2008-09 NEW YORK STATE EXECUTIVE BUDGET
EDUCATION, LABOR AND FAMILY ASSISTANCE
ARTICLE VII LEGISLATION
MEMORANDUM IN SUPPORT

CONTENTS

MEMORANDUM IN SUPPORT

A BUDGET BILL submitted by the Governor in

Accordance with Article VII of the Constitution

AN ACT to amend the education law, in relation to regents’ standards and academic performance (Part A); to amend the education law, in relation to authorizing the commissioner of education to expend money for formula grants to public library systems in the 2008-09 state fiscal year, technology equipment apportionment, apportionment for the establishment of cooperative educational services, contingency budgets, apportionment of public moneys to certain school districts, the universal pre-kindergarten program, the school tax relief aid program, prescribed payments for the STAR program, the teachers of tomorrow program, special apportionments, duties regarding Indian children, committee for preschool education administration and evaluations, county contributions for preschool special education; to amend chapter 756 of the laws of 1992, relating to funding a program for work force education conducted by the consortium for worker education in New York city, in relation to certain reimbursements and the effectiveness of such chapter; to amend chapter 169 of the laws of 1994, relating to certain provisions related to the 1994-95 state operations, aid to localities, capital projects and debt service budgets, in relation to the effectiveness thereof; to amend chapter 82 of the laws of 1995, amending the education law and certain other laws relating to state aid to school districts and the appropriation of funds for the support of government, in relation to the effectiveness thereof; to amend chapter 472 of the laws of 1998, amending the education law, relating to the lease of school buses by school districts, in relation to the effectiveness thereof; to amend chapter 88 of the laws of 2000, amending the tax law and other laws relating to authorizing the accelerated payment of certain state apportionments to the city school districts of the cities of Buffalo and Yonkers, in relation to use of reserve funds in the city of Buffalo; in relation to apportionments for school bus driver training; in relation to apportionment of monies appropriated for the support of public libraries; to provide special apportionment for salary expenses; to provide special apportionment for public pension expenses; in relation to suballocation of certain education department accruals; in relation to purchase of medical and health services by the city school district of the city of Rochester; and in relation to magnet school setasides; to repeal paragraph f of subdivision 5 of section 1950 of the education law relating thereto; and providing for the repeal of certain provisions upon expiration thereof (Part B); to amend the public health law, in relation to requiring the department of health to develop media health promotion campaigns to communicate positive correlations between health, physical activity and academic performance; to require the department of health to identify and promote best practices in communities to support healthful nutritional choices; to require the departments of education and health to provide technical assistance to schools in complying with nutritional standards; to amend the education law and chapter 537 of the laws of 1976, relating to paid, free and reduced price breakfast for eligible pupils in certain school districts, in relation to establishing nutritional standards for food and beverages available in schools, requiring school wellness policies, expanding the school breakfast program and breakfast and lunch state subsidies; and to amend the agriculture and markets law, in relation to nutritional and dietary standards (Part C); to amend the education law, the state finance law and the public authorities law, in relation to contracts and purchases made by the state university of New York and the city university of New York; in relation to approval by the state comptroller of certain contracts entered into by the state university of New York; in relation to permitting purchasing through the office of general services by certain not-for-profit corporations; in relation to transfer and inter- change of funds; in relation to dormitory authority financing of certain housing facilities; and in relation to the delivery of health care services by state university health care facilities (Part D); to amend the state finance law, in relation to the state lottery fund; and to amend the tax law, in relation to the division of the lottery (Part E); to amend the education law, in relation to restrictions on eligibility to receive awards and loans; and to repeal certain provisions of such law relating thereto (Part F); to amend the education law, in relation to credit card transactions processed for the payment of fees collected for the licensure of physicians (Part G); to amend the education law, in relation to the student lending accountability, transparency and enforcement act; and to amend the state finance law, in relation to the student lending education account (Part H); to amend section 17 of chapter 31 of the laws of 1985, amending the education law relating to regents scholarships in certain professions, in relation to the regents professional and regents health care professional opportunity scholarships (Part I); to amend the labor law and the executive law, in relation to the converting of state employment relations board members salary to per diem (Part J); to amend chapter 62 of the laws of 2003 amending the state finance law and other laws relating to authorizing and directing the state comptroller to loan money to certain funds and accounts, in relation to extending the statutory authorization and the rules governing contributions to the unemployment insurance interest assessment surcharge fund (Part K); to amend the education law, in relation to establishing a university capital projects review board (Part L); to amend the tax law, in relation to default collection of educational loans by the higher education services corporation (Part M); to amend the education law, in relation to tuition awards for veterans (Part N); to amend the education law, in relation to optional retirement programs for employees of the state university of New York, the city university of New York, and the state education department (Part O); to repeal section 3 of chapter 617 of the laws of 2007, amending the education law relating to eliminating the mandatory contribution for members in the optional retirement program, relating thereto (Part P); to amend the tax law, in relation to allowing offsets taken from “Middle Class STAR” rebates (Part Q); to amend the tax law and the administrative code of the city of New York, in relation to the New York city school tax credit and to establish a new tax rate for city taxable income (Part R); to amend the real property tax law, in relation to the basic “Middle Class STAR” rebate program (Part S); to amend the labor law, in relation to the state employment relations board imposing a fee for arbitration services (Part T); to amend the executive law and the social services law, in relation to juvenile detention; and to repeal certain provisions of the executive law relating thereto (Part U); to amend the tax law and the social services law, in relation to the wage reporting system (Part V); to amend the real property tax law and the education law, in relation to improving the efficacy of the STAR exemption (Part W); to amend the social services law, in relation to increasing the standards of monthly need for aged, blind and disabled persons (Part X); to amend the social services law, in relation to reimbursement and advances by the state (Part Y); to amend the social services law, in relation to the pass-through, disregard and assignment of support for persons applying for or in receipt of public assistance, and collection of a twenty- five dollar annual service fee for child support enforcement services furnished to certain persons receiving such services (Part Z); and to direct the commissioners of the offices of temporary and disability assistance, and children and family services to provide public access to information on certain disbursements (Part AA)

PURPOSE:

This bill contains provisions needed to implement the Education, Labor and Family Assistance portions of the 2008-09 Executive Budget.

This memorandum describes Parts A through AA of the bill which are described wholly within the parts listed below.

Part A – Strengthen school district accountability requirements under the Contracts for Excellence, enhance services and incentives for students, and ensure continued local contribution to education.

Purpose:

This bill would require school districts to be held accountable for expenditure of significant increases in foundation aid and other categories of school aid provided during the 2008-09 State fiscal year, enhance services for students with limited English proficiency, establish a demonstration program for successful students, and ensure a continued local contribution to education.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill would extend the requirement enacted in the 2007-08 Budget that school districts receiving significant State aid increases, which have at least one school identified as having deficient performance, enter into a Contract for Excellence, guaranteeing that additional aid will be spent on approved programs proven to improve student achievement.

Fifty-five school districts statewide, including the Big Five, were required to enter into a Contract for Excellence in 2007-08. This bill would require those districts to file updates to their Contracts for two additional school years. Contract for Excellence updates must account for the same amount of expenditures on approved activities that were required when the Contract was first filed, and must specify how additional aid amounts (above a 3% increase) received for the current year will be spent on new or expanded approved activities. School districts can spend up to 15% of such increases on experimental programs, and up to 25% on maintenance of existing programs, subject to approval by the State Education Department.

