New Yorkers Need A Fiscal Cliff Task Force
In the final days of the 2024 Legislative Session, Senator Persaud and Assemblywoman Davila passed bi-partisan legislation (A08431A/S0783A) that would establish a Fiscal Cliff Task Force to be charged with conducting a study on fiscal cliffs in the state’s public assistance programs. This legislation passed the NYS Assembly and Senate unanimously for the second time.
The fiscal task force legislation was born out of the deep need for additional information to address public assistance benefits “cliffs” in New York State and how to properly create meaningful pathways out of poverty and from public assistance.
Benefits cliffs impact workers and employers alike. A worker will lose all their public benefits if they earn just one dollar over income limits while not being able to have a savings account. At the same time, employers are denied the full skills and capacity of an employee who is held back by income restrictions. Employers have great difficulty investing in these employees, and these employees may feel trapped by the need to maintain eligibility for public assistance.
A08431A/S0783A creates a 20-member Bi-Partisan Fiscal Cliff Task Force, comprised of two members appointed by the Senate Majority Leader, one member appointed by the Senate Minority Leader, two members appointed by the Speaker of the Assembly, one member appointed by the Assembly Minority Leader, five members appointed by the Governor, three local social services district commissioners appointed by the governor, the commissioner of the Office of Temporary and Disability Assistance, the Commissioner of Health or his or her designee, the Commissioner of the Department of Labor, and the commissioner of the Office of Children and Family Services.
In case this sounds familiar- it is. This happened last year, in 2023. Governor Hochul vetoed the bill in November 2023 along with a package of other task force legislation citing, “intensive studies and reports to be undertaken by state agencies and authorities… and the enactment of this package of legislation would collectively cost the State approximately thirty-five million dollars. None of these costs are accounted for in the State Financial Plan.”
But something feels different this year.
In 2021, Senator Persaud and the New York Association of Training and Employment Professionals (NYATEP) began working together on a bill that would mitigate benefits cliffs by exempting income earned from certain job training or adult education programs from the determination of need for public assistance programs, for a period of six months. With the support of the Senate and other workforce, social service, and business organizations, the bill has moved through the Senate in 2022, and again in 2024.
The FY 2023-24 Enacted State Budget included a one-time income disregard for individuals whose income does not exceed the 200% federal poverty level (FPL), and completing an approved employment program can retain full public assistance benefits for six months to mitigate “benefits cliff.” We believe this task force legislation would prove that such an income disregard is extremely helpful but, in its current form, severely limits participation due to the maximum earnings set at 200% FPL, which, for a single person trying to work full time and get back on their feet, roughly equates to the state minimum wage. Minimum wage earnings are not a windfall.
We ask you to express to our Governor the importance of this task force. All New Yorkers must be able to benefit and have the opportunity to expand their skills and qualifications. We will continue to formulate policy proposals that transform benefits cliffs into gradual off-ramps that encourage New Yorkers to achieve self-sufficiency rather than punish them for trying to do better for themselves and their families.
Senator Roxanne J. Persaud represents the 19th Senate District and, since 2019, has served as Chair of the NYS Senate Social Services Committee.
Assemblymember Maritza Davila represents Assembly District 53 and is Chair of the New York State Assembly Social Service Committee.
Therese Daly is the Chief Advocacy & Government Affairs Officer of the New York Association of Training & Employment Professionals (NYATEP), whose members include New York’s 33 local workforce development boards, community college systems, literacy providers, local governments, labor unions, economic development agencies, and career and technical education providers.
