New York

Budget Cycle
Annual

Governor Submits Budget
Mid-January

Fiscal Year Begins
April 1

Governor Signs Budget
By April 1

Budget Links

FY2025 (enacted)
FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)

Enacted Budget – Fiscal Year 2025

New York Governor Kathy Hochul signed the state’s fiscal 2025 budget into law on April 22. The budget for fiscal 2025 calls for $239.2 billion in spending from all funds, a 1.8 percent annual increase, and $132.0 billion in state operating funds, a 2.8 percent increase over fiscal 2024, according to the Enacted Budget Financial Plan. General fund spending, including transfers, is expected to total $107.8 billion in fiscal 2025, a 7.6 percent increase over the prior year. All funds receipts, excluding the pass-through entity tax (PTET), are projected to total $235.8 billion, a 0.5 percent annual increase, while general fund receipts (also excluding PTET) are projected at $110.0 billion, a 5.7 percent increase. The state estimates a general fund ending balance of $48.5 billion (including the rainy day fund and other reserves), or $32.8 billion when excluding funds for monetary settlements and PTET.

The budget makes significant investments in housing supply and affordability, including a landmark deal to build more housing in New York City, new initiatives to spur homebuilding statewide, and $600 million in capital funding. The budget also makes major investments and reforms to improve public safety, combat retail theft and hate crimes, prevent gun violence and domestic violence, and reduce recidivism. To foster innovation, the budget invests in a variety of economic development initiatives and projects, including $275 million over 10 years to support Empire AI. For mental health, the budget increases youth mental health services, strengthens mental health care and support services for veterans, and provides greater resources for residents with serious mental illness. The enacted budget also makes investments in other key priorities including healthcare, public K-12 and higher education, modernizing infrastructure and supporting mass transit, environmental initiatives, supporting abortion access, and agriculture.

Enacted Budget Information
Fiscal Year 2025 Enacted Budget

Financial Plan

Governor’s Press Release

Proposed Budget - Fiscal Year 2025

On January 16, New York Governor Kathy Hochul presented her budget for fiscal 2025 calling for total state spending from all funds of $232.7 billion, a 0.5 percent increase compared to updated fiscal 2024 estimates. State operating funds (including general funds as well as state-funded special revenue funds and debt service funds) are expected to total $136.2 billion after adjusting for certain transactions, representing a 4.5 percent annual increase. General fund spending in fiscal 2025, which for New York begins on April 1, is recommended at $107.6 billion, reflecting a 4.0 percent annual increase, while federal operating aid is expected to decline 5.3 percent to total $84.6 billion. Receipts from all funds, excluding the pass-through entity tax (PTET), are expected to total $227.4 billion, a 1.9 percent decrease. General fund tax receipts are expected to increase 2.3 percent in fiscal 2025, while general fund revenue from all sources are estimated to increase 1.4 percent to total $106.5 billion. Excluding the PTET reserve and the reserve for extraordinary monetary settlements to fund existing commitments, the state is projected to end fiscal 2025 with a general fund cash balance of $28.9 billion, including rainy day reserves of $6.3 billion and $13.8 billion reserved for economic uncertainties.

Proposed Budget Highlights
The governor’s fiscal 2025 budget makes targeted investments to meet the needs of all residents, while ensuring the budget is balanced and bolsters state reserves. The budget includes various revenue actions, including expanding tax credits for farmers and the credit for Broadway productions; creating a tax credit for childcare creation and expansion; increasing the cigarette excise tax and prohibiting the sale of flavored tobacco products; and extending the temporary tax rate on those with business income over $5 million. Priority areas of investment include public safety, health care, mental health, education, economic development, climate action, housing, transportation, and the migrant crisis. Spending initiatives in these areas include, but are not limited to:

Public Safety

$347 million for programs to prevent and reduce gun violence.
$290 million to restore criminal justice system effectiveness, including community investment, crime prevention, law enforcement, prosecution and reentry services.
$120 million in victim assistance funding.
$40.2 million to address retail theft and $5 million for the Commercial Security Tax Credit to help businesses owners offset retail theft costs.
$40.8 million to reduce assaults with a focus on domestic violence.
$35 million for the next round of the Securing Communities Against Hate Crimes program.

Health Care

$35.5 billion for Medicaid, along with changes focused on the program’s long-term solvency.
$7.5 billion in funding over the next three years ($6 billion federal, $1.5 billion state) through a Section 1115 waiver to support efforts to advance health equity, reduce health disparities, and strengthen access to primary and behavioral health care across the state.
$315 million to provide health insurance subsidies for individuals up to 350 percent of the federal poverty line enrolled in Qualified Health Plans.

Mental Health

Increases state investment in mental health system to $4.8 billion (compared to $3.3 billion in 2022), including funds for new inpatient psychiatric beds, youth mental health counseling, supportive housing for people needing mental health services, mental health treatment reimbursement rate increases, new programs for unhoused individuals with mental illness, and helping people in the criminal justice system with mental health problems.

Education

$35.3 billion in total school aid, a 2.4 percent annual increase.
$10 million for evidence-based literacy instruction training.
$1.2 billion for SUNY and CUNY capital projects.
$207 million for SUNY and CUNY operations.

Economic Development

$150 million in new capital grants and $75 million in new Excelsior tax credits to fund projects coordinated and planned by Regional Economic Development Councils.
$100 million for another round of the Downtown Revitalization Initiative.
$100 million for New York Forward to support the state’s rural communities.
$58.5 million for tourism and advertising campaigns.
Up to $275 million in state funding (along with $125 million in private funds) over multiple years to support the new Empire AI Initiative.
Significant investments in additional statewide and regional economic development initiatives and capital projects.

Climate Action

$435 million for resiliency projects to protect communities from severe floods.
$160 million in NY SWIMS to address the disinvestment in swimming facilities and lifeguards in underserved communities and an additional $446 million to invest in state parks and pools.
$47 million to plant over 25 million trees across New York by 2033.

Housing

$500 million in capital funds dedicated to developing up to 15,000 housing units on state-owned property.
Require that localities receive Pro-Housing Community certification to access up to $650 million in state discretionary funding

Transportation

$100 million for the Pave our Potholes (POP) Program.
$61 million to move forward with the planning of the Interborough Express ($45 million) and the Second Avenue Subway extension ($16 million).

Migrant Crisis

Provides increased state support, totaling $2.4 billion, towards New York City’s efforts to manage migrant and asylum seeker crisis, including $500 million from state reserves intended for use during one-time emergencies.

Proposed Budget Information
Fiscal Year 2025 Budget Proposal

Governor’s Press Release