Any school districts that were not required to file a Contract for Excellence, and that receive an increase of at least 10% or $15 million for the 2008-09 school year or thereafter, would be required to file a Contract for Excellence, and to update such Contract for two additional school years. This bill adds charter school transition aid and the portion of an academic achievement grant available for operating support to the categories of aid that must be included in the Contract or any Contract update. In addition, the range of approved expenditures is expanded to include activities focused on students with limited English language proficiency, and the bill clarifies that construction and rehabilitation of structures are not acceptable Contract activities.

This bill would exempt school districts from the Contract for Excellence requirement if all deficient schools made “Adequate Yearly Progress” in the base year, or if the deficient performance of their schools does not persist for at least two years. Districts in need of improvement that are not otherwise subject to the Contract for Excellence requirement would be required to redirect resources for use on programs that qualify for Contract for Excellence expenditures.

This bill also requires the Commissioner of Education to annually evaluate the effectiveness of Contract for Excellence expenditures.

In addition to strengthening the Contract for Excellence provisions, this bill requires the Commissioner of Education to develop standards of excellence to be used to assess the performance of school leaders and schools. Such assessments shall be presented in school leadership report cards and school progress report cards, which will be made public.

This bill further requires the Commissioner of Education to develop guidelines for enhancing services provided to students with limited English proficiency, and to establish eligibility standards for incentive grants to improve services to such students. In addition, this bill establishes a demonstration program in Syracuse, which guarantees payment of tuition and fees at the State University of New York or the City University of New York for any student who graduates in 2008-09 or thereafter and who met the regents’ English language arts and mathematics standards in both seventh and eighth grades.

To ensure continued local contribution to school funding, this bill amends the maintenance of effort requirements for Buffalo, Syracuse, Rochester and Yonkers to ensure that funds from county sales tax revenues are included in establishing the level of funding that these cities are required to maintain. However, if the county decreases the amount of sales tax revenues provided to the city, the city is allowed to reduce the amount of sales tax revenues it contributes to the school district by the same proportion.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget as it will ensure that significant foundation and other school aid increases are utilized for efforts targeted to improve student performance.

Effective Date:

This bill would take effect immediately.

Part B – Update enhancements and revisions to School Aid formulas and make other changes necessary to implement the Four-Year Educational Investment Plan.

Purpose:

This bill contains various provisions necessary for implementation of the education portion of the 2008-09 Executive Budget.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill updates, enhances and revises School Aid formulas and makes other changes necessary to implement the Four-Year Educational Investment Plan.

Foundation Aid: This bill would amend the Education Law to include several changes to the Foundation Aid formula created in 2007-08. The Education Law would be amended to include:

• Modifications to State Sharing Ratio: In order to target greater aid to high need districts, modifications are proposed to increase the ratio for High Needs Districts by 5 percent, conform the inclusion of Adjusted Gross Income in the ratio calculation to the current use of Actual Valuation, and revert one of the ratio choices available to districts to a ratio originally used in State operating aids.
• Reduction in the Phase-in Factor from 42.5 Percent to 37.5 Percent: For 2008-09, school districts would receive 37.5 percent of the difference between the 2006-07 base year amount and 2010-11 Foundation Aid.
• Change in Minimum and Maximum Increases: The minimum annual Foundation Aid increase would be 2 percent, and the maximum would be 15 percent.
• Foundation Aid Set-asides: This bill would continue provisions enacted in 2007-08 to ensure that portions of Foundation Aid to particular school districts are used for specified purposes including the support of magnet schools and teacher support.

High Tax Aid: This bill would amend the Education Law to create a new High Tax Aid formula that would distribute aid on an equalized basis to individual school districts based on income wealth per pupil, residential tax levy compared to adjusted gross income, and expenditure per pupil.

Universal Prekindergarten Program: This bill continues the expansion of Universal Prekindergarten (UPK) by amending the Education Law to establish a formula that would provide State funding to support the UPK program in 2008-09 and subsequent years. The bill would allow school districts to target UPK expansion to English language learners and students with disabilities. In addition, the bill strengthens reporting requirements to ensure that the UPK funding is used effectively.

Board of Cooperative Educational Services (BOCES) Aid: The BOCES Aid formula would be amended to conform to the State Sharing Ratio, which reflects school district income and property wealth per pupil. This bill would also amend the Education Law to include modifications to phase-in a lower minimum aid reimbursement share over a three-year period.

New York City Academic Achievement Grant: This bill would amend the Education Law to establish the New York City Academic Achievement Grant as two grants totaling $179 million. These grants will be available for operating expenses, if not required to offset additional expense-based aid claims.

Building Aid: This bill would amend the Education Law to align Building Aid reimbursement for New York City with other school districts and modify the Building Aid formula to conform school districts’ Building Aid Ratios to their current wealth ratios.

Charter School Transitional Aid: This bill would amend the Education Law to exclude the New York City school district from being eligible to receive Charter School Transitional Aid.

Special Services Aid: This bill would amend the Education Law to increase reimbursement for the non-BOCES component Special Services Aid.

County Preschool Special Education Cap: This bill would limit the annual growth in preschool special education costs for counties outside of New York City to 4 percent, with the State assuming the remainder of the growth.

Special Education: This bill would amend the Education Law to better align programmatic and fiscal responsibility for preschool special education by allocating a portion of the costs associated with Committees on Pre-School Special Education (CPSE) administration and evaluations to school districts.

Other Miscellaneous Provisions: Other provisions of this bill would make various changes to the Education Law, miscellaneous school aid provisions and other education programs. These changes include:

• Buffalo Reserve: This bill would allow the Buffalo City School District to use an existing fiscal stabilization reserve to achieve recurring savings as part of a new collective bargaining agreement with school district employees.
• Supplementary State Aid for Public Library Systems: This bill would reduce supplementary State aid for public library systems by $5 million from 2007-08 levels and would amend the distribution formula appropriately.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget.

Effective Date:

This bill takes effect April 1, 2008, except that selected provisions take effect immediately or on other specified dates.

Part C – Healthy Schools Act: Enhance school nutrition standards and increase State reimbursement to school districts to help support the costs of purchasing healthier food options.

Purpose:

This bill would require the State Education Department (SED), the Department of Health (DOH), and the Department of Agriculture and Markets to establish nutritional and dietary standards for foods and beverages sold, served or offered in elementary and secondary schools. In addition, school districts would be required to establish a school breakfast program in middle schools and high schools that participate in the Federal School Lunch Program, and to develop local school wellness policies that would ensure community involvement in creating healthier schools.

