01/21/2025 | Press release | Distributed by Public on 01/21/2025 13:25
Governor's Affordability Agenda Will Put $5 Billion Back in the Pockets of New Yorkers With a Middle-Class Tax Cut, Inflation Refund and Expanded Child Tax Credit
Governor Proposes Balanced Budget With No New Income Tax Increases; State has $21 Billion in Reserves for a 'Rainy Day'
Prioritizes Public Safety With $370 Million in Gun Violence Prevention, $77 Million for Six-Month Law Enforcement Surge on New York City Subways; New Legislation Would Streamline Discovery Process
Tackles the Housing Crisis With Up To $760.5 Million For Pro-Housing Communities, $100 Million To Help First-Time Homebuyers; Governor Committed $1 Billion to New York City's 'City of Yes' Initiatives
Focuses on Mental Health Care With Legislative Changes to Involuntary Commitment and Kendra's Law; Invests $160 Million for 100 New Inpatient Forensic Psychiatric Beds on Wards Island
Directs the Largest Climate Investment in New York State's History: $1 Billion To Accelerate Our Clean Energy Transition
Creates Distraction-Free Schools With Statewide Bell-to-Bell Restrictions On Electronic Devices in K-12 Classrooms; Delivers Over $13 Million to Schools For Pouches, Cubbies or Other Necessary Infrastructure
Invests $3 Billion in Safety Net Hospitals That Serve At-Risk New Yorkers; Assessment of Managed Care Organizations Will Deliver $1.6 Billion in Federal Funding
Good afternoon everyone. Thank you to my partners in the budget process. President Pro-Tempore and Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie.
Thanks to my senior staff here with me today. Secretary Karen Persichilli Keogh. Budget Director Blake Washington. Counsel Brian Mahanna. Director of State Operations Kathryn Garcia and Acting Director of Policy Jackie Bray.
I'd also like to acknowledge Lieutenant Governor Antonio Delgado. State Comptroller Tom DiNapoli. New York State Senate Deputy Majority Leader, Michael Gianaris. New York State Assembly Majority Leader, Crystal People-Stokes. Senate Finance Chair Liz Krueger. Assembly Ways and Means Chair, Gary Pretlow. Senator Rob Ortt, representing the Senate Minority. Assembly Minority Leader Will Barclay and all my other partners in Government.
Yesterday and over the weekend, I spoke at a number of celebrations to honor Dr. Martin Luther King and referenced a number of his speeches. He said, "Life's most persistent and urgent question is, 'What are you doing for others?"
I answered that question one week ago today when I presented my comprehensive vision for New York. The State of the State Book outlined more than 200 policies focused on building safe communities and helping hardworking New Yorkers get ahead.
Because as I said, "Your family is my fight."
Today, I'm going to walk you through how we bring this vision to life in our fiscal year 2026 executive budget proposal.
A budget is more than just figures on a page. It tells the story of who we are, what we value and who we're fighting for. New York is a complex state. We have great wealth and great need.
Our challenge is to foster an environment where success thrives while making sure those who feel left behind can still see a path forward.
That's the balance we've worked hard to achieve throughout my first three years as Governor, working with the Leaders here today and Members of the Legislature.
Let's talk about the story of New York's resurgence. During these years, we've become financially stronger, surpassed our recovery targets and accelerated growth in jobs and in the economy.
We've reduced unemployment, increased the minimum wage and tied it to inflation. We've put shovels in the ground on historic infrastructure projects and accelerated the innovation jobs of the future with AI, Semiconductors and quantum computing.
We've catalyzed housing production across the state after years of stagnation. Our own Buffalo is now the hottest housing market in the nation.
We made our communities on Long Island more resilient against hurricanes and severe storms, battled wildfires in the Catskills, fought floods in the Southern Tier, and managed snowstorms and tornadoes in Western and Central New York.
We've reduced crime and funded police at record levels. We've elevated our parks, our arts and culture and now tourism is reaching record highs. And most importantly, we've achieved all this incredible progress without raising income taxes.
But the truth is, many people continue to struggle. Nationwide inflation, the rising costs at the grocery store - sky-high rents. Every month, working New Yorkers face difficult choices about how to stretch every dollar. That's why this budget is laser-focused on putting money back in New Yorkers' pockets.
This will be a $252 billion budget. Funded by revenue that is up nearly eight percent and importantly, we've maintained our reserves at historic highs of more than $21 billion. We're investing more in New Yorkers because we have more resources to do so and we're doing it responsibly.
I know many of you were anxiously watching the transition in Washington yesterday.
Let me be clear: Changes at the federal level WILL create new challenges for the state and for programs New Yorkers care about. It's already started. And if the Republicans in power cut critical federal funding streams for Medicaid, education, child care, utility assistance - the list goes on.
Those who are hurt need to raise their voices, direct their anger at Washington and push their Members of Congress to fight for them. Because New York and other States simply will not be able to shoulder these costs on our own
So, I am looking to our Congressional delegation, particularly Republicans, to prevent cuts that will harm New Yorkers. And if they fail, they must be held accountable.
