NYS Governor Hochul Delivers 2023 State of the State Address

Clients and Friends,

On January 10, 2023, Governor Kathy Hochul delivered her second State of the State address, outlining her policy and fiscal agenda for the upcoming year. Please find attached Governor Hochul’s 2023 State of the State book and press release.

The address highlighted the Governor’s historic win in November as the first elected female Governor of the State of New York, and her first State of the State Address in the Assembly Chamber that was widely attended by legislators and guests, indicating that Albany is back to conducting its government work in person following several years of COVID protocols and hybrid legislative sessions. In her address, Governor Hochul called for a number of significant investments and policy changes, including but not limited to improvements to bail laws eliminating a “least restrictive” standard for serious crimes; an investment of more than $1 billion in New York’s mental health resources; establishing the new “Future of Health Care” Commission to provide ongoing strategic guidance for the transformation of the health care system; the creation of the New York Housing Compact, which includes a number of policy proposals to build 800,000 new homes across the State; indexing the state’s minimum wage to keep pace with inflation; $35.2 million in new funding to support cybersecurity enhancements statewide; the creation of GO SEMI to oversee Micron’s $100 billion investment for a new megafab in Central New York; and the Waste Reduction and Recycling Infrastructure Act, which would require producer recycling.

Outlined below are the proposals that were identified as the Governor’s State of the State priorities for State Fiscal Year 2023–24, which are described in greater detail in the 2023 State of the State book. We expect that some of these proposals may be implemented administratively, but others will be pursued through legislation or as part of the Governor’s budget proposal, which is expected to be released on or before February 1.

After Governor Hochul submits her Executive Budget, the State Legislature will hold legislative hearings on the proposed budget in February, followed by the Governor’s proposal of 21-day and 30-day amendments to her budget, the State Legislature’s release of its One-House budget proposals by mid-March, and final budget passage around April 1.

If you have any questions regarding these proposals, please do not hesitate to reach out to any member of the Manatt team at 518.431.6700.

Proposals in Governor Hochul’s 2023 State of the State Agenda:

Building 800,000 New Homes: The New York Housing Compact

• Set Goals for New Home Construction Across the State
• Facilitate Housing Approval When Localities Do Not Meet Goals
• Encourage New Housing Near Transit
• Provide $250 Million to Support Planning and Infrastructure Needs
• Establish a Statewide Database to Promote Transparency
• Remove Obstacles to Housing Approvals
• Give the City of New York the Flexibility to Increase Residential Capacity
• Create Greater Opportunities to Convert Office Spaces to Residential Housing
• Authorize the City of New York to Legalize Basement Apartments
• Offer Critical Incentives to Build and Rehabilitate Housing
• Address Childhood Lead Poisoning in High-Risk Areas Outside of New York City
• Support Homeowners in High-Need Communities of Color
• Expand the Tenant Protection Unit
• Reclaim Vacant and Abandoned Homes
• Include Child Care in New Residential Construction
• Create a Housing Planning Office

Fixing the Continuum of Care for Mental Health

• Expand Insurance Coverage for Mental Health Services
• Expand Mental Health Services for School-Aged Children
• Increase Operational Capacity for Inpatient Psychiatric Treatment by 1,000 Beds
• Improve Admissions and Discharge Planning and Establish Systemic Accountability
• Dramatically Expand Outpatient Services
• Create 3,500 New Housing Units for Individuals With Mental Illness

Keeping New Yorkers Safe

• Double Investment in Alternatives to Incarceration
• Triple Investment in Reentry Services to Improve Public Safety
• Expand the State’s Gun Involved Violence Elimination Program
• Rebuild the State Police With a Targeted Focus on Fighting Serious Crimes
  • Launch an Unprecedented Four New State Police Academy Classes
  • Expand Community Stabilization Units to as Many as 25 Communities
  • Increase NYSP Participation on Federal Task Forces to Combat Violent Crime
• Expand the Work of Crime Analysis Centers and Include New York City
• Hire Hundreds of New Prosecutors Around the State
• Provide Continued Funding for Discovery Reform
• Make Improvements to the State’s Bail Laws
• Reduce Gun Violence and Violent Crime Among Individuals Under Parole Supervision
• Combat the Flow of Fentanyl Into Our Communities
• Stabilize Fire Service Statewide to Improve Emergency Response
• Counter Cyber Threats

Building a Health Care System for New York’s Future

a) Transform How We Pay for and Deliver Care

• Establish a Commission on the Future of Health Care
• Provide Transformative Health Care Capital Funding
• Establish a New Health Care Technology Capital Program
• Reform Traveling Nurse Agency Staffing Practices
• Allow Health Care Providers to Do More
• Reform Approval Processes of Health Care Projects

b) Strengthen the Foundation

• Expand Medicaid Coverage of Preventive Health Services
• Expand the Medicaid Buy-in Program for New Yorkers With Disabilities
• Improve Essential Plan Coverage
• Protect New Yorkers From Medical Debt and Other Burdensome Medical Costs
• Expand Access to Primary Care
• Revitalize Emergency Medical Services and Medical Transportation
• Ensure Access to Aging Services and High-Quality Long-Term Care
• Lead the Way for a Tobacco-Free Generation
• Save Lives Through Treatment of Opioid Addiction
• End Preventable Epidemics

c) Prepare for Future Emergencies

• Modernize Our Health Reporting Systems
• Rebuild the Wadsworth Laboratories
• Strengthen New York’s Public Health Emergency Readiness Capacity

