FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
our new york,
our future
fy2025 nys executive budget | january 16, 2024
governor kathy hochul
budget director blake G. washington
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
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INTRODUCTION
SECTION I
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
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I. INTRODUCTION
Table of Contents..........................................................5
Governor’s Message.....................................................7
Director’s Message.......................................................9
Summary of Budget Documents..............................11
II. EXECUTIVE BUDGET FY 2025
Financial Plan Overview.............................................15
Capital Plan Overview...............................................25
Revenue Actions.........................................................33
Federal Aid and Receipts.........................................39
III. POLICY & PROGRESS
Economic Development...........................................47
Education ....................................................................53
Environment, Energy, and Agriculture..................59
General Government.................................................63
Healthcare....................................................................67
Higher Education........................................................77
Human Services..........................................................83
Local Government.....................................................93
Mental Hygiene.........................................................101
Public Safety...............................................................109
State Workforce.........................................................115
Technology..................................................................121
Transportation...........................................................125
IV. SUPPLEMENTAL REFERENCE
INFORMATION
The Executive Budget Citizen’s Guide.................135
Glossary of Acronyms...............................................139
TABLE
OF CONTENTS
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Governor’s
Message
7
GOVERNOR’S MESSAGE
KATHY HOCHUL
GOVERNOR
In my State of the State, I presented our commonsense vision for the future of New York, to focus on the mental
health crisis, help New Yorkers manage the rising cost of living, and make our state safer.
Through the policies I have laid out in my State of the State and this Budget, my administration will accomplish a
solid, balanced budget without cuts or placing an added burden on taxpayers, all while delivering the programs
and services New Yorkers care about most.
We will do this by taking on categories of crime that remain far too high: like retail theft, domestic violence and
hate crimes. We’ll continue to rebuild our mental health system and keep our young people safe in school and
online. We’re investing in the future leaders of New York by going back to basics with reading, teaching kids to
swim, and focusing on maternal and infant health. We’re also taking steps to make New York more aordable.
This includes decisive action to increase our housing stock, which will help keep New York families in their
homes and reverse the decades long trend of outmigration.
On the heels of two years of incredible growth, this Budget includes transformational investments while
remaining committed to our scally responsible approach. While this budget is the largest in state history, we are
also taking bold steps to control Medicaid spending and ensure our public healthcare programs are sustainable
for the next generation, while also providing assistance for the most vulnerable New Yorkers. We will invest
record resources in our schools and provide aid to New York City as it continues to shelter tens of thousands of
migrants who have arrived in our country over the last two years. We’ll do all of this without raising income taxes
because it isn’t fair to ask New Yorkers to pay any more than they already do. We must continue to be smart and
reasonable during these uncertain times.
We are focused on the areas that will have the highest impact to improve people’s lives, and we will use the
entirety of this responsible yet ambitious budget to address the needs of every New Yorker.
My continued commitment is to ght the right ghts for New Yorkers, and pursue the common good, with
common sense, by nding common ground. Together, we’ll make our New York and our future even stronger.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
DIRECTOR’s
Message
9
DIRECTOR’S MESSAGE
BLAKE G. WASHINGTON
BUDGET DIRECTOR
The FY 2025 Executive Budget reects Governor Hochul’s unwavering commitment to make New York State
safer and more aordable.
The Executive Budget normalizes growth in state spending after two years of historic, yet necessary investments
in public safety, health and mental hygiene, public schools, colleges and universities, and in our social safety net.
While there is always more work to do, stabilization of tax receipts following post-COVID highs requires the
State to live within its current means and begin to address multi-year budget gaps. The Executive Budget sets
the State on a trajectory to make continued, sound, and sustainable investments. It does not raise taxes and
maintains a historic level of reserves to mitigate the impact of any future economic downturn. This budget allows
for prior year investments to be implemented, to mature, and provide their intended benet.
This budget also continues the Governor’s public safety eorts by investing in initiatives to reduce and
prevent gun violence, prevent and prosecute crimes of domestic violence, stop organized retail theft, secure
communities against hate crimes, and strengthen emergency preparedness and response.
Under Governor Hochul’s leadership, the statewide minimum wage was increased at the start of 2024 to
provide meaningful compensation for a days’ work—and those paychecks are already making their way into
New Yorkers’ pockets. In this budget, Governor Hochul further advances her goal to secure the jobs of tomorrow
by establishing new workforce development centers along the I-90 corridor, and by making key investments
to attract industries that will make New York State the home of advanced manufacturing and technological
innovation. Access to good-paying jobs promotes aordability in every region of our state.
We look forward to collaborating with the Legislature, stakeholders, and all New Yorkers to enact a Budget that
maintains the key investments we’ve already made while protecting the aordability of New York: by creating
jobs, aligning spending to actual resources, holding the line on taxes, and resisting the temptation to access
reserves to fuel unsustainable growth.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
SUMMARY OF
BUDGET
DOCUMENTS
11
OVERVIEW
The Executive Budget process and key Budget
documents are governed by the State Constitution,
with additional details and actions prescribed by
state laws and practices that have been established
over time. The State’s budget process is governed
primarily by Article VII of the New York State
Constitution. Article VII requires the Governor to
submit a budget detailing: a plan of expenditures
and an estimate of revenues for the upcoming scal
year; bills containing all proposed appropriations and
reappropriations; and other legislation needed to
implement the Executive Budget.
Two types of budget bills are necessary for the
Executive Budget:
• Appropriation Bills: Executive Budget
Appropriation bills provide the legal authorization
for all proposed spending from the funds
managed by the State. These bills encompass the
recommended funding for State operations, aid
to localities, capital projects, and debt service, as
well as legislative and judiciary bills.
• Article VII Bills: Article VII bills propose
amendments to, or create new, state laws
governing programs, savings, and revenues,
as the Governor deems necessary. These bills
encompass the recommended changes to
law in the areas of: Education, Labor, Family
Assistance, Health and Mental Hygiene, Public
Protection, General Government, Transportation,
Environment, Economic Development, and
Revenue.
In addition to the bills mentioned above, the
Executive Budget includes the following Budget
documents.
THE BIG FIVE
EXECUTIVE BUDGET BRIEFING BOOK
The Executive Budget Brieng Book presents the
Governor’s overall goals for the upcoming scal
year. It explains the State’s Financial Plan, includes
highlights of major initiatives, and a list of the
legislative proposals needed to implement the
proposed Budget.
FIVE-YEAR FINANCIAL PLAN
The Five-Year Financial Plan summarizes the
Governor’s Executive Budget and describes the
“complete plan” of spending and revenues as
required by the NYS Constitution.
FIVE-YEAR CAPITAL PROGRAM AND FINANCING PLAN
The Five-Year Capital Program and Financing Plan
highlights major capital initiatives and objectives and
describes the approach to nancing the capital program.
ECONOMIC AND REVENUE OUTLOOK
The Economic and Revenue Outlook explains the
specic sources of State revenues and presents an
economic outlook for the nation and the State over
the upcoming scal year.
STATE AGENCY PRESENTATIONS
The State Agency Presentations include links to
the mission and functions of each State agency,
descriptions of major Budget actions, and tables
that summarize the agency’s spending by program
and category. This module also includes the budget
requests of the Legislative and Judiciary branches,
which are submitted without revision as required by
the Constitution.
OPEN BUDGET
All Executive Budget bills and documents are
accessible to the public through the Budget Division’s
ocial website, budget.ny.gov, or in print from the
Senate and Assembly document rooms in Albany, NY.
In addition, the public is encouraged to visit the Open
Budget website, openbudget.ny.gov.
SUMMARY OF BUDGET DOCUMENTS
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
II
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
13
EXECUTIVE
BUDGET
FY 2025
SECTION II
FY 2024 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FINANCIAL PLAN
OVERVIEW
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Over the past two years, the State’s nancial position
has strengthened signicantly. Reserves have
increased to the highest levels in history, debt levels
remain nearly at at less than 1 percent growth over
the past decade, historic liquidity levels are delivering
high investment returns, and new reserves have
been established for future costs. The extraordinary
inux of resources during the post-COVID-19 period
fueled these nancial achievements and allowed
the State to make historic investments to adequately
fund essential services and programs. These
investments include fully funding the Foundation Aid
formula; expanding access to mental health services;
increasing assistance to hospitals, other health care
providers and workers; addressing the solvency of
the Metropolitan Transportation Authority (MTA);
aiding the City of New York for the provision of care
for thousands of asylum seekers; increasing wages;
supporting health care delivery improvements;
increasing recurring support for the State University
of New York (SUNY) and City University of New York
(CUNY); addressing gun crime and violence; and
expanding access to child care, housing, school
lunches and energy aordability.
Roughly half of the State Operating Funds budget
supports the State’s two largest program areas –
health care and education. Spending for assistance
and grants in FY 2025 is projected to be nearly $23
billion (32 percent) higher than the level recorded
in FY 2022
1
. Roughly two-thirds of the estimated
growth is concentrated in health care and education,
reecting historic, recurring funding increases for
schools and the health care system. While the
State’s investments over the past two years recur,
the elevated levels of tax receipts that initially
supported the increased funding do not. Following
two-years of substantially stronger tax collections,
New York began to experience a precipitous drop
in tax receipts beginning in FY 2024. The updated
projections for tax receipts
2
in the current year are
expected to decline by 7.8 percent from FY 2023
levels, followed by growth of 2.5 percent in FY 2025
from this lower base. This decline in tax receipts was
also experienced by the Federal government and
other states that rely on personal income taxes as a
signicant share of their revenues.
The long-term, historical average annual growth rate
for tax receipts, which support roughly
80 percent of State Operating Funds spending, is
roughly 4 percent. Tax receipts are projected to grow
on average by 4 percent annually over the Financial
Plan period from FY 2024 levels, while spending is
projected to grow by just over 5 percent on average
through FY 2028, resulting in a structural imbalance.
Accordingly, in preparing the FY 2025 Executive
Budget, the structural General Fund budget gaps
required the State to evaluate multi-year growth
assumptions across all programs to ensure long-term
sustainability within projected resources.
The FY 2025 Executive Budget proposal reduces
the multi-year budget gaps and provides for
balanced General Fund operations on a cash basis
in FY 2025, while preserving existing commitments
and funding new investments to address critical
needs. Proposed savings initiatives are intended to
prudently use resources from New York taxpayers
to continue support for investments made over the
past two years in education, physical and mental
health care, public safety, economic stability, and
environmental protection; and continue to ensure
assistance is available for individuals and entities
with demonstratable need. The Executive Budget
also includes new funding for services and initiatives
consistent with announcements made by the
Governor in her State of the State plan presented on
January 9, 2024. In addition, State Medicaid spending
is increased, consistent with the recently approved
1115 Medicaid Waiver Amendment, and expanded
support to assist the City of New York with aiding
asylum seekers.
In this Financial Plan, DOB is increasing the estimate
for tax receipts and other resources in all years
from the levels forecasted in the Mid-Year Update.
The projection for General Fund tax receipts, over
the multi-year Financial Plan, excluding proposed
extensions, is revised upward by $5.9 billion from
the forecast included in the Mid-Year Update. In the
current year (FY 2024), the upward revision in tax
receipts, combined with the reserve for transaction
risk that was set aside for FY 2024, and other
1
Excludes roughly $3 billion in one-time COVID-19 pandemic assistance and grants spending.
2
Tax receipts and General Fund balance are aected by the Pass-Through Entity Tax (PTET); however, DOB expects
that the PTET will, on a multi-year basis, be revenue neutral for the State. The discussion of tax receipts throughout
the Financial Plan Overview exclude the impact of PTET, unless otherwise noted.
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FINANCIAL PLAN OVERVIEW
revisions, leave an estimated General Fund surplus
of $2.2 billion. The surplus will be used to prepay $1.7
billion in FY 2025 expenses to reduce the budget
year gap, and the remaining $500 million will be set
aside in reserves for future one-time costs related to
assisting asylum seekers.
The Executive Budget maintains Principal Reserves
at 15 percent of State Operating Funds spending to
protect essential services in the event of an economic
downturn, as well as other reserves for dedicated
purposes to manage risks to the Financial Plan and
future costs.
DOB expects that the General Fund will have
sucient liquidity in FY 2025 to make all planned
payments as they become due, and the General Fund
balance will continue to benet the State by providing
high levels of investment income due to elevated
market interest rates. DOB continues to reserve
money on a quarterly basis for debt service payments
that are nanced with General Fund resources.
Money to pay debt service on bonds secured by
dedicated receipts, including PIT bonds and Sales Tax
bonds, continues to be set aside as required by law
and bond covenants.
FY 2025 Executive Budget Financial
Plan Summary
This Financial Plan Update reects the Governor’s FY
2025 Executive Budget proposal and accompanying
legislation introduced on January 16, 2024, as well as
revisions to the projections of receipts and spending in
all years based on results to date, updated forecasts,
and adjustments to programmatic assumptions. DOB
estimates that the General Fund is balanced on a cash
basis in FY 2025, should the Legislature adopt the
Governor’s proposal without modication.
DOB expects the General Fund to end FY 2025
with a balance of nearly $44 billion. Approximately
half of the balance consists of Principal Reserves to
protect essential services in the event of an economic
downturn. The remaining balance is comprised of
other reserves that were previously pledged to
reduce outyear gaps, manage risks and support
future costs that include tax refunds and liabilities,
capital projects, and potential labor agreements.
The Budget supports the implementation and
expansion of various initiatives laid out in the
Governor’s State of the State plan presented to
the Legislature on January 9, 2024, and continues
funding for existing commitments, including increased
funding for Foundation Aid, support for Medicaid and
distressed hospitals, increases in the minimum wage,
and expanded access to aordable child care.
The Executive Budget proposal increases FY 2025
State Operating Funds spending by $5.9 billion (4.5
percent) compared to the prior year, adjusted for
the routine management of resources, execution
of prepayments, and uctuations in the timing of
transactions across scal years that impact reported
spending growth. Nearly two-thirds of the proposed
growth is driven by increased spending on School Aid
and Medicaid.
School Aid
The State provides a substantial amount of nancial
support for public schools through State formula aids
and grants. For over a decade, New York has ranked
the highest in the nation for per pupil spending. In
school year (SY) 2021, New York spent $26,571 per
pupil, 85 percent more than the national average of
$14,347 per pupil
3
. In SY 2024, approximately 2.4
million kindergarten through 12th grade students
are enrolled in the State’s public schools, including
182,000 students enrolled in charter schools.
Compared to SY 2014 levels, enrollment in the
State’s public schools has declined by roughly 10
percent (268,000 students). Despite these enrollment
declines, State aid has continued to increase each
year. From SY 2021 to SY 2024, total School Aid
grew by an average of $2.3 billion (7.7 percent) per
year (excluding the SY 2022 Pandemic Adjustment
restoration), driven primarily by the three-year phase-
in of full funding of the Foundation Aid formula. In
addition to State aid, school districts have continued
to raise revenue through local property tax increases,
3
Based on U.S. Census Bureau,
2021 Annual Survey of School System Finances
.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
4
Excludes District of Columbia. Based on U.S. Census Bureau data and the 2021 Centers for Medicare and Medicaid
Services Financial Report, Expenditure Reports From MBES/CBES.
which when combined with State aid increases and
Federal COVID-19 pandemic related assistance, have
aorded many districts the ability to amass substantial
reserves and surplus balances.
Adding to the historic increases in funding over the
past three years, the Executive Budget includes $35.3
billion for School Aid in SY 2025, an increase of
approximately $921 million (2.7 percent), inclusive of
the State’s full takeover of funding for prekindergarten
expansion grants previously supported with Federal
American Rescue Plan Act of 2021 (ARP) funds.
Excluding the State funds needed to support this
takeover, the School Aid increase for SY 2025 totals
$825 million (2.4 percent). This growth reects a $507
million (2.1 percent) Foundation Aid increase.
Since SY 2022, State-funded School Aid will have
increased by over $6 billion (21 percent), inclusive of
the Executive Budget's proposed increase.
Medicaid
The New York State Medicaid Program provides
health and long-term care coverage to lower-income
children, pregnant women, adults, seniors, and
people with disabilities, and is nanced jointly by the
Federal, State, and Local governments. New York
receives the minimum Federal Medicaid matching
share of roughly 50 percent. Local districts’ costs
have been capped at calendar year 2015 levels,
shifting the increased costs to the State and saving
the City of New York and counties an estimated $7.4
billion in FY 2025. The State oers some of the most
comprehensive and extensive Medicaid benets
in the nation, including optional services such as
coverage for pharmacy and personal care services,
spending $3,582 per capita based on the latest CMS
data (Federal Fiscal Year 2021) , which was more than
an any other state. New York’s per capita spending
was 10 percent higher than the next highest state,
New Mexico which spent $3,245 per capita. Nearly
7.6 million (39 percent) New Yorkers are currently
covered by Medicaid. When combined with other
public insurance coverage, New York has the highest
percent of people covered by publicly funded medical
insurance (Medicaid, Child Health Plus (CHP) and
Essential Plan (EP)) in the nation.
The Medicaid program is also a large contributor
of funding to hospitals and nursing homes through
various supplemental programs. Medicaid spending
growth continues to escalate as utilization of
the system, primarily Managed Long Term Care
(MLTC), rises with an aging population. In FY 2025,
Department of Health Medicaid spending is projected
to total $30.9 billion, an increase of $3 billion (10.9
percent) from the revised FY 2024 levels, including
over $1 billion in savings proposals.
State-share Medicaid spending, including
administrative costs, is projected to be $8.6 billion
(39 percent) higher in FY 2025 than the levels
recorded three years prior in FY 2022.
Other Spending Growth
The Executive Budget also proposes spending
increases to support agency operations and
addresses the State’s many continuing challenges,
including access to mental health care, public safety,
the stability of the State’s health care system, and
an extension and expansion of extraordinary State
funding to continue to assist the City of New York with
providing services and assistance to asylum seekers.
In addition to signicant investments made in the past
two years, the FY 2025 Budget provides funding to
expand mental health services for children and teens
through school and pediatric health care settings;
increases pregnant and postpartum services; grants
the Department of Financial Services (DFS) authority
to hold insurers accountable for mental health
coverage; addresses the opioid epidemic; advances
a plan consistent with the recent Federal government
waiver approval to improve health care delivery; adds
funding for law enforcement activities; increases
access to swimming and instruction; and funds other
program enhancements and initiatives.
The Budget also adds substantial new capital funding
for Articial Intelligence (AI) research and innovation;
economic development initiatives; energy aordability
improvements; incentives for communities to
grow their housing stock; and storm and ood risk
remediation and protection.
19
FINANCIAL PLAN OVERVIEW
State Spending
The Executive Budget proposal drives FY 2025
State Operating Funds spending to $136.2 billion,
an increase of $5.9 billion (4.5 percent) compared to
the current FY 2024 estimate, excluding the routine
management of resources, execution of prepayments,
and uctuations in the timing of transactions and
reimbursements across scal years.
FY 2025 spending growth is largely driven by
Medicaid, School Aid and increased operational
funding for all branches of State government as
agencies continue to strive to restore service capacity
and workforce levels to pre-COVID-19 pandemic
levels.
Medicaid spending is driven largely by elevated
enrollment relative to pre-COVID-19 pandemic levels;
expansion of benets; increases in reimbursement
rates; and growing utilization of the State’s MLTC
program by the State’s aging population.
Spending for assistance and grants has grown
from $72 billion in FY 2022, adjusted to exclude
for COVID-19 pandemic assistance and recovery
spending, to nearly $95 billion of projected spending
in FY 2025. The $23 billion (32 percent) increase
reects historic investments over the preceding years
in education, health care and other assistance and
program growth.
Spending growth is routinely impacted by planned
prepayments and timing-related transactions and
reimbursements. In FY 2025, spending growth
reects the planned payment of
FY 2025 pension expenses in FY 2024; delayed
recoupment from providers of excess payments
attributable to State-only Medicaid payments that
were previously advanced and are now expected in
FY 2025; the expiration of the temporary enhanced
Federal Medical Assistance Percentage (eFMAP)
that lowers Medicaid costs in FY 2024; COVID-19
pandemic related Federal Emergency Management
Agency (FEMA) reimbursements that are expected
to lower spending to oset costs accounted for in
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
prior years; and the impact of prior year debt service
prepayments. Accounting for these transactions, State
Operating Funds spending is projected to total $129.3
billion, an increase of $2.7 billion (2.1 percent).
Including spending for capital projects and spending
supported by the Federal government, All Funds
spending is estimated to total $232.7 billion in FY
2025, an increase of $1 billion
(0.5 percent), from the current scal year estimate.
The increase in All Funds spending is attributable
to the end of COVID-19 pandemic related recovery
and assistance provided through increased Federal
funding and reimbursements, which is partly oset
by signicant increases in capital projects spending
consistent with approved and proposed capital
commitments.
21
Outyear Budget Gaps
The FY 2025 Executive Budget Financial Plan
proposal provides savings that reduces the outyear
budget gaps to $5 billion in FY 2026, $5.2 billion in
FY 2027, and $9.9 billion in FY 2028 in comparison
to the Mid-Year Update. If the FY 2026 Budget is
balanced with recurring savings, the budget gap for
FY 2027 would be nearly eliminated and the FY 2028
gap would be reduced to roughly $5 billion.
The outyear budget gaps are the result of a structural
imbalance between the forecasted levels of spending
growth and available resources. The gaps include
Medicaid spending projections that exceeds the
global cap beginning in FY 2026, which is partly
due to $1.7 billion in additional State spending over
the multi-year Financial Plan to leverage roughly $6
billion in additional Federal Medicaid funding, as well
as upward revisions reecting sustained enrollment
levels and spending for MLTC. The projected budget
gaps do not reect the use of any principal reserves
to balance operations but do include the use of prior
year surpluses carried forwarded into future years
and the one-time use of a portion of the Reserve for
Economic Uncertainties to fund additional assistance
to the City of New York to alleviate scal pressures
from asylum seekers in FY 2026.
In addition, the projected budget gap for FY 2027
includes a one-time acceleration of between
$3 and $4 billion in estimated PIT tax receipts due
to the scheduled expiration of the Federal SALT Cap
at the end of 2025 and expectation that taxpayers
will seek to benet from unlimited SALT deductibility
beginning in tax year 2026. If the Federal government
extends or revises the SALT Cap, the acceleration
would likely be substantially less, which would reduce
tax receipts and increase the budget gap for FY 2027
by a concomitant amount.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Lastly, the FY 2028 projected budget gap reects
the initial impact of the current law sunset at the
end of tax year 2027 of higher tax rates for high
income lers, reverting the schedule to a single top
rate of 8.82 percent. If the current rate schedule
were extended, DOB estimates that PIT withholding
receipts would increase by an amount in the range
of $750 million to $1 billion in the last quarter of FY
2028.
Reserves and Risks
The Financial Plan faces looming economic risks,
including: slowing economic growth; continued price
ination; geopolitical uncertainties; programmatic
cost pressures; uncertainty about the scal conditions
of outside entities relying on State assistance; risks
due to the State’s dependance on Federal funding
and approvals; and uncertainty about the timing and
feasibility of implementing cost savings actions.
While the DOB forecast of receipts and spending is
based on current law and reasonable assumptions
as of the time it was prepared, the timing and impact
of an economic slowdown or downturn is highly
unpredictable, and thus necessitates a prudent level
of reserves to hedge against these risks.
In October 2021, the Governor committed to building
the State’s reserves to 15 percent of State Operating
Funds spending by FY 2025 to ensure that it could
honor its commitments through good and bad
times. This commitment was met two years ahead
of schedule in FY 2023 with a nearly $11 billion
deposit. The FY 2025 Executive Budget preserves
these critical investments and utilizes a portion of the
projected current year surplus to add $500 million for
future costs.
23
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
CAPITAL PLAN
OVERVIEW
25
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Governor Hochul continues to make signicant
infrastructure investments across the State that will
play a critical role in building New York’s future:
creating jobs, growing the economy, increasing
mobility, and keeping New York residents
healthy and safe. The Executive Budget builds
on major investments made over the last two
years in transportation; aordable and supportive
housing; economic and community development;
environmental initiatives; increased access to care
and housing opportunities for individuals with mental
health issues; health care transformation; public
safety; and investments in higher education.
MAJOR INFRASTRUCTURE
INVESTMENTS UNDERWAY
Governor Hochul is committed to delivering
transformative infrastructure projects that are
supported by the State, local governments,
public authorities, private entities, and the
Federal government. The State budget includes
investments in projects that will improve the State's
transit systems, modernize airports, and rebuild
infrastructure to upgrade the State's transportation
network in a timely manner and prepare for future
generations. Major infrastructure investments
currently underway include:
Gateway Hudson Tunnel Project. The rail tunnels
under the Hudson River used by Amtrak play a critical
role as the connection for New England rail trac to
the rest of the eastern seaboard, giving this project
national signicance. These aging tunnels were
seriously damaged by Superstorm Sandy and are in
dire need of repair and expansion. Upon completion,
this project will revitalize existing rails and tunnels,
and add a new, two-track tunnel under the Hudson
River. Project costs are estimated at $16.1 billion.
Pennsylvania Station Area Civic and Land Use
Improvement Project. The State has completed
the transformation of the James A. Farley Post
Oce building into the Moynihan Train Hall and
opened a new, state-of-the-art expanded West End
Concourse at Penn Station. The concourse provides
direct access to 17 of the station’s 21 tracks for Long
Island Rail Road (LIRR) commuters and intercity rail
passengers, oering an underground connection
between the Moynihan Train Hall and Penn Station
via 33rd Street with a direct link to the 8th Avenue
Subway (A/C/E Trains).
Expanding on this vision, Governor Hochul plans
to create a commuter-rst Penn Station. The
reconstructed Penn Station will create a double-
height, light-lled train hall that more than doubles
27
CAPITAL PLAN OVERVIEW
passenger space from 123,000 square feet to
250,000 square feet and nearly doubles the number
of entrances from 12 to 20. The station reconstruction
complements a station expansion that will increase
track and train capacity by 40 percent to more
eectively accommodate the service needs of
travelers and commuters at the busiest transit hub in
the Western Hemisphere. Project costs are estimated
at $22 billion.
MTA 2020-2024 Capital Program. The $52.1 billion
capital program represents the largest investment
in MTA infrastructure in State history, at almost
70 percent larger than any previous program.
The program prioritizes critical investments to
revitalize the subway system, including improving
signal technology, increasing accessibility, and
improving quality of life issues. The capital program
also makes investments in LIRR and Metro North
Railroad commuter rail and bus service upgrades.
The FY 2025 Executive Budget includes funding to
further eorts to expand the MTA’s transit networks,
including:
• The Interborough Express. The Executive Budget
includes $45 million in funding to advance
design and engineering for this project, which will
connect neighborhoods along a 14-mile existing
freight right-of-way from Bay Ridge, Brooklyn,
to Jackson Heights, Queens. The Interborough
Express planning and environmental linkages
study recommended light rail as the preferred
option for providing fast, frequent service
connecting the Interborough with up to 17
dierent subway lines and the LIRR.
