OMB Director Solomon: Significant state aid package from Albany
Solomon thanks Governor Hochul and legislative leaders for $383 million in foundation aid, corporate tax decoupling generating $700 million, a $1.5 billion commitment including youth programming and hospital funding, and approximately $4 billion total through direct aid, authorizations, and new revenue.
Next, I would like to express my deep gratitude to Governor Hochul, Majority Leader Stuart Cousins, Speaker Hastie, and members in both houses
for supporting the significant package of state aid that helped address our budget challenges.
I would also like to thank you, Speaker Menon, and Chair Lee and the entire Council for your advocacy on behalf of additional resources for the city.
The Governor's executive budget included an additional $383 million in foundation aid and a provision to allow the city to decouple
from certain corporate tax cuts that have been included in H.R.
1 that will generate approximately $700 million in fiscal year 2027.
State support continued after the governor's executive budget with a $1.5 billion commitment from the governor on the day before we released our preliminary budget.
That included $500 million in one-time unrestricted aid, a recurring restoration of cuts and cost shifts, including $300 million per year on youth programming, $150 million
per year to reverse the sales tax intercept for distressed hospitals, and $60 million to reverse lower reimbursement rates for public health funding.
An additional $97 million in school aid was also realized.
Finally, the enacted state budget included approximately $4 billion more through a mix of direct aid, such as restoring the state share of line-of-duty survivor benefits, state authorizations,
such as a more flexible schedule for class-size compliance, and new revenue from the state's first pied-à-terre tax for non-primary resident homes valued at over $5 million.