State budget agreement reached in Albany
The 2011-2012 budget agreement contains critical components first proposed in Governor Cuomo’s executive budget, including redesigning Medicaid and recalibrating the cost of state government, in part, by merging and consolidating agencies as well as curbing spending growth to sustainable and affordable levels.
Policy reforms in the 2011-2012 budget include:
- Changing Permanent Law and Provides 2-Year Appropriations and Caps for Education and Medicaid: Education will be increased at a rate of personal income growth next year – roughly 4 percent. Medicaid will be increased at a rate tied to healthcare CPI which is roughly 4 percent. Together, these actions reduce next year’s deficit from about $15 billion to about $2 billion and change decades-old practice of overspending.