New York Gov. Kathy Hochul proposed a $233 billion fiscal 2025 budget that will make a one-time dip into the state's reserve to help New York City pay the costs incurred by a rising tide of migrants.
"I am proposing that we draw $500 million from state reserves that are intended for one-time emergencies like this," she said at a
"This will help manage the migrant crisis with a total of $2.4 billion," she said, noting the drawdown is a one-time only emergency withdrawal and won't affect the 15% level for state reserves she set previously. The proposal maintains record state reserves at more than $19 billion.
"I remain firmly committed to ensuring that our reserves do not drop below 15%," she said, "but I'm willing to use the excess generated by our sound investment practices."
New York City has borne the burden of sheltering over 69,00 migrants, Hochul said, noting the city is moving about 10,800 migrants a month out of the shelter system — even as 13,600 new migrants come to the city monthly.
"Since day one, I have said this is ultimately the responsibility of the federal government to address this crisis," and provide relief, she said. "We've been shouldering this burden for far too long."
The fiscal 2024 budget included $1.9 billion for the city for the migrant crisis and Hochul's executive budget proposal builds on this. Under the fiscal 2025 plan, the state will provide the city with an additional $2.4 billion to provide shelter and basic services to migrants and help with resettlement.
This new funding will support:
- Humanitarian aid for New York City, including short-term shelter services for individuals and families;
- Costs associated with operating humanitarian emergency response and relief centers at Creedmoor Psychiatric Center, Randall's Island, and Floyd Bennett Field;
- Legal and case management services to help asylum seekers file paperwork to receive work authorization;
- Programs to provide communicable disease testing, immunizations, and other health services;
- Programs to assist in relocation of individuals and families; and
- Expenses related to the deployment of the National Guard and other facets of the state's response.
State spending on behalf of New York City totals over $24.5 billion in the fiscal 2025 budget proposal. This includes $4 billion due to the state's takeover of local Medicaid growth expenses and over $13.3 billion in school aid.
The fiscal 2025 executive budget is up by 4.5%, or about $6 billion, from last year's adopted plan. It doesn't raise taxes or make cuts to programs or services.
The state's fiscal year begins April 1. Last year, the governor and Legislature came to an agreement on the budget for
In 2023, issuers across New York State ranked third in the nation for municipal bond issuance, falling from number one in 2022, selling $42.26 billion of debt last year, down from $49.9 billion in the prior year, according to Refinitiv.
The state's general obligation bonds are rated Aa1 by Moody's Investors Service and AA-plus by S&P Global Ratings, Fitch Ratings and Kroll Bond Rating Agency.
