Cuomo Spells Out $5B Bank Windfall Spending

ALBANY, NY—Gov. Andrew Cuomo, who combined his State of the State and budget messages into one address on Wednesday, presented his proposed $141.6-billion budget to the State Legislature.

The governor, while proposing an increase of more than $1 billion in state education spending,  tied the funding hike to controversial reforms. He also proposed an increase of the state's minimum wage to $10.50 across the state and $11.50 in New York City.

Cuomo, who previewed some of his proposals in speeches several days before his Wednesday's address, spelled out how he plans to spend more than $5 billion in bank settlement funds the state has received.

The governor noted that the state will send $850 million to the federal government in connection with health care related liabilities; the state will spend $1.5 billion in bank funds on three $500 million grants to be awarded in Upstate New York, and $3.05 billion in infrastructure-related investments. The high-ticket item in that funding category is $1.285 billion for Thruway Stabilization, aimed at keeping Thruway tolls down. A lion's share of those funds is believed to be earmarked for the $3.9-billion new Tappan Zee Bridge. The governor did not reveal how much funding the new span would receive from the bank settlement funds.

The $1.5-billion Upstate revitalization competition will have seven regions compete for one of three $500-million upstate revitalization funds. The Mid-Hudson, Capital Region, Mohawk Valley, Central New York, North Country, Southern Tier and Finger Lakes regions are eligible.

Between now and April, regions will plan and engage parties interested in participating in the competition, which will formally launch on April 15th. Submissions will be due July 1st and winners will be announced in the fall, according to the governor's office.

Other initiatives to receive bank settlement funding include: $500 million to expand the state's high-speed broadband network; Upstate hospital improvements, $400 million; the development of four new Metro-North stations, $250 million; transit parking development on Long Island and Westchester County, $150 million; local government efficiency grants, $150 million; emergency response/security, $150 million; Upstate ports/State Fair, $115 million; and Southern Tier/Hudson Valley farmland preservation, $50 million.