NYSAC - New York State Association of Counties

NYSAC Weekly Wire

Re-caps the week's events, legislative action, and other news that impact county government.

February 27, 2009

Leaders Reach Revenue Agreement; Focus Shifts to Economic Stimulus
This week the Governor and legislative leaders reached agreement on available revenue for state fiscal years 2008-2009 and 2009-2010. The agreement predicts that continued economic downturn will result in a decrease in State general fund receipts of $1 billion when compared with the amount projected in the Executive Budget, effectively increasing the projected State budget deficit to $14 billion. A copy of the revenue consensus report is available on the Internet at http://www.budget.state.ny.us/pubs/press/2009/econRevForecastConf/revenueconsensus09.pdf

With the revenue consensus complete, discussion at the State Capitol is now focused on the recently enacted Federal Stimulus and the impact it will have on the 2009-10 State Budget. The American Recovery and Reinvestment Act of 2009 is expected to provide New York with $24.6 billion in additional federal funding for health, education, human services, public safety, infrastructure and energy.

The Governor met with legislative leaders in a public meeting to discuss specific provisions of the economic stimulus package, including funds for transportation, housing, energy, and broadband. Larger federal stimulus issues related to health care and education were not discussed.

NYSAC continues to focus on priority State budget issues and specific federal stimulus items that will benefit counties, including their allocation of enhanced federal Medicaid matching funds that we expect to be released beginning in late March. For additional information regarding the State budget or the federal stimulus, please contact the NYSAC Offices. (Ken Crannell)

Federal Stimulus to Fund Transportation, Infrastructure, and Energy
The American Recovery and Reinvestment Act (ARRA) includes $27.5 billion dollars in transportation funds, $1.12 billion of which will flow to New York State for various highway, bridge, rail and air projects. This figure amounts to 72% of New York’s annual allocation of federal transportation aid.

In order to comply with ARRA statutory requirements to distribute funds on a regional basis, the 13 Metropolitan Planning Organizations (MPOs) which cover 32 counties across the State and the City of New York, will coordinate distribution to their individual areas. In non-MPO regions of the State, NYS Department of Transportation (DOT) will distribute the aid in consultation with county officials.

In an effort to reach many smaller local projects that do not meet the guidelines to receive federal aid, Governor Paterson plans to allocate some of the federal funding to the Highway and Bridge program and work with the Senate and Assembly to restore the Consolidated Highway Improvement Program (CHIPs) funding to 2008-09 levels which had been reduced as part of his 2009-2010 Executive Budget Proposal.

Additionally, the ARRA includes a separate $1.2 billion for mass transit aid to New York State; 102% of the annual federal aid sent to New York from Washington.

The ARRA sets a tight time frame for allocation and disbursement of these funds. By June of 2009, 50% of the funding allocation must be spent on qualified projects, with the other 50% required to be spent by February 2010, at which time any unspent funding will be reallocated and divided up among additional projects nationwide.

Another vital area of national concern addressed in the ARRA is the countries aging water and waste-water infrastructure systems. In an effort to address this problem and spur job growth, the ARRA includes $8 billion dollars in funding to upgrade and the miles of pipes and rebuild outdated water treatment distribution facilities across the U.S.

In New York State this funding will flow through two existing loan programs administrated by the New York State Environmental Facilities Corporation (EFC); the Clean Water State Revolving Fund for sewer systems and the Drinking Water State Revolving Fund for potable water systems.

Under the ARRA, New York State will receive the single highest funding allocation in the nation for sewer upgrades; $432.5 million dollars or 11.1% of the overall national aid allocation. On the drinking water side, New York State will receive $86.8 million dollars, or 4.4% of the over federal allocation.

EFC is statutorily required to make at least 50% of these funds available to municipal governments in the form of grants rather than loans. State EFC officials are still considering increasing this amount above 50%, making more no-cost funding available for projects. The timeframe established to spend the sewer and water funding mirrors the transportation and infrastructure spending timeline.

The ARRA provides $1 billion for the Community Development Block Grant (CDBG) program administered by the U.S. Department of Housing and Urban Development (HUD). These funds will be distributed through existing CDBG funding formula. This statutory formula takes into account community population, poverty rate, incidence of overcrowded housing, and age of housing.