This bill would also increase access to and affordability of healthy school meals by increasing the State subsidy on reduced priced meals, effectively making these meals free to eligible students. Finally, recognizing the potential cost associated with offering healthy food options, this bill would increase the State subsidy on all meals effective October 1, 2009.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill would amend State law to: (1) improve nutritional and dietary standards for foods and beverages available in schools; (2) increase access to and affordability of healthy meals, including breakfast; (3) provide additional training and technical assistance to schools in complying with nutritional standards; and (4) require school districts to file local school wellness policies with SED. Specifically:

• By no later than July 31, 2008, this bill would require the Commissioner of Health to recommend nutritional and dietary standards to the Commissioner of Education on food and beverages sold, served or offered on school grounds.
• Effective October 1, 2008, this bill would increase the State subsidy by 25 cents on reduced priced meals, permitting these meals to be provided at no cost to eligible students.
• By no later than December 31, 2008, this bill would require the Commissioner of Education to promulgate regulations establishing nutritional and dietary standards for food and beverages sold, served or offered on school grounds.
• By no later than February 1, 2009, and every five years thereafter, this bill would require the Commissioner of Education to report to the New York State Board of Regents, the Legislature and the Governor on the results of an assessment of the current level of physical activity and nutritional instruction in all elementary and secondary schools.
• Effective July 1, 2009, this bill would require that all school districts participating in the National School Lunch Act or the Child Nutrition Act file a local school wellness policy with SED.
• Regulations promulgated by SED, with input from DOH and the Department of Agriculture and Markets, would take effect no earlier than September 1, 2009.
• Beginning October 1, 2009, this bill would increase the State subsidy on all school meals to help support the costs of purchasing healthier food options.
• By no later than September 1, 2011, this bill would require that all middle schools and high schools participating in the National School Lunch Program offer a school breakfast program.
• By no later than December 15, 2011, and once a year thereafter, this bill would require SED, in collaboration with DOH and the Department of Agriculture and Markets, to report to the Legislature and the Governor on the impact of nutrition standards on the health of New York’s students.

Currently, school districts that participate in any program authorized by the National School Lunch Program are required to comply with federally mandated minimum nutrition standards. In addition, the Education Law prohibits the sale of certain “sweetened foods” until after the end of the last meal period of the school day; requires physical education programs; and requires that all elementary schools and certain high-need middle schools that participate in the National School Lunch Program establish a breakfast program.

Recognizing the epidemic of obesity in children, this bill would create a healthier school environment by requiring State agencies with expertise in childhood nutrition and education to establish nutritional standards for food and beverages sold, served or offered in New York’s elementary and secondary schools. The bill would also require schools to consider new ways to increase student physical activity, help students learn to make appropriate nutritional choices, and promote additional changes for healthier schools.

The bill requires DOH, in consultation with SED and the Department of Agriculture and Markets, to develop recommendations for nutritional and dietary standards for foods and beverages sold, served or offered in elementary and secondary schools. SED will be responsible for promulgating regulations based on the recommended standards. These regulations will apply to school districts, private schools that participate in any program authorized by the National School Lunch Program or the Child Nutrition Act of 1966, boards of cooperative educational services, charter schools and schools operating under Articles 83, 85, 87 and 88 of Education Law.

To ensure that healthy food is served both inside and outside of school cafeterias, the regulations would cover foods and beverages sold, served or offered by any source, including school stores, vending machines and school cafeterias. If schools offer meals, they must: (1) offer a meat alternative and vegetables that are not fried at lunch, and fruit with no added sweeteners at both breakfast and lunch; (2) ensure that 50% of grain products offered over a school week are whole grain products; and (3) ensure that entrees sold separately from the school meal are the same as, or nutritionally comparable to, the entrees sold as part of the school meals. In addition, the bill prohibits the sale of candy, soda, gum and other sweetened foods in schools at any time of day.

The regulations and other restrictions in the bill would not apply to items purchased off school grounds for personal consumption or for classroom activities or celebrations. Nor would the regulations apply to food and beverages sold, served or offered at after-school activities attended by both adults and students, such as concerts or sporting events.

In addition to promulgating nutritional standards, SED would be required to conduct and report on an assessment of the physical education and nutrition instruction provided in schools throughout the State. This assessment would evaluate compliance with current physical education standards and would examine whether schools offer a variety of activities designed to promote physical fitness as part of a healthy lifestyle.

In order to ensure that more students receive a daily breakfast, this bill would require school districts that participate in the National School Lunch Program to establish a school breakfast program for middle school and high schools. This is already a requirement for elementary schools and in all schools which have a certain proportion of children who are eligible for reduced priced lunches. Expanding this requirement to middle and high schools is important because evidence shows that students of all ages have better academic performance, fewer disciplinary outbursts and fewer absences if they eat a healthy breakfast.

This bill amplifies Federal provisions by requiring more districts to develop wellness policies and expanding the group of people involved in creating these policies. Local school wellness polices must address a variety of child health issues related to the school environment, such as whether students are provided with sufficient time to eat breakfast and lunch and how to increase opportunities for physical activity. Schools are required to file their wellness policies with the SED each year. In addition, the policies must be made available to DOH upon request to allow DOH to assist schools in creating a healthier environment.

To increase access to and affordability of healthy school meals, this bill provides an increase in the State subsidy for reduced priced meals, effective October 1, 2008, to permit these meals to be served at no cost to eligible students. In addition, this bill increases the State subsidy for all meals served at school, starting with the 2009-10 school year, to reflect costs associated with healthier food options.

Finally, this bill enhances DOH’s responsibilities under the Childhood Obesity Prevention Program by requiring DOH to engage in media promotions, community programs and collaboration with various nutrition and physical education professionals, including the New York State Comprehensive Care Centers for Eating Disorders, all in an effort to improve nutrition for children and adolescents.

A similar Governor’s Program Bill was introduced during the 2007-08 legislative session. In addition, both the Senate and the Assembly passed different bills during the 2007-08 session that addressed some elements of the Governor’s Program Bill.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget which includes an increase of $5.0 million in SFY 2008-09 to fund additional State reimbursement for school meals. When fully implemented in 2010-11, there will be an additional $37.1 million in State support to schools for school nutrition.

Effective Date:

This bill is effective immediately. However, provisions of the bill will become operational on various dates. For example regulations pertaining to nutritional standards cannot take effect before September 1, 2009, and schools impacted by the breakfast requirement will not be required to offer breakfast until September 1, 2011.

Part D – Enhance regulatory flexibility for SUNY and CUNY.

Purpose:

To provide enhanced flexibility for the State University of New York (SUNY) and the City University of New York (CUNY) in the areas of procurement and property management.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The Commission on Higher Education’s recent Preliminary Report to the Governor recommended that the regulatory reforms enacted after the 1985 report, The Challenge and the Choice, be expanded so that New York’s public universities are better equipped to compete effectively, on a par with peer institutions of other states.

This legislation would effectuate the specific regulatory recommendations put forth by the Commission.

First, this bill amends the Education Law and the State Finance Law to permit SUNY and CUNY to purchase goods and services without prior approval by any state agency. Such transactions would remain subject to post-audit review by the Comptroller.

Second, the bill adds a new provision to the Education Law governing the sale or exchange of real or personal property. The SUNY Board of Trustees is authorized to sell or exchange any personal property without prior approval by any state agency. Sales or exchanges of real property could be made for fair market value with the approval of the Director of the Budget, and dispositions of real property not subject to fair market pricing would be sold pursuant to regulations similar to those that govern such sales by public authorities. The Board would be required to provide an annual report of all dispositions of real property to the Comptroller, Director of the Budget and the Legislature.

Third, this bill amends the State Finance Law to allow not-for-profit organizations affiliated with SUNY to participate in the centralized contracts maintained by the Office of General Services.

