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Governor highlights her proposed state budget

Governor highlights her proposed state budget

ALBANY – Governor Kathy Hochul unveiled today the highlights of the FY 2025 budget, which is $233 billion, 4.5 percent more than this year’s.

This budget reflects her stated commitment to using a financially prudent approach that maintains the State on a stable path for years to come while making New York more affordable, living, and safe.

Enhancing Public Safety and Tightening Up on Criminal Activity

The Executive Budget for FY 2025 allocates funds specifically to programs that will bolster efforts to protect the safety of New Yorkers. The following items are funded by New York State’s public safety agencies:

  • $347 million investment in programs to prevent and reduce gun violence.
  • $290 million to restore the effectiveness of the continuum of the criminal justice system.
  • $120 million in victim assistance funding.
  • $40.2 million to address retail theft and bring relief to small businesses.
  • $40.8 million to reduce assaults with a focus on domestic violence.
  • $35 million for the next round of the Securing Communities Against Hate Crimes program.
  • $5 million for the Commercial Security Tax Credit to help business owners offset the costs of retail theft.
  • New legislation to strengthen the Cannabis Law, helping the Office of Cannabis Management and local governments seal or padlock unlicensed businesses.

Reimagining the Mental Health Care Continuum

Although the state’s funding for New York’s mental health system has been inadequate for decades, the FY 2025 Executive Budget increases it by more than 45%, from $3.3 billion in 2022 to $4.8 billion for the whole continuum of care. Among these investments are:

  • $55 million to create 200 new inpatient psychiatric beds.
  • $45 million for youth mental health including school-based services and peer-to-peer counseling.
  • $43 million to keep supportive housing units for people in need of mental health services.
  • $42.2 million to increase reimbursement for mental health treatment services.
  • $37 million to build new programs for unhoused individuals living with mental illness
  • $24 million to help people with mental health problems who are in the criminal justice system.

Record-Shattering Public Education Investments

Since entering office, Governor Hochul has proposed ensuring that every school district uses instructional best practices based on the Science of Reading. He has also increased education funding by record amounts, totaling $6 billion over two years. Governor Hochul is putting forth the largest proposal for education aid in New York State history this year:

  • $35.3 billion in total school aid, an increase of $825 million (2.4 percent) from FY24. This includes a $507 million increase in Foundation Aid.
  • $10 million to train 20,000 teachers and teaching assistants in best practices for evidence-based literacy instructional practices.
  • 4-year extension of Mayoral Control over New York City public schools.
  • $1.2 billion for SUNY and CUNY capital projects.
  • $207 million for SUNY and CUNY operations.
  • $2.75 million for the SUNY Empire State Service Corps, offering students community service work opportunities.
  • $2.5 million for the operating costs of SUNY s participation in the Empire AI consortium.
  • $2 million for SUNY s role in NY SWIMS.
  • $1.5 million for the State Weather Risk Communication Center at the University at Albany.

assisting the health care system in New York

The biggest single expense in the budget of New York State is health care. In order to maintain New Yorkers’ health, Governor Hochul is putting forward historic financing proposals that will also put the Medicaid program on a long-term, financially stable foundation.

  • $35.5 billion for Medicaid, along with targeted and transformational changes to ensure the long-term solvency and sustainability of the Medicaid program.
  • $315 million to provide health insurance subsidies for individuals up to 350 percent of the federal poverty lineenrolled in Qualified Health Plans.
  • $67 million from the Opioid Settlement Fund for harm reduction, prevention and recovery services.
  • $45 million for disability services and independent living opportunities.
  • $25 million to catalyze innovation in research and treatment for ALS and other rare diseases.
  • $6.7 million to become an employment first state for the disability community.

Through an amendment to New York’s Medicaid Section 1115 Demonstration program, the Executive Budget includes $7.5 billion in funding over the next three years ($6 billion federal, $1.5 billion state) to support a comprehensive series of actions to advance health equity, reduce health disparities, and strengthen access to primary and behavioral health care throughout the state.

  • Makes available capital support and provides regulatory flexibilities to help transform safety net hospitals to achieve sustainability.
  • To advance health equity, reduce health disparities, and support the delivery of social care.
  • To incentivize continued delivery system transformation, improve population health and quality, improve the integration of services, and advance health-related social need (HRSN) services.
  • The waiver also includes $550 million in annual funding to support the transition of distressed providers to a new model of care utilizing global budgeting.

