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Gov. Hochul Announces $227B Budget for FY 2024

On Wednesday, NY governor Kathy Hochul announced the budget for the fiscal year 2024 that she will be submitting to the legislature. The budget totals $227 billion and raises a payroll tax paid by businesses in the lower part of the state that will help fund the MTA and also extend a tax increase on larger companies. The 2024 budget is a 2.4% increase from ’23.

What Does the Budget Include

The Payroll Mobility Tax is expected to generate upwards of $800 million for the MTA. That includes the Metro-North in addition to the LIRR, NYC buses, subways, and bridges. The MTA has been in a financial hole due to the massive loss of ridership from the Covid pandemic.

There would be an increase of 10% in school aid to $34.4 billion. Among Hochul’s budget proposals are $134.4 million for improving criminal justice efficiency and $12.8 million for expanded State Police Community Stabilization Units. For reducing and preventing gun violence, the new budget proposes spending $337 million.

The new budget also includes $1 billion for helping immigrants. Largely helping local municipalities with costs they accrue by providing shelter and other necessities.

A corporate franchise tax hike that applies to businesses taking in $5 million or more is included in Hochul’s budget. Hochul has proposed extending the 0.75% tax rate increase, which was scheduled to end this year. As some Democrats have urged, Hochul opposed permanentizing the tax increase in 2024.

Her 2024 budget proposal also includes $200 million to help low-income families upgrade their homes, to help deal with the effects of climate change.

Hochul said there would be new spending for health care, with an additional $1 billion to be spent on healthcare needs including $500 million in capital spending to help local hospitals.

Statements from Hochul

“Yes, we have the nation’s most ambitious plan — we’re proud of it,” Hochul said. “But I am never one to rest on our laurels, not now, not ever. We’ll continue to ensure a cleaner, healthier environment for future generations. We’ll make those investments today that promote energy affordability, reduce emissions and invest in clean air and water.”

“The New York City economy drives the state of New York,” Hochul said. “MTA helps drive the city economy, so it’s critically important to all of us and I’m trying to share that philosophy with people elsewhere in the state, so we have to make those investments. You have to look at the various pots of funding that are available. Increasing the Payroll Mobility Tax will generate $800 million.”

Wrap Up

It remains to be seen whether or not the budget will get approved for 2024, however, If it is, this is how the governor plans on using all that money.

 
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