The Governor's remarks as prepared are available below:
Good afternoon everyone. First, I want to thank my extraordinary senior team — Secretary to the Governor Karen Persichilli Keogh. Budget Director Blake Washington, you’ll be hearing more from him in a little bit. Counsel Brian Mahanna. I’m also proud to welcome two new members of my senior team — Director of State Operations Jackie Bray, who many have you know from her stint as Commissioner for the Division of Homeland Security and my new policy director Emma Vadehra.
I want to thank my partners in the Budget process, the Leader of the Senate Andrea Stewart-Cousins, the Speaker of the Assembly Carl Heastie. If the last five years has taught us anything it’s that we’ll be spending many hours in this room over the next few months all in the common effort of fighting for New Yorkers.
I’d also like to acknowledge: State Comptroller Tom DiNapoli, Senate Deputy Majority Leader Michael Gianaris, Senate Finance Chair Liz Krueger, Assembly Ways & Means Chair Gary Pretlow, Senate Minority Leader Rob Ortt, Assembly Minority Leader William Barclay, Senate Finance Ranker Senator O'Mara, Assembly Ways & Means Ranker, Assemblyman Ra.
Last week, I laid out our ambitious agenda for 2026, our vision for a stronger, safer, more affordable New York. Today I’m here to show you how we’ll fund it responsibly in our Fiscal Year 2027 Executive Budget. A budget is more than figures on a page. It’s a statement of priorities, a test of discipline. And this year with so much uncertainty coming out of Washington it must be a plan that can hold up under pressure.
Over the last four years, we’ve proven something important: You can make historic investments without raising income taxes, without mortgaging the next generations, and without losing sight of what people can afford. Taxpayer money is earned with New Yorkers’ sweat, on long days, late nights, and early mornings. So, we are obligated to be responsible stewards while also investing to build an even better future.
For years the biggest threat to our budget was a potential recession. And we planned carefully to protect New Yorkers from that risk. But the newest and most unpredictable challenge is something very different: Direct attacks on states by the Trump administration. The federal government’s relationship with states has never been simple. But for decades, there was a basic trust. When states stepped up to deliver federal programs the federal government would be a reliable partner.
In one year, the Trump Administration has shattered that trust. Time and time again, Congressional Republicans, including seven from our own state, have failed to stand up for the people who elected them. They have the power to stop the bleeding but refuse to fight for their constituents. And across the country we’re seeing real consequences for working families no matter who they voted for.
That’s why this year’s budget reflects two realities at the same time: We do have REAL momentum here in New York. And we have volatility on the road ahead so we have to be vigilant. That vigilance matters because New York’s recovery after the pandemic was not automatic. It was built on careful choices, an equitable tax system and an economic climate that encourages growth. That balance helped restore confidence, created one million private sector jobs since I was elected Governor and put our state on stronger footing. But that success is not guaranteed. That’s why this Budget is built to protect what’s working while preparing for uncertainty ahead.
So let me start with the big picture. This Executive Budget totals $260 billion in All Funds spending an increase of 0.7 percent. Spending is up very slightly and that’s primarily to offset federal cuts especially to healthcare.
That’s because federal funds in this budget are down roughly $10.3 billion. That’s an 11.4 percent decrease from just last year. Some of that was pandemic relief that we knew would run out. But $3 billion of it is recurring Medicaid funding money that New York depends on to provide care for millions of people. The scope of these federal cuts would be far worse if we had not stood up to the Trump Administration successfully blocking at least $4 billion in additional cuts and freezes in court and through the bully pulpit. That includes attempted cuts to law enforcement grants, safety net programs, and infrastructure projects that deliver good union jobs.
To help offset these federal cuts State Operating Funds will have to increase to $157.6 billion. We’re ensuring that vulnerable New Yorkers don’t lose essential care and we’re doing it while still protecting our taxpayers. Once again there are no income tax increases on New Yorkers.
And this budget maintains reserves at $14.6 billion. Let me take a minute to put that number into context. When I came into office in 2021, we had about $2.5 billion in reserves. Over the last few years we built our reserves to the gold standard of responsible budgeting strong enough to protect New York in a downturn and flexible enough to act when families and businesses needed help.
Last year, working with our leaders, we made a deliberate decision to use a portion of those reserves to pay down $7 billion in unemployment insurance debt. That lifted a major burden off small businesses while increasing benefits for workers who are laid off from their jobs. In other words we built up those rainy-day funds for a reason. And when it started raining we used them. Even with this draw down our reserves remain healthy.
