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Governor Reveals Highlights of Fiscal Year 2025 Budget

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Yesterday, New York Governor Kathy Hochul revealed the highlights to the fiscal year 2025 New York State Budget. The Governor says the budget will be balanced with record investments and no income tax increases.

The focus of the budget was on investments in public safety initiatives, health care, housing, school aid, resiliency projects, and more. The full 144 page budget briefing may be found HERE.

“This budget makes it clear that fiscal discipline can co-exist with progressive, people-driven policies,” Governor Hochul said. “I am committed to fight the right fights on behalf of New Yorkers, and to pursue the common good with common sense – by seeking common ground.”

According to a release by the Governor’s Office, funding spending tops at $233 billion dollars, an increase of 4.5%. State reserves are currently at 15% of the overall operating costs within the state. Hochul looks to have significant investments in the state to allow New York to become more affordable, liveable and safe, noting the significant level of those who left the state in the past year.

Spending for improving public safety and cracking down on crime includes:

  • $347 million in investments in programs to prevent and reduce gun violence.
  • $290 million to restore the effectiveness of the continuum of the criminal justice system.
  • $120 million in victim assistance funding.
  • $40.2 million to address retail theft and bring relief to small businesses.
  • $40.8 million to reduce assaults with a focus on domestic violence.
  • $35 million for the next round of the Securing Communities Against Hate Crimes program.
  • $5 million for the Commercial Security Tax Credit to help business owners offset the costs of retail theft.

Governor Hochul’s Office says the state’s mental health care system has been underfunded for decades, the FY 2025 budget will have a 45% increase in state investments to a total of $4.8 billion dollars. Those investments are:

  • $55 million to create 200 new inpatient psychiatric beds.
  • $45 million for youth mental health including school-based services and peer-to-peer counseling.
  • $43 million to keep supportive housing units for people in need of mental health services.
  • $42.2 million to increase reimbursement for mental health treatment services.
  • $37 million to build new programs for unhoused individuals living with mental illness
  • $24 million to help people with mental health problems who are in the criminal justice system.

Public Education in New York State will see an investment of $6 billion dollars over a two year period. Hochul says this will be the highest amount of school aid in the state’s history.

  • $35.3 billion in total school aid, an increase of $825 million (2.4 percent) from FY24. This includes a $507 million increase in Foundation Aid.
  • $10 million to train 20,000 teachers and teaching assistants in best practices for evidence-based literacy instructional practices.
  • 4-year extension of Mayoral Control over New York City public schools.

There will also be continued funding for New York’s SUNY and CUNY schools:

  • $1.2 billion for SUNY and CUNY capital projects.
  • $207 million for SUNY and CUNY operations.
  • $2.75 million for the SUNY Empire State Service Corps, offering students community service work opportunities.
  • $2.5 million for the operating costs of SUNY’s participation in the Empire AI consortium.
  • $2 million for SUNY’s role in NY SWIMS.
  • $1.5 million for the State Weather Risk Communication Center at the University at Albany.

Healthcare investments:

  • $35.5 billion for Medicaid, along with targeted and transformational changes to ensure the long-term solvency and sustainability of the Medicaid program.
  • $315 million to provide health insurance subsidies for individuals up to 350 percent of the federal poverty line enrolled in Qualified Health Plans.
  • $67 million from the Opioid Settlement Fund for harm reduction, prevention and recovery services.
  • $45 million for disability services and independent living opportunities.
  • $25 million to catalyze innovation in research and treatment for ALS and other rare diseases.
  • $6.7 million to become an “employment first” state for the disability community.

Economic Growth for NYS:

  • $500 million in capital resources to support the State’s $1 billion commitment to expand and modernize the NY CREATES Albany NanoTech Complex.
  • $200 million for the One Network for Regional Advanced Manufacturing Partnerships (ON-RAMP) initiative to establish a network of four new workforce development centers along the I-90 corridor in upstate New York
  • $100 million for the FAST NY program to develop shovel-ready sites to ensure New York’s continued attractiveness to large employers and high-tech manufacturing companies.
  • $50 million for the Restore New York Communities Initiative to remove blight, reinvigorate downtowns, and generate economic opportunity in communities statewide.
  • $150 million in new capital grants and $75 million in new Excelsior tax credits to fund projects coordinated and planned by Regional Economic Development Councils.
  • $100 million for another round of the Downtown Revitalization Initiative.
  • $100 million for New York Forward to support the state’s rural communities.
  • $275 million to support the Empire AI Initiative over multiple years, complemented by more than $125 million in multi-year financial commitments from private partners.
  • $56.5 million for tourism and advertising campaigns.
  • $50 million to support an additional round of NYSCA’s grant program for capital projects of all sizes at arts organizations across the state.

State Roads and Bridges:

  • $7.9 billion in State operating aid for the MTA, which Governor Hochul saved from the “fiscal cliff” in last year’s budget.
  • $7.6 billion for the third year of the five-year $32.9 billion Department of Transportation Capital Plan, the largest in New York’s history.
  • $577.8 million in funding for the Consolidated Highway Improvement Program (CHIPS) and the Marchiselli Program.
  • $551 million for non-MTA transit in the downstate region.
  • $323 million for transit systems in upstate New York.
  • $100 million for the Pave our Potholes (POP) Program
  • $45 million for engineering on the Interborough Express
  • $16 million to move forward with the planning of the Second Avenue Subway extension to Broadway.
    Introducing a comprehensive safety package to address the remaining legislative recommendations from the Stretch Limousine Passenger Safety Task Force.

Climate Resiliency:

  • $500 million for clean water over two years.
  • $435 million into resiliency projects to protect communities from severe floods, including $250 million for a voluntary buyout program.
  • $400 million for the Environmental Protection Fund.
  • $100 million for the State Superfund Program.
  • $160 million invested in NY SWIMS to address the disinvestment in swimming facilities and lifeguards in underserved communities and an additional $446 million to invest in our State parks and pools.
  • $47 million to plant over 25 million trees across New York by 2033, as announced in the Governor’s 2024 State of the State Address.

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