The New York State budget for the fiscal year was recently announced by Governor Andrew Cuomo. The plan makes note of Cuomo’s promise for fiscal responsibility within the budget as well as no additional taxes being added. However, there is a part of the plan that is concerning to those affected by workers compensation.
Cuomo has proposed to remove $1.2 billion from the New York State Insurance Fund’s reserve, which is the largest New York insurance carrier. This money is then to be moved in the General Fund. If this move is allowed, it will have a negative effect on injured workers in New York and their employers.
The fund reserve is an excess of funds that New York employers have paid out. These employers are entitled to a premium rebate for what they have already paid in. If the amount in the reserve is not in excess, businesses will then need to make up the additional funds by having to pay larger premiums. Those businesses that have overpaid also will not likely get the refund to which they are entitled. While there is no proposed tax increases, this move will affect NY employers as if there was in fact an increase in taxes.
Business owners in New York have already been struggling to keep up with the higher costs of workers compensation costs, taxes, and other expenses. The proposed move of reserve funds will not be good for workers injured on the job or the employers that wish to continue doing business in the state.
