Schools, trains, groundwater and vapes: Highlights of Gov. Kathy Hochul's 2023-24 budget
Gov. Kathy Hochul's budget released Wednesday would ban flavored tobacco products, like many of these vape devices at a Brooklyn store in 2020. Credit: AP/Marshall Ritzel
New York Gov. Kathy Hochul's budget would expand monthly electric-bill discounts, ban flavored vapes and tobacco, and earmark $60 million to clean up sites contaminated by "forever chemicals."
The spending proposal includes $100 million for pothole repair and tax credits for businesses to expand child care access for employees, as well as plans to tie the state's minimum wage to inflation.
Following are highlights of Hochul's proposed spending plan:
During the 2023-24 school year, Hochul aims to complete a historic three-year expansion of financial assistance intended to provide all school districts, including the poorest, with enough support for quality education.
The governor’s proposed budget would boost statewide school aid next year by $3.1 billion or 10%, to a total $34.5 billion. This would include a $2.7 billion increase in “foundation” aid, tailored in part to the needs of children living in poverty.
The latest increase would bring the total hike in foundation aid over three years to more than $5.6 billion or 30%. Priorities on the spending side will include expansion of prekindergarten classes and “high-impact” tutoring meant to help students catch up on lessons missed during the COVID-19 pandemic.
“We have to prepare the next generation for success,” the governor declared Wednesday.
Hochul and legislative leaders already have agreed in principle on the growth in foundation aid, though final adoption of the 2023-24 portion is not due until April 1.
Typically, breakdowns of statewide aid figures, showing how much money would be allotted to each local school district, are released after governors deliver their overall budget messages. On Long Island, school leaders generally have supported the state’s aid-expansion plans.
“It’ll certainly help schools close the gap between inflationary costs for their budgets and the amount of revenue schools can get,” said Bob Vecchio, executive director of the Nassau-Suffolk School Boards Association.
Vecchio added that “schools will be conservative in their budget approach,” due to uncertainties over how much additional state and federal aid will be available beyond 2024.
— John Hildebrand
Hochul’s budget aims to pull the MTA back from what it has called a “fiscal cliff” — a recurring $2 billion operating budget shortfall caused by the COVID-19 pandemic’s impact on ridership.
The budget calls for $300 million in “one-time” state aid, and also a projected $800 million increase in payroll mobility tax revenues that would be achieved by raising the tax on employers to 50 cents for every $100 of payroll — from the current 34 cents — and by closing loopholes “that some individuals have exploited to avoid paying” the tax.
Hochul would also give the MTA a share of $1.5 billion in licensing fees from three new casino licenses, and up to $862 million from taxes generated from the casinos.
The budget also looks to decrease the MTA’s financial burden by having New York City pick up an additional $500 million in costs, including for transporting city residents with disabilities, and students.
For the state’s roads and bridges, the budget proposes nearly $7 billion for the second year of a $32.8 billion, five-year DOT Capital Plan.
The budget proposes a second year of an annual $100 million for pothole repairs, $150 million for paving and $200 million for bridge projects.
Hochul is also calling for $5 million of new funding for projects that use “complete streets” design initiatives — which require planners to consider the needs of all users, including pedestrians and cyclists — and a five-year, $10 million pilot program to increase transportation options for those without access to transit. That includes up to $1 million for Long Island systems.
— Alfonso Castillo and Lorena Mongelli
HIGHER EDUCATION
The proposed executive budget would increase funding for the SUNY and CUNY systems by $836 million, a 12.6% annual increase.
Annual tuition increases for most institutions would rise based on an inflation index for higher education, or by 3%, whichever is less. The four university centers — at Stony Brook, Buffalo, Binghamton and Albany — could raise tuition even higher by an additional 6 percentage points over SUNY’s base tuition rate for the next five years. It would be capped at 30% above the base rate for in-state students. The higher tuition would provide $97 million in new operating support to SUNY and $31 million for CUNY in the 2024 academic year.
The budget also would create a matching fund for private contributions to the endowments of the four university centers, providing $1 in state funds for every $2 in private contributions, up to $500 million in total state funds.
Hochul also proposed a one-time investment of $200 million to improve IT infrastructure across the SUNY system; $75 million for initiatives supporting innovation, student needs and to help meet future workforce needs; and $200 million for new and renovated research buildings, laboratories, and "state-of-the-art instrumentation" at Stony Brook University and the University at Buffalo.
