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Governor Director of the Budget

October 18, 2019

Dear Commissioners,

Ne Y k S a e FY 2021 E ec i e B dge ill be G e A d e M.

C 10 h a d i c e a a crossroads for our State and our nation.

The policies and budget action in Washington are directly targeting New York, cutting
critical health care and public assistance funding, dramatically increasing the taxes New
Yorkers pay to the Federal Government, and trade wars are stoking economic
headwinds. With this 10th Budget, we will continue to lead the way forward against
these attacks. To do so, we must hold fast to the principles of fiscal responsibility that
have been a cornerstone f G e C ad i i a i a d a ed he a f
Ne Y k S a e ec ic e i al e he la decade.

This responsible a ach he S a e fi cal c di i ha ade i ible f e e

New Yorker to pay lower taxes than before Governor Cuomo took office, while
maintaining a balanced budget. New York is now regularly setting new employment
records and unemployment has reached record lows. At the local government level, the
2 percent cap on property tax growth has already saved the typical taxpayer more than
$3,200. This year the property tax cap was made permanent.

Yet these advancements are at risk as blow after blow is delivered by Washington to
Ne Y k fi cal heal h. Ne Y ke a e a i g $15 billi more in Federal taxes
as the result of the elimination of full state and local tax deductibility.

To continue to confront this assault, we must ensure our fiscal house remains in order.
As such, the FY 2021 Executive Budget will once again hold spending growth to 2
percent. Agencies are directed to submit budget requests for FY 2021 State Operations
and Aid to Localities that assume zero growth from FY 2020 cash ceilings (excluding
School Aid and Medicaid, which are subject to statutory caps, and Federal funds).
Assumptions for the out-years should remain the same.

Multi-year capital plans should be assessed with priority given to projects that are
shovel ready, environmentally sound, create job growth, improve our infrastructure, and

State Capitol, Albany, NY 12224│


achieve a long- e e he blic i e e bef e bei g b i ed f he FY

2021 Executive Budget.

Your previous efforts have helped us set course on two infrastructure plans totaling
$250 billion with funding from State, Federal, local government, public authority, and
private resources. Through these plans we are redeveloping our airports, bridges,
roadways, and mass transit systems with a focus on creating a greener, more resilient
New York. The FY 2020 Budget included groundbreaking legislation that is reorganizing
the MTA and providing revenues for over $25 billion in new financing, with the largest
portion coming from first-in-the-nation Central Business District Tolling.

Your agency strategic plans and program inventories are critical in delivering a high-
performing government for New Yorkers, and your budget requests should reflect the
performance strategies your agency is undertaking which provide the best value for
New York taxpayers. Together with risk management strategies and internal controls,
strategic planning ensures New York is both fiscally responsible and service driven.

Plea e b i age c c le e b dge e e la e ha N e be 6, 2019.

As always, DOB staff is available to discuss issues of importance to your agency and
talk through any savings ideas. Please engage the Executive Chamber to ensure all
e e aec i e i h lic a d ga a ic bjec i e , a d age c
strategic plan.

Together, de G e C leade hi , we have accomplished much for the

people of New York State. Thank you to each and every one of you for your partnership
in delivering an effective government. By working together, we are achieving new
heights for New Yorkers despite Federal efforts to undermine us. Together, we have
swung open the doors to opportunity -- expanding access to education, reducing the
number of New Yorkers without health insurance by 1.2 million to set a record low
uninsured rate, tackling inequities in our criminal justice system, closing underutilized
prisons, expanding free college opportunities for the middle class, supporting our direct
care workers, e i g he a i highe g al f ca b ed c i , and lowering
middle class income taxes. Together, we will continue this fight to ensure our values
remain in place for this generation and the next.


Baia .

Robert F. Mujica Jr.

State Capitol, Albany, NY 12224│