General State Charges

Mission

The General State Charges budget funds State employee and retiree fringe benefits such as health insurance, pensions, employer social security contributions, and workers’ compensation, and pays the State’s fixed costs, including litigation expenses, taxes on State owned lands, and payments in lieu of taxes (PILOTs).

Budget Highlights

The FY 2017 Executive Budget recommends appropriations totaling $5.8 billion (All Funds) for General State Charges (GSC), including General Fund appropriations of $5.5 billion and Fiduciary Funds appropriations of $0.3 billion. The General Fund appropriation reflects an increase of $2.2 billion, which has no impact on projected spending and is recommended to ensure that there is sufficient authority for the timely payment of critical expenses. The Executive Budget includes the following three proposals to help restrain the growth in State retiree health care costs:

• Eliminate Reimbursement for the Medicare Part B Income Related Monthly Adjustment Amounts (IRMAA) for High Income State Retirees (effective January 1, 2016). Only one other state (Hawaii) provides reimbursement of the supplemental IRMAA premium to all high income retirees and their dependents. The federal government imposed this premium in 2007 to require high income retirees to pay more of the increasing Medicare costs. It is inappropriate for New York State taxpayers to reimburse this premium in the context of its own spending growth for retiree health insurance. This taxpayers' subsidy to New York State’s new high income retirees currently ranges from $584 annually to retirees with an Adjusted Gross Income (AGI) between $85,000 and $107,000, to a subsidy of $3,216 annually for new retirees with AGI above $214,000.
• Maintain Reimbursement of the Medicare Part B Standard Premium for New State Retirees at $104.90 per month (effective October 1, 2016). New York is one of only two other states (Hawaii and California) that provide full reimbursement of the standard premium to all eligible retirees and their dependents. Under this proposal, New York would continue to reimburse the standard premium for new and existing retirees ($104.90 per month), but would not provide reimbursement for an unfunded federal Cost of Living Adjustment imposed on new retirees, IRMAA payers or non-Social Security payers ($17 per month).
• Implement Differential Health Care Premium Contributions for Certain New State Retirees Based on Years of Service (effective October 1, 2016). This proposal would provide more equitable funding for retiree health insurance coverage for certain new civilian State retirees with less than 30 years of service. Currently, an employee retiring with 10 years of service pays the same amount for their health insurance coverage as an employee who retires with 30 years of service. Under this proposal, comparable to the calculation for pension benefits, new civilian retirees would pay differential healthcare premiums based on years of service. Those retiring with less than 30 years of service would have to contribute a greater share of their health insurance costs. Costs would be proportionately greater for an individual with 10 years of service, and gradually decrease until they are no different than current levels once an individual reaches 30 years of service.

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 01/13/2016

Click for additional detailed appropriation tables