Governor Kathy Hochul will release the FY’23 State budget tomorrow, Jan. 18th, 2022. The State Division of the Budget and the Comptroller have been acknowledging the State will run surpluses in the multibillion range for this year and several years afterward. The Omicron surge will surely temper growth in the near-term, but cash surpluses from 2021 are already in the bank.
The Governor’s State of the State message already outlined top priorities like helping the health care system with staffing and compensation, and new child care and housing initiatives. The State will need to carefully address some long-term problems; should money be set-aside into Reserves to prepare for a downturn, or spend prudently to avoid a ” fiscal cliff ” when Federal COVID aid runs out in 2025? These are among the issues that will be debated.