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$1 billion plan to fix state's continuum of mental health care
√ Governor ‘Follows through on pledge not to raise income taxes for FY 2024 budget’
√ New York housing compact will build 800,000 new homes, address statewide housing shortage
√ $337 million investment aimed at reducing and preventing gun violence
√ $1 billion health care investments for capital projects at hospitals and other facilities
√ $1.3 billion economic development investments to create jobs of the future
√ Fully phases in foundation aid, a $24 billion commitment to education that includes $125 million for pre-K, and $250 million for learning loss tutoring
√ Link to budget book here.
Gov. Kathy Hochul on Wednesday outlined her fiscal year 2024 executive budget.
Her team said, “The FY 2024 executive budget reflects Gov. Hochul's bold agenda to make New York more affordable, more livable, and safer by making smart, responsible investments in mental health care, public safety, housing, education, climate initiatives and more.”
Hochul said, "I'm committed to doing everything in my power to make the Empire State a more affordable, more livable, safer place for all New Yorkers. We will make bold, transformative investments that lift up New Yorkers while maintaining solid fiscal footing in uncertain times."
Acting Budget Director Sandra L. Beattie said, "Gov. Hochul's executive budget considers the needs of every New Yorker, providing both the funding and a road map to put in place lasting, meaningful solutions. From bold investments in affordable housing, innovative mental health services, and effective crime prevention strategies, this executive budget is one that will reach today's New Yorkers as well as our future generations, making New York a stronger and safer state for years to come."
Gov. Kathy Hochul presents her fiscal year 2024 executive budget proposal in the Red Room at the State Capitol. (Photo by Mike Groll/Office of Gov. Kathy Hochul)
Per a press release:
Hochul's FY 2024 budget proposal reflects New York's steady finances, even as global economic trends send mixed signals. All funds spending is $227 billion growing 2.4%. Deposits to reserves that had been planned for FY 2024 and FY 2025 will be completed by the end of the current year – two years ahead of schedule – for a total of $24 billion secured for a rainy day.
Fixing the Continuum of Mental Health Care
For too long, New York's mental health care system has suffered from underinvestment, and the pandemic only made things harder for New Yorkers with serious mental illness. To address the unmet mental health needs of New Yorkers, Hochul will make a long-term, $1 billion investment to transform New York's continuum of mental health care. This comprehensive, multi-year plan includes allocating:
√ $915 million in capital to develop new residential units, plus $127 million in annual operating costs.
√ $18 million in capital and $30 million annually to increase operational capacity for inpatient psychiatric treatment.
√ $60 million in capital and $122 million annually to expand outpatient services.
√ $27.5 million annually to improve post-discharge connections to services through the creation of 50 new Critical Time Intervention care coordination teams.
√ $30 million annually to expand mental health services in schools.
Addressing the Housing Crisis
The New York Housing Compact is a comprehensive, multifaceted proposal to address a historic housing shortage in New York state and build 800,000 new homes over the next decade. In addition to setting local housing targets in every New York municipality, emphasizing transit-oriented development, removing barriers to housing creation, and incentivizing new construction, Hochul's plan includes:
√ $250 million for infrastructure upgrades and improvements to support local housing growth and development.
√ $20 million for planning and technical assistance to support local rezoning efforts and other solutions to drive growth.
√ $15 million for a new statewide data collection effort.
√ $4 million to create a new Housing Planning Office within Homes and Community Renewal to support localities in meeting their housing goals and coordinate planning efforts across the state.
√ $39.8 million to reduce the risk of lead exposure in rental properties outside of New York City, including $20 million in assistance to property owners for building remediation.
√ $50 million for the creation of a statewide Homeowner Stabilization Fund to provide critical home repairs in 10 key communities with a high concentration of low-income homeowners of color.
In order to unlock thousands of units of housing currently under construction, the executive budget extends the 421-A construction deadline through 2030. The budget also expands HCR's Tenant Protection Unit as part of a multiyear investment to provide targeted support for tenants in upstate New York.
