Colleagues,
Late last week, the state legislature completed work on the Fiscal Year 2020-21 budget. The result was the latest swing in what has been a roller-coaster year for our advocacy efforts, going back to early last summer. If you recall, we started working in May of 2019 at reaching out to state legislators as a result of what was another disappointing budget last year. We began meeting with legislators in their home districts, especially the leadership (nearly all from New York City and the suburbs, most with little background on SUNY issues). That was just the start of our efforts.
In October, we commenced a campaign to raise the profile of UUP and our issues still further, issues such as TAP Gap, student debt, the devastating, long-term impacts of the cuts of the Great Recession and the abandonment of our SUNY hospitals. We were able to work with the New York State Senate to organize the historic public hearings across the state. Dozens of UUP members and hundreds of our students, partnering with PSC, gave testimony about the importance of our mission and the issues we battle for every day. We held rallies across the state in December and February and brought almost 500 students to the State Capitol to educate lawmakers about SUNY and CUNY. Most recently in the final days of budget negotiations, our membership sent almost 2000 postcards to Gov. Cuomo, Assembly Speaker Carl Heastie, and Majority Leader Andrea Stewart-Cousins and we submitted almost 900 digital letters to those leaders and individual legislators. In a time of crisis so many of you stepped up to the fight. And that is why I believe we have averted what could have been a terrible budget.
Let’s make no mistake about it: All indications were that this year’s budget would feature deep cuts, as we started the year with a $6 billion projected deficit due to Medicaid spending. That is why we, along with a revenue coalition of unions and grassroots advocacy groups, pushed for increased taxes on billionaires in New York. Right from the start, that was at the center of our advocacy campaign. And it will remain so for the foreseeable future. We know in order to truly make progress for SUNY we need to grow the resources the state has to invest in higher education. The day is long past when the rich in our state can continue to avoid paying their fair share to help all of us enjoy a more equitable distribution of the fruits of our labor and a more just and humane society.
And then, as you all know, COVID-19 shut down our economy here in New York and then the entire country. This alone has led to a state budget deficit that could exceed $15 billion. I, and many of you, were fearful of what that could mean for SUNY. It was the relationships that we built and the work that we have done, that laid the groundwork for a path forward protecting SUNY and UUP, which was followed by our state leaders. The final budget passed this week did not cut SUNY’s funding. It is a flat budget. It’s bitterly disappointing that this is the case. It is not the budget we hoped for. The source of my disappointment is that before COVID-19 struck we were poised to see an increase in funding for SUNY. However, to end up without the deep cuts that many were predicting as recently as last week, is a relief, albeit a temporary one.
There is no doubt that New York State still faces a fiscal emergency that may necessitate mid-year cuts. There is also no doubt that our campuses will face challenges due to the loss of operating revenue triggered by refunds of unused fees and room and board, along with great uncertainty about enrollment in the Fall. What we can be hopeful about is the level of federal assistance New York will be receiving that’s a part of the stimulus package, and the fact that our friends in Washington are fighting for more aid to New York, specifically for higher education and the hospitals. Working with AFT in analyzing the recent stimulus package, I can report that our campuses are set to receive almost $180 million in direct aid to campuses. There is an additional $164 million pool of money available for the Governor’s office that must be used for higher education this fiscal year. We will work hard with SUNY and the Executive to ensure much of that gets to our campuses.
Additionally, there is funding in the federal stimulus to help hospitals deal with the pandemic. SUNY hospitals, on the frontlines of this pandemic, will be able to apply directly to the United State Department of Health and Human Services for costs related to COVID-19. This pool of money is $150 billion nationwide. Given the burden being carried by our members at SUNY hospitals, in the state that is the epicenter of the pandemic globally, we will make a strong case for a significant share of those resources.
Though the state budget is flat, I would be remiss if I didn’t point out some of the victories we did get:
1. We were able to stop (once again) the Governor’s proposals to end the standard Medicare Part B reimbursement and IRMAA for NYSHIP retirees and defeat his proposed sliding scale (based on retirement year) for health insurance reimbursements.
2. We were able to stop the extension of the so-called rational tuition program. Remember that this proposal would have created a huge increase in the TAP Gap. This win helps students and our institutions with high percentages of TAP students.
3. We were able to keep the $150 million in capital funding for the three SUNY hospitals. This will assist in the further modernization of these facilities in the aftermath of the present COVID-19 crisis.
4. We were able to keep the DSH funding in the budget, to the tune of over $230 million, with a federal match of another $230 million. This will also be a big help during the crisis.
Unfortunately, given the declining state revenue, SUNY’s proposal to have a 2:1 match on new campus capital projects remained in the budget. We will work to have targeted capital resources next year to offset this ill-conceived plan.
Now we turn our attention to aggressive advocacy on the federal level. We have plenty of friends in the New York Congressional Delegation, led by Senate Minority Leader Chuck Schumer. We are working to set up advocacy programs (virtual, of course) whereby all members of UUP can be heard by our members of Congress. Our goal is simple: To avoid the worst impacts of a contracting state budget with the federal dollars New York must have, while also generating our state’s own resources through rational, fair, and progressive tax changes. We can make a difference and we must all take part in these efforts. Our success depends on each other; no one strategy, no one effort will suffice. Our future can be protected and can be brighter if we do our parts. Stay tuned for how you and your colleagues can help us into that future.
Once again, I thank all those who have written, called or visited your legislators this year. You have made a huge impact. Now, let’s move to the next struggle.
As always, I wish you all continued health and well-being. Be safe and take care of yourselves and your loved ones.
In Solidarity,
Fred