July 9, 2025
Regarding the “financial super powers” granted to DOB in the final state budget, please find a summary and the actual language from the final state budget below. As we stated earlier this week, the Assembly is meeting Friday and the Senate is also doing an analysis of the impact of the federal budget reconciliation bill that is now the law of the land.
SFY 2025-26 Final State Budget Includes Special Authority for DOB Director to Withhold Payments as Needed
The enacted budget gives the NYS Budget Director the authority to withhold certain payments if a $2 billion or greater General Fund shortfall is projected during SFY 2025-26. Before doing so, the Budget Director must consider other options and the impact of any withholds. Some payments are exempt, including:
- public assistance
- payments for eligible aged, blind or disabled individuals related to supplemental social security;
- debt service
- court-ordered payments, and
- anything that would violate federal law.
The Budget Director must notify legislative leaders of any planned withholds, after which the Legislature has 10 business days to propose an alternative plan by concurrent resolution that meets the same targets. If the Legislature does not take such action, the Budget Director’s proposed withholds take effect. Withheld payments may be partially or fully restored if a surplus later materializes.
Lawmakers may return to Albany in the Fall to address a potential budget shortfall that results from federal spending cuts.
From Enacted Capital Projects Budget SFY 2025-26 S3004D/ A3004D:
1 Section 1. a) The several amounts specified in this chapter for capi-
2 tal projects, or so much thereof as shall be necessary to accomplish the
3 purpose of the appropriations, are appropriated by comprehensive
4 construction programs (hereinafter referred to by the abbreviation CCP),
5 purposes, and projects designated by the appropriations, and authorized
6 to be made available as hereinafter provided to the respective public
7 officers; such appropriations shall be deemed to provide all costs
8 necessary and pertinent to accomplish the intent of the appropriations
1 and are appropriated in accordance with the provisions of section 93 of
2 the state finance law.
3 b) Any amounts specified in this chapter for advances for capital
4 projects, or so much thereof as shall be necessary to accomplish the
5 purpose of the appropriations, are appropriated by comprehensive
6 construction programs (hereinafter referred to by the abbreviation CCP),
7 purposes and projects designated by the appropriations as advances from
8 the capital projects fund in accordance with the provisions of sections
9 40-a and 93 of the state finance law, and are authorized to be paid as
10 hereinafter provided as an advance for a share, part or whole of the
11 cost for such programs, purposes and projects hereinafter specified.
12 c) The several amounts specified in this chapter as capital projects -
13 reappropriations, or so much thereof as shall be sufficient to accom-
14 plish the purpose of the appropriations, as appropriated by comprehen-
15 sive construction programs (hereinafter referred to by the abbreviation
16 CCP), purposes, and projects, being the undisbursed and/or unexpended
17 balances of the prior year's appropriations, are reappropriated and
18 unless otherwise amended or repealed in part or total in this chapter
19 shall continue to be available for the same purposes as the prior appro-
20 priations or as otherwise amended for the fiscal year beginning April 1,
21 2025.
22 The capital projects reappropriations contained in this chapter may be
23 amended by repealing the items set forth in brackets and by adding ther-
24 eto the underscored material. Certain reappropriations in this chapter
25 are shown using abbreviated text, with three leader dots (an ellipsis)
26 followed by three spaces (... ) used to indicate where existing law
27 that is being continued is not shown. However, unless a change is clear-
28 ly indicated by the use of brackets [ ] for deletions and underscores
29 for additions, the purpose, amounts, funding source and all other
30 aspects pertinent to each item of appropriation shall be as last appro-
31 priated.
32 For the purpose of complying with section 25 of the state finance law,
33 the year, chapter and section of the last act reappropriating a former
34 original appropriation or any part thereof is, unless otherwise indi-
35 cated, chapter 54, section 1, of the laws of 2024.
36 d) No moneys appropriated by this chapter shall be available for
37 payment until a certificate of approval has been issued by the director
38 of the budget, who shall file such certificate with the department of
39 audit and control, the chairperson of the senate finance committee and
40 the chairperson of the assembly ways and means committee.
41 e) Notwithstanding any provision contained herein or any other law to
42 the contrary, if, on a cash basis of accounting, a general fund imbal-
43 ance has or is expected to occur in fiscal year 2025-26, the budget
44 director is hereby authorized to withhold all or some of the amounts
45 appropriated herein, including amounts that are to be paid on specific
46 dates prescribed in law or regulation. Prior to withholding any amounts,
47 the director shall consider whether other means are available for accom-
48 plishing the purposes of this provision. Provided further, the director
49 shall consider the impact of any such amounts to be withheld. To the
50 extent the state is obligated to make payment to any individual or enti-
51 ty pursuant to any appropriation contained herein, such obligation shall
52 be reduced commensurate with such payments withheld by the director of
53 the budget.
