New York state budget deal reached: Everything you need to know (2024)

ALBANY - State leaders announced Sunday they reached a budget deal just in time for the fiscal year that starts Monday.

Lawmakers were at the state Capitol on Sunday and were working through the night passing budget bills in hopes of having an on-time budget.

The $175.5 billion plan, Gov. Andrew Cuomo and legislative leaders announced, includes an array of deals, but leaves a few major decisions undone — such as legalizing marijuana and creating a board to decide how to publicly finance political campaigns.

The sides hailed the final package.

Cuomo said the budget needed to be"fiscally responsible and protect New York from the federal government's ongoing economic assault on our state.I am proud to announce that together, we got it done."

Here are the highlights:

The numbers behind the numbers

The budget keeps spending to 2 percent and continues a middle-class tax cut.

It would increaseschool aid by 3.8 percent to $27.9 billion, the most of any state in the nation.

And spending on Medicaid, which serves about 6 million New Yorkers, and all health-care spending would grow 3.6 percent to $19.6 billion.

Another impetus for an on-time budget: Raises for Cuomo and lawmakers are tied to it getting done by the deadline.

More:Legalized marijuana in New York will have to wait

Permanent tax cap

Cuomo vowed to not agree to a budget withoutmaking the tax cap, first approved in 2011, permanent.

He got his wish. The cap will be made permanent: It limits the growth in property taxes to 2 percent or lower each year, depending on the rate of inflation.

More:Property-tax cap in New York expected to be made permanent

Reforming Criminal Justice

This was also a requirement for Cuomo and the Democratic-led Legislature

The package includes ending cash bail in most cases, exceptfor some violent felonies. Assembly Speaker Carl Heastie, D-Bronx, said it would end cash bail for at least 80 percent of all arrests in New York.

The problem, critics said, is that having cash bail made it difficult for those arrested to get out of jail as they await the adjudication of their cases.

Another change: Cases would need to be brought to trial sooner.

Fixes to the Metropolitan Transportation Authority

Long derided for delayed subways and trains, the MTA will face an overhaul in the budget.

The transit system for New York City and its suburbs would need to have a reorganization plan by June, change the way it appoints board members and conduct an independent audit.

More:Police could withhold mugshots, arrest records under New York budget deal

Congestion pricing in Manhattan

To fund the MTA's needs, the budget includes a new congestion tolling plan for midtown and lower Manhattan, south of 60th Street.

To figure out the tolls and which bridges into Manhattan would be exempted from the tolls, the budget includes the establishment of asix-member Traffic Mobility Review Board.

For example, Hudson Valley lawmakers want the Gov. Mario Cuomo Bridge exempted from "double tolling."

The tolling wouldn't start until 2021.

Also to fund the MTA, a "mansion tax" was set to be approved on sales of homes in Manhattan valued at $25 million or above.

Another funding source: An internet sales tax that will fund the MTA and provide revenue to local governments.

More:Hudson Valley poised to get piece of congestion-pricing revenue

A board for public financing of campaigns

Cuomo and lawmakers couldn't agree on a campaign pledge to create a system of public financing for those running for office.

The goal is take big money out of politics, but critics said taxpayers' money shouldn't go to fund campaigns.

Without a deal, the sides agreed to establisha public-financing commission that wouldhave the power to develop and implement the system.

The goal is to budget $100 million annually in public funds for the program. The commission would have to report back by Dec. 1.

Closing up to three prisons

First, Cuomo proposed closing three prisons this year.

Then the initial budget bills said two would close.

Finally, new budget language again showed up to three prisons.

Cuomo and his aides said Sunday the budget will, in fact, allow for up to three closures.

But it will depend on how they get to the 1,200 beds they want to shutter to save $35 million this fiscal year. So it could mean closing either two or three facilities, which the state has yet to name.

More:New York to close two prisons as part of state budget, but where?

Making the Affordable Care Act state law

Fearing the federal repeal of so-called Obamacare, New York plans to codify its state health exchange into law.

So even if the federal government goes ahead with its repeal threat, New York would still have its New York State of Health, which serves more than 4.7 million residents.

More:Enrollment starts for existing customers on New York’s health exchange

Plastic bags are out

Already agreed to last week, New York wouldbansingle-use plastic bags and allow counties and cities to opt in to a 5-cent fee on paper bags.

The money raised from the fee will go toward reusable bag program and the state's Environmental Protection Fund.

More:NY's plastic bag ban: How will it work? When does it take effect?

Voting reforms added

The budget adds to changes made earlier this year.

They includemandating threehours of paid time off for all New Yorkers to vote on Election Day;enacting online voter registration, expanding upstate voting hours to begin at 6 a.m. instead of noon.

