Enacted Budget – Fiscal Year 2027
New York Governor Kathy Hochul signed the state’s fiscal 2027 budget into law on May 28. The budget for fiscal 2027 calls for $277.0 billion in spending from all funds, a 7.0 percent annual increase, and $161.1 billion in state operating funds, an 8.3 percent increase over fiscal 2026. General fund spending, including transfers, is expected to total $128.8 billion in fiscal 2027, a 3.4 percent increase over the prior year. All funds receipts are projected to total $270.6 billion, a 1.8 percent annual increase, while general fund total receipts are projected at $127.2 billion, a 2.8 percent increase. The state estimates a general fund ending balance of $54.6 billion, including the rainy day fund and other reserves. Principal reserves, which include the two statutory rainy day funds – the Tax Stabilization Reserve and Rainy Day Reserve – and the Reserve for Economic Uncertainties, are projected to total $15.1 billion in fiscal 2027.
The enacted budget invests in numerous gubernatorial priorities. For childcare, the budget expands universal pre-K for four-year-olds, supports 3K expansion in New York City for 3-year-old children, increases childcare subsidies, supports early childhood educator preparation, and launches an Office of Childcare and Early Education. To promote energy affordability, the budget authorizes one-time energy rebate checks for approximately 8.2 million taxpayers and advances other reforms to reduce energy costs. The budget makes record investments in public safety, including additional funds for law enforcement across the New York City subway system, youth diversion programs, and measures to address illegal homegrown guns. Additionally, the budget funds hunger prevention and nutrition assistance, as well as provides tariff relief to farmers. The budget incorporates legislation eliminating state income tax on up to $25,000 of tipped income, consistent with federal tax guidance. The budget also includes new capital funding commitments for environmental and clean energy initiatives, transportation, clean water, affordable and supportive housing, economic and community development, health care, public safety, and higher education.