This week, Governor Kathy Hochul introduced the largest budget in New York State’s history. Bolstered by better-than-expected tax revenues and a strong national economy, the Governor offered a series of initiatives aimed at helping New York state’s families struggling with inflation and the high cost of living.

To highlight this goal, Governor Hochul titled her Budget Presentation, “Your Family is My Fight.”

The Executive Budget comes on the heels of President Trump’s inauguration, who has promised to take action against blue states like New York and to slash federal funding directed at those states.   

Following are some of the highlights from the Governor’s Budget:

• $252 billion – the size of this year’s budget.
• $5.3 billion – the amount of surplus funds for this fiscal year that Governor Hochul intends to use for her “affordability agenda.”

Some Executive Budget initiatives include:

• $1 billion in middle-class tax cuts;
• $3 billion in rebate checks for millions of New Yorkers;
• $800 million for an expansion of the state’s child tax credit;
• $340 million for school meals;
• $60 million for more police officers o subway trains; and,
• $13.5 million to restrict the use of cell phones during school hours.

The proposed budget is just the starting point for annual negotiations between the Governor and the Legislature over how to spend almost $250 billion throughout the 2026 fiscal year.

The Senate and Assembly will begin its budget hearings in the next several weeks. The annual budget is due to be passed by April 1^st.

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

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. 

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.