Driving Down Gun Violence, Combatting Fentanyl and Protecting Public Safety
Hochul will make major public safety investments aimed at reducing violent crime and enhancing quality of life. Funding will expand programs and services to further drive down gun violence, reduce recidivism, address the flow of deadly fentanyl, and improve the efficacy of the court system, which was disrupted by the pandemic.
√ $337 million for programs designed to prevent and reduce gun violence, including but not limited to:
$84.1 million for youth employment programs, of which $37 million is for programs in Gun Involved Violence Elimination (GIVE) jurisdictions.
$70 million for communities to respond to the aftermath of gun violence, of which $50 million is for community capital needs.
$36.4 million for the GIVE initiative.
$31.1 million for crime reduction, youth justice, and gang prevention programs.
$25.9 million for State Police Community Stabilization Units (CSUs).
$25 million for the SNUG Street Outreach program.
$18 million for crime analysis centers, including $2 million for crime analysts to combat the flow of fentanyl into communities.
The executive budget proposal also includes:
√ $52 million in aid to prosecution funding for all 62 district attorneys' offices.
√ $40 million to funding to support discovery reform implementation.
√ $31.4 million for alternatives to incarceration programs.
√ $20 million for pretrial services.
√ $10 million to support stipends for volunteer firefighters who complete core training, providing a recruitment and retention incentive to those who serve their communities.
√ $7 million for a new Anti-Fentanyl Innovation Grant.
Expanding Public Transit Access, Affordability, and Safety
Over the past year, Hochul has advanced the completion of the Long Island Rail Road's Third Track project, taken the inaugural ride into Grand Central Madison, broke ground on the Metro-North Penn Station Access project, and pushed other major projects forward, including the Second Avenue Subway and the Interborough Express.
Hochul has worked tirelessly with partners in the MTA, New York City, and the state to strengthen the long-term fiscal stability of the MTA, while ensuring continued progress in rider safety. The executive budget proposal calls for:
√ Implementing over $400 million in MTA operating efficiencies to reduce expenses and improve service to customers.
√ Increasing the top rate of the Payroll Mobility Tax (PMT), generating an additional $800 million annually.
√ Increasing New York City's share of funding for paratransit services, providing students with reduced fare MetroCards, and offsetting foregone PMT revenues for entities exempted from paying the tax, generating nearly $500 million annually.
√ $300 million in one-time state aid to address the extraordinary impact on MTA operating revenues.
√ $150 million annual commitment from the MTA for additional safety personnel.
√ Dedicating a share of $1.5 billion in the licensing fees if three casino licenses are awarded, and a share of an estimated $462 to $826 million in annual tax revenue from the casinos for MTA operations.
Hochul will build on her record investing in transit by making a new historic contribution to expand public transit access and affordability while improving public safety on trains, buses and subways, across the state.
√ $9.1 billion in mass transit operating support, including $809 million in operating support for non-MTA authorities.
√ Nearly $7 billion for the second year of a record $32.8 billion, five-year DOT capital plan to improve highways, bridges, rail, aviation infrastructure, non-MTA transit, and DOT facilities including $1.2 billion for local roads and bridges.
√ $1.3 billion for a commuter-first Penn Station, the Western Hemisphere's busiest transit hub.
√ $20 million for bus electrification for non-MTA authorities, and $20 million to rehabilitate NFTA's light rail.
Additionally, Hochul will take action to fight toll and speed camera evasion. A new law will authorize law enforcement and the Department of Motor Vehicles to levy increased penalties on drivers whose license plates are knowingly altered to make them unreadable in photographs, including increased fines and registration denials. The law will also enable law enforcement to seize materials affixed to license plates that are designed to prevent them from being read by speed and toll collection cameras.
