Governor Hochul’s Fiscal Year 2027 Executive Budget totaled $260 billion, which directed spending on childcare, education, healthcare and housing programs.
The proposed budget, a mild increase of 0.7% from the previous year, is supported by a near 10% increase in tax revenue, she said on Tuesday.
"Every dollar in this year’s budget is being put to work to fight for families,” Hochul said in a statement. “While Washington tries to break our budget, we are making smart investments, protecting taxpayers and committing to delivering the services New Yorkers need most. Your family–and your future–is my fight."
Aid For Working Families
The governor said she will focus on driving down one of the biggest pressures on family budgets: child care. The budget includes:
- $4.5 billion total statewide in child care and Pre-K services, including $1.7 billion in new investments statewide
- Over $3.2 billion in childcare vouchers statewide to address waitlists
- $500 million over two years for NYC’s 2-Care program
- Enhance and reform the Child and Dependent Care Credit, providing 230,000 filers with an average increase in benefit of $576.
Education
The state looks to spend $39.3 billion in school aid–the highest level in state history, including:
- $1.6 billion for Universal Pre-K Aid in School Year 2027, a $561M (53%) increase over SY 2026 levels
- $395 million for year two of the Universal Free School Meals program
- An expansion of back-to-basics learning to math: transforming math learning through quality instruction and professional learning
- $34 million for library construction grants
- An additional $90 million in support to maintain a tuition freeze for resident undergraduate students at SUNY and CUNY four-year colleges
- $12.5 million to expand our free community college program.
With the threat of funding cuts from Washington, the governor said she will spend $38.2 billion for the state's Medicaid program, and $1 billion in new capital and a minimum of $330 million in operating funds for the existing Safety Net Transformation Program to support care in New York’s safety net hospitals.
She also committed $8.6 billion in total operating aid for the Metropolitan Transportation Authority and $66 million for the Hunger Prevention and Nutrition Assistance Program to expand funding to the state’s network of regional food banks and emergency food providers.
The budget proposal also includes $250 million in capital funding to accelerate the construction of thousands of new affordable homes; $352 million in gun violence prevention funding, of which $50 million is included for Law Enforcement Technology grants; and $77 million to continue the partnership with New York Police Department to increase police presence on subway platforms and trains.
The state's reserves, or "rainy day fund" sits at $14.6 billion, Hochul said, and New York continues to maintain an AA+ bond rating, which reduces borrowing costs.
