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Governor Hochul Introduces 2024-25 Executive Budget

January 23, 2024 by Ruth Walters Leave a Comment

On January 16^th, Governor Kathy Hochul introduced her Executive Budget to the New York State Legislature. If enacted, it would increase spending to $233 billion and is the largest budget in state history, an increase of $6 billion over last year. The governor and the legislative leaders will now start the three-month process of negotiating the state’s fiscal plan, along with the many policy initiatives included in the document. The state budget is due on April 1^st.

The governor was able to balance the budget (a state constitutional requirement), eliminating a projected $4.3 billion deficit without a tax increase or dipping into the State’s reserve funds.

Following are some of the highlights:

Housing – As a major point of contention in last year’s budget negotiations, this year’s budget proposal has been scaled down. The governor has proposed $500 million to develop 15,000 housing units on state owned land and is requiring localities to receive a “pro housing community certification” to receive state funding,

Migrants and Asylum Seekers – Hochul has allocated $2.4 billion to address the influx of asylum seekers, $1 billion of which is designated to reimburse New York City and $500 million from the State.

Health and Mental Health – The state spent $1.5 billion more than was budgeted last year for these services. Hochul has proposal an increase to $35.5 billion. The governor’s mental health agenda includes $55 million to create two hundred new inpatient psychiatric beds and $45 million for school based mental health services.

Economic Development – $500 million is recommended to modernize and expand operations at the Albany Nano Tech Complex and $200 million for Regional Advanced Manufacturing Partnerships. The governor also proposed $275 million investment to support the new Empire AI Initiative which will create partnerships in public and private institutions.

Education – School aid is proposed as an $825 increase from last fiscal year bringing total school aid to $35.3 billion.

Climate Change – The governor’s budget includes $500 million to invest in water infrastructure, $435 million to address coastal flooding and $160 million to expand clean swimming across the state.

The Senate and Assembly already have announced a series of hearings on the governor’s budget and interest groups are making their way to the Capitol to advocate for their changes and/or additions to the fiscal plan.

Here is a link to Governor Hochul’s Budget Highlights https://www.governor.ny.gov/fy-2024-executive-budget/fy-2024-executive-budget-highlights

Fiscal Year 2022-2023 Budget Has Something for Everyone

April 12, 2022 by Ruth Walters Leave a Comment

While more than a week late, the State Legislature passed a record $220 billion budget that was full of policy changes and nonfiscal issues that would be politically difficult to pass on their own. New Governor Kathy Hochul emerged from the negotiations largely victorious and put her imprint on issues that are critical to New Yorkers: public safety, rising prices and child care.

The most difficult budget issue turned out to be whether to roll back any of the state’s 2019 changes to the bail law. Those policy changes included restricting judges from imposing bail on all but the most serious crimes and many critics alleged that these changes were a major cause of the increase in crime, especially in New York City where Mayor Eric Adams advocated strongly for these shifts in criminal justice policies. The budget includes new language that would make judges consider whether the alleged crime caused serious harm to anyone. The package also makes certain crimes committed while waiting on an appearance for the previous crime, eligible for arrest.

In response to rising gasoline prices, officials agreed to suspend certain state taxes on gas from June 1^st to the end of this year. This will allow New York motorists to save roughly 6 cents per gallon off the rising price of fuel.

Child care options also will expand across the state. This year’s budget includes language to raise the eligibility for subsidies from 200% of the federal poverty level to 300% or $83,250 for a family of four. It will also provide $343 million for child care providers, three quarters of which will go toward increasing wages. Lawmakers hope that the infusion of cash will help rebuild the child care industry that has been so damaged during Covid.

This year’s budget also includes major changes in health care that is intended to set the tone for the state’s troubled health care sector. Among them are:

$1.2 billion for frontline health care workers
$7.4 billion to support a $3 wage increase for home health care aides
$2.4 billion to improve the state’s health care infrastructure

The budget also includes some major initiatives in the area of sports and recreation. New York City moved closer to getting its first full-fledged casino. This year, the state will open a competitive bidding process to authorize three casinos. The two existing “racinos” – at Aqueduct Racetrack and Yonkers Raceway – are seen as favorites to land two licenses which will leave one more license to be awarded – most likely in tourist rich Manhattan. Despite opposition, the Governor also included a deal reached with the Buffalo Bills to allocate $850 million – about $600 million in state funds and $250 million from Erie Country – toward the construction of a new $1.4 billion stadium.

