SALES TAX: Sales taxes collected by local governments rose 4.2 percent last year, reaching a grand total of $23 billion, according to a report released by state Comptroller Tom DiNapoli. The amount of sales tax collected by counties and cities is critical to their livelihood: It’s their top revenue source, even more than property taxes. “The fluctuations in sales tax collections that characterized the pandemic period have subsided. Local officials should plan for sales tax revenue with more stable and modest growth rates,” DiNapoli said. The rise is largely attributed to an increase in sales tax collected in New York City, which grew by 5.9 percent, two-fifths of the statewide total. That number got a boost from the large amounts of domestic and international tourism to the region, which is finally approaching its pre-pandemic levels. Outside the city, 50 out of the 57 counties saw a year-over-year increase, with the state’s smallest counties reporting the largest growth. — Shawn Ness ALL COLA, NO COKE: A group of state senators and Assembly members rallied in the Capitol today to push for the passage of a 3.2 percent cost-of-living-adjustment (COLA) for health care workers dealing with mental health patients. The increase would be tied to a 2023 consumer price index and advocacy groups pressed for a $500 million investment in mental health and substance use disorders included in the upcoming budget. Hochul’s budget included a COLA increase of 1.5 percent, which advocates say is not enough to address rising costs of operating programs and services like gas, food, and utilities. “An increase so low is a cut to funding because it doesn’t allow mental health housing providers to keep pace with inflation,” Sebrina Barrett, executive director of the Association for Community Living, said in a statement. — Shawn Ness WAGE GAP: A report today from the New York Legal Services Coalition contends the pay gap between civil legal service attorneys’ salaries compared to their government counterparts is driving a legal services crisis. In Hochul’s executive budget, she outlined a plan to move funding from the Interest on Lawyers Account to the general fund. The plan could harm low-income New York residents seeking legal aid, some lawmakers and legal aid groups said. “If New York is to close the justice gap, we must ensure that we’re properly funding the legal services organizations and programs that are dedicated to helping those in need,” Sen. Brad Hoylman-Sigal said in a statement. IOLA funds are designed to make up for an estimated $1 billion gap between public and private sector lawyers. “In order to close the 'Access to Justice' gap, we must strengthen and grow the dedicated civil legal aid workforce that is providing direct representation and counsel to clients,” Tina Foster, the group’s board president, said in a statement. — Shawn Ness PUBLIC SCHOOL ENROLLMENT CONTINUES TO FALL: The number of students in New York’s public school classrooms dropped to the lowest point it's been since the 1950s, according to a report by Empire Center. The state Education Department’s preliminary data shows a 1 percent decline in enrollment in public schools — that’s including charter schools — statewide over the past year. The enrollment losses were felt most deeply in New York City, which saw a 2.4 percent decline or a loss of 21,310 students last school year — that’s despite the sudden increase in migrant students who moved to the area. Outside New York City, Long Island gained 409 students, and the rest of the state had a loss of 3,404 students or a 0.3 percent decline. Every county had an enrollment decline from the 2018-19 school year to the 2023-24 school year with the exception of Rockland County. Enrollment has seen year-to-year declines every year over the course of the past decade. That’s a point Hochul has used to justify her budget proposal that reduces state aid for 337 school districts that she says have experienced enrollment declines. Since 2018, the state’s largest districts have experienced between 9 percent to a 20 percent decline. During that time period, Buffalo lost 11.3 percent of its students; Rochester 20.9 percent; Yonkers 9.5 percent; Syracuse 12.6 percent decline and New York City was down 12.2 percent. According to the Empire Center, the enrollment drop is the result of declining fertility rates, outmigration and a recent surge in homeschool that took off during the pandemic. — Katelyn Cordero HOCHUL PUSHED BACK AGAINST SCHOOL AID CRITICISM: Hochul’s proposal for school aid has united lawmakers and school advocates on both sides of the aisle in opposition. On Monday, she pushed back against that opposition and defended her decision to reduce funding in areas with declining populations. She touted the historic increases in funding last year — $5 billion over two years — but noted that the levels of funding are not sustainable with declining student populations. “I think we need to talk about and be honest about this, and the fact that a lot of our schools are sitting on surpluses,” Hochul said in Syracuse. “So, if you have surplus money, either spend more in the schools, give more to teachers for their resources or give it back to the taxpayers. That's all I'm talking about, my friends.” — Katelyn Cordero FIELD TAKES SHAPE IN 1ST SENATE DISTRICT: Democratic former Suffolk County Legislature Sarah Anker launched a campaign on Monday for the Senate seat held by Republican Anthony Palumbo. The district, on the eastern end of Suffolk County, has been eyed by Democrats since Ken LaValle retired after 22 terms in 2020. Palumbo won with less than 52 percent of the vote in 2020, though wound up topping 56 percent as Republican fortunes improved on Long Island two years later. “From working to reduce our county deficit to focusing on public safety issues, I’ve taken an active role in improving the quality of life here in Suffolk County,” Anker said in a statement. “Now, it’s time to take on Albany.” — Bill Mahoney
|