New York State Capitol

After a month and a day late, New York State finally has a 2024 budget.

The State Legislature finished passing budget bills late Tuesday night for the $229 billion spending plan.

Governor Kathy Hochul was successful in getting changes to bail reform that expands bail consideration for judges.

However, her Housing Compact plan was put on the back burner for further post-budget discussion.

The approved budget also includes more than $34 billion increase in school aid. Jamestown Public Schools will receive $9.5 million more in foundation aid, for total state aid funding of $83,706,514.

New York State of Polictics reports the budget will raise the minimum wage in Upstate New York to $16 in 2026 and index the base pay to the rate of inflation.

The budget does not raise the personal income tax.

A planned ban on natural gas hookups in new construction also passed.

State Senator George Borrello issued a statement calling the budget a “bad budget” that ignores affordability and public safety. On the bail reform change, Borrello said, “The promised changes are nothing but a shell game that will do nothing to reverse the tide of rising crime. Ninety percent of crimes are still not eligible for bail. Judges still do not have the discretion they need to hold dangerous individuals, despite rewording of the ‘least restrictive’ standard.”

Governor Kathy Hochul presents her 2024 State Budget

Governor Kathy Hochul has unveiled her $227 billion state budget for 2024-25.

This budget is $5 billion more than the current year, with a 2.4% increase in all spending.

Hochul said public safety is her top priority, budgeting $337 million.

She is proposing $40 million for funding discovery law changes that have required local prosecutors to make evidence available to defense counsel on a fast basis. The budget also backs $20 million for pre-trial services.

Hochul has also proposed $50 million to aid communities affected by gun violence and $35 million in capital grants for combating hate crimes.

Annual school aid will increase $3.1 billion, or 10%, for a total of amount of $34.5 billion. This includes fully funding the Foundation Aid formula for the first time in 17 years.

Also under education spending is $125 million to expand full day pre-kindergarten and $250 million for tutoring programs to help students recover from learning loss.

As previously announced, Hochul allocated $1 billion toward Mental Health with that multi-year funding going toward the creation of 1,000 inpatient beds, $30 million to expand school-based mental health care, and increased funding for outpatient services.

Hochul wants to expand housing in the state by building 800,000 new units, counting those that are already in development. The budget includes a plan that would allow projects to move ahead over the objections of local zoning regulations if a community is failing to meet targets. Funding for housing includes $250 million for infrastucture support and $20 million for planning assistance.

Child care assistance will receive a $7.4 billion increase over four years. Hochul said this is the most ever. The budget also would provide instant eligibility for child care assistance for anyone receiving government support. Co-pays would be lowered and more support is being proposed for child care providers.

Under health care, the budget seeks to address access issues by adding more than $1 billion in health care capital funding, expanding Medicaid coverage for 7.8 million low-income New Yorkers, and improving access to aging services and high-quality long-term care.

However, the New York State Association of Counties (NYSAC) President Michael Zurlo said Hochul’s budget includes an “unprecedented shift that will saddle local taxpayers” with up to $1 billion in new Medicaid costs by pocketing Enhanced Federal Medical Assistance Program (eFMAP) funds that were intended to go directly to local governments to help hold costs

While there is no personal income tax increase in Hochul’s budget, she is proposing to extend a higher tax rate for wealthy corporations that had been set to expire at the end of the year.

In 2021, former Governor Andrew Cuomo had increased the tax rate for corporations taking in at least $5 million a year in revenue from 6.5% to 7.25%. The increase was only supposed to be temporary and set to end after three years, but Hochul wants to extend it for another three years. The extension would bring in between $800 million and $1.1 billion annually. Democrats are expected to support the extension.

The State Legislature now has until April 1 to approve a fiscal plan.

In past years, the debate has focused on how much the state should spend on public schools. But this year, there’s an additional focus on a proposal from the Governor’s office that would require school districts to provide specific, building-by-building details over how state aid is being spent.

According to the Albany Times-Union, the battle is pitting Gov. Andrew Cuomo against much of the state’s vast education lobby and it presents the possibility of a high-stakes showdown.

Cuomo’s budget director is reemphasizing a proposal the governor floated with his budget presentation in January: under this plan schools that get more than half their funding from the state would have to detail where the money goes on a building-by-building basis. The governor says that should ensure that the biggest increases go to the schools serving the poorest and neediest students, who generally need more academic help. The proposal would also reportedly allow the governor’s budget office to hold back state money if they disapproved of the school district’s “spending statement.”

Public school representatives oppose the idea, who say spending decisions should be made at the local level and not by bureaucrats in Albany.