Highlights of Gov. Kathy Hochul's 2024-25 budget

Highlights of Gov. Kathy Hochul's $233 billion budget proposal for 2024-25:

Health care

The growing number of people on Medicaid and an aging population will require more complex and costly services in the coming years, Hochul said.

A federal Medicaid waiver would allow the state to use $7.5 billion over the next three years to focus on health equity and make it easier for people to access primary care and mental health services. A loan repayment program would be created for health care professionals such as dentists, psychiatrists and clinical nurse specialists who agree to work in underserved neighborhoods.

In an effort to improve health outcomes for mothers and babies, the state would provide financial incentives for hospitals to reduce unnecessary C-sections, and patients would have access to doula services without a referral.

The budget also would target “preventable epidemics” by making testing for HIV part of a routine annual exam and allowing pharmacists to administer vaccines, screen and dispense medication for monkeypox and PrEP, which reduces the chances of contracting HIV from sex or injection drug use. It includes an additional $2 million for prevention of hepatitis C.

School-based health centers would receive more money to provide primary care and dental services.

Hochul has also announced a $25 million commitment to fund research into ALS, commonly known as Lou Gehrig’s disease, a neurogenerative disease that claimed the life of her mother.

Lisa Colangelo

Transportation

Hochul’s proposed budget would boost transportation funding by more than $800 million for the Metropolitan Transportation Authority and by more than $50 million for the state Department of Transportation.

The MTA, which includes the Long Island Rail Road, would receive $1.27 billion in the governor’s budget, an increase of $817 million, or 11.5%. The proposed increase follows Hochul’s MTA bailout last year that raised New York City payroll taxes to generate an extra $1.1 billion annually for the MTA.

Hochul said the budget includes funding for several transit megaprojects. The spending plan includes $45 million to advance the design of the Interborough Express light rail system linking Jackson Heights, Queens, to Bay Ridge, Brooklyn, with a connection to the LIRR’s Brooklyn line. There’s also $16 million to study the feasibility of extending the Second Avenue Subway westward.

Non-MTA transit agencies, such as Nassau’s NICE Bus and Suffolk County Transit, would receive $551 million in state aid under Hochul’s budget, a 5.4% increase.

The state DOT, which maintains roads and bridges, would get $1.27 billion in annual operating funding — an increase of $51 million, or 4.2%.

The state Department of Motor Vehicles would see a 2.1% cut in state aid, from $95 million this year to $93 million. But the budget pledges support for measures to improve DMV services such as online insurance verification.

Hochul proposes to allow New York City to reduce its speed limit to 20 miles per hour, and 10 miles per hour in school zones. It also proposes increasing fines for fare and toll evasion, and forgiving fines for fare beaters qualifying for discount programs for low-income households.

Alfonso A. Castillo

Environment

Hochul's budget proposes a “one-stop shop” for environmental review and permitting of large renewable energy projects. The new process, which would be authorized through the Renewable Action through Project Interconnection and Deployment (RAPID) Act, is intended to speed decision-making while still protecting the environment, according to the budget.

The plan could draw scrutiny from local governments and civic groups that take exception to quick state approvals for projects such as large battery-storage facilities across Long Island and the state. At least three Long Island towns have already declared moratoriums on battery storage units, citing fires at facilities such as one in East Hampton. The state cites a need for upward of 6,000 megawatts of battery storage to help with the transition from fossil-fuel plants to offshore wind and solar energy.

The governor is also requesting:

• $500 million in clean water infrastructure funding over two years, half the amount allocated to clean water projects every year since 2017.
• $400 million for the Environmental Protection Fund, for “critical projects” that “mitigate the effects of climate change” and protect water sources.
• $95 million for state Department of Environmental Conservation capital projects such as rehabilitating campgrounds and repairing wetlands, trails and waterfronts.
• $47 million to plant 25 million trees by 2033 to support New York's net-zero emissions goal.
• $200 million for state parks.
• $150 million for floating and pop-up swimming pools, and renovation and construction of in-ground pools.

Tracy Tullis

Energy

Compared with past years, when hundreds of millions of state dollars were committed to programs such as port development to support offshore wind projects, Hochul’s fiscal 2024 budget is comparatively light on funding for the green-energy sector. The budget includes $50 million to ensure homeowners who fully electrify their houses under a state program called EmPower+ don’t spend more than 6% of their income on electric bills.

Hochul proposes the Affordable Gas Transition Act, which seeks to create a “responsible, equitable and effective gas system transition plan.” According to the administration, the bill would “protect utility customers from bearing the cost of unwarranted investment in fossil-fuel infrastructure.” The measure would establish new rules for the extension of gas service, and eliminate the so-called 100-foot rule requiring utilities to hook up new customers at no charge within around 100 feet of gas service. The new hookups are paid for by other utility customers.

To increase electric vehicle charging infrastructure across the state, the budget anticipates some $175 million in federal funding over five years to expand the network and address driver concerns about traveling long distances with limited battery capacity.

To help fight the increase in the number and severity of cyberattacks across the state, the budget includes $32.9 million for expansion of state programs and agencies with specific roles in cyber protection, including the Cyber Risk Remediation Program and the New York Security Office. Suffolk County in 2022 was hit by one of the longest-lasting and expensive cyberattacks on local government in the nation.

Mark Harrington

Higher education

Hochul’s proposal for higher education includes $1.2 billion for capital projects and $207 million for operations at SUNY and CUNY schools. It includes a $54 million increase in operating funds for SUNY schools. The spending plan also includes $106 million in increased funding for university employee fringe benefits.

SUNY Chancellor John King and the SUNY board of trustees said in a statement that the budget proposal represents an “unwavering commitment to higher education.”

The new capital funding will help maintain SUNY and CUNY facilities and boost investment in new facilities, according to the budget proposal. The proposed capital spending includes $650 million for SUNY state-operated campuses, $384 million for CUNY senior colleges and $154 million for community colleges.

The Executive Budget maintains funding for community colleges at current year levels. Otherwise, community colleges would face a $143 million loss in formula aid due to enrollment declines, according to the budget.

Hochul’s proposal also would require school districts to ensure that all high school seniors complete the FAFSA application for student aid or the New York State Dream Act application.

Joie Tyrrell

Economic development

Researchers at businesses and universities would share $275 million in state grants and other funding over 10 years for their work on artificial intelligence under Hochul’s proposed 2024-25 state budget.

The Empire AI Consortium would include SUNY colleges and lead to the creation of businesses and jobs, Hochul said. Partners include the Simons Foundation, which was started by James and Marilyn Simons, who both have ties to Stony Brook University.

Matt Cohen, CEO of the Long Island Association business group, lauded Empire AI, saying, “Long Island is poised to be a state and nationwide leader in artificial intelligence with our world-class research institutions and academic programs focusing on this cutting-edge field.”

Hochul also wants to spend $100 million to prepare sites for use by out-of-state companies such as high-technology manufacturers and logistics firms that want to move to New York.

For small retailers, Hochul recommended a $3,000 state tax credit to reimburse businesses that spend more than $12,000 on anti-theft measures and join a theft prevention partnership. A total of $10 million would be awarded over two years.

Robert Fonti, a property manager and co-chairman of the Suffolk County Alliance of Chambers Inc., which lobbies for Main Street businesses, said, “With sales being uncertain and thefts rising in stores, this tax credit will help small business fight back while staying afloat in this economy.”

Hochul’s budget proposal includes $225 million for another Regional Economic Development Councils’ competition, in which the state’s 10 regions vie for business aid. She wants $200 million to bolster downtown revitalization and $58.5 million for I LOVE NY tourism promotions.

James T. Madore