• Second Avenue Subway–Expanding West.
With Phase 2 underway, the next major potential
phase of this project is extending the Q line west
along 125th Street, with three new stops at Lenox
Avenue, St. Nicholas Avenue and Broadway in
Manhattanville. The Executive Budget includes
$16 million in funding to advance a feasibility
study, environmental review and preliminary
engineering for this project.
Transforming John F. Kennedy Airport. The State
is proceeding with a historic $19.5 billion plan to
transform John F. Kennedy International Airport
(JFK) into a modern, 21st century airport through
an overhaul of the airport’s eight disparate terminal
sites into one unied JFK Airport. Work will include
demolishing old terminals, utilizing vacant space,
and modernizing infrastructure, while incorporating
the latest in passenger amenities and technological
innovations. This record investment includes $15.6
billion in private sector funding and will increase the
airport’s capacity by at least 15 million passengers
annually. The rst new facilities apart of this
transformation opened in 2023.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FIVE-YEAR CAPITAL PLAN & BUDGET
The State’s Five-Year Capital Plan includes $95 billion
in projected capital spending over a ve-year period.
Funding for the plan will include State bonds, State
PAYGO (Pay-As-You-Go, e.g., taxes and fees); and
Federal funding. The table below outlines capital plan
spending by function and includes funding source.
FY 2025 EXECUTIVE BUDGET CAPITAL
PLAN HIGHLIGHTS
Major initiatives added or continued in FY 2025
include:
Five-Year Department of Transportation Capital
Plan. The Executive Budget includes approximately
$7.6 billion for the third year of a ve-year, $32.9
29
CAPITAL PLAN OVERVIEW
billion Department of Transportation (DOT) Capital
Plan. The DOT Capital Plan leverages Federal funding
commitments made in the Infrastructure Investment
and Jobs Act to support the nal phases of major
infrastructure projects, including the Hunts Point
Interstate Access Improvement and the replacement
of I-81 in Syracuse. The plan also supports new
large-scale projects, including: modernizing the
Livingston Avenue Bridge in Albany; reconnecting
neighborhoods across the Kensington Expressway
in Bualo; converting Route 17 to I-86 in Orange and
Sullivan Counties; and assessing ways to improve
road capacity at the Oakdale Merge in Suolk County.
The DOT Capital Plan also includes an additional $1
billion for the “Bridge NY” program and $1 billion for
the Pave Our Potholes (POP) program, and continues
funding commitments to local highway and bridge
programs at planned levels.
Five-Year Housing Plan. The Executive Budget
continues a $25 billion, ve-year housing plan to
create and preserve 100,000 aordable homes,
including 10,000 homes with support services for
vulnerable populations, and electrify an additional
50,000 homes as part of the State’s plan to
electrify 1 million homes and make another 1 million
electrication-ready. Funding includes $5.7 billion
in State capital resources, $8.8 billion in State and
Federal tax credits and other Federal allocations,
and $11 billion to support the operation of shelters
and supportive housing units and to provide rental
subsidies. Additionally, the FY 2025 Executive
Budget establishes a $500 million fund to support
infrastructure upgrades on State sites and properties
that could be repurposed to create up to 15,000 units
of housing.
Mental Health Capital Investments. The Executive
Budget continues to build on the Governor’s
investments in expanding capacity to care for people
with mental illness by funding an additional 200
new psychiatric inpatient beds. The funding covers
125 State-operated inpatient beds, including 15 for
children and adolescents, 85 for adults, and 25
forensic; and 75 Transition to Home beds.
Empire AI Consortium. The FY 2025 Executive
Budget includes $250 million to create the Empire
AI Consortium, a partnership of New York’s public-
and private-research institutions, that will establish a
state-of-the-art articial intelligence computing center
to promote research and development. In addition
to capital grant funding proposed in the Executive
Budget, Empire AI will be supported with $125 million
from private partners and $25 million from the State
University of New York (SUNY).
High-Technology Research and Development. The
Executive Budget supports continued investment
in high-tech semiconductor manufacturing and
innovation, including:
• $1 billion in new and existing resources to
construct a new 50,000 sq. ft. facility to
support the High NA Extreme Ultraviolet (EUV)
Lithography Center and procure a High NA
EUV tool. This initiative partners with leaders in
the semiconductor industry to establish a next-
generation research and development center at
NY CREATES’ Albany NanoTech Complex.
• $110 million to create One Network for Regional
Advanced Manufacturing Partnerships (ON-
RAMP), an initiative that will construct new
workforce development centers in upstate New
York and provide training opportunities related to
advanced manufacturing.
• $100 million to continue investing in shovel-ready
sites to attract high-tech manufacturing to New
York.
Create Access to Swimming. The Executive
Budget proposes $150 million to create the New
York Statewide Investment in More Swimming (NY
SWIMS), an initiative that will support equitable and
widespread access to safe swimming opportunities.
NY SWIMS includes $60 million to build 10 new
swimming pools in underserved communities, $60
million to develop and install oating pools in natural
waterways, and $30 million for pop-up swimming
pools that can be deployed to communities that
would otherwise not have access to outdoor pools.
Climate and Flood Resiliency. The Executive Budget
includes funding for investments to mitigate damage
from major ooding events, including: $250 million
from the 2022 Clean Water, Clean Air and Green Jobs
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Environmental Bond Act to promote voluntary home
buyouts in communities most vulnerable to ooding;
$130 million for Green Resiliency Grants to support
ood control infrastructure projects; and $40 million
to launch the Resilient and Ready program, which will
support low and moderate income homeowners with
resiliency improvements and assist with repairs in the
event of a catastrophic event.
Clean Water Infrastructure. The Executive Budget
adds $500 million over two years to support
clean water infrastructure, raising the State’s total
investment to $5.5 billion. This funding will support
local construction projects to improve municipal
drinking water distribution, ltration systems, and
wastewater treatment infrastructure.
Clean Water, Clean Air, and Green Jobs Bond Act.
In November 2022, voters approved a $4.2 billion
bond act that will support: capital improvements and
enhancements in ood risk reduction/restorations;
open space, working lands conservation, and
recreation; climate change mitigation; and water
quality improvement and resilient infrastructure.
The Environmental Bond Act supports various
initiatives within the FY 2025 Executive Budget,
including resiliency and land improvement eorts.
In September 2023, Governor Hochul released a
roadmap for P-12 schools to transition bus eets to
zero-emission vehicles funded, in part, with $500
million from the Environmental Bond Act.
Local Capital Grants. In addition to traditional capital
grant programs, the Executive Budget proposes
$135 million for new County Partnership Grants to
support public safety and infrastructure investments.
Additionally, the Budget includes $14.7 million for
grants to local Boards of Election to replace and
upgrade electronic polling equipment, as well as
$15 million for municipalities to purchase equipment
needed to respond to emergency weather events,
including regional ooding.
Public Safety Investments. The Executive Budget
proposes an additional $35 million for the Securing
Communities Against Hate Crimes program, $10
million for Securing Reproductive Health Centers
capital grants, and $50 million of funding for
communities most impacted by gun violence.
Economic and Community Development. The
Executive Budget provides $880 million in new
economic and community development funding
across a number of programs, including $150 million
for the Regional Economic Development Council
(REDC) program; $200 million for the Downtown
Revitalization Initiative, including NY Forward
funding to increase support for rural communities;
$400 million for the New York Works Economic
Development Fund; $50 million for the Restore-NY
Communities program; and $82.5 million for the
Olympic Regional Development Authority (ORDA).
State Parks. The Executive Budget allocates $300
million in capital funding to the Oce of Parks,
Recreation and Historic Preservation, including
investments in public swimming facilities that support
the State’s initiative to provide expanded access
to safe swimming opportunities. Additionally, the
Executive Budget funds the installation of security
equipment in all State Parks.
Agriculture. The Executive Budget proposes new
investments to support New York’s agriculture
industry, including $55 million in capital grants for
on-farm milk storage technologies and processing
infrastructure, $5 million to reinvigorate New
York’s aquaculture industry through the Blue Food
Transformation, and $5 million to grow New York’s
bioeconomy. The Executive Budget also continues a
multi-year $50 million investment to support kitchen
facilities that prepare meals for K-12 schools from New
York State farm products.
Higher Education. The Executive Budget proposes
$1.2 billion in new capital funding for SUNY and
CUNY, including $1.05 billion to maintain and preserve
campus facilities and make strategic investments, and
$154 million for community colleges.
Arts and Education. The Executive Budget supports
investments in cultural arts and education, including
$34 million for library construction grants, $50 million
for capital grants administered by the New York State
Council on the Arts (NYSCA), and $28 million for
State-owned schools.
31
CAPITAL PLAN OVERVIEW
CAPITAL PLAN OVERVIEW
COMMITTED TO DEBT AFFORDABILITY
Governor Hochul is using a disciplined approach
to control and target new borrowing to keep debt
aordable and within the State’s debt limit. The
Capital Plan includes $9 billion of cash resources
for pay-as-you-go capital spending, which is being
used in place of higher cost taxable debt issuances.
This proactive management of the State’s debt costs
will enable the aordable delivery of infrastructure
investments.
State debt will continue to remain aordable as
evidenced by the following debt metrics:
• Over the past decade the State has been
disciplined in its use of debt, while making
signicant investments in the State’s
infrastructure. From FY 2015 to FY 2024, debt
outstanding has increased from $54.2 billion to
$55.9 billion (projected), or an average of 0.3
percent annually. By comparison, in the prior 10
year period, debt grew by 1.6 percent annually.
• State-supported debt is projected to remain
within the statutory debt caps throughout the
Five-Year Capital Plan as a result of the strategic
cash contribution of $9 billion over multiple years
to reduce debt issuances.
• State-related debt outstanding as a percentage
of personal income is expected to remain below
historical levels across the Five-Year Capital Plan
and is projected at 4.8 percent in FY 2029.
• Debt service costs are estimated at $6.4 billion
in FY 2025, after adjusting for debt service
prepayments, which is an increase of 7 percent
from FY 2024.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
REVENUE
ACTIONS
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The FY 2025 Executive Budget continues to build on
the accomplishments of the FY 2024 Budget by:
• Repealing the Cannabis Potency Tax and
replacing it with a weight-based tax to ease tax
compliance for distributors.
• Giving the Tax Department new tools and
extending longstanding provisions that bolster tax
compliance.
• Supporting local governments by creating tax
parity between hotels and the vacation rental
industry.
• Addressing the Supreme Court ruling on local
property tax foreclosures to ensure Counties
can continue to take action on property tax
delinquencies in an appropriate manner.
ECONOMIC BACKGROUND AND
OUTLOOK
At the onset of 2023, the economic outlook was
pessimistic. Elevated ination, rising interest rates,
weak industrial production growth, and consumer and
business expectations pointed to a recession in 2023.
Despite the warning signs, U.S. economic growth
has been strong, continuing to create new jobs and
expand incomes. The downturn expected by many
has been avoided and economic forecasts have been
revised to reect a likely “soft landing.” There are still
challenges ahead. While far below its peaks in 2022,
ination is persistent and the impacts of the restrictive
monetary policy designed to address it are being felt
in nancial markets, the real estate sector (residential
and commercial), and the overall economy. High
interest rates are likely to curb spending, investment,
and employment in the near term.
35
REVENUE ACTIONS
U.S. real Gross Domestic Product (GDP) growth is
expected to slow from an average pace of 2.4 percent
in 2023 to 1.3 percent in 2024. The U.S. economy
should be able to weather the forces inhibiting growth
in the short term and avoid a contraction. Currently
the New York State Division of the Budget does
not foresee a sustained downturn in the levels
of employment, industrial production, retail and
wholesale trade, and personal income, but this
year’s growth rate points to an economy growing
below its long-term potential. In such an economic
environment, an unforeseen economic shock or a
policy mistake could still spur an economic downturn
in the rst half of 2024. If that happens, the recession
is likely to be relatively short-lived and mild compared
to previous recessions in 2001 and 2008-09.
New York State's economy is still on a recovery path
from the impact of the COVID-19 pandemic. As of
November 2023, the State employment was 98.9
percent of its pre-pandemic level, though the nation
as a whole had regained all its job losses by June
2022. The State’s labor market recovery slowed in
2023 due to labor shortages, high interest rates,
and slowing global growth. On average, the State
only gained 6,100 jobs per month in the rst eleven
months of 2023, compared to 26,200 average
monthly job gains in 2022. State employment growth
is projected to decelerate from an estimated growth
of 1.8 percent in 2023 to only 0.1 percent in 2024 due
to the expected slowdown of the national economy
and the continued decline of the State population.
New York State's total wage growth is expected
to decelerate from 5.1 percent for FY 2023 to 3.2
percent growth for FY 2024 due to the slowdown of
the national economy, softening labor markets, and
the continued decline in bonus growth. Total State
wage growth is projected to be 3.8 percent for FY
2025 as the outlook for bonus growth improves. State
personal income is estimated to grow by 3.5 percent
in FY 2024 due to an anticipated 3.6 percent decline
in total bonuses. New York State personal income
growth should pick up somewhat to 4 percent in FY
2025 due to the projected improvement of bonuses
later in the year despite slowing employment growth.
PROVIDING TAX RELIEF TO NEW YORK:
REFORM, SIMPLIFICATION AND OTHER
ACTIONS
Establish the Commercial Security Tax Credit. To
help business owners oset the costs of retail theft
prevention measures, the Executive Budget proposes
to create a $3,000 tax credit for small businesses
that spend more than $12,000 on such measures
and join an anti-prevention partnership. The program
is capped at $5 million annually and is available for
2024 and 2025.
Permanently Extend Authorization to Manage
Delinquent Sales Tax Vendors. The Executive Budget
makes permanent certain provisions concerning
the segregated sales tax account program. In eect
since 2011, these provisions have improved vendor
compliance and reduced the need to pursue costly
collection actions when sales tax collected by
vendors is not remitted in a timely manner to the
Department.
Extend Certain Sales Tax Exemption Related to
the Dodd-Frank Protection Act for Three Years.
The Dodd-Frank Wall Street Reform and Consumer
Protection Act required certain nancial institutions
to create subsidiaries and then transfer property or
services to those subsidiaries. In order to continue
to address the unintended consequences of the
Federal Act as it pertains to “separate legal entities,”
the Executive Budget extends for three years the tax
exemption, rst provided in 2015, that excludes these
required transfers from taxable sales.
Extend the Sales Tax Vending Machine Exemption
for One Year. The Executive Budget continues to
incentivize an industry shift to cashless vending
machines that can collect sales tax at the point of
sale by extending for one year, the existing sales tax
exemption for certain food and drink purchased from
vending machines ($1.50 or less for items purchased
from vending machines that only accept coin or
currency and $2.00 or less from vending machines
that can accept cashless payments). The current
exemption is scheduled to expire May 31, 2024.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Modernize Tax Law to Include the Vacation Rental
Industry. In order to create a level playing eld
between the growing vacation rental sector and
traditional hospitality industry participants such as
hotels or motels, the Executive Budget subjects all
vacation rentals to State and local sales taxes, as
well as the daily NYC Convention Center hotel fee
of $1.50 per unit. Under these new provisions, any
vacation rental marketplace provider that facilitates
the occupancy of a vacation rental will be responsible
for collecting and remitting the State and local sales
taxes, in addition to the NYC hotel unit fee.
Repeal and Replace the Cannabis Potency Tax.
To promote and support the expansion of the legal
adult-use cannabis market, the Executive Budget
simplies, streamlines, and reduces the tax collection
obligations and burden for cultivators, processors,
and distributors by repealing the wholesale THC
potency tax, and replacing it with a wholesale excise
tax of 9 percent, while maintaining the State retail
excise tax rate of 9 percent and the local retail
excise tax rate of 4 percent. For vertically-integrated
entities such as the Registered Organizations and
microbusinesses where an arm’s length transaction
between the distributor and the retailer is non-
existent, the new wholesale excise tax will accrue on
the nal retail sale to consumers and be imposed on
75 percent of the nal retail sales price.
Provide for the Filing of Amended Sales Tax
Returns. Amended sales tax returns are not
contemplated in Sales Tax Law, so there are no clear
rules regarding the process or timeline for ling
amended returns. The Executive Budget addresses
this by clarifying that amended sales tax returns are
subject to similar limitations as other tax lings and
creating clear process standards.
Permanently Extend the Itemized Deduction
Limit on High Income Filers. Since 2010, itemized
deductions for taxpayers with New York adjusted
gross income of more than $10 million have been
limited to 25 percent of the allowed Federal
charitable contribution deduction. The Executive
Budget permanently extends this long-standing limit.
Make Technical Corrections to the Metropolitan
Commuter Transportation Mobility Tax. Legislation
enacted as part of the FY 2024 Enacted Budget
inadvertently repealed the Metropolitan Commuter
Transportation Mobility Tax for self-employed
individuals within suburban Metropolitan Commuter
Transportation District counties. The Executive Budget
corrects this erroneous repeal.
Return Tax Foreclosure Surplus to Property Owner.
When a delinquent property taxpayer experiences
a loss of their property through a foreclosure
proceeding, any equity that has been accumulated
during their ownership has been forfeited in the
past. However, on May 25, 2023, the Supreme
Court unanimously ruled that it is unconstitutional
for localities to unilaterally retain the surplus monies
from a foreclosure. To implement the Supreme Court’s
holding, the Executive Budget provides that when
a tax delinquent property is foreclosed upon by the
county and sold, any money the county receives
that exceeds the liability amount (e.g., overdue
taxes, penalties, interest, mortgage liens, etc.) will
be returned to the property owner, or lienors, as
appropriate.
Clarify Taxable Status of Telecommunications
Property. Under current statute, telecommunications
property is not taxable if it is “used in the transmission
of news or entertainment radio, television or cable
television signals for immediate, delayed or ultimate
exhibition to the public.” The Executive Budget would
clarify that properties are excluded from the denition
of real property, and therefore not taxable, only if
the property is primarily or exclusively used in the
transmission of radio, television, or cable signals.
Permanently Extend the Tax Shelter Provisions. The
Executive Budget permanently extends various tax
shelter provisions that were originally established
in 2005. These include various PIT and Corporate
Tax penalties that promote abusive tax shelters and
the failure to disclose certain transactions, and the
substantial understatement of tax liability.
37
REVENUE ACTIONS
Close the Amended Return Loophole for Personal
Income and Corporation Franchise Taxes. By
changing the limitation on petitions led to the
Division of Tax Appeals, this proposal would allow
the Department of Taxation and Finance to act on
amended returns that are led during or after the
appeals process and aid in their enforcement of
withholding ling and billing processes.
GAMING INITIATIVES
Extend Pari-Mutuel Tax Rates and Simulcast
Provisions for One Year. To maintain the current pari-
mutuel wagering structure in the State, the Executive
Budget extends various expiring Racing, Pari-Mutuel
Wagering, and Breeding Law provisions for an
additional year, as was done in the FY 2024 Enacted
Budget.
Extend Authorized Use of Capital Funds by a
Certain O-Track Betting Corporation for One Year.
To provide nancial exibility, the Executive Budget
extends Capital O-Track Betting Corporation’s ability
to use up to $1 million of its capital acquisition fund for
operational expenses for an additional year, provided
certain conditions are met, as was proposed in the FY
2024 Executive Budget.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FEDERAL AID
& RECEIPTS
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Governor Hochul’s FY 2025 Executive Budget
continues the State’s commitment to responsibly
administering Federal funds and is integral to
managing the complex scal relationship between
the State and the Federal government. The Executive
Budget seeks to ensure Federal funds meant to
support the most vulnerable New Yorkers are
eectively utilized and recent Federal investments in
energy, infrastructure, and advanced manufacturing
are leveraged to meet State goals.
OVERVIEW
Federal funds account for nearly 40 percent of the
New York State budget in FY 2024 and are expected
to fall to about 38 percent in FY 2025. This decrease
in the share of Federal funds expended illustrates the
expiration of one-time Federal COVID relief funds.
The Department of Health is the largest recipient of
Federal funds, primarily due to Medicaid. In addition
to health care, Federal resources are utilized to fund
transportation, education, public protection, human
services, and a number of other services.
FEDERAL FUNDING
Federal funds are predominantly targeted at
programs that support the most vulnerable New
Yorkers and those living at or near the poverty
level, such as Medicaid, Temporary Assistance for
Needy Families (TANF), Elementary and Secondary
Education Act (ESEA) Title I grants, and Individuals
with Disabilities Education Act (IDEA) grants. Other
Federal resources are directed at infrastructure and
public protection.
The Federal resources expected to be utilized in FY
2025 include:
• Medicaid ($52 billion). Federal Medicaid dollars
help support health care for more than 9 million
New Yorkers, including more than 2 million
children. Medicaid is the single largest category
of Federal funding, representing 59 percent of
Federal resources anticipated in the FY 2025
Executive Budget.
• Other Health and Human Services Programs
($20.7 billion). Support from the Federal
government provides for a variety of other health
programs administered by the Department of
Health (DOH), as well as programs administered
41
FEDERAL AID & RECEIPTS
by the Oce of Temporary and Disability
Assistance (OTDA), the Oce of Children and
Family Services (OCFS), Homes and Community
Renewal (HCR), and the Department of Labor
(DOL), among others.
° Specic programs include the Essential
Health Plan, TANF-funded public assistance
benets, Flexible Fund for Family Services,
Home Energy Assistance Program (HEAP)
benets, Supplemental Nutrition Assistance
Program (SNAP) administrative costs, Child
Support Enforcement, Foster Care, and the
Unemployment Insurance Program.
• Education ($8.6 billion). K-12 education, special
education, and higher education receive Federal
support. Similar to Medicaid and other human
service programs, much of Federal education
funding received is directed toward vulnerable
New Yorkers, such as students in high poverty
schools, those with disabilities, and college
students with exceptional need.
• Transportation ($2.8 billion). Federal resources
support infrastructure investments in highway and
transit systems throughout the state, including
funding participation in ongoing transportation
capital plans.
• Public Protection ($2.8 billion). Federal funding
supports various programs and operations of
the State Police, the Department of Corrections
and Community Supervision, the Oce of Victim
Services, the Division of Homeland Security and
Emergency Services, and the Division of Military
and Naval Aairs. Federal funds are also passed
on to municipalities to support a variety of local
and regional public safety programs.
• All Other Funding ($1.2 billion). Several other
programs in the economic development, mental
hygiene, parks and environmental conservation,
and general government program areas are also
supported by Federal resources.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
CORONAVIRUS STATE AND LOCAL
FISCAL RECOVERY FUNDS
In 2021, New York State and its localities were
allocated $23.5 billion through the State and Local
Fiscal Recovery Funds (SLFRF) implemented by the
U.S. Department of Treasury (U.S. Treasury) under the
American Rescue Plan Act (ARP). Of the total funding,
New York State received $12.7 billion in aid, and
nearly $800 million in additional aid to distribute to
localities in the State that did not receive aid directly
from the U.S. Treasury.
To date, the State has utilized $6.85 billion of its
award and completed the distribution of the nearly
$800 million to qualifying localities across FYs 2021
and 2022. The State is scheduled to expend the
remainder of its $12.7 billion award by FY 2025 in
accordance with the table below.
This Federal funding plays a critical role in maintaining
the State’s scal position as New York continues to
recover from the COVID-19 pandemic.
The funds have been used to provide essential
government services and support the individuals,
businesses, and communities that suered during the
COVID-19 pandemic. Pandemic-recovery programs
that utilized SLFRF in FY23 include Restaurant
Resiliency ($750 thousand), Small Business Recovery
Grants ($221 million), Pandemic Rental Assistance
Grants ($149 million) and the Substantially Dedicated
Public Health and Safety Workforce ($1.375 billion).
Additionally, $604 million was used to continue the
provision of critical government services. Through
these eorts, SLFRF assisted 9,944 small and
micro businesses, 14,671 low-income or minority
households, 22,390 full-time public health and safety
workers, and helped to distribute 1 million meals to
those in need across the State.
In FY 2024, New York State will utilize $2.25 billion
to continue critical government services central to
supporting the State’s recovery from the COVID-19
pandemic.
In addition to the SLFRF, New York continues
to centrally manage FEMA reimbursement for
COVID-19 related expenses for State agencies,
departments, and public authorities and maintains
strong internal controls and processes to mitigate the
risk of inappropriately claimed expenses and audit
disallowances.
RECENT FEDERAL ACTIONS
Infrastructure Investment and Jobs Act
The Infrastructure Investment and Jobs Act (IIJA), also
known as the Bipartisan Infrastructure Law (BIL) was
signed into law on November 15, 2021. Nationwide,
the BIL/IIJA provides $550 billion in Federal funding
for infrastructure projects and is expected to fund
an estimated two million jobs per year. Across the
United States, BIL/IIJA is providing increased funding
for infrastructure in cities and villages. New York
State’s local governments will use this funding to
support overdue infrastructure projects – including
transportation networks, water systems and
broadband capabilities.
New York expects to receive more than $13.5 billion
for Federal-aid highway apportioned programs and
bridge replacement and repairs, $9.8 billion over ve
years for improvements to public transportation, $175
million to build a network of electric vehicle charging
stations (EV chargers), and $2.6 billion to improve
water infrastructure to ensure clean, safe drinking
water is available in all communities, among other
fundamental infrastructure projects.
43
FEDERAL AID & RECEIPTS
Ination Reduction Act
The Ination Reduction Act (IRA) was signed into law
on August 16, 2022, providing funding to address
the climate crisis, lower utility costs, and develop
solutions to help New York and other states achieve
lower emissions. IRA funding is expected to be
used for domestic manufacturing of clean energy
technologies, providing more aordable and cleaner
energy. IRA funding is helping New York State tackle
climate change for future generations through lower
energy costs for households and businesses across
New York communities.
To lower energy costs, the IRA includes rebates on
installing new appliances and making household
improvements, tax credits for installing solar panels,
and solar grants to help state and local governments
adopt the latest building energy codes.
CHIPS and Science Act
The Creating Helpful Incentives to Produce
Semiconductors (CHIPS) and Science Act was signed
into law on August 9, 2022, providing over $50 billion
in Federal investment, as well as additional tax credits
for semiconductor manufacturing, research, and
development.
The Executive Budget continues the State’s
successful investments in the semiconductor industry
across Upstate New York and leverages CHIPS
and Science Act investments to further develop
the industry. For example, $40 million was recently
awarded by the U.S. Department of Defense to
an Albany Nanotech led consortium to create the
Northeast Regional Defense Technology Hub through
the Microelectronics Commons program.