Addressing the Climate Crisis and Investing in Affordable Energy
New York state has one of the nation's most ambitious climate plans focused on creating a cleaner, healthier environment for future generations. Hochul will make a transformative $5.5 billion investment to promote energy affordability, reduce emissions, and invest in clean air and water, building on more than $30 billion committed to climate action.
In her State of the State address, Hochul directed the New York State Department of Environmental Conservation and New York State Energy Research and Development Authority to advance a cap-and-invest program to establish a declining cap on greenhouse gas emissions and invest the proceeds in programs that drive emissions reductions and maintain the competitiveness of New York's industries. Included in the executive budget is a proposed Climate Action Fund, which is expected to deliver more than $1 billion in future cap-and-invest proceeds to New Yorkers every year.
The executive budget includes a proposal to advance renewable generation in New York state by granting the New York Power Authority the ability to help the state meet its aggressive renewable energy targets. The executive budget also includes nation-leading building decarbonization proposals that will prohibit fossil fuel equipment and building systems in new construction, phase out the sale and installation of fossil fuel space and water heating equipment in existing buildings, and establish building benchmarking and energy grades. The new construction proposal includes certain exemptions such as commercial kitchens. The existing equipment phase out proposal does not impact stoves.
In addition to forthcoming investments from the historic Environmental Bond Act passed by voters in 2022, the executive budget includes:
√ $500 million in clean water infrastructure funding and $400 million for the Environmental Protection Fund.
√ $400 million to provide relief to New Yorkers experiencing high electric bills as well as lowering energy burdens through electrifications and retrofits.
√ $200 million for the Office of Parks, Recreation and Historic Preservation to invest in enhancing the improving state parks.
√ A proposal to implement the Waste Reduction and Recycling Infrastructure Act to increase recycling rates, save local governments money, and protect the environment.
New grant program to provide funding for municipalities to investigate and remediate sites contaminated with emerging contaminants like PFAS.
Making Child Care More Accessible and Affordable
With the actions included in the FY 2024 executive budget, Hochul is increasing the state's investment to an unprecedented $7.6 billion over four years to make the child care system more accessible and affordable. This will put New York state on the path toward improving the process of finding child care, widening program eligibility, and supporting the child care workforce. In addition, there will be the following targeted investments:
√ $389 million in underutilized federal funds for a Workforce Retention Grant program.
√ $25 million in foregone revenue to support the Employer Child Care Tax Credit.
√ $4.8 million in state funds for the Employer-Supported Child Care Pilot Program.
Creating a Stronger Health Care System
Building off last year's historic $20 billion investment, Hochul will continue to invest in high-quality health care, address pressing health needs facing New Yorkers, and helping facilities across the state prepare for future public health emergencies. New York's health care system is among the best in the nation, but the pandemic shed light on disparities in the system. The budget seeks to address these disparities by adding more than $1 billion in health care capital funding, expanding Medicaid coverage for 7.8 million low-income New Yorkers, and improving access to aging services and high-quality long-term care:
√ $500 million in multi-year health care capital funding to drive transformative investment that support the state's health care investments.
√ $500 million in multi-year capital grants to support investments in technological investment upgrades, including clinical tech and cybersecurity.
√ $967 million to complete consolidation of Wadsworth Laboratories' five unconnected sites to one site on the W. Averell Harriman Campus in Albany by 2030.
√ $100 million to expand Medicaid coverage of preventative health services and access to primary care.
√ $157 million in New York state's nursing homes and $9 million in New York's assisted living providers, so staff can better provide high-quality care to residents.
√ $60 million beginning in FY 2025 to expand the Medicaid Buy-In program so more New Yorkers with disabilities can work and still qualify for coverage.
√ $39 million to reduce the risk of lead exposure in rental properties outside of New York City.
√ $8 million to revitalize the state's Emergency Medical Services system and $14 million to increase Medicaid reimbursement rates for medical transportation.
√ $12 million to modernize New York state's health reporting systems and build a nation-leading health monitoring and surveillance system.
