Governor Cuomo recently announced 30-day amendments that continue historic efforts to redesign New York state government as well as the budget process to protect New York state taxpayers from unsustainable spending growth and to improve the delivery of state services.

These amendments to his executive budget proposal provide two-year appropriations in Medicaid and School Aid spending, done for the first time to control spending. Growth in these programs will be tied to medical inflation and personal income growth, thus anchoring future spending to a rational framework while providing predictability to school districts, medical providers and taxpayers.

The amendments will allow for growth in education spending in 2012-13 for the first time since 2009-10, but the increases in school aid will be affordable and will not add to the out-year gaps projected with the Executive Budget.

The amendments also codify the recommendations created by the Medicaid Redesign Team, an historic partnership of stakeholders in the health care industry tasked with finding ways to cut spending and improve the delivery of healthcare services to New Yorkers. The resulting savings will ensure that health care spending remains sustainable and affordable to taxpayers for the future.

"Through these proposals, we will ensure that the legislature addresses critical issues that for too long have driven up state and local spending," Governor Cuomo said. "New York taxpayers have said loudly and clearly that they want us to stem the tide of runaway spending. I look forward to working in partnership with the legislature to enact true reforms that rededicate our government to the needs of the taxpayers, not the special interests." Specifically, the amendments will accomplish the following: 

  •  Provide for predictable growth in Medicaid and Education spending for 2012-13. In his Executive Budget proposal, Governor Cuomo proposed legislation to control the growth in spending of Medicaid and school aid to affordable levels. The amendments to his budget proposal provide two-year appropriations for Medicaid and school aid that reflect these limits and provide for reasonable and sustainable growth in these programs.
  • Codify recommendations of the Medicaid Redesign Team (MRT). The amendments include the consensus recommendations of the MRT. These proposals are designed to reform the Medicaid payment and program structure, eliminate permanent law statutory cost drivers, implement a two-percent across-the-board rate reduction, and initiate industry-led cost containment initiatives, among other initiatives.