Fourth, this bill increases the appropriation amounts that can be interchanged by SUNY’s Board of Trustees.

Fifth, this bill authorizes SUNY to lease lands to private or public entities for purposes of construction or rehabilitation, and amends the Public Authorities Law to make SUNY’s affiliated not-for-profit corporations eligible to obtain financing through the Dormitory Authority of the State of New York.

Sixth, this bill broadens SUNY’s authority as a health care provider to permit participation in joint ventures. The bill further provides contracting flexibility to SUNY’s health care facilities, but requires annual reporting on all such contracts.

Seventh, this bill amends the Education Law to allow the State University Construction Fund to establish guidelines for procurements that are consistent with the standards that apply to public authorities. The bill also authorizes the State University Construction Fund to use alternative construction delivery methods.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget to effectuate cost savings through more efficient administration by SUNY and CUNY.

Effective Date:

The bill is effective immediately.

Part E – Monetize the Lottery to support students attending primary, secondary and higher education institutions in New York State.

Purpose:

This bill amends the State Finance Law and the Tax Law to provide a source of predictable multi-year funding for grades K-12 and for institutions of higher education through monetization of the State Lottery.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends the Tax Law to authorize the Director of the Lottery to enter into a transaction under which the State will receive advance payment in return for receipt of future Lottery revenues. Revenue from video lottery gaming would not be included in this transaction. Monetization of the Lottery is intended to provide a steady stream of revenue to support current funding levels for elementary and secondary education, as well as an endowment for targeted investments in higher education as recommended by the Commission on Higher Education. The specific terms and conditions of the monetization shall be determined by a chapter of the laws of 2008.

This bill amends the State Finance Law to establish two separate funds: the K-12 Trust Fund and the Higher Education Endowment. The Comptroller would be the sole trustee of the funds, and would be authorized to invest the principal amounts deposited in these funds as a result of the monetization of the Lottery or from other sources. Annual disbursements would be made to support educational purposes. The bill guarantees that the current level of funding for primary and secondary education based on Lottery revenues would be maintained, and increased annually by an appropriate growth factor.

The proposal does not amend or otherwise affect the authority of the Division of the Lottery to regulate the conduct of games of chance. It is intended that all employees of the Lottery would be provided with job protections when monetization occurs.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget because additional funding is necessary to implement recommendations of the Higher Education Commission to improve the quality of the State’s colleges and universities and to ensure continued funding of primary and secondary education.

Effective Date:

The bill is effective immediately.

Part F – Modify the Tuition Assistance Program (TAP) to reform eligibility criteria.

Purpose:

This bill modifies the award eligibility parameters – provided in Education Law §661 – for the Tuition Assistance Program (TAP) to establish parity between students who default on Federal Family Education Loan Program (FFELP) loans guaranteed by the Higher Education Services Corporation (HESC) and students who default on FFELP loans not guaranteed by HESC and loans made under the William D. Ford Direct Loan Program (Direct Loan).

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends Education Law § 661 to eliminate TAP eligibility for students in default on FFELP loans and Direct Loans, regardless of guarantor.

A guarantor is a state or private non-profit entity that has an agreement with the Federal Department of Education to administer FFELP and the Direct Loan Program. HESC is a guarantor, and has the largest share of the New York State’s $5 billion guaranteed student loan market. However, nearly one-quarter of the New York market is served by other guarantors.

Under current law, TAP program awards are made to full-time undergraduate students, with minimum awards of $500 and maximum awards of up to the lesser of tuition or $5,000.

Currently, students in default on FFELP loans and Direct Loans guaranteed by HESC are ineligible for TAP awards, while students in default on loans guaranteed by other guarantors are not ineligible for such awards. This bill would render all students in default ineligible for TAP awards, regardless of the guarantor. In addition, students who fail to comply with the terms of a service condition imposed by a TAP award or fail to follow requirements for repayment of a TAP award would be ineligible for a further TAP award as long as the failure to comply or repay continues.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget, which assumes $2.59 million in SFY 2008-09 savings resulting from the elimination of TAP awards to approximately 1,600 students who are estimated to be in default on federal student loans guaranteed by a guarantor other than HESC.

Effective Date:

This bill takes effect April 1, 2008.

Part G – Authorize the State Education Department to recoup the cost of processing credit card transactions for certain physician license renewals.

Purpose:

This bill would authorize the State Education Department (SED) to retain the administrative costs associated with the processing of online biennial physician license renewals.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Education Law § 6524 authorizes SED to collect all fees required for physician licensure, including a $600 biennial registration fee that must be deposited into the Department of Health’s Office of Professional Medical Conduct (OPMC) account. This bill would add language to authorize SED to retain the two percent (or $12) credit card transaction fee charged for each biennial registration payment made online prior to deposit of the fees into the OPMC account.

Authorizing SED to retain the actual costs incurred for accepting such online payments would obviate further absorption of operational costs on behalf of OPMC.

Budget Implications:

The OPMC account receives nearly $24 million annually for biennial registration fees. While this bill would have no General Fund impact, it would reduce funds transferred to the OPMC account by an estimated $500,000 in 2008-09.

Effective Date:

This act shall take effect on April 1, 2008.

Part H – Enforce student lending standards in accordance with the Student Lending Accountability, Transparency and Enforcement (SLATE) Act.

Purpose:

This bill would authorize the State Education Department (SED) to enter into a memorandum of understanding (MOU) with the State Attorney General for support of ordinary costs and expenses resulting from implementation of the Student Lending Accountability, Transparency and Enforcement (SLATE) Act.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The SLATE Act was enacted by Chapter 41 of the Laws of 2007 to protect students and parents from financial exploitation resulting from conflicts of interest between lending institutions and public and private colleges and universities. The law was proposed by New York Attorney General Andrew Cuomo as a response to abuses uncovered by his investigations into the student loan industry.

The SLATE Act gives SED sole responsibility for enforcing its student lending standards and educating students and parents on the educational loan process. It outlines a college loan “code of conduct” to be followed by lenders and colleges, prohibiting lenders from making gifts to colleges, universities or their employees in exchange for any advantage in loan activities. The law further authorizes SED to assess, collect and deposit revenues generated from penalties for violations into a student lending education account.

Current law does not provide a mechanism for supporting costs incurred by SED in administering the SLATE Act. This bill authorizes SED to enter into an MOU with the Attorney General to implement the Act, and requires that the MOU include appropriate means of supporting ordinary costs and expenses incurred by SED in implementing the law.

Budget Implications:

This bill is necessary to implement the 2008-09 Executive Budget, which includes a $1.2 million Special Revenue-Other appropriation and a $1.0 million Special Revenue-Other Local Assistance appropriation.

Effective Date:

This bill shall take effect on April 1, 2008.

Part I – Extend the Regents Professional Opportunity and Regents Health Care Professional Opportunity Scholarship programs for one year.

Purpose:

This bill extends the Regents Professional Opportunity and Regents Health Care Professional Opportunity Scholarship programs through the 2008-09 academic year.

Summary of Provisions, Existing Law, Prior Legislative History and Statement in Support:

This bill amends § 17 of Chapter 31 of the Laws of 1985 to extend statutory authorization for these two scholarship programs for one year.

