Governor Kathy Hochul presents her 2026-27 State Budget proposal
Governor Kathy Hochul has proposed a record $260 billion state budget.
The Executive Budget projects State revenue collection to increase by 9.9% with fiscal year 2027 spending projected at $260 billion which is an increase of 0.7 percent. The State’s reserves are currently at $14.6 billion for an unexpected downturn or “rainy day.” The proposed budget does not raise income taxes.
Hochul focused on affordability for families in the budget with the following proposals:
– $4.5 billion total statewide in child care and Pre-K services, including $1.7 billion in new investments statewide
– Over $3.2 billion in child care vouchers statewide to address waitlists
– Enhance and reform the Child and Dependent Care Credit, providing 230,000 filers with an average increase in benefit of $576
The Governor’s budget also aims to crack down on fraud to lower vehicle insurance rates, reduce rising home insurance costs by increasing accountability and transparency for insurers; expanding automatic discounts for homeowners and housing providers who invest in damage mitigation measures for their homes or multifamily properties; and tackle utility costs by demanding strict fiscal discipline from utilities. The budget also proposes eliminating New York State income tax on tipped wages, up to $25,000 per year. Under the proposal, the benefit will begin when New Yorkers file Tax Year 2026 returns.
Under education, Hochul has proposed $39.3 billion in school aid which is the highest level in state history. The proposal ensures each school district will receive an increase in Foundation Aid.
Other items under education in the budget include:
– $1.6 billion for Universal Pre-K Aid in 2027, a $561M (53%) increase over 2026 levels
– $395 million for year two of the Universal Free School Meals program
– An expansion of back-to-basics learning to math: transforming math learning through quality instruction and professional learning
– $34 million for library construction grants
– An additional $90 million in support to maintain a tuition freeze for resident undergraduate students at SUNY and CUNY four-year colleges
– $12.5 million to expand the free community college program
Infrastructure items in the budget include $1.4 billion for local roads and bridges which includes $648 million for the Consolidated Local Street and Highway Improvement Program (CHIPS), $140 million for the State Touring Routes Program, and $100 million for the Pave Our Potholes Program
Hochul’s budget also aims to bolster food access by including:
– $66 million for the Hunger Prevention and Nutrition Assistance Program (HPNAP) to expand funding to the State’s network of regional food banks and emergency food providers
– $55 million for the Nourish NY Program
– $10 million to combat food insecurity through NY PLATES, a new capital grant program for food pantries, food banks, and other hunger prevention organizations
– Upgrading New York’s EBT cards to secure chip-based technology that makes cards virtually impervious to mass skimming of Supplemental Nutrition Assistance Program (SNAP) benefits.
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