Proposed Budget - Fiscal Year 2026
On January 21, New York Governor Kathy Hochul presented her budget recommendation for fiscal 2026 calling for total state spending form all funds of $252.0 billion, a 3.6 percent increase compared to revised fiscal 2025 estimates. State operating funds (including general funds as well as state-funded special revenue funds and debt service funds) are expected to total $143.8 billion, representing a 7.9 percent annual increase. General fund spending in fiscal 2026, is recommended at $116.3 billion, reflecting a 7.3 percent increase compared to current estimates for fiscal 2025. Meanwhile, federal operating aid is expected to decline 6.4 percent to total $87.0 billion. Receipts from all funds, excluding the pass-through entity tax (PTET) that is meant to be revenue neutral, are expected to total $249.6 billion in fiscal 2026, reflecting 2.1 percent annual growth. General fund receipts, excluding PTET, are expected to total $111.2 billion in fiscal 2026, reflecting a 1.8 percent decrease that is driven mainly by the winddown of temporary federal receipts that had been deposited into the general fund in prior years. General fund revenue from taxes only is expected to increase 2.3 percent in fiscal 2026. Excluding the PTET reserve and the reserve for extraordinary monetary settlements to fund existing commitments, the state is projected to end fiscal 2026 with a general fund cash balance of $31.5 billion, including rainy day reserves of $9.8 billion and $11.3 billion reserved for economic uncertainties.