for passage of this vital legislation, as well as in support of housing and healthcare initiatives that serve the needs of New Yorkers facing economic insecurity.
Health Care
For the first time ever, New York will offer comprehensive health coverage to undocumented immigrants over age 65. While we had urged the Governor and Legislature to extend coverage to all immigrants of all ages, this is an important first step and we commend the Governor and Legislature for recognizing the urgent need to close the coverage gap for uninsured immigrant residents. Notably, the budget also: expands eligibility for the Essential Plan to higher income levels – from 200 percent to 250 percent of the federal poverty line; eliminates the $9 monthly premium for Child Health Plus (CHP); provide for the equitable treatment of New Yorkers who are older or have disabilities; and extends Medicaid coverage, regardless of immigration status, during an individual’s first year post-pregnancy. This is of particular significance given that New York has an unconscionably high maternal mortality rate due to our state’s high health care costs.
Child Care
We commend lawmakers for including in the budget expanded eligibility for child care subsidies for families making up to 300 percent of the FPL and a temporary increase in the Empire State Child Credit. Given that availability of quality and affordable child care has proven to be one of the most crucial impediments in the path of economic recovery, we expect this expansion to have significant positive impact on families, both in the short-term by allowing more parents/caregivers to join work, as well as in the long-run by improving children’s incomes and well-being. That said, we are concerned that many immigrants continue to be excluded from these subsidies. The budget also incentivizes businesses to create more child care opportunities through both a real property tax credit to those businesses that construct and operate child care centers on their premises, and through business tax credits to employers that create additional child care seats for their employees.
Earned Income Supports
We are also pleased to see the temporary expansion in state EITC (from 30 percent to 37.5 percent of the federal credit) and the expansion in NYC Earned Income Tax Credit (NYC EITC) - from 5 percent of the federal EITC to up to 30 percent, on a sliding scale basis. While this would bring much needed assistance to low-income families, we are nonetheless concerned that deep inequities that characterize the EITC program were left unaddressed in the final budget. Specifically, we had hoped that the state would endorse a doubling of the credit for childless working adults; inclusion of ITIN filers in the EITC program; and inclusion of both youth workers (16-24 years old) and elderly workers (aged above 65 years).
Housing
We commend state lawmakers for not including either 421-a or its proposed replacement, 485-w, in the final budget. As documented in two recent CSS reports, 421-a has been an ineffective and inefficient housing program that has cost New York City tens of billions in uncollected tax revenue over the past decades. The best thing that could happen would be to permit this housing program, first conceived in 1971 amid concerns of “white flight,” to expire in June and replace it with a targeted tax credit that meets New York’s most pressing housing needs.
Also left out of the budget, regrettably, were “Good Cause” eviction protection legislation and the Housing Access Voucher Program which would have helped 10,000 households move out of homelessness and prevented 10,000 more from falling into homelessness. Failing to include this program in the budget makes it far more likely that our state’s ongoing homelessness crisis will continue to expand in the coming year. Public housing residents were once again shortchanged in the budget despite high hopes following the Governor’s creation of a NYCHA Task Force to focus attention on the many needs of the city’s public housing system. The budget includes a $350 million capital commitment for NYCHA, the largest since 2015 when the state began reinvesting in NYCHA. Even so, there is no money in the budget for emergency rent assistance for public housing residents and overall funding levels for the beleaguered housing authority - home to a half million low-income New Yorkers – does not match the need.
Notably, the state did increase funding for the Housing Our Neighbors with Dignity Act (HONDA), a program launched last year with $100 million to help nonprofits purchase financially distressed hotels and vacant commercial spaces and convert them into affordable housing for homeless and low-income New Yorkers. Additional funding for HONDA will allow the program to expand statewide. While we wish the state had also provided a means for regulatory relief to encourage these conversions in New York City, we will continue working toward that goal in the coming months.
Finally, the Community Service Society is especially grateful to the Governor and the Legislature for including funding in the budget for vital consumer assistance programs. For example, the budget includes $3 million for expansion of the Education Debt Consumer Assistance Program (EDCAP), which helps New Yorkers navigate the student loan system, maximize their repayment options, apply for public loan forgiveness, cancellation, discharge programs, and so much more. Thanks to the Governor’s leadership on this issue, New York is only the second state in the nation to create such a program.
Other critical consumer assistance programs funded in the budget are: Community Health Advocates (CHA), which received $5.2 million to continue to help New Yorkers find and navigate health coverage or access low-cost or free care; Community Health Access to Addiction & Mental Health (CHAMP), which received $3 million to assist New Yorkers in accessing treatment and insurance coverage for substance use and mental health treatment; and the Next Door Project (“Record Repair Services Corps”) which received $250,000 to assist individuals with conviction histories obtain, review and correct errors on their Rap Sheets, apply for licenses to practice trades, and provides legal representation for clients who have experienced conviction records-based discrimination.
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The Community Service Society of New York (CSS) has worked with and for New Yorkers since 1843 to promote economic opportunity and champion an equitable city and state. We power change through a strategic combination of research, services, and advocacy to make New York more livable for people facing economic insecurity. By expanding access to health care, affordable housing, employment opportunities, debt assistance, and more, we make a tangible difference in the lives of millions. Join us at www.cssny.org.