FINANCE

NEW YORK STATE BUDGET HEARING FOCUSES ON AGRICULTURE FUNDING INCREASES AND RECORD PARK VISITATION Albany — The New York State Legislature's joint fiscal committees heard testimony Monday on Governor Hochul's proposed 2025-2026 budget for agriculture and parks, with state officials highlighting significant investments in farming support and record-breaking recreational access. Commissioner Richard Ball of the Department of Agriculture and Markets presented a $364 million budget proposal that continues the governor's commitment to the state's agricultural sector, which has seen a 60 percent funding increase over Hochul's first two budgets. Ball emphasized the importance of supporting New York's nearly 32,000 farms, which produce more than 30 different commodities, with dairy farming accounting for half the state's agricultural economy. Key proposed investments include $10 million for a second round of the Dairy Modernization Grant Program, $5 million in additional funding for the Nourish New York program, and $10 million more for the Regional School Food Infrastructure Grant Program to expand local farm products in school meals. The budget also allocates $5 million for farmworker housing and $3.2 million for Agri-Business Child Development centers serving approximately 1,000 children of farm workers. Sen. Michelle Hinchey, chair of the Agriculture Committee, pressed Ball on expanding school breakfast programs to include local farm products and questioned whether the state is doing enough on farmland preservation. She also raised concerns about the Farm Overtime Tax Credit, which the governor previously vetoed as a standalone bill, requesting it be included in 30-day budget amendments. Ball acknowledged significant challenges ahead, noting that approximately $103 million in federal funding flows to the agriculture department from USDA and FDA, and warning that the state could face losses due to changes in the new federal administration. He also highlighted labor shortages as the most limiting factor to agricultural growth, expressing concern about potential immigration enforcement that could disrupt farm operations. Between 40 and 50 percent of New York farmworkers lack proper documentation, Ball said. On the parks side, Commissioner Randy Simons reported record-breaking visitation of 88 million people to state parks in 2024, a 4.5 percent increase marking the 12th consecutive year of record attendance. He highlighted the success of the Get Offline, Get Outside initiative, which made swimming free at state park pools over the summer, drawing 542,000 visitors—a 36 percent increase—and enabling swimming lessons for more than 2,000 children. Simons also detailed the NY SWIMS Capital Grant Program, which awarded $150 million to municipalities for 37 swimming projects statewide, and the broader Unplug and Play initiative investing $200 million in recreational infrastructure. The agency expanded access for veterans, increasing Lifetime Liberty Passes from approximately 1,200 annually to over 12,000—a 900 percent increase. Assemblywoman Donna Lupardo, chair of the Assembly Agriculture Committee, expressed concern about the pause on the federal Climate-Smart Commodities Program, a $60 million New York initiative, and asked Ball to clarify the impact on state soil health work. She also raised concerns about workforce shortages and avian flu threats to the poultry industry. The hearing was the first of 14 budget hearings scheduled by the joint fiscal committees on the governor's proposed 2025-2026 budget. New York State Parks and Agriculture commissioners testified before a joint legislative budget hearing on January 27, defending the 2025-2026 executive budget proposals while facing pointed questions about farmland preservation, park accessibility, and state investment priorities. Parks Commissioner Pro Tem Randy Simons highlighted record visitation of 88 million in 2024 and touted accessibility initiatives including NY SWIMS ($150 million in first-round grants to municipalities for swim infrastructure), NY PLAYS, and NY BRICKS. He reported that fee waivers at swimming pools drove a 36 percent attendance increase, and waiving vehicle use fees during a June heat wave boosted park attendance by 40 percent. The department generated approximately $136 million in annual revenue from fees and sales. Simons also reported that the Parks Police force has grown to 243 officers after holding two academies in one year, and discussed preparations for hosting the 2025 Ryder Cup at Bethpage State Park, with the state investing "a couple of million" while the PGA covers most costs. He said the state will receive a base fee of approximately $2.5-4 million, though he pledged to provide the exact figure. Agriculture Commissioner Richard Ball faced skepticism from Republican lawmakers over solar development on farmland. Sen. Borrello (R) expressed concern that 3,000 acres in Chautauqua County are being converted to solar fields, while Assemblyman Tague (R) noted that 95 percent of solar project proposals come from developers, not farmers. Ball said the department has an MOU with NYSERDA to avoid, minimize, or mitigate solar impacts on actively farmed land, particularly top-tier soil. Ball also defended the Farm Laborers Fair Labor Practices Act against criticism from Assemblyman Tague, who said farmers find the overtime tax credit confusing and that it doesn't address front-end cash flow problems. Ball noted that only 63 farms used an early-release option in July, receiving about $1 million total by September, suggesting most farmers wait until year-end to claim the refundable tax credit. Assemblyman Kim praised parks' economic multiplier effect, citing data showing a 21X