The 2026-27 state budget for New York, totaling $268.5 billionwas approved this week after a contentious and delayed negotiation process. The budget, which was due on April 1, was passed 57 days late, marking the latest budget approval in 16 years. This delay has sparked calls for reform in the budgeting process, with lawmakers from both sides of the aisle expressing their dissatisfaction.
The budget includes substantial policy changes that go beyond mere funding allocations. It addresses the state’s climate lawimposes limits on federal immigration agents, and introduces changes to utility rate processes and auto insurance aimed at making the state more affordable. However, the most contentious aspect of the budget was the negotiating process itself, which has drawn criticism from various quarters.
The Negotiation Process and Its Controversies
The traditionally secretive negotiations between Governor Kathy Hochul and legislative leaders, coupled with their decision to waive the state constitutional requirement for a three-day public review period, have once again prompted calls for a change in the process. This year, these calls came from lawmakers on both sides of the aisle, as well as legislative leaders who have vowed never to repeat the experience.
Governor Hochul has defended the delay, stating that a good budget is more important than an on-time budget. She has blamed the process and the short timeline for the delay, asserting that New Yorkers care more about the content of the budget than its timeliness. However, critics argue that the delay creates uncertainty for schools and local governments, which must estimate state aid as they create their own budgets.
Key Policy Wins for Governor Hochul
Despite the controversies, Governor Hochul secured several major policy wins in the budget. She successfully pushed through measures to reduce auto insurance rates, increase access to childcare, and mandate prekindergarten statewide. Additionally, she managed to delay parts of the state’s landmark climate law, which aims to fight climate change by lowering emissions.
In a move that could bolster her reelection campaign, Hochul fended off calls for increased income taxes on wealthy New Yorkers. Instead, the budget enacts a tax on second homes in New York City worth at least $5 million. This tax, along with the childcare expansion and billions of dollars in aid for the city, are seen as wins for Mayor Zohran Mamdani, a Democrat and a political ally who could help boost election turnout.
The budget also includes pension sweeteners for more than 787,000 public workers hired after 2012, which could further aid Hochul’s reelection campaign. However, the delay in the budget process has raised questions about the effectiveness of the current system and the need for reform.
Reforms and Future Implications
The late budget also means less time for the Senate and Assembly to pass other legislation before the last scheduled day of the legislative session on June 4. Leaders plan to be in session through June 5, with early voting for the June 23 primary elections starting on June 13. There are thousands of local measures and bills under consideration, including proposals to reduce plastic packaging, allow portable solar devices, and ban the use of surveillance pricing at grocery stores and pharmacies.
Critics argue that the governor’s tactics, such as holding up the budget over policy and adding policy changes mid-process, are examples of executive overreach. Blair Horner, senior policy adviser with the New York Public Interest Research Group, described the changes to the climate law as an egregious example of this overreach. He emphasized the need for transparency and public input in the budgeting process.
Despite the grumbling, there is no sign that any steps will be taken this year to reform the process, as all 213 legislative seats are up for election in November. However, the growing dissatisfaction among lawmakers suggests that changes may be on the horizon in the future.
