The cost of migrants helps push New York State's budget to $233 billion

New York Gov. Kathy Hochul will unveil a $233 billion budget Tuesday, including about $1.9 billion to help New York City manage the migrant crisis.

The package — the final details of which were still being worked out on the eve of Tuesday's budget presentation — will include at least $1 billion to cover the costs of sheltering migrants in New York City. The money will also help pay for case management, medical and legal bills and services aimed at connecting individuals with jobs.

Under the proposal, New York State would assume funding for approximately 3,000 beds. This will fully fund existing shelters at Creedmoor, the state psychiatric hospital in Queens, and on Randall's Island.

The state's commitment, which comes despite a projected $4.3 billion budget gap, speaks to the political urgency of the crisis for Democrats, who will be forced to defend their party's handling of immigration in a year for the presidential elections.

The looming Medicaid increases will require the state to spend another $3 billion in related costs this year.

The state will be helped with $2.2 billion in higher-than-expected tax revenue, but still, officials say, the state will have to look for savings. Budget officials cited Medicaid reimbursement rates and some service cuts, as well as changes in public school financing policies, as potential areas for savings.

Ms. Hochul's budget proposal officially kicked off annual negotiations between the governor and legislative leaders over how the state will spend more than $230 billion during the 2025 budget year, which begins April 1.

Governors in New York have typically used the state budget as a vehicle to drive policy initiatives; Last year, Ms. Hochul used the budget to change the state's bail laws to make it easier for judges to detain people accused of crimes while they await trial.

It is not clear what policy priorities will emerge for Ms Hochul during this year's negotiations. In her annual State of the State address last week, Ms. Hochul outlined a broad vision for strengthening mental health care and public safety across the state, but spoke only briefly about the migrant crisis that is straining the city's resources .

Still, New York City Mayor Eric Adams, who came to Albany to attend the speech in person, told reporters he was confident the city and state were aligned on addressing the issue .

“I think the governor has heard us as we move the city forward,” Mr. Adams said last week, adding, “The national government needs to address this issue, but it is in our lap.”