The budget includes new, recurring support including $176 million for SUNY campuses and $94 million for CUNY senior colleges for general operating support, university employee fringe benefits and financial aid to help cover tuition costs of state residents.
It also provides a "funding floor" for community colleges at 100% of prior year levels to prevent a loss in money due to enrollment declines.
New capital project funding of $1.5 billion would help maintain existing facilities and invest in new ones, including $750 million for SUNY state-operated campuses, $104 million for community colleges, $484 million for CUNY senior colleges and $120 million for CUNY community colleges.
In a statement, Frederick E. Kowal, president of United University Professions, said the executive budget failed to address fiscal crises at 19 state-operated campuses and that the union would lobby for a $160 million distressed campus fund. “The state has a budget surplus — and the means to properly fund SUNY and SUNY’s three teaching hospitals,” he said. “Now is the time to reinvest in all our SUNY campuses and our hospitals, not just a handful of university centers.”
— Carol Polsky
Hochul’s budget includes a $200 million program to expand monthly electric-bill discounts to at least 800,000 more New Yorkers who are making less than the state median income. The program, to be administered by the state Department of Public Service, will help those previously not eligible for low-income bill discounts, which under a current PSEG program can save customers around $35 a month.
The budget also includes $200 million to help low-income residents make their homes more energy efficient. Covered upgrades in the EmPower Plus program administered by the New York State Energy Research and Development Authority would include better home-sealing insulation, energy-efficient appliances and electric-based heating systems, including heat pumps, to move the state away from natural gas and heating oil-based systems.
The two new state programs will be available to income-eligible LIPA ratepayers.
Hochul’s budget-briefing document, like her State of the State last month, includes reference to a new "cap-and-invest" program that would force the biggest emitters of greenhouse gases to purchase special permits to sell carbon-emitting fuels.
“The dirtier the fuel, the bigger the price tag,” Hochul said last month of the program that would provide “$1 billion in revenues that we'll allocate to help cover utility bills, transportation costs, and decarbonization efforts.” The briefing book doesn’t discuss funding for the program, however, noting instead that NYSERDA will “design the program over the coming year.”
— Mark Harrington
Businesses would receive a state income tax credit for increasing the number of day care seats for their employees as part of a larger initiative to increase child care availability statewide.
The tax credit, included in the governor’s 2023-24 proposed state budget, would last for two years and cost the state $25 million in the first year. It’s similar to an existing tax credit that firms in New York City receive, she said.
Hochul would also help employers identify day care options for employees, use $389 million in unspent federal funds for grants to retain child care staff and implement a $4.8 million pilot program to match employer tuition subsidies.
Matt Cohen, CEO of the Long Island Association, praised Hochul’s focus on day care, saying her proposals are “significant investments” that “will help make child care more affordable and accessible, which is crucial to economic growth and participation in the workforce.”
Hochul also wants to tie future hikes of the state minimum wage to the inflation rate, saying it will ensure workers’ living standards aren’t diminished in a recession.
In terms of economic development, she would earmark $845 million to support downtown revitalization, tourism promotion and business expansions, among other initiatives. She also would make the tax credits more generous for film and television companies that bring their productions to New York State.
For small businesses, Hochul would use $6 million to match federal grants awarded to technology startups and extend the application deadline for the COVID-19 Capital Costs Tax Credit Program to Sept. 30.
— James T. Madore
Under Hochul's budget plan, all flavored vaping and tobacco products would be banned. It also increases the cigarette tax from $4.35 to $5.35 per pack.
Hochul said the budget plan includes an additional $1 billion to address health care needs and “to make sure we are prepared for future public health emergencies.”
She said $500 million is targeted to help hospitals and focus on underserved communities where people struggle with poor health.
The state Medicaid costs are continuing to grow, with the state’s share projected to be $34.7 billion in fiscal year 2024 and total enrollment topping 7.9 million by June 2023, according to budget briefing documents.
More than 9 million people on various state public health insurance programs will be screened to determine if they are still eligible for the benefits. The state may also face increased costs in public health insurance due to asylum-seekers and other migrants, officials said.