NEW YORK’S BALANCE OF
PAYMENTS WITH THE FEDERAL
GOVERNMENT
Each year, the Rockefeller Institute of Government
(RIG) completes a Balance of Payments report that
measures the dierence in total value between each
state’s contributions to and expenditures from the
Federal budget. Initial estimates from RIG indicate that
New York State had a negative balance of payments
in Federal Fiscal Year (FFY) 2022, contrasting the
prior two-years’ net-positive balance of payments. The
COVID-19 pandemic and resulting Federal spending
was the key driver of the State’s positive balance of
payments in prior years. However, Federal spending
in response to the COVID-19 pandemic dropped in
FFY 2022 and the State appears likely to resume its
pre-COVID role as a perennial net-donor state.
Federal Funds Management
New York State maintains robust controls on
spending, and these extend to the receipt and
expenditure of Federal funds. End-to-end Federal
funds management allows the State to monitor the
Federal landscape, advocate for necessary aid, and
centrally manage risk.
New York State regularly monitors key Federal
activities to identify and mitigate risks to the State and
its Financial Plan. Federal action in a wide array of
policy areas can have signicant implications for the
State, its economy, and the Financial Plan. Notable
near-term risks to the Financial Plan include:
• Final FFY 2024 appropriations and the return
of discretionary spending limits. Despite being
more than three months into FFY 2024, Congress
has yet to nalize appropriations for the Fiscal
Year. Cuts to signicant programs on which
the State relies could force the State to make
corresponding cuts to such programs.
• Expiration of the temporary suspension of the
Federal debt limit on January 1, 2025. The
Federal debt limit and the potential for a Federal
Government default are a recurring risk to the
Financial Plan due to the potential implications
for the national economy and the municipal bond
market.
• Expiration of short-term extensions to the Farm
bill and FAA authorizations. The Executive
Budget continues the State’s investments in
airport infrastructure, agriculture, and food
security. Long term reauthorizations without cuts
to programs will provide certainty for the State to
continue its investments going forward.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
• Impending cuts to the Medicaid
Disproportionate Share Hospital (DSH) program.
Cuts to Medicaid DSH would have a signicant
impact on New York’s safety net hospitals. These
cuts are already in law and require legislative
action to be repealed or delayed.
• Asylum seeker and migration response. New
York is actively working to address the current
humanitarian crisis by providing temporary
housing and expanding access to employment
authorization for eligible migrants and asylum
seekers. The State will continue to partner with
the Federal government to secure the resources
necessary to appropriately respond to the
situation.
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FEDERAL AID & RECEIPTS
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
ECONOMIC
DEVELOPMENT
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The FY 2025 Executive Budget will continue to invest
in New York’s economic recovery, the promotion of
job creation, job retention, workforce development,
and the revitalization of every region of the State.
The Executive Budget proposes investing in key
capital projects, emerging and high-impact industries,
and regionally-balanced economic development
strategies.
Governor Hochul’s economic development vision
will focus on industries where innovation is the key
to success leading to the advancement of regional
economic priorities through strategic investments in
communities across the State.
OFFICES AND RESPONSIBILITIES
Together, the Empire State Development
Corporation (ESDC) and the Department of
Economic Development (DED) nance key economic
development projects and provide policy direction to
strengthen New York businesses and industries, and
overall economic growth throughout the state. This
also includes the newly-created Oce of Workforce
Development which leads Governor Hochul’s
comprehensive eort to strengthen the skills and
talents of New York’s workforce. Other State agencies
and public authorities also oversee programs and
investments that support economic development
throughout the State.
CREATING JOBS AND GROWING THE
ECONOMY
A key component of the State’s strategy for
investment and economic development has been the
Regional Economic Development Council initiative,
which is rooted in a bottom-up approach that partners
with local leaders to utilize regional strengths to
support community revitalization and business
growth.
The State also utilizes performance-based programs,
such as the Excelsior Jobs program, to attract
businesses to New York State that require them
to achieve specic employment and investment
goals before they benet from tax credits and other
incentives.
PROPOSED FY 2025 ECONOMIC
DEVELOPMENT BUDGET ACTIONS
Regional Economic Development Councils. The
Regional Economic Development Councils (REDC)
will continue to play a key role in a regionally-driven
strategy to support economic recovery and growth.
The Executive Budget includes a wide spectrum
of funding that will be coordinated with and driven
by strategic plans developed by the REDCs at the
ground level to ensure that available funding is
matched with the unique sector-driven needs and
priorities of each region. The Budget includes core
REDC funding through $150 million in new capital
grants and $75 million in new Excelsior tax credits
through ESDC to fund high value regional priority
projects, which is anticipated to be made available
throughout the year to ensure that projects that are
shovel-ready can be advanced in a timely fashion.
The Executive Budget also includes downtown
and community revitalization initiatives that will
be coordinated with REDC-driven economic
development strategies where appropriate.
Downtown Revitalization. Governor Hochul
is committed to supporting New York State’s
downtowns, large and small, and recognizes that
the strength of the State lies in its partnerships with
local governments. By working together to create
economically, socially, and environmentally healthy
community centers through downtown revitalization,
we can make life better for New Yorkers and help
secure the long-term well-being of the state. To
further revitalize our communities, the Executive
Budget provides $100 million for another round of
the Downtown Revitalization Initiative (DRI), which
has been transforming downtown neighborhoods
into vibrant communities where the next generation
of New Yorkers will want to live, work, and raise
families. Participating communities are nominated
by the State’s 10 REDCs based on the downtown’s
potential for transformation. Each winning community
is awarded funding to develop a downtown strategic
investment plan and implement key projects that
advance the community’s vision for revitalization.
New York Forward. To support New York’s rural
communities, the State will continue its investment in
the NY Forward program, designed to advance the
49
ECONOMIC DEVELOPMENT
renaissance of our smaller downtowns. New York’s
hamlets and villages serve as commercial and social
centers, and support our agricultural, recreational, and
tourism economies. Recognizing the distinct needs
of smaller communities and their niche historical
and cultural assets, the Executive Budget includes
$100 million for rural and smaller communities. Like
the DRI program, NY Forward communities are
selected in partnership with the REDCs, and the
Department of State (DOS) will lead the community
through an abbreviated planning process to develop
a slate of readily implementable projects. The
State’s investment in projects that demonstrate their
ability to accelerate revitalization will strengthen the
competitiveness and improve the future trajectory of
New York State’s small communities and larger urban
centers.
Continued Investment in Tourism. Tourism is New
York's third largest employment sector. To support
this important industry, the Budget continues to make
signicant investments by providing $58.5 million for
the State's robust tourism and advertising campaigns,
which attract visitors from around the world. These
investments include an additional round of $15
million in competitive funding through the Market
NY Program to support tourism marketing plans
and other projects that best demonstrate regional
collaboration among counties to promote regional
attractions, as well as matching grants to assist
counties and municipalities in local tourism eorts, the
I Love NY marketing campaign, and other targeted
investments.
NY CREATES. The FY 2025 budget includes $500
million in capital resources to support the State’s $1
billion commitment to expand Albany’s NY CREATES
NanoTech Complex through the procurement of a
High NA Extreme Ultraviolet lithography tool and
the construction of a cutting-edge High NA Extreme
Ultraviolet Lithography Center that will support
the research and development of the world’s most
complex and powerful semiconductors. The State’s
investment will leverage at least $9 billion in private
spending and investment,and establish signicant
commitments to support and build talent development
pipelines, including through partnerships with the
State University of New York. This public-private
alliance with companies such as IBM, Micron,
Applied Materials and others, will make New York
State home to the nation's most advanced, publicly
owned semiconductor research and development
infrastructure, support the long-term growth of New
York’s tech economy, and create and retain thousands
of direct, indirect, and union construction jobs.
Empire AI. The State will invest $275 million in capital
grants and other funding, complemented by more
than $125 million from private partners, for the Empire
AI initiative. This investment will accelerate pioneering
developments in AI, positioning New York at the
forefront of national eorts of research, innovation,
and economic development in AI.
One Network for Regional Advanced Manufacturing
Partnerships. To meet the increasing demand
for high-skilled workers, the Budget will provide
$200 million in new and existing capital and other
resources to support the launch of the One Network
for Regional Advanced Manufacturing Partnerships
(ON-RAMP) program. ON-RAMP will establish four
new workforce development centers in strategic,
high-impact locations along the I-90 corridor, with
a agship facility in Syracuse. Through the ON-
RAMP initiative, workforce development centers will
oer credentials and training related to advanced
manufacturing with a focus on providing opportunities
for disadvantaged populations.
Redevelopment of Underutilized Sites for Housing.
The FY 2025 Executive Budget includes $250 million
in capital funding for the implementation of the
Redevelopment of Underutilized Sites for Housing
Initiative (NY RUSH). NY RUSH will provide $500
million over two years to assist State agencies in the
repurposing of existing State sites and properties for
use as housing.
Restore New York Communities Program.
Established in 2006-07, the Restore New York
Communities program supported municipal eorts
to demolish, deconstruct, rehabilitate, or reconstruct
vacant, abandoned, condemned, or surplus
properties. The Executive Budget includes $50
million for the program, which has been successful
in jumpstarting local economies and investing in
the future of New York State’s communities. Under
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Governor Hochul’s leadership, this program has been
expanded to target disadvantaged communities and
address not only urban but also rural areas.
FAST NY Shovel-Ready Grant Program. Supported
by a $100 million FY 2025 Budget appropriation,
Empire State Development will provide up to $100
million in grants to prepare and develop sites
statewide to increase its attractiveness to large
employers, including high-tech manufacturing,
particularly semiconductor manufacturing, interstate
distribution, and logistics businesses. The program
will help diversify New York State’s economy
while propelling new investments in businesses,
communities, and job creation.
New County Partnership Grants Program. The
Budget advances $135 million in capital resources
that will support grants to counties outside of
New York City for public safety communication
infrastructure upgrades and enhancements ($85
million), and site development and related costs for
county infrastructure projects ($50 million).
Olympic Regional Development Authority (ORDA)
Capital Improvements. The Budget includes $82.5
million in new capital funding for ORDA to support
continued maintenance and enhancements to
Olympic and other ORDA-owned facilities. Additional
investments in these assets located in the North
Country, Mid-Hudson, and Capital Region will
continue to make New York State a competitive
destination for winter recreation and travel,
attracting large sporting events and International
Championships, and ultimately driving year-
round business and economic sustainability to the
surrounding areas.
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ECONOMIC DEVELOPMENT
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
EDUCATION
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The Executive Budget reects Governor Hochul’s
commitment to education, supporting students,
teachers, and schools with essential resources for a
bright future. Following historic increases in School
Aid over the last three years, the Executive Budget
maintains the State's key investments in education
and increases annual School Aid by $825 million
(2.4 percent), for a record total of $35.3 billion.
Additionally, the Executive Budget includes the
Governor's "Back to Basics" reading plan to ensure
that school districts statewide utilize evidence-based
best practices in their reading instruction.
ABOUT NEW YORK STATE SCHOOLS
• New York State’s 673 major school districts
currently educate approximately 2.2 million
children in kindergarten through 12th grade.
• Public education in New York State represents
a signicant commitment of State and local
resources. With total State, local, and Federal
spending levels exceeding $82 billion in the
2021-22 school year (SY 2022), education is both
the largest area of State spending and the largest
component of local property taxes.
• New York State has ranked rst nationally in
school district spending per pupil for 17 straight
years, a reection of the State’s longstanding
commitment to provide all students with the
opportunity to excel as learners, workers, and
citizens.
• With this Executive Budget, School Aid increases
will total approximately $13 billion over 10 years –
a 57 percent increase over that period. On a per
pupil basis, School Aid will have increased by 5.7
percent per year on average.
• Foundation Aid alone will have increased by
$6.1 billion, or 33 percent, since the State's 2021
commitment to fully fund the formula by SY 2024
– an increase of 7.4 percent per year on average.
BUILDING A STRONG FOUNDATION BY
GOING BACK TO BASICS
Ensuring Evidence-Based Best Practices in Reading
Instruction. Governor Hochul’s “Back to Basics”
reading plan takes statewide action to ensure
that every school district utilizes instructional best
practices grounded in the science of reading. The
Executive Budget requires the State Education
Department (SED) to promulgate instructional best
practices in reading instruction. By September
2025, districts must certify to SED that their reading
curriculum and instructional strategies align with
these best practices. This proposal maintains districts'
autonomy to update their curriculums while ensuring
that students receive eective reading instruction.
To promote adoption of these best practices, the
Executive Budget invests $10 million to support
training through the New York State United Teachers
(NYSUT) Education and Learning Trust for 20,000
elementary school teachers and teaching assistants
across the State.
55
SUMMARY OF SCHOOL AID SPENDING
PROPOSED FY 2025 EXECUTIVE
BUDGET ACTIONS
Overall School Aid Increase. The Executive Budget
provides $35.3 billion in total School Aid for SY
2025, the highest level of State aid in history. This
investment represents an $825 million (2.4 percent)
year-to-year increase, including a $507 million
Foundation Aid increase and a $318 million increase
in all other School Aid programs, including expense-
based aids, categorical aids, and competitive grants.
Foundation Aid. Foundation Aid is the State’s main
education operating aid formula. It is focused on
allocating State funds equitably to all school districts,
especially high-need districts, based on student need,
community wealth, and regional cost dierences.
Following three years of historic growth to fully phase
in the formula, the Executive Budget provides a $507
million (2.1 percent) increase in Foundation Aid for SY
2025. This increase is driven largely by the formula's
ination factor, which the Executive Budget sets at
2.4 percent, representing the average annual change
in the Consumer Price Index (CPI) over the last 10
calendar years (2014-2023), excluding the highest
and lowest years. Through a wealth-based “Transition
Adjustment,” the Executive Budget also allows
districts to retain $207 million of Foundation Aid in
SY 2025 in excess of their respective full funding
targets under the formula, moderating the impact of
enrollment declines. Every school district receives at
least as much Foundation Aid as its full funding target
as calculated under the Executive proposal.
Expense-Based Aids. The Executive Budget fully
funds the current statutory formulas that reimburse
a portion of certain school district expenses, such
as school construction, pupil transportation, shared
services through boards of cooperative educational
services (BOCES), prekindergarten programs, and the
educational costs of certain students with disabilities.
In total, these aid categories are projected to increase
by $318 million (3.2 percent).
OTHER P-12 EDUCATION
The Executive Budget provides funding for new and
recurring initiatives outside of traditional School Aid to
bolster the school system in New York State.
Nonpublic School Programs. Approximately 370,000
students attend roughly 1,700 nonpublic schools
statewide. The Executive Budget provides over
$239 million in aid to reimburse nonpublic schools’
costs for State-mandated activities, a $44 million (23
percent) year-to-year increase, to fully fund estimated
aid payable in SY 2025 and address actual and
anticipated funding shortfalls for SY 2023 and SY
2024 aid. The Budget also continues $73 million in
annual funding for science, technology, engineering,
and math (STEM) instruction and $45 million for health
and safety capital projects, including critical repair
and maintenance of nonpublic schools’ facilities.
Charter Schools. Approximately 182,000 students
attend 343 charter schools in New York State. Charter
schools receive tuition payments made by school
districts, funded through State and local sources;
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
these tuition rates are established for each district
based on the average annual growth in the district’s
spending. Charter school students are included in
the pupil counts used to calculate each district's
School Aid. The State also provides additional aid
to districts with charter school students through the
supplemental tuition and facilities aid reimbursement
programs. The Executive Budget continues this
additional State support, providing a total of $185
million for charter school supplemental tuition and
$120 million for charter school facilities aid.
Preschool and Summer School Special Education
Programs. Approximately 80,000 preschool-age
children with disabilities receive special education
services year-round and 50,000 school-age students
with disabilities receive summer services. Services
are delivered by private providers and special act
school districts, as well as BOCES and school districts
(primarily for summer programs). Counties and
school districts pay for the cost of services in the rst
instance and are partially reimbursed by the State.
The Executive Budget fully funds the State share of
costs for both programs, continuing $1.0 billion to
reimburse counties for the cost of preschool special
education services and providing $404 million, a
$36.5 million (10 percent) year-to-year increase, to
reimburse school districts for the cost of summer
school services.
Special Education Tuition Rate-Setting Reform.
Funding for preschool and school-age special
education providers is determined through a rate-
setting methodology administered by SED. These
providers serve approximately 80,000 preschool
children year-round, 50,000 school-age students
during the summer, and 14,000 school-age students
during the school year. As requested by SED, the
Executive Budget provides an additional $1.4 million
for SED to study and design a new special education
tuition rate-setting methodology in order to streamline
and improve the timeliness of tuition rates for
providers, bringing total available project funding to
$3.9 million. The Executive Budget also extends the
deadline for SED to present its recommendations
from July 1, 2025 to July 1, 2027.
School Food Programs. Approximately 5,000 New
York State schools currently participate in the national
school lunch and breakfast programs, serving
approximately 2.8 million public and nonpublic school
students statewide. The Executive Budget provides
over $200 million in State funding for these programs,
an $11 million (5.8 percent) year-to-year increase.
The Budget continues the FY 2024 State-funded
initiative to incentivize qualifying public and nonpublic
schools with signicant proportions of low-income
students to participate in the Federal Community
Eligibility Provision program, allowing all students in
those schools to eat breakfast and lunch at no charge
regardless of their families’ income. This initiative will
enable up to 90 percent of New York State's students
to eat for free.
OTHER BUDGET ACTIONS
Supplemental Assistance Grants. The Executive
Budget includes $100 million of Supplemental
Assistance Grants to provide additional aid to school
districts for SY 2025.
New York City School Governance. The Executive
Budget provides a four-year extension of the current
system of governance of New York City public
schools, which is currently scheduled to expire on
June 30, 2024.
Support for Libraries. The Executive Budget
supports public libraries by providing $102.1 million
of Library Aid, a $2.5 million increase over FY 2024
Enacted Budget levels, and $34 million for Library
Construction to fund various capital projects. In
addition, the Executive Budget appropriates $3 million
to ensure continued access to the New York Online
Virtual Electronic Library (NOVELny), a free online
library of magazines, newspapers, maps, charts,
research, and reference books available to all New
Yorkers.
Capital Investments in State-Owned Schools. The
Executive Budget provides $27.6 million for capital
improvements to the ve State-owned schools. This
includes $20.1 million for the three State-owned
schools on Native American reservations (the
Onondaga School, the St. Regis Mohawk School,
and the Tuscarora School), as well as $4.5 million
for the School for the Blind at Batavia and $3 million
57
EDUCATION
for the State School for the Deaf at Rome. This
capital funding will modernize classrooms and HVAC
systems, among other school facility upgrades. With
this funding, Governor Hochul will have invested a
total of $95.9 million in these ve schools' facilities
over three years.
SCHOOL AID DEFINITIONS
The terms commonly used to discuss School Aid
are presented below. Their estimated values in SY
2025 under the Executive Budget are provided in
parentheses.
• Formula-Based Aids ($34.8 billion): The
categories of General Support for Public
Schools (GSPS) that appear on the School Aid
run published by SED along with the Executive
Budget and Enacted Budget, including the
following:
° Foundation Aid ($24.5 billion): The State’s
main formula for unrestricted operating aid to
school districts, intended mainly to support
districts' instructional costs. It is the largest
aid category within School Aid.
° Expense-Based Aids ($10.2 billion): All
categories of GSPS that appear on the School
Aid run other than Foundation Aid. These
aids largely reimburse a certain percentage
of districts’ costs in the prior school year. The
main expense-based aids are Building Aid
($3.3 billion), Transportation Aid ($2.5 billion),
BOCES Aid ($1.3 billion), and Universal
Prekindergarten/Statewide Universal Full-Day
Prekindergarten ($1.2 billion).
• Categorical Aids ($309 million): All categories
of GSPS that do not appear on the School Aid
run. The main categorical aids are Employment
Preparation Education ($96 million), Native
American Education ($69 million), and Education
of Students in OMH/OPWDD Facilities ($49
million).
• Competitive Grants ($196 million): Additional
support for schools, generally awarded through
competitive RFPs.
• School Aid ($35.3 billion): The sum of formula-
based aids, categorical aids, and competitive
grants.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
ENVIRONMENT,
ENERGY, &
AGRICULTURE
59
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
OFFICES AND RESPONSIBILITIES
New York State’s environmental, energy and
agriculture agencies are on the front lines of the on-
going ght against climate change; are tasked with
conserving and protecting precious natural resources;
promoting New York State as a natural destination
for tourism and recreation; ensuring the integrity of
freshwater resources; and supporting the kind of
agricultural development that is critical to New York
State’s robust farming industry.
The Department of Environmental Conservation’s
(DEC) mission is to conserve, improve, and protect
New York’s natural resources and environment while
enhancing the health, safety, and well-being of New
York State’s citizens.
The Oce of Parks, Recreation and Historic
Preservation (OPRHP) provides safe, enjoyable
recreational and educational opportunities for New
York State residents and visitors, and functions as a
steward of New York State’s valuable natural, historic,
and cultural resources. OPRHP operates the State
Park System, a network of over 250 parks, historic
sites, recreational trails, golf courses, boat launches,
and more. In 2022, the system welcomed more than
78 million visitors.
Together, DEC and OPRHP oversee 5.35 million acres
of open space statewide, including 2.6 million acres in
the Adirondack Park and nearly 300,000 acres in the
Catskill Forest Preserve.
The Department of Agriculture and Markets (AGM)
has wide-ranging responsibilities, including food
safety inspection, agricultural economic development,
farmland protection, animal and plant health
surveillance, and operation of the Great New York
State Fair.
The Department of Public Service (DPS) functions
as the sta arm of the Public Service Commission
(PSC), which regulates the rates and services of
public utilities – an industry with an estimated $33
billion in annual revenue. DPS oversees the siting of
major utility infrastructure and provides oversight of
cable franchise agreements and telecommunications
service.
The New York State Energy Research and
Development Authority’s (NYSERDA) advances
innovative energy solutions in ways that improve
New York’s economy and environment. NYSERDA is
the primary state entity tasked with energy market
research and development and oversees a variety of
energy programs including the electric vehicle rebate
program and NY-Sun, designed to make solar energy
more accessible.
The New York Power Authority (NYPA) supplies
power statewide through two large hydroelectric
facilities and more than 1,400 miles of transmission
lines. NYPA is also helping to lead the transition to a
carbon-free, economically vibrant New York through
customer partnerships, innovative energy solutions,
and the responsible supply of aordable, clean, and
reliable electricity.
LEADING THE NATION
From the beginning of her administration, Governor
Hochul has made it clear that combating climate
change remains a top priority for New York State.
Acknowledging that the cost of inaction greatly
outweighs the cost of any actions we can take
together, New York will continue to pursue an
aggressive agenda that will lead the nation in
transitioning to a sustainable green energy economy,
in a way that is both environmentally eective and
economically aordable for all New Yorkers.
In the FY 2025 Executive Budget, Governor Hochul
is proposing the Renewable Action Through
Project Interconnection and Deployment (RAPID)
Act. The RAPID Act will create a one stop-shop for
the environmental review and permitting of major
renewable energy and transmission facilities within
the Oce of Renewable Energy Siting (ORES) at DPS.
This will build on the on-going success of both ORES
and the existing transmission permitting process at
DPS. The state’s transmission permitting process
will now feed into a clear statutory framework that
balances transparency and environmental protection
with the need for fast decision-making.
In furtherance of our climate goals, Governor Hochul
is also advancing the Aordable Gas Transition
Act, which supports responsible, equitable, and
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ENVIRONMENT, ENERGY, & AGRICULTURE
eective gas system transition planning, including
the elimination of the so-called “100-foot” rule and
other provisions of law that restrict the Public Service
Commission from protecting consumers and ensuring
an eective transition to clean energy. This legislation
will protect utility customers from bearing the cost of
unwarranted investment in fossil fuel infrastructure,
establish new rules and guidelines applying to the
extension of gas service in alignment with the Climate
Leadership and Community Protection Act, and will
not impact the safe and reliable delivery of service to
existing customers.
PROPOSED FY 25 BUDGET ACTIONS
In addition to announcing critical new programs and
advancing new investments on the climate front,
Governor Hochul’s proposed budget will provide the
funding New York needs to preserve, protect, and
enhance our natural resources, expand our outdoor
recreation opportunities, and drive economic growth
through sustainable agriculture and eco-tourism.
Highlights of the FY 2025 Executive Budget include:
Clean Water Infrastructure Funding. An additional
$500 million in clean water infrastructure funding,
over two years, is advanced to bring the State’s total
clean water investment to $5.5 billion since 2017. This
continued investment in our State’s infrastructure will
ensure New Yorkers have access to clean drinking
water and will allow municipalities to invest in ecient
and eective wastewater treatment strategies.
Environmental Protection Fund. $400 million
for the Environmental Protection Fund (EPF) is
again provided to support critical projects that
work to mitigate the eects of climate change,
improve agricultural resources, protect our water
sources, advance conservation eorts, and provide
recreational opportunities.
Sustaining our Environmental Resources. $95
million for DEC to address a variety of capital needs
to facilitate access to state lands, ensure the safety
and durability of our state’s dams, rehabilitate
campgrounds, and upgrade a variety of widely used
recreational facilities. This funding will also provide
critical repairs to other public property, including
wetlands, trails, waterfronts, and sh hatcheries.
Make New York Greener. To advance the State’s net-
zero carbon emissions goals under the Climate Act,
$47 million is committed to facilitate the planting of
25 million trees by 2033. Capital investments in the
Saratoga Tree Nursery and multi-year annual grants
to municipalities to plant trees in support of resilient
reforestation and urban forests, are key components
of this initiative.
Investing in Our State Park System. $200 million for
OPRHP to invest in enhancing and improving state
parks. This substantial level of funding will aid the
ongoing transformation of New York’s agship parks
and support critical infrastructure projects throughout
the park system.
Celebrating Our State Parks' Centennial. $100
million for projects to celebrate 100 years of New York
State Parks and particularly to support OPRHP’s plans
to transform the Jones Beach East Bathhouse.
New York Statewide Investment in More Swimming
(NY SWIMS). $150 million for OPRHP and partner
agencies to invest in various grant programs that
will enhance and expand municipal swimming
opportunities throughout the State through
installation of innovative oating pools, renovation
and construction of municipal inground pools, and the
provision of pop-up pools.
Energy Aordability Guarantee. $50 million to
ensure that customers who fully electrify their homes
through the NYSERDA EmPower+ Program do not
spend more than six percent of their income on their
electric bill.
Canal Infrastructure Investments. $50 million is
being provided for the improvement of the Canal
System. These funds will be used for dam and lock
repair, ood mitigation, infrastructure improvements,
canal system resiliency, and other projects that will
improve the overall canal system.
Bolster New York’s Dairy Industry. $34 million is
provided over two years to expand dairy processing
capacity through grants for on-farm milk storage
technologies and processing infrastructure to
mitigate transportation issues during periods of
intense winter weather and road closures; improving
dairy supply chain eciency and avoiding raw milk
dumping related to emergency events.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
GENERAL
GOVERNMENT
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
OFFICES AND RESPONSIBILITIES
Among the agencies responsible for ensuring that
New York State government is operating eectively
are:
The Oce of General Services (OGS) is responsible
for a wide array of State support services including
managing and leasing properties, designing, building,
and maintaining State facilities, and establishing
contracts for goods, services, and technology. $1.4
billion in funding is included in the Executive Budget.
