|RELEASE: Hochul Budget Division financial plan update discloses projected budget gaps have risen to $36 billion. Projected 2023-24 budget total is now $229 billion.|
State of New York
Link to report: https://www.budget.ny.gov/pubs/archive/fy24/en/fy24en-fp.pdf
The Governor submitted the FY 2024 Executive Budget, with amendments, to the Legislature on
March 3, 2023. DOB estimated that the Executive Budget, if adopted without modification, would
have provided for balanced General Fund operations in FY 2024, leaving budget gaps of
$5.1 billion in FY 2025, $8.6 billion in FY 2026, and $7.2 billion in FY 2027, totaling roughly
$21 billion. The gaps were principally due to the downward revisions in projected tax receipts at
On March 31, 2023, the Legislature enacted the annual debt service appropriations, without
amendment, in advance of the new fiscal year that began on April 1. The Governor and Legislative
leaders reached agreement on the outlines of the budget for FY 2024 at the end of April, and the
Legislature completed final action on the budget bills on May 2, 2023. The Governor completed
her review of the budget bills on May 12, 2023.
The final budget agreement includes key elements proposed by the Governor in her Executive
Budget, including fully funding existing commitments, such as the third and final year of the
Foundation Aid phase-in funding; a comprehensive plan to put the Metropolitan Transportation
Authority (MTA) on stable financial footing; adding substantial new operating and capital aid for
health care; providing extraordinary funding for services to asylum seekers; expanding mental
health inpatient, outpatient, and supportive services; providing matching funds to increase the
State University centers’ endowments; providing a monthly discount on electric utility bills for
moderate-income customers; and increasing the minimum wage and funding the cost for State
service providers. The final agreement provides additional funding for many areas of the budget
including increased operating aid for university systems, expansion of free school meals, aid for
legal defense and discovery for indigent and low-income individuals, rent arrears assistance, and
expansion of the Empire State Child Credit to include children under four years of age.
DOB estimates that the budget enacted by the Legislature and approved by the Governor is
balanced in FY 2024, as required by law. The Enacted Budget Financial Plan includes savings and
resources in FY 2024 that DOB estimates will be sufficient both to fund the negotiated additions
and restorations to the budget, and fully cover downward revisions to tax receipts described later.
The gaps in the outyears are projected at $9.1 billion in FY 2025, $13.9 billion in FY 2026, and
$13.4 billion in FY 2027. The increase in the gaps over the Financial Plan period (FY 2025 through
FY 2027) are principally due to additional downward revisions in projected tax receipts reflected
in the Enacted Budget Financial Plan.
The Legislative session is expected to conclude on June 9, 2023. DOB does not anticipate any
legislation with significant fiscal impacts will be approved.