An $845-million-infusion into economic and community development. Another $2.4 billion for healthcare capital infrastructure.
LARRY LEVY: ‘There are an awful lot of goodies in the budget for Long Island that we really need.’ Photo courtesy of Hofstra University
Funds for downtown revitalization and to promote tourism, and investment in childcare, renewable energy, arts and the film industry. Record funding for education. And $455 million for Belmont Racetrack’s redevelopment.
These are but some of the components of New York Gov. Kathy Hochul’s proposed $227 billion budget, which has displeased some Long Islanders because of what they say is insufficient funding for the region.
“I’m committed to doing everything in my power to make the Empire State a more affordable, more livable, safer place for all New Yorkers,” Hochul said in Albany last week. “We will make bold, transformative investments that lift up New Yorkers while maintaining solid fiscal footing in uncertain times.”
There are discussions to revise the state bail law, which would likely meet resistance from liberal state lawmakers. And there is proposed legislation to expand housing development, which is already meeting opposition from some on Long Island. (For more on housing, see p. 7.)
What happens next are weeks of intense negotiations with state legislative leaders looking to finalize the budget by April 1. Long Island leaders weighed in on how the plan might impact the economy.
“There are an awful lot of goodies in the budget for Long Island that we really need,”
said Larry Levy, the executive dean of the National Center for Suburban Studies at Hofstra University.
One big plus, he said, was the plan’s 10% increase in aid to public school districts, which, depending on how districts applied it, could have a “direct impact on property taxes” and would benefit “underserved communities, which made progress in leveling up to wealthier districts in what they can spend.”
Locally, energy, healthcare and infrastructure all stand to gain, said Tom Garry, the Long Island office managing partner for the law firm Harris Beach.
For example, Hochul proposed $5.5 billion to promote energy affordability, reduce emissions, and invest in clean air and water. And on Long Island, “with its big shoreline,” offshore wind energy projects are already moving forward, Garry said. Here, “municipalities are open to this,” and combined with initiatives on the federal level, there is opportunity to “modernize our grid, slowly but surely getting away from fossil fuels.”
Investment in healthcare is another win for the region, Garry said.
“Long Island is an aging population – we need our healthcare to be state-of-the-art,” he said. “It drives other aspects of the economy,” including housing and downtowns.
The support for increased sewer and water infrastructure would assist Nassau County’s aging suburbs and help Suffolk County get the sewers it needs. All of that “drives economic vitality,” Garry said.
Still, not everyone is bullish about the budget.
PARVIZ FARAHZAD: ‘I was hoping the state would give us another 5% to 10% to make it worthwhile for [film] productions to come [to Long Island]. That didn’t happen.’ Photo by Judy Walker
Take Parviz Farahzad, whose Grumman Studios at Port Washington North is near completion. He said that the plan to extend and expand the film credit program, which is aimed at supporting thousands of jobs and small businesses that depend on the film industry, falls short on Long Island.
“What has happened lately is that neighboring states – New Jersey, Connecticut and Massachusetts – jumped on the bandwagon and are offering much more incentives,” he said. “A lot of productions,” he added, “are going to other states.”
The proposed budget allows for an increase in the film tax credit base from 25% to 30%. But Farahzad said that rate used to be 30%, and that the proposed increase wouldn’t be enough for industry leaders on Long Island and Westchester as they compete with New York City.
“I was hoping the state would give us another 5% to 10% to make it worthwhile for productions just to come out,” he said. “That didn’t happen.”
He said that “there has to be a reason to come out here – money is the reason. People are not going to travel to the Island. The producers, directors and talents’ time is worth money. It has to be worthwhile to take the space.”
When it comes to getting their voices heard about the need for better incentives, film
TOM GARRY: Support for increased sewer and water infrastructure ‘drives economic vitality.’
Photo by Judy Walker
industry leaders in the borough’s surrounding counties are competing with the voices of the “studios in the city that have a big lobby.”
As for funding for the arts, “I was disappointed, and honestly a bit surprised by the amount allocated for arts and culture in the governor’s budget,” said Lauren Wagner, executive director of Long Island Arts Alliance.