The Department of Civil Service (DCS) is responsible
for providing human resource management services
to the State and local governments, assisting State
agencies with workforce recruitment, administering
exams, overseeing job classications, and
administering employee benets. $99.8 million in
funding is included in the Executive Budget.
The Division of Alcoholic Beverage Control
(ABC) operates under the direction of the State
Liquor Authority (SLA). ABC/SLA is responsible for
regulating and issuing licenses for the manufacture,
sale, and distribution of alcoholic beverages within
the State. $16.5 million in funding is included in the
Executive Budget.
The Oce of Cannabis Management (OCM)
is responsible for developing a comprehensive
regulatory structure to monitor and control the
cultivation, processing, manufacturing, distribution,
transportation, and sale of cannabis in New York
State. $68.1 million in funding is included in the
Executive Budget.
The State Board of Elections (SBOE) is responsible
for executing and enforcing all laws related to
elections, overseeing the conduct of elections and
the disclosure of campaign nance activities. SBOE
is also responsible for reviewing the practices of all
local boards of elections, facilitating ballots for State
oces, approving the voting systems, maintaining
the Statewide voter registration database, and
implementing various federal programs. $158.4 million
in funding is included in the Executive Budget.
PROPOSED EXECUTIVE BUDGET
ACTIONS
Resiliency & Sustainability Consultants
As part of the Leading by Example initiative set forth
in Executive Order 22, New York State is currently
engaged in eorts to reduce Greenhouse Gas (GHG)
emissions and develop new sustainable and resilient
policies and practices that meet the high standards
of the State. The Oce of General Services (OGS)
has been tasked with developing a methodology
and process for collecting relevant data to build a
comprehensive GHG report for agencies’ assets and
reporting.
To accomplish these goals, it is crucial that State
agencies are able to build the capacity to develop
eective policies and reporting. The State will
create eective communication materials related
to sustainability to develop guidance for both
public and private entities. Last year, OGS engaged
consultants and will invest $450,000 to retain these
services, The consultants provide expert level sta
augmentation to assist with the development of GHG
metrics, reporting, and communication materials.
This continues to be a large undertaking for the State
and involves complex issues that require specic
knowledge and expertise to create eective reports,
policies, and more.
Language Access Interpreters
Over 5 million New Yorkers speak a language
other than English at home and New York’s
language access law requires agencies to provide
oral interpretation and document translation in
an individual’s primary language. The Oce of
General Services (OGS) will create a Language
Access Certication program, which will oer oral
and written language assessments and training for
State employees who speak a language other than
English. This program would improve the quality and
availability of translation resources and make State
services more available.
Increase Maximum Short-Term Disability Benets to
Provide Equity in Benets
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GENERAL GOVERNMENT
To ensure New Yorkers have adequate access to
leave for their own medical needs, the Executive
Budget increases the maximum amount for short-term
disability benets. Last updated in 1989, the current
maximum of $170 will be amended and tied to the
Statewide Average Weekly Wage (SAWW) to keep
pace with wage growth. Strengthening medical leave
will not only support women and birthing persons,
but also the nearly 1 in 5 New Yorkers with a disability,
who often need leave from work to manage disability-
related health needs.
Expanding Access to Prenatal Visits through Paid
Leave
Pregnant New Yorkers have limited paid options for
leave to pursue prenatal appointments. New York led
the nation with the roll out of Paid Family Leave (PFL)
and can continue to do so by providing additional
leave in Workers’ Compensation Law for prenatal
care. The Executive Budget amends PFL to permit up
to 40 hours of leave for eligible employees to attend
prenatal appintments, without impacting the twelve
weeks of PFL.
Justice Infrastructure Initiative and Civil Legal
Services Grants Increase
The Executive Budget includes $500,000 to
pursue a Justice Infrasturcture initiative and a
$10 million increase in grants to non-prots from
the Interest on Lawyer Account (IOLA) Fund. The
Justice Infrastructure initiative aims to create more
coordination among disparate providers of civil
legal services in New York, ensuring that when New
Yorkers have legal needs, they know whom to contact
and the steps to take. The one-time grants increase
grows the $50 million in expected grants in FY 2025
to $60 million, increasing funding to non-prots that
provide civil legal services to lower income New
Yorkers.
Rightsizing Anti-Discrimination Investigations
Division Funding
The Executive Budget provides the Oce of
Employee Relations approximately $3.3 million to fund
the agency’s Armative Action Administrator (AAA)
sta. Since AAA positions were consolidated into
OER in 2018, the agency has experienced higher than
expected demand for discrimination investigations.
This $3.3 million will give the agency the necessary
funding to sta Armative Action Administrators
allowing OER to better meet the need for these
services.
Enhance New York’s Diversity, Equity, and Inclusion
Work
To establish a more inclusive workforce that reects
the diversity of New York, the Executive Budget
provides the Oce of Employee Relations $200,000
in funding to create a diversity, equity, and inclusion
(DEI) course and $591,000 to the Department of Civil
Service for developing and administering an anti-
racism training program for State employees.
Combat Unlicensed Sale of Cannabis
The Executive Budget includes legislation to
strengthen the Cannabis Law to better enable the
Oce of Cannabis Management (OCM), as well as
local government agencies, to seal or padlock an
unlicensed cannabis business. The Budget also
provides additional sta resources to the Department
of Taxation and Finance to assist these expanded
enforcement eorts.
Public Campaign Finance
The Public Campaign Finance (PCF) program eective
November 9, 2022, establishes public nancing
to encourage candidates for public oce to focus
campaign eorts toward soliciting small donations
from individual constituents rather than corporate
interest groups. As such, the State will provide
matching funds on the rst $250 of any qualifying
donation. The Executive Budget includes $100 million
for the State’s matching portion.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
HEALTHCARE
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The FY 2025 Executive Budget reects Governor
Hochul’s continued commitment to improving the
health and well-being of every New Yorker by
increasing health care aordability and access, while
building on the historic healthcare investments made
over the last two years. Through a series of cost-
eective and innovative initiatives, the Budget seeks
to continue modernization of the healthcare industry,
address the challenges facing our health system, and
reform how we approach whole person care.
OFFICES AND RESPONSIBILITIES
The Department of Health’s (DOH) mission is to
ensure that high quality health services are available
to all New Yorkers. Consistent with this mission,
DOH protects public health, funds and supervises
community public health activities and critical social
supports, regulates healthcare facilities statewide,
and operates healthcare facilities including Helen
Hayes Hospital, four nursing homes specically
for veterans and their families, and the Wadsworth
Center for Laboratories and Research. DOH also
manages comprehensive healthcare and long-term
care coverage for low- and middle-income individuals
and families through Medicaid, Child Health Plus
(CHP), and the Essential Plan (EP). Combined, these
programs provide aordable health insurance
coverage for nearly 9 million New Yorkers.
The Oce of the Medicaid Inspector General
(OMIG) promotes the integrity of the Medicaid
program by conducting and coordinating fraud, waste,
and abuse control activities for all State agencies
responsible for Medicaid-funded services.
The State Oce for the Aging (SOFA) promotes and
administers programs and services for New Yorkers
60 years of age and older. The Oce oversees
community-based services provided through a
network of regional Area Agencies on Aging (AAA)
and local providers.
New York State’s Medicaid program is the State’s
largest payer of healthcare and long-term care
services and supports. Over 7.6 million individuals
receive Medicaid-eligible services through a network
of more than 80,000 healthcare providers and
more than 37 fully and partially capitated managed
care plans. Total Federal, State, and local Medicaid
spending is expected to be $96.4 billion in FY 2025.
This includes $52 billion in Federal spending and
$35.5 billion in State spending. In 2012, the State
rst implemented the Medicaid Global Cap, setting
the annual growth rate to an industry-based metric in
statute. The FY 2025 Executive Budget reects the
continuation of the Medicaid spending cap enacted
in FY 2012, as updated, and recommends funding
consistent with last year’s update to the allowable
growth calculation. The Global Cap spending limit
is set by the ve-year rolling average of Medicaid
spending projections within the National Health
Expenditure Accounts produced by Oce of the
Actuary in the Centers for Medicare & Medicaid
Services. Consistent with the index, the FY 2025
Executive Budget reects $15.6 billion in additional
Medicaid spending growth between FY 2024 and
2028 as compared to the prior Global Cap growth
metric.
The Essential Plan oers comprehensive health
coverage to more than 1.2 million New Yorkers with
incomes below 200 percent of the Federal poverty
level (FPL) ($29,000 for a single individual), and the
State has requested Federal authorization to expand
this program to include individuals with incomes up to
250 percent of FPL.
The Child Health Plus program provides free or low-
cost health insurance to over 446,000 children under
the age of 19 who do not qualify for Medicaid and do
not have other health insurance coverage.
CREATING A STRONGER HEALTHCARE
SYSTEM
With more than $300 billion in spending across all
payers, New York’s healthcare system is one of the
largest and most complex in the nation, comprising
the full spectrum of medical services that New Yorkers
need – primary care, specialty care, emergency care
and hospital visits, long-term care, pharmacy benets,
mental health and substance abuse treatment, and
more. Over the last two years, Governor Hochul has
made multi-billion-dollar investments in safety-net
hospitals, passed the largest Medicaid rate increases
in more than a decade, and announced $2.6 billion
in capital funding to help transform and modernize
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HEALTHCARE
New York’s healthcare facilities. Last year, Governor
Hochul announced New York’s Future of Healthcare
Commission, a group of leading healthcare experts
who will play a critical role in developing a long-term
vision for New York’s healthcare system.
Despite these eorts, New York’s healthcare delivery
system still faces signicant challenges. The state
trails the nation on key access, quality, and safety
measures, which disproportionately impact vulnerable
populations. New York ranks 46th in the nation in
emergency department wait times. Hospital quality
and safety ratings rank similarly low – 45th and 40th
in the nation, respectively. Health outcomes are
worse for New York’s communities of color. Black
New Yorkers’ rates of maternal mortality are ve times
higher, and rates of diabetes-related deaths are two
times higher, when compared to those of white New
Yorkers. Additionally, low-income New Yorkers rely
heavily on access to the state’s critical safety-net
hospitals, which continue to experience worsening
nancial instability despite subsidy funding that has
tripled since 2021. New York’s long term care system,
which already spends nearly twice as much per capita
as the national average, faces mounting pressure
from an aging population where nearly a quarter
of the state will be over 60 by 2025. And while
New York proudly remains at the forefront of health
technology and innovation, cyberattacks targeting
healthcare facilities in recent years have exposed
new vulnerabilities that threaten patient safety,
security, and privacy.
Building on the investments of the last two years, this
year’s Executive Budget addresses the signicant
challenges facing New York’s delivery system
through multiple targeted and transformational
changes, designed to ensure long-term solvency and
sustainability. The Budget:
• Includes $7.5 billion in funding over the next
three years through an amendment to New York’s
Medicaid Section 1115 Demonstration program
to support a comprehensive series of actions to
advance health equity, reduce health disparities,
and strengthen access to primary and behavioral
health care across the state.
• Makes available capital support and provides
regulatory exibilities to help transform safety net
hospitals to achieve sustainability.
• Invests $42.2 million to increase reimbursement
for services provided in DOH-licensed facilities
and private practices treating mental health
conditions.
• Invests $74 million in Patient-Centered Medical
Home enhancements for adults and children.
• Invests $10.4 million to increase reimbursement
rates for healthcare providers serving individuals
with physical, intellectual, or developmental
disabilities.
• Invests $1 million to expand coverage for Adverse
Childhood Experiences Screenings to all adults
enrolled in Medicaid.
• Includes $13.9 million in funding to support a 5
percent Early Intervention reimbursement rate
increase, and a 4 percent Early Intervention rate
modier targeted to support rural & underserved
areas.
• Invest a recurring $14.8 million to eliminate
Hepatitis C by 2030 ($3 million), include HIV
testing in routine blood work to help initiate
treatment sooner ($3.5 million), increased
distribution of PrEp ($4 million), increased
distribution of harm reduction materials ($3
million), allow pharmacists to administer
vaccines ($1.2 million), screen for diseases and
dispense medication including PrEP and Mpox
vaccinations, and allow registered nurses to
screen for HBV ($100 thousand).
• Invests $20 million in capital funding and $5
million in operating funds targeted towards
catalyzing innovation in research and treatment
for ALS and other rare diseases.
• Permits health care providers in emergency
rooms to dispense up to a three-day supply of
buprenorphine and $2 million to support DOH
data innovations to address the opioid crisis.
• Advance a comprehensive plan to further
increase access to quality care during the
pre- and post-natal period, including issuing
a standing order to increase access to doula
services, adding doula coverage to the Essential
Plan, establishing new oversight mechanisms to
avoid unnecessary c-sections, and eliminating
cost sharing for most pre-natal and postpartum
pregnancy-related care in both the Essential Plan
and Qualied Health Plans.
• Invests $315 million per year to provide health
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
insurance subsidies on the Exchange for
individuals up to 350% Federal Poverty Level
(FPL).
These changes are intended to help transform the
healthcare system while preserving access and
sustainability and improve the overall health of New
Yorkers.
New York State Medicaid
In FY 2025, the State-funded portion of the Medicaid
program will total $35.5 billion; more than double the
FY 2011 value - as will the average cost per member
per year of over $10,047 - and total enrollment in the
program - 6.8 million enrollees by March 2025. While
this growth reects the State’s commitment to support
it neediest residents, it also continues to put pressure
on the State’s nances. New York currently has the
second largest program in the country (7.6 million in
Medicaid enrollees) and is in the middle of a 14 month
federally required eligibility redetermination of over
9 million people on the State’s various public health
insurance programs. This process began in May 2023
and will be completed by June 2024. The uncertainty
around the outcome of these redeterminations and
their eects on future Medicaid enrollment puts risk
on Medicaid spending in future scal years.
These are not the only challenges facing the NYS
Medicaid program. The State’s population is aging
and driving signicant growth in the Medicaid
program, as costs for those who need long term
care are ten times that of a typical Medicaid enrollee.
Base Medicaid growth trends continue to outpace
the allowable growth index, attributable to increased
Managed Long-Term Care (MLTC) enrollment and
price growth as well as increased home and personal
care utilization and costs. Additionally, public health
insurance coverage for asylum seekers and other
migrants may result in additional costs to the State,
as well as the impacts of ination and increased labor
costs.
With these challenges in mind, the Executive Budget
proposes several targeted and transformational
changes to ensure the long-term solvency and
sustainability of the Medicaid program, while also
stabilizing our healthcare system. The Budget reects
the nation’s largest investment in health-related social
care needs (HRSN), which includes a historic Federal
investment of $5.8 billion over 3.5 years.
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HEALTHCARE
These changes are intended to help transform the
healthcare system, while preserving access and
sustainability, and to improve the overall health of all
New Yorkers.
PROPOSED FY 2025 HEALTHCARE
BUDGET ACTIONS
Implement the Groundbreaking Medicaid 1115
Waiver Amendment. The Executive Budget
implements the recently approved amendment to
New York’s Medicaid Section 1115 Demonstration,
which allows New York to make investments in
Medicaid initiatives that will improve health equity and
strengthen New York’s continuing eorts to build a
healthcare system that benets all New Yorkers.
The demonstration bundles a comprehensive series
of actions to advance health equity, reduce health
disparities, and strengthen access to primary and
behavioral health care across the state, and will be
supported through $7.5 billion in funding over the
next three years.
• CMS’ approval allows New York to make large
investments across a series of wide-ranging
Medicaid initiatives, including establishing
Social Care Networks to integrate health,
behavioral, and social care services that connect
high-need members to critical nutritional and
housing support services; enhancing access to
coordinated and comprehensive treatment for
substance use disorders; investing in primary care
and making long-term, sustainable investments in
the state’s health care workforce.
• The demonstration amendment also includes
funding to support the implementation of a
Medicaid Hospital Global Budget Initiative for
a subset of nancially distressed safety net
hospitals looking to transition to reimbursement
system that rewards value rather than volume of
care provided. This initiative will support essential
safety net hospitals that help serve the most
vulnerable populations and have signicantly
more adverse health risk factors and poorer
health outcomes.
• The demonstration will address signicant
health care workforce shortages in safety net
settings through innovative career pathways
training programs for front-line health and social
care professionals that will increase access to
culturally appropriate services. These career
pathways training programs will train and educate
for the purpose of creating a reliable healthcare
workforce pipeline to address workforce
shortages, as well as increasing opportunities for
employment and career advancement.
• The workforce initiatives also include a loan
repayment program for certain healthcare
workforce professionals who commit to working
in community-based practices in underserved
areas, including dentists, psychiatrists, and clinical
nurse specialists.
• New York will also submit a new 1115 waiver
amendment to allow children to remain
continuously enrolled in Medicaid and Child
Health Plus up to age six, with the goal of
preventing gaps in coverage during important
developmental years and improving outcomes for
long-term health and well-being.
Improve Essential Plan Coverage. To make
healthcare coverage more aordable, accessible,
and equitable, the Executive Budget includes several
changes to improve the Essential Plan, including:
• Utilizing 1332 pass through funds to oer
supplemental insurance subsidies to qualied
health plan (QHP) eligible individuals up to 350%
of the FPL.
• Eliminating cost-sharing for care and treatment
related to certain chronic conditions.
• Increasing funding for substance use disorder
treatment.
• Expanding coverage for services related to
mitigating the health risks of climate change for
persons with asthma.
• Eliminating all cost-sharing for pregnancy-related
benets and adding coverage of for doula
services.
• Eliminating all premiums for Essential Plan
enrollees.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Medicaid. The Budget makes critical investments
to address the needs of vulnerable New Yorkers,
including stabilization of the health care delivery
system and driving improved health outcomes. The
Medicaid program continues to grow beyond indexed
growth, further challenged by Medicaid enrollment
that is no longer assumed to return to pre-pandemic
levels. Over the life of the Financial Plan, the Budget
reects over $1.6 billion in new costs associated
with Medicaid enrollment estimates above prior
projections. There is a great deal of uncertainty with
regard to Medicaid enrollment and the State will
continue to test and rene the Medicaid enrollment
projections as new data becomes available. In FY
2025, the Medicaid program is balanced within the
Medicaid Global Cap, supported by critical savings
and targeted investments. In the long term, actions
will be required to bring in line Medicaid spending
with sustainable growth levels, while still meeting the
needs of vulnerable New Yorkers. Accordingly, the
FY 2025 Budget includes:
Long Term Care Sector. Managed long term care
enrollment is projected to increase by 10 percent in
FY 2025, and spending is expected to increase by
20 percent. Both of these trends are unsustainable
and this spending growth would singularly exceed the
allowable Global Cap Metric. In response, the Budget
includes a proposal to discontinue Wage Parity for
CDPAP producing State share savings of $200 million
in FY 2025. In addition, the State will maximize the
use of available resources while working with long
term care stakeholders to identify at least $200
million in recurring State share savings across New
York’s many long term care programs, while ensuring
services are available for the most vulnerable
populations.
Hospital Sector. Currently, 75 of 261, or 29 percent,
of New York’s hospitals, are nancially distressed, and
overall distressed hospital spending has increased by
over 400 percent since FY 2017. While the 1115 Waiver
will help support some of these facilities, this need
has continued to grow at unsustainable levels.
Unallocated Reduction. In lieu of more specic
cuts, the Executive Budget includes a $200 million
unallocated State share reduction outside of
community-based long term care services, that will
be achieved through one or more savings proposals
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HEALTHCARE
developed in the consultation with the health care
industry and other stakeholders.
Safety Net Hospital Transformation Program. The
Budget makes available nancial resources and
regulatory exibilities to encourage partnerships that
improve the resilience of and preserve long-term
access to safety-net institutions.
Reduce Infant, Child and Maternal Mortality. The
Budget will take several actions to reduce infant and
maternal mortality in the State, including:
• Requiring managed care plans to report
on prenatal and postpartum care, lling in
information gaps that can be used to develop
targeted interventions.
• Convening regional stakeholder groups to
develop recommendations for reducing infant
mortality.
• Providing new Medicaid nancial incentives for
hospitals to reduce unnecessary C-sections.
• Allowing access to doula services without the
need for a physician referral.
Improve Maternal Mental Health. The Budget will
focus on mental health and substance abuse issues
during pregnancy, some of the leading causes
of poor birth outcomes, by increasing access to
comprehensive mental health screening tools in
pregnancy and postpartum.
Ease Access to Gender-Arming Care. The Budget
takes several actions to ensure access to gender-
arming care for adult transgender and nonbinary
members in the Medicaid program, such as removing
or reducing barriers to accessing gender arming
surgery.
Improve Access to Primary Care. The Budget builds
upon the historic primary care investments in the
FY 2024 Budget, continuing to invest in access to
preventive care. The Budget:
• Increases funding for adult and pediatric
enhancements for Patient-Centered Medical
Homes (PCMH).
• Expands coverage for Adverse Childhood
Experiences (ACES) screening to all adults in
Medicaid.
• Increases rates for providers serving Medicaid
members with intellectual, developmental, or
physical disabilities.
• Increases reimbursement rates for adult and
children’s mental health services provided in a
hospital setting or private physician practice.
Expand Access to Quality Dental Care. The
Executive Budget takes several steps to increase
access to oral health services. First, New York will
support the dentistry workforce by expanding
their scope of practice and launching a new loan
repayment program, supported by a federal waiver,
for dentists who make a four-year commitment to
serve the Medicaid population in New York. The
Budget also increases access to high quality dental
care by expanding access to dental care in school-
based health centers, increasing quality oversight of
dental care within Medicaid – and implementing a
provider education campaign.
Streamline and Modernize New York’s Healthcare
Approval Process. The Budget makes a series of
investments to strengthen and stabilize the State’s
healthcare delivery system. These include:
• Streamlining the certicate of need (CON)
process.
• Strengthening hospital cybersecurity through
support from a newly created NY Hospital
Cybersecurity Roundtable.
• Creation of ve “Emergency Medical Service
(EMS) zones” across the state, overseen by the
newly established EMS statewide Task Force to
augment the EMS workforce.
• Establishing a Paramedic Telemedicine Urgent
Care program, to expand care in rural areas and
reduce preventable emergency department visits.
• Allowing general hospitals to provide care in a
patient’s home and allowing emergency medical
technicians (EMTs) to provide non-emergent care
in the community.
• Establishing quality reporting and accreditation
requirements for assisted living residences, which
will be published by DOH.
• Making the Special Needs Assisted Living
Residence (SNALR) program permanent.
Allow Healthcare Providers to Do More. The
Budget includes legislation to allow New York to
join the Interstate Licensure Compact and the Nurse
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Licensure Compact, which will make it easier for
physicians and nurses licensed in other states to
practice in New York, either physically or virtually,
and make it easier for New York providers to oer
virtual care to their patients who travel to other
states. Additionally, the Budget expands the scope
of practice of dentists, dental hygienists, certied
medication aides, physician assistants, and medical
assistants—allowing more licensed and credential
health care workers to provide critical care where
patients need it most.
Continue the State Takeover of Local Medicaid
Costs. In FY 2025, the State will assume nearly
$7.4 billion in costs that would have otherwise been
incurred by localities. This is an annual multibillion-
dollar relief package to the localities that continues
to grow by billions of dollars, annually. Since 2015,
the counties have saved $45.1 billion due to the local
takeover.
Supporting the NY State of Health
The Exchange – NY State of Health, nystateoealth.
ny.gov, serves as a centralized marketplace to
shop for, compare, and enroll in a health insurance
plan through public programs and subsidized and
unsubsidized commercial coverage.
The health plans oered through NYSOH are
signicantly less expensive than those available in
2013, prior to the creation of the marketplace. NY
State of Health is the only place where consumers
can qualify to get help paying for coverage through
premium tax credits.
Currently, over 6.7 million, or over one in three
New Yorkers, are enrolled in coverage through
the marketplace. Commensurate with increased
enrollment in NY State of Health, the number of
uninsured New Yorkers has declined by over 1.3
million since 2010, and as of 2022, the share of
uninsured in New York fell below 5 percent for the
rst time ever.
New York has been among the top ve states in
keeping families and children enrolled in Medicaid
during the Public Health Emergency unwind,
according to a report released by the Centers for
Medicare & Medicaid Services.
The Executive Budget includes $612 million in funding
for the operation of the NY State of Health.
Increase Marketplace Aordability. The Budget
proposes several measures to increase the
aordability of qualied health plans (QHPs) obtained
on the marketplace exchange, including enhanced
premium subsidies, eliminating cost-sharing for
care related to type II diabetes, and establishing a
workgroup to augment network adequacy standards.
Eliminate Cost-Sharing for Pregnancies. The Budget
eliminates cost-sharing for most pregnancy-related
benets.
Strengthening Public Health and Aging Programs,
Improving Health Outcomes
New York State continues its eorts to return to
normal operations after the height of the COVID-19
pandemic, and ensure the State has robust capacity
to respond to new public health threats.
The Budget makes a series of investments to support
a healthier New York, with better care outcomes and
improved health equity.
Alleviate Data Privacy Concerns for Abortion
Providers. The Budget will direct the Department of
Health to modernize technology for the electronic
reporting of induced abortions, eliminating the need
for paper records, and better providing safeguards of
sensitive health information.
Expand the American Indian Health Program (AIHP).
The Budget makes critical investment in AIHP to
address inequities in access, with a heightened focus
on access to quality dental care. The AIHP program
will also begin a process to update its pharmaceutical
management program to reduce costs.
Increase Funding for School-Based Health Centers.
The Budget further invests in access to primary care
by increasing funding for school-based health centers
to provide increased services, including dental
services.
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HEALTHCARE
Increase Rates in Early Intervention. The Budget
recognizes the importance of the Early Intervention
Program by providing for a 5 percent rate increase
for in-person services, as well as a 4 percent rate
modier for rural areas and underserved communities.
Modify Early Intervention Billing. The Budget
makes various administrative changes to align billing
requirements with federal regulations resulting in
savings.
Excess Medical Malpractice Reform. The Budget
includes a change to recongure the timing of
payments under the program, splitting payments over
two years.
Invest into New York’s Aging Population. The
Budget will invest an additional annualized $3.4
million to provide a 1.5 percent Cost-of-Living
Adjustment for SOFA programming. The Budget
also invests $1.0 million to strengthen New York’s
Enhanced Multidisciplinary Teams to enable them to
better address cases of elder abuse and exploitation.
Modernize Vital Records. The Budget will support
eorts by the Department of Health to digitize records
that are not yet electronic and implement intelligent
document software, with the goal of creating a
searchable system that automatically extracts
information.
Mobile Prostate and Breast Cancer Screening
Services. The Budget will invest $4.0 million in the
Roswell Park Cancer Institute (RPCI) to nance new
mobile breast and prostate cancer screening vans
and expanded cancer screening activities.