But even with this cloud of uncertainty, I pledge New Yorkers this-I will do everything in my power to protect your interests.
Our budget priorities reflect what New Yorkers expect: common-sense solutions that make a real difference in people's lives. We're delivering three major forms of tax relief.
First, I'm fighting for an historic middle class tax cut, a $1 billion investment to bring rates to their lowest in 70 years.
This means real savings for 8.3 million New Yorkers. Second, I've proposed a one-time, $3 billion investment to provide immediate relief with Inflation refund checks: $300 for individuals, and $500 for families.
And third, we're tripling the child tax credit, a $825 million investment, that will provide up to $1,000 per child under the age of four. This credit goes up to $500 for school-aged children in 2026.
But our support for growing families doesn't stop with tax relief. I'll direct an additional $120 million to provide free breakfast and lunch, for every single student in New York State. We'll save families as much as $1,600 per child each year while ensuring no student goes hungry.
When you add all this up - the child tax credit for your little ones - your family's inflation refund, school breakfast and lunch, plus the middle class tax cut, that puts nearly $5,000 back in the pockets of many New York families. That's how you make a difference.
Now, I want to turn to another cost that's crushing family budgets: child care. It can exceed $21,000 per child annually, often more than the cost of housing. Driving down the cost starts with expanding child care options for families.
That's why I'm proposing $110 million to build new child care facilities and renovate existing ones. These investments to create more capacity have to be made now to get us closer to our ultimate goal: Universal child care.
I look forward to working with the legislature, the business community and our civic leaders to start laying the groundwork, to make this a reality. To deal with rising costs, New Yorkers need another form of relief: removing the State and Local Tax Deduction Cap.
This cap was instituted the last time Republicans governed Washington in 2017. It's costing New Yorkers up to $12 billion more in taxes to the federal government each and every year.
All together, that's $72 billion taken out of people's pockets over the past six years. And despite a bipartisan bill that could have addressed this issue, Republicans in Congress including seven from New York have refused to act. They are actually working against their own constituents to accept a watered down proposal rather than a full repeal of the cap. New Yorkers deserve better.
As Governor, I say this: Full repeal or no deal. Let me repeat. Full repeal or no deal.
Now, let's talk about another major driver of our affordability crisis: housing. For my generation, buying a home was a dream within reach. Today, for young families just starting out, it feels like a pipe dream. We need to change that reality and this budget takes bold steps to do that.
We're making a $1 billion State commitment to make New York City's ambitious 'City of Yes' plan possible. That means 80,000 new homes over the next 15 years - homes that wouldn't exist without the state stepping up to help. We're also putting $100 million towards starter homes and down payment assistance for first-time home buyers.
And we're taking a stand against predatory private equity firms by instituting a 75-day pause on their ability to bid on residential properties.
And remember those carrots I gave out last year to communities that pledged to build more housing? Well it turns out we've grown a few more! We'll continue our commitment to Pro-Housing Communities with another $650 million in discretionary funding. And we'll set aside an additional $110 million for infrastructure projects and planning expenses to help them grow.
Because as I've said before, costs will never come down if we don't increase supply. That's why we must build, build, and build some more. But it doesn't matter how many homes we build if New Yorkers don't feel safe where they live, work, and travel.
From the moment I became Governor, I've made public safety a priority. One of our main focus areas has been the New York City subways. We've already launched trained teams of professionals to help those caught in the throes of mental illness and deployed 1,000 National Guard, State, Police, and MTA Police to protect our transit hubs. Now, we're giving the NYPD even more support.
We're partnering with Mayor Adams and the NYPD to place officers on every overnight train between 9 p.m. and 5 a.m. These patrols began last night. We'll also install brighter station lighting, additional platform barriers, and modernized fare gates. And we'll commit an additional $45 million to enhance the National Guard's presence in our transit system. We'll also strengthen our laws surrounding involuntary commitment. Our subways cannot be rolling homeless shelters.
We must have the ability to help those who aren't able to seek help themselves, who are refusing help with the basics, like clothing, food, and shelter. This is about showing humanity for fellow human beings, who are suffering from mental illness that is literally putting their lives and the lives of others in danger.
In addition to our focus on New York City, we're continuing our statewide approach to fighting crime.
No Governor in New York State history has invested more to eradicate the scourge of gun crime in our communities. Data shows our strategies are working. In 2024, we had the lowest statewide shooting rate on record with murders outside of New York City at their lowest rate since 1965 and shootings down 28 percent. But we know our work isn't done.
This year, we're committing a record $370 million to proven gun violence prevention programs along with $50 million for upgraded law enforcement technology and $13 million to establish a new Crime Analysis and Joint Special Operations Command Headquarters where over 100 local, state and federal agencies will share intelligence and coordinate in real time
And we'll finally close the loopholes in our discovery laws that delay trials and lead to cases being thrown out for minor technicalities.
We're reaffirming that hate has no place in our state with $35 million in grants for security upgrades at synagogues, mosques and other vulnerable locations.
And we're putting more state troopers at the Northern Border where we've seen a sharp uptick in fentanyl and weapon seizures. Because when it comes to protecting New Yorkers, we will use every tool at our disposal.
