Proposed Budget Highlights
Major priorities in the proposed fiscal 2023 budget include property tax relief, school funding, pension contributions, and affordable housing. Funding recommendations include:
- Approximately $900 million in direct property tax relief to nearly 1.8 million middle and working-class and senior households under the ANCHOR Property Tax Relief Program.
- No new taxes or fees, and a year of fee holidays for drivers renewing their licenses, certain health care professionals applying for or renewing their licenses, couples getting married, and residents visiting state parks.
- Increasing K-12 formula aid funding by $650 million and an additional $68 million for preschool education aid.
- Making a full pension payment of $6.82 billion, and providing an additional $1.3 billion to reduce and avoid debt.
- $305 million in American Rescue Plan Act (ARPA) funds to create the Affordable Housing Production Fund which will help create an estimated 3,300 new affordable housing units.
- $430 million in funds for school construction, capital maintenance, and emergent needs.
- Nearly $30 million investment to meet the Electric Vehicle Act’s mandate of a 100 percent electric state fleet by 2035.
- Nearly $20 million in state and federal funds to implement the Statewide Universal Newborn Home Nurse Visitation program.
- Adding $11 million on the "Cover All Kids" health care program to give access to uninsured children.
American Rescue Plan Act
The state received $6.2 billion from the ARPA’s State Fiscal Recovery Fund in 2021 and has allocated funds for over 20 multi-year programs including the Eviction Prevention Program, public health preparedness, extended special education, and small business assistance initiatives. The administration is implementing and planning for transformative, one-time investments in people, communities, and infrastructure for fiscal 2022 and fiscal 2023 and broadly expects to spend $2 billion on each of these overarching categories.