NYS Capital — New York Governor Kathy Hochul presented her FY2027 Budget proposal on Tuesday, totaling roughly $260 billion, about $6 billion more than FY2026.
The Governor’s spending plan comes a week after her 2026 State of the State proposal, focusing on universal childcare, public safety and ghost guns, child online safety, immigration and more.
You can read the Budget Book here.
The Governor is not proposing to raise income taxes, but, the corporate tax rate, which through legislation had lowered on January 1st, will be extended at its previous level of 7.25% for three more years.
As for Childcare, the Governor is proposing to invest an additional $4.5 billion to expand access and reduce costs: “I can fund this expansion in the near term, because the revenue is there, not pretending to be able to predict enrollment, utilization or federal policies five years from now,” the Governor said.
Childcare:
$3 billion in childcare voucers to address waitlists
$60 million pilot program for counties outside NYC
—Dutchess, Monroe, Broome
$500 million over two years for NYC’s 2-Care program
Hochul is proposing to increase foundation aid to add to what schools already receive under the current plan and formula.
“Now I want to be clear about something. Funding alone does not guarantee outcomes. That’s why we combine historic investments with common sense reforms and changes. Something as simple as getting cell phones out of classrooms so kids start paying attention to teachers and learning again,” Hochul said.
Per Budget Director Blake Washington, the cost drivers in budget are:
11.4% Medicaid: Nursing Homes-hospitals to combat federal volatility|
4.3% School aid
5.7% State Operations Spending
-investment in childcare, school aid, Medicaid
Federal funding decrease by 11.4%
-expiration of pandemic-era aid, FEMA aid
The Budget proposes tax actions:
-Decouple state business taxes from certain HR1 provisions
-Simplifying and enhancing the child and dependent care tax credit
-Extend corporate rate surcharge for additional 3 years, through 2029
Watch here:
Stay tuned to this article for live updates as the Governor unveils her proposal.