After missing the deadline by 57 days, the Democrat-controlled state Legislature passed a $268.5 billion spending plan — $14 billion more than last year — that does little to address the affordability crisis as New Yorkers struggle under some of the nation’s highest taxes, utility bills and costs of living.
The spending plan, agreed to by Gov. Kathy Hochul after nearly two months of negotiations with Democrat leaders in the state Senate and Assembly, has drawn fierce criticism from Republicans who say one-party control in Albany continues to drive runaway spending, higher taxes and policies pushing residents, businesses and opportunity out of the state.
Assembly Minority Leader Ed Ra called the budget process one of the most dysfunctional in recent memory and warned that despite state spending increasing by more than $90 billion since 2021, the quality of life across New York continues to decline.
“One might assume a budget passed 57 days late would be thoughtfully crafted and focused on improving the lives of New Yorkers — they’d be wrong,” Ra said.
“This is what happens when you have one-party government without any opposition,” noted Assemblyman Joseph DeStefano. “It turns into a special-interest money machine where politicians take from the working class and give it to people who don’t work so they can buy their votes. This is the welfare-state strategy in living color.”
Critics say the Democrats are attempting to market the bloated budget through one-time rebate checks and temporary giveaways rather than addressing the root causes behind soaring taxes, rising utility bills and the state’s growing cost-of-living crisis.
Among the measures heavily promoted by the Hochul administration are $1 billion in one-time energy rebate checks, expanded utility regulations and billions more for climate-related programs, resiliency projects and green-energy initiatives.
The budget includes $750 million for clean-water infrastructure projects, continued investments in the Environmental Protection Fund, coastal resiliency funding, and additional spending tied to the state’s long-term climate and clean-energy agenda.
At the same time, Albany softened portions of the state’s aggressive climate mandates after concerns mounted that existing timelines would dramatically increase costs for consumers and businesses. The final budget delays some requirements and adjusts emissions benchmarks critics argued were unrealistic and economically damaging.
The budget increases school aid statewide, with lawmakers approving at least a 2% increase in state aid for every school district. It also includes continued investments in universal pre-kindergarten programs, child care assistance and other education-related initiatives.
Senate Republican Leader Robert Ortt blasted both the late budget and its overall direction.
“Albany Democrats were ridiculously late in getting a budget done on time, and now your family is going to pay the price: higher taxes, higher utility bills, more money for illegals and more spending,” Ortt said.
Republicans also criticized provisions limiting formal cooperation between local law enforcement agencies and federal immigration authorities, arguing Democrats once again placed politics ahead of public safety.
The final spending package additionally includes roughly $2.5 billion in tax increases, including a new tax on luxury non-primary residences in New York City that opponents warn could discourage investment and push wealthy taxpayers out of the state.
Lawmakers also approved billions in additional aid for local governments and financially struggling cities, moves critics say amount to taxpayer-funded bailouts for failed fiscal policies.
While Republicans acknowledged several provisions they supported — including eliminating state taxes on tipped wages and delaying portions of the state’s electric bus mandate — they argued those victories are overshadowed by the overall growth of government spending.
Hochul defended the budget by arguing that while New Yorkers need relief from rising utility costs, continued investments in green-energy infrastructure, sustainability and reliability are also necessary.
Critics, however, say the final budget proves Albany Democrats remain committed to growing government while middle-class taxpayers continue paying the price.