Final State Budget Summary

Late Wednesday, state lawmakers approved a $229 billion state budget, nearly a month after the April 1 deadline. Much of the delay in a final budget plan was due to disagreements in the Legislature over Gov. Kathy Hochul’s Housing Compact proposal to boost housing construction, changes to the state’s bail reform laws, and consideration of additional tenant protections, including “good cause” eviction. In the end, all housing policy was excluded from the budget, raising the possibility that the issue of housing and tenant protections could be taken back up before the Legislature adjourns in June.
 
The final budget includes a new mandate on all new construction to be all-electric beginning December 31, 2025, for buildings seven stories or less, and larger buildings by December 31, 2028. Other major items in this year’s budget include modifications to the state’s bail reform laws to allow judges more discretion to set bail in violent cases, an increase in the state’s minimum wage to $17/hour downstate and $16/hour upstate by 2026 and then annually indexed to inflation, a new lead paint certification process for rentals outside of NYC, and allowing the revival of 14 charter schools in NYC. NYSAR will monitor expected regulatory proposals to implement the new electrification and lead certification laws and will provide our perspective during any public comment periods. For a summary of this year’s state budget, click here.