

“We will not be raising income taxes this year,” Gov. Hochul declared in January at the opening of New York’s 2023 legislative session.
Since she’s sitting on a record $19 billion in surplus reserves, that should be an easy promise for the governor to keep — ”this year,” at least. But to avoid future tax hikes, Hochul will need to keep a lid on spending in her coming budget negotiations with the Legislature.
The governor’s $227 billion proposed budget was inflated to start with, reflecting a multi-year influx of temporary federal aid and a record-high surge in capital gains tax payments during the Wall Street bull market of 2020-21. The stock market’s choppy downturn since 2022 and continuing prospects of a recession within the next 12 months prompted Hochul to significantly reduce her revenue estimates heading into this year.
Last week, Hochul’s budget office and legislative fiscal committee staffs agreed to a “consensus” revenue forecast boost of $800 million. But the governor is still projecting fiscal 2025-27 budget shortfalls totaling nearly $21 billion, more than enough to torch every dollar of cash reserves by the end of her current term.
About the Author
E.J. McMahon
Edmund J. McMahon is Empire Center's founder and a senior fellow.
You may also like

What Gov. Hochul must do to prevent a coming fiscal crash

NYC’s finances look flush — but Eric Adams’ budget carries many real risks

Bear market spells big trouble for NY state and city budgets

Hochul’s first budget rewards unions at taxpayers’ expense — and sets the state on the road to insolvency

Calling Tax Cut “Theft,” Cuomo Continues to Push For Federal Bucks With Phony Math

Students Need Reforms, Not HEROES

Washington shouldn’t fund NY’s “normal” budgets

Cuomo’s Plate Spinning
What Gov. Hochul must do to prevent a coming fiscal crash
- December 30, 2022
Students Need Reforms, Not HEROES
- October 29, 2020
Washington shouldn’t fund NY’s “normal” budgets
- April 21, 2020
Cuomo’s Plate Spinning
- August 24, 2019