New York Gov. Kathy Hochul is presenting a $260 billion budget for the fiscal year that starts April 1, opening the annual tango with state lawmakers over tax-and-spending decisions and new policies.
Hochul is outlining her plans in a speech that began at 1 p.m. Tuesday, Jan. 20, at the Capitol in Albany, as her administration rolled out the 10 bills that make up the budget. The state’s current spending plan — finalized by the legislature and Hochul last May 9, 39 days past the deadline — totaled $254 billion.
What Gov. Kathy Hochul plans for NY state spending, taxes
Hochul already forecast priorities for her fifth budget as governor in her State of the State speech a week earlier. They include a huge boost in spending on subsidized child care and pre-kindergarten classes to relieve one of the biggest cost burdens for New York’s working parents. Funding for care subsidies alone would jump by $1.2 billion in her multi-part plan.
Among the policy objectives to be detailed in Hochul’s budget is her proposal to speed housing construction by waiving required environmental reviews for certain projects — a hurdle that prolongs the approval process and ultimately raises home costs. The goal is to jolt the state’s housing supply and tame home costs as a result.
Hochul also has pledged to include legislation to enable New Yorkers to bring civil lawsuits in state court against federal immigration agents who are accused of violating someone’s constitutional rights. The governor declared support for that type of legal recourse after 37-year-old mother Renee Good was shot to death by a federal officer in Minneapolis on Jan. 7.
Hochul’s budget must account for additional costs New York will absorb as a result of the massive package of tax and funding cuts that President Donald Trump and congressional Republicans enacted last July. State budget officials estimated in October that the initial impact of that federal law would be a $3.4 billion cost increase for the coming fiscal year.
Her budget speech can be viewed online at https://www.governor.ny.gov/.
Details in the NY state budget summary
Hochul had signaled she wouldn’t propose tax increases or new taxes to pay for the spending increases. The budget summary provided in advance by her office confirmed that she’s not seeking to raise taxes.
According to that 140-page document, New York has been buoyed by higher-than-expected collection of personal income taxes. That unanticipated revenue is projected to total $3 billion for the current fiscal year and $5.1 billion for the year that starts April 1.
That windfall, combined with a drop in spending estimates for this year, are expected to yield surpluses of $2.4 billion this year and $3.5 billion next year, state budget officials project.
Other highlights from the budget summary:
Hochul didn’t propose closing any other prisons due to staff shortages and a reduced incarcerated population, as she did each of the last year. She did budget $425 million to increase both fixed and body-worn cameras in prisons, and to revamp an internal investigations office. Those plans follow a pair of high-profile deaths in prisons in December 2024 and March 2025.
This story has been updated with new information
Chris McKenna covers government and politics for The Journal News and USA TODAY Network. Reach him at CMcKenna@usatodayco.com.
This article originally appeared on Rockland/Westchester Journal News: Hochul presents NY budget. What to expect on taxes, spending
Reporting by Chris McKenna, New York State Team / Rockland/Westchester Journal News
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