Migrant Costs Help Push New York State’s Budget to $233 Billion

Gov. Kathy Hochul of New York is set on Tuesday to unveil a $233 billion budget that includes roughly $1.9 billion to help New York City manage its migrant crisis.

The package — the final details of which were still being hammered out on the eve of Tuesday’s budget presentation — will include at least $1 billion for New York City’s migrant shelter costs. The money will also help pay for case management, medical and legal bills and services that aim to connect individuals with jobs.

Under the proposal, New York State will take over funding for roughly 3,000 beds. This will fully pay for the existing shelters at Creedmoor, the state psychiatric hospital in Queens, and at 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 presidential election year.

Looming increases to Medicaid will require the state to spend an additional $3 billion in related costs this year.

The state will be aided by $2.2 billion in higher-than-expected tax receipts, but even so, officials say, it will need to find savings. Budget officials identified Medicaid reimbursement rates and some service reductions, as well as changes to the policy for funding public schools, as potential areas for savings.

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

Governors in New York have typically used the state budget as a vehicle to shoehorn in policy initiatives; last year, Ms. Hochul used the budget to amend the state’s bail laws to make it easier for judges to hold people accused of crimes while they awaited trial.

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

Even so, Eric Adams, the New York City mayor, who came to Albany to see the speech in person, told reporters that he was confident that the city and state were aligned on handling the issue.

“I think the governor has heard us as we move the city forward,” Mr. Adams said last week, adding, “The national government must deal with this issue, but it’s in our lap.”