Gov. Hochul unveiled a record-breaking $227 billion budget proposal packed with progressive spending plans and controversial policies Wednesday — setting the stage for a showdown with state lawmakers for whom it still won’t be enough.
In an afternoon speech in the state Capitol’s Red Room in Albany, Hochul said she wanted to “make it a little bit easier to be a family living here in New York.”
“We set the table for what should be one of the most prosperous times in our state’s history. But if New Yorkers don’t feel safe, they can’t afford to buy a home, they can’t pay their rent, the cost of everything keeps rising — then nothing we’ve done will make a difference,” she said.
“So today we’re here to talk about how we can help — help more New Yorkers realize their dreams. So our agenda focuses on affordability, livability, safety, and includes groundbreaking proposals dealing with housing, mental health, child care, public safety and even a minimum-wage increase during these difficult times.”
Hochul’s executive budget for fiscal 2024, which begins April 1, adds about $5 billion in new spending, including an extra $1.35 billion for New York City, which would get more than $20.9 billion in total state aid.
But the governor is likely to face pressure from fellow Democrats who will likely want even more spending — and who control both chambers of the Legislature with veto-proof majorities.
Following are highlights from Hochul’s proposed budget:
MIGRANTS
Hochul said aid to New York City would include “more than $1 billion in extraordinary funding” to help deal with the escalating migrant crisis.
In her briefing book, she said she “recognizes the effort of governments at all levels to provide services and assist with the resettlement process by providing more than $1 billion in extraordinary funding.”
“The Budget creates a framework for the financial burden of such services to be evenly split between the levels of government: one-third New York City, one-third State, and one-third Federal,” according to her proposal.
“This includes the State reimbursing a share of shelter and Humanitarian Emergency Response and Relief Center costs, continuing the National Guard deployment, and funding health care needs.”
The governor was silent, however, on Mayor Adams’ recent “emergency mutual aid request” for the state to immediately provide housing for an initial 500 migrants.
CRIME
Hochul would increase spending on anti-crime programs by $110 million, to $337 million, including by doubling the funding for the state’s Gun Involved Violence Elimination program outside New York City, from $18.2 million to $36.4 million.
The 17 counties involved in that program would also get $37 million in new funding for youth employment programs. Another $1 million would be earmarked for “the establishment of a dedicated Crime Analysis Center (CAC) in New York City” aimed at “disrupting the illegal narcotics trade and the cycle of gun violence.”
BAIL REFORM
Hochul’s budget proposal contains a minor rollback of the state’s controversial 2019 bail reform law, with the governor calling for the removal of a provision requiring that judges impose the “least restrictive means” to ensure defendants return to court.
Hochul said the move would “restore judicial discretion,” but it falls far short of Mayor Adams’ repeated plea that judges be allowed to consider the potential danger that defendants would pose to the public if they’re freed.
That standard is the law in all 49 other states and the federal court system.
JUSTICE SYSTEM
Hochul’s plan includes $40 million to help the justice system deal with changes to “discovery” rules regarding the disclosure of evidence to criminal defendants.
“This funding will continue to bring to scale the staffing, services, and technologies needed to ensure that criminal cases are processed effectively and efficiently,” according to the briefing book.
Prosecutors have said the stringent rules, part of the same 2019 package that included bail reform, have forced them to dismiss tens of thousands of cases because they’re unable to comply with tight deadlines and other requirements.
A study released by the Manhattan Institute earlier this month also found that the changes were “correlated with a devastating rise in crime and a drop in arrests” from 2019 to mid-October 2021.
Other Hochul plans to “improve the effectiveness of the criminal justice system” would give district attorneys $40 million to hire additional prosecutors, develop anti-crime strategies and reduce case backlogs, and provide $20 million for pretrial services programs to prevent “unnecessary detention while simultaneously keeping communities safe.”
MASS TRANSIT
Hochul proposed a $1.6 billion bailout of the cash-strapped MTA, saying, “For many, many New Yorkers, the MTA is their lifeblood.
“If we don’t invest in that, we won’t be looked at favorably by future generations,” she added.
The plan relies in part on increasing the controversial MTA payroll tax — which applies to all New York City and suburban employers downstate and trickles down to employees — to generate $800 million annually.
In addition, she’ll push City Hall to kick in an additional $500 million to help fund the MTA’s Access-a-Ride service for the disabled and its discounted fares for students.
Hochul also said the MTA would receive the lion’s share of $1.5 billion from the sale of three new casino licenses, as well as most of the future tax revenues, plus a onetime, $300 million infusion of cash.
JOBS
Hochul’s briefing book revealed that the state’s “weak” employment recovery from the COVID-19 pandemic was worse than previously expected — with all job losses not expected to be made up until 2027.
That’s a year later than Hochul forecast last year, and two years later than former Gov. Andrew Cuomo predicted in 2021.
The latest, gloomy analysis by Hochul’s number-crunchers showed that the state had regained just 86.5% of its pandemic-related job losses by the end of 2022, even though “the nation had already recovered all its pandemic-related job losses by August,” according to her briefing book.
“Following an estimated growth of 5.0% in 2022, the State’s labor market outlook remains weak,” it said. “The State’s employment is projected to grow by only 0.7% in 2023, with private sector employment growing by 0.8%.”
EDUCATION
New York City would receive $13.1 billion in school aid from the state under Hochul’s proposed budget, with a $569 million increase in “foundation” aid, the main funding stream for K-12 classrooms.
Hochul would also keep a statewide cap of 460 charter schools but eliminate regional caps to allow the opening of 85 new charters anywhere, including New York City.
The Big Apple is now allowed to have a maximum of 275 charter schools.
GAS STOVES
In a highly controversial move, Hochul’s budget plan would ban the sale of gas stoves and other fuel-powered heating equipment by 2030 and also require that all new buildings be “zero-emission” starting in 2028, with smaller buildings required to go “green” in 2025.
Additional reporting by Bruce Golding