Appoint Director of Patient Advocacy. The Budget
supports the appointment of a Director of Patient
Advocacy (DPA) to work across programs advocating
for patient issues, such as billing and nancial
assistance, and uphold the NY Hospital Patient Bill of
Rights.
End Preventable Epidemics. The Budget includes a
series of proposals to end preventable epidemics by:
• Requiring labs to report all negative HIV, syphilis,
Hepatitis B and C (HBV/HCV) testing results to
inform targeted intervention and address gaps in
testing.
• Making testing for HIV part of a routine annual
exam.
• Allowing pharmacists to administer vaccines,
screen, and dispense medication for Mpox and
PrEP.
• Expanding the role of registered nurses to
facilitate HBV testing without a patient-specic
standing order.
• Promoting and increasing access to PrEP.
• Investing in Hepatitis C prevention.
Increase Investment into Hepatitis C Prevention.
The Budget will invest an additional $2 million into
Hepatitis C Prevention and an annualized $3 million
thereafter to assist in the integration of Hepatitis C
prevention in opioid prevention services, provide
funding to local health departments to support
disease surveillance, and invest in innovative
Hepatitis C care models to support people who inject
drugs.
Investment for Sexuality-Related Programs and
the LGBTQ+ Community. The Budget continues the
prior year action of a $12 million annual investment
in sexuality-related programs, which includes $2
million dollars of funding to support the programs of
the Lorena Borjas Trans Wellness and Equity Fund,
while including an additional $1 million in the fund
for workforce development for Transgender, Gender
Non-Conforming, Non-Binary, & Intersex individuals.
Establish an Elder Justice Coordinating Council.
Last year, Governor Hochul expanded access and
increased services for the aging community. Building
on that progress, the Budget creates an interagency
Elder Justice Coordinating Council tasked with
developing strategies to defend elders from abuse.
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
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HIGHER
EDUCATION
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The Executive Budget continues to implement
Governor Hochul’s vision to transform the State's
public higher education system to become the best
and most equitable statewide system of higher
education in the country, with actions to expand
enrollment and access to colleges across the State
and strengthen the State University of New York
(SUNY) and City University of New York (CUNY)
systems.
OFFICES AND PROGRAMS
• New York State’s higher education system
educates over 1.1 million students, according
to reported Fall 2021 enrollment. This includes
47 four-year colleges and graduate schools
administered by SUNY and CUNY that provide
371,000 full- and part-time students with an array
of undergraduate, graduate, and professional
degrees; 37 local and regional community
colleges supported by SUNY and CUNY serving
over 234,000 students; and nearly 200 private
colleges and universities educating 534,000
students across the State.
• The State University Construction Fund (SUCF),
the City University Construction Fund (CUCF),
and the Dormitory Authority of the State of
New York (DASNY) administer a capital program
for over 3,000 academic, research, hospital,
dormitory, and multi-use facilities, which make up
the physical infrastructure of the public university
systems across New York State.
• The Higher Education Services Corporation
(HESC), New York State’s student nancial aid
agency, is a national leader in helping make
college aordable for students. HESC oversees
numerous State-funded nancial aid programs,
including the Excelsior Scholarship, the Tuition
Assistance Program (TAP), and 26 other
scholarship and loan forgiveness programs.
Together, these programs provided nancial aid
to approximately 300,000 students during the
2022-23 academic year (AY 2023). HESC also
partners with the Oce of the State Comptroller
to administer the College Choice Tuition Savings
program.
The State Education Department (SED) also
contributes funding for higher education, including
opportunity programs that help support the success
of disadvantaged students.
EXTENDING OPPORTUNITY TO OUR
STUDENTS
In 2022, in her rst State of the State Address,
Governor Hochul outlined a vision to transform SUNY
and secure its status as the best and most equitable
statewide system of higher education in the country.
Specically, the Governor outlined goals related to
increasing enrollment and completion rates, preparing
students for in-demand jobs, ensuring a world-class
student experience, recruiting top faculty, providing a
wide range of degrees and credentials, and doubling
sponsored research, startups, and patents. In the
FY 2023 Budget, the Governor provided SUNY and
CUNY with signicant increases in operating aid and
capital funding, expanded TAP for part-time students,
increased support for opportunity programs, and
announced that Stony Brook University and the
University at Bualo would become SUNY's agship
institutions.
Governor Hochul took additional steps to transform
the State's higher education system in the FY 2024
Budget, investing $2.4 billion in new funding for
capital projects and $381 million in operating support
for SUNY and CUNY, creating a $500 million State
matching fund for contributions to the endowments of
SUNY's four university centers, and allowing exibility
for both systems to increase graduate and non-
resident tuition rates to generate additional campus
operating revenue.
ABOUT NEW YORK'S INVESTMENT IN
HIGHER EDUCATION
• In the two budgets enacted under Governor
Hochul, State operating funding for higher
education has increased by a total of $1.07 billion
(17 percent), growing from $6.15 billion to $7.22
billion.
• State and local funding per student for public
colleges in New York was $12,428 in AY 2022
– $3,660 (36 percent) more than the national
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HIGHER EDUCATION
average and higher than 44 other states.
• More than two-thirds (69 percent) of New York
State’s public colleges’ total revenue comes from
State and local support – 11 percentage points
higher than the national average and more than
40 other states.
• The average tuition and fees at the State’s four-
year public institutions was $8,579 in AY 2024 –
$2,681 (24 percent) less than the national average
and lower than 43 other states.
• New York’s generous investment in student
nancial aid, including TAP and Excelsior
Scholarships, helped over 176,000 New York
State residents – 58 percent of full-time resident
undergraduate students – attend SUNY and
CUNY tuition-free in AY 2023, including 52
percent at SUNY State-operated campuses and
67 percent at CUNY senior colleges.
PROPOSED FY 2025 BUDGET ACTIONS
As implementation of Governor Hochul's vision
continues in 2024, the Governor will take additional
action in the FY 2025 Executive Budget to strengthen
and transform our State’s higher education system:
• Providing $207 Million in New State Support
for SUNY and CUNY Campuses. The Executive
Budget provides $207 million in new, recurring
State support for SUNY State-operated campuses
($100 million) and CUNY senior colleges ($107
million). This funding includes:
° $106 million in increased funding for
university employee fringe benets ($36
million SUNY, $70 million CUNY);
° $90 million in recurring general operating
support ($54 million SUNY, $36 million
CUNY);
° $2.75 million for the SUNY Empire State
Service Corps, oering students community
service work opportunities;
° $2.5 million for the operating costs of SUNY's
participation in the Empire AI consortium
to spur articial intelligence research and
innovation;
° $2 million for SUNY's role in the larger
Statewide Investment in More Swimming (NY
SWIMS) initiative;
° $2 million for micro-credential programs that
educate teachers in the science of reading
($1 million SUNY, $1 million CUNY); and
° $1.5 million for the State Weather Risk
Communication Center at the University
at Albany, providing real-time weather
information for public-sector stakeholders.
• Advancing Additional State Support to Help
Cover SUNY Collective Bargaining Costs. The
Executive Budget will provide SUNY with $103
million in June 2024 to cover the lump-sum
payments from the general salary increases of 2
percent eective in 2022 and 3 percent in 2023
under the recently ratied United University
Professions contract, representing an advance
on funding SUNY would otherwise receive in the
following academic year.
• Maintaining the Community College Funding
Floor. The Executive Budget will maintain a
funding oor for community colleges at 100
percent of prior year funding. Without a funding
oor, community colleges would face a $143
million (23 percent) loss in formula aid due to
enrollment declines.
• Providing $1.2 Billion for New Capital Projects
at SUNY and CUNY Campuses. The Executive
Budget provides $1.2 billion in new funding for
capital projects to help maintain SUNY and CUNY
campus facilities in a state of good repair and
make strategic investments in new facilities. This
includes: $650 million for SUNY State-operated
campuses, $384 million for CUNY senior
colleges, and $154 million for community colleges
($138 million SUNY, $16 million CUNY). In addition,
the Executive Budget also includes $70 million for
capital program administration ($29 million SUCF,
$18 million CUCF, $23 million DASNY).
• Making FAFSA Completion Universal. The
Executive Budget requires school districts to
ensure that every high school senior completes
the Free Application for Federal Student Aid
(FAFSA) or the New York State Dream Act
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
application (or in the alternative, signs a waiver
form indicating that they are aware of, but choose
not to ll out, the FAFSA). All individual students
will still be able to graduate regardless of whether
they complete the FAFSA.
• Limiting Bundy Aid. Beginning in AY 2025. the
Executive Budget limits eligibility for Unrestricted
Aid to Independent Colleges and Universities,
also known as Bundy Aid, to institutions with
endowment assets less than $750 million. Aid
to such institutions is funded at the same $15.8
million level as in AY 2024.
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HIGHER EDUCATION
Data Notes:
• The $19 million net increase for SUNY State-operated campuses includes $100 million of new, recurring
State support, oset by $81 million in FY 2024 funding for transformational initiatives and other
nonrecurring investments.
• The $48 million increase for CUNY senior colleges includes $107 million in new, recurring State
support, oset by $58 million in FY 2024 funding for transformational initiatives and other nonrecurring
investments.
• The year-to-year decreases in funding for community colleges and HESC nancial aid programs are
attributable to one-time funding provided by the FY 2024 Budget.
• The decrease in funding for SED programs is largely attributable to the Executive Budget proposal to limit
Bundy Aid eligibility to independent colleges and universities with endowment assets less than $750
million beginning in AY 2025.
• In addition to the $7.3 billion in State support cited in the chart, the State is estimated to pay $939 million
in FY 2025 for debt service on bond-nanced capital projects at SUNY and CUNY.
• In addition, the FY 2024 Budget appropriated $500 million as a State match to contributions to the
endowments of the four SUNY university centers.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
HUMAN SERVICES
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The Executive Budget refocuses the eort to make
New York more aordable and livable for people
across the income spectrum by encouraging housing
growth and continues support of the expansion of
child care availability and access. The Budget takes
further action to address the asylum seeker crisis
by providing resources, support, and humanitarian
aid, and it enhances programs that are a lifeline
for vulnerable New Yorkers, bolstering social and
economic justice, and opening doors to opportunity.
NEW YORK’S HUMAN SERVICES
New York’s human services agencies provide holistic
support across a variety of program areas designed
to ensure the safety and well-being of the State’s
most vulnerable residents, advance housing stability,
connect families to child care, provide Unemployment
Insurance benets, safeguard workers’ rights, and
support New York’s veterans and their families.
OFFICES AND PROGRAMS
The Oce of Temporary and Disability Assistance
(OTDA) and the Oce of Children and Family
Services (OCFS) oversee programs that support
and provide nancial assistance to elderly and
disabled persons who are unable to work; services
for public assistance recipients to prepare for and
secure employment; child support enforcement;
child care assistance to assist low-income working
families; protective services for children and adults;
and services for at-risk youth in communities, local
detention centers, and State operated facilities.
Homes and Community Renewal (HCR) preserves
and creates aordable housing while promoting
community development. The Oce of National
and Community Service (NCS) supports community
service grants that provide public health services,
youth education, assistance to individuals with
disabilities, and disaster preparedness.
The Department of Labor (DOL) protects workers,
operates the State’s Unemployment Insurance
System, and promotes workforce development.
The Division of Human Rights (DHR) protects civil
rights in the areas of employment, housing, public
accommodations, education, and credit.
The Department of Veterans’ Services (DVS)
connects veterans, members of the armed forces, and
their families to the economic, medical, and social
benets and services they’ve earned through active-
duty military service.
EXPANDING HOUSING AND CHILD
CARE AFFORDABILITY
Housing Aordability
Governor Hochul has shone a much-needed and
long overdue spotlight on the oversized impact the
housing crisis is having in New York. In communities
across the State, there are families and individuals
at all income levels, all ages and phases of life,
struggling to nd or remain in a stable, aordable
home.
Seventy-three percent of New Yorkers Statewide
report that housing aordability is a major problem
in their communities. An analysis by the Regional
Planning Association found that since 1990 the
share of homeowners and tenants that are cost
burdened by mortgages and rents has increased
by approximately 68 percent and 29 percent,
respectively. These statistics reect that housing has
become the single largest expense category for most
New Yorkers, and its high cost profoundly impacts the
State’s livability.
The fundamental cause of the housing crisis is lack
of supply – there are more people that wish to live in
New York than there are homes. New York’s dynamic
economy has created more than 1.2 million jobs in
the past decade, but for every three jobs created
only one housing unit has been added. The single
most important thing New York can do to alleviate the
housing crisis is to create more homes.
Governor Hochul has taken bold steps to encourage
housing growth. The $25 billion, ve-year Housing
Plan is on track to create and preserve 100,000
aordable homes by the end of FY 2027, including
10,000 homes with support services for vulnerable
populations, and electrify an additional 50,000
homes. Funding includes $5.7 billion in capital
resources, $8.8 billion in State and Federal tax
85
HUMAN SERVICES
credits and other Federal allocations, and $11 billion
to support the operation of shelters and supportive
housing units and to provide rental subsidies. This
investment represents the largest, broadest housing
plan in New York State history.
Innovative plans have also been launched that will
turn hotels, commercial buildings, and unused State-
owned facilities into housing. Reecting the State’s
geographic and demographic diversity, the State
is investing in mobile and manufactured homes,
small rental buildings, accessory dwelling units,
and other varied forms of housing. The Governor
has taken action through Executive Orders to
spur housing growth, including through the Pro-
Housing Communities Program which provides
priority consideration for up to $650 million in State
discretionary funds to localities committed to housing
growth.
These creative solutions and historic investments
are making an impact, but they alone cannot solve
the crisis. Understanding this, Governor Hochul has
worked tirelessly to advance the conversation about
the root causes of our housing shortage and the steps
communities must take to reverse restrictive land use
policies and remove entrenched barriers to housing
production.
The FY 2025 Executive Budget takes the next step to
address the crisis by making new tools and incentives
available to local governments as they work to
increase housing supply, and by encouraging housing
development on State-owned land.
Child Care Aordability
New York State has taken sweeping measures the
last two years to expand access to child care and
improve aordability for young families, investing over
$7 billion over four years.
Eligibility for the Child Care Assistance Program has
increased from 200 percent of the Federal Poverty
Level – $60,000 for a family of four – to the Federal
maximum, 85 percent of the state median income –
$99,250 for a family of four. More than half of young
children in New York are now eligible for child care
assistance, based on income. Co-pays for families
receiving child care assistance were also capped at
one percent of family income above the poverty level.
Previously, co-pays could be as high as 30 percent.
Families now have improved access to child care
– the maximum subsidy amount increased to cover
the cost of child care at 80 percent of providers,
up from 69 percent of providers prior to recent
actions. Families also have greater stability, as a new
requirement ensures subsidies are available for a
minimum of twelve months.
To support the child care industry, expedite its
recovery from the pandemic, and position it for
growth, child care providers were provided more than
$1.4 billion for stabilization and workforce retention
since 2021.
To leverage private sector support for child care,
the FY 2024 Budget established the New York State
Employer-Supported Child Care (ESCC) pilot program.
In the ESCC pilot, employers will contribute a third
of the cost of care for families between 85 percent
and 100 percent of median income, and the State
will match it, reducing out-of-pocket costs for these
families and generating millions of dollars in new
nancial support for child care.
The FY 2024 Budget also established the Business
Navigator program in each of the 10 Regional
Economic Development Council regions to help
interested businesses identify options to support
employees’ child care needs.
Together, these record investments are making child
care fairer, more accessible, and more aordable
across New York State. Throughout FY 2025 and
beyond, more and more families will benet from the
Child Care Assistance Program, more providers will
be on solid nancial footing, and more employers
will take steps to support their employees' child care
needs.
Addressing The Asylum Seeker Crisis
Since asylum-seekers rst began arriving in New
York in numbers, Governor Hochul has taken
signicant action to provide resources, support, and
humanitarian aid.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The State has devoted substantial resources to
helping New York City manage the brunt of and
navigate this potentially crippling crisis. The FY 2024
Financial Plan included $1.9 billion to support the
migrant crisis, including the cost of shelter, social
services, and resettlement.
In May, the Governor issued an Executive Order
declaring a State of Emergency in New York, allowing
the State to expedite resources to address this urgent
crisis.
The State is covering the cost of the Humanitarian
Emergency Response and Relief Center (HERRC) at
Floyd Bennett Field and has also made multiple State-
owned sites available for use as shelters, such as the
former Lincoln Correctional Facility in Manhattan, JFK
Building 197, and the Creedmoor Psychiatric Center
parking area.
The State has staed personnel at City emergency
response centers and deployed hundreds of National
Guard members to aid in the crisis response and
provide logistical support. The State’s operational
teams continue to have frequent contact with their
counterparts in the City, with a level of cooperation
that has led to multiple improvements in response
eorts.
The State is conducting infectious disease testing,
providing vaccines, and extending Medicaid services
where qualied.
The Migrant Relocation and Assistance Program
(MRAP) encourages voluntary relocation of migrants
throughout the State to participating counties, at the
State’s expense. Through MRAP, the State subsidizes
rent for asylum applicants who have voluntarily
relocated outside of New York City.
The State is providing case management services
to migrants and asylum seekers trying to attain legal
work status so they can begin living independently
as generations of immigrants have done throughout
New York’s history.
Governor Hochul has also been clear that New York
cannot do this alone. She has and will continue to
advocate for the people of New York to the White
House and Congress, and call upon the Federal
government to provide assistance, resources, and
solutions to this distinctly Federal problem.
As the migrant crisis continues, the FY 2025
Executive Budget extends an additional $2.4 billion
to continue to support eorts in New York City and
elsewhere in the State to safely manage the inux
with the appropriate humanitarian response.
PROPOSED FY 2025 BUDGET ACTIONS
Increase the Housing Supply. The FY 2025 Executive
Budget takes the next steps to add housing, remove
barriers to development, and encourage local
governments to pursue smart, sustainable growth
strategies. By focusing on the fundamental cause
of the housing crisis – lack of supply – the Budget
will make housing more aordable for New Yorkers
across the income spectrum.
• Develop Housing on State Property. The State
of New York and its public authorities own
properties that are no longer necessary for the
purpose for which they were acquired. Pursuant
to Governor Hochul's Executive Order No. 30,
Empire State Development (ESD), the Oce of
General Services, and HCR have worked together
with the help of other State agencies to identify
opportunities to repurpose such properties
for housing development. Some sites, such as
former correctional facilities and the Creedmoor
Psychiatric Center, are already on a path to
redevelopment. At other sites, advance work
must be accomplished to unlock development
potential, such as demolition, remediation, or
infrastructure improvements. The FY 2025
Executive Budget makes available $250 million
as the rst installment of $500 million dedicated
capital under the management of ESD to support
such improvements, and legislation to authorize
the repurposing of certain sites.
• Prioritize State Funding to Pro-Housing
Certied Communities. To incentivize local
governments to be active partners in the
State’s eorts to ameliorate the housing crisis,
Governor Hochul's Executive Order No. 30
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HUMAN SERVICES
directed State agencies and authorities to
prioritize communities who have taken steps to
be pro-housing for certain discretionary funding
that cumulatively represents $650 million in
competitive programming. The Executive Budget
further encourages participation by making the
pro-housing designation a requirement to receive
such discretionary funding, including through the
Downtown Revitalization Initiative (DRI), the NY
Forward program, the Regional Council Capital
Fund, capital projects from the Market New York
program, the New York Main Street program, the
Long Island Investment Fund (LIIF), and the Public
Transportation Modernization Enhancement
Program (MEP). To be considered, communities
must become certied under the State’s Pro-
Housing Communities Program overseen by HCR.
• Provide New York City with Tools to Increase
Housing. The City of New York shares the goal
of adding new housing supply and has asked
for targeted State legislation that will assist in
the achievement of that goal. In partnership,
the FY 2025 Executive Budget puts forth
legislation specic to New York City to reverse
an antiquated State law that restricts maximum
density of residential oor area, bolster local
tax incentives to allow for aordable housing in
oce-to-residential conversions, and authorize
the City of New York to create a pathway to
legalize basement apartments. The Budget
also authorizes a new residential construction
tax incentive in New York City and extends
the completion deadline for the expired 421-a
program to ensure the City does not lose out
on tens of thousands of units of housing under
projects that are currently vested in that program.
Stand Up for Tenants and Homeowners. The
Division of Human Rights will strengthen eorts to
enforce State law prohibiting a housing provider or a
real estate professional from discriminating against
an individual seeking housing because of their use
of a Section 8 Housing Choice Voucher. Legislation
submitted with the Budget will also prohibit insurance
companies from refusing to cover aordable housing
and ensure safeguarding against deed theft and other
real property fraud.
Strengthen Storm Resiliency. The Budget dedicates
$40 million for the Resilient and Ready Fund to
anticipate and respond to emergencies through
rapid home repairs and permanent retrots. This
will allow the State to respond more quickly in the
wake of disasters and to help a wider spectrum of
homeowners and victims. The Budget also advances
the Blue Buers Buyout Program to encourage
voluntary home buyouts in areas most prone to
ooding.
Bolster Child Care Aordability and Access.
Continuing the State's more than $7 billion four-year
plan to expand access to child care and improve
aordability for young families, the FY 2025 Budget
provides nearly $1.8 billion in resources towards
child care assistance – more than double the $832
million provided in the FY 2022 budget. This funding
supports the recent expansion of family eligibility,
which is now at the Federal maximum, 85 percent
of the state median income, or $99,250 for a family
of four. It also supports the new cap on co-pays for
families receiving subsidy at one percent of family
income above the poverty level. Funding included
in the Budget bolsters recent improvements to child
care as follows:
• Reimburse Child Care Providers for Quality
Improvements. To support more child care
providers in eorts to increase program quality,
OCFS will create an increased dierential
payment rate for high-quality providers that are
accredited by a nationally recognized child care
organization, participate in New York’s Quality
Rating & Improvement system, or have completed
training and are an active participant in the OCFS
Non-Patient Epinephrine Auto-Injector Initiative.
• Pilot Family Child Care Networks. The State will
pilot staed Family Child Care Networks (FCCNs)
in regions around the State, with a focus on
supporting and growing the capacity of family and
group family child care providers. These types
of providers operate small programs out of their
homes for children and care for a large portion of
children in families participating in the Child Care
Assistance Program (CCAP). FCCNs will expand
business and operational support for these types
of providers. The Budget provides $5 million for
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
this purpose.
• Expand Early Childhood Mental Health
Consultations. The Budget increases funding
to double the amount of early childhood
mental health consultations across the State.
Currently, there are Infant Toddler Mental
Health Consultants (ITMHCs) located at seven
regional infant and toddler resource centers.
The additional funding will go to these resource
centers to expand mental health consultants to
providers across the State. The Budget provides
$1.7 million for this purpose.
Provide Support for Migrant Services and
Assistance. As the State faces the ongoing crisis
precipitated by the arrival of thousands of migrants
and asylum seekers, the Budget continues to devote
substantial resources to helping New York City
navigate the situation. The FY 2024 Financial Plan
included $1.9 billion to support the migrant crisis,
including the cost of shelter, social services, and
resettlement.
The FY 2025 Executive Budget provides an additional
$2.4 billion to provide shelter and basic services
to migrants and asylum seekers and assist with
resettlement. This funding will support:
• Humanitarian aid for the City of New York,
including short term shelter services for migrant
individuals and families.
• Costs associated with operating humanitarian
emergency response and relief centers (HERRCs)
at Creedmoor Psychiatric Center, Randall’s Island,
and Floyd Bennett Field.
• Legal and case management services to help
asylum seekers le paperwork to receive work
authorization.
• Programs to provide communicable disease
testing, immunizations, and other health services.
• Programs to assist in relocation of migrant
individuals and families.
• Expenses related to the deployment of the
National Guard and other facets of the State's
response.
Provide More Intensive Support to Families in
Need. Local departments of social services play an
important role in connecting New York families to
public benets for which they are eligible. To oer
greater support to families as a unit and help address
any larger challenges to their well-being or their
ability to attain nancial stability beyond access to
benets, the Executive Budget invests more than $17
million to provide wrap-around services and case
management in local departments of social services.
Support Anti-Poverty Eorts in Rochester, Syracuse,
and Bualo. Nine of the top ten New York State zip
codes with the highest child poverty rates are in
Upstate cities. More than half of children in these zip
codes are in families living below the federal poverty
line, and these cities rank among those with the
highest child poverty rates nationwide. To support
eorts to address the immediate needs of these
children and families, the Executive Budget invests
a total of $50 million in one-time Federal TANF
resources in locally driven anti-poverty initiatives in
Rochester, Syracuse, and Bualo, where this poverty
is most concentrated.
Reduce The Risk of Sudden Unexpected Infant
Deaths (SUID). Safe sleep environments are crucial
for reducing the risk of sleep-related deaths among
infants. The Budget provides $2 million for the
distribution of portable cribs for under-resourced New
Yorkers at no cost.
Improve Afterschool Programming. To consolidate
and bolster afterschool programming and to reduce
administrative burdens for providers, the FY 2025
Executive Budget combines the Advantage and
Empire State After-school programs into a single
program. The Budget includes a $17.7 million increase
to overall afterschool funding to standardize funding
and eligibility, bringing the total to over $100 million.
Continue Investments in Youth Employment
Programs. Continuing the eorts included in the FY
2024 Enacted Budget, the FY 2025 Executive Budget
invests an additional $4.7 million to provide year-
round employment opportunities for at-risk youth
through the Summer Youth Employment Program
(totaling $50 million) and the Youth Opportunities
Program (totaling $38.8 million). This additional
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funding will ensure that State-supported youth
employment opportunities are maintained at existing
levels.
Provide Summer Food Benets to Students. During
the COVID-19 pandemic, Congress provided 100
percent Federal funding for States to operate a
summer food benet program called Pandemic EBT
(P-EBT) for low-income students who had been unable
to receive free school meals while schools had been
closed. The Federal government has since made this
program permanent and now requires a 50 percent
State match to administer. The FY 2025 Executive
Budget invests approximately $13 million to support
the administration of the program that is estimated to
provide over $200 million in benets to over 2 million
children.
Expand the Oce of Just Transition. The Executive
Budget bolsters the Oce of Just Transition by $25
million to support legislation enacted in the FY 2024
Budget targeting workforce training and retraining to
prepare workers for employment in the renewable
energy eld.
Ensure Paid Breaks for Breast Milk Expression in
the Workplace. The Budget advances legislation to
require all break time up to 20 minutes for breast milk
expression be paid.
Expand Recovery Tools for Stolen Wages. The
Budget proposes legislation to enable DOL to
exercise additional enforcement powers if an
employer has violated wage payment provisions.
Seizure of assets could be used to satisfy debt owed
to employees.
Implement Mandatory Federal Child Support
Changes. Legislation submitted with the Budget will
ensure New York maintains compliance with Federal
rules and regulations regarding child support as
changes take eect.