We still have the highest reserves of any Administration in state history.
And this budget continues to protect New York’s fiscal stability. Revenues have continued to exceed projections driven in part by record Wall Street bonuses. That reflects a basic reality of New York’s tax system. We already have the most progressive tax structure in the country which means when the economy is strong and particularly when high net worth individuals and employers earn more, our revenues rise.
And that’s why we’re able to invest more without asking New Yorkers to pay more.
But let me be clear about something else: This is not an austerity budget. But it is a disciplined one. We’re continuing to invest in the core services New Yorkers rely on while keeping the growth of State Operating Funds at a responsible level.
Over the past year, we took a hard look at programs that had grown out of control
Not to take services away but to make sure taxpayer dollars are actually reaching the people they’re meant to serve.
One example is CDPAP. It's a program that provides critical care for vulnerable New Yorkers but one that was created with absolutely no oversight. Its growth was exponential, driven by lax rules and in some cases even fraud. Expenses went out of control and jeopardized the viability of this vital program. We said: “Enough is enough.” Cut out the abuse and brought the program back in line.
Our reforms are working. The people who need care are getting it. We put the program on the path to long-term fiscal stability. And by controlling overhead costs we’ve found nearly $1.2 billion in savings twice what we expected. And what did we do with those savings? We used them to stabilize Medicaid at a moment when the federal government is pulling billions in support.
Let me explain what that means. Medicaid is one of the largest drivers of state spending. Nearly half of New Yorkers rely on publicly-supported health coverage: Seniors, children, people with disabilities and working families. But this year the Trump Administration declared war on states and slashed federal support that had been in place since the 1960s. We saw the impact of that decision almost immediately.
Over the summer we were forced to make tough decisions to protect care and keep our system stable. Yes the state did step up absorbing $750 million in costs the federal government walked away from. The President’s “Big Ugly Bill” will blow a $3 billion hole in Medicaid in this Budget year alone. Clearly we could not have planned for this when Donald Trump took an oath of office literally one year ago today.
But here’s how we’ll deal with it. We will continue to look for ways to improve efficiency across the health care system because bending the cost curve matters. But we won’t shift costs onto families or leave vulnerable communities without a lifeline the way Washington has. That’s not who we are. This Budget takes a balanced approach — protecting services supporting providers and managing growth responsibly.
As federal policy shifts, we will continue to protect New Yorkers while being honest about what the state can and cannot absorb alone. And even as we manage these challenges we’re still investing to help working families get ahead. That starts with putting more money back in people’s pockets. This year New Yorkers are paying the lowest middle class tax rates in nearly 70 years. And we’re ending state income taxes on tips so service workers can keep more of what they earn. If you’re working long shifts, nights, or weekends those tips should help you pay the bills not get taxed away.
And we’re extending that same relief to our farmers.This budget includes $30 million in targeted relief for New York farmers impacted by federal tariffs especially dairy and specialty crop producers. That support will provide about $3,000 on average to help offset rising costs and keep family farms operating.
Now let’s shift to one of the biggest pressures on family budgets: child care. When I took office, the State was spending about $832 million on child care subsidies nowhere near enough to meet the needs of working families. As New York’s first mom Governor this is personal for me.
Since taking office through sustained and deliberate investment New York has spent more than $8 billion on child care and early education. This year, we’ll invest an additional $4.5 billion in child care to expand access and reduce costs for working families. We know that New York City and the rest of the State have different needs and different infrastructure when it comes to childcare and they require different solutions. In New York City, we'll invest $500 million to fully fund the first two years of Universal 2-Care while continuing to support the promise of Universal 3-K.
Statewide, we’re investing $1.3 billion in a different but equally ambitious approach. First, we will make Universal Pre-K available for every single four-year-old by 2028. We’ve been building toward this for years. Today, roughly 75 percent of the four-year-olds we expect to serve are already enrolled in Pre-K.
And to meet families’ needs before that age this year we’ll pilot community-wide child care to provide year-round, full-day affordable care for newborns to 3 year olds. And we’ll build on the proven success of our Child Care Assistance Program and our voucher programs so tens of thousands more families can access high-quality care for no more than $15 per week.
Now I want to be clear: We can fund this expansion in the near term because the revenue is there.We are not pretending we can predict enrollment utilization or federal policy five years from now.
So we’re doing what responsible government does: Using existing resources today and building toward long-term sustainability. But know that my commitment into the future is there. Our commitment to our kids doesn’t end when they age out of childcare.