54 The following types of appropriations shall be exempt from such with-
55 holds pursuant to this provision: (a) public assistance payments for
56 families and individuals and payments for eligible aged, blind and disa-
1 bled persons related to supplemental social security; (b) any reductions
2 that would violate federal law; (c) payments of debt service and related
3 expenses for which the state is constitutionally obligated to pay debt
4 service or is contractually obligated to pay debt service, subject to an
5 appropriation, including where the state has a contingent contractual
6 obligation; and (d) payments the state is obligated to make pursuant to
7 court orders or judgments.
8 For purposes of this provision, a general fund imbalance shall occur
9 if any state fiscal year 2025-26 quarterly financial plan update
10 required by subdivision 4 of section 23 of the state finance law
11 reflects, or if at any point during the final quarter of state fiscal
12 year 2025-26 the budget director projects, that estimated general fund
13 receipts and/or estimated general fund disbursements have or will vary
14 from the estimates included in the state fiscal year 2025-26 enacted
15 budget financial plan required by sections 22 and 23 of the state
16 finance law results in a cumulative budget imbalance of $2,000,000,000
17 or more. Provided however, that such $2,000,000,000 must be calculated
18 without considering any payments withheld in accordance with this
19 provision or any depletion of the state fiscal year 2025-26 transaction
20 risk reserve accounting mechanism.
21 "Estimated general fund receipts" shall mean general fund tax
22 receipts, after payment of debt service and miscellaneous receipts esti-
23 mated by the budget director to be received during state fiscal year
24 2025-26.
25 "Estimated general funds disbursements" shall mean general funds
26 disbursements, including transfers, estimated by the budget director to
27 be made during state fiscal year 2025-26.
28 No later than ten business days following the issuance of any state
29 fiscal year 2025-26 quarterly financial plan update that includes a
30 determination, and/or the date in the final quarter of the state fiscal
31 year 2025-26 upon which the budget director determines, that a general
32 fund imbalance exists, the budget director shall provide notification of
33 payments that will be withheld pursuant to this provision to the presi-
34 dent pro tempore of the senate and the speaker of the assembly.
35 Provided, however, the aggregate amount of payments withheld pursuant to
36 this provision shall at no point be in an amount greater than the deter-
37 mined cumulative general fund imbalance. Provided further however,
38 before any payments may be withheld pursuant to this provision, the
39 budget director shall first deplete the $2,000,000,000 transaction risk
40 reserve accounting mechanism to resolve the determined general fund
41 imbalance, as practicable. Such notification will also identify any
42 other means the budget director intends to use to resolve any portion of
43 the general fund imbalance, including but not limited to the aforemen-
44 tioned depletion of the transaction risk reserve and/or any other
45 resources.
46 Following such budget director notification, the legislature shall
47 have ten business days to prepare and adopt by concurrent resolution its
48 own withhold plan which conforms with the requirements of this
49 provision, and which achieves the same aggregate of payment withholds as
50 the budget director's withhold plan. If after ten business days follow-
51 ing the budget director's notification the legislature fails to prepare
52 and adopt its own withhold plan, or if the budget director determines
53 that the withhold plan prepared and adopted by the legislature does not
54 conform with the requirements of this provision, the withholds identi-
55 fied in the budget director's withhold plan will immediately take
56 effect.
1 Notwithstanding any other provision contained herein or any other
2 provision of law to the contrary, any payments withheld pursuant to this
3 section may be paid in full or in part if a subsequent general fund
4 surplus materializes in state fiscal year 2025-26.
5 f) The appropriations contained in this chapter shall be available for
6 the fiscal year beginning on April 1, 2025 except as otherwise noted.
——————
Providers gird for worst, hope to blunt tax law Medicaid cuts” (Modern Healthcare, July 9
GIFT ARTICLE: https://www.modernhealthcare.com/politics-regulation/mh-medicaid-cuts-trump-tax-law-effects/?utm_id=gfta-em-250709&share-code=SXDY5KSZIVEPNMF5J6DMLERHVM&user_id=5621336&customer_secondary_source=aac_articleGifting
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https://kffhealthnews.org/MjA1NzAzNA
A new study published in JAMA reveals that the health of U.S. children has significantly declined over the past 17 years, with increases in obesity, chronic illnesses, mental health issues like depression, and higher mortality rates compared to peers in other high-income countries. Researchers analyzed 170 health indicators using data from multiple sources and found that chronic conditions among children rose from 40% in 2011 to 46% in 2023, and obesity climbed from 17% to 21%. The study also reported worsening sleep, earlier puberty, and increased rates of loneliness and physical symptoms. U.S. children are nearly twice as likely to die as those in other developed nations, with higher rates of premature birth, sudden infant death, firearm injuries, and car crashes. Researchers emphasize the need to examine the broader environment in which children grow up and call for a systemic, community-based approach to improving child health. (Article here)