The New York State Legislature late on May 2 passed the proposed Fiscal Year 2024 state budget that totals $229 billion, about a month after it was due. The budget includes language that makes New York the first state in the nation to ban stoves and furnaces fueled by natural gas and other fossil fuels including propane and oil. The ban had been proposed for last year’s budget but was withdrawn due to heavy opposition.
Beginning in 2026, new buildings under seven stories must use electric for heating and cooking. The ban on fossil fuels goes into effect for taller buildings in 2029. Exceptions are included for restaurants, hospitals and emergency generators. Buildings that exist at the time the bans take effect are not affected and they can continue to use fossil fuels.
The new budget does not include increases in the state income tax. The $229 billion represents a 3.9% increase in spending from the previous fiscal year. The state will have $19.5 billion set aside in reserve funds.
“With this budget, we are delivering on our promise to make the Empire State a more affordable, more livable, safer place for all New Yorkers,” Gov. Kathy Hochul said
The budget includes a provision that gives greater discretion to judges in setting bail for people accused of the most serious crimes and it also includes $772 million for dealing with gun violence, repeat offenders and issues related to crime such as gun violence.
The budget increases Medcaid reimbursements 7.5% for inpatient hospital services, up to 7.5% for nursing homes, and 6.5% for outpatient hospital services and assisted living providers.
The budget includes provisions to enhance the state’s mental health care system including $890 million in capital spending to develop new residential units. It also adds protections of the personal data of those seeking abortion care in New York state, regardless of the state in which they live.
The budget includes $34.5 billion in total school aid for school year 2024, the most state aid ever.
The FY 2024 Budget calls for implementing more than $400 million in Metropolitan Transportation Authority (MTA) operating efficiencies to reduce the proposed MTA fare increases from 5.5% to 4%. It will increase the top rate of the Payroll Mobility Tax for the largest businesses in New York City, generating an additional $1.1 billion annually for the MTA.
The budget expands the New York Film Tax Credit to $700 million. It provides $391 million for the Emergency Rental Assistance Program to support additional tenants and families. It provides $400 million in relief to New Yorkers experiencing high electric bills as well as lowering energy burdens through switching to electricity and retrofits of existing systems.
