FY25 Executive Budget

January 16, 2024

MEMORANDUM

FROM: Cozen O’Connor Public Strategies

 
DATE:

 

 January 16, 2024
RE: FY25 NYS Executive Budget

Highlights:

  • Hochul proposed a balanced $233B FY25 Executive Budget, focused on school aid, Medicaid, and migrant spending.
  • The FY25 Executive Budget closes a $4.3B deficit faced by the state.
  • Hochul’s budget authorizes a new residential construction tax incentive in New York City but did not provide any details on this tax incentive.

The Governor proposed the following in her FY25 Executive Budget:

        Migrants:

  • $2.4B to assist NYC serve newly-arriving migrants for shelter, social services, and resettlement
    • $1B specifically to reimburse the city for costs up to this point
    • $500M to NYC from a one-time withdrawal from the state reserves for emergencies
    • NYS will take over funding for roughly 3,000 beds, in addition to the state’s previous pledge to fund a 2,000-bed shelter in Brooklyn.

      Medicaid:

  • $3B increase in state Medicaid spending, for a total of $30.9B
    • Over $1B in savings proposals
  • Control over rising Medicaid costs, driven largely by increased enrollment and managed long-term care programs.
  • Identified Medicaid reimbursement rates and service reductions as potential savings areas.

      Education:

  • Increase by $825M, bringing total education funding to roughly $35B
    • $10M earmarked for new literacy method training for teachers
    • $507M increase in Foundation Aid funding
  • Change in school aid funding to even out aid disbursement between districts of different means
  • Four-year extension of mayoral control of schools in NYC

      Mental Health:

  • $15M to develop supportive housing for people with intellectual disabilities
  • $12.5M for teams to support New Yorkers with serious mental illness who are homeless or justice-involved

        Miscellaneous:

  • $40.2M to combat retail theft
  • $36M for district attorneys to tackle domestic violence
  • $35M for hate crime mitigation
  • $2.5M for operating costs in the Empire AI consortium for artificial intelligence research

Authors

About Cozen O’Connor Public Strategies

Cozen O’Connor Public Strategies, an affiliate of the international law firm Cozen O’Connor, is a bipartisan government relations practice representing clients before the federal government and in cities and states throughout the country. With offices in Washington D.C., Richmond, Albany, New York City, Philadelphia, Harrisburg, Chicago, and Santa Monica, the firm’s public strategies professionals offer a full complement of government affairs services, including legislative and executive branch advocacy, policy analysis, assistance with government procurement and funding programs, and crisis management. Its client base spans multiple industries, including healthcare, transportation, hospitality, education, construction, energy, real estate, entertainment, financial services, and insurance.

About Cozen O’Connor

Established in 1970, Cozen O’Connor has over 775 attorneys who help clients manage risk and make better business decisions. The firm counsels clients on their most sophisticated legal matters in all areas of the law, including litigation, corporate, and regulatory law. Representing a broad array of leading global corporations and middle-market companies, Cozen O’Connor serves its clients’ needs through 31 offices across two continents.

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