New York State Capitol
The New York state budget has finally passed.
State lawmakers wrapped up voting on the $254 billion state spending plan late Thursday night.
In a series of nine bills, the state legislature and Governor Kathy Hochul agreed on a wide-ranging array of policy and spending goals, putting a billion dollars into environmental issues and funding public school districts at a record-high level, while also expanding the use of involuntary commitment to mental hospitals for people living on the streets and adjusting the rules around discovery in criminal trials.
The legislature also moved to give Hochul near-unilateral power to cut up to $2 billion from the spending plan, with the legislature retaining the option to come back to Albany and reverse the cuts if they so choose.
The budget implements a $1 billion tax cut for low- and middle-income residents, lowering personal income tax rates to their lowest levels in nearly 70 years.
Additional relief measures include:
- Tripling of the Child Tax Credit, providing 1,000 per child under age 4 and $500 per child ages 4–16
- One-time Inflation Refund checks of up to $400 for more than 8 million residents
- and Expanded school meal programs, free for all K-12 students
Combined, families could see up to $5,000 in total savings.
New York also is investing $37 billion in public education, the highest level ever. The budget includes:
- A new formula for Foundation Aid, the first major overhaul since its creation
- $340 million to expand free breakfast and lunch to all public school students
- A statewide smartphone ban during school hours in K-12 classrooms
- $47 million for free community college tuition for adult learners aged 25–55 in high-need fields
The budget expands mental health and public safety initiatives including
- $160 million to create 100 new forensic psychiatric beds
- $40 million to grow Safe Option Support teams
- Strengthened Kendra’s Law and involuntary commitment rules
- $357 million for gun violence prevention programs
- Additional funding for synagogue and mosque security
Funding will preserve and expand access to child care.
When it comes to infrastructure and climate investments, the budget includes:
- $1 billion in home electrification, EV charging, and renewable energy
- $500 million for clean water and flood control
- An $800 million boost for highway and bridge repairs
State Comptroller Tom DiNapoli released a statement on May 9 highlighting concerns about the budget’s long-term sustainability. He said, “Market volatility and declining confidence may upend revenue projections and deepen already sizeable outyear gaps.”
He also criticized the budget for lacking cost containment, particularly in Medicaid, and for authorizing $23 billion in backdoor borrowing via public authorities.
While praising efforts to support families and infrastructure, DiNapoli cautioned that the Legislature granted the Governor broad powers to make mid-year spending cuts, which could introduce further uncertainty.
State Senator George Borrello and Assemblyman Andrew Molitor both released statements that were critical of the approved budget.
Borrello called the budget a “missed opportunity” to deal with the state’s spending and addressing public safety concerns. He did support the expansion of involuntary commitment standards and the strengthening Kendra’s Law in addition to the pay off of the state’s $7 billion unemployment insurance debt.
Molitor described his first experience with the state budget approval process as, “…broken, weeks late, shrouded in secrecy and driven by backroom deals that shut out the voices of everyday New Yorkers.” While he said he was pleased with the increase in highway aid and changes to discovery laws, Molitor criticized the level of spending in the budget and the costs associated with the State’s Climate Act.
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