One year ago, the state’s finances were bleak. According to the budget director, New York was looking at a revenue shortfall of $39 billion over a four-year period. Today, thanks to billions of dollars in federal aid, as well as increased tax receipts and a strong stock market, New York has a surplus.   

But the state, along with the rest of the nation, is facing the highest rate of inflation in 30 years, and 350,000 people have left the state between 2020 and 2021.  

Charles Khan, organizing director for Strong Economy for All Coalition, joined Capital Tonight to discuss the executive budget and how the spending plan could put the state on a stronger economic footing.  

“New York is in a fiscally, really, really healthy strong place, and that’s due mainly to what we did last year,” Khan said. “We set ourselves up in a really good way by raising taxes on the wealthy. So we have a real opportunity to make short-term and, most importantly, long-term investments.”

While Gov. Hochul’s budget is the largest in the state’s history at $216 billion, Khan said she missed some opportunities in sectors including child care and housing. 

When asked if he thinks a tax hike should be implemented to pay for child care, Khan said that was a possibility; but another idea would be to reallocate money that is currently earmarked for the state’s rainy day fund. 

“We could raise taxes to invest in a more meaningful way in childcare; however, we do have billions and billions of dollars that aren’t being allocated, right?” Khan said.

Khan said the governor’s $1.4 billion investment in child care is a “good start."

“We have an opportunity to fix [child care.] I’m not going to give credit to the governor just for making an attempt when we could have really won,” he said. 

According to Khan, the reason 350,000 New Yorkers have migrated from New York is because the state is unaffordable. Funding child care and affordable housing he said, would make the state more affordable.

“That’s why we need the investments in child care. That’s why we need real investments in affordable housing, not a replacement of 421a,” he said. “If we have more affordable housing; if we had more child care, people are going to say, 'hey, I can set up shop in New York.'"