Governor Kathy Hochul on Thursday said an agreement has been reached with legislative leaders on key priorities of the $268 billion fiscal year 2027 state budget that includes a pied-à-terre tax program.
Five weeks late, the proposed budget includes funding for childcare, immigration, public safety, lowering auto insurance rates, energy rebates, modernizing building permits, online privacy and safety measures, and more.
"I'm not going to mince the words — the negotiations were not easy," the governor said. "There were very substantive disagreements, tough choices and powerful special interests trying to influence the outcome. And the dysfunction out of Washington certainly doesn't help, whether they're starting unnecessary wars, escalating costs, especially at the pump, destabilizing the economy with illegal tariffs or denying climate science and therefore cutting out resources to encourage the clean energy future we had envisioned."
The budget includes the controversial pied-à-terre tax on second homes and investor-owned apartments worth $5 million and up in New York City, which the governor said will generate at least $500 million in annual tax revenue. However, city comptroller Mark Levine estimates annual revenue to fall between $340 million and $380 million.
Funding for childcare will increase by $1.7 billion, bringing the total FY27 investment to $4.5 billion for child care and pre-kindergarten services statewide.
The budget also includes a one-time, $1 billion energy rebate to provide relief to New Yorkers dealing with rising energy costs; $77 million to assist the New York City Police Department in policing the subway system; $40 billion in total school aid; and eliminates state income tax on tipped wages up to $25,000 per year.
In addition, the governor said there are funds to crack down on New York's so-called super speeders, or drivers who rack up 16 or more speed camera tickets in a year, to install speed-limiting devices in their vehicles.
"New York is putting these super speeders on notice," she said. " You will not flout our laws, and you will not endanger children, pedestrians and other drivers who deserve to feel safe on our highways."
The governor also said she was proud that reserves would likely total $15 billion, a figure among the highest of any administration in state history.
With a conceptual agreement in place, the legislative houses are expected to pass bills that will fully enact these priorities in the coming days, the governor said.
