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Gov. Hochul’s Budget Could Get Worse

It should say something to Democrats in the state Legislature that Comptroller Thomas DiNapoli already has reservations about state spending in Gov. Kathy Hochul’s 2026-27 budget proposal.

The budget increases all funds spending to $260 billion in 2027 while the state’s operating budget increases to $157.6 billion. 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.

Comptroller Thomas DiNapoli said the budget still pushes out-year budget gaps to an estimated $27.5 billion, which can be a problem if Wall Street-driven tax receipts don’t keep up their current pace or if federal dollars that flow to New York to pay for programs are cut further. Disruptions eventually make their way to state residents and businesses in the form of new taxes or fees – something that flies in the face of the governor’s Affordability Agenda.

“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,” said Assemblyman Joe Sempolinski, R-Canisteo.

We couldn’t agree more. We are under no illusion that Democrats in the state Legislature will do so. Typically, the governor’s budget is a baseline that is added to, rather than subtracted from, as budget deliberations begin. In our opinion Hochul’s budget is already too expensive. Democrats in the state Legislature need to show some fiscal restraint. If Democrats want to add programs or money for schools or Medicaid, they should find corresponding cuts to the budget to at least keep the budget at an already too expensive $157.6 billion rather than simply adding to the out-year budget gaps that DiNapoli is warning them about. Hochul showed last year she’s willing to hold up a budget if she doesn’t get the policy she wants. She should do the same if spending levels increase beyond her proposal, too.

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