Medicaid rates for hospitals, nursing homes and assisted living providers will increase by 5%.
One proposal in the budget would address the health care staffing shortage by making it easier for doctors and nurses licensed in other states to practice in New York. Legislation would be needed for New York to join the Interstate Licensure Compact and the Nurse Licensure Compact.
“The health care workforce shortage is unrelenting; we applaud the governor for taking concrete steps to address it,” Wendy Darwell, president/CEO of the Suburban Hospital Alliance of New York State said in a statement.
The budget provides $967 million to complete consolidating the state’s Wadsworth Laboratories, currently spanning five sites, into one new facility in Albany.
There is an annual allocation of $38.8 million to reduce the risk of lead exposure in rental properties in high-risk areas outside of New York City.
Hochul’s budget proposal also includes $10 million over the next five years to create a new program to test municipal water for “emerging contaminants" and per- and polyfluoroalkyl substances (PFAS) chemicals, often referred to as "forever chemicals." The program will focus on small and underserved communities.
— Lisa L. Colangelo
Hochul's budget proposes spending $60 million to clean up sites contaminated with PFAS compounds, which have been linked to cancers and other health impacts. The money will provide grants for municipalities to investigate and remediate affected sites.
Hochul’s budget also includes the Suffolk County Water Quality Restoration Act which would allow the county legislature to consolidate the county’s 27 sewer districts and unsewered areas into one sewer district. Doing so would provide for a “long-term wastewater solution” throughout the county, according to the budget released Wednesday.
The budget also includes Hochul’s Waste Reduction and Recycling Infrastructure Act, which essentially shifts the burden of recycling packaging and paper products from the consumer to the producer. The law would apply to producers who generate more than $1 million in sales and one ton of product annually.
Hochul and lawmakers attempted to pass similar legislation last year but were unsuccessful.
Environmental spending will remain flat in several areas under the proposed budget.
It includes $500 million for clean water infrastructure funding, which will continue to make state money available for water utilities to upgrade their systems and allow municipalities to invest in wastewater treatment.
The Environmental Protection Fund for projects to support environmental initiatives would receive $400 million under Hochul's budget, the same amount as the previous year.
The budget also allots $200 million — the same amount in the current state budget — to improve state parks.
— Vera Chinese
New York Gov. Kathy Hochul's budget would expand monthly electric-bill discounts, ban flavored vapes and tobacco, and earmark $60 million to clean up sites contaminated by "forever chemicals."
The spending proposal includes $100 million for pothole repair and tax credits for businesses to expand child care access for employees, as well as plans to tie the state's minimum wage to inflation.
Following are highlights of Hochul's proposed spending plan:
SCHOOL AID
During the 2023-24 school year, Hochul aims to complete a historic three-year expansion of financial assistance intended to provide all school districts, including the poorest, with enough support for quality education.
The governor’s proposed budget would boost statewide school aid next year by $3.1 billion or 10%, to a total $34.5 billion. This would include a $2.7 billion increase in “foundation” aid, tailored in part to the needs of children living in poverty.
The latest increase would bring the total hike in foundation aid over three years to more than $5.6 billion or 30%. Priorities on the spending side will include expansion of prekindergarten classes and “high-impact” tutoring meant to help students catch up on lessons missed during the COVID-19 pandemic.
“We have to prepare the next generation for success,” the governor declared Wednesday.
Hochul and legislative leaders already have agreed in principle on the growth in foundation aid, though final adoption of the 2023-24 portion is not due until April 1.
Typically, breakdowns of statewide aid figures, showing how much money would be allotted to each local school district, are released after governors deliver their overall budget messages. On Long Island, school leaders generally have supported the state’s aid-expansion plans.
“It’ll certainly help schools close the gap between inflationary costs for their budgets and the amount of revenue schools can get,” said Bob Vecchio, executive director of the Nassau-Suffolk School Boards Association.
Vecchio added that “schools will be conservative in their budget approach,” due to uncertainties over how much additional state and federal aid will be available beyond 2024.
— John Hildebrand
TRANSPORTATION
Hochul’s budget aims to pull the MTA back from what it has called a “fiscal cliff” — a recurring $2 billion operating budget shortfall caused by the COVID-19 pandemic’s impact on ridership.
