Key Takeaways:

New York Governor Kathy Hochul’s budget address marks the start of the New York budget process, outlining her fiscal agenda for the year.

The New York budget process allows the governor to introduce 30-day amendments, enabling updates to the executive budget proposal in response to legislative feedback or changing economic conditions.

By late February, the legislature introduces New York One House Amendments, which reflect each chamber’s fiscal priorities and make it easier to track changes in the budget bills.

After both chambers pass their versions, final negotiations on the New York budget process take place among legislative leaders and the governor, with the goal of passing the budget by March 31.

This week, New York Governor Kathy Hochul (D) delivered her budget address, providing high-level details about her proposed budget (language still to be released). New York has unique budget procedures and understanding it can be difficult. Here’s a primer on how the  process works.

The New York Governor’s Budget Address and Initial Process

The New York budget kickoff happens at the beginning of the session when the governor delivers a budget address to the legislature. In the speech, the governor outlines the broad strokes of their fiscal agenda. There is no statutory requirement for the timing of the speech, but it usually happens in mid to late January (this year it was February 1). 

30-Day Amendment Period and Executive Changes

At any time within thirty days of submitting the executive budget and budget bills to the legislature, the governor may amend or supplement the financial plan or any of the bills. These changes to the executive’s budget proposal are known as 30-day amendments. After this period, the governor must obtain approval from the legislature to make further amendments. Why would the governor offer a 30-day amendment? Reasons may include pressure from the legislature or new economic circumstances.

Legislative Chamber Amendments and Bill Structure

By the end of February, each legislative chamber will offer its own version of the budget with “One House Amendments.” These amendments represent the fiscal preferences of the majority caucus in each individual chamber. One convenient aspect of the way New York drafts the budget bills is that each policy proposal gets its own bill section. If a policy is stripped out during the amendment process, then the now-empty bill section will say, “Proposal Removed.” This makes it easier to track what provisions are still a going concern.

Final Negotiations and Budget Deadline

The bills then go through the normal legislative process of hearings and floor debate. After both chambers have passed their versions, they will go to a conference committee to resolve any inter-chamber differences. The big decision, however, comes when the Senate President, the Speaker of the House, and the governor all gather behind closed doors to finalize negotiations. 

The final budget is due by March 31, the end of New York’s fiscal year. While late budgets are relatively common in other states, New York has tended to pass its budgets on time. 

Track and Influence State Tax Policy

Tax policy can be one of the most challenging areas for government affairs executives. MultiState’s team understands the issues, knows the key players, and helps you effectively navigate and engage. We offer a customized, strategic solution to help you develop and execute a proactive multistate tax legislative agenda. Learn more about our Tax Policy Practice.Â