New York State’s share of increased CDBG funding is $92.4 million but only a handful of counties qualify under the existing funding formula, which has already been allocated by HUD:

Dutchess
$428,038

Erie
$789,879

Monroe
$515,914

Nassau
$4,220,770

Onondaga
$586,066

Orange
$466,115

Rockland
$562,845

Suffolk
$988,581

Westchester
$1,550,518

New York City
$48,315,183

Priority for distribution of funding will be given to projects that can award contracts based on bids within 120 days.

Another major focus of the stimulus package is energy efficiency. The ARRA provides $3.2 billion to the 2007 Energy Efficiency and Conservation Block Grant (EECBG) Program to help local governments reduce greenhouse gases and promote energy efficiency in their jurisdictions. New York’s share of the EECBG is $31 million dollars. Funds will be allocated under the existing EECBG formula as follows:

• 68% to counties over 200,000 and cites over 35,000 in population;
• 16.8% to the New York Energy Research and Development Authority (NYSERDA) for municipalities under the above population thresholds; and
• 11.2% to NYSERDA for the State Energy Program.

$400 million of the overall national funding will be awarded on a competitive grant basis, which is yet to be determined by the United States Department of Energy.

Additionally, the ARRA provides $3.1 billion dollars for State and local energy efficiency, research and conservation projects of which New York will receive $126 million. Details on how this funding will be spent will include building and facility energy audits, energy efficiency and renewable energy capitol projects and alternative fuels projects.

The ARRA splits grant funding for broadband internet expansion between to existing federal entities; the National Telecommunications and Information Administration (NTIA) and Rural Utility Service (RUS).

The NTIA grant program has very flexible grant criteria. It does not define “unserved” and “underserved” communities or set minimum broadband data transfer speed requirements. This will assist more populous areas of the nation receive part of the $3.8 billion dollars in funding allocated for this program.

The $2.5 billion dedicated to the RUS program will focus on rural areas of the nation that lack sufficient access to broadband. No area receiving RUS funding would be eligible for the NTIA fund program so that more areas of need are addressed. All broadband grants are to be awarded by Sept. 30, 2010. (Pete Savage)

Federal Stimulus to Support Health and Human Services
The “American Recovery and Reinvestment Act of 2009” impacts Human Services, Children with Special Needs and Public Health in a number of ways. The following details the estimated fiscal impact to New York State for these programs that is known at this time.

Title IV-E Programs (Foster Care/Adoption Assistance)-The Federal Stimulus contains $107 million for New York State in Title IV-E programs, including Foster Care and Adoption Assistance.

Community Service Block Grant-New York State will receive $110 million for the Community Services Block Grant. This block grant serves educational and employment needs of working families, as well as those families which are at risk of falling through the safety net.

Supplemental Nutrition Assistance Program (SNAP)-Temporary benefit increase totaling $19.9 billion. New York State residents could receive an estimated $1.289 billion in food stamp benefits.

State administration funding of $145 million for FFY 2009 and $150 million for FFY 2010. Based on the formula provided, New York State anticipates receiving approximately $33 million in these additional funds over two years.

Temporary Assistance for Needy Families (TANF)-$5 billion for the Emergency Contingency Fund for State TANF Programs, available for FFY 2009 and 2010. There are three categories for which state expenditure increases will be eligible for 80% federal match funds: caseload increases, non-recurring short term benefit spending and subsidized employment.

New York is currently ineligible for these funds based on caseload increase. The extent to which the caseload increase over the course of FFY 2009 will determine New York’s eligibility for these emergency TANF funds.

Language was included to allow “carry-over” TANF funds to be used towards any TANF benefit or service. Currently states are only allowed to “carry over” unused TANF funds for cash benefits.

Social Security Payment-One-time $250 payment for individuals in receipt of SSI, Social Security, veterans or railroad retirement payments for all who were eligible for program for any of the 3 months prior to month of enactment. The payment would be disregarded as income from all federally supported programs and for tax purposes. It is anticipated that approximately 600,000 New Yorkers will receive this additional benefit.

Child Support-The Federal Stimulus restores the federal matching funds on Child Support Enforcement (CSE) incentive payments that States invest back into the CSE program from October 1, 2008 through September 30, 2010. This reinstates payments that were eliminated in the Deficit Reduction Act of 2005. New York is estimated to receive approximately $17 million each fiscal year.

