Governor Kathy Hochul delivered her FY 2024 Executive Budget address on Wednesday, February 1, 2023, in the “Red Room” at the State Capitol in Albany. Her budget proposal totals $227 billion, a $5.4 billion increase (2.4%) over FY 2023. She reiterated her recent pledge not to raise income taxes this year.
Tax receipts have surged in recent months, resulting in a General Fund surplus of approximately $8.7 billion. More than half of the surplus will be used to accelerate deposits to “rainy day” reserves planned for FY 2024 ($2.4 billion) and FY 2025 ($2.9 billion).
Highlights of the 2024 Executive Budget proposal of historic and particular interest to NEAFA members include the following:
APPROPRIATIONS
PRO-DAIRY
Cornell University Core Program $1.213 million: The Executive Budget proposes level funding to the last Executive proposal but does not include the $250,000 legislative add adopted last year.
Dairy Profit Team $374,000: The Executive Budget proposal would provide level funding for this program.
Dairy Advancement Program $700,000: The Executive Budget proposal would provide level funding for this program.
FARM VIABILITY INSTITUTE
$1 million: The Executive Budget proposes level funding to the last Executive proposal but does not include the $850,000 legislative add adopted last year.
NY FarmNet
Cornell University Core Program $1 million: The Executive Budget proposal would provide level funding for this program.
Mental Health Initiative $400,000: The Executive Budget proposal would provide level funding for this program.
FARM LABOR SPECIALIST
Cornell University Farm Labor Specialist $202,000: The Executive Budget proposes level funding to the last Executive proposal but does not include the $199,000 legislative add adopted last year.
EDUCATION AND OUTREACH
Future Farmers of America $1 million: The Executive Budget proposal would provide level funding for this program.
Agricultural Educators $500,000: The Executive Budget proposal would provide level funding for this program.
Agriculture in the Classroom $500,000: The Executive Budget proposal would provide level funding for this program.
ENVIROMENTAL PROGRAMS
Agricultural Nonpoint Source Pollution Control $20 million: The Executive Budget proposal would provide level funding for this program.
Integrated Pest Management (IPM) $3 million: The Executive Budget proposal would provide level funding for this program.
$2 million for Agriculture non-point IPM.
$1 million for Community non-point IPM.
Pesticide Safety Education Program $250,000: The Executive Budget proposal would provide level funding for this program.
POLICY PROPOSALS
Modify the Investment Tax Credit for Farmers
The Executive Budget Proposal would make the investment tax credit (ITC) fully refundable for eligible farmers for five years, through December 31, 2027 and assist farmers with investments in their agri-enterprises. Additional changes would allow eligible farmers to receive relief that would enable them to continue to invest in their farming operations.
Cap and Invest Program & Climate Action Fund
The Executive Budget proposal would implement a “cap-and-invest” program to reduce greenhouse gas emissions from 1990 levels by 40% by 2030 and no less than 85% by 2050. This bill is part of the effort to meet the goals enacted in the Climate Leadership and Community Protection Act (CLCPA) to provide a framework for the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) to establish an “effective and affordable” cap-and-invest program.
Minimum Wage
The Executive Budget proposal would increase the minimum wage automatically each year to keep pace with inflation. After reaching $15 per hour, each region’s minimum wage would increase consistent with the year-over-year Consumer Price Index-W for the Northeast Region. The bill caps annual increases at three percent and provides that the minimum wage will not increase in the event of certain economic conditions, such as increases in the rate of unemployment.
Eliminating Food Scarcity
The Executive Budget proposal includes a grant program to target food scarcity. The proposal would provide $10 million in grant funding to aid retail food stores in creating new access points for markets, shorten supply chains, and promote equitable food distribution. This new program will work toward the establishment of farm markets, supermarkets, food cooperatives, and other similar retail food stores, along with supporting infrastructure in underserved communities and regions of the state.
Waste Reduction and Recycling Infrastructure Act
The Executive Budget proposal would seek to establish an extended producer responsibility program for packaging and paper products. The proposal would define the products and entities covered, establish minimum convenience standards, recycling rates, recovery rates, post-consumer recycled content rates, source reduction rates, and create a funding mechanism.
Farm to School Flexibility
The Executive Budget Proposal seeks to allow greater flexibility for local governments, including school district procurement by eliminating the restriction that limits purchasing from associations of more than ten producers or growers. The proposal would also remove the limits on the amounts of eggs, livestock, fish, dairy products (excluding milk), juice, grains, and species of fresh fruit and vegetables that could be purchased directly from New York State producers or growers, or associations of New York State producers or growers. It also removes the limits on the direct purchases of milk from licensed milk producers, regardless of the number of employees the processors employ. If adopted, this proposal would allow for purchase of food products, grown, produced or harvested in New York without a competitive process, so long as the amount is less than or equal to $250,000 and the purchases are reported.
Farm Fresh, Locally Grown Food
The Executive Budget proposal would appropriate $10 million to support an increase for reimbursement for school lunches from $0.06 per meal to $0.25 per meal for any school districts that purchases at least 30% of its food from New York farmers and growers.