Governor Hochul Announces Highlights of FY 2024 Executive Budget

Expanding Public Transit Access, Affordability, and Safety  

Over the past year, Governor Hochul has advanced the completion of the Long Island Rail Road’s Third Track project, taken the inaugural ride into Grand Central Madison, broke ground on the Metro-North Penn Station Access project, and pushed other major projects forward, including the Second Avenue Subway and the Interborough Express.  

Governor Hochul has worked tirelessly with partners in the MTA, New York City, and the State to strengthen the long-term fiscal stability of the MTA, while ensuring continued progress in rider safety. The Executive Budget proposal calls for: 

• Implementing over $400 million in MTA operating efficiencies to reduce expenses and improve service to customers. 
• Increasing the top rate of the Payroll Mobility Tax (PMT), generating an additional $800 million annually. 
• Increasing New York City’s share of funding for paratransit services, providing students with reduced fare MetroCards, and offsetting foregone PMT revenues for entities exempted from paying the tax, generating nearly $500 million annually.  
• $300 million in one-time State aid to address the extraordinary impact on MTA operating revenues. 
• $150 million annual commitment from the MTA for additional safety personnel.  
• Dedicating a share of $1.5 billion in the licensing fees if three casino licenses are awarded, and a share of an estimated $462 to $826 million in annual tax revenue from the casinos for MTA operations.  

Governor Hochul will build on her record investing in transit by making a new historic contribution to expand public transit access and affordability while improving public safety on trains, buses, and subways, across the state. 

• $9.1 billion in mass transit operating support, including $809 million in operating support for non-MTA authorities. 
• Nearly $7 billion for the second year of a record $32.8 billion, five-year DOT Capital Plan to improve highways, bridges, rail, aviation infrastructure, non-MTA transit, and DOT facilities including $1.2 billion for local roads and bridges.
• $1.3 billion for a commuter-first Penn Station, the Western Hemisphere’s busiest transit hub.
• $20 million for bus electrification for non-MTA authorities, and $20 million to rehabilitate NFTA’s light rail. 

Additionally, Governor Hochul will take action to fight toll and speed camera evasion. A new law will authorize law enforcement and the Department of Motor Vehicles to levy increased penalties on drivers whose license plates are knowingly altered to make them unreadable in photographs, including increased fines and registration denials. The law will also enable law enforcement to seize materials affixed to license plates that are designed to prevent them from being read by speed and toll collection cameras.  

Addressing the Climate Crisis and Investing in Affordable Energy 

New York State has one of the nation’s most ambitious climate plans focused on creating a cleaner, healthier environment for future generations. Governor Hochul will make a transformative $5.5 billion investment to promote energy affordability, reduce emissions, and invest in clean air and water, building on more than $30 billion committed to climate action.  

In her State of the State address, Governor Hochul directed the New York State Department of Environmental Conservation and New York State Energy Research and Development Authority to advance a Cap-and-Invest Program to establish a declining cap on greenhouse gas emissions and invest the proceeds in programs that drive emissions reductions and maintain the competitiveness of New York’s industries. Included in the Executive Budget is a proposed Climate Action Fund which is expected to deliver more than $1 billion in future Cap-and-Invest proceeds to New Yorkers every year.  

The Executive Budget includes a proposal to advance renewable generation in New York State by granting the New York Power Authority the ability to help the State meet its aggressive renewable energy targets. The Executive Budget also includes nation-leading building decarbonization proposals that will prohibit fossil fuel equipment and building systems in new construction, phase out the sale and installation of fossil fuel space and water heating equipment in existing buildings, and establish building benchmarking and energy grades. The new construction proposal includes certain exemptions such as commercial kitchens. The existing equipment phase out proposal does not impact stoves. 

In addition to forthcoming investments from the historic Environmental Bond Act passed by voters in 2022, the Executive Budget includes:

• $500 million in clean water infrastructure funding and $400 million for the Environmental Protection Fund.  
• $400 million to provide relief to New Yorkers experiencing high electric bills as well as lowering energy burdens through electrifications and retrofits. 
• $200 million for the Office of Parks, Recreation and Historic Preservation to invest in enhancing the improving state parks.  
• A proposal to implement the Waste Reduction and Recycling Infrastructure Act to increase recycling rates, save local governments money, and protect the Environment.

New grant program to provide funding for municipalities to investigate and remediate sites contaminated with emerging contaminants like PFAS. 

Making Child Care More Accessible and Affordable    

With the actions included in the FY 2024 Executive Budget, Governor Hochul is increasing the State’s investment to an unprecedented $7.6 billion over four years to make the child care system more accessible and affordable. This will put New York State on the path toward improving the process of finding child care, widening program eligibility, and supporting the child care workforce.  In addition, there will be the following targeted investments:

• $389 million in underutilized Federal funds for a Workforce Retention Grant program. 
• $25 million in foregone revenue to support the Employer Child Care Tax Credit.
• $4.8 million in State funds for the Employer-Supported Child Care Pilot Program. 

Creating a Stronger Health Care System   

Building off last year’s historic $20 billion investment, Governor Hochul’s will continue to invest in high quality health care, address pressing health needs facing New Yorkers, and helping facilities across the state prepare for future public health emergencies. New York’s health care system is among the best in the nation, but the pandemic shed light on disparities in the system. The budget seeks to address these disparities by adding more than $1 billion in health care capital funding, expanding Medicaid coverage for 7.8 million low-income New Yorkers, and improving access to aging services and high-quality long-term care:

• $500 million in multi-year health care capital funding to drive transformative investment that support the State’s health care investments.
• $500 million in multi-year capital grants to support investments in technological investment upgrades, including clinical tech and cybersecurity.
• $967 million to complete consolidation of Wadsworth Laboratories’ five unconnected sites to one site on the W. Averell Harriman Campus in Albany by 2030.
• $100 million to expand Medicaid coverage of preventative health services and access to primary care.
• $157 million in New York State’s nursing homes and $9 million in New York’s assisted living providers, so staff can better provide high-quality care to residents.
• $60 million beginning in FY 2025 to expand the Medicaid Buy-In program so more New Yorkers with disabilities can work and still qualify for coverage.
• $39 million to reduce the risk of lead exposure in rental properties outside of New York City.
• $8 million to revitalize the state’s Emergency Medical Services system and $14 million to increase Medicaid reimbursement rates for medical transportation.
• $12 million to modernize New York State’s health reporting systems and build a nation-leading health monitoring and surveillance system.