On April 20, 2024, Governor Hochul signed New York State’s Budget for fiscal year 2024-2025. The $236.8 billion budget focuses funding on human services, public health and safety, education, housing, employment, and more. We’ve outlined some of the key budget provisions here, and we look forward to assisting our clients in all industries as they consider the budget impacts on their business and their bottom lines.
Education
- Investment in Educational Outcomes: The budget significantly increases school aid by $1.3 billion to nearly $36 billion, including a $934.5 million rise in Foundation Aid.
- Reading Proficiency: A pivotal part of the budget is the ‘Back to Basics’ legislation which mandates evidence-based reading instruction in classrooms to elevate reading proficiency.
- Professional Development: An allocation of $10 million to train 20,000 teachers in instructional best practices centered around the Science of Reading.
Health Services
- Support for Hospitals: The budget designates $3.2 billion to aid distressed hospitals, with an additional $550 million annually to transform New York’s safety net hospitals through a Medicaid Global Budget initiative.
- Medicaid Enhancements: A substantial $7.5 billion is allocated for Medicaid enhancements, aiming to broaden and improve healthcare services across the state.
Housing
- Housing Initiatives: The introduction of two new programs, the Affordable Neighborhoods for New Yorkers Program (ANNYP) and Affordable Housing from Commercial Conversions for Tax Incentive Benefits (AHCC), aims to boost housing production in New York City by transforming nonresidential buildings and ensuring permanent affordability for new constructions.
- Financial Allocations: $150 million is allocated to enhance housing affordability and accessibility statewide.
Employment Law Compliance
- Paid Leave for Prenatal Appointments: New York becomes the first state to mandate up to 20 hours of paid leave annually for prenatal appointments, effective January 1, 2025.
- Paid Lactation Breaks: Starting June 19, 2024, employers are required to provide 30 minutes of paid break time for nursing mothers to express breast milk.
- Sunset of COVID-19 Paid Leave: The requirement for employers to provide paid sick leave for COVID-19 related quarantine or isolation will expire on July 31, 2025.
Public Safety
- Crime Reduction Efforts: An allocation of $347 million continues efforts to reduce and prevent gun violence, alongside $40.2 million to tackle retail theft.
- Infrastructure and Environment: A notable $500 million investment targets clean water infrastructure projects to enhance environmental sustainability.
- Cultural and Recreational Investments: The budget also includes funds to support cultural engagements and recreational activities, fostering community development and quality of life.
If you need further guidance or have any questions on this topic, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