The Regents Professional and the Regents Health Care Professional Opportunity Scholarships were established in 1985 to encourage diversity among practitioners of certain licensed professions in New York State, while addressing critical shortages of such professionals in targeted geographic areas across the State through service requirements that are a condition of accepting these scholarships. The professions covered by these programs include architects, doctors, dentists, physical therapists and midwives. Up to 100 new Health Care Professional Opportunity and 220 Professional Opportunity Scholarships are authorized to be awarded each year.

Authorization for these scholarship programs has been extended periodically since their establishment in 1985.

By extending these two scholarship programs, New York State can continue to promote diversity within the aforementioned professional fields. Also, through the use of service requirements, the State can help ensure access to high quality professionals in shortage areas throughout the State.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget, which assumes $1.0 million in costs in SFY 2008-09.

Effective Date:

This bill takes effect immediately.

Part J – Change the pay basis of the State Employment Relations Board (SERB) members from full time annual salary to per diem.

Purpose:

This bill would change the pay basis of the four SERB Members who do not serve as chair from full time annual salary to per diem.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill would amend Labor Law § 702, and Executive Law § 169 to change the pay basis for those serving as Board Members for SERB (excluding the Chairperson). Currently, the salaries of SERB Members are set in statute at $90,800 annually. This proposal would set the Members’ per diem rate at $350, which is consistent with the per diem rates paid to members of the Industrial Board of Appeals. Since the current demands of SERB do not require a full time presence of all the Members, this proposal would more closely align the work efforts of the Members with their compensation. Any reduced expenditures will be a direct savings to the General Fund.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget, which assumes an estimated Financial Plan savings of $154,000 for SFY 2008-2009 and $308,000 for subsequent years.

Effective Date:

This bill takes effect October 1, 2008.

Part K – Extend the Unemployment Insurance (UI) Interest Assessment Surcharge.

Purpose:

This bill would extend, until December 31, 2009, the statutory authorization for the Department of Labor (DOL) to assess a surcharge on employers for payment of interest due on UI benefit loans from the Federal government. This authorization would be extended until December 31, 2009.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Section 31 of Chapter 62 of the Laws of 2003 authorized DOL to collect a surcharge from employers for the purpose of paying interest on UI benefit loans from the Federal government. Section 30 of Chapter 62 of the Laws of 2003 established the interest assessment surcharge fund in order to receive these assessed surcharges from DOL.

The original expiration date for sections 30 and 31 was December 31, 2006, and was extended by Chapter 641 of the Laws of 2006 to December 31, 2007. This bill would extend the expiration date of sections 30 and 31 to December 31, 2009.

This extension would allow for the collection of a UI interest assessment surcharge from employers in order to pay interest on Federal loans taken to support the UI benefit program. This interest assessment surcharge is not collected unless an economic downturn requires the Department to take out substantial loans to ensure UI Trust Fund solvency. Although the need to take out an extended loan from the Federal government is not anticipated at this time, without this extension DOL would have no mechanism to assess a surcharge should the need arise.

Budget Implications:

If DOL is required to make Federal interest payments and there is no mechanism in place to assess employers for this cost, the State could incur General Fund liabilities or face Federal sanctions.

Effective Date:

This bill would take effect immediately and shall be deemed to have been in full force and effect on and after December 31, 2007.

Part L – Amend the Education Law to establish a University Capital Projects Review Board.

Purpose:

This bill establishes a University Capital Projects Review Board (UCPRB) to review and approve the allocation of capital projects funds from dedicated appropriations supporting strategic initiative projects at the State University of New York (SUNY) and the City University of New York (CUNY).

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends Education Law by adding a new section 361 authorizing the establishment of the University Capital Projects Review Board. The 2008-09 Executive Budget provides $2.56 billion in dedicated capital projects appropriation authority for strategic initiatives at SUNY and CUNY campuses ($1.6 billion and $0.96 billion, respectively). The UCPRB will receive, review and approve or reject schedules of capital projects submitted by the SUNY and CUNY Boards of Trustees, which are supported by these capital appropriations.

This bill provides that the UCPRB will be comprised of three voting members, or their designees: the Director of the Budget, the Temporary President of the Senate, and the Speaker of the Assembly. Additionally, two non-voting members will be appointed to the UCPRB by the minority leaders of the Senate and Assembly.

This bill also provides that, no later than 30 days following the enactment of the 2008-09 budget, the SUNY and CUNY Boards of Trustees will each be required to furnish the UCPRB with a schedule of specific capital projects at SUNY’s State-operated campuses and CUNY’s Senior Colleges for which funding is requested. The total dollar amount of such schedules shall not exceed the amount of available appropriation authority. The UCPRB shall have 45 days from receipt of the aforementioned schedules to approve or deny such requests by unanimous vote. SUNY and CUNY may amend previously submitted project schedules, with the UCPRB having no less than 45 days to approve or deny the amended schedules by unanimous vote. If by 45 days following the receipt of a project schedule or amended project schedule no voting member of the UCPRB has notified the board chairperson in writing of his or her disapproval of the schedule, or the UCPRB has not voted to approve or disapprove the schedule, the UCPRB will be deemed to have approved the schedule.

The UCPRB will provide a transparent, university-driven mechanism for allocating funds to support strategic initiative projects at SUNY and CUNY campuses.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget, as it provides a mechanism of allocation required by “pursuant to a chapter” language included in certain SUNY and CUNY capital projects appropriations.

Effective Date:

This bill takes effect immediately.

Part M – Allow the Higher Education Services Corporation (HESC) to obtain certain information from the Department of Taxation and Finance about borrowers in default on government education loans.

Purpose:

This bill authorizes the Department of Taxation and Finance (“the Department”) to provide certain information to the Higher Education Services Corporation (HESC) in order to enable HESC to engage in educational loan default prevention and collection activities on behalf of the U.S. Department of Education (USDOE). To facilitate its default collection activities, the bill also permits HESC to credit income tax overpayments by borrowers in default on government education loans against the loans’ past-due balances.

Summary of Provisions, Existing Law, Prior Legislative History and Statement in Support:

This bill amends Tax Law § 697 to authorize the Department to provide HESC with the names, social security numbers, addresses, employer names, and amounts of income tax overpayment (if any) of borrowers in default on any education loan owed to the federal or New York state government and being collected by HESC. HESC is currently authorized to receive this information from the Department, but only for persons in default on loans guaranteed by HESC.

Receipt of this data from the Department is necessary for HESC to engage in default prevention and collection activities for Federal student loans not guaranteed by HESC, namely direct Federal educational loans and Federal Family Education Loan Program (FFELP) loans guaranteed by institutions other than HESC. The USDOE recently approached HESC about engaging in default collection activities for residents of New York, New Jersey and Connecticut. This bill is necessary for HESC to participate in this partnership with USDOE.

This bill also amends Tax Law § 171-d to authorize HESC to direct the Department to credit income tax overpayments by borrowers in default on the government education loans being collected by HESC against the loans' past-due balances. HESC and the Department are currently authorized to do this for persons in default on loans guaranteed by HESC.

Finally, the bill adds a new subdivision 6-a to Tax Law § 171-a, requiring the Department and HESC to enter into a cooperative agreement detailing how information obtained by HESC from the Department for default prevention and collection activities shall be utilized.