LAUREN WAGNER: Contrary to what the state seems to believe, the arts sector has not fully recovered from the pandemic. Photo courtesy of Long Island Arts Alliance
“Last year, NYSCA [New York State Council on the Arts] was given $109 million after statewide arts advocacy groups like ArtNYS fought hard for much-needed rescue funding,” Wagner said. “That funding added about $60 million to the initial $40 million that was proposed for 2023.”
But now, Wagner said, “[s]eeing the plan for 2024, the governor has cut all rescue-funding, essentially bringing us back to where we had been for the last five-to-10 years. We have not yet been able to show the impact that last year’s budget increase has had on the sector, so the appropriation of $40 million for granting across the state seems to indicate that the governor believes that our sector has fully recovered from the pandemic, and I can assure you that it hasn’t.”
Wagner said that the “attempts to ‘rescue’ arts and culture through emergency funding have only provided temporary relief, demonstrating a systemic underestimation of the sector’s value. There has been very little growth with regard to the allocation for arts and culture through NYSCA over the last decade. It certainly has not kept up with demand, nor has it accounted for the amount of growth we have seen in the sector. We have over 700 eligible nonprofit organizations on Long Island alone that could benefit from NYSCA funding, and as we all try to build capacity and engage local artists to serve our communities, we once again see that our leaders are not recognizing the value of the work we do.”
Matt Cohen, the president and CEO of Long Island Association, the region’s largest business group saw big opportunities in the plan for Belmont.
MATT COHEN: ‘Modernizing Belmont Park is a once-in-a-generation opportunity to secure the future of horse racing for generations to come, while boosting our economy and creating jobs.’
Photo courtesy of Long Island Association
“Modernizing Belmont Park is a once-in-a-generation opportunity to secure the future of horse racing for generations to come, while boosting our economy and creating jobs,” Cohen told LIBN. “That’s why it’s a major priority on Long Island and we commend Gov. Hochul for recognizing this project’s importance by including it in her budget.”
Because of the New York Racing Association’s “hard work and planning, this project will provide a shot in the arm to the downstate economy, generating approximately $1 billion in one-time construction-related economic impact with hundreds of millions more to come annually,” he added. “We urge legislators to partner with the governor and include it in the final budget agreement.”
This year’s budget includes plans to create the “Technology Innovation Matching Program,” providing $6 million in matching grants for New York companies applying for SBIR (Small Business Innovation Research) and SBTT (Small Business Technology Transfer) funding.
STACEY SIKES: ‘Growing the state’s semiconductor and cell and gene therapy assets will create high-tech jobs of the future.’ Photo courtesy of Accelerate Long Island
“Innovation drives our economy, and the governor’s proposed support of tech startups through SBIR/STTR matching funds, tax incentives, university-based partnerships, and growing the state’s semiconductor and cell and gene therapy assets will create high-tech jobs of the future,” said Stacey Sikes, the chair of Accelerate Long Island, which aims to help regional startups with business expertise, investors and other support measures.
Levy said that “money for economic development should help the Island continue its transformation to a knowledge-based economy,” including in such sectors as technology, medicine and higher education.
There is money for childcare, where, Levy points out, Hochul “has a lot of credibility in this issue because she championed it,” he said. “If the legislature is going to add on to the budget, this is one area where you cannot spend enough money to meet demand.”
Hochul wants to make more revisions to the state’s bail law, which was changed in 2019 to do away with pretrial incarceration of people accused of most nonviolent offenses. The law has been tweaked since, but Republicans and some moderate Democrats continue to argue the rules have deprived judges of a tool they could use to hold people who are likely to commit new crimes.
Budget briefing documents say Hochul wants to give judges greater discretion by removing the “least restrictive means” standard to ensure a defendant returns to court, as opposed to considering how dangerous they appear. The governor said the current guidelines are not always clear and that she wants to provide “clarity for the judges.”
The Associated Press contributed to this report.
Adina Genn
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