Our fight for New York's future also means leading the way on climate action. This year's budget directs $1 billion, our largest climate investment ever to accelerate New York's clean energy transition. These funds will support critical projects in clean energy generation, create good paying jobs and reduce energy costs for New York families. We must be prepared to meet the challenge of the federal government walking back commitments to offshore wind - a key energy source - in our transition to renewables.
Addressing these challenges now will help ensure a healthier world for our children in the future.
But we cannot ignore the fact that our kids have challenges already, today, right inside their classrooms. The numbers tell a stark story
A recent Pew research poll revealed that 72 percent of high school teachers across the nation report that cell phones in classrooms are a major distraction for their students. That same study found that 95 percent of high schoolers have access to smartphones and receive an alarming 250 notifications per day.
As the first mom Governor of New York, these aren't just statistics to me. I know how hard it is to get your kid's attention, when there's a screen flashing in front of their face, and how hard it is for educators teaching algebra or geography, to compete with viral dances and addictive algorithms.
That's why last year I convened round tables across the State to discuss the impact of smartphones, not just in our classrooms but on our kids' mental health. I consulted parents, students, educators, school administrators, local leaders and advocates as we worked to devise a solution to the complicated challenge posed by smartphones in schools.
As a result of these conversations, I'm announcing today a proposal that will transform our classrooms: A new statewide policy to make classrooms distraction-free so our children can focus on the things that matter.
By the start of the next school year every student will be required to disconnect from their devices during school hours bell to bell. That means during class, at lunch, in the hallways, our kids will finally be free from the endless interruptions of social media and all the mental health pressures that come along with it
Schools will have flexibility in how they implement this. Districts will decide how they want to store devices and how they will ensure compliance. Of course there will be exceptions for students who need their devices for medical reasons to assist non-English language speakers and students with learning disabilities.
The State will provide financial support for this transition. But every school must establish a policy to help students thrive without their phones. That's just the first step, though. We need to give them safe places to play and just be kids again.
Our new "Unplug and Play" initiative will steer young people towards healthy pursuits that nurture young minds and bodies. We'll fund 100 new playgrounds and create more than 100,000 new out-of-school activities.
And we're building on the incredible popularity of last year's $150 million NY SWIMS initiative by investing another $50 million in pool construction and providing free swim lessons to tens of thousands of young New Yorkers.
There are a few other important elements of the 2026 budget I want to discuss that my Budget Director Blake Washington will go into more detail on in a few moments.
First off - school funding. We're beginning the process, taking targeted steps to modernize the State's outdated Foundation Aid Formula. We're replacing 20-year-old poverty metrics with current census data to more accurately determine student need. This will ensure State dollars reach the children who need them most. And let me be clear: I know that any change is hard.
And whether it's working or not, the status quo is always easier.
That's why it's important to know that the vast majority of schools will receive more money than they would have without these slight adjustments to the formula.
I want to thank Bob Megna and the Rockefeller Institute for undertaking a review and providing recommendations.
Now, let's talk about one of the largest spending drivers of our budget - Medicaid. Nearly half of all New Yorkers rely on publicly-funded health insurance.
The state share of Medicaid spending this year will be over 35 billion dollars.
Over the long-term, we will need to take action alongside the federal government to manage this growth which isn't sustainable for New York taxpayers on its current trajectory.
We'll take smart steps to control costs while protecting services. We've secured federal approval for a new managed care assessment that will generate $1.6 billion annually. We're investing nearly $1 billion in our safety net hospitals and continuing to fund our innovative social care networks. We'll continue working to ensure every New Yorker has access to quality healthcare, regardless of their zip code or their circumstances.
There's also another essential service that must remain strong - our public transit network. Two years ago, we faced a fiscal cliff at the MTA, and working with the Legislature, we took action. We secured $400 million in operating efficiencies and over $1.1 billion in annual funding to ensure public transit remains affordable, efficient and reliable.
Now we must ensure the MTA has the capital funding required to keep the system running, and deliver the new and expanded service commuters deserve. The MTA is developing an updated capital plan to propose to me and the legislature, and once we receive it, we will determine the best way to fund it.
This will be resolved before the end of session.
I am confident we will deliver a plan that advances critical projects, like extending the Second Avenue Subway, connecting Queens and Brooklyn with the Interborough Express, new Metro-North stations in the Bronx, and faster service in the Hudson Valley.
Beyond transit, we're strengthening our broader infrastructure. In just the past year, we've improved over 3,100 bridges and enhanced more than 2,300 lane miles of highways. And now, we're proposing an additional billion dollars for our DOT Capital Plan, bringing the total to a historic $34.1 billion. We're advancing transformative projects across the state, replacing I-81 in Syracuse, and studying similar opportunities for the Cross Bronx Expressway.
Here in Albany, we're replacing the Livingston Avenue rail bridge and reimagining the waterfront along I-787.
And we're making long overdue investments with our billion-dollar Pave Our Potholes program and robust support for local infrastructure to ensure every community has a strong foundation.
So - I've outlined our major priorities for the coming year. But there's much more to this budget that will make a real difference in people's lives.