Limit Liquidated Damages in Certain Frequency of
Pay Violations. Legislation submitted with the Budget
limits plaintis' recovery of liquidated damages for
violations of the frequency of payment provisions in
the Labor Law where employees were paid regularly
on at least a semi-monthly basis.
Sunset the State's COVID-19 Sick Leave Law.
Legislation submitted with the Budget sunsets the law
which required employers to provide sick leave and
other benets for employees subject to a mandatory
or precautionary order of quarantine or isolation due
to COVID-19 law because its applicability to new
employers is unclear and quarantine requirements
have changed.
Direct More Federal Funds to Child Welfare. Local
districts currently must use 40 percent of their
combined $964 million in TANF Flexible Fund for
Family Services (FFFS) on child welfare activities. The
Executive Budget permanently increases the amount
local districts must spend on child welfare by $75
million, yielding $46.5 million in savings for the State
and $28.5 million in savings for local districts on child
welfare costs. This requirement diminishes Federal
funds available to local districts for other purposes by
$46.5 million, but the impact is oset in FY 2025 by a
$50 million increase to TANF/FFFS funds.
Extend and Make Permanent the Current Structure
of Financing Committee on Special Education
Placements. The room and board costs for children
with severe disabilities placed by Committees on
Special Education are shared between local social
services districts and school districts. There is no
State share for New York City placements, and the
former 18.42 percent State share for placements
outside of New York City was eliminated in the FY
2021, FY 2022, FY 2023, and FY 2024 Enacted
Budgets. For statewide consistency, the Executive
Budget makes the current funding structures
permanent, thereby aligning the scal responsibility
with the school district responsible for the placement.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
*Does not include benet payments under DOL’s Unemployment Insurance program
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GOVERNMENT
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
SUPPORT FOR LOCAL GOVERNMENT
The Executive Budget continues to deliver core
local government aid, including Aid and Incentives
to Municipalities (AIM), and restructuring and
eciency-based funding that seeks to maintain the
solid nancial footing that local governments have
predominantly been experiencing.
The State provides broad support for local
governments, including through general purpose
aid and a variety of local government restructuring
and eciency grants designed to help municipalities
work together, capture eciencies, save money, and
protect programs and services.
The Aid and Incentives to Municipalities (AIM)
program provides general-purpose aid to New York
State’s cities, towns, and villages. Other programs
providing aid to local governments include small
government assistance, miscellaneous nancial
assistance and support for municipalities with video
lottery gaming facilities.
Competitive Local Government Eciency Grants
help cover costs associated with consolidation,
shared services, or other eciency initiatives.
Citizens Reorganization Empowerment Grants
are available to local governments for planning
and implementing reorganization activities, such as
consolidations and dissolutions.
For cities, towns, or villages that consolidate or
dissolve, Citizen Empowerment Tax Credits provide
an annual aid bonus to bolster the newly combined
local government and provide direct relief to property
taxpayers.
In addition, the Financial Restructuring Board for
Local Governments assists distressed municipalities
by conducting comprehensive reviews to develop
recommendations for restructuring and improving
scal stability. The Board may oer grants or loans to
help implement its recommendations.
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SUPPORTING THE CONTINUED FISCAL
HEALTH OF LOCAL GOVERNMENTS TO
BENEFIT RESIDENTS AND TAXPAYERS
An unprecedented number of local governments
in New York State stand on strong nancial footing.
Municipalities are propelling the economy and serving
New Yorkers by paving roads, improving water and
sewer infrastructure, and redoubling eorts to keep
communities safe. These endeavors continue to be
supported both by local and State resources, but also
by Federal funding from the American Rescue Plan
Act (ARPA) and the Infrastructure Investment and Jobs
Act.
Also helping local budgets, local sales tax collections
through November 2023 were 4.4 percent higher
than in 2022, on a Statewide basis. New York City
collections were 6.1 percent higher, and collections in
Rest of State were up in all regions, reaching as high
as 5.7 percent growth in the Mohawk Valley.
While these robust sales tax results are largely due
to stronger consumer purchasing and higher prices
of goods and services, they also reect the State’s
continued focus on enforcement and compliance with
respect to internet sales tax collection. As a result of
these eorts, from State Fiscal Year 2020 through the
rst half of the State’s 2024 Fiscal Year, counties and
local governments have benetted from an additional
$1.87 billion in local revenue, cumulatively, and New
York City benetted from an additional $1.13 billion.
With the infusion of extraordinary Federal aid and
increased sales tax revenues, combined with the
State's longstanding eorts to provide mandate relief,
encourage shared services, and promote eciencies,
the vast majority of local governments are on
exceptionally strong nancial footing.
The number of local governments experiencing
scal stress, as identied by the Oce of the State
Comptroller's Fiscal Stress Monitoring System for
2023, is at a new record low of 14 municipalities out
of nearly 1,600 counties, cities, towns, and villages.
For the second year in a row, the system did not
identify any of the State's 57 counties as experiencing
scal stress.
Only two municipalities were designated as
experiencing “signicant scal stress,” and seven
municipalities were designated as experiencing
“moderate stress.” For comparison, the 2020
data designated nine municipalities as being in
“signicant scal stress” and ve municipalities being
in “moderate stress”. The 2023 data represents a
signicant decrease from the high of 69 municipalities
in 2014, with a consistent downward trend since.
Among the main beneciaries of the strong nancial
position of local governments are New York’s
taxpayers. Property taxes, the most important revenue
for local governments, remained stable throughout
the economic fallout of the pandemic and the
subsequent recovery. Through the twelfth year of the
Property Tax Cap, taxpayers have saved over $111
billion, comparing growth rates under the cap to the
ten-year period preceding it. For the typical taxpayer,
this equates to cumulative savings of $15,000.
Taxpayers have also enjoyed signicant predictability,
with average increases of just 1.87 percent per year
– which is roughly one-third of the average annual
growth from 2000 to 2010. Moreover, many counties,
cities, towns, and villages are reducing property tax
rates and levies in their adopted budgets for 2024.
The ultimate beneciaries of the strong scal health
of local governments are New York State residents,
who depend on local governments for everything
from drinking water to drivable roads to a litany of
vital local services. The rm nancial footing of local
governments position them to address emerging and
pressing needs and to focus on things that further
improve their community’s quality of life.
Impact of the FY 2025 Executive Budget on Local
Fiscal Year 2025
The overall impact of the Executive Budget on local
governments can be measured in two ways. First,
and most fundamentally, total assumed spending
on behalf of local governments in FY 2025 can
be compared to that of the prior scal year. This
view reects that State spending on behalf of
local governments can go up or down because of
budgetary changes, but also by increases in caseload
or statutory automatic inators.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Total spending on behalf of local governments
through major local aid programs and savings
initiatives is expected to total nearly $57.6 billion
in FY 2025 under the Executive Budget. This
represents an increase of $3.5 billion over the prior
year, predominantly due to increases in School Aid,
Medicaid, and support for New York City migrant
services.
The second way of measuring the impact of the FY
2025 Executive Budget on local governments is
reected on the traditional local impact table. In this
view, increases in caseload or statutory automatic
inators are excluded, and only new changes
proposed in this Executive Budget are considered.
Under these narrower criteria, actions taken in the
Executive Budget result in a year-to-year net positive
local impact of nearly $2.1 billion for municipalities and
school districts for their scal years ending in 2025.
Support for County Governments. Total State
spending on behalf of counties outside of New York
City through major local aid programs is expected to
total over $7.4 billion in FY 2025 under the Executive
Budget. This includes over $3.3 billion attributable to
the State takeover of local Medicaid growth.
Traditional local impacts result in a net positive impact
of $267 million in County Fiscal Year 2025, most of
which is due to signicant investments in partnerships
with counties, including:
• $85 million for a new partnership with counties
on public safety communications systems,
• $50 million for a new partnership with counties
on infrastructure grants,
• $50 million in new resources to support anti-
poverty initiatives in Rochester, Syracuse, and
Bualo,
• $30 million in funding for district attorney oces
and GIVE jurisdictions to prevent domestic
violence,
• $3.8 million for grants to counties to improve
ood resiliency ($15 million over two years),
• $3.7 million in the upcoming local scal year
($14.7 million over two years) to provide new
e-poll books and $3.7 million increase annually to
provide postage to boards of election, and
• $10 million annually for dedicated retail theft
teams in district attorney oces, with a separate
$5 million annually for local law enforcement
agencies to combat retail theft.
Other actions with a positive local scal impact for
counties include $16.5 million to increase human
services case management and wrap-around
services, $15.2 million in administrative eciencies
in the Early Intervention Program, as well as several
revenue actions including repealing and replacing
the cannabis potency tax and modernizing Tax Law to
include the vacation rental industry.
These positive impacts are partially oset by an
increased TANF FFFS child welfare threshold ($14.6
million impact) as well as a ve percent in-person
Early Intervention rate increase ($2.4 million) and a
four percent Early Intervention rate modication in
rural counties ($0.2 million).
Support for Cities, Towns and Villages. The
Executive Budget provides over $1.2 billion in support
for towns, villages, and cities other than the City of
New York. Traditional local impacts result in a net
positive impact of $7.9 million due to several revenue
actions, including repealing and replacing the
cannabis potency tax ($6.5 million) and modernizing
the Tax Law to include the vacation rental industry
($1.1 million).
Support for New York City. Total State spending
on behalf of New York City through major local aid
programs is expected to total over $24.5 billion in
FY 2025 under the Executive Budget. This includes
$4.0 billion attributable to the State takeover of local
Medicaid growth and over $13.3 billion in School
Aid. Total support for New York City is higher than
FY 2024 by $2.1 billion, in large measure due to
signicant support for the City's response to the
migrants crisis. In all, The Executive Budget provides
an additional $2.4 billion to address migrants and
asylum seekers. With the $1.9 billion already included
in the FY 2024 Financial Plan, the State is providing
a total of $4.3 billion. The funding in the Budget will
support:
• Humanitarian aid for the City of New York,
including short term shelter services for migrant
individuals and families.
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LOCAL GOVERNMENT
• Costs associated with operating humanitarian
emergency response and relief centers (HERRCs)
at Creedmoor Psychiatric Center, Randall’s Island,
and Floyd Bennett Field.
• Legal and case management services to help
asylum seekers le paperwork to receive work
authorization.
• Programs to provide communicable disease
testing, immunizations, and other health services.
• Programs to assist in relocation of migrant
individuals and families.
• Expenses related to the deployment of the
National Guard and other facets of the State's
response.
The $4.3 billion in the State's Financial Plan supports
both State and City programs and services, but nearly
$3.4 billion is estimated to directly reimburse City
costs for migrants.
As these funds ow to the City of New York, they
result in a net positive traditional local impact of over
$1.2 billion for the 2025 New York City Fiscal Year.
This is primarily due to $530 million in direct State
support for City migrant costs in City Fiscal Year 2025
alone (the Executive Budget also includes a new
$530 million for City Fiscal Year 2024), as well as
$350 million in State reimbursement for 100 percent
of the costs of shelters at Creedmoor Psychiatric
Center, Randall’s Island, and Floyd Bennett Field (the
Executive Budget also includes $288 million in City
Fiscal Year 2024).
In addition, New York City will receive a year-to-year
Foundation Aid increase of $222.3 million in the
2025 School Year, as well as a $119.7 million increase
in school expense-based aid and categorical aid
programs.
Several revenue actions will increase City revenue by
$38.9 million, most notably by permanently extending
the itemized deduction limit on high income lers
($20 million) and modernizing the Tax Law to include
the vacation rental industry ($10 million).
Partially osetting these investments is the extension
of an intercept of sales tax in New York City in order
to provide funding for distressed hospitals that would
otherwise sunset March 31, 2025 ($37.5 million in
new impact in City Fiscal Year 2025; $150 million
annualized going forward), as well as several smaller
negative impacts, including an increased TANF FFFS
child welfare threshold ($5.1 million).
Support for School Districts. For SY 2025, the
Executive Budget increases Foundation Aid for school
districts outside New York City by $284.8 million and
expense-based and categorical aids by $198.2 million.
Partially osetting this impact, the Budget continues
the current State share of CSE placements leading to
a negative impact of $28.6 million.
PROPOSED FY 2025 BUDGET ACTIONS
Expand and Improve the Local Government
Eciency Grant Program. The Local Government
Eciency Program provides technical assistance
and grants for intermunicipal projects targeting
shared opportunities, cost savings, and delivery of
ecient, quality services. To expand the reach of this
successful program, the FY 2025 Executive Budget
increases the number of awards possible each year
and the maximum award amounts. Currently, planning
grants may be up to a maximum of $12,500 per
municipality and $100,000 total per grant. Beginning
in FY 2025, the new maximum would be $20,000
per municipality and $120,000 total per grant.
Implementation grant maximums would increase from
$200,000 per municipality and $1 million total per
grant to $250,000 per municipality and $1.25 million
total per grant.
Total annual funding to support planning and
eciency grants will double from $4 million to $8
million. This larger pot for the annual procurement,
combined with the increased grant maximums, will
encourage and support more local governments
to work together and tackle larger shared services
opportunities.
Support Local Government Reorganization
Programs. The FY 2025 Budget continues support for
local government restructuring and eciency grants.
Citizens Reorganization Empowerment Grants provide
funding of up to $100,000 to local governments for
planning and implementing reorganization activities,
such as consolidations and dissolutions. Citizen
Empowerment Tax Credits support cities, towns,
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
or villages that consolidate or dissolve through tax
credits that provide an annual aid bonus equal to 15
percent of the newly combined local government’s
tax levy. At least 70 percent must be used as direct
relief to property taxpayers.
Sunset State Matching Funds for the County-Wide
Shared Services Initiative. The FY 2018 Budget
enacted the County-Wide Shared Services Initiative
(CWSSI) to provide a process whereby each county
could develop, approve, and submit to the State a
plan for new shared services that, once implemented,
achieves demonstrable taxpayer savings. The
Executive Budget ensures that matching fund
applications for projects already implemented will be
supported. After that, the ability to provide matching
funds will sunset, while counties would still have the
option to convene shared services panels to generate
future savings for taxpayers.
Create the County Partnership Grants Program.
The FY 2025 Executive Budget creates a $250
million grants program to fund shared expenses
and promote collaboration between the State and
Counties. The Program will consist of $135 million of
new funding, including $85 million to help counties
purchase public safety equipment, and $50 million for
site development preparation grants.
Increase New York City’s Transitional Finance
Authority (TFA) Bond Limit. Since 2009, the limit
on New York City's TFA bonds outstanding has been
$13.5 billion. Recognizing that this limit has not been
adjusted in almost 15 years, combined with the sharp
rise in the cost of construction in the City since the
pandemic, legislation submitted with the Budget
increases this limit to $19.5 billion on July 1, 2024, and
to $25.5 billion, on July 1, 2025.
Continue the State Cap and Takeover of Local
Medicaid Costs. The FY 2025 Executive Budget
shoulders $7.3 billion in Medicaid cost increases
on behalf of local governments as part of the State
cap and takeover of local Medicaid growth. In FY
2024 alone, New York City will save $3.9 billion and
counties across the State will save an additional $3.3
billion by the State’s assumption of costs. From FY
2007 when the State cap of Medicaid growth began,
through FY 2023, the State has assumed nearly $39
billion in Medicaid costs that counties and New York
City would have otherwise had to bear.
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MENTAL
HYGIENE
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
OVERVIEW
The mental hygiene agencies and associated
community-based programs provide services to
individuals living with developmental disabilities,
mental illness, and addictions. These agencies
include the Oce for People With Developmental
Disabilities (OPWDD), the Oce of Mental
Health (OMH), the Oce of Addiction Services
And Supports (OASAS), the State Council on
Developmental Disabilities (CDD), and the Justice
Center for the Protection of People with Special
Needs (Justice Center). The mental hygiene agencies
support services for more than 1 million individuals,
including approximately 900,000 people with mental
illness, 731,000 individuals in substance use disorder
or problem gambling programs, and nearly 135,000
people with developmental disabilities.
CARING FOR NEW YORK’S
VULNERABLE CITIZENS
The State’s Mental Hygiene system provides or
oversees care and services for individuals in State-
operated and voluntary-operated programs that help
individuals live in the most integrated setting possible
and lead full and productive lives. These services
include prevention, harm reduction, residential,
outpatient, clinic, habilitative, treatment, and recovery
programs, and institutional and research facilities.
The Executive Budget reects the Governor’s priority
to expand available services, improve access to
care, and protect vulnerable individuals. Proposed
actions for the Mental Hygiene agencies build on
prior investments in mental health, targeted eorts
to address the opioid crisis, and continued support
for community-based services including residential
programs. The Executive Budget proposals result in
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MENTAL HYGIENE
Mental Hygiene system spending of $10.9 billion in
FY 2025, reecting annual spending growth of $814
million (8.0 percent).
PROPOSED FY 2025 BUDGET ACTIONS
The Executive Budget continues to expand mental
health services; combat the overdose epidemic
through investments in prevention, treatment, harm
reduction, and recovery programs; and fund initiatives
to promote access to care and supportive services.
The Executive Budget expands community-based
care and continues investments in the direct care and
clinical workforce to ensure that individuals receiving
mental hygiene services are in the most integrated,
appropriate, and cost-eective setting possible.
Supporting People With Developmental Disabilities
And Their Families
Governor Hochul’s commitment to improving the
overall quality, availability, and cost-eectiveness
of community-based, person-centered services
for individuals with developmental disabilities is
demonstrated by targeted investments in OPWDD to
address critical needs and support important policy
reforms.
The Executive Budget honors the State’s pledge to
support individuals with developmental disabilities
in the most appropriate community-based settings.
Specically, the Executive Budget will:
Support Access to Employment. The Executive
Budget will include a $6.7 million investment to
support New York’s commitment to becoming an
Employment First state as it pertains to people with
disabilities. This eort will oer New Yorkers with
disabilities employment opportunities rst before
recommending alternative supports and services,
through a multi-agency collaboration led by OPWDD.
Support Access to More Independent Living
Settings. The Executive Budget includes legislation
that would allow greater exibility for the performance
of certain nursing tasks by unlicensed employees
of providers certied by OPWDD in non-certied
community-based settings, such as a person’s private
home or apartment. This would allow more people
with developmental disabilities to remain in or
transition to more independent settings, decreasing
the reliance on certied residential settings, like
group homes or intermediate care facilities (ICFs).
Commit an Additional $15 Million to Develop
Housing. The FY 2025 Executive Budget continues
to expand independent living opportunities for
individuals with intellectual and developmental
disabilities. Since FY 2016, the State has invested
$125 million in capital resources to develop safe
and accessible residential opportunities, and the
Executive Budget raises this investment to a total of
$140 million. These funds are distinct from, and in
addition to, resources that are available from the ve-
year, $25 billion aordable and supportive housing
plan, which is also helping support the development
of residential opportunities for people with intellectual
and developmental disabilities.
Invest in New Service Opportunities. The Executive
Budget invests new State resources ($30 million in FY
2025, $60 million annualized) to fund OPWDD priority
program reforms and new service opportunities
that enable individuals to receive the support they
need. This includes individuals who are entering
the OPWDD service system for the rst time and
individuals already receiving services, but whose
needs have changed. These State funds leverage
Federal resources for a gross increase of $120 million
annually.
Expand Special Olympics NY (SONY). The
Executive Budget includes a $1 million annual
funding increase to SONY in FY 2025. SONY not
only provides inclusive sports training, skill building,
and competition, it also oers free health screenings
and health education to individuals with intellectual
disabilities.
Promoting Mental Health
The Executive Budget demonstrates Governor
Hochul’s commitment to enhancing and expanding
access to mental health services to ensure people
receive the support they need in the most appropriate
and eective setting. OMH has continued to
strengthen its service oerings in recent years by
expanding supported housing units throughout the
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
State, providing additional peer support services, and
developing new services such as mobile crisis teams.
Since FY 2015, the expansion in community-based
services has resulted in more than 143,000 previously
unserved individuals receiving services. The Budget
advances eorts that improve quality and expand
capacity of services in the community. Specically, the
Budget will:
Increase Support for Existing Residential Programs.
The FY 2025 Executive Budget includes $43 million
to increase stipends for over 17,000 OMH Supported
Housing units to keep pace with rising property costs.
This is consistent with the legislation enacted in the
FY 2024 budget that extended property pass through
provisions to include OMH’s non-licensed residential
programs.
Ensure Access to Care through Workforce
Initiatives. The FY 2025 Budget includes ve new
initiatives to address recruitment and retention in
the mental health workforce. These initiatives aim
to expand the mental health workforce through
job marketing, the creation of a job bank, and the
creation of a Behavioral Health Fellowship Program.
The initiatives will meet the unique needs of rural
communities by providing rural governments with
funding to develop targeted workforce investments.
OMH also will develop new avenues for credentialing
mental health paraprofessionals to bolster recruitment
and retention for the voluntary mental health
workforce.
Strengthen the 988 Crisis Hotline through Maternal
Mental Health Training. The 988 Crisis Hotline,
which was established in FY 2023 to connect
individuals in crisis to a variety of community-based
crisis intervention programs, will be increased by an
additional $100,000 to create a specialized maternal
mental health training program for providers. This
investment will connect pregnant and postpartum
New Yorkers to counselors properly trained to help
navigate maternal mental health challenges.
Expand Maternal Mental Health Training. The FY
2025 Executive Budget includes $1.5 million annually
to expand Project TEACH (Training and Education
for the Advancement of Children’s Health) through
specialized support for mental health and substance
use treatment for individuals during pregnancy and
postpartum. This funding will enhance provider
education, consultation, and awareness of mental
health and substance use resources for: therapists;
lactation consultants; Women, Infant and Children
(WIC) sta; home visiting nurses; and other frontline
practitioners working directly with the perinatal
population.
Establish Loan Forgiveness Program for Mental
Health Clinicians Serving Children. Similar to
the successful OMH loan forgiveness program,
established by Governor Hochul in FY 2023, the
FY 2025 Budget provides $4 million specically for
licensed mental health clinicians serving children and
families in OMH and Oce of Children and Family
Services licensed settings.
Youth ACT Teams. The FY 2025 Executive Budget
includes $9.6 million to create 12 new youth
Assertive Community Treatment (ACT) teams.
ACT is an evidenced-based practice that oers
treatment, rehabilitation, and support services, using
a recovery-based approach, to individuals that have
been diagnosed with serious mental illness. By FY
2027, the statewide total will increase from 30 to
42 specialized teams for children and youth. These
additional youth teams will help address the needs of
children who are at risk of needing, or returning home
from, high end services.
Peer-to-Peer Youth Programs. The FY 2025
Executive Budget continues the State’s commitment
to peer-driven recovery models by expanding the
reach of youth-driven and youth-centered programs.
An annual investment of $2 million will expand peer-
to-peer supports, including Teen Mental Health First
Aid and safe spaces outside of the home and school
where youth can meet with peers, provide support
to each other, and utilize established connections to
professionals and trained adults to better address
mental health and wellness challenges.
Partial Hospitalization Program (PHP). The Executive
Budget will expand access to high-intensity services
through $2.8 million invested annually to enhance
PHP children’s services rates by 25 percent and
develop several new PHP programs.
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Specialized Children’s Community Residence
Programming. The FY 2025 Executive Budget
bolsters mental health services for children and
families by investing $1 million annually to increase
training and specialized programs focusing on
children with welfare system involvement. Funding
will support two programs in Children’s Community
Residences in each OMH region to support
reunication with families and build networks to
mental health services.
Provide Social Media Resources for Youth and
Caregivers. The Oce of Mental Health will develop
materials to educate caregivers on the impacts of
social media on youths and methods to monitor social
media usage to reduce negative eects. This will help
ensure a culture of digital safety in schools.
Improve Mental Health Admission and Discharge
Decisions by Hospitals. The FY 2025 Executive
Budget includes $7 million in funding to expand
surveillance and regulatory compliance activities
within OMH licensed and unlicensed program
settings, including hospital inpatient programs and
Comprehensive Psychiatric Emergency Programs
(CPEPs). OMH and DOH will also nalize regulations
to codify the hospitals’ admission and discharge
requirements for patients with behavioral health
conditions.
Expand Inpatient Bed Capacity. The FY 2025
Executive Budget includes funding to open another
125 State-operated inpatient psychiatric beds,
including 15 for children and adolescents, 85 for
adults, and 25 forensic; and 75 Transition to Home
Unit (THU) beds in one State-operated and two
community-based facilities. This additional capacity
will help meet the increased need for mental health
services across the State.
Support Individuals with Mental Illness and Involved
in the Criminal Justice System. The Executive
Budget provides several additional supports for
people with mental illness who are involved in the
criminal justice system, including establishing a team
within OMH that will work with mental health courts
and providers to ensure individuals are connected
to the services they need. The budget also includes
$6.2 million to provide mental health specialists
and peers in mental health courts, $2.8 million to
provide housing and supports to individuals with
mental illness experiencing homelessness and/
or involved in the criminal justice system, and $9.6
million to enhance and expand specialized Forensic
Assertive Community Treatment (FACT) teams to
support individuals with serious mental illness in the
community.
Crisis Intervention Team (CIT) Training. The FY
2025 Executive Budget includes $187,000 in funding
to expand CIT Training. This will promote better
outcomes when law enforcement responds to
individuals with acute mental health needs, including
decreasing the number of arrests and increasing
connections to appropriate mental health services.
Addressing Overdose Epidemic
Under Governor Hochul’s leadership, OASAS is taking
signicant steps to address the overdose epidemic
by improving access to addiction services, removing
barriers to treatment, developing new and innovative
treatment models, and incorporating life-saving harm
reduction principles throughout New York State’s
network of community-based providers.
The Executive Budget continues the historic
investments made in FY 2023, which included
signicant increases in operating and capital support
for addiction prevention, treatment, harm reduction,
and recovery programs which serve people with
addiction throughout the State, their families, and
their communities.
The Executive Budget sustains New York State’s
commitment to critical initiatives, including:
Addressing the Overdose Epidemic Using a
Patient Centered Approach. OASAS will continue
to oversee one of the nation’s largest substance use
disorde¬r systems of care with approximately 1,700
prevention, treatment, harm reduction, and recovery
programs serving over 731,000 individuals per year.
As the State’s opioid treatment authority, OASAS
will continue to coordinate State-federal relations
in addiction services and increase evidence-based
practices proven to support individuals contemplating
or new to recovery and prevent overdoses. At
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Governor Hochul’s direction, OASAS’ Division of Harm
Reduction has made access to life-saving medication
and supplies simple and aordable.
Opioid Settlement Fund Investments. Since 2021,
the State of New York has reached settlement
agreements with and received payments from opioid
manufacturers and distributors. Through these
agreements, the State and local municipalities are
expected to receive more than $2 billion through
2040. Over $480 million in payments related to those
settlement agreements will have been deposited in
the State’s Opioid Settlement Fund through FY 2025.
