Civic, elected leaders react to Hochul budget

PLATTSBURGH | Local leaders are reviewing Gov. Kathy Hochul's Executive Budget for 2024-25, eyeing its narrow edge to balance spending in a tight budget year. At the New York State Association of Counties, President Daniel P. McCoy called it a positive step forward that delivers on some county government-related priorities. "First and foremost, there do not appear to be any new unfunded mandates, which have burdened local taxpayers unnecessarily for decades," McCoy said in a statement. "The budget also appears to finally enable counties to collect revenue that is owed but remains uncollected from vacation rental platforms like Airbnb and VRBO. This has been a priority for counties to close this loophole and bring parity amongst the industry." McCoy said the counties association is encouraged by a $135 million item that seeks to partner with local governments to strengthen emergency communications systems and infrastructure. "In terms of the over $1 billion in federal Medicaid funds that are still owed to counties and New York City, we remain committed to working with the governor and Legislature to find a resolution to this." At the North Country Chamber of Commerce, President Garry Douglas said they welcome Hochul's commitment to close a budget gap without raising taxes. "Tax increases would only reduce future state revenue by further encouraging earnings and business to leave the state," Douglas said. "At the same time, we welcome the renewed commitment to investments that will assist our region, including $82.5 million in new capital investments in the sports and recreation facilities of ORDA, ensuring that they stay in world class condition. Douglas said the regional chamber welcomes another round of funding for economic development through the Regional Economic Development Council and another $100 million round of the Downtown Revitalization Initiative (DRI). Continuation of RESTORE NY and a fresh investment of $100 million for the FAST NY Program, he said, will benefit Clinton County, as the former Clinton County airport side is ready to provide sites for industrial development. The chamber is also keeping a close eye this session on the encouragement of affordable housing development across the state, including in the Adirondacks. Hochul removed state zoning demands in favor of a "carrot" that ties municipal (village, town, city) housing growth to state incentive programs, such as the DRI. "We foresee a lot of conversation coming up within the Legislature and with the governor in the coming weeks regarding details and we will be joined with our Adirondack and North Country economic partners in the encouragement of approaches and tools most likely to work in our unique region," Douglas said. Sen. Dan Stec said he will review the budget in more detail in the coming days. "But after watching her presentation and an initial reading of the plan, here's what stands out. I was glad to hear the governor acknowledge that our state has a looming budget deficit and that New York has a robust reserve fund, but ultimately this budget plan does nothing to address that impending problem. "Combined with an acknowledged $6 billion in lost tax receipts due to our state's ongoing outmigration woes, and despite some fuzzy math that shows a budget surplus instead of an anticipated deficit, this is ultimately a costly proposal that does nothing to alleviate New York's long-term financial difficulties and right the ship going forward." Stec said the $2.4 billion for the migrant crisis in the city is the most glaring item in the spending plan. On Jan. 16, Hochul said the funding will be used to provide temporary housing and process working papers for migrants, most of whom are asylum seekers escaping violence and dangerous leaders in Central and South America. "I'm particularly concerned by the fact that $500 million of this is coming from the state's reserve fund," Stec said. "This is aid that should be going to legal residents and taxpayers, whether that means tax relief to combat rising costs, assist our struggling nursing homes or economic development initiatives." MEDICAID Medicaid spending and reimbursement rates are seemingly at cross purposes. During the presentation, the governor acknowledged that the state went more than $1 billion over budget with Medicaid spending in the last fiscal year, Stec said. Hochul talked at length about what drove costs of Medicaid up, citing numbers of state residents who gained healthcare coverage during the COVID-19 pandemic and stayed with it. The other major cost driver, the governor said, is Managed Long Term Care (MLTC), which is rising with an aging population. "While it was good to hear the governor acknowledge the enormous costs associated with our Medicaid system, I did not hear anything in her plan that would substantively address it and lower costs for both state and local governments." Assemblyman Billy Jones on Jan. 17 announced legislation to increase Medicaid reimbursement rates to make sure "older adults across the North Country have the right to age with dignity." In a statement made with Clinton County care providers, Jones said they "need to make sure that our nursing homes have the resources they need to treat their residents. I have visited nursing homes across the North Country and have seen firsthand that they are doing their best with the resources they receive. "The state needs to provide more funding for these services which includes increasing reimbursement rates and rate rebasing for nursing homes, as outlined in A5905 which I proudly cosponsor. "The state also has a responsibility to provide funding to help nursing homes hire more staff and mitigate the workforce shortage that is causing too many New Yorkers to not receive the healthcare they desperately need." PRISON CLOSURE Jones said he wanted to see more in the governor's budget about how state investments impact the North Country. "Her proposal keeps education funding stable, but we need details about how it'll address the needs of local school districts. It also includes bold ideas for economic development across the state, but I need to see how this will affect the North Country and the communities within the Adirondacks. "However, I'm disappointed and concerned by the proposal to shut down correctional facilities and how it'll negatively affect communities like ours who depend on them." As part of her budget, Gov. Hochul seeks approval for legislation to close up to five state correctional facilities with 90-day notice. No prisons are named specifically. But officials at the New York State Correctional Officers & Police Benevolent Association (NYSCOPBA) read the notice as impending closure for more prisons. "NYSCOPBA is deeply concerned that closures will exacerbate prison violence, cause relocated staff to leave service through resignation and retirement, and further the cycle of unsustainable staff attrition and prison violence," the union said in a statement. Assaults on staff increased 13.4 percent in 2023, following a 25 percent increase the previous year when the HALT Act went into effect, union officials said, citing DOCCS data. "Incarcerated individual assaults increased a staggering 41.5 percent in 2023, followed by a 34 percent increase in 2022. Staff cannot effectively protect themselves or incarcerated individuals at this rate. "Continuous mandates are straining members' physical and mental health, their families, and their quality of life. Members are burning out at alarming rates," NYSCOPBA President Chris Summers said. "How can the State of New York demand that our members continue working in these conditions and have the mental and physical ability to keep incarcerated individuals and staff safe? Members need relief." ENVIRONMENTAL SPENDING Hochul's budget holds the Environmental Protection Fund (EPF) steady at $400 million. Erin McGrath, senior policy manager for the National Audubon Society's New York State office said EPF and the Clean Water Infrastructure Act are solid investments that provide good-paying jobs, drive economic growth, and protect vulnerable wildlife and their habitats throughout New York. "While we are glad to see Governor Hochul's commitment to providing adequate environmental funding, we are disappointed that her proposed language would allow funds from the EPF to be spent on staffing for state agencies," McGrath said in a news release. "We are looking forward to working with the governor and Legislature to find a solution that maintains EPF funding and also allows for adequate staffing." Audubon was also glad to see the youth hunting pilot program would be made permanent to help maintain hunting as an effective tool for managing the impact of deer on forests. Hochul's Executive Budget is the starting point for budget building. The state Assembly and Senate will begin working on their counterpart spending plan. The finished product is due by April 1. On Wednesday, Jan. 17, Senate Finance Committee Chair Liz Krueger and Assembly Ways and Means Committee Chair Helene E. Weinstein announced the joint legislative hearing schedule on the State Fiscal Year (SFY) 2024-25 Executive Budget Proposal. The hearings start Jan. 23 and end on Feb, 14 and will be live cast on the state Senate and Assembly web pages: nysenate.gov and nyassembly.gov/av/

Signup for our newsletter

Civic, elected leaders react to Hochul budget

COMPANY

CUSTOMER SUPPORT

SUBMISSION FORMS

BEYOND THE NEWS