In The News-New York State
NYS FY2027 Budget Moves Into the Negotiation Phase
The New York state Senate and Assembly on Thursday passed their one-house budget proposals, setting up the next stage of the budget process with the goal of moving from “wish list” to consensus.
The Senate’s FY2027 proposal came in at $269.8 billion, while the Assembly proposed a budget which totaled $266 million. The Executive Budget proposal is $262.7 billion. The FY2026 budget came in at $254.4 billion.
The Senate proposal includes a 0.5% income tax surcharge on the top two income brackets in the state, which currently are 10.9% for income over $25 million and 10.3% for income between $5 million and $25 million. This increase is expected to raise over $1 billion.
The Senate is also proposing an increase in the statewide corporate tax rate from 7.25% to 9% for those with business income over $5 million and there is an additional proposal to adjust the pass-through entity tax credit to 90%, bringing in an estimated $1.8 billion.
The Assembly also increased the personal income tax on New Yorkers earning more than $5 million a year, raising $2.9 billion in Fiscal Year 2027-2028. There is also a proposal to increase the corporate franchise tax as well as a new tax on crypto mining, which, together, would raise approximately $2 billion.
With respect to Labor, the Senate continues to support reforming Tier 6 to provide improved benefits to Tier 6 members and address recruitment and retention challenges in public service, including the restoration of 20 year service retirement for New York city corrections officers and sanitation workers, and allowing application of prior service with certain agencies (including correction officers, school safety agents, police cadets) to the New York city police pension fund.
The Assembly did not include pension proposals in its budget, but put forth a statement that it is:
…committed to improving benefits for public employees in Tier 6, including the consideration of proposals such as setting member contribution rates at 3 percent of annual wages, increasing overtime limits on final average salary calculations, or allowing members to retire at age 55 with 30 years of service. These proposals would offer meaningful incentives for new employees in public service as well as ensure that current dedicated public employees are more appropriately compensated in retirement. Additionally, the Assembly is committed to addressing disparities among the pension plans of the various sectors of the state and local workforces. The Assembly recognizes that over the years these pension plans have been modified at different times, often creating a patchwork of benefits, and that establishing better parity amongst the plans will also aid in recruitment and retention.
The New York State Senate and Assembly one-house budget proposals both reject rollbacks to the 2019 Climate Leadership and Community Protection Act (CLCPA), protecting its mandates while proposing different energy affordability measures.
The Senate advances a range of policy actions that can facilitate CLCPA compliance including increased incentives for zero emission vehicles and heat pumps, and increased funding for weatherization and electrification. It also restores the $1 billion Sustainable Futures Fund and specifically earmarks $300 million for Decarbonization of Schools, $250 million for Renewable Energy Projects, $200 million for Thermal Energy Network Projects, $150 million for EmPower+ and $100 million for Electric School Bus Charging Infrastructure.
To assist residential ratepayers with high utility bills, the Assembly is proposing POWER (Protect our Wallets Energy Rebate Checks) rebate checks benefitting 5.4 million residential ratepayers. The Assembly proposal would cost $2.6 billion and apply to households with incomes of less than $150,000 ($500) and households with incomes of less than $300,000 ($300).
Other Senate proposals include:
- Increases the Environmental Protection Fund (EPF) to a total of $500 million and the Clean Water Infrastructure Act (CWIA) to a total of $888.3 million
- Adds $500 million for financially distressed hospitals.
- Adds $405 million for a total of $560 million for hospital investments in rate increases and quality incentive programs
- Adds $50 million for a total of $80 million for FQHCs and Non-FQHC Clinics
- Adds $270 million for Nursing Homes/Hospice/Assisted Living, for a total of $470 million.
- Adds $300 million capital for Healthcare Facility Capital Projects Grants.
The Assembly includes a distribution for $4 billion from the Healthcare Stability Fund as follows:
- $1.2 billion for hospital and nursing home payments
- $330 million for the Safety Net Transformation Program
- $193 million for nursing homes
- $155 million for hospitals
- $100 million for quality pools
- $40 million for clinics
- $15 million for Value Based Program (VBP) incentive payments
- $15 million for Certified Home Health Agencies
- $12 million for Assisted Living Providers
- $5 million for hospice
- $1.4 billion for state share tax offsets and
- $536 million to be rolled over to SFY 2027-28 for disbursement from the Healthcare Stability Fund.
The legislative budget conference committees start meeting next week.
