[NYAPRS Enews] NYAPRS Will Continue to Advocate for System Improvements during State Spending Freeze!

[Luke Sikinyi]

NYAPRS Note: Governor Hochul's administration has informed NYS agencies that their budgets for next year must be the same as this past budget year, meaning they will not receive any increases in overall funding. While New York State's current fiscal outlook is worse than expected, this will not stop us from pushing for the services and funding we know our community needs for New Yorkers to enter and maintain recovery from mental health, substance use, and trauma related challenges. NYAPRS will continue to be staunch advocates for recovery supports to improve services in the state. We will once again host regional forums throughout the state to hear directly from the people about what is most needed this year. NYS Office of Mental Health (OMH) Commissioner Ann Sullivan will host a Town Hall during the NYAPRS Annual Conference next week to discuss ongoing and upcoming initiatives and programs the state is undertaking to support more people in their recovery journeys. While the road ahead will be tough, NYAPRS is committed to fighting for rights and recovery in partnership with the New York recovery community and other stakeholders. We will continue to update you all about budget and legislative session issues. Stay on the lookout for announcements for regional forums in your area and other ways to join our advocacy efforts throughout the year. See below for more information about the current budget outlook for fiscal year 2024-2025.

New York Agencies Ordered to Freeze Spending in Budget Proposals amid Gap
By Seamus Lyman | NY State of Politics | September 21, 2023

New York state agencies are being ordered to freeze spending in their budget proposals for the next fiscal year as the state faces major budget gaps in the years ahead.

In a letter to agency commissioners Wednesday, New York state Budget Director Blake Washington Wednesday said budget requests should not exceed what was approved in this year's $229 billion budget. This is what's known as the annual "call letter" outlining the governor's priorities and any fiscal constraints.

"Changing economic winds pose a challenge to New York's financial position," Washington writes in the letter. "Extraordinary amounts of post-pandemic Federal fiscal stimulus have ended. The Federal Reserve tightened its monetary policy, and the robust tax collections fueled by market activity and prior year tax increases have subsided. As a consequence, our revenue forecasts have been revised downward, resulting in multi-year budget gaps."
The state Division of Budget is projecting budget gaps totaling $36 billion over the next three years.<https://url.avanan.click/v2/___https:/spectrumlocalnews.com/nys/central-ny/ny-state-of-politics/2023/06/12/new-york-s-budget-gaps-grow-to--36b-over-3-years___.YXAzOm55YXByczphOm86ZDY5YWZlNjc3OWU5MjZjZDRmMTUxMWFjY2M4NTEzMWU6NjozYmNjOjBhM2JiZDcwMzY3YWNiOTViNTAxM2JlMjFlNTk0NjdmNzdjZGY0NzliNDhlM2M2ODUzODRjY2E3Y2MxNWI3OTA6aDpU> Those break down to $9.1 billion next year, $13.9 billion for following year and $13.4 billion for the year after that. The gaps are $15 billion higher than previous projections and the Division of the Budget points to decreasing tax revenue and federal aid while spending increases.

The state budget is required to be balanced by law. Budget deficits fluctuate and are based on expectations of revenue and spending targets as they stand now. New York's reserve funds are up to $19.5 billion after investments over the last five years. However, Washington outlines Gov. Kathy Hochul does not want to raise taxes or rely on reserve funds.

"Acknowledging our fiscal constraints while ensuring fundamental public services and programs are preserved is the task ahead," Washington writes. "The road to a balanced budget might seem daunting, but I am confident that through sound decision-making, strategic investments, and fiscal discipline, we can continue to show the compassion, care, and leadership that New York is known for."

Agency budget requests are due Oct. 11. The governor will present a budget to the state legislature in January, kicking off weeks of hearings and negotiations before the final budget is due April 1.

https://nystateofpolitics.com/state-of-politics/new-york/politics/2023/09/21/new-york-agencies-ordered-to-freeze-spending-amid-budget-gap<https://url.avanan.click/v2/___https:/nystateofpolitics.com/state-of-politics/new-york/politics/2023/09/21/new-york-agencies-ordered-to-freeze-spending-amid-budget-gap___.YXAzOm55YXByczphOm86ZDY5YWZlNjc3OWU5MjZjZDRmMTUxMWFjY2M4NTEzMWU6NjoxNDY0OjQ4YzYwYmUxNzk2MTNjMzFmNzRmOWE5NjU0NDNhYWMxOTI4ZmU3NTliNzgxMjE1MmM3MjkzMWEzNDJiYWQxNTA6aDpU>


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