Jan 22, 2013|
Automatically Generated Transcript (may not be 100% accurate)
Please do. Thank you good afternoon everybody happy that Governor Cuomo I would like to thank you for joining us today for the presentation of the 2013. 2014. Executive budget. What do governor first ask you join him as pathetic -- leave my positions as Meredith -- rapture people said. Don't do it. It doesn't work all he can't work it's not possible cause some nice things that they said Baghdad. Why I think it's fair to say that governor and we have proved them wrong -- last two years. The last two years in New York have been transformational. And many say of those years we can't passage of the first budget. Was -- first time in years the legislature the governor came together to pass -- on time budget. It closed at ten billion dollar budget gap with no new taxes and known to borrow. Then budget sets the tone for years of follow. Since then New York it's become a national model for efficient effective government and delivers for the people that serves. I've no doubt that we will see the same team are quickly agility in next year's budget process as well and this is what the process. -- -- three -- on time budgets in a row -- who together. We will make history. The state has that had three consecutive on time budgets since 1970s. Since they -- governors repeatedly stressed that the budget is about fiscal discipline and better performance. Getting government do more or less cut the waste this many families of this is a -- force do crossed New York State. They -- governor is set for people the robust agenda for our state. But anti said in his state the state address it starts with passing a fiscally responsible. Time budget. York -- has come a long -- on last year's. You can see New Yorkers have it renewed sense of confidence in our government. I'm proud to serve would -- caller the last two years he's been a great leader he has been a great new Yorker. He has been an outstanding governor. He's brought a renewed sense of a pride. And investor confidence and our state I can tell you he brings his a game to work every single day. It is now my pleasure to introduce someone who's dedicated his life the public service he's -- at the Helm of the budget division the last four years please welcome budget director Bob back. Thank you lieutenant governor Duffy. To lieutenant governor is absolutely right New Yorkers in a very different place than we were two years ago. But I can add to that because I can honestly say that New York is worlds away from where we were ten years ago. After 25. Years in state government five in the legislature. Fifteen and a division of the budget and four years is budget director I've seen at all. I have taken part in twenty budgets. You know saying that out loud makes me wanna cry. This used to be a process marred by partisan gridlock. And this function year after year after year the state would try to balance the budget by putting the burden on taxpayers. Barring what they could not pay back and attempting to deceive New Yorkers with hidden agendas. And as we know all too well it did not work. The major difference between then and now is that we have taken. Politics out of the budget process. And the budget and put professionalism. Back into the budget process. The budget should be an accounting document not a political one. And that is what the people in this room have done. During the past two years they have put politics aside and come together to pass a fiscally responsible. Blueprint for New York. The reforms enacted by Governor Cuomo and the legislature over the past two years have moved out of state has the era of perpetual budget crisis. And bolster confidence in state government. Under governor Cuomo's leadership enactment of the state budget has been orderly end on time. On time is particularly. Important to meet right now. I'd like to note I have a special plea for getting in on time budget this year in fact in early budget. This year. Since I'm going to become a father again for the first time in 27 years. Okay. And the due dates in March we need to get done. So let me get back to more serious note after a period of severe instability in the State's finances are finally on solid footing. And the proof is in the putting. Standard and Poor's upgraded its outlook from stable to positive. Citing our restraint on increases in school aid and Medicaid funding as well as the new -- six pension plan for public employees. There is no doubt. That there will be obstacles in the future. But as we have proven before New York will rise to the challenge added as it has for the past two years. As we all know and I know in particular. Governor Cuomo does not like to rest on his laurels. But the difference between this year and the two years ago is that now under governor Cuomo's leadership. We have established credibility. We have balanced the budget. We have passed two consecutive. On time budgets and we have restored the public's trust in New York State government. I would like to thank my team at the division of the budget for all the work they've put in on this budget. But I would also like to thank all of the governor's senior staff who contribute to it contributed enormously. To this point. And finally. And most importantly. It is my great honor and privilege to introduce the governor of New York State -- home. You thank. You very much. Mr. Robert Wagner. Twenty years. In the budget division. I remember that when it started it was an alternative to incarceration program at that time yeah. Twenty years in budget and then they -- any child every 27 years. -- magna is the definition of stamina I want here. Bob magna DiMarco -- He's also one heck of -- budget director by the way on the side. But his old team have done extraordinary job and we wanna thank you very much. Wanted to thank the lieutenant governor Bob Duffy who's just you couldn't ask for a better partner or better