New York’s budget outlook brightened this week with a $2.4 billion surplus, driven by Wall Street profits, though Gov. Kathy Hochul says the extra funds will be directed toward reducing state debt. The recent windfall narrows next year’s projected budget gap to $1 billion, as outlined in the state’s Mid-Year Budget update released Tuesday.
Hochul emphasized a cautious approach, focusing on lowering future deficits projected to exceed $7 billion by 2028. “That’s what you do when planning long-term,” she said at an event in Poughkeepsie, reaffirming her commitment to avoid new personal income tax hikes as the millionaire’s tax is set to expire in 2026.
Budget leaders have also reserved $3.2 billion as debate continues over the federal SALT cap, which could impact state tax filings if repealed. Additionally, Hochul pledged further support for the MTA, promising another $3 billion in next year’s budget to address the transit authority’s ongoing funding needs.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to news@fingerlakes1.com.