RMS End of Week Update 3/06/2026
Budget Update
Late last week the Governor, Senate, and Assembly reached a consensus on revenue estimates from all parties for FY 2026 and projections for FY 2027. There was significant variance, but they reached consensus on a two-year revenue total range that is $700 million to $800 million above the Executive Budget estimate. To view the full Consensus Report please click here.
The next step is the release of the one house budgets. The Senate and Assembly Democrats are currently compiling their one-house budgets, which are their rebuttal spending plans to Governor Hochul’s executive budget proposal released in January. Press reports have noted at least one thing that lawmakers expect to include in their one-house budgets in both chambers, income tax hikes for high-income earners. Democrats in both chambers have included this type of proposal in their one-house budgets for the last several years.
State Senate Majority Leader Andrea Stewart-Cousins confirmed Wednesday that their one-house budget proposal will include revenue raisers but didn’t say if that would extend beyond income tax hikes. “In general, we have always believed in this progressive tax structure,” she said. “We’ve always put forth ways that we can meet the needs of New Yorkers.”
We expect the one house budget proposals will be released and passed next week. After which the Senate and Assembly will meet for the General Budget Conference Committee meeting that is required by law. Leaders from both conferences in each chamber hold a public meeting in a hearing room in the Legislative Office Building to provide an update on where the state budget stands. Because negotiations haven’t really begun, there’s not much for them to say but it is typically held the Monday after the week the one house budgets are passed.
We will keep you updated as to when the one house budgets are released and what is in them as the budget process continues.
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