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As Governor Cuomo and the Legislature Continue Budget Negotiations – Issues Critical to Manufacturers are in Play

Post: Mar. 22, 2019

Gov. Andrew Cuomo told reporters earlier this week that this year’s state budget negotiations are particularly difficult because of revenue declines, the threat of big federal funding cuts and disputes with lawmakers over spending priorities.  Cuomo said there’s still time to agree on a budget before the April 1 deadline but that this budget may prove to be more difficult than past spending plans.

Here is a brief update on some items being discussed of particular interest to manufacturers include:

  • A provision legalizing and taxing marijuana was dropped after lawmakers couldn’t agree on the details. Cuomo now says it could be taken up after the budget.
  • Cuomo says he won’t sign a budget that doesn’t make the 2 percent local property tax cap
  • The New York State Senate included $750,000 in its one-house budget to sustain the New York State Manufacturing Intermediary Apprenticeship Program (NYSMIAP), an employer-led, public-private pilot program for registered apprentices in manufacturing occupations. The Council of Industry administers the program in the Hudson Valley.
  • A provision to “zero out” the income tax for New York State Manufacturers organized as “pass-through entities is still a possibility as negotiations continue.
  • Both houses of the legislature have backed a provision in the budget calling for prevailing wages to be paid for all projects in the state that receive any state funding. Such a provision would mean dramatic increases in the cost of projects from hospitals to schools to any private project that received economic development assistance. 

Many of these issues were discussed at the Manufacturing Alliance Lobby Day March 6th where more than 50 manufactures from across the state visited with legislators to voice their hopes and concerns.

Council of Industry President Harold King introduced Lt. Governor Kathy Hochul who keynoted the day’s luncheon.  The Lt. Governor has a long history of support for manufacturing especially in the area of workforce development and she is also the Chair Person of the State’s Regional Economic Development Councils. She spoke on the importance of investing in the next generation of manufacturing workers and of the need to continue to support the sector.