FY25 Executive Budget

January 16, 2024


FROM: Cozen O’Connor Public Strategies




January 16, 2024
RE: FY25 NYS Executive Budget


  • 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:


  • $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.


  • $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.


  • 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


  • $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


Explore Articles and News

See All News