NYS Budget Adopted
The state finally passed a $254 billion budget for fiscal year 2026. Given the complexity of the budget process in New York, it is essential to be diligent, connected to the right policymakers and staff throughout the negotiations, and pro-active on issues relevant to NYECA members. NYECA was actively and deeply involved in this process and is happy to report several significant accomplishments on priority issues. Some highlights are below.
NYECA Win: Temporary Disability Insurance Increase Not Included in Final Budget
NYECA has been clear in its support of a reasonable increase in Temporary Disability Insurance (TDI) benefits for employees, if the increase also contains adequate consideration of union contractors operating under a collective bargaining agreement and NYECA’s unique circumstances as a self-funded plan. But the proposal included in the budget still did not address these concerns, so NYECA was successful in preventing its inclusion in the final budget.
NYECA Win: Unemployment Insurance Employer Assessment Eliminated
At the urging of NYECA and other business groups, the budget eliminates the Interest Assessment Surcharge (IAS) for 2025 which will decrease UI contribution rates in 2026. This is because the state will have fully repaid its federal unemployment insurance (UI) debt. This repayment means that the state no longer needs to collect the IAS from contractors to cover the interest on the loan – thereby lowering costs for NYECA members.
Prevailing Wage for Private Work Using Public Subsidies
There was an attempt in the budget to eliminate the Public Subsidy Board, which is tasked with determining the applicability of prevailing wage requirements for projects receiving public funds, which was not successful.
Below are additional budget items relevant to NYECA:
Education & Labor
Part V (Wage Enforcement): The budget significantly expands DOL’s enforcement powers to collect lost and stolen wages for workers.
Part BB (Reducing Time Period for Striking Workers to Receive UI Benefits): The budget reduced the period from which striking workers are eligible to receive UI benefits because of a labor dispute from two weeks to one week.
Part KK (Increased the Maximum Benefit Rate for UI): The final budget increases the maximum benefit rate for UI from 16 to 18% of the state’s average wage; increases maximum benefit amount to $869 (part of the deal to eliminate the IAS).
Transportation and Economic Development
Part GG (Design/Build & Alternate Delivery): The final budget extends the authorization of the Dormitory Authority of the State of New York to enter into design and construction management agreements with the Department of Environmental Conservation and the Office of Parks, Recreation and Historic Preservation. However, an attempt to expand alternative delivery procurement tools to all New York City agencies was not successful.
Part NN (Captive Insurance for Public Benefit Corporations): The budget authorized the New York Convention Center to form a pure captive insurance company.
Part YY (Incentivized Compliance with the “Call Before You Dig”): The budget increased and redirecting civil penalties for failure to comply with the Department of Public Service’s rules and regulations established for the protection of underground facilities. The final budget modifies the executive proposal’s fine dollar amount. $4,375 for the first violation, and $17,500 for second violation.
Revenue
Part VV (Part Funding for the MTA Capital Program and Payroll Mobility Tax): The budget includes a $3 billion state capital appropriation and $8 billion in operating aid for the MTA. There are also key changes to the Payroll Mobility Tax (PMT): businesses in New York City with annual payrolls exceeding $10 million will see their PMT rate rise from 0.6% to 0.895%. Adjustments for suburban employers: companies in surrounding counties, including Nassau, Suffolk, and Westchester, will experience a rate increase from 0.34% to 0.635%. But there is relief for small businesses: employers with payrolls under $1.75 million will benefit from a rate reduction, effectively halving their PMT obligations and returning them to 2023 levels, and the tax has been eliminated for self-employed individuals making less than $150,000 a year.
NYECA Priority Bill Status Update
Below is an updated status report on legislation relevant to NYECA over the past month.
Passed One Chamber
S.1218 Bailey/A.333 Cruz – Directs contracting state agencies to develop a growth plan to increase participation of MWBEs with respect to state contracts and subcontracts.
Passed Senate (Vote: Y: 47/N: 10)
S.3247 Cooney – Relates to electric vehicle charging.
Passed Senate (Vote: Y: 54/N: 3)
S.4191 Gounardes/A.6727 Kelles – Relates to requiring certain distribution centers to be equipped with electric vehicle charging stations.
Passed Senate (Vote: Y: 36/N: 21)
S.4728-A Sanders/A.3279-A Vanel – Establishes the New York state cryptocurrency and blockchain study task force.
Passed Senate (Vote: Y: 60/N: 0)
S.5149 Comrie/A.5524 Jackson – Relates to the debriefing of certain contracts.
Passed Senate (Vote: Y: 56/N: 0)
S.5563 Mayer/A.7666 Solages – Allows for the examination of industrial development agencies and not-for-profit corporations by county comptrollers.
Passed Senate (Vote: Y: 56/N: 0)
NYS Legislature New Bill Introductions
A.8044 Reyes/S.7074 Stavisky – Relates to penalties for contractors and subcontractors to cable television companies for violations of payroll reporting requirements, and to the payment of workers on certain excavation projects.
A.8127 Weprin/S.7997 Bailey – Enacts the “construction laborer insurance protection act (CLIPA).”
A.8404 Lucas/S.3819-A Rivera – Imposes certain penalties related to violations of building and fire code standards within fourteen days and increases certain fine amounts for violations of housing standards.
A.8465 Otis/S.7485 Mayer – Relates to prevailing wage for those involved in hauling of concrete and asphalt.
S.7959 Comrie/A.1348 Rosenthal – Relates to requirements for certain contracts for materials, supplies, or services.
S.8157 Ramos – Enacts the “NYS Health Care Tax Reform Act.”
If you have any questions or would like additional information on any New York State or New York City legislative matter, including copies of any legislation or regulations mentioned in this article, please contact Peter Rescigno or NYECA lobbyist Perry Ochacher at (914) 319-9173.