Low Income Home Energy Assistance Program (LIHEAP)-there is no funding included in the final legislation for LIHEAP.

Earned Income Tax Credit-temporarily increases the EITC in Tax Years 2009 and 2010 by creating a new 45% percent credit for households with 3 or more children

Emergency Shelter Grants-$1.5 billion for the Homeless Prevention Fund distributed through the Emergency Shelter Grant formula to provide short term or medium term rental assistance, housing relocation, and stabilization services including housing search, mediation or outreach to property owners, legal services, credit repair, resolution of security or utility deposits, utility payments, rental assistance for a final month at a location and moving costs assistance, in addition to other appropriate homelessness prevention activities. New York (including counties and municipalities, which receive funds directly) is estimated to receive approximately $142 million (NYS to receive approximately $29.8 million of this amount and NYC to directly receive approximately $75 million).

Transitional Medical Assistance (TMA)-extends work-related TMA through December 31, 2010 and takes effect July 1, 2009.

Child Care-$2 billion for the Child Care Development Block Grant will be available upon enactment and must not supplant state spending on child care for low-income families. New York State will receive $100 million of those funds.

Children with Special Needs

Early Intervention-the State’s Early Intervention Program will receive $25 million from the Federal Stimulus. It is not clear yet how that funding will be applied.

Preschool Special Education-New York State will receive approximately $760 million for the 3-21 population, also known as 611 funding. This funding flows through directly to school districts.

There is also $35 million in the Federal Stimulus for preschool grants, which is known as 619 funding. This funding flows through directly to school districts.

Public Health Programs-There is approximately $60 million in funding for New York State’s public health programs. Details on how the money may be used are forthcoming.

Senior Nutrition Program-$7 million for New York State to fund the Senior Nutrition Program.

Health Information Technology-the Federal Stimulus contains a national total of $19 million for Health Information Technology. New York State’s allocation is to be determined.

We will continue to review the legislation and provide updated information as it becomes available. (Jessica Morelli)

Federal Stimulus Provides Substantial Public Safety Resources
The American Recovery and Reinvestment Act (ARRA) includes nearly $4 billion in grants to support state and local law enforcement across the country, including:

• Homeland Security Grants-the Act provides $510 million in Homeland Security grants and waives requirements for states and localities to provide matching funds;
• Transportation Security Grants-$150 million in risk-based grants for public transportation, railroad security and Amtrak security;
• Port Security Grants-$150 million for port security grants;
• Firefighter Assistance Grants-$210 million to be used for upgrading or modifying fire stations. The Act caps single awards at $15 million;
• Byrne Justice Assistance Grants-$2 billion in formula grants to help prevent, fight and prosecute crime, of which New York State is slated to receive $107 million;
  Community Oriented Policing Services (COPS) Grants-$1 billion in grants to support the hiring of additional law enforcement officers. The Act waives the 25% local match requirement and the $75,000 salary cap per officer. New York’s grant total has not yet been determined;
• Byrne Competitive Grants-$225 million in competitive grants to support crime prevention, improve the administration of justice, provide services to victims of crime, and other activities;
• Violence Against Women Grants-$225 million, of which $175 million is for formula grants and $50 million is to be used for transitional assistance housing assistance;
• Victims Compensation Grants-$100 million for grants to support state compensation and assistance programs for victims and survivors of crime;
• Rural Law Enforcement Grants-$125 million in grants to combat drug-related crime in rural areas; and
• Internet Crimes Against Children-$50 million in grants to enhance investigative responses to predators using the Internet or other technology to sexually exploit children.

NYSAC is reviewing all public safety related provisions of the ARRA and will provide additional information regarding the county eligibility for these resources shortly. (Adriano Bongiorno)

Stimulus Provides Increase for Local Workforce Investment Areas
The Recovery and Reinvestment Act gives $174 million to New York State in additional funds for the Workforce Investment Act. $130 million of that funding will go to Local Workforce Areas through the regular WIA formula allocation process. The Workforce Investment Act (WIA) is a federally funded program that provides training and job search assistance through one stop career centers located throughout New York State.

The stimulus package funds for adult employment and training, will provide competitive grants for worker training and placement in high growth and emerging industry sectors, and assistance to state employment services agencies for reemployment services.

