ANDREW M.

CUOMO
Governor
ROBERT F. MUJICA JR. SANDRA L. BEATTIE
Director of the Budget Deputy Director

October 5, 2017

Dear Agency Commissioners:

The FY 2019 Executive Budget – the eighth under the leadership of Governor
Andrew M. Cuomo – will continue to reflect the progressive values and fiscal
responsibility that have defined this administration. The State of New York has
dramatically improved its financial position, and the results of the last seven years have
shown that we can overcome challenges to balance the budget while delivering for the
people.

By working together, we have cut taxes for all New Yorkers, enacted the lowest middle
class tax rates in 70 years, made college tuition-free at SUNY and CUNY for working
and middle class families, provided record funding for education, raised the minimum
wage to $15/hour, created the nation’s strongest paid family leave program, improved
health outcomes while lowering costs through the Medicaid Redesign Team, and
refocused economic development strategies around regional priorities – all while
holding spending growth below two percent.

The progress we’ve made is now being threatened by Washington. Looming Federal tax
reforms have negatively impacted State revenue growth. The potential elimination of
state and local tax deductibility would significantly increase the net liability of millions of
middle class New Yorkers and hinder our economic growth. Reductions in Federal aid
and the continued threat of Affordable Care Act repeal contribute to the widespread
uncertainty currently plaguing our state.

Accordingly, the FY 2019 Executive Budget will continue the pattern of fiscal discipline
by once again holding spending growth below two percent. Agencies are directed to
submit budget requests for FY 2019 State Operations and Aid to Localities that assume
zero growth from FY 2018 cash ceilings (excluding School Aid and Medicaid, which are
subject to different caps, and Federal funds). Planning assumptions for the out-years
should likewise assume flat agency budgets.

Under the Governor’s leadership, New York State launched a $100 billion plan to
revitalize and strengthen the State’s infrastructure. This unprecedented investment is
responsibly financed without burdening future taxpayers. Debt has decreased in each of
the five prior years and, in the FY 2019 Executive Budget, infrastructure investments will
continue to be made within the confines of affordability.

State Capitol, Albany, NY 12224│www.budget.ny.gov
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In reviewing capital submissions for the FY 2019 Executive Budget, current multi-year
plans should be assessed and priority should be given to projects that maintain the
State’s infrastructure. At the same time, the State is developing a best-in-class capital
planning process and asset preservation system so that funding is allocated to the most
vital projects throughout the State, ensuring the best possible return on public
investments.

Please submit your agency’s complete budget request no later than October 18, 2017.
DOB staff is available to discuss issues of importance to your agency and talk through
any savings ideas. As always, engage your respective Executive Chamber Deputy
Secretary to ensure all requests are consistent with broader programmatic and policy
objectives.

Finally, as leaders of your respective agencies, we ask that you stay personally
engaged in performance management initiatives. These efforts will contribute to the
achievement of your budgetary and performance goals. Within this framework, agencies
should also promote risk management strategies that strengthen internal controls and
reduce unnecessary audit findings.

Navigating budget complexities requires sustained leadership at the agency level and,
with your continued partnership, the FY 2019 Executive Budget will be the next step in
rebuilding our state and expanding opportunity for all New Yorkers. Working together
towards the Governor’s vision, New York State is delivering for the people after decades
of stagnation, restoring trust in government and positioning the State for continued
growth.

Sincerely,

Robert F. Mujica Jr.
Director of the Budget

cc: James Rubin, Director of State Operations

State Capitol, Albany, NY 12224│www.budget.ny.gov

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