public service serving propped up. We're joined by the control of the State of New York time the Napoli tried to do if you -- controller. Majority leader -- your -- pleasure to be with you senator. Majority leader Jeff Klein -- there was no. Democratic conference leader Andrea Stewart cousins pleasure center. Speaker Sheldon Silver is not with us here today this is a day of a family day in day of person expectant births but. Via speaker is speaker's daughter. Michelle who goes by the nickname of rookie is that a a boring after five girls. The speaker is literally at the -- today so we as we would say Italian Muslim to be speaker. And Bob if you need a morial recommendation I know where you can -- Chairman Denny Farrell thank you who's here today. Minority leader Brian called good to be with -- assemblyman. And made personal thank you to all again the entire budget division but also secretary Larry Schwartz and -- Marlon Anderson for great job on the budget thanks very. Bullet. 213 fourteen budget. Just to -- to two years ago we said that this government needed fundamental change that we needed to rebuild the government. Literally from the ground up. And it was about restoring public trust getting people to believe in the government once again. Earning that trust and renewing the purpose. And the function of government. If you make the government work once again have been many years of this function. The state government is about. To primary. Driving forces. This Tuesday state. Of fiscal responsibility. And a state of social progress. And those of the tomb main drivers. For government economic development. It's about jobs fiscal responsibility best thing we can do is a state government is to get that economy running. Gay families get individuals jobs Preston we can do for local government. Get the economy running game business is paying taxes let them run their local governments. At the same time this is a state of social progress how do we make this state a better state. How -- we move forward goes to the two main functions. And the the instrumentality. Of changed the driver. Is government. And the operation. Of government to get that economy running and to get that social progress done we started two years ago. Building on the economic development. Platform building on the economic development task and we started by taking your tax reality what was tax reality that's reality was recognizing. That the current trajectory. Of state taxation at the stop. That there was no future for New York State -- that tax capital of the nation that you would just chasing businesses from the state and chasing people from the state. And the answer couldn't be every year to close a hole in the budget that the government was gonna put its hand back in the pocket of the taxpayer. The taxpayer's pocket is not a bottomless piggy bank. Tax reality. We followed that with a property tax cap to -- of relief to homeowners. All across this state that was sorely needed. Then last year the lowest tax rate in sixty years for the middle class. Just so everyone knew this was a different new York and we were talking about -- six. To bring structural reform and truly change the tax. Dynamic. Of this state. The second. Second line of approach on economic development. Was to change and restore our relationship to the business community. And create public private sector partnerships that actually work that's our concept of entrepreneurial government entrepreneurial government does not an oxymoron. You can have a government that thinks as an entrepreneur nor. You can have a government that works in partnership. With business and is productive in his -- and -- mean that's the New York open for business campaign. It's a -- New York it's a different new -- to New York opened for business you think you know New York come take a second look because it's a different New York than you thought. And the regional economic development councils. That really bring this all together. On the ground region by region and that is the epitome. That's the laboratory of the government private sector. Relationship. Innovation hotspots which we proposed this year. Are the cherry on the cake for the RTC's. These are high tech incubators. Partners with higher education facilities. Tax free zone is startup companies. Venture capital investments and the support services to nurture those businesses. Also this year -- spoke about the state of the state. Taking you to yet another level with a business marketing plan where we will help market New York businesses in New York product. This state produces and am an amazing array. Of products and services. And we wanna help market them especially of course upstate New York. Social progress. The state is about opportunity. The way we provide opportunities -- public education system. That's the essence of this country's promise it's the essence of this state promised nobody ever promised to give away. But we said you come here and we will work with you when you can be whatever you want debate. The ladder to get there it is the public education system and we have to have the finest in the nation. Fairness. Leads to my minimum wage proposal this year making sure people are earning a fair wage for fair day's work. Concept of community enforcement community -- public safety. Equality for all we are all the same it's not just a goal and aspiration is also the law in the State of New York. Let's make it a reality. The concept of community and helping people rebuild we have people all across the state who have been hurt. And it is our. Obligation as a community to work with him to rebuild. What. Drives oldest is government. Government operations making government work the concept that we've been pushing for the past two years that. Government is not a static concept. Government is not a debating society government isn't active service bureau government's supposed to perform. It is supposed to