Schuyler Center’s Last Look is our initial assessment of the enacted State budget and how it advances priorities that improve the health and well-being of all New Yorkers, especially children and families living in poverty.
During the Last Look Live webinar held on May 9, Schuyler Center’s Policy Team provided an overview of budget actions related to our policy priorities.
Kate Breslin discussed child poverty reduction measures, Crystal Charles gave an overview of child welfare investments, Katie Albitz provided an update on budget actions related to child care, and Lara Kassel and Bridget Walsh discussed investments in health and well-being. Dede Hill highlighted additional Schuyler Center policy priorities for the remainder of this legislative session.
In Governor Hochul’s State of the State address, she outlined a New York Dream that is accessible to everyone. For children and families who are experiencing poverty, this year’s state budget cracks open the door to that dream just a little wider.
This year’s budget is a story of partial solutions in place of bold and transformative policy. Through the unified power of child poverty fighters and the tenacity of legislative champions, this year’s state budget includes an expansion of the Empire State Child Tax Credit to include babies and toddlers under age four. This means that the child tax credit will reach an additional 600,000 to 900,000 children statewide. We celebrate this expansion; it has been a very long time coming!
For real poverty fighting impact, we will continue to advocate to 1.) remove the child tax credit’s phase-in that limits the credit amount provided to the lowest income families, and 2.) increase the credit amount from the current maximum of just $330 per year and build in a mechanism to keep up with rising costs. [Schuyler Center Statement on Child Tax Credit Expansion in the NYS Budget]
We’re encouraged that this year’s State budget includes a historic update to the child welfare housing subsidy. Starting next year, the child welfare housing subsidy will increase from $300 a month to $725 a month, a long overdue update to a subsidy that has not been increased since it was established in 1988. This subsidy is a lifeline to families involved in the system and youth aging out of foster care, seeking a life of safety and independence. [Child and Family Advocates’ Statement on the 2023-24 New York State Budget: Historic update to the child welfare housing subsidy]
The budget also includes notable investments in child care. These are measures that will make a tangible difference in the lives of children and families, including expanding access to child care by extending eligibility for assistance to pay for child care to families earning up to 85% of the state median income ($93,258 for a family of four), capping copays, an online application, and the elimination of some administrative barriers that prevent families from receiving the help they need. The budget also contains a small pilot program to help the families of children who are currently excluded from child care assistance due to their immigration status. [Empire State Campaign for Childcare Response to 23-24 Budget]
While each of these actions represents progress, we still have a long way to go. The door to the New York dream should be wide open for every New Yorker, regardless of zip code or income or race. Schuyler Center will continue advocating for the bold policy solutions that New York’s children and families need, especially those experiencing poverty, inequity, and systemic racism. [Schuyler Center End of Session Policy Priorities 2023]
First steps achieved toward a robust and inclusive child tax credit, with more to be done
As advocates for policies that aim to end the experience of child poverty and support New York’s children and families, Schuyler Center is pleased that this year’s state budget includes an expansion of the Empire State Child Tax Credit to include babies and toddlers ages 0-3. Starting next year, the child tax credit will reach an additional 900,000 children statewide. It will be the first time since the credit was created in 2006 that children under 4 years old are included in the state child tax credit.
By expanding the credit to include the youngest New Yorkers, our leaders have strengthened an important tool in reducing child poverty. Schuyler Center has long fought for this expansion, and we commend Governor Hochul and Legislative leaders for taking the first step toward a more inclusive child tax credit.
The Path to a More Impactful Child Tax Credit
While we are thrilled by budget action to include children under 4 in New York’s child tax credit, this year’s state budget did not include an additional, equally important expansion. To make New York’s child tax credit as inclusive as possible, leaders must also remove the phase-in that limits the credit amount provided to the lowest income families.
Currently, children in families earning the lowest incomes receive only a partial credit because their household is in the phase-in (i.e. they earn too little). These are the children who would benefit most from this credit. A family making $7,000 shouldn’t receive a smaller credit than one making $70,000.
In addition, for real poverty fighting impact, the credit amount must be increased from the current maximum of $330 per year and built to keep up with rising costs.
We will continue advocating for these additional improvements. Combined, these actions will help realize the powerful poverty-fighting potential of NY’s child tax credit.
We urge Governor Hochul and Legislative leaders to finish fixing the flaws. With these improvements, the Empire State Child Credit can be an essential tool in achieving New York’s goal of reducing child poverty by 50% within the next decade.
Schuyler Center and our many partners in the fight to end child poverty in New York State would like to thank Senator Gounardes, Assemblymember Hevesi, Senator Cooney, and the leadership in both houses of the legislaturefor championing these actions as well as the Working Families Tax Credit. If enacted, the Working Families Tax Credit will move New York significantly closer to meeting its statutory commitment of cutting child poverty by 50% by 2032.
Schuyler Center’s First Look is an initial assessment of New York State’s 2023-24 proposed Executive Budget and how it advances priorities that improve the health and well-being of all New Yorkers, especially families impacted by poverty.
In 2022, New York State enacted the Child Poverty Reduction Act, committing the State to reducing child poverty by 50% in the coming decade with attention to racial equity. The law creates an expectation of public accounting for progress over time and assessment of budget actions with regard to their impacts on child poverty. We urge partners in and outside of government to systematically evaluate each and every budget decision as to its impact on child poverty and overall child and family well-being.
Last Look is our assessment of the enacted State budget and how it advances priorities that improve the health and well-being of all New Yorkers, especially children and families living in poverty.
There is much to celebrate in this 2022-23 New York State Budget. The final budget contains some extraordinary investments in New York State children and families.
Unfortunately, this budget is also a story of missed opportunity. New York leaders were presented with an unexpected revenue surplus and a strong economy, yet failed to make transformative investments in children and families, or even restore funding cuts undertaken in leaner times.
Read Schuyler Center’s Last Look at the 2022-23 Budget.
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