Gov. Kathy Hochul has a different view of state spending than the area’s state representatives or state Comptroller Thomas DiNapoli.

Hochul’s budget proposal projects state revenue collection to increase by 9.9% and 2027 all funds spending to be $260 billion, an increase of .7% percent. Reserves are maintained at $14.6 billion, while stronger performance on Wall Street is driving higher tax revenue that pays for increased spending on programs Hochul is proposing.

Hochul said the budget also replaces $10.3 in federal funding – including $3 billion in recurring federal funding – that has been cut from the federal budget for grants to law enforcement, safety net programs and infrastructure.

To help offset those federal cuts, state operating budget money increases to $157.6 billion.

That didn’t sit well with state Sen. George Borrello, R-Sunset Bay.

“After several years of massive spending increases, this budget once again grows government to an irresponsible level,” Borrello said. “At $260 billion, it is $6 billion larger than last year’s enacted budget, with state operating spending at $157 billion, nearly 6% higher than last year, approximately twice the rate of inflation. New Yorkers were spared a deep budget hole this year not because of fiscal discipline in Albany, but because of the continued strength of Wall Street and higher-than-expected tax revenues driven by the national economy. While Governor Hochul repeatedly criticized our federal leaders in Washington during her budget address, it is the pro-growth agenda of our president and congressional leaders that has saved New York from having to make spending cuts.”

Based on the updated economic outlook and tax collections to date, the state Division of the Budget has increased expected tax receipts to $3.8 billion in 2026 and $5.7 billion in 2027, with comparable increases in subsequent years. Blake Washington, state Division of Budget director, said the expected tax receipts are enough to eliminate the $4.2 billion 2027 budget gap projected in the 2026 mid-year budget update, reduce outyear budget gaps, and fund the proposed child care expansion initiatives.

Assemblyman Joe Sempolinski, R-Canisteo, said New York’s budget is $254.3 billion for 19.87 million people compared to Florida, which will spend $114.7 billion for a population of 23.3 million, and Texas, which will spend $169 billion to provide services for 31.9 million people. According to the U.S. Census Bureau, Sempolinski said, New Yorkers are moving to Texas and Florida to escape the high cost of living in New York.

Sempolinski said he’s very concerned about the level of spending in the governor’s budget, particularly an 11.4 % increase in Medicaid spending. County governments help pay for Medicaid, so any increase impacts property taxes. He’s also concerned about the governor’s “projections” of higher than anticipated sales tax revenue and revenue from Wall Street to pay for the budget hike.

“I think it’s important to point out that this budget, as bad as it is, is as good as it’s going to get. The budget will only go up from here as far-left members of the Democrat majority push for more spending,” Sempolinski said.

Comptroller Tom DiNapoli agreed with Sempolinski and Borrello on out-year budget gaps. While the comptroller will be releasing an in-depth review of the budget, he said Hochul’s efforts to improve affordability, speed up housing construction, expand child care, address food insecurity, address energy costs and invest in clean water will come at a cost.

“While commendable, the state’s long-term fiscal challenges persist, as spending growth remains above inflation and the state’s economy and finances continue to be disrupted by actions taken in Washington,” DiNapoli said. “Out-year budget gaps are estimated to be $27.5 billion. “Policymakers will face a complicated task crafting a budget this year given the heightened uncertainty in the economy and the prospect of even more unfavorable federal policy changes. It will be important to evaluate how budget proposals impact the costs businesses and residents are facing while also protecting essential programs and services that New Yorkers rely on.”

Borrello also questioned Hochul’s Medicaid spending. While the federal government is limiting Medicaid program spending, Borrello said Hochul is replacing that spending without corresponding spending cuts or efforts to reduce fraud in the program, including Non-Emergency Medical Transport or some adult day care programs that Borrello said are magnets for fraud and abuse.

“And despite all the rhetoric about ‘affordability’, this budget contains no broad-based tax relief that would actually help families, seniors, and small businesses keep up with the cost of living,” Borrello said. “What New Yorkers can safely expect is that this budget will only grow larger as it moves through the Legislature, with the Democrat majorities in the Senate and Assembly sure to add billions more in spending, and possibly even new taxes, to satisfy their newly-emboldened DSA allies. Once again, Albany is betting that bigger government and higher spending will somehow fix the problems caused by bigger government and higher spending.”