Boosting New York's Economy
The executive budget includes proposals to strengthen the state's economy and accelerate Hochul's vision of making New York the most business-friendly and worker-friendly state in the nation. The governor has proposed a significant expansion of the state's business attraction programming to create good, high-paying jobs in fast-growing industries like tech, life sciences, and advanced manufacturing.
The governor has also proposed indexing New York's minimum wage to inflation to help workers meet the rising cost of living and a nation-leading plan to offer fully paid parental leave to thousands of New York state employees.
The executive budget also adds:
√ $425 million to invest in local economies, including $225 million in grant funding and tax credits for the Regional Economic Development Councils and $100 million each for the Downtown Revitalization Initiative and “NY Forward.”
√ $60 million in grant funding to support locally sourced school meals and food retailers in underserved communities and regions.
√ $58.5 million to support the state's robust tourism industry, including funding to promote regional attractions and matching grants to assist counties and municipalities with local tourism efforts.
√ $45 million to be made available to GO-SEMI: The Governor's Office of Semiconductor Expansion, Management, and Integration to lead the growth of the state's semiconductor industry.
√ $18.8 million to rebuild New York state's government workforce through critical initiatives to be administered through the Department of Civil Service and Office of General Services.
√ $2 million to help Public Assistance recipients recoup stolen benefits.
√ $1 million for the Department of Agriculture and Markets to develop a stronger food supply workforce pipeline.
As part of Hochul's ongoing commitment to expanding opportunity for New York workers and businesses, the executive budget also establishes the Office of Community and Workforce Development in New York City. The office will require New York City contractors to make best efforts to hire candidates from economically disadvantaged backgrounds and will require the city to consider impacts of penalties for noncompliance on minority- and women-owned businesses, nonprofits, and small businesses.
Providing Critical Assistance to Asylum Seekers
Since asylum seekers began arriving in New York in unprecedented numbers, Hochul has been working to provide assistance and support. The FY 2024 budget sets out a framework through which the financial responsibility for supporting asylum seekers is split evenly: one-third for New York City, one-third for New York state, and one-third for the federal government.
In total, the state will commit more than $1 billion in the coming year on critical initiatives to support asylum seekers, including:
√ $767 million to pay 29% of city shelter/HERRC costs for asylum seekers, consistent with existing state shares for Safety Net Assistance, which already supports city shelters.
√ $162 million for logistical and operational support provided by the National Guard, which has deployed more than 900 service members for this mission.
√ $137 million for health care to support the City of New York, which is providing free health care to certain eligible asylum seekers.
√ $25 million in resettlement funding for asylum seekers through the Office of Temporary and Disability Assistance.
√ $10 million in legal services funding through the Office of New Americans.
√ $6 million to support the shelter site at the Brooklyn Cruise Terminal.
√ $5 million for enhanced migrant resettlement assistance, distributed to refugee resettlement agencies already under contract with OTDA.
Supporting Students and Schools
All New York students deserve a high-quality education, from prekindergarten through college. Hochul will allocate a historic $34.5 billion in total school aid, the highest level of state aid in history. This funding will help give every child in New York the tools to succeed through a high-quality education. Funding for education includes:
√ $24 billion for Foundation Aid – a $2.7 billion increase from last year – to complete Hochul's three-year phase-in to fully funding Foundation Aid for the first time in history.
√ $1.5 billion in new capital projects for SUNY and CUNY.
√ $250 million of the historic increase in Foundation Aid to establish high impact tutoring to address learning loss.
√ $125 million expanding prekindergarten to bring the state's annual support for such programs to $1.2 billion.
√ $270 million in new operating support for SUNY and CUNY campuses.
√ $400 million in SUNY transformation capital initiatives, including $200 million for research labs at the University at Buffalo and Stony Brook University and $200 million for a digital transformation of IT infrastructure throughout the SUNY system.
√ $500 million to create the first-ever New York state matching fund for contributions made to the endowments of SUNY's four university centers.
