Gov. Kathy Hochul’s New York budget proposal worth $227 Billion to help bail out the city’s ailing subway system and address the migrant crisis.
$227 Billion Budget Proposal in New York Will Be Spent on Economic Recovery, Gov. Hochul Says! (The New York Times)
Gov. Kathy Hochul’s Budget Proposal
New York City Gov. Kathy Hochul revealed on Wednesday a $227 billion state budget proposal aimed at tackling some of New York City’s most urgent needs, including $1 billion to address the migrant crisis and a multiyear plan to salvage the finances of the city’s ailing subway system.
Gov. Hochul plans to assist the Metropolitan Transportation Authority to cover its budget gap of nearly $3 billion by 2025 by raising payroll taxes on downstate businesses that benefit from the transit network, generating a more than $800 million Budget proposal. The governor also consider diverting revenues from three planned casinos in the New York City region to support the authority and called on the city to pitch in nearly $500 million, which could add up to $1.3 billion in additional annual funding for the subway system.
Gov. Hochul said after releasing her budget proposal in the State Capitol’s ornate Red Room that “the New York City economy drives the state of New York and the M.T.A. helps drive the New York City economy.” Ms. Hochul’s budget proposal officially started the annual negotiations between the governor and lawmakers over how to spend over $220 billion in state resources for the 2024 fiscal year, which begins April 1.
Worth $8.7 billion Budget Proposal In New York State
Gov. Hochul plans also anticipate lower tax revenues as a result of a potential recession this year. A projected that the state would face a $5.7 billion budget gap in the 2025 fiscal year, and a total gap of $22 billion between 2025 and 2027. That outlook stood in stark contrast to Ms. Hochul’s rosy financial plan from last year, which did not forecast any budget gaps in future years, mostly as a result of a boost in tax revenues and federal pandemic aid.
Moreover, Gov. Hochul described the nuts and bolts of a series of budget proposals aimed at achieving the New York Dream that was broadly abstracted in her State of the State address last month. And she’s benefiting from an $8.7 billion surplus thanks to higher-than-expected tax revenue to fund projects and programs to appease a wide variety of constituencies. Hochul wants record increases in education and Medicaid spending to $34.4 billion and $27.8 billion respectively. Hochul’s plan would set aside more than $1 billion to help New York City pay some costs of providing social services to new asylum seekers.
The negotiations between the host of policy issues are bound to reveal ideological divides and power struggles between the governor, who is looking to establish her position in Albany after succeeding her first full term, and Democrats in control of the State Legislature, who have already successfully challenged her this year.
