MACNY’S Overview of the 2019-2020 State Budget
Manufacturers Intermediary Apprenticeship Program (MIAP)
The final state budget included $750,000 for MIAP to ensure that this important program can continue and grow in partnership with the Alliance Partners. Thank you to our Alliance Partners, member companies and apprentices who advocated relentlessly for this program. Whether you wrote or called your State Legislators or travelled to Albany for Manufacturing Lobby Day, your efforts resulted in this funding being included in the final budget. We have and will continue to thank all the state legislators who helped to secure this funding, and we encourage you to thank your representatives for their support as well.
Permanent Property Tax Cap
We have long supported and advocated for a two percent property tax cap, which is why we applaud Governor Cuomo and the Senate and the Assembly for enacting a permanent 2% property tax cap in the final 2019-20 State Budget.
The property tax cap, which was first implemented in 2012, places a cap on the growth of school property taxes at two percent or the rate of inflation, whichever is less. MACNY always recognizes the need for fiscal discipline in New York state. Therefore, a consistent real property tax cap, supplemented by mandate relief, is a crucial step to improving New York’s overall economic climate while bolstering the state’s manufacturing competitiveness.
Empire State Apprenticeship Tax Credit
We are pleased to report the continuation of the Empire State Apprenticeship Tax Credit in this year’s budget. If you are not already accessing this tax credit, we encourage you to do so. Information about the credit can be found here: https://labor.ny.gov/apprenticeship/empire-state-tax-credit.shtm.
Pass-Through Manufacturing Zero Tax Rate
Though the zero-tax rate for pass-through manufacturers was not included in the final budget, we made a good deal of progress. Our team of MACNY members and Alliance Partners, along with our expert Paul Henry of The Bonadio Group, worked diligently starting early last fall and through the last days of the budget negotiations to have this important provision included. We were able to secure a new State Senate sponsor, Senator Anna Kaplan-Chair of the Commerce and Economic Development Committee, to join Assemblyman Al Stirpe, the sponsor in the Assembly. In addition, we educated many legislators and administration officials on the positive impact this rate would have on the more than 11,500 manufacturers and their over 300,000 employees. We will continue to advocate for this issue to further lay the ground work for the next budget cycle.
Prevailing Wage Expansion
The Senate and Assembly included language in their one-house budget proposals that was ultimately rejected in the final state budget that would require prevailing wage on almost all public works projects in the state, including IDAs and grants from the REDC program. While Governor Cuomo has expressed support for expanding the definition of public works, he recognizes the need to find a reasonable compromise that does not halt development in the state. We expect the prevailing wage conversation to continue this legislative session, as the Governor has made it clear that this is one of his post-budget priorities.