Where the Senate and Assembly human services COLA proposals differ
Human services organizations that contract with the state have warned Hochul and lawmakers of funding shortfalls for years, saying turnover in workers is high because they can’t offer competitive pay.
The state is supposed to, under statute, give those organizations an annual cost of living adjustment based on inflation. That hasn’t always happened but Hochul and the Legislature have broken that logjam to some degree in recent years.
Hochul is proposing another 2.1% cost of living adjustment in this year’s state budget. It’s not nothing, but human services organizations have said it’s not enough to match costs.
“We don’t have the funding,” said Glenn Liebman, CEO of the Mental Health Association of New York State. “We don’t have the ability to recruit and retain a quality workforce.”
They want Hochul and the Legislature to approve a 7.8% increase instead, which would amount to $585 million. That increase would be used to both increase salaries for workers and address higher costs elsewhere brought on by inflation.
The Senate and Assembly came through with that request in their one-house budgets last week. But there was a key difference between them.
The Assembly is proposing a simple 7.8% cost of living adjustment, matching where Hochul wants the money to go but raising the amount.
The Senate is also proposing a 7.8% increase but their language would require that 4% be used by organizations to increase the salaries of their workers. Certain executive and administrative titles would be exempt.
That’s not necessarily a bad thing. It would relieve the pressure that some organizations face in thinking about how to best spend their funding, said Luke Sikinyi from the Alliance for Rights and Recovery.
“Agencies are constantly thinking about their budgets, whether they should keep the lights on or pay workers,” Sikinyi said.
If history serves as a guide, Hochul likely won’t agree to the 7.8% increase but she could be convinced to go above her current proposal. That’s something we likely won’t know until a final budget deal.
