Governor Hochul Announces Highlights of FY 2023 Budget

 

$31 Billion Plan Will Strengthen Teacher Workforce and Invest in Schools    

Provides Tax Relief for Small Businesses and the Middle Class  

Record Five-Year $32.8 Billion DOT Capital Plan Will Leverage Federal Funding to Support Major Infrastructure Projects Throughout the State 

$900 Million in Childcare Stabilization Grants Will Cover Operational Costs for 15,000 Childcare Providers Statewide  

$1 Billion to Fund Innovative Small Businesses and Tax Credit for COVID-Related Expenses  

Invests $1.5 Billion in SUNY and CUNY Over Next Five Years and Expands TAP Eligibility  

Includes $4 Billion for Clean Water, Clean Air, and Green Jobs Environmental Bond Act and $500 Million for Offshore Wind    

Launches a New Five-Year, $25 Billion Comprehensive Housing Plan    

$224 Million to Fund Law Enforcement and Community-Based Gun Violence Initiatives  

FY 2023 Budget Book Available Here

 Governor Kathy Hochul today, with Division of the Budget Director Robert F. Mujica Jr., outlined her Fiscal Year (FY) 2023 Executive Budget. The FY 2023 Executive Budget maintains the Governor's commitment to passing a bold agenda that by rebuilds New York's healthcare and teacher workforces; provides tax relief to those who need it most; speeds up economic growth and creates good-paying middle-class jobs; strengthens the state's infrastructure and confronts climate change; secures public safety and protects communities; makes housing more affordable to ensure every New Yorker has a roof over their head; and enacts bold reforms to restore trust in State government.  

"We have the means to immediately respond to the COVID-19 pandemic as well as embrace this once-in-a-generation opportunity for the future with a historic level of funding that is both socially responsible and fiscally prudent," Governor Hochul said. "As I said in my State of the State speech: It's time for a better, fairer, and more inclusive version of the American Dream. I'm calling it the New York Dream. We will make that New York Dream real - and ensure that it can be realized by every single New Yorker."

"Governor Hochul's Executive Budget makes historic investments in critical areas while ensuring that we are equipped for future shocks," Budget Director Robert F. Mujica Jr. said, "Never again will the State find itself unprepared for the opportunities - or challenges - ahead. After years of unprecedented hardship, this Budget makes the State, from a financial perspective, as resilient as its spirit. It is the Budget that New Yorkers deserve and expect."  

A Balanced Budget 

Governor Hochul's FY 2023 budget proposal reflects New York's solid financial footing. As tax revenues rebound the budget is balanced for the entirety of the financial plan leading up to FY 2027, has no budget gaps, and holds spending growth in FY 2023 below inflation. 

Rebuilding the Health Care Workforce

To restore our depleted healthcare workforce and build the healthcare system of tomorrow, Governor Hochul will make a more-than-$10 billion, multi-year investment in healthcare, including more than $4 billion to support wages and bonuses for healthcare workers. Key components of this multi-year investment include:     

• $1.2 billion of state support for healthcare and mental hygiene worker retention bonuses, with up to $3,000 bonuses going to full-time workers who remain in their positions for one year, and pro-rated bonuses for those working fewer hours;   
• $500 million for Cost-of-Living Adjustments (COLAs) to help raise wages for human services workers;   
• $2.4 billion for healthcare capital infrastructure and improved lab capacity; and   
• Other investments in workforce and healthcare access and delivery.   

With these investments, Governor Hochul proposes to rebuild and grow the healthcare workforce by 20 percent over the next five years with a program designed to strengthen home care, improve the career pipeline, expand access to healthcare training and education, and recruit healthcare and direct support professionals to care for people in underserved areas.    

Strengthening the Teacher Workforce

School Aid: The FY 2023 Executive Budget provides $31.3 billion in total School Aid for SY 2023, the highest level of State aid ever. This investment represents a year-to-year increase of $2.1 billion (7.1 percent) compared to School Year (SY) 2022, including a $1.6 billion Foundation Aid increase and a $466 million increase in all other School Aid programs.   

Foundation Aid: Foundation Aid is the State's main education operating aid formula. It is focused on allocating State funds equitably to all school districts, especially high-need districts, based on student need, community wealth, and regional cost differences. The Executive Budget provides a $1.6 billion (8.1 percent) increase in Foundation Aid, supporting the second year of the three-year phase-in of full funding of the current Foundation Aid formula and ensuring each school district receives a minimum year-to-year increase of 3 percent.  

The Executive Budget provides SUNY and CUNY with $106 million - $53 million each - to hire additional full-time faculty at both four-year colleges and community colleges. This investment will fund an estimated 880 additional full-time faculty - 340 at SUNY and 540 at CUNY, including support for CUNY's plan to convert adjuncts to full-time faculty.