After weeks of debate, negotiation, and a missed deadline, top lawmakers in New York have finalized the state budget.
Budget Finally Passed
New York finally passed its state budget. Though it was finalized three weeks after its April 1 deadline, lawmakers agreed on a $237 billion sum to be dispersed across multiple sectors.
Different Sectors Funded
Funding from the budget will go toward areas such as paid prenatal leave, extending to-go alcohol sales for the state’s hospitality sector, and most notably housing, and migrant healthcare and legal services.
All Done Without Raising Taxes
“We got all of this done without raising income taxes by a single cent,” New York Governor Kathy Hochul shared in a social media post discussing the announcement.
Weeks of Back and Forth
Budget negotiations had gone back and forth for weeks between Gov. Hochul and leading New York lawmakers, with a particular focus on the housing market.
Housing a Top Priority
Addressing the ongoing housing shortage across New York State was a major priority for Hochul, who has been widely criticized for her lack of action on the issue in 2023.
Taxes and Measures
The new budget package includes a number of proposals to help boost available housing for residents. This includes tax breaks for apartment developers offering units at below-market prices, and measures to protect renters from unfair evictions and rent hikes.
A “Significant Improvement”
In a public statement, Hochul claimed the new budget plan represents “the most significant improvement in housing policy in three generations.”
$2.4 Billion For New York City Migrant System
The new state budget also put aside $2.4 billion for problems related to the ongoing migrant crisis. In particular, it will be funneled toward shelters, legal services, and health care systems established for the increasing undocumented migrant population.
Migration Issues in the City
Over 100,000 undocumented migrants arrived in New York City alone via the US-Mexico border in 2023, placing enormous strain on pre-existing resettlement services. The $2.4 billion will go toward alleviating that strain.
A Win for City Mayor
With the majority of the funds going toward New York City, it’s a big win for Mayor Eric Adams, despite falling short of his original $4.6 billion request.
Some Aren’t Happy
However, some, like State Senate Republican Leader Rob Ortt, have criticized the funding decision, claiming it would encourage higher rates of illegal migration.
What Could It Have Done?
“2.4 billion goes a long way, and I just wonder what that could have done in other parts of the budget for legal New Yorkers,” Ortt told reporters.
Extension for Mayoral School Control
In another move to favor the major city, lawmakers granted a 2-year extension for mayoral control of New York City schools expiring near the end of Adams’ term in 2025.
Adams Thanks Lawmakers
Adams released a statement thanking New York legislators for the move, and pledged to “provide an education system free from bureaucracy and one that allots them the certainty they deserve, provides historic investments in our schools, and changes the way we approach learning in New York City.”
Illegal Cannabis Store
Another significant measure will be made to address the eruption of illegal cannabis stores throughout the state, particularly in New York City, which is hurting legal cannabis dispensaries and diverting tax dollars.
Shutting Down Stores
A new bill would allow New York police to shut down stores that are suspected of operating illegally until an investigation and due legal processes are carried out.
“The Padlock Stays On”
“You can appeal the fine. You’ll get your due process, but while the due process plays out, the padlock stays on,” Hochul said of the bill.
More Measures Included
Other bills in the state budget include a 5-year extension for state restaurants and bars to sell alcohol to-go, measures for paid prenatal leave, and an end to co-pays food insulin.
Prison Closures
New York State will also be able to speed up the closure of five prisons due to flagging state incarceration rates. It is the next move following the closure of two dozen correctional facilities since 2011.
Yet to Be Signed
The state Senate and Assembly spent the entirety of Saturday finalizing budget bills. The completed spending plan has yet to be signed into law by the governor.
The post – What You Need to Know About New York’s $237 Billion Budget Approval – first appeared on Wealthy Living.
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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.
