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Governor Hochul Releases SFY 2025 Executive Budget

Categories: New York State

Governor Hochul Releases SFY 2025 Executive Budget image

01.17.2024

The Governor released the SFY 2025 Executive Budget on January 16th, totaling $233 billion (a 4.5% increase in spending). The Network is continuing to review the details and will follow up as any additional information is revealed.

Existing Programs

New York State Supportive Housing Program (NYSSHP)
Since 1987, NYSSHP funds services for over 20,000 supportive housing units across the State. Along with Solutions to End Homelessness Program (STEHP) and the Operational Support for AIDS Housing (OSAH) program, NYSSHP is funded via OTDA’s Homeless Housing Prevention Services Program. The Executive Budget funds all three programs at $53.6 million, a $2.8 million increase over least year (5.5%).

A Cost of Living Adjustment (COLA)
The Executive Budget includes a 1.5% COLA to some behavioral health and human services programs at OMH, OASAS, OPWDD, OCFS, OTDA, and SOFA in FY 2025, building on last year’s 4%. As in prior years, the New York State Supportive Housing Program (NYSSHP), funded through OTDA, is not included in the COLA.

Empire State Supportive Housing Initiative (ESSHI)
ESSHI is the State’s commitment to create 20,000 units of supportive housing over 15 years and is currently in its eighth year. The Executive Budget appropriates $210 million for ESSHI services and operating, which is level funding over last year. This appears to be sufficient funding for all existing programs and those coming online next year at the current $25,000 rate.

Five-Year Housing Plan
The Executive Budget continues investments in year three of the five-year affordable housing plan, which includes the Supportive Housing Opportunity Program, Supportive Housing Preservation Program, and other capital funding in the Multifamily programs.

The Low Income Housing Trust Fund is flat-funded at $44.2 million.

Homeless Housing Assistance Program (HHAP)
OTDA’s HHAP provides capital funding for supportive housing and shelters across the state. The budget proposed $128 million, which is level funding over last year.

Mental Health Investments
The Executive Budget continues last year’s $1 billion investment in mental health programs, including 3,500 new housing units, 1,500 of which are permanent supportive housing.

OMH Capital Improvement Fund
The OMH Capital Budget includes the annual $60 million for capital development and property acquisition construction and rehabilitation of existing facilities and $25 million for predevelopment costs.

OMH Supported Housing
Building on prior commitments to fund actual costs for mental health housing, referred to as “property pass-through,” the Executive Budget includes $43 million scattered housing in order to account for rising rents.

New Proposals

Preventing Insurance Discrimination in Affordable Housing
The Executive Budget includes proposed Article VII language to amend the insurance law to prohibit insurance carriers from inquiring or considering tenants’ source of income or the existence of affordable housing programs in the decision to issue or continue insurance for real property. The proposed bill would also make it illegal to increase insurance premiums on the basis of tenants’ source of income or the existence of affordable housing programs.

Improving Mental Health Admission and Discharge Decisions by Hospitals
OMH and DOH will codify recent guidance to hospitals to provide better mental health risk assessments and screenings and ensure coordination with community-based services are taking place. The Executive Budget includes $7 million in funding to expand surveillance and regulatory compliance activities toward this effort.

Mental Health Services and the Criminal Legal System
The Executive Budget includes various proposals to provide additional mental health support for people involved in the criminal legal system. $6.2 million is proposed for mental health specialists and peers in mental health courts, $2.8 million to provide housing and supports to people with mental illness experiencing homelessness and/or involved in the criminal legal system, and $9.6 million to expand Forensic Assertive Community Treatment Teams (FACT).  

Mental Health Workforce Strategies
The Governor’s Budget Briefing Book outlines proposed strategies for bolstering the mental health workforce, including job marketing, creating a job bank, a new Behavioral Health Fellowship Program, resources for rural communities, and developing new opportunities for credentialing mental health paraprofessionals.

Developing State-Owned Sites for Affordable Housing
Earlier this year, in Executive Order 30, Governor Hochul proposed to develop 15,000 new units of housing on State-owned sites. The Executive Budget includes $250 million in capital (first installment of $500 million total) to support site preparation, improvements, and infrastructure to support this effort.

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