do something it is a functional organization. The way the government. Function intersect with the economy is the government functionality by passing to balanced budgets. That controlled expenses. That -- honest documents. And I got done on time. Congratulations. To the people in this room for making that happen. Because it fundamentally. Changed our relationship. With the business community. And it fundamentally signaled a different day to people all across the state. Paying for performance and results. From every one of our programs from every one of our agencies. This is not just about funding a budget. It's about producing results for people. And this is a different mentality in the old mentality. That's -- every year put. More money in the budget more money on the budget more money in the budget more money in the budget will mean more results no. More money in the budget just meant more money in the budget. More money in the budget just meant you or hurting the economic development and fiscal responsibility. Because you weren't producing better results for people. We've heard her most educations as experts in education systems in the Frankfurt. One of the highest performing. And every year the answer was -- more money in the budget and may need be will get more results. Nobody lives that way. Nobody in the private life. -- hires a vendor hasn't come to the house to fix something. It doesn't work they called the vendor and as they come back again tomorrow I'll pay you more. And maybe you'll get it right. No pay. Four results pay for performance. And -- the customer first. It's not about funding bureaucracies. These that this is about providing services. For people. Last year we spoke about the education system. That the education system is not about finding a bureaucracy. Or funding groups. -- funding trade association's. Education is about getting the best education we can for a student. It's about the student. Health care system is about the patient. The tax system is about the citizens. And remember who we really represented in all of us. That's what we've been doing for two years in two years later it is safe to say that the government is working better than and his work. And a long long time I wouldn't say it's a Swiss watch. But it is working better than ever before the budget was historically. The flashpoint. For dysfunction. That became the metaphor. The delay eighties. The gridlock. In public came about the budget. And people all across the state would talk about the late budgets as a symbol. Of the dis function and the disarray able to me. The exact opposite has now happened over the past two years. People are seizing on the budgets and the successful budgets. As a symbol of a government that is now functioning once again. As soon be raising the outlook on the state. Good government groups budget groups noting the success. That they existence to tick. And the executive budget is simple and it is straightforward. It is not supposed to be traumatic you know if the government is working. And the government is working -- the budget is supposed to be simple. If you take the politics. Out of the political the budget process. And the budget was professional. It should be a relatively simple exercise. It's not the way it was in the past but it's what it was in the recent past and it was last year and is this year. So between thirteen fourteen budget gap is. Thirteen billion dollars. I'm sorry did the decimal point in the wrong place. One point three billion dollars. I wanted to see if you're paying attention. Dean you can start breathing again now -- One point three billion dollars. When you're the financial plan had we not done. What we gain over the past two years literally the budget gaps would have been thirteen billion and more. It would have been this year seventeen billion dollar gap. Had we not made the reforms that we made and the reforms going forward you can see 28 next year 22. The year after that. Just to give you an idea how this gap compares we started two years ago the gap was ten billion dollars which was 12%. Of the estimated receipts. Last year 3.5 billion which is four point 2%. This year the gap is one point three which is roughly one point 6%. The estimated receipts. 200 dollars and one point three billion dollar deficit first. What we don't do is as equally important. No new taxes in this budget again. That is what is working for us. It is symbol of the new day in New York. We don't need new taxes I think if we -- with new taxes this year we would seriously. Interrupt the progress that we have been making. How do you close the gap first. Reduction in state operations this is not personal service consolidating state back office functions just. Managing the government and finding savings in the management of the government to schedule that increase was one point 4%. We were proposed state operation. Funding is flat which would save about 400 million dollars. Smoke related proposal increase of 3%. We would increase its 2.3 percent which is still more than the rate of inflation say it's 500 million. Better way to do debt management we've been working with some private financial sector. Companies who are some idea as far as in how to better manage the debt we could bring that cost them from five point 21 point one that would have 128 million dollars. We have workers' comp reform. That will also have a positive effect on the state insurance fund. And will allow us to release reserves of 250 million. Tax and finance believes they have some enforcement mechanisms. That can make them more efficient and more effective and that's another 35 million. That is the one point three billion dollar deficit. That includes. Accounts and get the 543. Million dollars. In this year's spending that I laid out in the state of the state. Last week. The state of the state initiatives. Just run through them again from general funding. Are the increases to education. The full day pre K longer -- year high performing teachers community schools. The upstate tourism. Taste of new York. And innovation hotspots which is the economic development program that goes. With the regional economic development councils that is 89 million dollars. Capital spending. We propose another round of New York -- twenty -- me. And expanding and expanding it to New York CUNY when he toward me the city system. 