Hochul will also eliminate the regional cap on the number of charter schools in New York City and authorize the reissuance of charters due to surrender, revocation, termination, or non-renewal. These changes will permit the issuance of additional charters in New York City and expand educational opportunities for students.
Senate Republican Leader Rob Ortt said, “In the midst of an unprecedented affordability crisis, the governor presented a state budget that continues to tax and spend without providing any real relief to struggling New York families and businesses. New York is facing a public safety crisis, and yet, there was no specific plan to fix the state’s disastrous bail laws.
“Instead of presenting solutions to make New York more affordable, this budget adds billions of dollars in new spending and imposes a new payroll tax that will hurt downstate New York businesses.
“As the budget process moves forward, the Senate Republican Conference will continue to focus on solutions to make New York safer, stronger, more affordable, and more free.
“New York needs a rescue plan – this isn’t it.”
New York State Comptroller Thomas P. DiNapoli said, “Gov. Hochul introduced her executive budget while many New Yorkers continue to struggle to make ends meet and concerns of a recession grow. Inflation is still too high, and New York still has not regained all the jobs lost during the pandemic. Federal relief aid has provided critical support to the state budget, but will be depleted by the end of the financial plan. New York needs to fund essential programs and services that support quality of life in our state, while also ensuring the long-term sustainability of the state’s finances.
“With two months left in the state’s fiscal year, tax collections remain relatively strong, exceeding the Division of Budget’s mid-year projection by $7.7 billion through December. These funds should be used wisely in this shifting economic landscape, and I am pleased the governor has continued her promise to increase rainy day reserves. Robust increases to reserves will better prepare us for future downturns and challenges.
“I remain concerned about New York’s high debt burden and how it hinders our future, which is why I proposed a roadmap for reform to impose meaningful limits on debt and ban backdoor borrowing. This proposal can serve as the basis for discussion and action to give more power back to voters and return to prudent debt limits and practices.
“My office will release a more detailed analysis of the executive budget in the coming weeks.”
Alliance for Quality Education Executive Director Jasmine Gripper stated, “We applaud Gov. Hochul for keeping her promise to New York’s children by fully funding the Foundation Aid formula at 100% for the first time since its creation nearly two decades ago. The Foundation Aid formula was created to ensure equity and to strategically drive state resources to the students that need it the most. This means that districts with high populations of students in poverty, students that are English language learners and students with disabilities will see a significant increase in state aid.”
“Unfortunately, this historic investment may not reach many of the children in New York City due to the governor’s proposal to drastically expand the number of charter schools in New York City by removing the regional cap and reauthorizing ‘zombie charters’. Allowing a drastic increase in new charter schools in New York City will siphon off millions of resources that would otherwise be going to public schools, which educate 80% of the student population there.
“New York City currently spends about $3 billion per year on charter schools, a price tag that will continue to increase because it is the only district in the nation required to pay rent for charter schools, and the only school district in the state that does not receive charter school transition aid to offset those costs. At a time when New York City is grappling with a declining population of school age children due to a number of factors, there is no justification for increasing the number of charter schools in New York City.
“We urge the New York State Senate and Assembly to completely reject the governor’s proposals to remove the regional cap on charters and reauthorize ‘zombie charters.’ ”
New York Farm Bureau President David Fisher said, “Gov. Hochul said today, ‘Don’t forget the farmers,’ and she didn’t in the proposed state budget. Her economic development plan, prioritized in her budget address, includes a refundable investment tax credit for agriculture that will incentivize improvements on family farms across the state. This is especially needed following years of low commodity prices, high inflation, and a pandemic, all things that have caused deep concern in the farming community. We greatly appreciate this important step forward from the governor, but also express concern that a higher minimum wage rate tied to inflation will be a step backwards. Farms are small businesses facing significant inflation costs, just like all New Yorkers are confronting. Making the cost of production even more expensive raises a red flag for those in the business of feeding this state.
