Excerpted by Margaret Puddington  with permission from Michael Seereiter, from the New York State Rehabilitation Association (NYSRA) Analysis of the  2016-2017 Budget Agreement regarding the minimum wage issues:

The budget agreement states that:

• For workers in New York City employed by large businesses (those with at least 11 employees), the minimum wage would rise to $11 at the end of 2016, then another $2 each year after, reaching $15 on 12/31/2018.
• For workers in New York City employed by small businesses (those with 10 employees or fewer), the minimum wage would rise to $10.50 by the end of 2016, then another $1.50 each year after, reaching $15 on 12/31/2019.
• For workers in Nassau, Suffolk and Westchester Counties, the minimum wage would increase to $10 at the end of 2016, then $1 each year after, reaching $15 on 12/31/2021.
• For workers in the rest of the state, the minimum wage would increase to $9.70 at the end of 2016, then another .70 each year after until reaching $12.50 on 12/31/2020 – after which will continue to increase to $15 on an indexed schedule to be set by the Director of the Division of Budget in consultation with the Department of Labor.

Further, the bill provides a safety valve to the increases. Beginning in 2019, the state DOB Director will conduct an annual analysis of the economy in each region and the effect of the minimum wage increases statewide to determine whether a temporary suspension of the scheduled increases is necessary

The budget agreement includes the following allocation of resources for organizations providing services to increase the wage in the 2016-17 State Fiscal Year:

• $4.1M for OPWDD funded programs; there is a presumed federal match on most of these dollars, which we understand will total $7.5M
• $600K for OMH [Office of Mental Health] funded programs; there is a presumed federal match on some of these dollars, which we understand will total $900K
• $1.1M for SED [State Education Department] funded programs
• $800K for OASAS [Office of Alcoholism and Substance Abuse Services] funded programs; there is a presumed federal match on a small portion of these dollars, which we understand will total $900K

The Division of the Budget has released a briefing paper indicating more about how they view this issue and the impact. It is clear – through conversations with the Executive and further analysis of budget language – the funding included in the budget is only to cover the costs associated with bringing staff up to the new mandated minimum wage. These resources may not be used to address any ripple effects/compression associated with the increase. These would include: funding to maintain wages currently above the mandated minimum as the minimum wage increases; funding for increases for staff with higher salaries due to longevity; and, funding to maintain adequate pay differentials between first layers of management and direct support staff. This poses perhaps the most significant threat concerning the increased minimum wage to organizations that are dependent on public dollars – a further hamstringing of the ability to manage whatever resources are made available.

There are some indications that the state intends to incorporate funding for dealing with the minimum wage into future budgets…contingent on budget negotiations in future years.

Excerpted by Margaret Puddington with permission from Michael Seereiter, President and CEO, NYSRA