410 million dollars we laid out an affordable housing program. Which is one billion dollars over five years. That funding comes from Sony may NH FA restructuring. We're transferring the Mitchell -- -- portfolio that is now -- ESP EC. Two Sunday may HFA and refinancing that portfolio. And any capital funding the cost of that is a 194. In the first year. New York -- innovation capital fund. Goes with the innovation hotspots that's from the bright years these city New York green -- -- drops charged in New York. 100 million dollars that is from nice -- Total of 543. Million. The truly significant spending. In this budget that this budget anticipates. Is the proposed funding from hurricane sandy. That we are proposing three point six billion dollars in spending. Over the next year. From the federal aid of our Kingston. Our partners in government and a it's asset this year and an asset last year was the chief judge. The attorney general and the controller. Have managed their operations very well. And they have come in at flat foreign funding. Flat funding is actually very hard to achieve and it takes it well managed office. And obviously all those increase cost a year to year you're finding a way to save so this is job well done. It also puts the state know much better financial situation. And I'd like to applaud the chief judge of the comptroller and the attorney general for the -- -- What the overall spending will be. Stay operating funds will be -- one point 6%. To our -- below the 2%. Goals that we have set. All phones. With our hurricane sandy and without the affordable health care act affordable health care act. Quote unquote obamacare has increased the amount of money Medicaid money that goes to the state. But all phones is still under 2%. All phones with the affordable health care the additional Medicaid money goes to two point six. All phones with hopefully. Hurricane sandy goes to five point 2%. And again that's the bulk of that is the federal sandy funding. Education I get a 50% of the state project as you know. It's when he eleven we basically changed the way we fund Medicaid and education they had built in 13% annual increases. Which were unsustainable. The law replace them with reality based growth indices. In education and Medicaid. The budget continues as a fit for that as a fiscally responsible course education. The current law links the annual education spending indexed to the rate of growth of personal income. That's the index that we set last year. If you apply the education index to this year but it's a 3% increase. In education. Applying that index. That 611. Million dollars. We propose on top of the 3%. Eight pension of fiscal stabilization adjustment. Which adds up to an additional point. As a recognition of the pressure. Of pensions. And the current economy. That would be an additional 203 million. I also laid out in the state in the state. A number of initiatives. Moving towards full day pre K expanding the school year communities schools. And incentivizing performance for master teachers. When you add that all together it's 611. As the schedule 3%. 200 for the additional 1% 75 million that would be 889 million that would be a total four point 4%. Last year's funding was a 4%. Increase. Which means we -- increasing obviously -- point for. Which is 300 dollars per student average increase over last year's. Increase. Our would be a significant increase of education. And I am happy to propose it. And relative scale when people talk about education funding which is one of the great topics of discussion. How much. What -- funding for education is this is an instructive chart. Over two years. We -- increased aid to education right eight point 6%. That is double the rate of inflation. That is. 45 times the increase in home values during the same period of time. And -- during a period of time was student enrollment has gone down. So you know ideally. We would always like to fund everything with all the money in the world. But we live in the real. And I think these increases. And investments in education that we have made our notable and significant. And if we link them with real performance systems so we're actually getting something for our funding it will be even better. The teacher evaluation system is working it's a success only a handful of not. Put it in. If you remember the teacher valuation system we started talking about twenty can. We've we'd gotten nowhere literally and when he can we got -- in 2011 we got nowhere in 2012. We then said. If a school district doesn't agree on a teacher evaluation system with the local union. They won't get the 4% increase from last year. Lo and behold we have learned in our present compliance. -- 691. Districts 685. Districts actually put in a plan. Only six districts. Did not complete a teacher evaluation system. And I think that's a great success I think the -- working. And I think we should continuing. Let's continue to keep the increase in the -- linked. To a teacher evaluation system being submitted. Medicaid funding like get education. Medicaid set and index for growth. There was a ten year average of health care CPI. -- is Medicaid index was 4% this year's Medicaid indexes -- three point 9%. I propose staying with the index two years ago established and -- martini. It has had dramatic results for the State of New York. It stayed under the Medicaid index for two years. And planned savings of seventeen billion dollars over the next five years. When it comes to economic development. B