Proposed $227B NYS Budget Unveiled by Governor Hochul

According to the press release by Governor Hochul’s office on Wednesday, February 1, the proposed Fiscal Year 2024 Executive Budget outlined reflects the Governor’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.” Representing 2.4% growth in spending, the $227 billion budget includes allocations aimed at tackling some of New York City’s most pressing needs including “$1 billion to address the migrant crisis and a multiyear plan to salvage the finances of the city’s ailing subway system,” stating that “the New York City economy drives the state of New York and the M.T.A. helps drive the New York City economy.” However, the state’s budget gap is projected to be $5.7 billion in FY 2025, and a total of $22 billion between 2025 and 2027 should tax revenues lower as a result of a potential recession;” but in an effort to brace the state for future fiscal crisis, Governor Hochul proposed “using a large chunk of this years’ $8.7 billion surplus,” to bring reserves up to more than 15 percent of state spending by the end of this fiscal year. It is anticipated that the proposed budget will face challenges during negotiations with the “more left-leaning” Democrat-controlled State Legislature.

Source:    https://www.governor.ny.gov/news/governor-hochul-announces-highlights-fy-2024-executive-budget

Source:    https://www.nytimes.com/2023/02/01/nyregion/hochul-budget-taxes-bail.html