Budget Implications:

Enactment of this bill is necessary to implement the Executive Budget, which assumes that the expanded default collection activities undertaken by HESC will generate $5 million in new operating revenues for 2008-09 — growing to an estimated $18 million by 2011-12 — to support ongoing student financial aid programs.

Effective Date:

This act takes effect immediately.

Part N – Amend the Education Law in relation to tuition assistance for veterans.

Purpose:

This bill amends Education Law § 669-a to increase tuition assistance benefits for combat veterans discharged under honorable conditions up to the cost of undergraduate tuition at the State University of New York (SUNY), to be used at any college, university or approved vocational program in New York.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends Education Law § 669-a to provide veterans of the hostilities in Vietnam, Afghanistan, and the Persian Gulf, who are discharged under honorable conditions, with tuition assistance benefits equal to either the cost of SUNY undergraduate tuition for New York residents or the actual cost of tuition at any institution of higher education in New York State, whichever is less. The bill provides full-time graduate and undergraduate students with the same benefit and a proportionate benefit to part-time students.

Currently, Education Law § 669-a provides veterans of the hostilities in Vietnam, Afghanistan, and the Persian Gulf with tuition awards up to $2,000 annually for full time study.

By increasing the award to an amount equal to the full SUNY tuition, this bill appropriately recognizes and rewards the bravery, dedication, and service of New York State’s combat veterans. In addition to increasing the amount available under existing law, this bill eliminates the September 1, 2008 sunset date on applications for participation in the current program.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget, which includes $2.0 million in appropriations to support its provisions.

Effective Date:

This act shall take effect on July 1, 2008.

Part O – Expand the Optional Retirement Program investment choices to include mutual funds or companies that distribute mutual funds.

Purpose:

This bill would authorize the State University of New York (SUNY), the City University of New York (CUNY) and the State Education Department (SED) to offer employees participating in the Optional Retirement Program (ORP) the option of investing in mutual funds.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Current law limits investment options for employees enrolled in the ORP to those provided by corporations subject to Insurance Department supervision. This bill amends Education Law §§ 180, 390 and 6250 to provide SUNY, CUNY and SED with the option of expanding investment choices for their ORP employees to include mutual funds offered either directly by investment companies registered with the Securities and Exchange Commission under the Investment Company Act of 1940 or by their third-party distributors.

In addition to expanding employee choice, this bill would provide ORP investment managers at SUNY, CUNY and SED with the same investment options available to the State Comptroller, who manages the retirement investments of most State and local public employees.

Budget Implications:

Enactment of this bill is associated with the implementation of the 2008-2009 Executive Budget, which appropriates funds constituting the State’s contribution to ORP retirement accounts.

Effective Date:

This bill shall take effect immediately.

Part P – Clarify the funding arrangements for the enhanced Optional Retirement Program benefits provided by legislation enacted in 2007.

Purpose:

This bill clarifies the funding source of the enhanced benefits provided by Chapter 617 of the Laws of 2007.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill repeals Section 3 of Chapter 617 of the Laws of 2007.

Chapter 617 of the Laws of 2007 granted enhanced benefits to certain State University of New York (SUNY), City University of New York (CUNY), and community college employees enrolled in the Optional Retirement Program (ORP). Section 3 of Chapter 617 addressed the funding source for the enhanced benefits, but in a manner that is both ambiguous and disruptive of the normal arrangements for funding and processing payment for such benefits. Specifically, Section 3 calls for a portion of the additional benefit to be paid by the “State fringe benefit fund,” but no fund with that name exists. Furthermore, Section 3 requires the New York City pension budget to fund the benefit for all statewide community colleges, a requirement that could significantly impact the successful implementation of the additional benefit.

This bill eliminates the potential for confusion by repealing Section 3. As a result, the benefits provided by Chapter 617 of the Laws of 2007 would be funded from the same source as all other ORP costs – the budgets of SUNY, CUNY, and their respective community colleges.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-09 Executive Budget, which provides funding for the enhanced benefits within the SUNY and CUNY budgets. Without this bill, the existing provisions could disrupt the processing of payments which are scheduled to begin on April 1, 2008. This legislation, which would make clear the source of payment, would avoid any possibility that the enhanced benefits would go unpaid for any period of time.

Effective Date: April 1, 2008

Part Q – Allow offsets against basic Middle Class STAR rebates.

Purpose:

This bill will allow offsets against basic Middle Class STAR rebates for certain debts owed to the State.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The Middle Class STAR Rebate program provides school tax relief for homeowners, with rebate amounts correlated to homeowners’ incomes. This bill will amend the Tax Law to allow offsets for certain debts against basic Middle Class STAR rebates. Such debts include, among other items, delinquent taxes, past-due child support, and certain State overpayments. This would be similar to current offsets of income tax refunds against tax debts, or debts owed to other state agencies.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget because it will increase State revenues by $15 million annually beginning in SFY 2008-09.

Effective Date:

This bill takes effect immediately and applies to basic STAR rebates issued for the 2008-2009 school year and subsequent school years.

Part R – Eliminate the New York City STAR income tax credit for high-income taxpayers and delay a scheduled increase in the credit.

Purpose:

This bill will amend the Tax Law and the Administrative Code of the City of New York to repeal the NYC school tax credit for taxpayers with incomes above $250,000, and delay a scheduled increase in such credit.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Section 1 amends Tax Law § 1310(e)(2) to provide that STAR credit under the New York City personal income tax will be limited to taxpayers with New York adjusted gross incomes not exceeding $250,000 per year, and that credit increases scheduled for tax years 2008, 2009 and after will be delayed until tax years 2009, 2010 and after. It also provides that the $250,000 income threshold will be indexed for inflation beginning in tax year 2010. Section 2 makes corresponding changes to § 11-1706(c)(2) of the Administrative Code of the City of New York. Section 3 provides that the bill will take effect immediately.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget and the State Financial Plan because it will reduce General Fund spending by $60 million in SFY 2008-09, $75 million in SFY 2009-10, $30 million SFY 2010-11, $35 million in SFY 2011-12, and $40 million in SFY 2012-13.

Effective Date:

This bill takes effect immediately.

Part S – Delay for one year the increase in the basic Middle Class STAR rebates.

Purpose:

To delay the increase in Basic Middle Class STAR rebate benefits for one year.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

The Middle Class STAR Rebate Program provides school tax relief for homeowners, with rebate amounts correlated to homeowners’ incomes. The Basic Middle Class STAR rebate amounts, which are calculated for each of three income tiers as a percentage of the 2006-07 basic STAR exemption, are currently scheduled to increase from 60%, 45% and 30% in school year 2007-08 to 70%, 52½% and 35% in school year 2008-09, and to 80%, 60% and 40% for school years 2009-2010 and beyond. This bill will delay these increases by one year.

Budget Implications:

Enactment of this bill is necessary to implement the SFY 2008-09 Executive Budget because it will reduce General Fund spending by $169 million in SFY 2008-09 and $175 million in SFY 2009-10.

Effective Date:

This act takes effect immediately.

Part T – Create a new State Employment Relations Board (SERB) arbitration fee.

Purpose:

This bill would impose a fee of $750 on each party that uses the staff arbitration services of the State Employment Relations Board (SERB). Revenue generated by this fee would be used to offset General Fund costs of operating SERB.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This new bill would amend Labor Law § 702-a to allow SERB to charge a $750 fee per party when providing a staff arbitrator at the request of a party to a labor-management impasse. These fees would be deposited in a Special Revenue account and used to offset General Fund expenses of SERB.