regional economic development councils have been doing great work of all across the state. We had the second round actually in this room. We want to extend the program. To round three same level of funding. But beat these councils were up and running is a great energy is an optimism. There are learning as they go along. And I say we keep it running again at the same amount. But -- developing -- real momentum. Immigration hot spots are what we discussed earlier. This would be fifty million dollars. Fort innovation venture capital phone with a stake could invest. Venture capital -- startup companies and five million dollars for support services lawyers accountants it's better. To integrate those businesses five million dollar performance grant for the community college system to change it to a job linkage system. Right now that training for jobs that don't exist. The new way is identify the job first identified an employer. Find out what you need to train to get that person in that job. And trained for that job with those skills. It's a different orientation for the community college system. Some are doing it most aren't. We want to incentivize that with an award system to get the high performers. Operating. Last year we did the buffalo billion dollar investment program for Western New York. When billion dollars over ten years it was 100 million for the second installment. And that would be this year. Buffalo Bills are staying in new York at some good news. We made in arrangement with family pursuant to that arrangement we will -- contribute to renovating the stadium. An annual support for the operation that's about sixty million dollars. And all I can tell is a sixty million dollars the bills better win this year my friend. Talk about performance funded. Our taste of the New York program two million dollars for the implementation of taste of New York these are going to be duty free shops and network of duty free shops posting just New York products. So people get it a oriented towards them. An upstate New York marketing campaign. Five million dollars as a competitor of upstate regional tourism marketing campaign. And this is 810. Million dollars for that another round and why assume between twenty and and and and Weis. New York -- 21. I'm 110 -- million dollars of capital. That's shares reserved for signing a big smile because I'm signing a big check that says Sunni and the top of that and that's righteousness. The film production tax credit has worked very well. It has a national reputation. It has -- year to year which is caused an instability in the industry I want to be able to say that the industry will only continue what we're -- continue it for five years so plan to bring your movies in New York. Historic preservation tax credit. We vetoed it last year because it wasn't in the budget I set I thought it was a good idea and it should be in the budget and I proposed that in mind. Makes a difference in urban areas it makes a significant difference in buffalo. And I believe this should be funded. The resort casinos that we were talking about I believe for upstate New York. They could be one of our best economic development weapons. These restoring the economy in upstate New York is something we've all worked on for many many years. This is one of the most exciting opportunities that I think we have. We estimate that would generate a 150 million dollars in revenues. My proposal 90% of the revenue goes to education 10% goes to. Local governments that are hosting. The resort for local property tax cap relief. Increased the minimum wage because it's fair and 745 to 875. Total wages will increase by one billion dollars per year. With more disposable income workers will spend more and sales tax will increase. When it comes the government operations first environmental protection fund. As you know we've held their harmless over the past two years. Very very very difficult budget times when we we we held that. Flat. We know propose a two pronged approach to growth that you PF first we propose adding fifteen million. And second proposed strengthening the bottle -- enforcement. Which we believe we generated additional 48 million which would also go to EPS. Both actions this year we'll take you PF from 1304153. And nineteen million dollar increase but it deserves. I started this business in housing more years ago than I care to remember that. We still have a housing shortage in the housing problem. And that is in many ways the nature of the beast with passes you need to constantly renew the supply because you have units that are coming off line. We proposed a one billion dollar housing initiative. Hundred million of which would be for hurricane sandy. Seven hundreds for the preservation of Mitchell army units. Which aren't old housing stock and need to be respect. And 2345400. Additional units this comes from an HFA mortgage refinancing. Some additional capital and housing funds but it doesn't come off the annual budget. The state continues to have access prison beds and this is good nose. Estimated 2300. Beds 4% decline in prison population over the next four years. We proposed to close to all of the least efficient prison facilities. One is -- view in Manhattan. Which is now vacant. The cost to keep an inmate in bay view is 74000. Dollars per year. Compared to 34000. Dollars which is the average cost. Beat in -- 52 or 3% vacancy 69000. Dollars per year. We're paying to keep an inmate there compared to 34000 dollars. It's not right we can't afford it if we're serious about balancing the budget. Then let's run government the way it has to be Iran and we should close these two facilities. Juvenile justice. We started a program which is working which is taking. Actress youth youth who are juvenile justice facilities in bringing them back to their communities. Where they do get support closer to home. It's also less expensive. It's also not as damaging in some ways as