Federal Budget Cuts Shouldn’t Have Been A State Budget Emergency
On the surface, one would think state officials would be justified in their consternation over state budget cuts blowing a $750 million hole in New York’s 2025-26 state budget.
They’re not.
Everyone knew the 2025-26 state budget wasn’t worth the paper it was printed on. Between DOGE-driven cuts and what most reasonable people knew was coming in the federal budget bill crafted by President Trump and approved by Congressional Republicans, there was no way prior levels of federal funding for state programs was going to remain in place. New York’s leadership knew this. There were noises in March and April about the potential need for a special session to deal with budget cuts. State lawmakers talked about the possibility that the budget would need to be tweaked.
The budget increases spending 12.5% to a total of $254 billion. Keeping the state’s budget increases even close to the rate of inflation would have freed up money that could have made the cuts to the state budget unnecessary. And yet Democrats in the state Legislature and Gov. Kathy Hochul approved a budget full of potential cuts – Hochul’s inflation refund checks to state residents alone totals $2 billion this year. New York’s film tax credit has been doubled to $800 million. The budget includes $1 billion in capital funding for environmental projects, which includes: $450 million for greenhouse gas reduction retrofits in buildings, $200 million for renewable projects, $100 million for the purchase or conversion of zero-emission school buses, and $100 million for electric vehicle charging projects.
What we’re saying is finding $750 million really shouldn’t be that hard. It’s not exactly finding change in the couch cushions, but it’s also not the Herculean effort the governor is making it out to be. The real problem is next year, when federal spending cuts stand to cost the state $3 billion. It’s time for New York state to start living within its means – and that means the words “record increase” shouldn’t appear anywhere in next year’s state budget.