ALBANY – State Comptroller Thomas DiNapoli is warning lawmakers that Governor Kathy Hochul’s proposed $260 billion Executive Budget for fiscal year 2027 depends on strong but potentially short-lived economic conditions, even as long-term structural budget gaps continue to grow.
In the report, DiNapoli’s office said higher-than-expected tax revenues, driven largely by Wall Street bonuses, have produced a projected $2.4 billion General Fund surplus this fiscal year and a $3.5 billion surplus for 2027. The report cautions that those surpluses obscure deeper fiscal challenges looming ahead.
“The Executive Budget for the upcoming state fiscal year comes at a time of unusual fiscal uncertainty, caused largely by federal policies that have injected unnecessary volatility into the state and national economies, and disruptive changes in the state’s relationship with the federal government,” DiNapoli said. “These policies will result in lost funding and increased costs to the state and could deal a devastating blow to hundreds of thousands of New Yorkers with the loss of health coverage, nutritional assistance, safety net protections and more. As negotiations commence, policymakers need to proceed with caution as they work on balancing the budget, improving affordability, and maintaining vital services for New Yorkers.”
Per DiNapoli’s Office, budget gaps are forecast at $6 billion in 2028, $9 billion in 2029, and $12.5 billion in 2030. Much of that growth is driven by Medicaid, the state’s largest spending category. DiNapoli also said actions in Washington are adding fiscal pressure that could further strain the state’s economy and finances.
“Comptroller DiNapoli is doing the job Albany too often avoids, telling the truth about the numbers,” Assemblyman Karl Brabenec (R,C-Deerpark) said. “New Yorkers can’t afford a budget that spends faster than we can pay for it, and as Assistant Minority Leader, I’ll keep fighting for a common-sense plan that protects taxpayers and the services they rely on.”
Assemblyman Matt Slater (R,C-Yorktown) said the Comptroller’s report “confirms what every New Yorker should already know: state spending is out of control.”
“We are facing an affordability crisis caused by habitual spending to the tune of $81 billion since Democrats took control of all branches of state government,” Slater added. “Anyone who has balanced a budget or cut taxes like I have known the direction we are heading will only cost New York’s hardworking taxpayers more.”
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