These funds are being used to support addiction
programming and services throughout the State.
OASAS, as the lead agency and administrator of
the fund, is collaborating with other State agencies
including DOH and OMH to develop strategies and
initiatives to provide individuals the care and support
they need. The State is being guided by the Opioid
Settlement Fund Advisory Board, which is charged
with making recommendations on the allocation of
these funds. The Board issued its annual report on
November 1, 2023.
Opioid Stewardship Investments. The FY 2023
Enacted Budget appropriated $200 million to invest
monies owed to the State retroactive to 2017 and
2018, after the Opioid Stewardship Act was upheld
by the U.S. Supreme Court. The Executive Budget
reappropriates these funds, which are reduced to
reect lower than anticipated receipts. During FY
2025, OASAS will continue using Opioid Stewardship
Funds, in collaboration with DOH, to pursue a number
of harm reduction initiatives, including medication
and treatment aordability programs, a grant program
supporting 15 community-based harm reduction
programs throughout the State, and the development
of a harm reduction training program for personnel
from law enforcement agencies, correctional facilities,
and the court system.
Support Recovery Community Centers. The FY
2025 Executive Budget provides $5 million to
support existing recovery community centers, which
are currently funded by Federal grants expiring in
October. These State resources will ensure that
people have peer support from these programs
that are proven eective in helping people start and
sustain their recovery from addiction.
Protecting Vulnerable People
To protect the health and safety of vulnerable people
under the State’s care or oversight, the Justice Center
has primary responsibility for receiving, investigating
and/or reviewing abuse and neglect allegations at
certain facilities and programs that are operated,
certied, or licensed by the following six agencies:
OMH, OPWDD, OASAS, DOH, OCFS, and the SED.
The Justice Center is responsible for ensuring the
safety and well-being of the approximately one million
adults and children who, due to physical or intellectual
disabilities, or the need for services or placement, are
receiving care from one of the approximately 3,500
facilities or service providers overseen by the six
State agencies. The Budget honors the State’s pledge
to protect vulnerable populations. Specically, the
Executive Budget will fund:
Investigations Expansion. The Executive Budget
includes an investment of $1.3 million into the
agency’s Investigations Unit to support an additional
18 FTEs across six dierent titles. This expansion
will address the anticipated need for investigative
services driven by mental health investments,
improve cycle time for investigations, and shorten the
time sta accused of unsubstantiated charges are out
of work. The costs of this expansion are supported by
federal Medicaid reimbursement.
Multi-Agency Budget Actions
Cost-Of-Living Adjustment (COLA). For the third
consecutive year, Governor Hochul’s Executive
Budget provides a cost-of-living adjustment (COLA) to
voluntary operated providers of services for OPWDD,
OMH, OASAS, Oce of Children and Family Services
(OCFS), Oce of Temporary and Disability Assistance
(OTDA), and the State Oce for the Aging (SOFA).
While other programs are at or decreasing to stay
within the State’s resources, these programs will
receive 1.5 percent increases, which build on the 5.4
percent increase in FY 2023 and 4.0 percent increase
in FY 2024, for a cumulative increase of more than
$1.4 billion. For the mental hygiene agencies, the new
COLA provides an additional $120.4 million ($195.8
million including federal matching funds) for OPWDD,
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MENTAL HYGIENE
OMH and OASAS programs in FY 2025, and will
provide scal relief to providers, enabling them to
oer more competitive wages to their sta to address
workforce recruitment and retention issues and better
support the individuals they serve.
Minimum Wage. The Executive Budget invests
an additional $57 million in State funds to support
minimum wage increases, including indexing
minimum wage to ination, for sta at programs
licensed, certied, or otherwise authorized by
OPWDD, OMH, and OASAS.
Enhance Support for the Interagency Coordinating
Council for Services to Persons who are Deaf,
Dealind, or Hard of Hearing. The FY 2025 Budget
provides for an additional FTE to better support the
Interagency Council for the Deaf, Dealind, or Hard
of Hearing within the Oce of the Chief Disability
Ocer (CDO) and the dealind community. This sta
member will increase outreach and advocacy for
dealind individuals.
Commercial Insurance Minimum Reimbursement
Rates. Despite laws requiring parity, many commercial
insurance plans do not adequately compensate
providers for the costs incurred to deliver services
to patients. To correct this, Governor Hochul will
pursue legislation to require commercial insurance
companies to pay for State-licensed outpatient mental
health and substance use services at least at the
Medicaid rate.
Olmstead Plan. The FY 2025 Executive Budget
includes $250 thousand for New York’s Most
Integrated Setting Coordinating Council (MISCC)
to issue an Olmstead Plan. This will ensure that
people with disabilities receive services in the most
integrated setting appropriate to their needs. Under
the Oce of the Chief Disability Ocer and the new
Olmstead Director, this plan will include people with
physical, sensory, developmental, and/or intellectual,
mental, and behavioral disabilities.
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PUBLIC SAFETY
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
KEEPING NEW YORKERS SAFE
The Executive Budget includes targeted public safety
investments to keep New Yorkers safe and improve
quality of life. These investments are focused on
specic categories of crime, including property theft
and domestic violence. This comprehensive public
safety funding plan builds on historic investments in
proven gun violence prevention programs and the
criminal justice system.
Public Safety Agencies
New York State’s Public Safety agencies assist local
communities with crime prevention, supervise criminal
oenders both in prison and in the community, patrol
highways, protect critical State assets, and respond to
natural disasters and terrorist threats.
The Department of Corrections and Community
Supervision (DOCCS) is responsible for providing
services to incarcerated individuals in safe and
secure facilities, preparing incarcerated individuals
for release, and ensuring those individuals receive
appropriate monitoring and support while under
community supervision.
The Division of Criminal Justice Services
(DCJS) collects and analyzes statewide crime
data, administers local criminal justice programs,
administers the State’s Sex Oender Registry and
DNA Databank, and tracks the eectiveness of
system-wide criminal justice strategies designed to
enhance public safety.
The Division of State Police (DSP) protects the
citizens of the State, prevents and detects crime and
other violations of law, and promotes highway safety.
The Division of Homeland Security and Emergency
Services (DHSES) is dedicated to the preparation
and protection of the State’s citizens, communities,
resources, economy, and infrastructure from threats
and acts of terrorism, natural disasters, and other
emergencies.
The Oce of Indigent Legal Services (ILS) and
the associated Indigent Legal Services Board are
responsible for examining, overseeing, and ensuring
the quality of legal representation for residents who
are unable to aord an attorney.
The Division of Military and Naval Aairs (DMNA)
encompasses all of New York’s reserve forces
including the Army National Guard, Air National
Guard, Naval Militia and New York Guard; providing
land, air, and naval military forces and facilities
capable of executing global missions across unied
operations in support of our communities, State, and
Nation.
The Oce of Victim Services (OVS) provides
compensation to victims of crime, funds direct
services to crime victims via a network of community-
based programs, and advocates for the rights and
benets of all innocent victims of crime.
PUBLIC SAFETY SPENDING
The Executive Budget makes targeted investments
in initiatives that will strengthen eorts to keep New
Yorkers safe. Spending for New York State’s public
safety agencies is projected at $8.5 billion for FY
2025.
Proposed FY 2025 Budget Actions
Combat the Rise in Hate Crime. The Executive
Budget includes an increase of $10 million for the
next round of the Securing Communities Against
Hate Crimes (SCAHC) program, for a total of $35
million. These grants provide funding to boost safety
and security for certain organizations at risk of hate
crimes or attacks because of their ideology, beliefs,
or mission. The Executive Budget also includes
legislation to expand the list of crimes eligible for
prosecution as a hate crime.
Stopping Organized Retail Theft. The Executive
Budget includes $40.2 million to tackle property crime
and bring relief to small businesses. This funding
includes measures to:
• Deploy Dedicated Retail Theft State Police Teams.
The Executive Budget includes $25.2 million in
new funding to deploy a dedicated State Police
team to build cases against organized retail theft
rings and create a new State Police enforcement
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PUBLIC SAFETY
unit dedicated to this purpose.
• Deploy Dedicated Retail Theft Teams in
District Attorney (DA) Oces. The Executive
Budget includes $10 million in funding for DAs to
prosecute property crime cases.
• Fund Local Law Enforcement to Combat Retail
Theft. The Executive Budget includes $5 million
in additional State funding to build the capacity
of local law enforcement eorts to combat retail
theft.
• The Executive Budget includes legislation making
it illegal to foster the sale of stolen goods online
and increasing criminal penalties for assault of
retail workers.
Preventing and Prosecuting Domestic Violence. The
Executive Budget includes $40.8 million to reduce
assaults with a focus on domestic violence. These
investments are designed to increase the prosecution
of domestic violence cases among high-risk oenders
and to help survivors recover and regain stability.
• Domestic Violence Initiatives. The Executive
Budget provides $35.8 million in support of this
comprehensive Domestic Violence initiative.
Funding will be provided to DAs to expand the
Domestic Violence STAT Model, which is a best
practice that supports collection of evidence-
building and relationship building with a victim
before an arrest is made. The Executive Budget
also provides Gun Involved Violence Elimination
(GIVE) jurisdictions funding for risk assessments,
reporting, and increased focus on high-risk
domestic violence oenders.
• Support Survivors in Immediate Crisis. The
Executive Budget continues the $5 million grant
program to victims of domestic violence to be
used to cover expenses in emergency situations.
Victim Assistance Funding. The Executive Budget
includes $120 million in State funding to ensure crime
victim service providers are not impacted by potential
Federal Victims of Crimes Act (VOCA) shortfalls.
These victim services organizations provide support
and nancial assistance to survivors during their time
of need, including shelter, food, safety, and security
measures.
This funding is in addition to the $43 million in State
resources added by the Governor in the FY 2023
Budget to prevent adjustments to current victim
services’ contracts associated with Federal funding
reductions.
Actions to Reduce and Prevent Gun Violence. The
Executive Budget continues the historic investment
of $347 million in programs to prevent and reduce
gun violence in our communities. Since this
unprecedented funding level, shooting incidents
have declined by 38 percent in New York City and 35
percent in Gun Involved Violence Elimination (GIVE)
jurisdictions. This investment will continue to allow
communities, law enforcement, and nonprot groups
to stem gun violence in New York State.
Improve the Eectiveness of the Criminal Justice
System. The Executive Budget continues critical
investments totaling $290 million to restore the
eectiveness of the continuum of the criminal justice
system, including community investment, crime
prevention, law enforcement, prosecution, and
reentry services.
Correctional Facility Eciencies. The Executive
Budget includes legislation to allow the State to
act expeditiously to right-size and eliminate excess
capacity by allowing for the closure of up to ve
correctional facilities with 90 days’ notice. This
legislation will allow for an increase in the operational
eciency of the correctional system.
Support Reentry and Reduce Recidivism. The
Executive Budget includes $6.1 million in investments
designed to improve reentry into the workforce,
reduce recidivism, and increase community safety in
New York.
• Provide More Intensive Supervision of
Individuals on Parole. The Executive Budget
provides an additional $3 million in State funding
to expand the Supervision Against Violent
Engagement (SAVE) Program, which uses
enhanced supervision, intelligence and data
gathering, and local cooperation to prevent gun
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
violence and violent crime among the most high-
risk releasees.
• Expand Transitional Housing Opportunities. The
Executive Budget provides $2 million in additional
State funding to expand the existing program
to incorporate housing vouchers and expand
eligibility to include women.
• Expand College Programming to All State
Prisons. The Executive Budget will expand
college programs to all State correctional facilities
and enhance existing programs to provide a
wider variety of degree tracks and areas of
concentration. Education is a critical rehabilitative
tool that enhances personal development, career
prospects, and reentry to the community.
Reduce Fatal Fires. The Executive Budget includes
$8.6 million to increase the State’s capacity to
investigate fatal and near-fatal res and provide
resources to support local community risk reduction
eorts. This funding includes measures to:
• Launch Fire Action Teams and Expand State
Fire Investigation Branch. The Executive Budget
provides $5.3 million in State funding for the
Division of Homeland Security and Emergency
Services (DHSES) Oce of Fire Prevention
and Control (OFPC) to create teams focused
on community risk assessment and reduction,
increase evaluation of causes of fatal and near-
fatal res, and provide training to prevent deadly
lithium-ion battery res.
• Establish Grants to Support Local Fire
Investigation. The Executive Budget provides
$3.3 million in State funding for a competitive
grant program for local governments to maintain
their assets and increase re prevention eorts
through community risk reduction eorts.
Improving Emergency Response and Protect Our
Communities. The Executive Budget includes funding
to support a comprehensive resiliency plan to protect
New Yorkers from extreme weather. This funding
includes measures to:
• Strengthen the State’s Emergency
Preparedness and Response. The Executive
Budget provides $10.4 million in additional State
funding to the DHSES Oce of Emergency
Management to increase the State’s regional
presence, increase local planning and training,
provide additional tabletop exercises, and build
out analytic and geospatial capabilities.
• Flood Resiliency and Response Grant Program.
The Executive Budget provides $15 million in
funding to supply local and county governments
with additional generators, high-ow pumps,
ood barrier technology, and other equipment
used in response to ooding and other weather
emergencies.
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PUBLIC SAFETY
*For DHSES, there is an anticipated decrease in FY 2025 Federal pass-through Federal
Emergency Management Agency (FEMA) reimbursement for localities related to the COVID-19
emergency.
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STATE
WORKFORCE
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
STATE WORKFORCE
The State Workforce is growing steadily due to the
concerted eorts of suspending a years-long hiring
freeze, eliminating application fees for civil service
exams, expanding opportunities for individuals
with disabilities, and making it easier to onboard
healthcare and public safety employees through the
Hiring for Emergency Limited Placement (HELP)
program.
The Executive Budget builds on this progress by
expanding the HELP program, removing educational
barriers to employment, incentivizing recruitment
through elimination of pay deferrals, making
workforce investments in several agencies and
increasing the operational capacity of the State’s
correctional system.
BUILDING ON THE SUCCESS OF THE
HELP PROGRAM
In 2023, the Department of Civil Service launched the
HELP program to address the statewide workforce
shortage in critical health and safety titles across state
government. Since then, more than 6,000 have been
hired into healthcare and public safety positions,
helping to reduce the stang shortages in these
crucial roles.
The Executive Budget builds on this success by
expanding HELP so that agencies can ll vacancies
open to the public, from oce assistants to engineers,
on a permanent basis. This expanded program
will enable State agencies to ll critical vacancies
more eectively, while the Department continues to
implement eorts to improve and transform the civil
service hiring process by establishing new testing
centers and recruitment oces across the State.
REMOVING EDUCATIONAL BARRIERS
TO EMPLOYMENT
The Executive Budget directs the Department of
Civil Service to review college degree requirements
for hundreds of civil service titles and consider
equivalent experience where it is sensible to do so.
This change could aect hundreds of titles across
state government agencies.
By combining experience-based hiring with degree-
based hiring, the state will expand opportunities for
many New Yorkers without diluting the quality of the
candidate pool. Many employers that have made a
college degree optional report that non-graduates
with experience perform nearly or equally well on key
factors such as time to reach full productivity, time to
promotion, and level of productivity.
ELIMINATING THE LAG PAYROLL AND
SALARY WITHHOLDING PROGRAM FOR
NEWLY HIRED STATE EMPLOYEES
The Executive Budget advances legislation to
eliminate the Lag Payroll and Salary Withholding
Program for new State employees hired on or
after July 1, 2024, pursuant to agreements with the
labor unions representing Executive Branch State
employees, and the election of the Judiciary and
Legislature for employees under their purview.
The elimination of these decades-old, collectively
negotiated measures is necessary to improve the
State’s recruitment of new employees, particularly in
entry-level jobs. The Lag Payroll requires employees
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STATE WORKFORCE
to wait approximately one month before receiving
their rst paycheck, and the Salary Withholding
Program requires a 10 percent pay reduction over
the rst ten weeks of employment. The continuation
of these measures is not feasible in today’s ultra-
competitive labor market considering the economic
realities individuals are facing in providing for the
necessities of life.
STATE WORKFORCE INVESTMENTS &
EFFICIENCIES
The Executive Budget will provide stang
investments to reinforce careers and public services
in several agencies. The Budget also advances
legislation to allow the State to close up to ve
prisons – following the provision of 90 days notice
– to increase the operational eciency of the
correctional system.
Below is a list of selected agencies where the
Executive Budget proposes additional workforce
investments.
• Oce of Mental Health: To support the
recruitment and retention of the mental health
workforce and additional inpatient beds.
• Oce for People with Developmental
Disabilities: To support the Intensive Treatment
Opportunity (ITO) Expansion.
• Department of Health: To support creating and
establishing the regional Emergency Medical
Services districts.
• Oce of Information Technology Services:
To support project development, increased
cybersecurity activity and maintenance of
mission-critical systems.
• Division of State Police: To support the initiative
to stop organized retail theft.
• Division of Homeland Security and Emergency
Services: To support expanded emergency
service capacity, the reduction of fatal res and
the prevention of domestic terrorism.
• Oce of Parks, Recreation and Historic
Preservation: To support the park police, public
safety, the opening of the Sojourner Truth Park
and the administration of federal grant funding.
Several agencies will also benet from investments in
the budget, including, but not limited to the Oce of
the Attorney General, the Department of Taxation and
Finance, the State Education Department, the Justice
Center and the Oce of Temporary and Disability
Assistance. There is also a proposal to transfer the
Oce of Renewable Energy Siting to the Department
of Public Service to better align the State’s energy
siting and permitting eorts.
COLLECTIVE BARGAINING
The State reached collective bargaining agreements
with the Public Employees Federation and United
University Professions in FY 2024, and is actively
negotiating successor agreements with other unions
representing State employees whose contracts are
now expired.
The settled agreements provide annual 3% salary
increases, a $3,000 bonus payment, and changes
to the health insurance program that will encourage
in-network employee utilization to help control health
insurance costs.
Coupled with the prior-year agreement with the Civil
Service Employees Association, and the extension
of provisions to unrepresented employees, the State
has reached agreement with approximately 80% of its
workforce through FY 2026.
LOAN FORGIVENESS PROGRAM
AWARENESS CAMPAIGN
To assist recruitment eorts for hard-to-ll positions,
such as engineers and mental hygiene employees,
the Executive Budget directs the Oce of Employee
Relations to commence an awareness campaign
for the federal government’s Public Service Loan
Forgiveness (PSLF) Program. This campaign will seek
to recruit and retain State employees by ensuring
they are aware of this valuable program and its
potential benets.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The PSLF is a federal program that rewards and
incentivizes public service work by cancelling a
portion of borrowers' federal student loans. The
program requires borrowers to be full-time employees
of an eligible public service employer and make 120
qualifying payments towards their student loans,
after which the remainder of their Federal student
loan debt can be forgiven if proper documentation is
submitted to the Federal government.
These eorts will build on legislation signed by
the Governor in 2022 to make the program more
accessible by setting a standard hourly threshold for
full-time employment for PSLF purposes and clarifying
key legal terms associated with the program.
EMPLOYEE FRINGE BENEFITS AND
FIXED COSTS
The State provides a variety of fringe benets to
its current and former employees, including health
insurance, pensions, payment of the Social Security
payroll tax and workers’ compensation coverage for
injured workers. Fixed costs include payment in lieu
of taxes to the City of Albany for the Empire State
Plaza and taxes on other state-owned land, as well
as payments for judgments/settlements against the
State under the Public Ocers Law and in the Court
of Claims.
All Governmental Funds spending is projected to
decline as a result of the proposed prepayment of the
FY 2025 Pension obligation in FY 2024, illustrated in
the following table.
• NYSHIP. The increase in spending reects
medical ination including the rising cost of
prescription drugs and an anticipated increase in
utilization of non-essential procedures postponed
during the pandemic.
• Pensions. The decline in spending is a result
of the proposed prepayment of the FY 2025
Pension obligation, of approximately $1.9 billion
in FY 2024. This proposal is estimated to result in
approximately $110 million in interest savings.
• Social Security Payroll Tax. The increase reects
general salary increases pursuant to the recent
collective bargaining agreements and current
spending trends.
• All Other. Workers’ Compensation, other fringe
benets and xed costs reect wage and
property tax increases, and current spending
trends.
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STATE WORKFORCE
PROPOSED EXECUTIVE BUDGET
ACTIONS
Provide a Market Rate of Interest on Court
Judgments
The Executive Budget proposes a variable market-
based interest rate on court judgments paid by public
and private entities, which will provide relief for
local governments and lower state taxpayer costs.
The market-based interest would be the weekly
average one-year constant maturity treasury yield,
which is the same rate utilized by the Federal court
system. Currently, the interest rate on judgments is
established at a xed rate of as much as 9 percent
annually. A prevailing market rate will help ensure that
neither side in a lawsuit will be disadvantaged by an
interest rate that is above or below what otherwise
could be earned while cases are being adjudicated.
Eliminate Subsidy for the Medicare Part B Income-
Related Monthly Adjustment Amount
To limit costs to the Medicare program, the Federal
government requires higher-income retirees to pay a
greater share of Medicare Part B premium expenses.
These additional expenses are known as the Income-
Related Monthly Adjustment Amount (IRMAA). In
2024, these IRMAA expenses are imposed on
retirees with an annual income of $103,000 or higher
($206,000 or higher for joint lers) and range from
$70 to $419 per month. Currently, the State fully
reimburses retirees for the value of Part B IRMAA
expenses.
The Executive Budget proposes the State mirror the
federal government’s policy decision to have higher-
income retirees pay a higher proportion of their health
insurance costs by ceasing IRMAA reimbursement.
Eliminating this reimbursement will save the State
$23.5 million annually ($5.7 million in FY 2025 due to
the lag in reimbursement).
NYSHIP Interest and Intercept
Approximately 900 local governments, school
districts, and other public employers participate in
NYSHIP and are billed monthly premiums by the
Department of Civil Service. Unlike other amounts
owed to the State, interest does not accrue on unpaid
premiums by participating NYSHIP employers. This
creates a moral hazard in which there are no nancial
consequences for employers that do not make timely
payments. When this occurs, these costs must be
absorbed by the State, NYSHIP enrollees, and other
participating employers.
The Executive Budget proposes to allow the
Department of Civil Service to assess interest on late
premiums. It would further allow the Budget Director
to intercept State payments to participating NYSHIP
employers with outstanding premium amounts.
Enactment of this legislation would lower State costs
by $20 million in FY 2025.
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TECHNOLOGY
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FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The Executive Budget will continue to fund New York
State’s investment in technology, through initiatives
designed to improve online services available to
residents, as well as secure state and local data.
The State’s primary technology service provider,
the Oce of Information Technology Services
(ITS), provides statewide strategic direction, policy,
and centralized products and services related
to information technology (IT). ITS operates the
statewide data center to support mission-critical
applications for 53 agencies – including over
16 million resident accounts, 130,000 employee
accounts, 100,000 telecommunications devices,
100,000 workstations/laptops, and 33 petabytes of
data storage.
The Executive Budget includes a $130.7 million
ITS Capital Innovation Fund appropriation to fund
enterprise technology projects and infrastructure
upgrades, designed to increase eciencies, improve
automation, and expand the number of online
services and transactions available to residents.
CYBERSECURITY
Several State agencies have a specic role in
cybersecurity oversight, including ITS, Division
of Homeland Security and Emergency Services
(DHSES), New York State Police (NYSP) and several
others. Nationwide, the volume and severity of cyber
threats and attacks on State and Local governments
has continued to increase despite expanding
awareness and mitigation eorts. The Executive
Budget will include $32.9 million in increased funding
appropriations to address the growth of the Cyber
Risk Remediation Program, New York Security Oce
(NYSOC) and Shared Services program.
TECHNOLOGY AND DIGITAL SERVICES
The State will continue to invest in opportunities to
increase the availability of ways for New Yorkers
to interact with agencies and perform transactions
online – adding to convenience and safety for the
public and making government more ecient and
transparent.
The State will focus on improving resident experience
through:
• Increased eciencies to facilitate faster
processing times, limit in-person interactions, and
reduce the eort required to ll out and submit
paper forms.
• Expansion of New York State's capacity to
improve and expand digital services by growing
the team of user experience researchers and
designers within the Oce of Information
Technology Services and the Oce of General
Services Digital Team.
123
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
TRANSPORTATION
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
The Executive Budget will continue to make historic
investments in the State’s transportation system, to
improve our transit systems, increase mobility, and
grow our economy. These investments are improving
roads, bridges, airports, rail facilities, transit systems,
and ports, as well as enhancing and expanding the
Metropolitan Transportation Authority (MTA) network.
The State’s transportation system is operated,
maintained, and administered by a network of State
and local agencies and public authorities. The
Department of Transportation (DOT) is responsible
for construction, reconstruction, maintenance, and
removal of snow and ice for approximately 43,700
State highway miles and 7,700 State highway bridges.
DOT provides funding for rail, airport, bicycle,
pedestrian, and canal programs as well as local
government highway and bridge construction.
DOT also provides coordination and funding for more
than 130 public transportation operators including the
MTA and four major Upstate regional transportation
authorities, among other local transit systems. These
systems provide bus, subway, and commuter/light rail
services, as well as paratransit services to meet the
needs of those with disabilities.
In 2023, the MTA provided transit and commuter
services in the New York City region to over 1.7 billion
passengers who rode subways, buses, Metro North
Railroad (MNR) and Long Island Rail Road (LIRR). They
also facilitated over 335 million bridge and tunnel
crossings.
The New York State Thruway Authority operates
the 570-mile highway system that extends across
the State from Bualo to the New York City line
and includes 817 bridges, 134 interchanges, and 27
service areas. In 2023, motorists took over 376 million
trips on the Thruway.
The State’s transportation programs also include
the Department of Motor Vehicles (DMV), which
operates 28 district and branch oces, and provides
services via county clerk oces acting as DMV agents
at 100 locations throughout the State. DMV issues
licenses, nondriver identication cards, and vehicle
registrations; conducts road tests, monitors driver
training, and performs various enforcement activities.
In a typical year, DMV conducts more than 35 million
customer transactions and collects over $2 billion in
revenue for the State and localities. New Yorkers rely
on credentialing and identication documents issued
by DMV to, among other things, conduct nancial
transactions, obtain employment, and board aircraft.
INVESTING IN SAFE, RELIABLE
TRANSPORTATION SYSTEMS
Addressing the MTA’s Financial Crisis
The pandemic caused severe declines in MTA
ridership and trac in 2020, and while rising steadily,
ridership remains below pre-pandemic levels. Despite
the challenges brought about by the coronavirus, the
MTA has continued to provide reliable service while
ensuring a safe public transportation system for all
riders and fullling its essential role in supporting the
region’s recovery.
To oset operating losses to MTA’s Financial Plan
from the estimated fare, toll, and dedicated revenue
loss attributable to COVID-19, the MTA received
signicant Federal operating aid from the CARES Act
($4 billion), the CRRSA Act ($4.1 billion) and the ARP
($7 billion). Despite this additional federal funding, the
MTA's Financial Plan showed a long-term structural
imbalance.