Governor Hochul Delivers Her First State of the State Message

January 12, 2022 by Ruth Walters Leave a Comment

Governor Kathy Hochul laid out a bold vision for a new year in New York State during her first State of the State message. Due to ongoing concerns about the pandemic, the Governor spoke to only a small group of legislators, dignitaries and visitors in the Assembly Chamber as she highlighted her plan for the forthcoming year.

The Governor offered her vision for shepherding New York State through its recovery from the coronavirus pandemic, noting that it is an “all-consuming crisis.” In her most ambitious proposal, Governor Hochul, the state’s first female governor, called for spending $10 billion to bolster the state’s health care work force, which has been devastated by the pandemic.

She positioned herself as a champion of good government and offered a proposal to overhaul the Joint Commission on Public Ethics (JCOPE) and to institute term limits for the governor and other statewide elected officials. Her package of ethics and other government reforms were meant to hold elected officials accountable and was seen as a not-so-subtle rebuke to the huge influence that former governor Andrew Cuomo amassed over his more than decade tenure in office.

Other initiatives outlined in the Governor’s address were:

A three-part agenda for preventing and reducing gun violence;
Investing in comprehensive infrastructure projects, largely funded by the federal government, including broadband to close the digital divide; and
Accelerating the renewable energy economy, decarbonizing New York’s buildings, expanding electrical vehicle access and affordability and supporting wind power.

Her message launched what could be viewed as the busiest political year in New York State in a decade. Every statewide seat is open for re-election as is every congressional and legislative office. Further complicating the political environment is a legislative comprehensive redistricting process that must take place this year.

During the next several months, political insiders will be watching the following:

Given her bold recommendations, whether true “ethics reforms” can be instituted in a political arena fraught with decades-long scandals arrests and resignations;

Whether there will be an improvement in Albany’s relationship with New York City. During the last several years, Albany and the Mayor’s office has been largely at odds, and many will be watching to see what type of relationship takes place between the new governor and incoming New York City Mayor, Eric Adams

How the Governor’s policy priorities will translate into this year’s Executive Budget proposals. The state is flush with cash after a one-time influx of federal money, creating intense pressure from interest groups with competing priorities

The outcome of the 2022 gubernatorial and legislative races. New Yorkers will be watching Hochul closely to see if the State’s first female Governor becomes the 57^th Governor, winning her own four-year term

So Many Changes!

October 13, 2021 by Ruth Walters Leave a Comment

When I reviewed my last blog post from April, I was shocked by how very much has taken place in New York state government during the last six months. On August 10, 2021, Governor Cuomo announced that he was resigning from his office as momentum built in the state Legislature to remove him through impeachment. The decision came a week after New York State Attorney General Leticia James released the results of an investigation that found he had sexually harassed at least 11 women. Cuomo’s fall from grace came only a year after he was widely lauded nationally for his detailed daily briefings and leadership during the darkest days of the Covid-19 pandemic.

Kathy Hochul, Cuomo’s Lieutenant Governor, assumed the office and became the first woman to hold that post. The 62-year-old Democrat and former member of Congress from the Buffalo area, stated that Cuomo’s resignation was “the right thing to do and in the best interest of New Yorkers.”

Governor Hochul quickly set out her priorities which include:

Combatting the Covid 19 Pandemic – including a safe return to school and a vaccine mandate for all health care workers;

Pandemic Relief New York renters, landlords and immigrants; and,

Resetting the tone in Albany, including increased transparency for her office and a strong set of ethics recommendations.

Additionally, the new Governor moved quickly to put in place her team of commissioners and advisors including:

Brian Benjamin, Lieutenant Governor
Karen Persichilli Keogh, Secretary to the Governor
Elizabeth Fine, Counsel to the Governor
Kathryn Garcia, Director of State Operations
Robert Mujica, Director of the Budget
Dr. Mary T. Bassett, MD, MPH, Acting Commissioner, Department of Health

More organizational and personnel changes are happening daily, and the new Governor has many challenges to face as she readies herself to run again for governor — in just 13 short months.

Legislature Passes 2021-22 Fiscal Year Budget

April 13, 2021 by Ruth Walters Leave a Comment

Governor Cuomo and the State Legislature enacted a $212 billion state budget that includes tax increases on the wealthy as well as substantial relief for renters, undocumented immigrants and business owners who are hard hit by the coronavirus. State operating funds will jump $8 billion more that the Governor originally proposed, and the final budget includes roughly $6 billion in unrestricted federal aid the state plans to collect under President Biden’s American Rescue Plan stimulus bill.

