Major things to know about the new $229B state budget
The New York State Capitol in Albany. Credit: AP/Hans Pennink
ALBANY — Big raises for schools and mass transit. A change in bail law, but no broad housing plan. More taxes on cigarettes. A new minimum wage going up to $17 per hour.
New York’s state budget, as usual, is a far-reaching plan that does more than just allocate money to the Department of Transportation or the state court system.
The $229 billion plan, approved just days ago by Gov. Kathy Hochul and legislators, tackles a wide range of policy issues — or sometimes omits them. It sets spending levels for items that are massive (K-12 education, Medicaid) and micro (South Fork Commuter Connection bus service).
This year, as in many past years, the key fights centered not on dollars and cents but high-level policy issues, such as housing mandates, bail and charter schools.
Here are things to know about the 2023-24 fiscal plan:
Spending on K-12 school districts will rise almost 10%, topping more than $34 billion. This includes a more than 10% hike in prekindergarten funding and a $134 million spending increase to allow more districts to qualify for a federal program to provide free meals at schools.
In a rarity for state politics, school spending was not a negotiation issue, as Hochul and lawmakers quickly agreed to a big increase.
There will be no tuition hike for in-state students at the State University of New York or City University of New York systems, after lawmakers knocked down Hochul’s call for a 3% increase. The tuition hike was avoided because lawmakers agreed to a $103 million spending boost to SUNY (about 10%) and $53 million to CUNY (6%).
They also approved $2.4 billion for facilities upgrades at SUNY, CUNY and community colleges.
Currently, the wage downstate is $15 per hour. It will go to $16 in 2024; $16.50 in 2025; and $17 in 2026. Then it will be tied to a consumer inflation index with some exceptions for economic downturns.
Some progressive Democrats and unions had pushed for an immediate jump to $21 per hour.
Hochul succeeded in getting a Democratic-led legislature to once again roll back a part of the landmark 2019 bail-statute overhaul.
Generally, judges have four options when defendants are charged: remand without bail, set bail, release or release with supervision. The 2019 law and later amendments meant that most misdemeanors and nonviolent felonies are no longer subject to bail. It also contained a provision that said judges should use the “least-restrictive means” to ensure a defendant will return for court dates.
Hochul said that provision created confusion for judges who were uncertain if they could set bail even in serious and violent cases — though some Democrats were skeptical of those claims.
In the end, Hochul won and the provision was eliminated.
But the impact probably won’t be limited to just the most serious cases, officials said. Judges now will have more leeway in bail-ineligible cases too: They could, for instance, order a defendant accused of a low-level crime to attend counseling.
Republicans said the change will have little impact, but public defenders and others said it could result in more people awaiting trial in jail without being convicted of a crime.
A focal point of Hochul’s agenda included mandates for boosting housing stock around the state. But it included a mechanism for overriding local zoning in municipalities that failed to meet housing goals — which sank the plan politically.
The Hochul administration also tried to revive 421-a, a controversial tax break incentive for developers. When some Dems suggested a trade for tougher anti-eviction laws, talks halted altogether.
If you have a gas stove in your home, you can keep it. New laws won’t impact existing buildings.
But lawmakers have approved a phased-in ban on fossil fuel hookups for new construction. For residential buildings under seven stories, the ban takes effect in 2026. For taller ones, it’s 2029. The latter deadline also applies to commercial buildings that are fewer than seven stories but cover more than 100,000 square feet.
Further, there are many exceptions, among them: industrial and manufacturing sites, hospitals, car washes, laboratories and restaurants.
New York City previously enacted such a ban, but New York is the first state to do so, officials said.
Long Island and Hudson Valley legislators won a significant victory when Hochul agreed to modify her proposal to raise the “MTA mobility tax” — paid by employers — to apply only to New York City payrolls.
Instead, the Metropolitan Transportation Authority will receive more direct aid from the state and New York City, and will receive a share of revenue from future downstate casinos.
The funding agreement will reduce a proposed fare hike from 5.5% to 4%, according to Hochul. It also will fund five free bus routes in the city.
Lawmakers boosted taxes on cigarettes by $1 — making the state tax $5.35 per pack, the highest in the nation.
But legislators rejected Hochul’s call to ban flavored tobacco products, including menthol.
Hochul, while taking losses on other issues, successfully knocked down the legislature’s bid for higher income taxes on the wealthy as well as higher corporate taxes.
The budget always includes scads of low-profile but important items. Some apply for just one community; some statewide.
This year, these include first-ever protections for unmarked Native American burial sites, authorization for Suffolk County voters to potentially vote on a countywide sewer system, new enforcement tools against illegal cannabis sales, and a voluntary public-financing system for campaigns in which candidates for state offices can match public money with small-dollar donations.
It also includes a change in how casino revenues from non-NYC venues would be divided among local governments in the future. It doubles the share a host municipality gets while reducing the share for neighboring counties. This potentially is important because bidding is currently open for three downstate casino licenses, and sites in Yonkers and Hempstead are in the mix.
ALBANY — Big raises for schools and mass transit. A change in bail law, but no broad housing plan. More taxes on cigarettes. A new minimum wage going up to $17 per hour.
