New York State Fiscal Year 2021–22 Budget Passes

NY State Government: Week in Review

On April 7, several days past its statutory deadline of April 1, the state Legislature completed its negotiations with the Governor and passed the final pieces of legislation to complete the state fiscal year 2021–22 New York State Budget. The complete budget, some of which is currently awaiting action by the Governor, is a $212 billion spending package, the contents of which had been hotly debated over the past few months in Albany.

Amid turbulent negotiations and controversy, the budget found a focal point involving New York’s recovery from the COVID-19 pandemic and its associated impacts. Measures to increase state revenues, to address concerns regarding nursing home impacts resulting from the COVID-19 pandemic and to legalize adult-use cannabis were all in the forefront of debate in the past weeks. Nursing home reform measures and cannabis legalization measures were passed by the Legislature in parallel with the budget but were not included in the budget legislation itself. The final fiscal package did, however, include a host of legislative priorities, including:

  • $29.5 billion in aid to schools
  • $29 billion in public and private investments in the state’s green economy
  • $1 billion in investments to aid in New York’s small business recovery
  • $2.1 billion in a stimulus fund for undocumented workers
  • $2.3 billion to tenants impacted by the pandemic for rental support
  • A two-year delay in the carve-out of the pharmacy benefit from the state’s Medicaid managed care program
  • Legalization of mobile sports betting
  • Increases in taxes for high-income earners in the state

The Manatt team looks forward to providing you with a detailed analysis of the state’s enacted budget and welcomes the opportunity to discuss any questions you may have in the interim on its provisions.

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