Governor Hochul Holds State of the State Address and Releases First Executive Budget Proposal

On January 5th, Governor Kathy Hochul delivered her historic first State of the State Address, which was held in the Assembly Chamber for the first time in over a decade. During her address, and in her State of the State Book released afterwards, the Governor outlined an ambitious Legislative agenda to bring New York into a “new era.” Governor Hochul’s “A New Era for New York” Agenda consists of nine components, all of which include various proposals. The nine components are:

  • Rebuild Our Healthcare Economy to Provide Care for More New Yorkers
  • Protect Public Safety and Take Strong Action Against Gun Violence
  • Invest in New York’s People
  • Invest in New York’s Communities
  • Make New York’s Housing System More Affordable, Equitable, and Stable
  • Make New York a National Leader in Climate Action and Green Jobs
  • Rebuild New York’s School System and Reimagine Higher Education
  • Advance New York’s Place as a National Equity Model
  • Make Critical Reforms to Restore New Yorkers’ Faith in Their Government

For a more detailed outline of every one of the Governor’s State of the State Proposals, you can find the full State of the State Book here:

On January 18th, the Governor released her first Executive Budget Proposal. Many of the proposals included in the the Governor’s State of the State were included in the ambitious $216 billion budget proposal. Some of the most notable provisions of the budget proposal include:

  • A proposal to achieve 100% electric school buses statewide by 2035;
  • Expanding the Part-Time Tuition Program;
  • Restoring the Tuition Assistance Program (TAP) for incarcerated individuals;
  • Allowing the use of 529 college savings accounts for apprenticeship programs;
  • Stopping institutions of higher education from withholding transcripts due to unpaid student bills;
  • Banning non-compete and no-poach agreements for businesses;
  • Authorize the utilization of $39.8 million projected to be available in the Mortgage Insurance Fund (MIF) excess balance and/or reserves;
  • Implementing health care workforce bonuses;
  • Implementing various nursing home reforms including modifying the definition of revenue to exclude provider assessment revenue and the capital per diem portion of reimbursement rates for nursing homes with a Centers for Medicare and Medicaid Services 4 or 5 star rating, providing the Commissioner of DOH with the authority to modify the definition of revenue to exclude the capital per diem portion of reimbursement rates for nursing home that have a 3-star CMS rating on a case-by-case basis, and expanding funding methods of the Nursing Home Quality Pool (NHQP);
  • Establishing and funding the 988 Suicide Prevention and Behavioral Health Crisis Hotline system;
  • Expanding access to Naloxone and Buprenorphine in pharmacies;
  • Extending Kendra’s Law, which ensures individuals with mental illness and a history of violence or hospitalization participate in community-based services appropriate to their needs.
  • Several State Liquor Authority/Alcohol Beverage Licensing reforms, including allowing the sale of to-go alcoholic drinks, streamlining SLA application requirements, adding e-mail as a permissible notification from SLA to municipalities, and extending temporary retail permits;
  • Requiring polling sites on college campuses;
  • Changing the deadline for voter registration from 25-days before an election to 10-days before;
  • Replacing the Joint Commission on Public Ethics (JCOPE) with a new independent commission of ethics and lobbying in government;
  • Passing the Clean Slate Act;
  • Implementing the ConnectAll Initiative, which would exempt projects from deploying fiber-optic cable in the State from Department of Transportation use and occupancy fees;
  • Providing affordable broadband to New Yorkers;
  • Authorizing the issuance of $4 billion for the Clean Water, Clean Air, and Green Jobs Environmental Bond Act of 2022;
  • Providing tax credits for costs incurred by taxpayers for converting grade no. 6 heating oil to biodiesel fuel or a geothermal system;
  • Extending the Clean Heating Fuel Tax Credit for three years;
  • Extending the Film Tax Credit for three years;
  • Extending the Alternative Fuels and Electric Vehicle Recharging Property Credit for five years; and
  • Authorizing up to three casino licenses, which would likely be in the New York City area.

All of the Executive Budget Bills and the Memorandums in Support can be read here:

Now, the Governor has the option to amend her Budget Proposal after 21-days and/or after 30 days. The deadline for 21-day amendments would be Monday, February 7th and the 30-day amendments would need to be released on Thursday, February 16th. After that, the Legislature will introduce their one-house Budget Proposals and negotiations on a final budget will take place. To be passed on-time, the budget will need to be passed by April 1st