New York’s Record $254B Budget Could Grow Even Larger — Here’s Why

ALBANY – On Friday, Gov. Kathy Hochul signed a record-breaking $254 billion state budget deal. However, the cost could go even higher because the budget process wasn’t clear and the economy wasn’t stable.

It costs $15 billion more than it did last year, which is a rise of almost 6%.

But the governor’s budget office usually doesn’t give an instant breakdown of costs and expected income to back up the number they give.

“As was already said, the All Governmental Funds number for Fiscal Year 2026 is expected to be $254 billion,” Hochul’s budget office told The Post.

So, some lawmakers worried that number might go up a little when the updated budget plan comes out, but they didn’t say how much.

“Things can change a little,” Patrick Orecki, Director of State Studies at the Citizens Budget Commission, told The Post on Friday. “But I think that’s just another reason why they should release a basic version of the budget tables before they even vote on the spending plan.”

Orecki says he doesn’t see any proof that sneaky budget tricks are at play here. However, the spending plan could also be hit hard by the federal government and the economy as a whole.

State Comptroller Tom DiNapoli criticized Hochul and the lawmakers for ignoring possible crises while planning to spend more. For example, they planned to take nearly $7 billion out of reserves to pay off federal debt for a loan given during the pandemic to help pay for unemployment benefits.

DiNapoli said in a statement Friday, “The time to develop a strategy and make structural reforms is before a crisis. However, this budget does not include any serious cost-containment measures.”

Hochul insisted earlier this week that the funds had to be spent because, in her words, the state’s economy is in bad shape and she blames President Trump.

“I am doing this to help the companies get ready for the storm we are about to enter.” Hochul said, “I think we’re going to have a recession.”