Comptroller DiNapoli: Systemic Oversight Deficiencies Put Thousands of Mitchell-Lama Affordable Housing Units at Risk
State Comptroller Thomas DiNapoli released a report recommending actions needed to improve building conditions, protect tenant health and safety, and strengthen management practices in New York’s Mitchell-Lama housing developments. The report found that chronic oversight deficiencies by city and state agencies have led to unsafe living conditions, financial mismanagement and prolonged vacancies, leaving thousands of affordable apartments at risk or unoccupied.
“Too often, serious problems in Mitchell-Lama buildings were identified but not resolved,” Comptroller DiNapoli said. “When state and city agencies fail to ensure necessary repairs are made, unsafe conditions persist and New Yorkers who need affordable apartments can’t access them. Immediate action on our recommendations is needed to address the many issues these audits found and safeguard one of New York’s most important affordable housing programs.”
Comptroller DiNapoli’s report reviewed five audits conducted between 2019 and 2025, covering conditions at 26 Mitchell-Lama housing developments in New York City and statewide, which revealed systemic oversight failures across the Mitchell-Lama program by both the New York City Department of Housing Preservation and Development (HPD) and the State Division of Housing and Community Renewal (DHCR).
“The Mitchell-Lama program has long been a bastion of affordable housing for generations of New Yorkers,” said Assemblymember Linda B. Rosenthal, Chair of the Assembly Housing Committee. “State Comptroller DiNapoli’s most recent report, as well as previous audits, however, prove what I have been saying for years: without proper stewardship at the city and state level, these critical units are falling into an unforgivable state of disrepair.
According to the Comptroller, HPD- and DHCR-supervised Mitchell-Lama developments include approximately 93,000 housing units statewide and remains one of the few long-term affordable options for middle-income New Yorkers. When unsafe conditions go unaddressed or apartments remain vacant, those units are effectively removed from the housing supply.
In response to these findings, DiNapoli’s report recommends the following actions:
Safety & Inspections
- Require corrective action whenever inspections identify unsafe conditions.
- Establish clear repair timelines and verify that fixes are completed.
- Enforce required annual inspections of apartments and buildings; ensure inspection reports are completed, reviewed and acted upon.
- Improve communication so hazards are promptly shared with responsible parties and addressed.
Financial Accountability & Governance
- Require proper documentation, including invoices and receipts, for all spending.
- Increase monitoring and accountability of managing agents; require training on fiduciary duties and good governance, and take corrective action when agents fail to comply.
Vacancy Management
- Enforce vacancy timelines and require action plans for apartments vacant beyond allowable limits.
“Across Senate District 23, thousands of New Yorkers live in Mitchell-Lama housing, and many of them are older adults living on a fixed income,” said Senator Jessica Scarcella Spanton.“ As affordability, especially as it pertains to finding stable housing, remains a top issue statewide, Mitchell-Lama is one of the few options available for middle-income people. As a state, we need to ensure that these apartments remain safe, livable, and affordable.”
In The News-New York City
NYC FY2027 Preliminary Budget
New York City’s FY2027 budget was in the crosshairs this week, as the City Council released its economic and tax revenue forecast and began its Preliminary Budget hearings and Moody’s weighed in on the Mamdani Administration’s spending plan.
The New York City Council’s March 2026 Economic and Tax Revenue Forecast identified nearly $1.7 billion in potential savings and additional revenue for Fiscal Year (FY) 2026, which ends June 30.
The Council’s analysis suggests that the City can maintain fiscal discipline and protect critical services without drawing down New York City’s Rainy Day Fund (formally the Revenue Stabilization Fund). In its Preliminary Budget released in February, the Mayor utilized nearly $1 billion from the fund in the current fiscal year.
Among the resources identified in the Council’s preliminary analysis were approximately $1.4 billion from debt service adjustments, realization of accrual savings from unfilled agency vacancies, and unrecognized interest earnings from entities such as the Retirees Health Benefits Trust and cash holdings.
“The Rainy Day Fund was created to help protect New Yorkers during a true fiscal emergency, and has never been tapped,” said Speaker Julie Menin explained. “Our analysis suggests we are not in such an emergency position today. The Council believes there are additional savings and revenue opportunities that can be identified through the budget hearing process, both for FY 2026 and 2027, and we will continue working with the Administration to ensure the City’s finances remain strong while protecting this critical safeguard.”
Meanwhile, Moody’s Ratings has projected a negative outlook for New York City’s finances, citing the City’s large and persistent projected budget gaps and Mayor Mamdani’s draw down plan.
“Moody’s revised outlook is a clear warning sign that New York City must take its long-term fiscal challenges seriously,” Speaker Menin and Council Finance Committee Chairwoman Linda Lee said.
