So what's in the NYS Budget?

New York State Budget Report

By Russ Sciandra
New York State Director for Advocacy
American Cancer Society

New York passed its annual budget on time for the second year in a row, leading many observers to think that things really have changed in Albany. 

For ACS, the budget was not as bad as it has been for the last three years.  The Governor proposed another cut to the Tobacco Control Program budget, from $41.4 million to $36.4 million.  Five years ago the budget was $85 million.  ACS and its allies fought back with a campaign that focused on the disparate impact of tobacco on the poor, where smoking rates remain highest.  That campaign resonated with many legislators with the result that this year it was the Assembly calling for restoration of funding, not more cuts, as it had in the past.  In the end, we prevailed and the TCP funding will be the same as it was last year.  While still inadequate, at least this year we stopped the bleeding, and hopefully as economic conditions improve, our case for increased support will be better heard next year.

The Governor proposed level funding at $26.7 million for the Cancer Services Program, a position the ACS, and the Legislature endorsed.  This program continues to have very strong support, and it was no surprise that we were able to maintain the funding level.

The Governor proposed eliminating funding for EPIC, the program that helps senior citizens pay for medications.  While the need for this program is less since Medicare Part D was introduced, co-pays and the infamous "donut hole" can still cause problems for seniors, especially those, like cancer patients, that need expensive drugs.  Working with our allies and the Legislature, we managed to get a large part of the appropriation restored for this important program.

The Governor included legislation establishing a Health Benefits Exchange in his budget bill.  New York will implement most important parts of the Affordable Care Act through this exchange, a marketplace where individuals and small businesses will buy insurance.  This measure was a very high priority for ACS, but despite all the work that we put into it, the Senate was unwilling to pass the bill at this time.  In the end, the Governor announced he will establish the exchange through an executive order, an action expected this week.  This is only a partial step, and in the end legislation will be required to fully implement the exchange, but at least it gets the ball rolling and makes the state eligible for federal aid. 

As always, tobacco taxes were on the budget agenda.  The Governor proposed an increased tax on roll your own tobacco.  Recently retailers have been installing industrial cigarette making machines in their premises and selling consumers the makings that enable them to roll their own, a carton at a time.  The Governor proposed to raise the tax on loose tobacco to a rate equivalent to cigarettes, and ACS supported the proposal, suggesting the revenue be used to increase Tobacco Control Program funding.  But some in the Legislature wanted to cut the tax on expensive cigars. ACS fought this battle last session.  It would cap the cigar tax at one dollar, meaning the wealthy would pay no more tax on their hand-rolled Dominicans than the average Joe does for a high end White Owl. In the end, nothing happened, meaning we still have the loose tobacco problem.  Attorney General Schneiderman is going after these retailers in court, charging that they are effectively cigarette manufacturers and are subject to the same laws that apply to Phillip Morris.  ACS will continue to support efforts to battle all forms of tobacco tax avoidance.

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