return on investment. Assemblywoman Walsh criticized the state's lack of investment in 250th Revolutionary War anniversary celebrations, noting that New Jersey ($25 million), Virginia ($20 million), and South Carolina ($5 million) have committed funds while New York has not. Sen. Tedisco framed questions around the Governor's affordability agenda, noting that 101,000 people left the state last year and asking how the departments could help address the crisis. Both commissioners emphasized accessibility and connecting communities to parks and food systems as their top priorities for affordability. New York State lawmakers questioned the 2025-2026 executive budget for Agriculture & Markets and Parks & Recreation on Monday, raising concerns about funding cuts to farm support programs, park infrastructure needs, and the state's preparedness for potential federal policy changes. During the joint legislative hearing, Senator Nathalia Fernandez challenged Commissioner Rochelle Ball about the apparent discontinuation of beginning farmer and socially disadvantaged farmer programs, which received $1 million each in the prior year. Ball responded that the programs were not eliminated but rather had over $4 million in reappropriations available, with grants expected to be released in January. She noted the department had partnered with Black Farmers United and Northeast Farmers of Color to establish administrative infrastructure. Senator Tom O'Mara, the Finance Committee's ranking member, raised alarm about significant budget cuts to agricultural support programs. He questioned a 61 percent cut ($760,000) to the New York State Apple Growers Association following a devastating crop year marked by hail and frost, and a 53 percent cut to the Farm Viability Institute. Ball acknowledged both were legislative additions that the Governor's budget did not restore, but indicated the Legislature could fight to restore them. On parks, lawmakers pressed Commissioner Pro Tem Sean Simons about equity in distributing $200 million in infrastructure funding and the status of $20 million in pension parity funding for parks officers, which is not included in the budget. Simons said the $200 million focuses on core infrastructure with a 90 percent return rate expected on priority items. Chairwoman Liz Krueger raised concerns about federal policy impacts, specifically asking about the state's response if the federal government defunds 22 national parks in New York. She also questioned whether USDA will continue meat and poultry inspections, citing the recent avian flu crisis that forced a Long Island duck farm to kill 100,000 birds. Ball said the state would monitor federal partnerships closely but acknowledged uncertainty about future federal support. Parks Commissioner Simons reported that the Governor invested $53 million in park safety infrastructure, with 51 parks identified for improvements including license-plate readers, security cameras, and enhanced lighting. He also noted that approximately 50 percent of the agency's light-duty fleet is now electric, with EV charging stations at about 15 percent of parks. Assemblyman Ed Ra raised concerns about bot abuse at Bethpage Black golf course, where computer programs appear to be exploiting the booking system. Simons acknowledged the problem and said the department is investigating and will take appropriate action to protect public access to the "People's Country Club." The hearing highlighted tensions between the Governor's budget proposals and legislative priorities, with lawmakers signaling they will push for restoration of agricultural funding and greater investment in park infrastructure during the 30-day amendment period. NEW YORK STATE SENATE FINANCE COMMITTEE HEARING — The New York State Legislature held a joint hearing on the 2025-2026 Executive Budget for Agriculture & Markets and Parks & Recreation on January 27, 2025, with testimony revealing significant funding gaps and policy priorities across both agencies. Commissioner Richard Ball of the Department of Agriculture & Markets reported dramatic increases in sales through the state's farmers market system and announced the imminent opening of a major food hub in the Bronx. He noted that climate-resilient farming funding has been increased to over $17 million to help farmers address droughts and flooding. However, the hearing exposed critical issues facing the agricultural sector. The most contentious issue centered on the Farm Employer Overtime Tax Credit. Allyson Jones-Brimmer of the Northeast Dairy Producers Association testified that the Governor's budget failed to include a proposal to fix the tax credit, despite the Legislature unanimously passing corrective legislation last session that the Governor subsequently vetoed. Jones-Brimmer called for a retroactive fix and requested the Legislature advance the legislation in its one-house budgets. Multiple agricultural advocates testified about funding shortfalls. Katie Baildon of the Northeast Organic Farming Association requested $250,000 to expand organic certification programs and address an $800,000 federal funding gap affecting approximately 2,000 certified farms and food businesses. Kyle Wallach of the New York Farm Bureau highlighted the importance of Cornell's College of Agriculture and Life Sciences and requested expansion of the Farmworker Housing Revolving Loan Fund from $200,000 to $400,000 per project. The Northeast Dairy Producers Association requested the fund be increased to $15 million total. On the parks side, Commissioner Pro Tem Jasmine Simons reported record visitation of 88 million with a 4.5 percent increase and noted that the youth swim program has tripled participation from 400 to over 2,000 