$227B NY budget for 2024 includes some higher taxes

Gov. Kathy Hochul today revealed the budget for Fiscal Year 2024 that she is submitting to the legislature. It totals $227 billion and raises a payroll tax paid by businesses in the lower part of the state that helps fund the Metropolitan Transportation Authority (MTA), while also extending a tax hike on larger companies. The 2024 budget represents an increase of about 2.4% from the 2023 budget.

An increase in the so-called Payroll Mobility Tax is expected to generate $800 million for the MTA, which operates Metro-North in addition to the Long Island Railroad, New York City buses and subways and bridges. The MTA still is recovering from the loss of ridership experienced when the Covid pandemic hit, creating a financial hole.

School aid would be up by 10% to $34.4 billion. Hochul’s budget proposes spending $134.4 million to help the criminal justice system work more efficiently and $12.8 million for expanded State Police Community Stabilization Units. The new budget proposes spending $337 million to reduce and prevent gun violence.

Hochul’s new budget includes $1 billion in spending to help immigrants. It would largely help local municipalities with costs they’ve incurred providing shelter to new immigrants.

Hochul’s budget includes extending a corporate franchise tax hike that applies to businesses taking in $5 million or more. The 0.75% increase in the tax rate was scheduled to end this year, but Hochul has proposed extending it. The 2024 budget falls short of making the tax increase permanent as some Democrats have urged but Hochul opposed.

The 2024 budget adds to the state’s financial reserves, bringing the state’s reserves up to $20 billion.

Hochul said that her budget includes spending to deal with the effects of climate change, including $200 million to help low-income families upgrade their homes.

“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.”

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

Hochul summarized the new budget in a presentation made at the State House in Albany After the presentation, she held a news conference which began with her being questioned about MTA funding.

“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.”