The budget calls for $300 million in “one-time” state aid, and also a projected $800 million increase in payroll mobility tax revenues that would be achieved by raising the tax on employers to 50 cents for every $100 of payroll — from the current 34 cents — and by closing loopholes “that some individuals have exploited to avoid paying” the tax.
Hochul would also give the MTA a share of $1.5 billion in licensing fees from three new casino licenses, and up to $862 million from taxes generated from the casinos.
The budget also looks to decrease the MTA’s financial burden by having New York City pick up an additional $500 million in costs, including for transporting city residents with disabilities, and students.
For the state’s roads and bridges, the budget proposes nearly $7 billion for the second year of a $32.8 billion, five-year DOT Capital Plan.
The budget proposes a second year of an annual $100 million for pothole repairs, $150 million for paving and $200 million for bridge projects.
Hochul is also calling for $5 million of new funding for projects that use “complete streets” design initiatives — which require planners to consider the needs of all users, including pedestrians and cyclists — and a five-year, $10 million pilot program to increase transportation options for those without access to transit. That includes up to $1 million for Long Island systems.
— Alfonso Castillo and Lorena Mongelli
HIGHER EDUCATION
The proposed executive budget would increase funding for the SUNY and CUNY systems by $836 million, a 12.6% annual increase.
Annual tuition increases for most institutions would rise based on an inflation index for higher education, or by 3%, whichever is less. The four university centers — at Stony Brook, Buffalo, Binghamton and Albany — could raise tuition even higher by an additional 6 percentage points over SUNY’s base tuition rate for the next five years. It would be capped at 30% above the base rate for in-state students. The higher tuition would provide $97 million in new operating support to SUNY and $31 million for CUNY in the 2024 academic year.
The budget also would create a matching fund for private contributions to the endowments of the four university centers, providing $1 in state funds for every $2 in private contributions, up to $500 million in total state funds.
Hochul also proposed a one-time investment of $200 million to improve IT infrastructure across the SUNY system; $75 million for initiatives supporting innovation, student needs and to help meet future workforce needs; and $200 million for new and renovated research buildings, laboratories, and "state-of-the-art instrumentation" at Stony Brook University and the University at Buffalo.
The budget includes new, recurring support including $176 million for SUNY campuses and $94 million for CUNY senior colleges for general operating support, university employee fringe benefits and financial aid to help cover tuition costs of state residents.
It also provides a "funding floor" for community colleges at 100% of prior year levels to prevent a loss in money due to enrollment declines.
New capital project funding of $1.5 billion would help maintain existing facilities and invest in new ones, including $750 million for SUNY state-operated campuses, $104 million for community colleges, $484 million for CUNY senior colleges and $120 million for CUNY community colleges.
In a statement, Frederick E. Kowal, president of United University Professions, said the executive budget failed to address fiscal crises at 19 state-operated campuses and that the union would lobby for a $160 million distressed campus fund. “The state has a budget surplus — and the means to properly fund SUNY and SUNY’s three teaching hospitals,” he said. “Now is the time to reinvest in all our SUNY campuses and our hospitals, not just a handful of university centers.”
— Carol Polsky
ENERGY
Hochul’s budget includes a $200 million program to expand monthly electric-bill discounts to at least 800,000 more New Yorkers who are making less than the state median income. The program, to be administered by the state Department of Public Service, will help those previously not eligible for low-income bill discounts, which under a current PSEG program can save customers around $35 a month.
The budget also includes $200 million to help low-income residents make their homes more energy efficient. Covered upgrades in the EmPower Plus program administered by the New York State Energy Research and Development Authority would include better home-sealing insulation, energy-efficient appliances and electric-based heating systems, including heat pumps, to move the state away from natural gas and heating oil-based systems.
The two new state programs will be available to income-eligible LIPA ratepayers.
Hochul’s budget-briefing document, like her State of the State last month, includes reference to a new "cap-and-invest" program that would force the biggest emitters of greenhouse gases to purchase special permits to sell carbon-emitting fuels.
“The dirtier the fuel, the bigger the price tag,” Hochul said last month of the program that would provide “$1 billion in revenues that we'll allocate to help cover utility bills, transportation costs, and decarbonization efforts.” The briefing book doesn’t discuss funding for the program, however, noting instead that NYSERDA will “design the program over the coming year.”
