RMS End of Week Update 3/14/2025

March 14, 2025

Starting Monday, 3/17 Joint Legislative Budget Conference Committees will begin meeting and discussing their priorities for the committee while they wait for information regarding whether their committee will receive any additional funds (based on state revenue projections) they can use to enhance currently proposed funding (per the executive budget proposal) or add a new proposal (and be prepared to pay for it using these funds). Whether or not there are ‘additional funds’ that can be made available to the various committees will be discussed – either publicly or behind closed doors. Last year the Legislature reached consensus on a revenue projection of $500-$800M in ‘additional revenues’ over two budgets (SFY25 and SFY26). Hard to predict how they will handle this this year. Remember: Both houses proposed to increase the money in the Governor’s COLA proposal from 2.1% (the Governor’s proposal) to 7.8%. That’s a big difference. Specific committees (Mental Hygiene, SUD, OTDA, etc.) are unlikely to be able to pay for big lifts and they will likely look to the leaders of their respective houses to come up with the funds to make up the difference.

See below for a look at the initial schedule of conference committee meetings that will begin on Monday.

See attached docs for additional information.

RMS End of Week Update 3/14/2025

NYS One House Budgets Released

The Senate and Assembly released their FY 2026 “one-house” budget bills this week and both houses passed their Budget Resolutions related to their house budget bills yesterday. 2 and 3-Way negotiations will now commence between the Senate, Assembly, and the Governor with a goal of reaching a final budget deal by the April 1 deadline.

Speaker Carl Heastie and Assembly Ways and Means Committee Chair J. Gary Pretlow announced the Assembly passage of the $256.5 billion State Fiscal Year (SFY) 2025-26 Budget proposal “This proposed budget is an investment in New York’s families and in its future,” Speaker Heastie said. “It will put money back into the pockets of hardworking New Yorkers, while making critical investments in education, higher education, housing, health and mental healthcare, and ease the burden on our small businesses.”

To view the Assembly’s press release please click here.

Senate Majority Leader Andrea Stewart-Cousins commented on the Senate’s one house budget proposal stating, “In the face of economic uncertainty and federal threats to essential programs, our budget serves as a fiscal battle plan, protecting working families, strengthening our communities, and building a more prosperous future. As Washington pushes drastic cuts to programs New Yorkers rely on, we are fighting back by investing in people where it matters most. While we can’t undo every harmful policy coming from the federal government, we can lean on our New York values to focus resources where they will have the greatest impact on real, everyday people. The Senate Majority stands united in putting people first, ensuring that New York remains a national leader in forward-thinking governance, smart investments, and economic opportunity.”

To view the Senate’s press release please click here.

RMS Health/Mental Hygiene One House Budget Update for SFY 2026

Following our review of the one house budget bills, we have developed the attached and linked sector-by-sector comprehensive summary of the Health/Mental Hygiene one house budget proposals for SFY 2026. Upon review, please let us know if you have any questions or if you would like additional details on any of the proposals.

SFY 2025-26 Health/Mental Hygiene Budget Summary Comparison of Executive Budget to Senate/Assembly One-House Budget Bills

RMS Tax/ Revenue Table

Following our review of the one house budget bills we have attached and linked for your review a section by section analysis of the One House changes to the Governor’s proposed revenue bill.

Both houses included amendments to the personal income tax, decreasing taxes on middle and lower income brackets and increasing and extending taxes on the higher income brackets. In addition, both houses increased the corporate income tax , the Assembly raising it to 9.25% on corporate taxpayers earning more than $10 million and the Senate raising it on corporate taxpayers with earnings over $5 million to 9%. Additional details are included in the chart.

Both houses also proposed a number of both exemptions and new amended taxes

including Small Business Hardship Savings Accounts, Sales Tax Exemptions for Energy Storage Systems, Ending Sales Tax Exemptions for Boats over $230,000, Ending Tax

Breaks for Fossil Fuel Companies, Moving the taxation on Vapor Products to Wholesale Collection, Taxing Non-Residential Helicopter Rides. etc.

RMS Tax/ Revenue Table

NYS Legislature Announces General Budget Conference Committee & Subcommittees

Please find the General Budget Conference Committee & Subcommittees Membership List attached and linked here. Below is the schedule released today for meetings next week:

General Conference Committee: Monday, March 17 at 12:00 p.m.,

Hearing Room B, LOB

Cycle A: Monday, March 17, 4:00 p.m.
– Public Protection / Criminal Justice / Judiciary: Hearing Room A, LOB

– Environment / Agriculture / Housing: Hearing Room B, LOB
Cycle B: Monday, March 17, 4:30 p.m.
– Mental Hygiene: Hearing Room C, LOB
– Transportation: Hearing Room B, LOB
Cycle C: Tuesday, March 18, 4:30 p.m.
– Economic Development: Hearing Room A, LOB
– Health, Hearing Room B, LOB
Cycle D: Tuesday, March 18, 5:00 p.m.
– Education: Hearing Room C, LOB
– General Government / Local Assistance: Hearing Room A, LOB

Cycle E: Tuesday, March 18, 5:30 p.m.
– Higher Education, Hearing Room A, LOB
– Human Services / Labor: Hearing Room B, LOB

Capitol Pressroom Interview With State Health Commissioner Dr. Jim McDonald

State Health Commissioner Dr .Jim McDonald talked about access to obesity medication and the CDPAP transition on today’s Capitol Pressroom interview.

