Overview of Fiscal Year 2024 Executive vs Legislative Budget Proposals

The fiscal year 2024 Executive Budget limits spending growth to 2.0 percent, with new spending concentrated in Medicaid and School Aid. In contrast, the Assembly proposes budget growth of 5.9 percent, reflecting additional investments in the MTA, SUNY and CUNY, and assistance for low-income renters, paid for through increased taxes on multimillionaires and corporations.

Both budgets are balanced and rely on conservative projections of spending and revenues over the next four years. Projections of budget gaps starting in fiscal year 2025 do not indicate a structural imbalance or impending deficit, but rather reflect intentionally conservative projections that ensure fiscal stability. By 2027, however, the state will start to face fiscal cliffs resulting from the expiration of current corporate and personal income tax rates. To avoid these fiscal cliffs, and to ensure fiscal stability, FPI recommends making these tax rates permanent.