NYS Budget FY2021 – What’s in & What’s Out?
April 2nd, 2020
Below is a brief recap of the FY2021 New York State Budget. Despite this unprecedented economic crisis, Albany advanced a number of policies that will hold-back our economic recovery. Our full statement in response to this budget can be found here.
Interested in hearing more about the budget? Join us for our upcoming webinar on Wednesday, April 8th (1:00 – 2:00 PM).
What’s included?
Expansion of Prevailing Wage on to Private Construction Projects
The state budget included newly expanded prevailing wage mandates on certain private construction projects. Projects over $5 million dollars which receive at least 30% in certain public funding will now be required to pay prevailing wage and benefits. This was always bad economic policy but advancing this now will hurt our ability to rebuild New York’s ailing economy.
Paid Sick Leave Mandates
This budget creates a permanent new sick leave mandate for New York employers based on the following employee levels:
- Employers with 4 or fewer employees must provide 40 hours of unpaid sick leave
- If a business with 4 or fewer employees has net income over $1 mil, they must provide 40 hours of paid sick leave
- Employers with 5-99 employees must provide 40 hours of paid sick leave
- Employers with 100 or more employees must provide 56 hours of paid sick leave
Campaign Finance Reform
Consistent with the recommendation of the Campaign Finance Commission that were recently thrown out in court, the enacted NYS budget creates a publicly financed political campaign program. This section also includes language restricting the state’s minor parties.
Scaled Back Voting Paid Time Off
The enacted state budget rolled back the expansion of paid time off for voting included in the FY2020 state budget. The PTO is restored to 2 hours, only if the employee demonstrates insufficient time to vote before or after his or her shift (4 hours between poll closure). The employee must demonstrate the insufficient time and notify their employer between 10-2 days prior to any election.
New York State Buy American Law
Though the New York State Buy American Law was made permanent, no new products or materials were added to the law. Given Upstate New York’s unique economic relationship with Canada, this was a significant budget victory.
Ban on Polystyrene (Styrofoam) Products
The ban on polystyrene products is set to begin on January 1, 2022. Once in effect, food service providers will be prohibited from selling or distributing disposable polystyrene products, except in rare instances. The law also bans the sale of loose fill polystyrene packaging material known as packaging peanuts.
Expanded Definition of Immediately Family Member in Farm Labor Statute
The budget expanded the definition of “immediately family member’ as it relates to the recently enacted Farm Labor Bill. This expansion expands family exemptions to include first-cousins working in an agriculture business
What didn’t make it?
Small Business Tax Cuts
Despite being included in the Executive Budget proposal, tax cuts for small businesses were not included the final budget deal. No doubt the fiscal challenges brough on by the COVID-19 outbreak made even the more modest tax cut proposal untenable. Despite this setback, tax cuts for New York’s small employers should continue to be a focus of our advocacy efforts and considered as a possible aide to businesses going forward, once we’ve moved pass this current crisis.
Cannabis Regulation and Taxation Act
Efforts to legalize adult use recreational marijuana against failed to advance in this budget.
Net Neutrality
The Adopted Budget omits the Executive’s proposal to establish net neutrality principles, enforcement, and compliance provisions and to incorporate net neutrality into the state’s procurement process.
Small Wireless Facilities Deployment
The Budget did not include the Executive’s proposal to facilitate small cell wireless deployment.