Viewpoint: Hochul’s proposed $227B to make New York ‘more livable’

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Viewpoint: Hochul’s proposed $227B to make New York ‘more livable’

A government’s budget is policy made real, promises put into action. There is a lot to commend Gov. Kathy Hochul for what she has in her proposed $227 billion budget (balanced as required by state constitution). In remarks introducing the budget, she said it incorporates “unprecedented investments in areas that will make a positive impact in people’s lives, that’ll make the New York dream real, make it safer, more affordable, more livable.”

In the realm of public safety, Hochul is proposing $337 million to reduce gun violence, including investing in communities most under siege (crime analysis centers, data sharing, working with the nine-state coalition to stop the flow of illegal guns, targeting resources for youth employment, training and after-school programs), redeploying State Police to assist cities that seek help, investing $12.8 million to expand Community Stabilization Units (community policing) and revising bail reform laws.

Making communities safe also requires fixing the mental health system. She is proposing to spend $1 billion to transform care: 1,000 inpatient psychiatric beds, 150 new beds in state facilities, meaningful wraparound services and $10 million to expand school-based services. Insurance companies would be required to cover mental health services, including treating opioid addiction. The state is working jointly with federal and local partners to stop deadly drugs from coming into the communities. She proposes to build 3,500 residential units supported by intensive mental health services.

One of the most controversial proposals (especially raising hackles from suburban Republicans) is her plan to finally, actually address New York’s housing crisis. Her New York Housing Compact calls for creating 800,000 new homes over the new next decade, on top of last year’s $25 billion investment. to create 100,000 affordable housing units. She is setting a target for a 3 percent increase in housing stock in downstate communities and 1 percent upstate every three years. “It’s very doable, and we’ll work with our local partners,” said said. “No longer is failure an option. And this is not a one-size-fit-all approach.”

Parrying the attack that local governments would be giving up control, she noted that the plan allows for local governments to decide how they will meet these targets – perhaps redeveloping old office parks or changing zoning codes. The state will provide incentives, paid for out of a proposed $250 million infrastructure fund “because I know from my experience that’s often the barrier” – to pay for the sewers, the roads, the schools that redevelopment entails. In addition, localities can tap into a $20 million fund for planning assistance, since not every town has a planning department.

A big focus – for more than a decade – has been to encourage growth in the New York City metropolitan area through transit-oriented development that has transformed and revitalized many suburban downtowns (helped with the state’s $10 million Downtown Revitalization grants), at the same time giving these localities an expanded tax base, which gives relief on property taxes. And the more houses that are built, the bigger the housing supply, which lowers the cost of owning a home – so a win-win-win.

Hochul also is continuing her record investment in public education – upping last year’s $31 billion in school aid to $34.5 billion – the largest school aid increase ever.

To mitigate the affordability crisis that often keeps parents home from the workplace, Hochul proposes to increase investments in child care, increasing to an unprecedented $7.6 billion over the next four years, and easing eligibility to make 500,000 families eligible. She also seeks to make New York State’s 12 weeks of fully paid parental leave available to state employees (how is it that they don’t have it now?).

Thankfully, Hochul is also continuing to make climate change a priority, which she called “the greatest threat to our children and grandchildren.” She is proposing to implement a nation-leading Cap and Invest program and a $200 million fund to help low-income families insulate their homes, upgrade their appliances, get new heating systems. She will also draw upon $500 million in clean water infrastructure funding on top of the $4.2 billion Environmental Bond Act that voters approved.

The pandemic only underscored inadequacies of the state’s health care system, so she is proposing to double down on last year’s historic investment with an additional $1 billion to address health care needs and prepare for future public health emergencies. She proposes $500 million “to invest in transformative capital funding, help our hospitals, while being laser focused on underserved communities where the health outcomes are the poorest.” She is also proposing to establish a new health care technology program, expanding telehealth services.

Turning to economic development (jobs!), she said “we’re working to become the most worker-friendly and the most business-friendly.” She is proposing $1.3 billion in economic development investments to create the jobs of the future. Drawing on the success of attracting Micron, a global leader in semiconductor manufacturing that’s investing $100 billion over the next 20 years and will support 50,000 jobs, Hochul is proposing the first ever Office of Semiconductor Expansion, Management, and Integration. And for workers, she is proposing to tie the state’s minimum wage to inflation.

Another focus for economic development is public transit. Touting major improvements, including the Long Island Railroad’s Third Track and access to Grand Central Madison, as well as moving forward with the Second Avenue subway, the Interboro Express and perhaps most significantly a groundbreaking on the much needed Gateway Tunnel (thanks to Biden’s Bipartisan Infrastructure Act), she is proposing $9.1 billion for transformation investments.

Calling the MTA “the lifeblood for many New Yorkers,” Hochul is also proposing a “multi-faceted solution” to the MTA’s financial woes, including $400 million savings and efficiencies without cutting service. This includes reallocating some federal funding, increasing contributions from New York City, and in the long term earmarking a share of future casino revenues.

But in the second most controversial part of her budget plan, she is calling for a small increase from 0.34 percent to 0.5 percent in the existing payroll mobility tax.

“This is a pivotal moment for our state,” she declared. “If we want to make real progress for our people, we can.”

The state Assembly and Senate are holding 13 joint hearings on the proposed executive budget through March 1. These joint hearings will continue through March 1 and will be available for viewing on the Senate and Assembly websites.

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