ANDREW M.

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

October 5, 2018

Dear Agency Commissioners,

In the face of severe headwinds, New York continues to shine a light for other
states to follow. Working together, we are rebuilding our infrastructure, investing
in our schools, making New Yorkers healthier, and increasing economic
opportunity for all. Importantly, we are doing so while steadfastly committed to
principles of fiscal responsibility.

Under Governor Cuomo’s leadership, the FY 2019 Budget is balanced and limits
spending growth to two percent for the eighth consecutive year – a record of
spending restraint unmatched in State history. The two percent cap is made
possible by the hard work of State agencies to capture efficiencies and improve
delivery of core services through the use of technology and a superior workforce.

Spending restraint has facilitated lowering taxes for all New Yorkers. Today, the
tax code is more progressive than ever and everyone pays a lower income tax
rate than when Governor Cuomo took office. New York is becoming a more
attractive place to invest and create jobs. Since the beginning of Governor
Cuomo’s administration, New York added 1.1 million private sector jobs and
experienced employment growth in 79 of the past 92 months. Today, there are
over 8 million private sector jobs in New York - more than at any other time in
history.

However, New York faces profound threats as the Federal government advances
funding reductions and policies that threaten our values, our rights, and our
livelihood. The elimination of full state and local tax deductibility will cost New
Yorkers in excess of $14 billion. Now is not the time to be any less vigilant about
our steadfast commitment to the principals of fiscal responsibility. Accordingly,
the FY 2020 Executive Budget will continue the pattern of fiscal discipline by
once again holding spending growth to two percent. Agencies are directed to
submit budget requests for FY 2020 State Operations and Aid to Localities that
assume zero growth from FY 2019 cash ceilings (excluding School Aid and

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

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Medicaid, which are subject to statutory caps, and Federal funds). Assumptions
for the out-years should assume the same.

Under the Governor’s nation-leading $100 billion infrastructure plan, New York is
investing in assets across the State, rebuilding public transit, and building historic
new bridges like the Governor Mario M. Cuomo Bridge. The FY 2020 Executive
Budget will expand these investments through the launch of a new $150 billion
five-year infrastructure plan. As with the existing $100 billion program, the $150
billion plan will be funded by a combination of state, federal, local government,
public authority, and private investment.

Responsible management of the State's debt portfolio has been a hallmark of this
administration. State debt will remain at affordable levels and within the debt
limit. In reviewing capital submissions for the FY 2020 Executive Budget, current
multi-year plans should be assessed with priority given to projects that improve
our infrastructure and achieve a long-term return on the public’s investment.

Agency strategic plans are a critical foundation upon which to deliver a high-
performance government. Your agency’s budget request should reflect the
performance strategies your agency is undertaking. Attention to strategic
planning and other performance management initiatives are essential to the
State’s ability to meet the service delivery needs of New Yorkers. Together with
risk management strategies and internal controls, strategic planning ensures
New York is both fiscally responsible and service driven.

Please submit your agency’s complete budget request no later than October 26,
2018. As always, DOB staff is available to discuss issues of importance to your
agency and talk through any savings ideas. Please, engage the Executive
Chamber to ensure all requests are consistent with policy and programmatic
objectives, and your agency’s strategic plan. I deeply appreciate your partnership
in this process and dedication to effective governance.

Together, under the Governor’s direction, New York is delivering for the people.
Even as some would seek to divide us, New York stands in solidarity for all the
nation to see in support of human rights, opportunity, and shared prosperity.

Sincerely,

Robert F. Mujica, Jr.

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