Five Things That Didn't Make The Budget

It looks as though Governor Andrew Cuomo has scored big: He finessed an on-time budget agreement between top legislators in the Senate and Assembly on Sunday –  the first time in five years.

The legislature has until March 31 to officially vote the budget into law.

So what got left on the cutting-room floor, so to speak? Or deliberately left out? Here are five things:

Rent Control Regulation

Rent-control regulations are set to expire in June, giving landlords in New York City the ability to raise rents to market levels for new leases. This change will greatly impact the availability of affordable of housing, as the job market continues to tremble. Democrats are pushing for the rules to be extended, but Republicans oppose the measure.

Teacher Layoff Changes

Cuomo is proposing reducing school aid by $1.5 billion, or 2.9 percent. So teacher layoffs are eminent. Nothing in the budget will change that fact. However, Mayor Michael Bloomberg has fiercely advocated for the state to do away with teacher seniority rules, which bases layoffs on tenure, not merit. The state Senate supported the measure, but Assembly Democrats opposed it, and are leaning towards alternative education reforms proposed by Cuomo instead. As of today, seniority rules will reign.

Property Tax Cap

Many state legislators, including Cuomo himself, who ran on the platform, were calling for a cap on property tax increases at two percent or the rate of inflation — whichever is lower. But alas, the governor backed down from his promise, saying that trying to add in the cap now was too complicated. Without a cap, property taxes can go up as high as the city council deems necessary.

Medicaid Spending Increase

Aside from education, Medicaid is the largest driver of state spending. And Governor Cuomo is proposing to reduce it by $982 million, or 2 percent. State law uses formulas to set the budgets in those areas, which would have resulted in 13 percent increases in the coming year. Instead, Medicaid will see a 2 percent decrease. Cuomo is known for calling these automatic increases wasteful spending and "a metaphor of Albany dysfunction." His move to cut Medicaid comes as no surprise.

The Millionaire's Tax

This is not a new tax, because it already exists. The so-called millionaire's tax, exacted on those who make $200,000 or more a year, raises up to $5.3 billion a year. And it is set to expire in December. Although $5.3 billion could go a long way in helping to offset the budget deficit, Senate Republicans have pushed back against extending the tax. Also, Cuomo has staunchly opposed adding any new taxes to the budget, and so left this one out as well, though critics argue that extending an existing tax does not constitute a new tax, as this tax was already on the books.