BILL NUMBER: S244
SPONSOR: PERSAUD
 
TITLE OF BILL:
An act establishing a fiscal cliff task force to conduct a study on
fiscal cliffs in the state's public assistance programs and to make
recommendations related thereto; and providing for the repeal of such
provision upon expiration thereof
 
PURPOSE:
This bill would establish a fiscal cliff taskforce to conduct a study on
fiscal cliffs in the state's public assistance programs and to make
recommendations related thereto; and providing for the repeal of such
provision upon expiration thereof.
 
SUMMARY OF PROVISIONS:
This act establishes a fiscal cliff task force consisting of twenty
members including two members appointed by the temporary president of
the senate, one member appointed by the minority leader of the senate,
two members appointed by the speaker of the assembly, one member
appointed by the minority leader of the assembly, 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 or his or her designee, the commissioner of
health or his or her designee, the commissioner of the department of
labor or his or her designee, and the commissioner of the office of
children and family services and his or her designee.
The taskforce shall meet at least quarterly at the call of the chair.
The taskforce shall conduct a study on the fiscal cliffs in the state
including, but not limited to, various public assistance programs, tax
credits and other programs or services provided by the state which are
tied to income.
The taskforce shall also recommend ways to reduce and or eliminate such
fiscal cliffs.
The taskforce shall make a preliminary report to the governor and the
legislature of its findings, conclusions, recommendations, and activ-
ities already undertaken by the taskforce by January 1, 2026, and a
final report by September 1, 2026. The taskforce shall subsequently
report legislative proposals as it deems necessary to implement such
recommendations.
 
JUSTIFICATION:
Many public assistance programs based on income eligibility inadvertent-
ly create a fiscal cliff, where a small increase in their earned income
results in a disproportionate decrease in the recipient's benefits. When
a person's income level reaches those thresholds, they cannot afford to
earn more, whether through additional benefits or salary, because the
loss in benefits exceeds their incremental increase in their income. As
a result of these fiscal cliffs, New York State spends billions of
dollars for public assistance programs that inadvertently trap millions
of people in poverty.
These fiscal cliffs affect multiple programs. For example, a three
person family loses their eligibility for Medicaid when they earn
$30,630, loses their eligibility for SNAP benefits when their earned
income exceeds $34, 548, loses eligibility for Home Energy Assistance
Program (HEAP) benefits once they earn $55,296, and loses eligibility
for childcare when they earn $64,090.
The taskforce created by this legislation would address these issues and
make recommendation on strategies and legislation needed to
reduce/eliminate these fiscal cliffs.
 
LEGISLATIVE HISTORY:
S. 7830A: Veto No. 65 of 2024 S. 7259-A: Veto No. 62 of 2023
 
FISCAL IMPACT ON THE STATE:
No fiscal implications for state or local government.
 
EFFECTIVE DATE:
This act shall take effect immediately.