2017 NYS Budget Proposals Foundation Aid, was promised in 2007 by then-Gov. Eliot Spitzer as the state's remedy to a lawsuit and court ruling that found New York wasn't sufficiently funding schools in areas with high rates of poverty and other challenges. After two years of funding the new aid formula, the state froze funding and since 2012 has reintroduced it at much smaller levels than originally promised. Foundation Aid $4.3 Billion is owed to all schools $798+ Million owed to LI Schools

Foundation Aid- owed $4.3 Billion Cuomo- eliminate going forward This year provide $428 Million Senate- $906.3 Million Assembly - $ 1.4 Billion

Total School Aid Board of Regents- $1.7 Billion needed to maintain the status quo NYSUT & Board of Regents asked for $2.1 Billion Cuomo - $1 Billion Senate proposal- $ 1.3 Billion Assembly proposal - $ 1.8 Billion

Tax Cap 2017- 2018 - 1.26% NYSUT proposal – 2% or CPI whichever is greater Eliminate Supermajority – 60% vote Allow for exemptions Senate- Make Tax cap permanent and extend to NYC Assembly - requires PILOTs and BOCES Capital to be exempt from the tax cap, as well as establishing a zero percent minimum cap, to prevent negative tax caps.

Require Charters hold same % of reserves as public schools. Charter Schools NYSUT – Greater financial oversight and ensure Charters appropriately educate ELL, students w/ disabilities, etc. Require Charters hold same % of reserves as public schools. The Senate accepts the Executive Budget proposal to unfreeze the charter school tuition formula, (estimated cost of $120 million), provides statewide building aid (estimated cost of $103 million) to the charter industry and eliminates the statewide cap on charter schools. The Senate proposal does not include any transparency or accountability measures for the charter industry The Assembly puts forth a number of proposals that seek to impose some level of transparency, fairness and accountability upon the charter school industry.

Teachers’ Centers ( Nassau TRACT) NYSUT- restore funding to 2008-09 level $40 million Mentor Teacher Inter Program ( MTIP)- $10 Million Increase National Board Certification- $ 1 Million Cuomo- Eliminate $14.6 Million for Centers MTIP- $2 million $368,000 for National Board Certification Senate- ‘crickets’ Assembly -$14.6 Million

School Vouchers and Tax Credits The Senate proposes the “Education Affordability Act,” which would provide tax credits made to local educational organizations and not-for-profits, would create a tax credit for parents who educate their children at home, and would provide a tax credit for educators who purchase supplies. Over three years, the tax credit would cost the state $675 million The Assembly – ‘crickets’

Retirees and NYSHIP IRMAA Both the Senate and Assembly rejected the Executive Budget proposals that sought to eliminate the reimbursement of the Income Related Monthly Adjustment Amount (IRMAA), as well as the proposal to institute a freeze in Medicare Part B premium support, and instead restores $5.4 million to cover these costs. NYSHIP Both the Senate and Assembly rejected the Executive Budget proposal to implement differential health care premiums based on years of service, and instead restores $3.4 million to cover these costs.

How to raise revenues-Millionaire’s Tax The Fiscal Policy Institute found that “New York households with incomes under $100,000 pay higher effective state and local tax rates, ranging from 10.4% to 12%, than the richest 1% of households, who pay 8.1%.” NYSUT urges the Legislature to pass the Assembly’s progressive tax plan for the state’s highest earners which would raise $5.6 billion in new revenue annually to support public education, health care and infrastructure improvements.

How to raise revenues-Millionaire’s Tax The Assembly proposes an extended and expanded income tax surcharge on the state’s highest earners, and establishes four new brackets with the highest bracket at 10.32 percent for incomes over $100 million. The Senate proposal does not address a personal income tax surcharge.

Close the carried interest loophole How to raise revenues- Close the carried interest loophole NYSUT fully supports closing the “carried interest” loophole, which allows partners at private equity firms and hedge funds pay a greatly reduced federal tax rate on much of their income, by declaring it to be capital gains. By raising state income taxes on private equity and hedge-fund partners who live in New York, making it equal to the tax savings they receive from using the loophole at the federal level, it is estimated that New York State would receive over $3 billion.

Close the carried interest loophole How to raise revenues- Close the carried interest loophole The Assembly proposal does not address the carried interest loophole. The Senate proposal does not address the carried interest loophole.

Revenue enhancers we must fight for Millionaire’s tax- $5.8 Billion Close the carried interest loophole - $3.5 Million

“All hands on deck! ” The state budget will be approved by Friday. Now is the time to contact your state senator. Stress the Millionaire’s Tax and carried interest loophole. View the complete 2017-18 Summary of Senate and Assembly One-House Budget Bills on our web site. Find your senator on our website