— Mark Harrington
BUSINESS/JOBS
Businesses would receive a state income tax credit for increasing the number of day care seats for their employees as part of a larger initiative to increase child care availability statewide.
The tax credit, included in the governor’s 2023-24 proposed state budget, would last for two years and cost the state $25 million in the first year. It’s similar to an existing tax credit that firms in New York City receive, she said.
Hochul would also help employers identify day care options for employees, use $389 million in unspent federal funds for grants to retain child care staff and implement a $4.8 million pilot program to match employer tuition subsidies.
Matt Cohen, CEO of the Long Island Association, praised Hochul’s focus on day care, saying her proposals are “significant investments” that “will help make child care more affordable and accessible, which is crucial to economic growth and participation in the workforce.”
Hochul also wants to tie future hikes of the state minimum wage to the inflation rate, saying it will ensure workers’ living standards aren’t diminished in a recession.
In terms of economic development, she would earmark $845 million to support downtown revitalization, tourism promotion and business expansions, among other initiatives. She also would make the tax credits more generous for film and television companies that bring their productions to New York State.
For small businesses, Hochul would use $6 million to match federal grants awarded to technology startups and extend the application deadline for the COVID-19 Capital Costs Tax Credit Program to Sept. 30.
— James T. Madore
HEALTH
Under Hochul's budget plan, all flavored vaping and tobacco products would be banned. It also increases the cigarette tax from $4.35 to $5.35 per pack.
Hochul said the budget plan includes an additional $1 billion to address health care needs and “to make sure we are prepared for future public health emergencies.”
She said $500 million is targeted to help hospitals and focus on underserved communities where people struggle with poor health.
The state Medicaid costs are continuing to grow, with the state’s share projected to be $34.7 billion in fiscal year 2024 and total enrollment topping 7.9 million by June 2023, according to budget briefing documents.
More than 9 million people on various state public health insurance programs will be screened to determine if they are still eligible for the benefits. The state may also face increased costs in public health insurance due to asylum-seekers and other migrants, officials said.
Medicaid rates for hospitals, nursing homes and assisted living providers will increase by 5%.
One proposal in the budget would address the health care staffing shortage by making it easier for doctors and nurses licensed in other states to practice in New York. Legislation would be needed for New York to join the Interstate Licensure Compact and the Nurse Licensure Compact.
“The health care workforce shortage is unrelenting; we applaud the governor for taking concrete steps to address it,” Wendy Darwell, president/CEO of the Suburban Hospital Alliance of New York State said in a statement.
The budget provides $967 million to complete consolidating the state’s Wadsworth Laboratories, currently spanning five sites, into one new facility in Albany.
There is an annual allocation of $38.8 million to reduce the risk of lead exposure in rental properties in high-risk areas outside of New York City.
Hochul’s budget proposal also includes $10 million over the next five years to create a new program to test municipal water for “emerging contaminants" and per- and polyfluoroalkyl substances (PFAS) chemicals, often referred to as "forever chemicals." The program will focus on small and underserved communities.
— Lisa L. Colangelo
ENVIRONMENT
Hochul's budget proposes spending $60 million to clean up sites contaminated with PFAS compounds, which have been linked to cancers and other health impacts. The money will provide grants for municipalities to investigate and remediate affected sites.
Hochul’s budget also includes the Suffolk County Water Quality Restoration Act which would allow the county legislature to consolidate the county’s 27 sewer districts and unsewered areas into one sewer district. Doing so would provide for a “long-term wastewater solution” throughout the county, according to the budget released Wednesday.
The budget also includes Hochul’s Waste Reduction and Recycling Infrastructure Act, which essentially shifts the burden of recycling packaging and paper products from the consumer to the producer. The law would apply to producers who generate more than $1 million in sales and one ton of product annually.
Hochul and lawmakers attempted to pass similar legislation last year but were unsuccessful.
Environmental spending will remain flat in several areas under the proposed budget.
It includes $500 million for clean water infrastructure funding, which will continue to make state money available for water utilities to upgrade their systems and allow municipalities to invest in wastewater treatment.
The Environmental Protection Fund for projects to support environmental initiatives would receive $400 million under Hochul's budget, the same amount as the previous year.
The budget also allots $200 million — the same amount in the current state budget — to improve state parks.
— Vera Chinese