In addition, the funds will bring back the summer youth employment program. Since the beginning of the workforce investment act in 2000, federal funding has not been available for a stand alone summer youth employment component. New York State maintained a summer employment program for youth through TANF funding which is still in place in the state budget for 2009. The youth WIA stimulus funding brings back the summer youth employment program as a youth program option. While youth programs under WIA are targeted to disadvantaged youth ages 14 - 21, the stimulus funds can go up to age 24. (Isabelle Andrews)

Coalition Opposes Freezing State Property Payments
On Tuesday, a coalition of county officials, environmental groups and business leaders met with Governor David Paterson on Tuesday in an attempt to reverse a 2009-10 Executive Budget proposal that would reduce PILOT payments and freeze property tax payments at last year’s levels.

While this proposal is estimated to save $8.5 million for the State, it will add millions to the property tax burden facing homeowners and businesses across the state.

“The state-owned lands at issue here are a constitutional, principal and moral obligation of the state. They are a natural treasure, and a matter of state concern. The state must continue to pay its fair share of property taxes or payments in lieu of taxes (PILOTs),” said NYSAC Executive Director Stephen J. Acquario. “The homeowners and businesses in these communities should not be punished because of a proposal to break this commitment to offset a small fraction of the state’s $14 billion budget shortfall.” (Pete Savage)

Indigent Legal Services Discussed at State Legislative Hearing
This week the Assembly Standing Committees on Codes, Judiciary, Governmental Operations and Correction held a joint public hearing to assess the impact of the state budget on access to justice.

The respective committees are concerned that as New York’s economic outlook continues to deteriorate, fears of increased criminal activity may increase thereby increasing demands for indigent legal defense services.

NYSAC also has genuine concerns that the state of our economy will have adverse consequences on the delivery of indigent defense and all other state mandated, county run programs. Many counties have reported a decline in both sales and property tax collections, the two primary sources of revenue for county governments. Furthermore, counties have already begun to cut into their fund balances in an effort to keep property taxes low while maintaining the same high level of services for the many state programs counties must administer.

NYSAC believes that the first step in insuring the needs of indigent defendants is being met is to enact the Maintenance of Effort (MOE) reforms for the Indigent Legal Services program contained in Governor Paterson’s 2009-10 Proposed Budget. This legislation would replace the year after year MOE test with a MOE that reflects a three year average. The existing MOE test does not take into account fluctuations in caseloads or crime trends and the three year average is designed to lessen the impact of year to year increases and decreases.

Since the inception of the Indigent Legal Services Fund (ILSF) a number of counties have missed their MOE, putting them in danger of losing State funding for the provision of indigent legal defense services. This amendment will ensure that counties continue to provide the best defense services for those who can not otherwise afford counsel. (Adriano Bongiorno)

New York’s Senior Population Growing Fast
New York State’s overall population age 65 years and over is estimated to have increased by just under 100,000 people since 2000, going from an estimated 2,448,352 after the last census to 2,546,405 as of July 1, 2007, an increase of 4.0%. The population 65 years of age and older went from 12.9 % of New York’s total population in 2000 to 13.2% in 2007. This compares with an overall percentage of 12.6% in the nation as a whole.

New York’s percentage of total population 65 years and over when compared to other states, ranks 23rd, far behind Florida which has the highest percentage of total population age 65 and over in the nation at 17%.

• All but 13 New York Counties exceed the national percentage of people age 65 years and over of 12.6%.
• 36 counties exceed the state’s percentage of total population age 65 years and over of 13.2%. All but one of these counties is located in Upstate New York.
• A total of 23 counties, all of whom are located in Upstate New York, have populations age 65 and over exceeding 15% of the total population.

The extent of the aging of the State’s population is particularly demonstrable in Upstate New York. If the 50 counties outside the boundaries of the 12 county New York City Metropolitan Area were considered as a separate state, they would rank 7th in the nation in terms of highest percentage of the total population age 65 years and over with 14.3% percentage of the Upstate population in this age category.

These estimates should be examined while taking into consideration that the baby boom generation does not first begin to reach the age of 65 until the year 2011, with New York State already exceeding the national percentages.

For more statistics on the demographic state of New York, download The Gathering Storm at www.nysac.org.

For county-by-county data on the state’s aging population, visit here.

Next Week
The Senate and Assembly are scheduled to be in Albany for Legislative Session from Monday, March 2nd to Thursday, March 5th.