New York state has entered its budget season, grappling with a $2.3 billion deficit for the 2026 fiscal year and a projected $13.9 billion shortfall by 2028. Key issues like school funding, Medicaid, and the future of the Metropolitan Transportation Authority (MTA) will dominate discussions.
State Budget Director Blake Washington outlined the challenges ahead, including addressing the congestion pricing gap. He indicated that the state’s budget will likely tackle revenue replacement for congestion pricing. On school funding, the results of the Rockefeller Institute’s Foundation Aid study, expected in December, will help inform decisions.
Washington also stressed the importance of balancing Medicaid spending and keeping an eye on the consumer experience, while noting no expected tax increases. Governor Hochul will kick off next year’s legislative session in January, outlining her budget plan and priorities.
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