children. She confirmed that $2.5 million is allocated to close the Harlem Valley Rail Trail gap and indicated the agency is monitoring the Hudson-Athens Lighthouse preservation project, which requires an estimated $10 million state share of a $30 million restoration effort. Chairwoman Liz Krueger expressed strong support for the NYC farmers market system and the Hunts Point food hub, while Sen. Pete Hinchey pressed for confirmation of capital funding for projects in his district. The hearing underscored ongoing tensions between the Executive and Legislative branches over agricultural tax credits and funding priorities for farm workforce housing and support programs. NEW YORK STATE SENATE FINANCE COMMITTEE — Agricultural advocates and animal welfare organizations testified before a joint Senate-Assembly committee on January 27 regarding the 2025-2026 Executive Budget, calling for increased funding for farmworker housing, food security programs, and animal shelter infrastructure. The Adirondack Food System Network urged lawmakers to prioritize North Country farming communities, citing the near-total disappearance of farms in Hamilton County and food insecurity in rural areas like Herkimer County. The group requested that the Legislature raise budgets for the Nourish New York and HPNAP food assistance programs to $75 million each. Dairy industry representatives expressed concern that a $24 million fluid milk processing program announced last year may be oversubscribed, with applications due mid-February. The Northeast Dairy Producers Association called for additional funding in the current budget and highlighted labor workforce retention as the greatest challenge facing farms. The group also advocated for increasing the farmworker housing revolving loan fund cap from $200,000 to $400,000, noting that construction costs for new housing units now exceed $1 million. Sen. Michelle Hinchey, the Agriculture Committee chair, questioned whether guardrails exist to ensure small dairy farms have access to the fluid milk processing funds, and pressed industry representatives on federal policy changes affecting farmworkers. Sen. George Borrello, citing his 30 years in the beverage industry, expressed skepticism about a proposal to allow wine sales in grocery stores without restrictions ensuring New York products would be prioritized. Animal welfare organizations testified in support of the Companion Animal Capital Fund, requesting the Legislature provide $5 million to match the Governor's proposal for a total of $10 million. The ASPCA noted the fund has provided $33 million to support capital projects for more than 70 shelters since its creation in 2017, the first of its kind in the nation. The New York State Animal Protection Federation requested a new $2.5 million Animal Crimes Fund to reimburse shelters for costs of holding live evidence in criminal cases. Post cited a rolling survey showing 28 animal crime cases cost shelters $604,000 in care, with shelters recouping only $109,000—18 percent of total costs. She provided examples including Hudson Valley Humane Society's $334,000 cost to care for 24 huskies for 18 months and Lollypop Farms' $69,000 cost to care for 65 cats for 70 days, recouping only $3,100. Assemblyman Chris Tague noted the agriculture budget has been reduced by $7 million despite the overall state budget reaching $252 billion, and asked each testifier to identify their top budget priority and funding needs. NEW YORK STATE SENATE FINANCE COMMITTEE — Three environmental and agricultural advocacy organizations urged lawmakers on Monday to significantly increase funding for parks, farmland protection, and climate-resilient farming programs in the 2025-2026 state budget, citing record park visitation, accelerating farmland loss, and a massive backlog of deferred maintenance. Will Coté of Parks & Trails New York testified that state parks reached record visitation of 88 million visitors in 2024—the twelfth consecutive year of increases—and called for the Governor's proposed $200 million in capital funding plus an increase in the Environmental Protection Fund to $500 million. He cited a $2 billion backlog in park system maintenance and noted that every $1 million invested in parks generates $10 million in sales and $7 million in state GDP. Julian Mangano of American Farmland Trust presented stark data on farmland loss: New York lost 364,000 acres of farmland between 2017 and 2022, and at the current rate risks losing another 452,000 acres by 2040. He urged the Legislature to raise the Farmland Protection budget to $25 million within a $500 million EPF and increase funding for the Farmland for a New Generation program from $700,000 to $1 million, noting that 60 percent of New York farmers are over 55 with 90 percent lacking succession plans. Carli Fraccarolli of Scenic Hudson advocated for increasing the Climate Resilient Farming program from the Governor's proposed $15.25 million to $33 million, citing that last year's federal grant allowed the state to disburse $33 million to farmers but left approximately $49 million in unfunded requests. Sen. Michelle Hinchey engaged substantively with testifiers on Farm-to-School reimbursement rates and agrivoltaic solar principles, expressing concern that solar developers exploit loopholes to avoid maintaining farmland access. Assemblywoman Anna Kelles noted that the real estate transfer tax generated over $1 billion in 2024, providing ample justification for increasing the Environmental Protection Fund without new taxpayer dollars. The hearing, held Monday afternoon, was the first budget hearing of the 2025 budget year. The committee will reconvene Tuesday morning for an Environmental Conservation and Energy hearing.