NYS Governor Hochul Delivers 2023 State Of The State Address – Government Contracts, Procurement & PPP


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On January 10, 2023, Governor Kathy Hochul delivered her second
State of the State address, outlining her policy and fiscal agenda
for the upcoming year. Please find attached Governor Hochul’s 2023 State of the State
and press release.

The address highlighted the Governor’s historic win in
November as the first elected female Governor of the State of New
York, and her first State of the State Address in the Assembly
Chamber that was widely attended by legislators and guests,
indicating that Albany is back to conducting its government work in
person following several years of COVID protocols and hybrid
legislative sessions. In her address, Governor Hochul called for a
number of significant investments and policy changes, including but
not limited to improvements to bail laws eliminating a “least
restrictive” standard for serious crimes; an investment of
more than $1 billion in New York’s mental health resources;
establishing the new “Future of Health Care” Commission
to provide ongoing strategic guidance for the transformation of the
health care system; the creation of the New York Housing Compact,
which includes a number of policy proposals to build 800,000 new
homes across the State; indexing the state’s minimum wage to
keep pace with inflation; $35.2 million in new funding to support
cybersecurity enhancements statewide; the creation of GO SEMI to
oversee Micron’s $100 billion investment for a new megafab in
Central New York; and the Waste Reduction and Recycling
Infrastructure Act, which would require producer recycling.

Outlined below are the proposals that were identified as the
Governor’s State of the State priorities for State Fiscal Year
2023–24, which are described in greater detail in the 2023
State of the State book. We expect that some of these proposals may
be implemented administratively, but others will be pursued through
legislation or as part of the Governor’s budget proposal, which
is expected to be released on or before February 1.

After Governor Hochul submits her Executive Budget, the State
Legislature will hold legislative hearings on the proposed budget
in February, followed by the Governor’s proposal of 21-day and
30-day amendments to her budget, the State Legislature’s
release of its One-House budget proposals by mid-March, and final
budget passage around April 1.

If you have any questions regarding these proposals, please do
not hesitate to reach out to any member of the Manatt team at

Proposals in Governor Hochul’s 2023 State of the State

Building 800,000 New Homes: The New York Housing Compact

  • Set Goals for New Home Construction Across the State
  • Facilitate Housing Approval When Localities Do Not Meet
  • Encourage New Housing Near Transit
  • Provide $250 Million to Support Planning and Infrastructure
  • Establish a Statewide Database to Promote Transparency
  • Remove Obstacles to Housing Approvals
  • Give the City of New York the Flexibility to Increase
    Residential Capacity
  • Create Greater Opportunities to Convert Office Spaces to
    Residential Housing
  • Authorize the City of New York to Legalize Basement
  • Offer Critical Incentives to Build and Rehabilitate
  • Address Childhood Lead Poisoning in High-Risk Areas Outside of
    New York City
  • Support Homeowners in High-Need Communities of Color
  • Expand the Tenant Protection Unit
  • Reclaim Vacant and Abandoned Homes
  • Include Child Care in New Residential Construction
  • Create a Housing Planning Office

Fixing the Continuum of Care for Mental Health

  • Expand Insurance Coverage for Mental Health Services
  • Expand Mental Health Services for School-Aged Children
  • Increase Operational Capacity for Inpatient Psychiatric
    Treatment by 1,000 Beds
  • Improve Admissions and Discharge Planning and Establish
    Systemic Accountability
  • Dramatically Expand Outpatient Services
  • Create 3,500 New Housing Units for Individuals With Mental

Keeping New Yorkers Safe

  • Double Investment in Alternatives to Incarceration
  • Triple Investment in Reentry Services to Improve Public
  • Expand the State’s Gun Involved Violence Elimination
  • Rebuild the State Police With a Targeted Focus on Fighting
    Serious Crimes

    • Launch an Unprecedented Four New State Police Academy
    • Expand Community Stabilization Units to as Many as 25
    • Increase NYSP Participation on Federal Task Forces to Combat
      Violent Crime
  • Expand the Work of Crime Analysis Centers and Include New York
  • Hire Hundreds of New Prosecutors Around the State
  • Provide Continued Funding for Discovery Reform
  • Make Improvements to the State’s Bail Laws
  • Reduce Gun Violence and Violent Crime Among Individuals Under
    Parole Supervision
  • Combat the Flow of Fentanyl Into Our Communities
  • Stabilize Fire Service Statewide to Improve Emergency
  • Counter Cyber Threats

Building a Health Care System for New York’s Future

a) Transform How We Pay for and Deliver Care

  • Establish a Commission on the Future of Health Care
  • Provide Transformative Health Care Capital Funding
  • Establish a New Health Care Technology Capital Program
  • Reform Traveling Nurse Agency Staffing Practices
  • Allow Health Care Providers to Do More
  • Reform Approval Processes of Health Care Projects

b) Strengthen the Foundation

  • Expand Medicaid Coverage of Preventive Health Services
  • Expand the Medicaid Buy-in Program for New Yorkers With
  • Improve Essential Plan Coverage
  • Protect New Yorkers From Medical Debt and Other Burdensome
    Medical Costs
  • Expand Access to Primary Care
  • Revitalize Emergency Medical Services and Medical
  • Ensure Access to Aging Services and High-Quality Long-Term
  • Lead the Way for a Tobacco-Free Generation
  • Save Lives Through Treatment of Opioid Addiction
  • End Preventable Epidemics

c) Prepare for Future Emergencies

  • Modernize Our Health Reporting Systems
  • Rebuild the Wadsworth Laboratories
  • Strengthen New York’s Public Health Emergency Readiness