New laws for limos

After the deadly limo crash in Schoharie last October that killed 20, Cuomo vowed to crack down on the industry.

The budget includes measures that would make it a class E felony forknowinglyoperating a limo where such operationcauses the death of another person.

It also adds new civil penalties and insurance requirements. But it doesn't include an outright stretch limo ban that Cuomo initially proposed.

More:After most deadly crash in a decade, limo rules still haphazard as prom season nears

Money for the Census count

Immigrant groups in particular wanted state aid to make sure that all New Yorkers are counted in the upcoming census.

They wanted as much as $40 million. The budget includes$20 million.

More:New York lawmakers face deadline: Pass a timely budget, get a pay raise

More:New York to close two prisons as part of state budget, but where?

More:Cuomo 2022? Governor hints at running for a fourth term

New York state budget deal reached: Everything you need to know (2024)

FAQs

Did the 2024-25 NYS budget pass? ›

Senate Passes 2024-25 Budget Addressing Critical Priorities for New Yorkers & Enacting Key Majority Proposals | NYSenate.gov.

Has the NY state budget passed? ›

Governor Kathy Hochul today announced the historic investments included in the FY 2025 Enacted Budget which was passed by the Legislature this weekend. The $237 billion budget makes record investments in the people of New York without raising income taxes.

What is the NYS budget 2025 update? ›

To help increase New York's housing inventory, the FY 2025 budget provides: $600 million in capital funding to support housing statewide. $150 million for new programs to build rental and homeownership units across the state for residents with an income at or below 130 percent of the Area Median Income.

What is the Rapid Act in the New York State budget? ›

To address the urgent need to achieve the State's clean energy goals, the Budget includes the Renewable Action through Project Interconnection and Deployment (RAPID) Act that will create a one-stop-shop for the environmental review and permitting of electric transmission and improve the interconnection process.

What is the NYS Cola for 2024? ›

The September 2024 COLA is 1.8 percent, for a maximum annual increase of $324, or $27 per month before taxes. The increase you receive each September is added to your existing monthly COLA amount.

What is the cola for the NYS budget 2025? ›

The FY 2025 Executive Budget provides for a 1.5 percent COLA for not-for-profits that provide services on behalf of the multiple health and human services agencies, including SOFA.

What is the New York lawmakers pass the $237 billion budget? ›

New York lawmakers pass $237 billion budget with policies to jump-start housing market. ALBANY, N.Y. (AP) — New York lawmakers passed a $237 billion state budget Saturday that includes plans to spur housing construction and combat unlicensed marijuana stores.

Who controls the New York State budget? ›

New York State's budget process uses an executive budget model, in which the governor is responsible for developing and preparing a comprehensive, balanced budget proposal. This proposal is presented to the Legislature, which modifies and enacts the budget into law.

What is the New York Rapid Act? ›

New York's RAPID Act Intended to Accelerate the Environmental Review and Permitting Process for Siting Both Renewable Energy and Electric Transmission Line Projects.

What is the budget for nursing homes in NY 2024? ›

This year's budget allocates an additional $285 million, encompassing both state and federal shares, for nursing homes, translating to an approximate 4% rate increase. While any increment is welcomed amidst financial strain, this figure falls significantly short of covering the escalating costs of care.

What is the budget for the housing bill in NY? ›

As part of the FY 2023 Budget, the Governor announced a five-year, $25 billion Housing Plan, to create and preserve 100,000 affordable homes statewide.

What is the status of the NYS budget 2024? ›

The Budget is balanced, and deposits to reserves that had been planned for FY 2024 and FY 2025 will be completed by the end of the current year — two years ahead of schedule — for a total of $19.5 billion secured for a rainy day.

Where does the money come from to fund the budget of NY state? ›

Most of the money spent in the budget comes from the taxes that New Yorkers pay to the state government. But a sizable portion is cash that the federal government gives New York to provide services ranging from highways and transit to health insurance for low-income residents.

What is the NYS three part budget? ›

By law, districts must divide their budgets into three categories—administrative component, capital component and program component—and must show how much each component has increased compared to the total budget. New York State law requires this document to be available to all residents.

What is the budget for SUNY 2025? ›

The FY 2025 Executive Budget recommends $13.3 billion in total appropriations for SUNY and projects a workforce of 46,854 full-time equivalent employees.

What is the budget for FY 2025? ›

The President's Fiscal Year (FY) 2025 Budget supports the Department of Health and Human Services' (HHS) mission to promote the health and well-being of all Americans. HHS proposes $130.7 billion in discretionary and $1.7 trillion in mandatory proposed budget authority for FY 2025.

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