{"id":23413,"date":"2025-10-31T00:26:08","date_gmt":"2025-10-31T00:26:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/23413\/"},"modified":"2025-10-31T00:26:08","modified_gmt":"2025-10-31T00:26:08","slug":"hochul-bailed-out-by-nearly-3b-in-extra-ny-tax-revenue-but-massive-deficits-loom","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/23413\/","title":{"rendered":"Hochul bailed out by nearly $3B in extra NY tax revenue — but massive deficits loom"},"content":{"rendered":"

ALBANY \u2013 Gov. Kathy Hochul<\/a> is crying poverty, even while the state once again saw a massive boom in tax revenue over the first half of the fiscal year \u2014 eclipsing her office\u2019s projections by nearly $3 billion.<\/p>\n

The state is now on track to rake in $259 billion in revenue this fiscal year thanks to the six-month boost \u2014 $2.6 billion more for the 12-month period than Hochul\u2019s budget office had originally forecast.<\/p>\n

Despite the windfall, the governor\u2019s office on Thursday insisted that not all of their budget concerns have come to pass \u2014 as Hochul once again argued she wouldn\u2019t step in to help fund state programs that have taken a hit due to the federal government shutdown. <\/p>\n

\"GovernorWhile New York state hit a massive boom in tax revenue over the first half of the fiscal year, Gov. Hochul still has budget concerns. Matthew McDermott<\/p>\n

\u201cWe\u2019re not going to do those extraordinary measures,\u201d Hochul said when asked about the loss of $650 million per month in SNAP benefits that goes to New Yorkers.<\/p>\n

She did announce the state found $65 million to help out food pantries.<\/p>\n

Earlier this year, Hochul said she was assembling an \u201cinternal SWAT team\u201d of people to \u201cgo through system by system and how they can figure out ways we can manage our government despite these shortfalls,\u201d including people getting kicked off SNAP.<\/p>\n

\u201cI will have a lot of people involved in this. This has to be a whole of government approach,\u201d she said at the time.<\/p>\n

Fiscal conservatives, like Assemblyman Ed Ra (R-Nassau), the top Republican on the Ways & Means Committee, say the increased tax receipts are certainly a positive, but that Dems can\u2019t keep leaning on sunny days.<\/p>\n

\u201cIf they were so worried the sky was falling why did we have the biggest year-to-year increase in spending since the great recession?\u201d Ra said.<\/p>\n

\u201cIf the economy slows and those tax receipts slow, we\u2019re going to have a problem. It\u2019s not going to be D.C., it\u2019s going to be because we year-after-year commit ourselves to non-sustainable spending,\u201d he added.<\/p>\n

An additional $5 billion in tax receipts were also projected for the 2026 fiscal year.<\/p>\n

The budget office is now projecting a $27 billion budget gap for fiscal years 2027 to 2029. <\/p>\n

It had put the same number at $34 billion<\/a>.<\/p>\n

The \u201cBig Beautiful Bill\u201d is expected to add $8.2 billion to the state\u2019s deficits through 2029, per the budget office\u2019s report.<\/p>\n

\u201cIt\u2019s something that lawmakers should tackle and make some smart choices next year during the budget process to rein that in and try to close those gaps that existed even before federal actions were taken,\u201d Patrick O\u2019Recki, Director of State Studies at the Citizens Budget Commission<\/a> said.<\/p>\n

\"TheHochul also told reporters that she wouldn\u2019t step in to help fund state programs that have been affected by the government shutdown. Getty Images<\/p>\n

Democrats in Albany blazed ahead jacking up spending again this year, despite the economic uncertainties on the horizon and looming threats from the Trump administration.<\/p>\n

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Hochul herself pronounced it was a rainy day financial picture earlier this year when touting her and lawmakers\u2019 decision to spend down nearly $7 billion from reserve funds to pay off unemployment insurance debt following a big push by business groups and big unions.<\/p>\n

She\u2019s also fiercely defended a widely-panned move to spend $2 billion handing out $150-$400 checks<\/a> to New Yorkers.<\/p>\n","protected":false},"excerpt":{"rendered":"ALBANY \u2013 Gov. Kathy Hochul is crying poverty, even while the state once again saw a massive boom…\n","protected":false},"author":2,"featured_media":23414,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[15314,426,57,9,24,11,10,49,51,50,87,4281,58],"class_list":{"0":"post-23413","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-citizens-budget-commission","9":"tag-kathy-hochul","10":"tag-metro","11":"tag-new-york","12":"tag-new-york-city","13":"tag-new-york-headlines","14":"tag-new-york-news","15":"tag-new-york-state","16":"tag-new-york-state-headlines","17":"tag-new-york-state-news","18":"tag-politics","19":"tag-state-budget","20":"tag-us-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/23413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=23413"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/23413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/23414"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=23413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=23413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=23413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}