Safeguarding Our Climate and Environmental Future

  • Meet New York’s Climate Goals With a
    “Cap-and-Invest” Program That Prioritizes
  • Make Energy More Affordable
  • Make Buildings More Sustainable
  • Advance Transportation Electrification
  • Ensure a Just Energy Transition
  • Reduce Waste and Invest in Local Recycling Programs
  • Invest in Critical Water Quality Infrastructure
  • Clean Up “Forever” Chemicals
  • Make Our Parks Energy-Independent

Helping Workers Keep Up With the Cost of Living

Providing High-Quality Education

  • Make Historic New Investments in Public Education
  • Continue Major Commitment to Prekindergarten Expansion
  • Establish High-Impact Tutoring Programs Across the State to
    Address Learning Loss
  • Create New Early College High School and P-TECH Programs
  • Create a Robust High School-College-Workforce Pipeline
  • Directly Admit All New York Students to Their Local Community
  • Initiate a Cascading Admissions Pilot to Ensure That Every
    Student Has a Place at SUNY
  • Provide for Reasonable Tuition Flexibility Throughout CUNY and
  • Establish a State Matching Fund for Endowment
  • Provide Funding for SUNY’s Transformation

Attracting and Growing New York State Businesses

  • Modernize and Streamline the State’s Training and
    Employment Infrastructure
  • Match Federal Technology Innovation Funding
  • Invest in Cell and Gene Therapy
  • Establish the Office of Semiconductor Expansion, Management and
  • Improve the Excelsior Program to Attract Businesses and Jobs to
    New York State
  • Establish Minority and Women’s Business Enterprise
    Certification Reciprocity
  • Take a Truly Statewide Approach to Economic Development Near
  • Establish a New State Initiative to Focus on Supply Chain

Growing New York’s Agricultural Sector

  • Use State Purchasing Power to Bolster Demand for NY
  • Create a Food Supply Workforce Pipeline
  • Make the Investment Tax Credit Refundable
  • Support “Scratch” Cooking Facilities for School
  • Expand Urban Agriculture Infrastructure and Community
  • Provide Grant Funding to Expand Food Access
  • Increase Food Manufacturing

Lifting Up All New Yorkers

  • Protect Reproductive Rights and Access
  • Increase Reimbursement Rates for Reproductive Health
  • Implement Over-the-Counter Contraception Access
  • Safeguard Abortion Access Through Data Privacy Protections
  • Ensure Abortion Access at Public College Campuses
  • Enact the Equal Rights Amendment
  • Modernize Gender-Based Violence Policies and Procedures
  • Reinvigorate the Interagency Coordinating Council for Services
    to Persons Who Are Deaf, Deafblind or Hard of Hearing
  • Connect People With Disabilities to Inclusive Internships
  • Designate New York as a Model Employer for People With
  • Increase Legal Services Support for the Office of New
  • Provide Funding for Refugee Resettlement Programs
  • Support Retraining for Immigrants With Experience in Specific
    Skilled Professions
  • Create Housing for Older LGBTQ+ New Yorkers
  • Protect New Yorkers From Predatory Banking Fees
  • Increase Access to Education for Public Assistance
  • Launch Mobile Veterans Service Centers
  • Improve Veteran and Military Cultural Competency in Supportive
  • Expand the Fresh Connect Program to Fight Food Insecurity

Building a Strong and Equitable Child Care System

  • Streamline and Centralize the Application for Child Care
  • Raise Eligibility to the Maximum Allowed Under Federal Law
  • Expedite Enrollment for Families Receiving Other Benefits
  • Rationalize Eligibility Requirements Across All Counties
  • Establish a Workforce Retention Grant Program
  • Pilot a New York State Employer-Supported Child Care
  • Adopt a Statewide Business Income Tax Credit for Child
  • Create a Business Navigator Program

Prioritizing Transportation Safety, Equity and Efficiency

  • Secure the MTA’s Future
  • Make the MTA’s “City Ticket” Available 24/7
  • Move Forward on Light Rail Option for the Interborough
  • Expand the EV Charging Infrastructure
  • Improve Bus Reliability
  • Allow New York City to Lower Its Speed Limit
  • Spur Transportation Innovation Upstate
  • Take High-Risk Drivers off the Road
  • Empower the Department of Transportation to Seize Dangerous
  • Stop Secondary Crashes
  • Close the DWI Loophole

Improving State Government: The Customer Experience

  • Make Customer Experience and Benefits Participation a State
  • Simplify the Child Care Assistance Application Process
  • Improve the Client Experience of Food Benefits for Women,
    Infants and Children
  • Make It Easier to Obtain Tax Credits
  • Save Time for Residents and State Workers With E-Signature
  • Lower Call Wait Times and Reduce Reliance on Phone Calls
  • Launch “One ID for New York State” to Improve Digital

Improving State Government: Agency Operations

  • Rebuild the Public Sector Workforce
  • Expand Access to Paid Parental Leave
  • Replace the State’s Paper-Based Procurement Process With an
    eProcurement System
  • Create the Small Business 24/7 Portal
  • Streamline LLC, LLP and LP Formation
  • Make It Easier for Code Officials to Work in New York
  • Eliminate Technical Filing Requirements for Municipalities
  • Provide Equity and Opportunity in Cosmetology
  • Reduce Paperwork for Condominium Declarations
  • Rewrite the Alcohol and Beverage Control Law on a
    Policy-Neutral Basis

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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