New York

New York

Budget Cycle
Annual  

Governor Submits Budget
Mid-January
Fiscal Year Begins
April 1 

Governor Signs Budget 
By April 1

Budget Links 

FY2027 (proposed)
FY2026 (enacted)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)

Proposed Budget - Fiscal Year 2027

On January 20, New York Governor Kathy Hochul presented a budget for fiscal 2027 calling for total state spending from all funds of $260.0 billion, a 0.7 percent increase compared to updated fiscal 2026 estimates. State operating funds are expected to total $157.4 billion, representing a 5.7 percent annual increase. General fund spending in fiscal 2027 is recommended at $126.8 billion (including transfers), reflecting a 0.4 percent annual growth rate compared to current estimates for fiscal 2026. Meanwhile, federal operating aid is expected to decline 11.4 percent to total $80.8 billion. Receipts from all funds are expected to total $254.5 billion, a 3.1 percent annual decrease. General fund receipts, excluding PTET, are projected to total $125.1 billion in fiscal 2027, a 4.5 percent increase compared to current estimates for fiscal 2026. General fund revenue from taxes only are expected to grow 6.7 percent in fiscal 2027. The budget includes several revenue actions, such as decoupling state business taxes from certain federal provisions, expanding and establishing new tax credits and deductions, extending several expiring tax provisions including the temporary franchise tax rate for large corporations, and enacting PTET flexibility. The closing general fund balance for fiscal 2027 is projected at $47.1 billion; this balance includes $14.6 billion in reserves, including $10.8 billion in rainy day funds and $3.8 billion reserved for economic uncertainties.


Proposed Budget Highlights 
The governor’s “Your Family. Your Future. My Fight.” budget proposal focuses on building a stronger, safer, more affordable New York by investing in priorities including universal childcare, lowering costs, public safety, health care, affordable housing, and infrastructure. The governor’s budget also highlights the state’s AA+ credit rating, the state’s highest rating since 1972, that reduces borrowing costs as well as its reserves for an unexpected downturn. 

Childcare

  • Provides a 53 percent increase in universal Pre-K Aid to make preschool universal for all four-year-olds statewide by the 2028-2029 school year.
  • Directs funding to New York City’s 2-Care program to deliver free childcare for two-year-olds, and to strengthen the city’s existing 3K program.
  • Dedicates additional funding for childcare vouchers to address waitlists.
  • Funds new pilot childcare programs across multiple counties in the state.
  • Launches an Office of Child Care and Early Education.
  • Enhances and reforms the Child and Dependent Care Tax Credit.

Affordability

  • Takes steps to lower vehicle insurance rates and reduce home insurance costs.
  • Proposes actions to bring down utility costs, including investing additional funds into the EmPower+ program to help low- and moderate-income households make energy improvements.
  • Expands state funding for regional food banks and emergency food providers.
  • Establishes a competitive grant program for food pantries to expand their capacity.
  • Proposes legislation to eliminate state income taxes on tipped income, consistent with federal tax guidance.

Education

  • Boosts funding for school aid and continues support for the Universal Free School Meals program.
  • Provides funds for library construction grants.
  • Adds additional operations funding to maintain a tuition freeze for undergraduate students at public four-year colleges.
  • Expands the state’s free community college program.

Health Care

  • Increases spending on Medicaid by 11.4 percent on an annual basis.
  • Provides new capital and operating funding for the existing Safety Net Transformation Program to promote financial sustainability and care quality in safety net hospitals.
  • Disburses Managed Care Organization (MCO) tax revenue to hospitals and health care providers.
  • New health care resources to promote access provided by hospitals and nursing homes.
  • Funds to protect reproductive health care access.
  • Expands the Teen Mental Health First Aid training to all tenth graders statewide.

Public Safety

  • Invests funds in gun violence prevention and subway safety efforts.
  • Provides funding for discovery and defense services.
  • Funds grant programs, including hate crimes grants and law enforcement technology (LETECH) grants.

Housing and Infrastructure

  • Includes funding to accelerate new construction of affordable housing units, taking advantage of recent changes to Federal Low Income Housing Tax Credits.
  • Invests in the MOVE-IN NY homeownership program to build new homes quickly using prefabricated technologies.
  • Provides grants to municipalities to update water infrastructure.
  • Continues to support the “City of Yes for Housing Opportunity” program.
  • Directs capital funding to the Homeless Housing and Assistance Program for supportive housing.
  • Makes new capital funding commitments to support transportation, clean water infrastructure, economic and community development, environmental and clean energy projects, public safety, and higher education.


Proposed Budget Information
Fiscal Year 2027 Budget Proposal

Budget Highlights

Briefing Book

Financial Plan

Revenue Forecast

Governor’s Press Release