The interview began with the question of obesity medication coverage for those on Medicaid being a priority of this administration and why is making these medications more available to those on Medicaid an important state priority and not just increased nutrition or exercise.

The Commissioner responded that obesity is one problem that leads to many other problems such as diabetes, heart disease, etc. He noted that the best way to treat obesity is a comprehensive program but there is a place for these new but not really new medications since they have been around for years. These are interesting medications that work, and people really do lose weight. It looks like you need to be on these medications for at least two years before in many cases being able to go down to a maintenance dose. Obesity is a chronic disease, and it is a complex medical problem. Obesity creates a cascade of other issues, we need more real farm fresh food and to have safe neighborhoods and places to exercise but these medications are also part of the solution.

When asked about the cost of these medications. The Commissioner discussed how these medications are expensive, and the price is one they can’t pay on Medicaid because we can’t get a federal match right now. They are currently looking at what they can support and one thing they don’t know is what is their return on investment.

When asked how do you ensure its going to the right people who have exhausted other options?

The Commissioner responded they are not a first line medication despite what advertising is saying on social media. Advertising is an algorithm, and he noted maybe we should regulate consumer directed advertising as a way to avoid the possibility of an adverting manufactured boom driving up the request for these medications when they may not be needed yet. He noted to make sure it goes to the right people they need to look at eligibility such as what’s the BMI of the person, what have they tried before. All medications would require prior authorizations and would look at what obesity class are they are in, and they need to look at what cut offs make sense to balance utilization costs with the savings from prevention.

Conversation then shifted to the CDPAP transition on today’s Capitol Pressroom interview.

Regarding the numbers of who have started or completed the transition 125,000 consumers and 135,000 workers according to the Commissioner have started or completed the transition. When asked why he doesn’t have an exact number on who has completed the transition the Commissioner stated that the vendor controls the numbers, and he will know that number tomorrow. The Commissioner further stated that 70% have started or completed the transition in the Capitol Region, Southern Tier, and North Country. He also noted that 10% are moving into personal care with licensed home care agencies.

The Commissioner further states that they are making progress and are meeting benchmarks as expected. He further stated that this has been an uphill battle that shouldn’t have been. He stated that they had to fight the misinformation and said the FIs didn’t give the information to PPL because the FI’s were told we don’t have to, but he said they thought they did not have to because of misinformation.

In discussing the cost of CDPAP prior to moving to a single FI, he stated it was close to $264 per member per month and that the new cost number which he is not allowed to disclose is a lot better. The Commissioner also noted that Medicaid is under huge strain federally and that we are long overdue for an overhaul. He stated that they aren’t changing eligibility and services, they are just getting rid of administration costs and that they will hit April 1 deadline it is in law there is no other option. Only PPL can be paid after April 1. When asked what the backup plan is the Commissioner said the plan is to do what you are supposed to do and get signed up with PPL.

When asked is personal care cheaper the Commissioner responded that it is not.

To listen to the full interview please click here.

Governor Hochul Announces Dr. Hazel N. Dukes Civic Leadership Initiative to Honor the Late Civil Rights Legend

This week Governor Kathy Hochul announced that New York’s Office of Service and Civic Engagement will be named to honor the memory of Dr. Hazel N. Dukes, the legendary New York civil rights leader. The Dr. Hazel N. Dukes Civic Leadership Initiative will be charged with promoting civic and service opportunities across New York, continuing the focus on public service and civic engagement that Dr. Dukes championed throughout her life. The Governor also announced an expansion of SUNY’s Dr. Hazel N. Dukes Fellowship for the Advancement of Civil Rights.

“Dr. Hazel N. Dukes was a giant of the civil rights movement,” Governor Hochul said. “One of the greatest honors of my life was when Hazel presided over my official swearing-in as Governor. She was a trusted friend and key advisor, and we pay tribute to her legacy by continuing our investments in service and civic engagement.”

Dr. Hazel N. Dukes Civic Leadership Initiative
The Dr. Hazel N. Dukes Civic Leadership Initiative will focus on service and civic engagement efforts across New York. It includes SUNY’s Empire State Service Corps, where participating students engage in paid public service work for more than 300 hours over the course of the year, working on projects like disaster relief, peer mental health and SNAP enrollment.

Dr. Hazel Dukes Fellowship for the Advancement of Civil Rights
Governor Hochul announced the expansion of the Dr. Hazel Dukes SUNY Fellowship for the Advancement of Civil Rights, which will support one SUNY faculty member that will be selected each year to engage in research or scholarship related to civil rights, social justice, civic education, civil discourse, and community action. The application for the Dr. Hazel Dukes SUNY Fellowship for the Advancement of Civil Rights will open later this month, with the inaugural fellow to be named in June. SUNY tenured and tenure-track faculty from across SUNY’s State-operated campuses and community colleges are eligible to apply.

Portrait Carving on the Great Western Staircase
Governor Hochul announced her proposal to add a portrait carving of Dr. Dukes to the Great Western Staircase in the New York State Capitol in Albany. The Great Western Staircase includes portrait carvings of many notable figures, including the first 30 governors of New York State, United States presidents, explorers, politicians, inventors, scientists, authors, soldiers, poets, activists and abolitionists. The most recent addition to the Great Western Staircase is a portrait carving of the late Justice Ruth Bader Ginsburg, which Governor Hochul unveiled in 2023.

To view the full press release please click here.

NYS COVID-19 Monitoring Dashboard

Below we have included the link to the State’s Testing Tracker which includes the State’s overall testing status–by clicking on the link above you can view the testing results by county. This data is current through March 13, 2025.