Encouraging Opportunity and Economic Growth

One of the main features of the FY 2025 Executive Budget is the continuation of investment in New York’s economic recovery. The goal of Governor Hochul’s economic development plan is to achieve regional economic goals by strategically investing in communities around the state, with an emphasis on sectors where innovation is essential to success.

  • $500 million in capital resources to support the State s $1 billion commitment to expand and modernize the NY CREATES Albany NanoTech Complex.
  • $200 million for the One Network for Regional Advanced Manufacturing Partnerships (ON-RAMP) initiative to establish a network of four new workforce development centers along the I-90 corridor in upstate New York
  • $100 million for the FAST NY program to develop shovel-ready sites to ensure New York s continued attractiveness to large employers and high-tech manufacturing companies.
  • $50 million for the Restore New York Communities Initiative to remove blight, reinvigorate downtowns, and generate economic opportunity in communities statewide.
  • $150 million in new capital grants and $75 million in new Excelsior tax credits to fund projects coordinated and planned by Regional Economic Development Councils.
  • $100 million for another round of the Downtown Revitalization Initiative.
  • $100 million for New York Forward to support the state s rural communities.
  • $275 million to support the Empire AI Initiativeover multiple years, complemented by more than $125 million in multi-year financial commitments from private partners.
  • $56.5 million for tourism and advertising campaigns.
  • $50 million to support an additional round of NYSCA s grant program for capital projects of all sizes at arts organizations across the state.

Better Transit and Safer Roads

The following investments are included in the FY 2025 Executive Budget to continue improving New York’s roads, bridges, and safety:

  • $7.9 billion in State operating aid for the MTA, which Governor Hochul saved from the fiscal cliff in last year s budget.
  • $7.6 billion for the third year of the five-year $32.9 billion Department of Transportation Capital Plan, the largest in New York s history.
  • $577.8 million in funding for the Consolidated Highway Improvement Program (CHIPS) and the Marchiselli Program.
  • $551 million for non-MTA transit in the downstate region.
  • $323 million for transit systems in upstate New York.
  • $100 million for the Pave our Potholes (POP) Program
  • $45 million for engineering on the Interborough Express
  • $16 million to move forward with the planning of the Second Avenue Subway extension to Broadway.
  • Introducing a comprehensive safety package to address the remaining legislative recommendations from the Stretch Limousine Passenger Safety Task Force.

Encouraging Resilience and Combating Climate Change

The nation’s most aggressive climate targets are those set forth by New York. Governor Hochul’s resolve to address the severity and urgency of the climate catastrophe while advancing our economy and safeguarding consumers is demonstrated by the FY 2025 Executive Budget.

Proposals in the Executive Budget will quicken New York’s switch to renewable energy. The Affordable Gas Transition Act will provide new regulations and recommendations pertaining to the extension of gas service in accordance with the Climate Act, shielding utility customers from having to foot the bill for unnecessary investments in fossil fuel infrastructure. The Renewable Action Through Project Interconnection and Deployment (RAPID) Act is also included in the Executive Budget. Its purpose is to streamline the siting of green infrastructure required to meet the State’s climate goals by creating an Office of Renewable Energy Siting (ORES) where major renewable energy and transmission facilities can submit permits and environmental reviews in one convenient location. A proposal to increase the maximum grant award under the Climate Smart Communities program is also included in the Executive Budget in order to assist communities in addressing the environmental, social, and economic difficulties brought on by climate change.

Among the items in the Executive Budget are:

  • $500 million for clean water over two years.
  • $435 million into resiliency projects to protect communities from severe floods, including $250 million for a voluntary buyout program.
  • $400 million for the Environmental Protection Fund.
  • $100 million for the State Superfund Program. $160 million invested in NY SWIMSto address the disinvestment in swimming facilities and lifeguards in underserved communities and an additional $446 million to invest in our State parks and pools.
  • $47 million to plant over 25 million treesacross New York by 2033, as announced in the Governor s 2024 State of the State Address.

Resolving the Crisis of Asylum Seekers and Migrants

Governor Hochul has assumed a major role in assisting the City in managing this situation ever since immigrants and asylum seekers started coming in New York City in unprecedented numbers.

  • $10 million to continue a multi-year investment in support of kitchen facilities that prepare meals for K-12 schools from New York State farm products.

$10 million to expand New York’s bioeconomy and revitalize the state’s aquaculture sector through the Blue Food Transformation

Complete Budget Book accessibleHere

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