SERB currently performs mediations and staff arbitrations for labor-management grievances and contract negotiation impasses at the request of the parties, and in an effort to promote industrial peace. These services are currently provided free of charge, in contrast to other states that offer similar services at a fee. By allowing SERB to charge for its staff arbitrations, the costs of SERB’s services will be borne by those who benefit from them. This proposal would ensure that the Board has sufficient resources to continue to provide the service to those parties wishing to avail themselves of it.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget, which assumes General Fund savings of $225,000 in the 2008-2009 Financial Plan and $450,000 annually thereafter through SERB cost offsets made possible by the revenues generated by this proposal.

Effective Date:

This bill would take effect October 1, 2008.

Part U – Eliminate State reimbursement for locally administered and operated detention facilities.

Purpose:

To encourage counties to explore alternatives to youth detention by requiring counties to assume full fiscal responsibility for youth placed in detention.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill requires local social services districts to assume the full cost of locally administered and operated secure and non-secure detention facilities, including the cost of detaining alleged and adjudicated persons in need of supervision in foster care facilities in New York City. Under existing law, the State provides 50 percent reimbursement of secure and non-secure detention costs to local social services districts. Additionally, this bill repeals Executive Law § 531(1)(c) which has required the State to annually report on reimbursements and expenditures of each local social services district for youth detention. It also amends Social Services Law § 503 by changing, from quarterly to annually, the submission requirements for youth detainee reports required of local governments.

Requiring local social services districts to assume the full cost of local detention represents an extension of the detention reforms enacted in SFY 2005-06 which led to significant reductions in detention placements for persons in need of supervision. This proposal would generate significant savings for the State while potentially accelerating local investments in diversion strategies that more effectively serve youth.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget, which assumes $35.4 million in SFY 2008-09 savings from elimination of State participation in local detention costs. These savings grow to $59.2 million in SFY 2009-10.

Effective Date:

This bill takes effect April 1, 2008.

Part V – Increase Office of Temporary and Disability Assistance access to Department of Taxation and Finance Wage Reporting System records.

Purpose:

To authorize the Office of Temporary and Disability Assistance (OTDA) to obtain information from the Department of Taxation and Finance’s (DTF) wage reporting system in order to determine the eligibility for Federal funding of children receiving foster care or adoption assistance and to assist in the administration and evaluation of the State’s public assistance programs.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Existing Tax Law permits the Commissioner of Tax and Finance to share Wage Reporting System (WRS) records on employee earnings with OTDA for a variety of purposes, including determining eligibility for public assistance benefits, adjusting child support levels and locating absent parents. To protect the confidentiality of employees’ wage records, existing Tax and Social Services laws restrict the use of such information for other purposes.

This bill would amend Tax Law §§ 171-a and 697 to authorize the Commissioner of Tax and Finance to enter into a cooperative agreement with OTDA for the purpose of providing wage information on former recipients of public assistance, persons responsible for the support of former public assistance recipients, and families whose children have been placed in foster care and adoption. Access to information on former recipients would be limited to three years and six months from the time the person leaves public assistance. OTDA would be authorized to provide this information to local social services districts. References to the sharing of WRS data with the Department of Labor for public assistance work program purposes would be deleted. Finally, the proposal would require OTDA to:

• report on its website on a quarterly basis a summary of public assistance recipient employment outcomes;
• add a provision to its common benefit application, at the time of its next revision, advising applicants that OTDA may obtain wage reporting information regarding applicants for, recipients of and former recipients of public assistance, subject to a three and a half year limitation; and,
• submit to the Legislature and the Governor a report of public assistance recipient employment outcomes using WRS data no later than January 1, 2012.

Similar bills passed the Senate in the 2006 and 2007 legislative sessions. A bill authorizing OTDA to obtain WRS information only for the purpose of the social services districts’ determinations of eligibility of foster children for Federal funding passed the Assembly in 2006.

By authorizing OTDA to access information regarding the wages of families whose children have been placed in foster care or adoption, this proposal would allow local social services districts and the Office of Children and Family Services to determine the eligibility of children for foster care and adoption assistance pursuant to Title IV-E of the Federal Social Security Act. Often, the parents of abused or neglected children are not forthcoming with the financial documentation necessary to make timely and complete eligibility determinations. The availability of separately obtained income data will allow local districts to maximize their receipt of federal revenues, which in turn should result in greater resources being available to serve children in foster care and adoption.

The availability of wage information for former recipients of public assistance would enable OTDA to: (1) assess the ability of this population to maintain permanent employment; (2) evaluate the effectiveness of its public assistance employment and training programs; and (3) assist social services districts in designing programs that will better enable public assistance recipients to obtain and maintain self-sufficiency.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget. The availability of wage reporting data for foster children is projected to generate $6 million to $7 million in additional federal revenue on an annual basis. In addition, the provisions expanding access to earnings information for former recipients would facilitate data collection and program analysis and would assist OTDA in analyzing the effectiveness of current programs and implementing cost-effective program changes.

Effective Date:

This bill takes effect on April 1, 2008.

Part W – Change the STAR “floor” adjustment from 5 percent to 10 percent, and make other changes to improve STAR administration.

Purpose:

This bill increases the “floor” adjustment used in the computation of STAR exemption benefits from 5 percent to 10 percent, and makes various technical changes to enhance the administration of the STAR program.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Section 1 amends Real Property Tax Law § 425(2)(e) to increase the “floor” for annual STAR exemption adjustments from 5 percent to 10 percent.

Section 2 adds a new paragraph (e) to Real Property Tax Law § 425(3) to allow STAR benefits in cases where property is owned by a qualifying limited partnership and is the primary residence of one or more partner(s) who pay the taxes and other costs of ownership of the property. This amendment codifies the decision in Rubinstein v. Office of the Assessor, Town of Clarkstown (NY Sup Ct, Rockland Co, NYLJ Oct 22, 2003), which held that denial of basic STAR exemptions under these circumstances is unconstitutional.

Section 3 adds a new paragraph (d) to Real Property Tax Law § 425(7) to provide that life tenants, vendees in possession, and other beneficial owners of property who qualify for STAR benefits shall be listed as the property owners on assessment rolls, and that the remaindermen, vendors, trustees or other actual owners of property may request duplicate tax bills.

Section 4 amends Real Property Tax Law § 1306-b(2)(b)(ii) to change, from May 1 to August 1, the deadline for local assessors to report property ownership and STAR exemption changes to the Office of Real Property Services.

Section 5 amends Education Law § 2202(2-a)(b) to require school district budget notices to include an estimate of the basic STAR tax savings that would be available to eligible homeowners if the proposed school budget is adopted.

Budget Implications:

Enactment of this bill is necessary to implement the SFY 2008-09 Executive Budget. Increasing the STAR “floor” adjustment will reduce General Fund spending by $110 million in SFY 2008-09.

Effective Date:

This bill takes effect immediately, with section 1 applying to the administration of STAR exemptions on 2008 and subsequent assessment rolls, and section 4 applying to Middle Class STAR rebates issued on and after April 1, 2008.