New York’s state budget, as usual, is a far-reaching plan that does more than just allocate money to the Department of Transportation or the state court system.
The $229 billion plan, approved just days ago by Gov. Kathy Hochul and legislators, tackles a wide range of policy issues — or sometimes omits them. It sets spending levels for items that are massive (K-12 education, Medicaid) and micro (South Fork Commuter Connection bus service).
This year, as in many past years, the key fights centered not on dollars and cents but high-level policy issues, such as housing mandates, bail and charter schools.
Here are things to know about the 2023-24 fiscal plan:
Big increases for education, no college tuition hike
Spending on K-12 school districts will rise almost 10%, topping more than $34 billion. This includes a more than 10% hike in prekindergarten funding and a $134 million spending increase to allow more districts to qualify for a federal program to provide free meals at schools.
In a rarity for state politics, school spending was not a negotiation issue, as Hochul and lawmakers quickly agreed to a big increase.
There will be no tuition hike for in-state students at the State University of New York or City University of New York systems, after lawmakers knocked down Hochul’s call for a 3% increase. The tuition hike was avoided because lawmakers agreed to a $103 million spending boost to SUNY (about 10%) and $53 million to CUNY (6%).
They also approved $2.4 billion for facilities upgrades at SUNY, CUNY and community colleges.
Minimum wage moves, in steps, to $17/hour
Currently, the wage downstate is $15 per hour. It will go to $16 in 2024; $16.50 in 2025; and $17 in 2026. Then it will be tied to a consumer inflation index with some exceptions for economic downturns.
Some progressive Democrats and unions had pushed for an immediate jump to $21 per hour.
More discretion for judges
Hochul succeeded in getting a Democratic-led legislature to once again roll back a part of the landmark 2019 bail-statute overhaul.
Generally, judges have four options when defendants are charged: remand without bail, set bail, release or release with supervision. The 2019 law and later amendments meant that most misdemeanors and nonviolent felonies are no longer subject to bail. It also contained a provision that said judges should use the “least-restrictive means” to ensure a defendant will return for court dates.
Hochul said that provision created confusion for judges who were uncertain if they could set bail even in serious and violent cases — though some Democrats were skeptical of those claims.
In the end, Hochul won and the provision was eliminated.
But the impact probably won’t be limited to just the most serious cases, officials said. Judges now will have more leeway in bail-ineligible cases too: They could, for instance, order a defendant accused of a low-level crime to attend counseling.
Republicans said the change will have little impact, but public defenders and others said it could result in more people awaiting trial in jail without being convicted of a crime.
No major housing initiatives
A focal point of Hochul’s agenda included mandates for boosting housing stock around the state. But it included a mechanism for overriding local zoning in municipalities that failed to meet housing goals — which sank the plan politically.
The Hochul administration also tried to revive 421-a, a controversial tax break incentive for developers. When some Dems suggested a trade for tougher anti-eviction laws, talks halted altogether.
Gas stoves banned for new buildings only
If you have a gas stove in your home, you can keep it. New laws won’t impact existing buildings.
But lawmakers have approved a phased-in ban on fossil fuel hookups for new construction. For residential buildings under seven stories, the ban takes effect in 2026. For taller ones, it’s 2029. The latter deadline also applies to commercial buildings that are fewer than seven stories but cover more than 100,000 square feet.
Further, there are many exceptions, among them: industrial and manufacturing sites, hospitals, car washes, laboratories and restaurants.
New York City previously enacted such a ban, but New York is the first state to do so, officials said.
No payroll tax hike for suburbs
Long Island and Hudson Valley legislators won a significant victory when Hochul agreed to modify her proposal to raise the “MTA mobility tax” — paid by employers — to apply only to New York City payrolls.
Instead, the Metropolitan Transportation Authority will receive more direct aid from the state and New York City, and will receive a share of revenue from future downstate casinos.
The funding agreement will reduce a proposed fare hike from 5.5% to 4%, according to Hochul. It also will fund five free bus routes in the city.
Bigger cigarette taxes, but no flavor ban
Lawmakers boosted taxes on cigarettes by $1 — making the state tax $5.35 per pack, the highest in the nation.
But legislators rejected Hochul’s call to ban flavored tobacco products, including menthol.
No tax hikes on wealthy, corporations
Hochul, while taking losses on other issues, successfully knocked down the legislature’s bid for higher income taxes on the wealthy as well as higher corporate taxes.
Deep down in budget, but important
The budget always includes scads of low-profile but important items. Some apply for just one community; some statewide.
This year, these include first-ever protections for unmarked Native American burial sites, authorization for Suffolk County voters to potentially vote on a countywide sewer system, new enforcement tools against illegal cannabis sales, and a voluntary public-financing system for campaigns in which candidates for state offices can match public money with small-dollar donations.
It also includes a change in how casino revenues from non-NYC venues would be divided among local governments in the future. It doubles the share a host municipality gets while reducing the share for neighboring counties. This potentially is important because bidding is currently open for three downstate casino licenses, and sites in Yonkers and Hempstead are in the mix.
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