institutional care it also saves the state money we want to continue that. Closing for additional. Not secure institutions 88 -- saving one point four million annually. Local governments. National economic downturn has put local governments and that significant stressed. Just the way it's put the state government. On the fiscal stress. Last year we began enacting -- mandate relief. And we've enacted significant mandate relief -- pension reform -- six belt. Made a big difference the Medicaid relief. And early intervention. This year we wanna continue to. Give Medicaid assistance. Last year we started by taking over the growth of Medicaid. Capping the growth this year will assume another 111. Million dollars to reduce the captain so it will phase down to zero. By fiscal year sixteen. One of the most common complaints. From municipalities. Is the process of binding arbitration. Binding arbitration. Will expire on July 1 when he thirteen. The current statute. Directs Harvard arbitrators considering government's quote unquote ability to pay. And ability to pay is that controversial concept. And many government officials will say this actually never happens the ability to pay is not put into effect. We wanna change the law. To say if a government is under fiscal distress. And have a formula. To define fiscal distress for municipality. But if a government is under fiscal distress. Ability to pay is limited. 282%. Increase for that contract. All in ended 2%. Will then link up with their property tax cap at 2%. Local governments and school districts. Continue to struggle with pension costs. The number increase here is staggering and it's right. 1000% increase over a decade. We passed -- six. -- six. Will make a significant difference. -- six has the bulk of the savings in the out years that's when the reductions are felt. Local governments have a short term problem. In that they have pressure today before they can get to the out years which is which -- six starts to make a difference. We're proposing a -- six savings financing plan. Where you're basically. Financing against the savings in the out years and taking some of the savings in the out years and pulling them forward. So the rates would actually be a little bit higher in the out years. When you're six kicks and. But lower now. When local governments are truly feeling. Fiscal stress to give you a sense of what the rates would do. TE RS. Goes from eleven point eight. That is 165. The reduction -- 4% for TRS eight point nine ERS. 10% for police and fire. This makes a big difference for local governments. Syracuse. It would be twelve million dollar savings 4% of the budget. Rochester -- want five point six buffalo in 195%. This is a significant way to alleviate the financial stress. On local governments. It's also Smart. We did your sixth -- builds on the success of -- six. And it basically provides a financing plan to get the municipalities. Through this pension bubble which is what we're really experienced. We're proposing a financial restructuring assistance task force. And with -- this would be a task force made up of the comptroller the attorney general division of budget. And an outside private sector consultant. Many of these localities. Are on the financial stress and again this situation for those of us who have gone through the state budget this situation basically mirrors the state. Hi pension cost. Look over seats they have a deficit. They have difficult contracts. To manage. The and they have stresses. I've spoken to a large number of local governments that try to talk them through this and understand their problems. There is no one problem. Among look localities hero different -- -- have different issues in the private sector if you had a corporation in this situation. They would declare bankruptcy. And then we'll go to bankruptcy court. And the bankruptcy court would restructure. The finances. We don't really have a mechanism to restructure. Finances. Of a locality. This financial restructuring assistance task force. Is gonna perform that function. A local government the city county can comment. Comptroller's office attorney general's office what is the situation what is the problem and how do we help that locality specifically. Is it a debt problem is -- legal issue is -- a contract the issue what is it and how do we help them. See the answer cannot be my friends. That every municipality in the state that has a financial problem. They're gonna come to Albany. And ask for check. We don't have the money. And it doesn't solve the problem anyway. Because if there's a fundamental. Economic. Inequity. In that corporation that public corporation. Resolved in -- quoted. Subsidize it year after year after year after year are -- and get worse. And there is no piggy bank here in Albany to subsidize it in the first place let's find out what it is. If it's a dead issue if it's a contract issue. Or the numbers just don't add up and then we have a mechanism so the financial control board. And financial control board can command it can take over and has legal powers and can really. Restructure. The financing of the the control boards are really our example of a municipality. In bankruptcy. This would have all the tools. In in one task force. And let's come up with a real resolution. Rather than going year to year hand to mouth and papering over the issue. It's not helping anyone and we don't have the money to do it anymore anyway. This year's budget straightforward. The machinery of government is working again we have resolved the crisis. And this was a crisis what we did over the past two years was not easy. And again I applaud you for your performance. And it was a crisis that was a verdict and hopefully this year. We continue the same functionality that we established over the past two years and we do a budget and it's an honest budget and we do an on time. And we do it together and we continue our record of effective leadership for the people of the state. But now we have another crisis. Just when you thought you were down. And this is a crisis that will once again test for us. To make this government function in a way it's never functioned before. And that is what we're going to be dealing with in -- -- -- so largest storm to hit the northeast in recorded history 300000. Properties -- just think about that number percent. 