Safeguarding Our Climate and Environmental Future

• Meet New York’s Climate Goals With a “Cap-and-Invest” Program That Prioritizes Affordability
• Make Energy More Affordable
• Make Buildings More Sustainable
• Advance Transportation Electrification
• Ensure a Just Energy Transition
• Reduce Waste and Invest in Local Recycling Programs
• Invest in Critical Water Quality Infrastructure
• Clean Up “Forever” Chemicals
• Make Our Parks Energy-Independent

Helping Workers Keep Up With the Cost of Living

• Index the Minimum Wage

Providing High-Quality Education

• Make Historic New Investments in Public Education
• Continue Major Commitment to Prekindergarten Expansion
• Establish High-Impact Tutoring Programs Across the State to Address Learning Loss
• Create New Early College High School and P-TECH Programs
• Create a Robust High School-College-Workforce Pipeline
• Directly Admit All New York Students to Their Local Community Colleges
• Initiate a Cascading Admissions Pilot to Ensure That Every Student Has a Place at SUNY
• Provide for Reasonable Tuition Flexibility Throughout CUNY and SUNY
• Establish a State Matching Fund for Endowment Contributions
• Provide Funding for SUNY’s Transformation

Attracting and Growing New York State Businesses

• Modernize and Streamline the State’s Training and Employment Infrastructure
• Match Federal Technology Innovation Funding
• Invest in Cell and Gene Therapy
• Establish the Office of Semiconductor Expansion, Management and Integration
• Improve the Excelsior Program to Attract Businesses and Jobs to New York State
• Establish Minority and Women’s Business Enterprise Certification Reciprocity
• Take a Truly Statewide Approach to Economic Development Near Campuses
• Establish a New State Initiative to Focus on Supply Chain Resiliency

Growing New York’s Agricultural Sector

• Use State Purchasing Power to Bolster Demand for NY Agriculture
• Create a Food Supply Workforce Pipeline
• Make the Investment Tax Credit Refundable
• Support “Scratch” Cooking Facilities for School Food
• Expand Urban Agriculture Infrastructure and Community Gardens
• Provide Grant Funding to Expand Food Access
• Increase Food Manufacturing

Lifting Up All New Yorkers

• Protect Reproductive Rights and Access
• Increase Reimbursement Rates for Reproductive Health Providers
• Implement Over-the-Counter Contraception Access
• Safeguard Abortion Access Through Data Privacy Protections
• Ensure Abortion Access at Public College Campuses
• Enact the Equal Rights Amendment
• Modernize Gender-Based Violence Policies and Procedures
• Reinvigorate the Interagency Coordinating Council for Services to Persons Who Are Deaf, Deafblind or Hard of Hearing
• Connect People With Disabilities to Inclusive Internships
• Designate New York as a Model Employer for People With Disabilities
• Increase Legal Services Support for the Office of New Americans
• Provide Funding for Refugee Resettlement Programs
• Support Retraining for Immigrants With Experience in Specific Skilled Professions
• Create Housing for Older LGBTQ+ New Yorkers
• Protect New Yorkers From Predatory Banking Fees
• Increase Access to Education for Public Assistance Recipients
• Launch Mobile Veterans Service Centers
• Improve Veteran and Military Cultural Competency in Supportive Housing
• Expand the Fresh Connect Program to Fight Food Insecurity

Building a Strong and Equitable Child Care System

• Streamline and Centralize the Application for Child Care Assistance
• Raise Eligibility to the Maximum Allowed Under Federal Law
• Expedite Enrollment for Families Receiving Other Benefits
• Rationalize Eligibility Requirements Across All Counties
• Establish a Workforce Retention Grant Program
• Pilot a New York State Employer-Supported Child Care Program
• Adopt a Statewide Business Income Tax Credit for Child Care
• Create a Business Navigator Program

Prioritizing Transportation Safety, Equity and Efficiency

• Secure the MTA’s Future
• Make the MTA’s “City Ticket” Available 24/7
• Move Forward on Light Rail Option for the Interborough Express
• Expand the EV Charging Infrastructure
• Improve Bus Reliability
• Allow New York City to Lower Its Speed Limit
• Spur Transportation Innovation Upstate
• Take High-Risk Drivers off the Road
• Empower the Department of Transportation to Seize Dangerous Vehicles
• Stop Secondary Crashes
• Close the DWI Loophole

Improving State Government: The Customer Experience

• Make Customer Experience and Benefits Participation a State Priority
• Simplify the Child Care Assistance Application Process
• Improve the Client Experience of Food Benefits for Women, Infants and Children
• Make It Easier to Obtain Tax Credits
• Save Time for Residents and State Workers With E-Signature Technology
• Lower Call Wait Times and Reduce Reliance on Phone Calls
• Launch “One ID for New York State” to Improve Digital Access

Improving State Government: Agency Operations

• Rebuild the Public Sector Workforce
• Expand Access to Paid Parental Leave
• Replace the State’s Paper-Based Procurement Process With an eProcurement System
• Create the Small Business 24/7 Portal
• Streamline LLC, LLP and LP Formation
• Make It Easier for Code Officials to Work in New York
• Eliminate Technical Filing Requirements for Municipalities
• Provide Equity and Opportunity in Cosmetology
• Reduce Paperwork for Condominium Declarations
• Rewrite the Alcohol and Beverage Control Law on a Policy-Neutral Basis