Governor Kathy Hochul has put a $227 billion budget on the table, and Long Island is one of the more interesting winners and losers in the package. The proposal includes $845 million for economic and community development, $2.4 billion for healthcare capital infrastructure, $455 million for the redevelopment of Belmont Racetrack, and a 10% increase in public school aid. The film industry is the loudest voice saying the numbers are not enough.
Our analysis: two things to read into the numbers
Two things matter more than the totals.
First, healthcare is the strategic line item. The $2.4 billion in healthcare capital infrastructure is the largest discretionary commitment in the budget, and it is paired with a separate energy and water spend. Together, those two lines are an attempt to anchor Long Island's suburban economy in a higher-cost, higher-regulation future. That is good for established hospitals, energy contractors and engineering firms, and it signals the state is willing to underwrite the capex.
Second, the film tax credit is the tell for how competitive the region is. The proposed bump from 25% to 30% is real money, but it does not match what neighboring states are offering. Grumman Studios' Parviz Farahzad is blunt: he wanted an additional 5% to 10% on top to pull production back to Long Island and Westchester. The state is not closing the gap yet, and the studios that can move are moving.
The arts face a similar squeeze. Lauren Wagner of the Long Island Arts Alliance says the governor cut all rescue funding, essentially resetting to levels seen over the past decade. With more than 700 eligible non-profit organizations on Long Island alone competing for New York State Council on the Arts dollars, the allocation does not match demand or the sector's post-pandemic recovery needs.
Who should care
| Stakeholder | What's in it | What's missing |
|---|---|---|
| Healthcare operators, contractors, senior-care providers | $2.4B capital infrastructure; aging population driving demand | Sustaining operating funds beyond capex |
| Energy and environmental firms | $5.5B for affordability, emissions, clean air/water; offshore wind underway | Grid modernization timeline and local permitting clarity |
| Film and production companies | Credit bump from 25% to 30% | Competitive edge versus NJ, CT, MA; additional 5-10% needed |
| Arts and culture nonprofits | Baseline NYSCA allocation | Rescue funding eliminated; $109M state advocacy win reversed |
| School districts | 10% increase in state aid | Direct property tax relief depends on local application decisions |
| Real estate developers | Downtown revitalization, housing expansion proposed | Housing package facing local opposition; bail law amendment uncertain |
What to watch next
Hochul has put a serious budget on the table for Long Island, but the headline numbers are not the story. The story is which line items hold up in negotiation and which get cut.
Watch two things. First, whether the film tax credit gets the additional 5% to 10% bump the studios are asking for, or whether the 30% ceiling holds. Second, whether the housing development package, which is already facing opposition on parts of Long Island, survives the April 1 deadline.
That fight will tell you more about the state's direction than any of the billion-dollar headlines.
Key takeaways
- Healthcare and energy are the strategic commitments, with real capex behind them.
- The film tax credit bump is a positive but does not close the gap with neighboring states.
- Arts funding faces a reset after rescue funding was eliminated.
- The April 1 deadline will reveal which line items were headline and which were policy.
Frequently asked questions
How large is Hochul's proposed New York state budget?
The proposed budget totals $227 billion and was unveiled in Albany last week.
What are the main Long Island-relevant line items?
$845 million for community and economic development, $2.4 billion for healthcare capital infrastructure, $455 million for the redevelopment of Belmont Racetrack and a 10% increase in school aid.
Why are Long Island film leaders unhappy with the budget?
Producers like Parviz Farahzad of Grumman Studios argue that the proposed bump in the film tax credit from 25% to 30% does not match the incentives offered by New Jersey, Connecticut and Massachusetts.
What is the budget deadline?
The budget is subject to weeks of negotiation with state legislative leaders, with a target of finalizing by April 1.
What other initiatives are in the proposal?
The plan includes investment in childcare, renewable energy, the arts, film, downtown revitalization and tourism, plus a possible amendment to the state bail law.