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Albany Update 01.17.24
Governor’s Proposed 2024–25 Budget
Governor Hochul released the executive budget on January 16. This year’s budget totals $233 billion, which has been touted as being accomplished without raising income taxes. State spending from the current fiscal year is up nearly $6 billion, which amounts to a 4.5 percent increase.
There were a number of items in the budget that relate to the property and casualty industry. Two NYIA priority agenda items were included. The first would enact online insurance verification for auto insurance. The second would change the interest rate on judgments from nine percent to the prevailing market rate for both public and private entities.
There are also a number of concerning measures, including expansion of what is considered an unfair, deceptive or abusive act that would greatly increase litigation, dramatic changes to the excess medical malpractice insurance program, prohibitions on insurance companies in relation to the underwriting and rating of affordable housing and a change to the supplemental spousal liability insurance law to narrow its applicability. NYIA will be weighing in on these measures on behalf of our members.
Additional information about individual budget proposals applicable to property and casualty insurers is included in NYIA’s summary. NYIA will continue to dissect the thousands of pages of budget bills to ensure that provisions with an impact on our industry are analyzed.
Please keep in mind that this is only the beginning of the budget process. The array of proposals will be scrutinized by the Legislature, and NYIA will be weighing in with legislators and the Executive branch on those aspects impacting our industry. The Governor has an opportunity to submit both 21-day and 30-day amendments to her Executive Budget. The Legislature has released the budget hearing schedule. The hearings will begin on Tuesday, January 23 on the topic of health, which is when DFS typically testifies. The deadline for the budget to be passed is technically Sunday, March 31 but it is unclear if an on-time budget will be a priority this year.