Hochul Hails Highlights of $229B Fiscal Year 2024 State Budget

Photo Courtesy of Benny Polatseck/Mayoral Photography Office

“Our Fiscal Year 2024 Executive Budget prioritizes our working people’s agenda and keeps our city working for the benefit of all New Yorkers,” Mayor Adams said.

By Michael V. Cusenza

More than a month after the annual April 1 deadline, State legislators and Gov. Kathy Hochul last week finally arrived at an accord, passing a $229 billion Fiscal Year 2024 budget.

Hochul recently announced the highlights of the spending plan:

The governor and State leaders reached an agreement to give judges greater discretion to set bail for the most serious crime offenses. State investments will also 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.

• $347 million — a $120 million increase from the FY 2023 Budget- 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; $25 million for the SNUG Street Outreach program; $7.4 million in additional funding to establish a Supervision Against Violent Engagement program and expand the State’s response to gun violence among the parolee population in GIVE jurisdictions.

Improving Effectiveness and Efficiency of the Criminal Justice System

The Budget also includes funding to improve the effectiveness and efficiency of the criminal justice system:

• $170 million to support improvements to the discovery process for prosecutors and defenders, including $50 million in capital for discovery technology improvements in New York City.
• $100 million in aid for prosecution and defense funding across the state.
• $92 million to offset county costs related to increasing rates paid to lawyers assigned to represent low-income New Yorkers. The Budget increases assigned counsel rates to $158 per hour statewide.
• $31.4 million for alternatives to incarceration programs.
• $20 million for pretrial services.
• $11.5 million for reentry services to help individuals reintegrate to their communities after serving prison sentences.

Improving Public Safety and Protecting New Yorkers

The Budget also includes significant investments designed to protect New Yorkers, including:

• $105 million to upgrade the State Emergency Operations Center.
• $100 million to purchase and renovate a new satellite crime laboratory for the State Police.
• $66.7 million to increase the number of State Police academy classes.
• $25 million to provide capital grants to volunteer fire departments for construction, renovation, or purchase of facilities and equipment.
• $20 million to assist counties in transitioning to Next Generation 911.
• $10 million to provide stipends to volunteer firefighters who complete foundational training.
• $16 million for the state-supported Crime Analysis Center network.
• $7.4 million to allow State Police to keep pace with technology in criminal investigations.
• $7 million to establish an Anti-Fentanyl Innovation Grant.
• $5 million to provide financial assistance to victims and survivors of domestic violence.

Overhauling the Continuum of Mental Health Care

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:

• $890 million in capital to develop new residential units, plus $120 million in annual operating costs.
• $25 million in capital and $7.3 million annually to increase operational capacity for inpatient psychiatric treatment.
• $60 million in capital and $121.6 million annually to expand outpatient services.
• $28 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.

Supporting Students and Schools

Hochul included a record $34.5 billion in total School Aid for school year 2024, making the highest level of State aid ever, and also secured the reissuance of 22 charter schools. The Budget also includes significant investments for SUNY’s Transformation and CUNY’s Strategic Needs.

Funding for education includes:

• $24 billion for Foundation Aid — a $2.6 billion increase from last year – to deliver on Governor Hochul’s promise to fully fund Foundation Aid for the first time in history.
• $150 million expanding prekindergarten to 20,000 children across the state, bringing the State’s annual investment to more than $1.2 billion.
• $134 million to increase access to free school meals.
• $20 million for Early College High School and Pathways in Technology Early College High School funding to allow students to earn college credits in high school, prioritizing students in high-need school districts.
• $2.4 billion in new funding for SUNY and CUNY capital projects to upgrade campus facilities and make strategic investments to support innovation and the growth of both systems.
• $381 million in new operating support for SUNY and CUNY campuses.
• $500 million to create the first-ever New York State matching fund for contributions made to the endowments of SUNY’s four university centers.

Expanding Public Transit Access, Affordability, and Safety

The FY 2024 Budget 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 for the largest businesses in New York City, generating an additional $1.1 billion annually.
• Increasing New York City’s share of funding for paratransit services for two years, generating nearly $165 million annually.
• $300 million in one-time State aid to address the extraordinary impact of the pandemic on MTA operating revenues.
• $35 million in investment to improve subway service on weekday middays, weekends and weeknights.
• $65 million to reduce the proposed fare increase on the MTA from 5.5 percent to 4 percent.
• $35 million in safety investments to protect riders.
• Dedicating $1.5 billion in licensing fees if three downstate casino licenses are awarded, and a share of an estimated $231 to $413 million in incremental annual tax revenue from the casinos for MTA operations.
• $15 million to fund a pilot program providing five fare-free bus routes in New York City and expand the Automated Bus Lane Enforcement program to increase bus speeds and decrease collisions.
• $9.4 billion in mass transit operating support, including $829 million in operating support for non-MTA authorities.
• $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 system.

Creating a Stronger Health Care System

The Budget provides an additional $22 billion multi-year investment to support the State’s health care system, including:

• Substantial Medicaid reimbursement rate increases — a 7.5 percent increase for inpatient hospital services, an up to 7.5 percent increase for nursing homes, and a 6.5 percent increase for outpatient hospital services and assisted living providers. This change, according to Hochul, will provide a $1.2 billion annual gross benefit to health care providers, on top of a State investment of $500 million to support financially distressed hospitals.
• $1.7 billion to fully fund the consolidation of Wadsworth Laboratories’ five unconnected sites to one site on the W. Averell Harriman Campus in Albany by 2030.
• $1 billion multi-year health care capital program to drive transformative health care investments, including $500 million to support investments in technology and cybersecurity.
• $419 million gross investment to improve coverage and expand access to preventive and primary care services for Medicaid beneficiaries.
• $120 million gross investment to expand the Medicaid buy-in program.
• $39 million to reduce the risk of lead exposure in rental properties.
• $36 million gross investment to increase Medicaid reimbursement rates for medical transportation.
• $28 million to support the creation of a new nation-leading health monitoring and surveillance system to inform targeted and appropriate responses to public health crises and to drive broader health care insight.
• $8 million to revitalize the State’s Emergency Medical Services system.
• Increase the cigarette tax by $1—establishing the strongest cigarette tax in the nation.