The spending plan – roughly 10 percent higher than last year’s budget – is far from the draconian scenario envisioned earlier this year by Cuomo, when in January he predicted that the state would face a $15 billion hole over two years.

The embattled Governor, who prided himself on meeting the April 1^st budget deadline over his three terms in government, was in a weakened position due to series of political scandals. There have been calls from lawmakers for him to resign, an ongoing impeachment inquiry and an investigation by the Attorney General into allegations of sexual misconduct. Those factors made this year’s budget particularly challenging and placed the Legislature in a commanding position.

Key provisions of this year’s budget include:

The Legalization of Marijuana – One week prior to the budget passage, Governor Cuomo signed legislation that legalizes recreational marijuana, paving the way for the potential $4.2 billion industry. Following several failed attempts, lawmakers in Albany struck an agreement to legalize cannabis for adults 21 and older, a move that officials hope will help end years of racially disproportionate policing that saw Black and Hispanic people arrested on low-level marijuana charges far more frequently than white people.

Excluded Workers’ Fund – The $2.1 billion fund, to be administered by the Department of Labor, will provide support for workers who do not have access to Unemployment Insurance, federal stimulus funds and other programs during the Covid-19 Pandemic. This initiative is targeted at undocumented immigrants.

Affordable Internet – Establishes the first-in-the-nation program to provide affordable internet, requiring internet service providers to offer affordable $15 per month high speed internet plans to qualified low-income households.

Business and Arts Relief and Recovery Assistance – A $1 billion relief package for small businesses, arts, and entertainment organizations which have been disproportionately affected by the Covid pandemic.

Mobil Sports Wagering – Authorizes mobile sport wagering providing $500 million in revenue. The state will issue a Request for Applications and must select two platform providers which must work with at least four operators to introduce betting into state.

Increases in Education Aid – Provides a significant increase in local School Aid as well as emergency federal assistance to non-public schools. This year’s budget also includes over $7.7 billion in state support for higher education.

Procurement Initiatives:

MWBE Program – Continued support and investment in the State’s Minority and Women Business Enterprise Program. The budget also launches the “Entrepreneurial Navigator” to provide customized services and streamlined access to state start- up programs.

Comprehensive Technology Services Contract – Authorizes the Office of Information Technology Services to enter into contracts for both the design and building of systems. Such “design build” contracts have been prohibited in the past.

Made in American Medical Devices and PPE – Requires that any contract for medical devices or PPE be “produced or made in whole of substantial part in the United States.” However, it voids that requirement if the value of the contract would potentially increase it by an “unreasonable amount.”

Cooperative Purchasing – Extends in law the permission for local governments to enter into cooperative or consortium purchasing. That provision was scheduled to sunset this year.

MTA Electronic Bids – Allows the MTA to accept electronic bids and contracts, instead of the statutory provision that those bids must be “sealed.”

Governor Introduces Two Budgets

January 21, 2021 by Ruth Walters Leave a Comment

This week, Governor Cuomo introduced two budgets for Fiscal Year 2021-2022. As part of his delivery, the Governor outlined a plan to “reimagine, rebuild and renew” the State in the wake of the COVID 19 pandemic.

The two budget options are contingent on the amount of federal funding that New York can expect to receive from Washington: one assuming a federal aid package of $6 billion and another with the full $15 billion from Washington. The first budget would raise revenues through a wealth tax, cut expenses and rely on borrowing to balance the budget while the second supports a series of bold programs and infrastructure investments.

If the federal government provides New York with $15 billion, the Governor’s budget includes:

$306 billion in major infrastructure investments;
$1.3 billion rent relief;
$130 for a Pandemic Reconstruction and Restoration Program including relief to small businesses, restaurant and arts and entertainment venues; and
Creation of a public health corps.

Without federal support, the Governor’s budget would demand significant program cuts and a series of revenue raisers to support New York’s short fall.

Regardless the amount of federal funding, the Governor’s budget advocates the following initiatives to raise revenue:

Mobil sports betting generating $500 million in State revenues;
Legal Use of Adult Cannabis generating $350 million in funds; and,
Subjecting short term rentals, like Airbnb bookings, to state and local sales taxes.

The Legislature will now hold a series of budget hearings to further examine Governor Cuomo’s proposals. The new fiscal year begins on April 1, 2021, and the budget must be enacted by that deadline.