New York nonprofits have mixed reactions to Hochul’s $237 million state budget

The approved $237 billion state budget has garnered widespread reactions from nonprofits across New York. Nearly three weeks late on April 20, Gov. Kathy Hochul and the Legislature passed a budget that has drawn criticism from organizations specializing in housing issues and immigration, with some saying the budget falls short of what is needed to serve their communities. Other organizations, particularly nonprofits helping low-income New Yorkers said they saw the spending plan as a win.

The following roundups summarize reactions on several provisions in the spending plan fiscal year 2024. 

Human Services

Overall, nonprofit organizations, such as FPWA and Nonprofit Westchester, said they are frustrated with a 2.84% cost of living adjustment, which falls short of the 3.2% that was asked for. Organizations say the 3.2% adjustment would have made a significant difference in addressing the needs of the nonprofit workforce, the majority of which is made up of women and people of color. 

“Nonprofits continue to strain under enormous demand for their services, and their employees often struggle to get ahead on government-sanctioned, poverty-level wages,” Michelle Jackson, executive director of the Human Services Council said in a press statement. “This investment, while significant, falls short of [what] the Just Pay [campaign said] essential workers deserve. It also complicates an already overly confusing and burdensome process that will delay money getting into the pockets of workers.”

Housing

The budget’s housing package includes new tenant protections and incentives for real estate developers to build affordable housing. 

However, nonprofits such as VOCAL-NY and New Destiny Housing said they are disappointed with the exclusion of the Housing Access Voucher Program, a $250 million voucher program that would help New Yorkers who are homeless leave the shelter system and assist at-risk families in paying their rent. The Housing Access Voucher Program received the support of more than 50 housing groups across New York, who went on to form the coalition Housing Access New York. 

“The housing plan currently being drafted by New York State lawmakers is far from a victory for progressives, and declaring it as such only highlights how out of touch Governor Hochul’s administration is with the needs of everyday New Yorkers,” said Joseph Loonam, VOCAL-NY Housing Campaign coordinator, in a statement. “If lawmakers, tenants, and people experiencing homelessness from upstate and downstate think this housing deal is bad, it doesn’t make it a good compromise – it makes it bad policy.”

“We also condemn in the strongest terms the Legislature and Governor’s decision to deny

funding for the establishment of the Housing Access Voucher Program,” said New Destiny Housing in a statement.  With the requested $250 million in funding, HAVP would have provided up to 13,000 vouchers and helped as many as 30,000 New Yorkers leave shelter or avoid the trauma of homelessness,” 

Immigration

With New York City struggling to keep up with the demands of the migrant influx, immigrant legal service providers had called for a $150 million investment to help support. However, the budget fell short of this investment, allocating $64.2 million for immigrant legal services, including legal representation for families at risk of deportation and assistance for immigrants seeking asylum. Immigrant legal services organizations are also advocating for the passage of the Access to Representation Act, which would codify the right to legal representation in immigration cases in the law.

“As people increasingly face the threat of deportation and family separation, $64.2 million for immigrant legal services fails to address New Yorkers’ current need for a humane response and practical solutions,” Shayna Kessler, associate director for advocacy at the Vera Institute of Justice's Advancing Universal Representation initiative, said in a press statement. “Neglecting to meaningfully increase investments to protect immigrant communities is a missed opportunity to urgently fund essential services needed to support newcomers seeking safety as well as long-term New Yorkers who are rooted in our communities.” 

The $64.2 million reflects a $1.2 million increase over last year, which according to legal service providers, is not enough to sufficiently cover the costs of the influx of migrants coming to New York City.

“By only slightly increasing from FY24’s allocation, Albany not only shortchanges nearly 200,000 asylum seekers and longstanding immigrant New Yorkers, but lawmakers also impede the state’s ability to foster greater economic growth,” Murad Awawdeh, President and CEO of the New York Immigration Coalition, said in a statement. “Now, immigrant New Yorkers will have to compete for legal services which are critical for fending off deportation and keeping families united. Too many families will also be forced to make the difficult decision between paying for legal representation or feeding their families.”

The Coalition for Asian American Families and Children and the New York Immigration Coalition said they also were disappointed that Coverage For All, providing health care access to immigrant New Yorkers, was not funded.

Climate/Environment

New York Renews, a coalition of organizations dedicated to environmental justice, expressed outrage at the exclusion of the NY HEAT Act and the Climate Change Superfund Act. The NY HEAT Act would protect low-income New Yorkers from bearing more than 6% of utility payments. The Climate Change Superfund Act would create a cost recovery program for these sites in New York state.

“After a year of climate catastrophes and skyrocketing utility bills, the current budget signals that state leadership is choosing to willingly ignore the climate and environmental justice crisis that is quite literally killing New Yorkers at higher and higher rates each year,” NY Renews said in a statement. “By not including the NY HEAT Act, the Climate Change Superfund Act or new investments in climate and environmental justice, state leadership prefers to protect their fossil fuel industry investors over the wallets and health of working New Yorkers, raising our energy bills and continuing to funnel billions of dollars into expanding and maintaining the state’s toxic and polluting fossil fuel system.”

Income equality

United Way of New York City praised an increase to its Preventative Care Access Initiative and its Nourish NY initiative. The organization received $7.5 million for the Preventative Care Access Initiative, a program that provides maternal health care to families, alongside an increased total investment of over $54 million for Nourish NY, a program that provides nutritious foods to food pantries across New York City. 

“The impact of this year’s budget will be felt for years to come,” Grace Bonilla, president and CEO of the United Way of New York City, said in a press release, “as the communities (United Way) serves receive the additional support needed to improve the lives of millions of New Yorkers.”