New York

New York

Budget Cycle

Governor Submits Budget
Fiscal Year Begins
April 1 

Governor Signs Budget 
By April 1

Budget Links 

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

Proposed Budget - Fiscal Year 2023

On January 18, New York Governor Kathy Hochul released her proposed fiscal 2023 budget totaling $216.3 billion in all funds, reflecting a 1.6 percent increase, and $118.8 billion in state operating funds, a 3.1 percent increase. General funds at $95.5 billion, reflect a 5.3 percent increase, and federal operating aid at $78.9 billion, a 4.1 percent decrease. The budget is projected to be balanced through 2027. The largest expenditures are in education and health care, with $31.3 billion in school aid, an increase of 7.1 percent, and $26.5 billion in Medicaid spending, an increase of 6.3 percent. Reserves are projected to be $14 billion at the end of fiscal 2023, or 11.8 percent of state operating funds. All funds receipts at $221.1 billion reflect a 2.5 percent decrease from the fiscal 2022 estimated level. General fund receipts, including transfers from other funds, are estimated to total $92.6 billion in fiscal 2023, a decrease of 17.3 percent from fiscal 2022.

New York received $12.75 billion in State and Local Fiscal Recovery Funds from the American Rescue Plan Act (ARPA) in 2021 to offset revenue loss, ensure the continuation of essential services and assistance provided by government, and assist in the public health emergency response and recovery efforts. These funds are expected to be transferred to state funds over multiple years to support eligible uses and spending. Of the total, the calculated revenue loss is $9.9 billion on a modified accrual basis per the federal calculation and methodology.

Proposed Budget Highlights 
Major priorities in the proposed fiscal 2023 budget include healthcare, education, tax relief for small businesses and the middle class, the environment, housing, and public safety. Funding recommendations include:

  • $10 billion multi-year investment in healthcare
    • More than $4 billion to support wages and bonuses for healthcare workers, including $1.2 billion of state support for healthcare and mental hygiene worker retention bonuses, with up to $3,000 bonuses going to full-time workers who remain in their positions for one year.
    • $2.4 billion for healthcare capital infrastructure and improved lab capacity.
  • $1.6 billion foundation aid increase and a $466 million increase in all other school aid programs. 
  • $1.5 billion in SUNY and CUNY over the next five years and expansion of Tuition Assistance Program eligibility.  
  • Tax relief for small businesses and the middle class, including:
    • Acceleration of tax relief by providing the fully implemented reduced tax rates beginning in tax year 2023
    • A new capped refundable tax relief program targeting COVID-19-related expenses for small businesses
    • $1 billion to fund innovative small businesses and tax credit for COVID-related expenses
    • A homeowner tax rebate credit
  • A five-year $32.8 billion Department of Transportation capital plan to leverage federal funding to support major infrastructure projects throughout the state. 
  • $900 million in childcare stabilization grants to cover operational costs for 15,000 childcare providers statewide and increase eligibility for childcare subsidy from up to 200 percent of the federal poverty level to up to 300 percent of the federal poverty level over three years.
  • $4 billion for clean water, clean air, and green jobs environmental bond act and $500 million for offshore wind.    
  • A new five-year, $25 billion comprehensive housing plan.
  • $224 million to fund law enforcement and community-based gun violence initiatives.