To solve the MTA’s scal crisis and avoid drastic cuts
to service, the FY 2024 Enacted Budget included the
following extraordinary package of additional funding,
while ensuring continued progress in rider safety:
• Over $400 million in MTA operating eciencies
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 each year.
• $300 million in one-time State aid to address the
extraordinary impact of the pandemic on MTA
operating revenues.
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TRANSPORTATION
• $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 ve
fare-free bus routes in New York City and expand
the Automated Bus Lane Enforcement program to
increase bus speeds and decrease collisions.
MTA’s Capital Program
The MTA remains committed to its Capital Program.
The MTA’s $52.1 billion Capital Program, executed
from 2020-2024, represents the largest investment in
MTA infrastructure in state history, almost 70 percent
larger than the previous program. The program will
revitalize the subway system and prioritize improving
signal technology, increasing accessibility, ensuring
investment in the Metro North (MNR) and Long Island
Rail Roads (LIRR), upgrades to bus service, and
advancing quality of life for those served.
The 2020-24 Capital Program will advance several
major initiatives including:
Central Business District Tolling Program. The
Central Business District (CBD) congestion pricing
plan is the rst of its kind in the nation. It will combat
gridlock and deliver $15 billion in nancing to support
the Capital Plan.
Accessibility. This initiative will make an additional
70 subway stations ADA-accessible, making over 60
percent of passenger stations accessible.
Second Avenue Subway Phase 2. The project will
provide three new fully accessible stations, extending
service from 96th street to 125th street, and a
providing a connection with Metro-North.
Penn Station Access. The project will carry the New
Haven line and East Bronx residents directly into Penn
Station, and create four new, ADA-accessible Metro-
North commuter railroad stations at Co-op City, Morris
Park, Parkchester/Van Nest, and Hunts Point.
East Side Access. The project will provide Long Island
Rail Road riders with 40 miles of new tracks and a new
terminal, called Grand Central Madison, which opened
to the public in January 2023. This new service
from Long Island to Grand Central Madison saves
commuters up to 40 minutes of travel time per day.
LIRR Third Track. The project, which was completed
in 2022, added 10 miles of mainline between Floral
Park and Hicksville, improved capacity, and shortened
service disruptions for 41 percent of LIRR ridership.
The FY 2025 Executive Budget includes funding to
advance transformative projects to further expand the
MTA’s transit system, including:
The Interborough Express. The Executive Budget
includes $45 million in new funding to advance
design and engineering for this project, which will
connect neighborhoods along a 14-mile existing
freight right-of-way from Bay Ridge, Brooklyn,
to Jackson Heights, Queens. The Interborough
Express planning and environmental linkages study
recommended light rail as the preferred option for
providing fast, frequent service, connecting the
Interborough with up to 17 dierent subway lines and
the Long Island Railroad.
Second Avenue Subway–Expanding West.
With Phase 2 underway, the next major potential
expansion of this project is extending the Q line west
along 125th Street, with three new stops at Lenox
Avenue, St. Nicholas Avenue, and Broadway. The
Executive Budget includes $16 million in funding to
advance a feasibility study, environmental review, and
preliminary engineering for this project.
NEW YORK STATE ROADS AND
BRIDGES
Statewide, New York’s economy relies on a resilient
and ecient transportation infrastructure network of
roads and bridges to continue attracting investment
and creating jobs. The renewal and modernization
of transportation infrastructure is fundamental
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
to rejuvenating and enhancing the economic
competitiveness of the State’s communities. During
FY 2023, the DOT replaced or rehabilitated more
than 70 State bridges and completed over 5,000
corrective and preventive bridge treatments to slow
deterioration. Additionally, approximately 2,000
lane miles of State highway were resurfaced or
reconstructed.
Building on unprecedented DOT investments, the
Executive Budget reects the third year of a record
$32.9 billion, ve-year DOT Capital Plan that ensures
stronger State and local roads and bridges for years
to come. This record level of investment provides
DOT with resources necessary to continue to renew,
modernize, and drive economic development in local
communities.
• The ve-year Capital Plan is aligned with Federal
funding commitments made in the Infrastructure
Investment and Jobs Act (IIJA). New York will
receive an estimated $13.5 billion in highway
and bridge formula aid over ve years from the
IIJA (an increase of $4.6 billion compared to the
ve-year Fixing America’s Surface Transportation
(FAST) Act). The total includes a projected $1.9
billion of formula funding for bridges.
• Major projects funded in this plan include phases
of the Hunts Point Interstate Access Improvement
and the replacement of I-81 in Syracuse. The plan
also advances priorities across the State including
modernizing the Livingston Avenue Bridge in
Albany, reconnecting neighborhoods across the
Kensington Expressway in Bualo, converting
Route 17 to I-86 in Orange and Sullivan Counties,
and assessing ways to improve road capacity at
the Oakdale Merge in Suolk County.
• The DOT Capital Plan includes a $1 billion
program, Pave Our Potholes (POP), designed
to improve state and local road conditions and
prevent deterioration. The statewide “Bridge NY”
program has also been increased by $1 billion
over ve years, which will serve to rehabilitate
or replace structures that are susceptible to
recurring ooding or foundation scour.
The Thruway system is now a fully cashless system,
which provides customers with a seamless travel
experience. The Thruway Authority operates and
maintains the system and in 2023 invested $359
million in capital projects including pavement repairs,
and bridge improvements and replacements. The
Thruway is also continuing its multi-year initiative
to redevelop all 27 service areas through a public
private partnership. There are currently 13 newly
reconstructed service areas open across the system,
with work continuing at the remaining locations.
PROPOSED FY 2025 TRANSPORTATION
BUDGET ACTIONS
Continuing Road, Bridge, and Safety Improvement
DOT Capital Plan. The Executive Budget provides
almost $7.6 billion for the third year of a record $32.9
billion, ve-year DOT Capital Plan that will facilitate
the improvement of highways, bridges, rail, aviation
infrastructure, non-MTA transit, and DOT facilities.
Compared to the last ve-year DOT Capital Plan, this
is an increase of $9.5 billion, or 41 percent.
Local Highways and Bridges. The Executive Budget
continues the State’s record commitments to funding
local highway and bridge projects. Funding for the
Consolidated Highway Improvement Program (CHIPS)
and the Marchiselli program is maintained at the
planned level of $577.8 million. The budget provides
the third year of an annual $100 million for the local
Pave Our Potholes program, $150 million in highway
aid through the PAVE NY program, and $200 million
to fund local projects from the BRIDGE NY program.
The Extreme Winter Recovery and State Touring
Route programs are funded at $100 million each and
are further improving conditions on State and local
roads and bridges.
Funding Sources. DOT’s capital program is supported
by Federal aid, State capital projects funds, nancial
settlement funds, dedicated taxes and fees deposited
in the Dedicated Highway and Bridge Trust Fund, and
the State’s General Fund.
Enacting Stretch Limousine Passenger Safety Task
Force Recommendations. The Executive Budget
includes legislation that will amend sections of the
129
TRANSPORTATION
Transportation Law and Vehicle and Trac Law as
part of a comprehensive limousine safety package
based upon recommendations from the Stretch
Limousine Passenger Safety Task Force.
Investing in Transit
New York State provides transit operating assistance
through the Statewide Mass Transportation Operating
Assistance (STOA) program. Transit systems provide
an estimated 2.7 billion rides annually. State transit
aid typically accounts for approximately 40 percent of
transit systems’ operating resources.
The Executive Budget provides $8.8 billion in mass
transit operating support:
MTA. The MTA will receive $7.9 billion in State
operating aid in FY 2025, including resources
collected by the State and sent directly to the MTA
without appropriation. Traditional on-budget MTA
assistance will increase 3.4 percent, from $4.1 billion
to $4.2 billion.
Upstate. Upstate transit systems are slated to receive
$323 million, representing an overall 5.4 percent
regional increase.
Downstate. Downstate systems will receive $551
million, representing an overall 5.4 percent regional
increase.
The Executive Budget also invests in transit capital
needs:
MTA Capital. The $52.1 billion 2020-24 MTA Capital
Program remains the largest and most expansive plan
in its history. In addition to the $25 billion secured in
the FY 2020 Budget, the Executive Budget continues
the State’s $3.1 billion contribution to the Capital
Program.
Non-MTA Capital. Non-MTA transit capital will receive
$140 million, which once again includes $20 million
for bus electrication.
Additional MTA-related budget actions include the
following:
Fare Enforcement. The Executive Budget proposes
to implement several recommendations made by
the MTA’s Blue-Ribbon Panel Report on Fare and
Toll Evasion in May 2023, including increasing the
maximum nes, authorizing a written warning in lieu
of a ne for a rst oense, and forgiving fare evasion
penalties for violators who qualify and enroll in NYC’s
Fair Fares program.
Toll Enforcement. The Executive Budget proposes
to improve toll collections throughout the State
by increasing nes and penalties for toll evasion,
prohibiting the selling or distribution of license plate
covers that obscure plates, and restricting DMV
registration transactions for vehicles with suspended
registrations for failure to pay tolls or failing to remove
plate-obscuring materials.
Toll Fraud Deterrence. The Executive Budget also
includes legislation to reduce fraudulent attempts to
claim credits, discounts, or exemptions from MTA tolls
by creating new misdemeanor and felony oenses.
Transforming DMV Customer Service
Accounting for the steady increase in the volume
and complexity, DMV has utilized electronic and
internet-based services to increase the eciency
of transaction processing. These services also
provide customers with a faster and more convenient
alternative to visiting DMV oces. Currently, over 8
million transactions per year are processed through
the DMV website, and this number is expected to
continue to rise as customers take advantage of
additional online transactions.
Building on the success of previous customer service
initiatives, DMV continues to use an enhanced call
center, expansion of online transaction capabilities,
and the implementation of a reservation system to
reduce customer foot trac in district and online
oces. DMV’s website is continuously improving to
provide a more responsive design for its customers.
Additionally, DMV is seeking to upgrade internal
systems to improve transactions and customer
experience.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
Additional DMV-related Budget actions include:
Online Insurance Verication. The Executive Budget
includes legislation for DMV to replace its current
insurance verication system to allow for quicker and
easier verifcation of driver insurance coverage by
sta and law enforcement ocers.
Allow NYC to Lower Its Speed Limit. The Executive
Budget also includes legislation to give NYC the
authority to adjust its speed limits to account for the
dangers of fast driving in urban environments. This
will allow NYC to designate speed limits of no less
than 20 MPH, and as low as 10 MPH in school zones
and areas where trac calming measures exist.
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TRANSPORTATION
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
IV
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
SUPPLEMENTAL
REFERENCE
INFORMATION
SECTION IV
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
135
THE EXECUTIVE
BUDGET CITIZEN’s
GUIDE
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
SUBMISSION OF THE EXECUTIVE
BUDGET
New York State’s budget process uses an Executive
Budget model, in which the Governor is responsible
for developing and preparing a comprehensive and
balanced budget proposal. The Governor is required
by the State Constitution to seek and coordinate
requests from agencies of State government, develop
a “complete” plan of proposed expenditures and
the revenues available to support them (a “balanced
budget”), and submit a budget to the Legislature
along with the appropriation bills and other legislation
required to carry out budgetary recommendations.
What is a state agency? Any department, agency, or
other instrumentality of the government of any State
or of any political subdivision of any State.
What is a Budget bill? Dened by Section 3 of
Article VII (7) of the NYS Constitution: At the time of
submitting the budget to the legislature the governor
shall submit a bill or bills containing all the proposed
appropriations and reappropriations included in
the budget and the proposed legislation, if any,
recommended therein.
What is an appropriation? The authorization, through
law, to allocate funds.
From Section 7 of Article VII of the NYS Constitution:
No money shall ever be paid out of the state treasury
or any of its funds, or any of the funds under its
management, except in pursuance of an appropriation
by law…
When is the Executive Budget due? The Executive
Budget must be submitted on or before the second
Tuesday following the rst day of the annual meeting
of the legislature or by February 1 in an election year.
EXECUTIVE AMENDMENTS
Following the submission of the Executive Budget,
the Constitution authorizes the Governor to submit
technical corrections and revisions based on the
latest information within 30 days. However, to help
achieve timely budgets, the 2007 Budget Reform
Act requires the Executive, to the extent practicable,
submit any necessary amendments within 21 days.
Any amendments are made available on the Budget
Division’s website when submitted to the Legislature.
LEGISLATIVE REVIEW AND
RECOMMENDATIONS
The legislative review process includes public
hearings on the Governor’s Budget. These hearings
are scheduled by the Senate Finance and Assembly
Ways and Means Committees, which are responsible
for coordinating each house’s action on the budget.
The Budget Reform Act mandates the use of
conference committees as part of the legislative
budget process. These committees, which have
been used in various forms in the past, must now be
called early in the process to facilitate agreement on
a budget between the two houses. The two houses
ultimately develop joint recommendations, amend the
Governor’s proposed bills to reect their decisions,
and pass the amended bills. These nal bills are
available directly from the legislative document rooms
and online.
BUDGET ENACTMENT
Except for appropriations for the Legislature and
the Judiciary, appropriations proposed by the
Governor become law immediately when passed by
the Legislature. However, all items that have been
added by the Legislature, and all appropriations for
the Legislature and the Judiciary, must be sent to
the Governor for approval or veto. The Constitution
grants the Governor “line item veto” power, permitting
the Governor to veto such items selectively, while
approving the remainder of the bill.
Chapter numbers are assigned to bills that become
law. For any bill or item of appropriation that is vetoed,
the Governor provides a “veto message” to the
Legislature stating the reasons for the veto. Vetoes
may be overridden by a two-thirds vote of each house
of the Legislature, in which case the vetoed item or
bill becomes law despite the Governor’s objections.
When is the budget due? The budget must be
enacted by the start of the April 1, the start of the
scal year.
137
THE EXECUTIVE BUDGET CITIZEN’S GUIDE
POST ENACTMENT
After enactment of the budget, the Legislature is
required to summarize its changes to the Executive
Budget. This summary is presented in the “Green
Book,” which is available from the Senate and
Assembly document rooms. The Governor is required
to revise the Financial Plan to reect the Enacted
Budget. Like the original Executive Budget and any
amendments, this revised plan and subsequent
updates are also made available on the Budget
Division’s website.
LEARN MORE
Readers are encouraged to visit the New York State
Budget Division online, budget.ny.gov, and the Open
Budget website, openbudget.ny.gov, to access the
latest information and documents related to the
Executive Budget proposal and the Enacted Budget.
All materials are made available on the website within
24 hours.
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
GLOSSARY OF
ACRONYMS
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
A
• AAA - Area Agencies on Aging or Armative
Action Administrator
• ACA - Aordable Care Act
• AFP - American Families Plan
• AG - Attorney General
• AGM - Department of Agriculture and Markets
• AIG - American International Group, Inc.
• AIM - Aid and Incentives for Municipalities
• AJP - American Jobs Plan
• ALICO - American Life Insurance Company
• AMI - Area Median Income
• AML - Anti-Money Laundering
• AMTAP - Additional Mass Transportation
Assistance Program
• APCD - All-Payer Claims Database
• APTC - Advance Premium Tax Credit
• ARP - American Rescue Plan Act of 2021
• ATB – Across the Board
• ATI - alternatives to incarceration
• AXA - AXA Equitable Life Insurance Company
• AY - Academic Year (July 1 through June 30) –
SUNY/CUNY
B
• BAFO – Best and Final Oers
• BANs - Bond Anticipation Notes
• BBA 19 - Bipartisan Budget Act of 2019
• BEA - Bureau of Economic Analysis
• BIL - Bipartisan Infrastructure Law (see also -
Infrastructure Investment and Jobs Act (IIJA))
• BLS - Bureau of Labor Statistics
• BNPP - BNP Paribas, S.A., New York Branch
• BOCES - Boards of Cooperative Educational
Services
• BofA - Bank of America
• BofAML - Bank of America Corporation and Merrill
Lynch, Pierce, Fenner and Smith Incorporated
• BSA - Bank Security Act
• BTMU - Bank of Tokyo-Mitsubishi UFJ, Ltd.
C
• CAC - Crime Analysis Center
• CANS - Child and Adolescent Needs & Strengths
• CARES Act - Coronavirus Aid, Relief, and
Economic Security Act
• CBD - Central Business District (CBD) Tolling
Program
• CBPP - Center for Budget and Policy Priorities
• CCB - Cannabis Control Board
• CDD - Council on Developmental Disabilities
• CES - Current Employment Statistics
• CDPAP – Consumer Directed Personal Assistance
Program
• CFT - Corporate Franchise Tax
• CFY - City Fiscal Year
• CGT - Cell and Gene Therapy
• CHIPS - Creating Helpful Incentives to Produce
Semiconductors
• CHP - Child Health Plus
• CHUBB - Chubb Group Holdings Inc. and Illinois
Union Insurance Company
• CIGNA - Cigna Health and Life Insurance
Company
• CISO - Chief Information Security Oce
• CLCPA - Climate Leadership and Community
Protection Act of 2019
• CMS - Centers for Medicare & Medicaid Services
• COLA - Cost-of-Living Adjustment
• CON - Certicate of Need
• CoP - Community of Practice
• COVID-19 - Coronavirus Disease 2019
• CPI - Consumer Price Index
• CPRSA - Coronavirus Preparedness and
Response Supplemental Appropriations Act
• CRF - Coronavirus Relief Fund
• CRRSA - Coronavirus Response and Relief
Supplemental Appropriations Act
• CSEA - Civil Service Employees Association
• CSU - Community Stabilization Units
• CSX - CSX Transportation, Inc.
• CUNY - City University of New York
• CUT - Corporation and Utilities Tax
• CW/CA - Clean Water/Clean Air
• CY - County Year
D
• DANY - New York County District Attorney
• DASNY - Dormitory Authority of the State of New
York
• DCS – Department of Civil Service
• DEC - Department of Environmental Conservation
• DelAm - Delaware American Life Insurance
Company
141
GLOSSARY OF ACRONYMS
• DFS - Department of Financial Services
• DHBTF - Dedicated Highway and Bridge Trust
Fund
• DHCR - Division of Housing and Community
Renewal
• DHSES - Division of Homeland Security &
Emergency Services
• DMNA - Division of Military and Naval Aairs
• DMV - Department of Motor Vehicles
• DOB - Division of the Budget
• DOCCS - Department of Corrections and
Community Supervision
• DOH - Department of Health
• DOS - Department of State
• DOT - Department of Transportation
• DPS - Department of Public Service
• DRI - Downtown Revitalization Initiative
• DS - Debt Service
• DSH - Disproportionate Share Hospital
• DSP - Division of State Police
• DTF - Department of Taxation and Finance
E
• EANS - Emergency Assistance for Nonpublic
Schools
• ECEP - Employer Compensation Expense
Program
• ECHS – Early College High School
• EDF - Economic Development Fund
• eFMAP - Enhanced Federal Medical Assistance
Percentage
• EI - Early Intervention
• EMS - Emergency Medical Services
• EP - Essential Plan
• EPIC - Elderly Pharmaceutical Insurance
Coverage/Extended Prosperity and Innovation
Campuses
• ERS - Employees’ Retirement System
• ESEA - Elementary and Secondary Education Act
• ESD/ESDC - Empire State Development
Corporation
• ESG - Environmental, Social and Governance
• ESInet -
• ESPRI - Empire State Poverty Reduction Initiative
• ESSER - Elementary and Secondary School
Emergency Relief Fund
• ESSHI - Empire State Supportive Housing
Initiative
.
F
• FAST - Fixing America’s Surface Transportation
• FEMA - Federal Emergency Management Agency
• FFCRA - Families First Coronavirus Response Act
• FFY - Federal Fiscal Year (October 1 Through
September 30)
• FHWA - Federal Highway Administration
• FMAP - Federal Medical Assistance Percentage
• FMR - Fair Market Rent
• FOMC - Federal Open Market Committee’s
• FPG - Fortis Property Group
• FPL - Federal Poverty Level
• FRB - Financial Restructuring Board
• FTE - Full-Time Equivalent
• FY - Fiscal Year
G
• GAAP - Generally Accepted Accounting Principles
• GASB – Governmental Accounting Standards
Board
• GASBS – Governmental Accounting Standards
Board Statement
• GDP - Gross Domestic Product
• GEER - Governor’s Emergency Education Relief
• GFOA - Government Finance Ocers Association
• GIVE - Gun Involved Violence Elimination
• GLIP - Group Life Insurance Plan
• GO-SEMI - Governor’s Oce of Semiconductor
Expansion, Management, and Integration
• GPHW - General Public Health Work
• GSA - US General Services Administration
• GSCs - General State Charges
• GSEU - Graduate Student Employees Union
H
• HALT - Humane Alternatives to Long Term Solitary
Connement Act
• HBITS - Hourly Based Information Technology
Services
• HCBS - Home and Community-Based Services
• HCR - Homes and Community Renewal
• HCRA - Health Care Reform Act
• HCTF - Health Care Transformation Fund
• HEAP - Home Energy Assistance Program
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
• HERDS - Hospital Electronic Response Data
System
• HESC - Higher Education Services Corporation
• HFNY - Healthy Families New York
• HIDTA - High Intensity Drug Tracking Area
• HMO - Health Maintenance Organization
• HRI - Health Research, Inc.
• HUT - Highway Use Tax
I
• ICP - Indigent Care Payments/Indigent Care Pool
• ICR - Institutional Cost Reports
• IDEA - Individuals with Disabilities Education Act
• IIJA - Infrastructure Investment and Jobs Act
• IMF - International Monetary Fund
• IPCC - Intergovernmental Panel on Climate
Change of the United Nations
• IRS - Internal Revenue Service
• IT - Information Technology
• ITS - Information Technology Services
J
• J&J - Johnson & Johnson
• JFK - John F. Kennedy International Airport
L
• LFY - Local Fiscal Year
• LGAC - Local Government Assistance Corporation
• LICH - Long Island College Hospital
• LIRR – Long Island Railroad
• LLC - Limited Liability Company
• LTCOP - Long-Term Care Ombudsman Program
• LWA - Lost Wages Assistance
M
• MAGI - Modied Adjusted Gross Income
• MAT - Medication-Assisted Treatment
• MC - Management Condential
• MLF - Municipal Liquidity Facility
• MLR - Medical Loss Ratio
• MLTC - Managed Care/Managed Long Term Care
• MOE - Maintenance of Eort
• MRT - Medicaid Redesign Team
• MRT II - Medicaid Redesign Team II
• MSA - Master Settlement Agreement
• MTA - Metropolitan Transportation Authority
N
• NMS - New Medical Site
• NPS - Non-Personal Service
• NYC - New York City
• NYPA - New York Power Authority
• NYS - New York State
• NYSCA - New York State Council on the Arts
• NYSCOPBA - New York State Correctional
Ocers and Police Benevolent Association
• NYSERDA - New York State Energy Research and
Development Authority
• NYSHIP - New York State Health Insurance
Program
• NYSLRS - New York State and Local Retirement
System
• NYSOH - New York State of Health
• NYSPIA - New York State Police Investigators
Association
• NYSTA - New York State Thruway Authority
• NYSTPBA - Police Benevolent Association of the
New York State Troopers
• NYU - New York University
O
• OAG - Oce of the Attorney General
• OASAS - Oce of Addiction Services and
Supports
• OCFS - Oce of Children and Family Services
• OCM – Oce of Cannabis Management
• OFAC - Oce of Foreign Assets Control
• OHEHR - Oce of Health Equity and Human
Rights
• OMB - United States Oce of Management and
Budget
• OMH - Oce of Mental Health
• OMIG – Oce of the Medicaid Inspector General
• OPEB - Other Post-Employment Benets
• OPRHP - Oce of Parks, Recreation and Historic
Preservation
• OPWDD - Oce for People with Developmental
Disabilities
• ORDA - Olympic Regional Development Authority
• ORP - Optional Retirement Program
• OSC - Oce of the State Comptroller
• OTDA - Oce of Temporary and Disability
Assistance
143
GLOSSARY OF ACRONYMS
P
• PAYGO - Pay-As-You-Go
• PBA - Police Benevolent Association
• PBANYS - Police Benevolent Association of New
York State
• PBT - Petroleum Business Tax
• PCCP - Procurement and Contracting Community
of Practice
• PCF – Public Campaign Finance
• PEF - Public Employees Federation
• PFRS - Police and Fire Retirement System
• PHE - Public Health Emergency
• PIA - Police Investigators Association
• PIGI - Personal Income Growth Index
• PILOT - Payments in Lieu of Taxes
• PIT - Personal Income Tax
• PMT - Payroll Mobility Tax
• PPE - Personal Protective Equipment
• PPO - Preferred Provider Organization
• PPP - Paycheck Protection Program
• PS - Personal Service
• PSC - Public Service Commission
• P-TECH - Pathways in Technology Early College
High School
• PTET - Pass-Through Entity Tax
• PwC - PricewaterhouseCoopers LLP
Q
• QCEW - Quarterly Census of Employment and
Wages
R
• RBS - RBS Financial Products Inc. (formally
Greenwich Capital Financial Products, Inc.)
• RBTF - Revenue Bond Tax Fund
• REDC - Regional Economic Development Council
• RFP - Request for Proposals
• RGGI - Regional Greenhouse Gas Initiative
• RHY - Runaway Homeless Youth
• RSSL - Retirement and Social Security Law
S
• SALT - State and Local Tax
• SAVE - Supervision Against Violent Engagement
• SBIR - Small Business Innovation Research
• SBTT - Small Business Technology Transfer
• SCB - Standard Chartered Bank
• SCB NY - Standard Chartered Bank, New York
Branch
• SED - State Education Department
• SFY - State Fiscal Year (April 1 Through March 31)
• SHIN-NY - Statewide Health Information Network
for New York
• SLRF - State and Local Fiscal Recovery Fund
• SNAP - Supplemental Nutrition Assistance
Program
• SOFA - State Oce for the Aging
• SSI - Supplemental Security Income
• STAR - School Tax Relief
• STEM - Science, Technology, Engineering, and
Math
• STIP - Short-Term Investment Pool
• SUNY - State University of New York
• SY - School Year (July 1 through June 30)
T
• TANF - Temporary Assistance for Needy Families
• TAP - Tuition Assistance Program
• TCJA - Tax Cuts and Jobs Act of 2017
• TRS - Teachers’ Retirement System
• TY - Tax Year (January 1 Through December 31)
U
• UBS - UBS Securities LLC and UBS Real Estate
Securities Inc.
• UCS - Unied Court System
• UI - Unemployment Insurance
• URI - Upstate Revitalization Initiative
• U.S. - United States
• UUP - United University Professions
V
• VDC - Voluntary Dened Contribution
• VLT - Video Lottery Terminal
FY 2025 EXECUTIVE BUDGET BRIEFING BOOK