“New York Farm Bureau thanks the governor for additional proposed funding for agriculture, including increased state procurement of local food, $10 million to eliminate food scarcity, which would support farm markets and supply chain improvements, support for NY FarmNet to address mental health needs in the farming community, and $400 million for the Environmental Protection Fund, which includes assistance for farmers to implement sustainable best management practices.
“New York Farm Bureau’s board of directors will be meeting next week to analyze the individual spending lines in the New York State Department of Agriculture and Markets' budget and to determine the organization’s budget priorities. Our members and staff are already engaging with lawmakers to make the case for investments and sound public policy in the final state budget that will support our family farms, food system, and local economies. We look forward to continuing these discussions with the executive branch, legislature and state agencies during the return of New York Farm Bureau’s popular Taste of New York reception Feb. 27 at the Empire State Plaza Convention Center in Albany.”
New York State School Boards Association Executive Director Robert Schneider said, “Gov. Hochul’s 2023-24 budget proposal gives state leaders a running start on delivering a budget that bolsters opportunity for all of our students.
“School boards appreciate the governor’s follow-through on her promise to fully fund foundation aid and her commitment to funding universal prekindergarten programs and school-based mental health clinics.
“In addition to a fully funded foundation aid formula (for the first time ever), the budget proposal includes full funding of the expense-based aids that go to support capital projects, pupil transportation, and educational programs for students with disabilities.
“Importantly, under the governor’ proposal, no school district would be shut out of foundation aid growth, as the budget provides a 3% minimum foundation aid increase.
“We also support the governor’s proposed one-year extension of retiree income waivers, providing schools with an expanded pool of teachers, bus drivers and other experienced professionals to continue supporting students without sacrificing their pension benefits.
“We had hoped to hear more encouraging news about plans to provide universal school meals for all students, now that the federal pandemic-era meals program has expired. We will work with lawmakers to achieve more universal access to school meals and other priorities to support the well-being of students.
“With the full funding of foundation aid realized, school board members anticipate working with lawmakers and education finance experts to plan necessary updates to the foundation aid formula and to ensure that schools receive sufficient, sustainable funding into the future. A strong financial foundation makes stronger public schools.”
New York State United Teachers President Andy Pallotta said, “For years, NYSUT members have been fighting for proper school funding and staff levels. The governor’s proposed budget is a historic step in the right direction that promises to dramatically improve our schools and the communities they serve.
“However, we have grave concerns about the proposal to expand the number of charter schools. This will have a devastating impact on our public schools, especially for our state’s most underserved students. History shows that the corporate charter school industry is interested in making profits, not in the well-being of all students, educators and families. Charters exclude students who don’t fit their business model, and they operate without input from the public or accountability to taxpayers. Where public schools unite our communities, charter schools fracture them.”
The National Federation of Independent Business State Director Ashley Ranslow said, "Small businesses have called for action on the unemployment insurance trust fund for years, and their concerns have been completely dismissed. New York's leaders persist in ignoring the UI trust fund crisis. Their inaction has unnecessarily led to small businesses paying thousands more in taxes and fees. This pain will continue as long as Albany drags its feet. Unfortunately, the potential for substantial cost increases on Main Street aren’t limited to UI. The executive budget also proposes new employer taxes to fund New York City transit and expansive minimum wage mandates as small businesses continue to weather persistent inflation and historic energy costs.
"If New York legitimately wants to bring its economy back to prepandemic levels and address issues of affordability, Main Street businesses and local jobs must be prioritized. All this budget does is make it more expensive to do business in New York."
SAG-AFTRA said, “New York's film and television unions would like to thank Gov. Hochul for her strong support of union workers, union jobs, and union benefits. The governor's proposed enhancements to the film and television tax credit in her executive budget will sustain and create strong union jobs with critical health and retirement benefits for many years to come. These proposed reforms will stem a current loss of production and lift our industry to new heights. Thanks to the governor, New York will remain a strong union state and a global destination for film and television production.”