2000 miles of roads massive infrastructure rebuilding projects. This is going to be years and years and years. And it has happened for yes. Certainly a protracted period of time but people need help today. If -- house. And the house is damaged. You need help today if you are small business. And you can't pay your bills. And you can't keep your doors open at this rate you need help today so it's a massive situation. That's going to be protracted for a long period of time. That requires. Immediate. Assistance. On a grand scale we have not done anything like this. Act in this government possibly ever frankly. It really is a dimension. -- haven't dealt with before. The positive development. Is many people worked very hard kudos to our congressional delegation. Kudos to Chuck Schumer to congressman Peter king and congressman grim. Who worked very hard to get the funding passed. In the House of Representatives which was very difficult. But the packages sixty billion dollars New York gets roughly half of it between new York New Jersey and that's thirty billion dollars. But it's not going to be easy and management challenges great. And we have to fall back on what. There's been working for -- over the past two years the model we want to deploy is this. Rebuilding plans will be executed on two levels both on the state level and the community level. Top down bottom up the stage will do. The basic. Infrastructure. Housing economic development programs that need to be done in every community. And the big infrastructure mitigation projects -- that's all appropriate for the state. At the same time we want the individual communities. To come up with their own individual. Individualized reconstruction redevelopment plan why because every every communities need is a little different. And every community has a context and it has a fabric all its own. And we can't sit here and Albany. And tell Oceanside. What they need to do and we can't sit here and tell the rock -- exactly what they need to do well though the beach. Our main states. But they know what to do about their main street. And they know what to do about their recreation center. And frankly the process of them come together and healing themselves. These are very important exercise to go to go through in and of itself. Where we can say that the communities we have funding available you come up with a plan to read his. In your community for your future if the player qualifies will fund. On this state plans were -- to put together a disaster reconstruction. Task force we're going to expand the New York who worked board to do it. Will be working with independent consultants. Tide slide McCain's VP WC. Rockefeller Foundation will be advisors to the task force. One of the things were going to ask for the legislature to expand the design build legislation. This was one of the great successes of last year. Design build allowed us to do the Tappan Zee Bridge as fast as we have done it thus far. Hopefully the future moves as well as as the past year has. But design build allowed us to reduce the cost of the bridge by about a billion dollars believe it -- not. A billion dollars we wanna expand that design build capacity. To Allstate agencies and authorities. Every state project as a twofold mandate bring it back. But bring it back better than before and do the Smart work that we need to do to make sure this doesn't happen again so build it back but build back better. 2000 miles of highways will rebuild like the ocean parkway national campaign. We spend about two billion dollars. In replacement of roads where they shouldn't be or mitigation of roads that are. Prone to fraud. Transit system took a terrible beating and we also learned a lot six billion dollars in mitigation. Vent covers tunnel -- is pumping capacity you can't let the subway system. Flawed you can't let the subway system filled with water people talk about Manhattan brings -- Manhattan is how high bills. Real engineering marvel of Manhattan is how deep it built. It goes high -- of those in some places fifteen stories down. No one ever anticipated. Water on the top of Manhattan killing fifteen stories on the me. You you can't allow the water to -- that underground infrastructure. It's an engineering challenge but. We think we think will make progress. Coastal mitigation Fire Island into that. -- 34 million dollars but. We have a very aggressive reconstruction program of mitigation of speeches dunes wetlands reefs but they called soft mitigation 125 million dollars. The setup soft barriers. In housing. Two points. One quick story I visited a community and suffered. The PM right at the heart of the storm. And about three blocks back from the water we started to walk through the community towards the water. Three blocks back houses destroyed. On both sides of the street. House -- house if the house we eventually get to the water's edge. And as one house on the water's edge. Which should have been theoretically the house that was most damage because it was the first house right on the -- No damage in the house whatsoever. And the house is on stilts peers. And it's the only house on fears. And the owner came out. Percent and own no damage at all that's when you know. Your -- -- peers. Many of the other people by the way rebuild their -- two times three times four times over the years. That's why -- your house on -- Somalia after the last storm. The federal government wouldn't give me a grant unless I did a different mitigation standard. So I had to put the house -- -- to