S4003D

The New York State Senate passed its $230 billion budget bill (S4003D, Calendar 721) on a 43-20 vote, but not before heated debate over a controversial Medicaid funding reduction that will shift hundreds of millions in federal dollars away from counties and New York City. The bill, sponsored by Sen. Liz Krueger, includes significant investments in education, workforce development, and community programs, but the eFMAP (federal Medicaid pass-through) provision drew fierce criticism from both parties. Under the budget, counties will lose 25% of federal Medicaid expansion funds in fiscal year 2024, 50% in 2025, and 100% in 2026—totaling between $626 million and $774 million over three years. Sen. Rhoads and other opponents argued the state has a $36 billion surplus and should not shift costs to property taxpayers, noting counties already pay 18% of Medicaid costs ($7.6 billion annually, more than all other 49 states combined). Sen. Krueger acknowledged the Senate negotiated the three-year phase-out to reduce the Governor's original proposal to take all funds immediately, but said the administrative decision remained outside the budget document itself. The bill also drew criticism for eliminating American Legion Boys State funding and for disparities in water authority funding. Supporters highlighted $10 million in youth sports grants, no tuition increases at CUNY and SUNY, $30 million for AAPI community organizations, and investments in workforce development and refugee resettlement. Twenty senators voted no, primarily citing the eFMAP cuts' impact on property taxes and county budgets.