This budget invests in the next generation with nearly $40 billion in school aid. And we’re continuing to ensure that higher-need districts are funded appropriately. After sixteen long years of previous administrations coming up short I made the decision to fully fund Foundation Aid giving schools certainty without significantly driving up local taxes.
Many of these districts are in high need or rural areas of the state and don’t have other ways to raise revenue. That’s why we’re once again increasing Foundation Aid on top of the amount schools would receive under the existing formula.
Now, I want to be clear about something: Funding alone doesn’t guarantee outcomes. That’s why we’ve paired historic investments with common-sense reforms like getting cell phones out of classrooms so kids start paying attention to their teachers and returning to back-to-basics instruction in reading, an approach we’ll expand to math this year.
And remember our Universal School Meals program that we launched last year? It was so popular that demand far exceeded our expectations. So we’re expanding access with a $395 million investment for year two. That’s $50 million more than last year. Because no child should have to worry about where their next meal is coming from. Full stop.
We’re also protecting affordability at SUNY and CUNY. I saw the power of a college education through the opportunities it unlocked for my own family. That’s why this budget continues a tuition freeze and provides campuses with an additional $90 million in operating support so they don’t have to raise costs on students and families.
We’re proud of our free community college program already helping adult learners get the skills they need for good-paying jobs. To build on that success this budget increases funding from $47 million to nearly $60 million expanding access to new high-demand fields. We’re also updating eligibility requirements so New Yorkers who already have a degree in another field can retrain as nurses and help meet our workforce demands faster.
New Yorkers deserve a high quality education just as they deserve a safe and affordable place to call home. While we’ve made real progress my commitment to tackling New York’s housing crisis is stronger than ever. We are now in year five of our $25 billion housing plan. I’m happy to report we’re closing in on the home stretch and we will meet our goal of 100,000 new or preserved homes which we expect to meet within the next year.
I want to build on that success.
That’s why before our five year plan concludes, I wanted to invest another $250 million for affordable housing to keep projects moving and further expand supply. And we’ll provide $100 million for MOVE-IN NY helping families move into high-quality, factory-built starter homes built quickly at nearly half the cost of traditional housing. We’re also investing $50 million in our Resilient and Ready program to protect housing from flooding and extreme weather.
And an additional $25 million for the Homeless Housing and Assistance Program bringing our total commitment to $153 million so we can continue supporting our most vulnerable neighbors.
You heard me talk about affordability, education , healthcare, and housing. But the foundation for all of it is keeping people safe. We’ve made record investments in crime-fighting strategies that work and the results are real.
This budget builds on what works:$352M for gun violence prevention and $77M to strengthen subway safety. We’ll also invest $35M in Securing Communities grants to protect houses of worship and vulnerable organizations.
And the final policy I want to address is something that’s very important to me personally: forging a cleaner and greener future for our children and grandchildren.
Knowing the threats that our environment faces during my very first month in office I added $1.3 billion to the Environmental Bond Act bringing the total to $4.3 billion. That investment is already delivering protecting drinking water, upgrading aging infrastructure, and creating jobs in communities across the state.
This year, I’ve decided to go much bigger, extending our commitment with a new $3.75 billion, five-year investment in clean water infrastructure. It protects public health and supports the building of housing that New Yorkers need.
Let’s take a closer look at how these priorities are reflected in the numbers and to walk us through the plan I’d like to invite our Budget Director, Blake Washington, to the podium.
[BUDGET DIRECTOR BLAKE WASHINGTON SPEAKS]
Thank you, Blake.
I need to underscore something Blake just talked about. New York State is receiving $17 billion in revenue over the next two years that exceeds earlier projections. That’s $17 billion from high income earners, from record Wall Street bonuses. and from an economy that’s booming again.
That’s the money we will use to protect New Yorkers from federal dysfunction and fund our bold agenda for the year ahead.
It allows us to keep reserves strong so we can continue to fund our priorities for tomorrow.
That’s why for the last five years I’ve focused on a pro-growth agenda that keeps New York competitive. Because that’s how we fund a strong social safety net for New Yorkers who need it and expand programs that help families afford the essentials like child care.
Looking at this budget as a whole, you can see it reflects discipline, momentum, ambition, and readiness for a more uncertain world.
In my State of the State address I said we had built the boat to withstand the storm. We are not assuming calm seas ahead. We are steadying our course to navigate whatever comes next.
We’re making careful choices and using our resources responsibly. Because protecting your family and protecting your future is my fight.
And this budget is how we get it done.
Thank you.