get a federal grant that I had applied for. And that house was totally and damaged I would rather invest more. Make the right design change. Due to mitigation. And rebuild that house wants rather than just rebuilding that. Once every 2345. Years. Pay a little bit more. Do it right keep people safe and save money in the long term and that's what this building back better recreate New York's -- home program is all about. There's also. An option. Where some people can say. I've gone through this enough. I've been flooded many of these communities people will tell you they've been flooded 345. Times in the past ten years. Many people will say I've had enough. Buy out the site. Don't rebuild. Let them. Sell the house. Will lie and it will keep the land break it and they move somewhere else that would be an option that would be open to buyers also it would also save us money in the long run. Health care we learned a lot health care. Damage to hospitals not only the NYU. Land owned hospital but nursing homes all across the state they were ready for it. We're gonna have construction mitigation program were also have a patient tracking system. Because when you have to move patients becomes very dangerous. It was very difficult for us. Fuel supply is another area where we are incredibly vulnerable. We are going to re designed a few backup system established state reserves. Have gasoline stations. Have generators. And strategic locations. Water supplies same thing fresh water supply and the sanitation system. We had significant. Breakdowns we had significant discharges. A water treatment facilities that would just broken and just automatically would discharging. So will invest in that the energy system. Those of you who -- on Long Island Westchester. No this very well. Some back blackouts is on this 11 days we want to invest two billion dollars in pardoning the energy system. That's all that top down state -- efforts. Will also empower communities create your own. Recovery programs. To -- community reconstruction zones. They will be zip codes. That were determined eligible by the percentage of damage in that zip code. The CD BG program community development block for your program while prayer program my heart program that I ran for many years. Is the funding source from the federal government. CD BG has appropriate uses -- -- as one of the most flexible federal funding streams. In existence. It can do housing transportation economic development. And that will be the funding stream when used for these community plans. Funding will be two way formula. If -- community comes in with a plan that successful. These movies -- zip codes that are eligible for hurricane sandy reconstruction. Relatively straightforward but this is really good news. The legislation. Thanks for the good work from a lot of people in this room. Doesn't just cover hurricane. Sanity. It also covers hurricane. -- up storms. Irene and late. So we can also go back and help those communities that are still trying to work through. Storm. Irene and -- and there are many of them don't think because. Don't think just because it was over a year ago that the in these communities are still not suffering they are suffering and this will give us an ability that we didn't have. Last year. To go back and make a real difference. This is the map of the areas that will be eligible under Lee and Irene and you can see many of the communities that are hard hit. The southern tier this never happened that actually happens is the right around senator Tom davis' house but that was just accidental. Hudson Valley. North country so be able to do a lot of good for a lot of communities there. Salary cap my friends the bad -- is. We have a lot of work to do. The good -- is. The past two years. We have shown an amazing ability to do. What nobody said we could do. Listening to a better governor Bob Duffy. What they said when we start what is it about him which isn't about me what -- -- about all of us. On the senate so the naysayers. No way we could do this no way we could put the politics aside and come together and actually get things done. That and the state was -- Government couldn't work. Well we showed them wrong and we showed them wrong in -- credit in in an incredibly profound way. Two years. This legislature of the state went from one of the most dysfunctional in the state which everybody -- this day. -- legislature and a state that now sets national precedence. And national groundbreaking policies. So that is the good news the better news is the thirty billion dollars is a lot of money. And we'll keep our -- Is crossed it's not done yet but I believe we're going to get that phone. And the best news is that we -- New Yorkers. And has New Yorkers. We are on our. Our best when things -- out there worse. And when the situation is darkest that's when we shined the brightest. And there's something about these crises that are brought us together. Upstate is covering downstate is downstate is helping -- staters people come together. And it is inspiring. And that unity. Generates a force. And this source of energy. And I believe we're gonna take that energy and we're gonna take this functionality. And we're gonna take this partnership and we're gonna take this goodwill. And when I'm just gonna build back New York to wonder what else. We are gonna build a New York that it never existed before. And I really think this state is gonna rise from what has happened and rise from these crises. And we're gonna take this moment in time and moment in history. And we will pledge our shot ourselves. The bill this state. Back to a level that it's never reached. Because at the end of the day it's very simple. It's about leaving our children a state. A home. That is safer and stronger. And richer. Than the home that we have to. And leaving them a better State of New York. Than the State of New York we inherited. I look forward to doing that -- And yeah.