General State Charges

Mission

General State Charges include the cost of providing fringe benefits to most State employees and retirees, as well as State litigation expenses, taxes on State owned lands, and payments in lieu of taxes (PILOTs) to local governments.

Budget Highlights

The Executive Budget recommends $2.7 billion for General State Charges. This is a decrease of $269 million from the 2011-12 budget. This amount will be augmented by $1.1 billion initially appropriated to the State University of New York for employee fringe benefits. The decrease primarily reflects reduced employee health insurance spending resulting from negotiated collective bargaining changes, and reduced pension, Social Security and Medicare payroll costs due to a declining workforce. A decrease in spending would also result from proposed changes to maximization of Federal Medicare Part D revenues and the prepayment of certain outstanding pension obligations. Additionally, the Executive Budget would create a new pension tier for new State and local government employees.

Major budget actions include:

• A Tier 6 retirement benefit applicable to new public employees.
  --A voluntary defined contribution plan would be available to new State and local government employees. This plan would provide required employer contributions of four percent of salary, provide matching employer contributions of up to an additional three percent, afford public employers financial stability by limiting employer contributions to a maximum of seven percent, and offer a portability and vesting feature not available with defined benefit options. Under this option, employees could contribute nothing or choose to contribute up to the maximum allowed under Federal law.
  --A traditional defined benefit plan that would, among other important reforms, require 4 to 6 percent baseline employee contributions depending on salary levels and require a minimum retirement age of 65. It would also implement a variable “risk/reward” system under which the baseline employee contributions would decrease or increase, within limits, tied to economic conditions.
  This reform is projected to save the State and local governments outside of New York City $83 billion over the next 30 years.
• Two proposals associated with employee/retiree health benefits which will save $37 million: 1) maximize Medicare Part D reimbursements from the Federal government with no or minimal impact to retirees; and 2) require State public authority employees and retirees to contribute toward the cost of Medicare Part B premium reimbursements.
• Reducing pension costs by $30 million annually by prepaying certain outstanding pension obligations.

For more information on this agency's budget recommendations located in the Executive Budget Briefing Book, click on the following link:

Briefing Book – State Workforce (PDF)

Note: Most recent estimates as of 1/17/2012

Click for additional detailed appropriation tables