BCW Statement on Governor Hochul’s Proposed FY2027 Executive Budget

On Tuesday, Governor Kathy Hochul unveiled her FY 2027 $260 billion state budget proposal. It contained many of the recommendations that were presented in the Blueprint for New York that was released late last year and which the BCW worked collaboratively on along with the Business Council of New York State, the New York State Economic Development Council, more than 40 associations, and over 500 business leaders from across the state. This includes efforts to cut regulations, no new taxes and no one shots or gimmicks.

As part of the Governor’s “Let Them Build” agenda, she is proposing a series of landmark reforms to speed up housing and infrastructure projects and lower costs. This initiative will spur a series of common-sense reforms to New York’s State Environmental Quality Review Act (SEQRA) and executive actions to expedite critical categories of projects that have been consistently found to not have adverse environmental impacts. Together, these actions will allow projects that localities want to move forward and that will not harm the environment do so faster, while prioritizing smarter growth to ensure that the state continues to protect communities, preserve the environment, and conserve New York’s natural resources. This issue has been a long-term legislative priority for the BCW and we will be advocating for this proposal during our conversations with the Legislature.  This proposal, along with the Governor’s commitment to no new state tax increase aligns with the BCW’s objective of fostering a conducive economic environment for businesses. 

On the economic development front, the BCW applauds the Governor’s proposal for $200 million for the Downtown Revitalization Initiative; and $150 million for another round of the Regional Economic Development Council (REDC) program that has been very impactful in identifying transformative economic development projects in Westchester County and the regions throughout the state.  The BCW also supports the Governor’s proposed additional $250 million in capital funding to accelerate the construction of thousands of new affordable homes.

In addition, the BCW supports the Governor’s proposal to lower insurance costs, specifically with regards to cracking down on fraud and bad actors to lower vehicle insurance rates by reinvigorating the State’s Motor Vehicle Theft and Insurance Fraud Prevention Board, empowering it to redouble its efforts toward zealously investigating and prosecuting insurance fraud across the state.  

The BCW has long advocated for infrastructure funding as it is especially important that Westchester County have a strong, fiscally sound transportation network to serve as an important economic development tool for recruiting and retaining businesses in the county.  In this regard, the BCW appreciates the Governor’s FY 2027 proposal for $6 billion for the fifth year and final year of a record $34.4 billion DOT Capital Plan which includes $1.4 billion for local roads and bridges; as well as her commitment to transit including $8.6 billion in total operating aid for the Metropolitan Transportation Authority (MTA) and $1 billion in operating aid for Non-MTA Public Transit System.

We also appreciate the priority that the Governor is making in this year’s budget regarding child care The BCW has worked with the Governor and the Child Care Council of Westchester for many years on this issue and has continuously stressed the importance of it as an economic development tool. To this end, the BCW supports the Governor’s commitment to child care including $4.5 billion total statewide in child care and Pre-K services, including $1.7 billion in new investments statewide; over $3.2 billion in childcare vouchers statewide to address waitlists; and efforts to enhance and reform the Child and Dependent Care Credit, providing 230,000 filers with an average increase in benefit of $576.  The BCW looks forward to seeing how the state will work with Westchester County to expand child care services.

The BCW and BCW member Feeding Westchester have also consistently urged both the Governor and the Legislature to make feeding New Yorkers a top priority. In this regard, we applaud the Governor’s commitment to provide $66 million for the Hunger Prevention and Nutrition Assistance Program (HPNAP) to expand funding to the State’s network of regional food banks and emergency food providers;  $55 million for the Nourish NY Program; $10 million to combat food insecurity through NY PLATES, a new capital grant program for food pantries, food banks, and other hunger prevention organizations; upgrading New York’s EBT cards to secure chip-based technology that makes cards virtually impervious to mass skimming of Supplemental Nutrition Assistance Program (SNAP) benefits; and lastly, $395 million for year two of the Universal Free School Meals program. 

One item that we hope the Governor will revisit, and for which the BCW will advocate against, is her proposed tax on nicotine patches. Nicotine pouches contain no tobacco and involve no combustion, meaning they avoid the primary source of toxic exposure associated with cigarette smoking. For many adult smokers, these products serve as a substantially lowerrisk alternative and a means of an important transition tool. The BCW is concerned that a tax would disincentivize adult smokers from switching to these lower risk alternatives. Additionally, New York could realize an estimated $299 million in annual Medicaid savings if the smoking rate among adult Medicaid recipients decreased by only 1%, from 15.2% to 14.2%. These figures underscore how policies that support adult transitions away from cigarettes—not policies that make lowerrisk alternatives less accessible—can deliver enormous healthcare cost savings for New York taxpayers and businesses.

As we look forward to this year’s budget process and as the county’s largest business membership organization focusing on economic development and advocacy, the BCW will continue to be a resource for the Governor and the Legislature.  

Below please find a link to the Governor’s Budget Press Release which also contains a link to her budget briefing book.

https://www.governor.ny.gov/news/governor-hochul-unveils-highlights-fiscal-year-2027-executive-budget-stronger-safer-more

If you need any additional information, please contact John Ravitz at jravitz@thebcw.org or Andra Horsch at ahorsch@thebcw.org.