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2024 New York State Legislative Session and U.S. Congress Preview

As always, politics will be a dominating factor in 2024 in New York: a Presidential Election, Congressional Elections in newly drawn districts that will determine control of the House of Representatives, and the entire State Legislature up for reelection under a new public campaign financing system. Those state elections will be particularly interesting as moderate Democrats (and in some cases Republicans) face primaries while Democrats in previously safe places (a Republican won a New York City Council race in the Bronx last year!) are facing General Election challenges from a reenergized Republican Party that has had success in attracting Latino and Asian constituencies previously solidly Democratic, and this public financing system will mean lots more money available to challengers able to organize their neighborhoods.

The policy and governmental side is also fraught with challenges as looming fiscal deficits will force elected officials (many of whom are watching their backs, see above) to make difficult choices. Those fiscal choices—especially whether to increase personal income taxes or look for other revenue raisers— will be the defining issues of 2024, including the finances—as well as the morality—of dealing with New Americans, be they migrants or asylum seekers, and the rising costs associated with their care.

Of course, we cannot fully understand the path ahead without first reviewing how we got here. Below is our 2023 New York Legislative Session Review and 2024 Preview.

2023 New York State Legislative Review

The Fiscal Year 2024 Budget saw all funds spending approved at $229 billion, a 3.9 percent increase from Fiscal Year 2023. The Budget saw notable action taken on climate change, education, worker protection, public safety, healthcare, the MTA, and housing.

After four years of advocacy by climate and community organizations, the Enacted Budget included the Build Public Renewables Act that, for the first time, authorized the New York Power Authority (NYPA)–the largest state public power authority in the nation–to build renewable energy projects to help the State reach its very ambitious climate goals. Various energy and environmental activists lauded this provision of the Budget. The All-Electric Building Act was also included, restricting fossil-fuel hookups in new homes and buildings starting in 2026. Governor Hochul was also to achieve her proposal of a cap-and-invest program that ultimately included higher labor standards and a focus on environmental justice communities. The Department of Environmental Conservation announced they have filed draft regulations for two of the most potent greenhouse gases that will be available for public comment early next year. Working out the rest of the details of these programs will be a major part of the policy conversation in 2024.

Hochul and the Legislature agreed to $24 billion in funding for Foundation–a $2.6 billion increase from the year before. This fully funded the Foundation Aid formula for the first time in history. Part of the deal included the reissuance of 22 charter schools and $135 million was included to fund the Healthy School Meals for All program making school meals free for all New York students, along with $20 million in capital funding for public libraries. SUNY and CUNY also saw increases in general operating aid and flexible capital. These increases will be compounded by inflation and cost of living increases and are part of the pressure on budget spending in future budgets. Certainly it is difficult to find an elected official in New York who wants to cut education funding and so higher costs for education means less funding for other programs . . . until or unless more revenue can be found.

Last year’s budget also featured an agreement to statutory raises in the next three years for the minimum wage, increasing the hourly wage to $17 downstate and $16 Upstate by 2027 and significantly, following 2027, annual increases in minimum wage will be tied to inflation.

Public safety continues to be a concern across New York and last year’s budget was delayed until Hochul and the Legislature reached an agreement providing greater discretion for judges to set bail for serious crimes while also clarifying other protections for defendants. $347 million, a $120 million increase from the FY’23 Budget was approved for various programs to prevent and reduce gun violence. $170 million was included to support discovery process improvements for both district attorneys and public defenders along with $100 million in aid for prosecution and defense funding across the State. The enforcement powers of both the Office of Cannabis Management and the Department of Taxation and Finance to address unlicensed cannabis stores was also strengthened.

Mental health was one of biggest pieces of both Governor Hochul’s Executive Budget and the FY’24 Enacted Budget with $1 billion being committed for a multi-year mental health care investment primarily in capital funding to develop new residential units and expanded mental health services including in schools. Abortion providers were supported by $100 million in funding through increased Medicaid reimbursements and requiring private insurers to cover abortion medication. Reimbursement rates for Medicaid were also increased by 7.5 percent for hospital inpatient services, 6.5 percent for outpatient services, and 6.5 percent for nursing homes and assisted living programs. Human service workers won a cost-of-living adjustment of 4 percent while an additional $93 million went to the Opioid Settlement Fund.

Suburban Democrats in both the Senate and Assembly majorities were successful in working with their city colleagues to limit Hochul’s original Payroll Mobility Tax increase proposal to only New York City-based businesses. Transit advocates were also especially excited about a pilot program for free buses in each borough of New York City as well as statutory language for the MTA to make various improvements to its operations including reducing average wait times for weekend and weekday service on various subway lines that are expected to serve 800,000 riders per day.

Housing was particularly contentious and most of Hochul’s housing proposals fell out of the 2023 Budget and Legislative Session, the FY’24 Enacted Budget saw nearly $400 million in additional funds appropriated to the Emergency Rental Assistance Program to support tenants and families, including New York City Housing Authority (NYCHA) residents and other public housing residents along with recipients of federal Section 8 vouchers. The Homeowner Protection Program and the Homeowner Stabilization Fund was funded at $90 million, modeled on the $10 million Buffalo East Side Homeowner Improvement Program.

The 2023 Legislative Session saw both Houses pass nearly 900 bills, including legislation to protect reproductive health care, support LGBTQ+ New Yorkers, reform New York’s election laws, advance the rights of workers, and protect the environment.

Read the full report below.