Part X – Provide Supplemental Security Income Federal Cost of Living Adjustment Pass-Through.

Purpose:

This bill increases Supplemental Security Income (SSI) rates for 2009 by passing through the annual federal Cost of Living Adjustment (COLA) to all SSI recipients and implements the statutorily required COLA on the State SSI supplement for recipients residing in Congregate Care Level 3 facilities.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Social Services Law §§ 131-o and 209 establish specific amounts for the monthly Personal Needs Allowance (PNA) and standard of need for SSI recipients in various living arrangement categories. Each year the federal government enacts a COLA on the federal SSI benefit, and State law must be amended to ensure that accurate payments are made.

The bill sets forth the actual dollar amounts of the 2008 PNA and the standard of need for eligibility and payment of additional State payments. It also authorizes those amounts to be automatically increased in 2009 by the percentage of any federal SSI COLA which becomes effective within the first half of calendar year 2009. Finally, the bill provides an increase, tied to the 2009 federal COLA, to the State supplement portion of the benefit for recipients in Congregate Care Level 3 facilities, as required by existing law.

Legislation to effectuate the annual federal SSI COLA has been enacted annually since 1984. Chapter 57 of the Laws of 2006 provided for a new annual COLA on the State supplement portion of the SSI benefit for residents of Congregate Care Level 3 facilities effective January 2007.

The increases authorized by this bill are anticipated by SSI recipients and congregate care providers alike and help offset rising cost-of-living expenses.

Budget Implications:

The pass through of the federal SSI COLA will have no direct impact on the State Budget. However, the timing of the State supplement COLA for SSI recipients is tied to the implementation date of the federal COLA. The cost of increasing the State supplement for the approximately 12,800 residents of Congregate Care Level 3 facilities is estimated at $3 million in 2008-09, funding for which is included in the State’s Financial Plan.

Effective Date:

This bill takes effect December 31, 2008

Part Y – Modify the public assistance cost shares between the State and counties.

Purpose:

This bill assigns greater fiscal responsibility to counties for their administration of the public assistance program by requiring them to pay a higher percentage of all public assistance costs.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

Under existing law, generally, the State and counties are required to share equally in the cost of public assistance benefits. In the case of families on assistance for less than five years (TANF families), this share is 50 percent Federal / 25 percent State / 25 percent county. In the case of families on assistance for more than five years and for single recipients (Safety Net population), the share is 50 percent State / 50 percent county.

Effective April 1, 2008, this bill would change the cost ratio so that counties pay two percent more and the State pays two percent less for each category of care. In the case of TANF families, the adjusted share would be 50 percent Federal / 23 percent State / 27 percent county. In the case of Safety Net recipients not receiving benefits funded by TANF, the adjusted share would be 48 percent State / 52 percent county.

Federal law mandates a 50 percent work participation rate for all families on public assistance. Although State law allows certain categories of individuals to be excluded from these work requirements, counties have administrative discretion in deciding how narrowly to apply these definitions. It is expected that this shift in financial responsibility may encourage local governments to enhance efforts to help those public assistance recipients who they have deemed unable to work, 111,000 in total, to receive the supportive services they need to make a successful transition to self sufficiency or secure the appropriate government supports, including SSI and Veterans benefits, for any long-term disability.

Budget Implications:

Enactment of this bill is necessary to implement the 2008-2009 Executive Budget, which assumes $40.5 million in related General Fund savings.

Effective Date:

This bill takes effect April 1, 2008.

Part Z – Implement a $25 service fee for “never assistance” cases in which there is an annual collection of $500 or more of child support; increase the child support pass through and disregard from up to $50 to a maximum of $100; and limit prospective assignments to support rights accruing during the period of time a family receives public assistance.

Purpose:

To ensure compliance with the federal Deficit Reduction Act of 2005, this bill authorizes the State to implement a $25 annual fee for “never assistance” child support cases where there are annual child support collections in excess of $500. This bill also increases the child support pass-through disregard from a maximum of $50 to a maximum of $100, and limits prospective assignments to support rights accruing during the period of time a family receives public assistance.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill amends Social Services Law § 111-g to impose a $25 annual service fee on persons receiving child support services who have never received assistance pursuant to Title IV-A of the federal Social Security Act, and for whom at least $500 of child support has been collected during the federal fiscal year. The provisions of this bill related to imposition of the fee have to become law prior to April 1, 2008 in order to be in compliance with the state plan for Title IV-D of the Social Security Act, thereby avoiding lost federal reimbursement and the possibilities of TANF related penalties.

This bill increases the amount of monthly child support that is passed through to a family on public assistance from a maximum of $50 to a maximum of $100, and increases the amount of income that will be disregarded for purposes of determining the need for aid. This provision, which was also authorized, but not required, in the Deficit Reduction Act, would increase the resources available to families on public assistance and could result in greater child support participation by non-custodial parents.

This bill prospectively limits new assignments of any right to child or spousal support, as well as medical support, made in favor of the State and the local social services districts to only the period that a family receives public assistance. This bill will conform State law to new federal requirements and, as a measure of fairness, will allow families to receive the full benefit of support collected from non-custodial parents for the period that they were not receiving public assistance.

Budget Implications:

The $25 annual service fee on “never assistance” cases will generate $4.46 million annually, of which $2.9 million will be paid to the federal government. $1.5 million will be shared equally between the State and the local districts, and used to offset administrative costs of the Child Support Program. Passage of this bill by April 1, 2008 will ensure the State’s compliance with federal mandates for the Child Support Enforcement Program, which is required for continued levels of federal Title IV-D and TANF block grant funding. Actual collection of the fee by OTDA will not begin until late 2008-09.

The first year costs of increasing the pass through disregard are projected at $5.8 million ($3.8 million federal, $990,000 each State and local). The 2009-10 cost is estimated at $11 million ($7.6 million federal, $1.9 million each State and local).

Effective Date:

The fee provisions of this bill take effect April 1, 2008. The pass through and disregard provisions take effect October 1, 2008. The amendments to the assignment of child support rights take effect on October 1, 2009.

Part AA – Establish performance reporting requirements for certain programs in the Office of Children and Family Services and the Office of Temporary and Disability Assistance.

Purpose:

To increase the level of accountability and transparency of various programs, this bill would establish a requirement to track and report on performance data for certain programs in the Office of Children and Family Services (OCFS) and the Office of Temporary and Disability Assistance (OTDA) programs.

Summary of Provisions, Existing Law, Prior Legislative History, and Statement in Support:

This bill would require tracking and reporting of performance data, including but not limited to: award amount; contract period; program site; location served; and spending information for certain programs as determined by the commissioners of OCFS and OTDA and approved by the Division of the Budget. Furthermore, the State agencies responsible for the respective programs would be required to make the reported performance data available on their websites for public review. Under existing law, such requirements apply to a more limited universe of programs. Expanding the programs covered by the reporting requirement would increase the level of accountability and ultimately produce efficiency in the implementation of these programs.

Budget Implications:

The provisions requiring tracking and reporting of performance data would assist OTDA and OCFS in analyzing the effectiveness of current programs and implementing cost-effective program changes.

Effective Date:

This bill takes effect immediately.

The provisions of this act shall take effect immediately, provided, however, that the applicable effective date of each part of this act shall be as specifically set forth in the last section of such part.