At the City Council’s Preliminary budget hearings, Comptroller Mark Levine warned that the City still has a projected $7.3 billion budget gap over this fiscal year and the next. The comptroller’s new estimates found that the gap in the current fiscal year, which ends June 30, could reach $796 million, while the gap in fiscal year 2027, without a property tax increase, could reach $6.5 billion.
“Moody’s decision to revise New York City’s outlook to negative is a sobering wakeup call about the fiscal challenges ahead for us,” Comptroller Mark Levine said in a statement.”
In his testimony before the City Council the City Comptroller also questioned the use of the Rainy Day funding. “The rainy day fund exists for tough times, for a recession or some kind of shock we’re not expecting, such as, God forbid, a pandemic. None of that applies right now,” he said.
In its analysis of the Preliminary budget, the Independent Budget Office (IBO) projected that if spending stays constant, total revenues will grow by an annual average of 2% a year from 2025 through 2030, and that expenditures will increase by an average of 4.5% a year. IBO projects gaps of $535 million in the current year and almost $6 billion in fiscal year 2027. These forecasts does not factor in the impact of tariff issues or the war with Iran, nor of likely additional cuts to federal aid or the next round of collective bargaining, all of which contribute to uncertainty in 2027 and beyond.
Bills Approved by the NYC Council
Introduction 409-A, sponsored by Council Member Kevin C. Riley, would require the Department of Transportation (DOT) to post signs on each block of any street subject to bus lane restrictions, with some exceptions. The signs would indicate the hours and days when bus lane restrictions are in effect.
Introduction 421-A, sponsored by Council Member Pierina Ana Sanchez, would allow ancillary dwelling units in cellars of one- and two-family dwellings, created as part of new construction, to be utilized as a rental unit, to be consistent with exemptions for ancillary dwelling units in cellars created in existing one- and two-family dwellings.
Introduction 416-A, sponsored by Council Member Justin E. Sanchez, would require that by May 1, 2026, the Department of Sanitation (DSNY), Department of Transportation (DOT), and Department of Information Technology and Telecommunications (DoITT) establish a two-year pilot program to encourage cleanliness and removal of snow and ice.
Introduction 502-B, sponsored by Deputy Speaker Dr. Nantasha Williams, would require the Mayor to convene a quadrennial commission in 2026 to review the compensation levels of the Mayor, Public Advocate, City Comptroller, Borough Presidents, Council Members, and District Attorneys in New York City.
Briefs
“We Just Need Some Breathing Room”
Governor Kathy Hochul this week outlined her support for revisions of the 2019 Climate Leadership and Community Protection Act (CLCPA), asserting that the State needs more to time comply with the stipulated limits on greenhouse emissions.
“This is not the world I wanted. I would have loved to have been the governor that said, ‘Hey, I met all those goals. We did it, we did it, we did it,’” Governor Hochul said during a Politico event in Albany. “We just need some breathing room.”
The Governor cited a pending lawsuit over the Act which mandates New York achieve 100% carbon-free electricity by 2030 and reduce greenhouse gas emissions by 85% by 2050. Environmental groups filed a lawsuit in 2025 forcing NYSDEC to promulgate CLCPA regulations by February 6, 2026. NYSDEC’s appeal has triggered an automatic stay, delaying regulatory deadlines and ongoing litigation continues.
Cybersecurity Regulations
Delivering on the Governor’s State of the State commitment to strengthen the resilience and reliability of water and wastewater systems, the Departments of Environmental Conservation (DEC) and Health (DOH) developed minimum standards for wastewater and drinking water systems that are threat-informed, risk-centric, and cost-balanced.
The new ‘threat-informed, risk-centric, and cost-balanced’ minimum standards developed by DEC and DOH include:
- Mandatory cybersecurity training for certified operators.
- Cybersecurity incident reporting requirements.
- Risk-based tiered standards to protect critical operations and sensitive information.
- Designation of a cybersecurity lead role at larger drinking water systems.
NY Court of Claims Launches Pilot Program to Promote
Access to Justice for Underserved Populations
New York State Court of Claims Presiding Judge Richard E. Sise announced an Attorney Referral Service Pilot Program aimed at connecting lawyers with unrepresented claimants pursuing civil claims against the State. The initiative seeks to expand access to legal representation for incarcerated and indigent individuals whose claims often face procedural hurdles without counsel.
The pilot will initially cover claims filed on or after January 1, 2023 by individuals incarcerated at Coxsackie, Greene, or Washington Correctional Facilities. Eligible cases include allegations of medical malpractice, negligence, and assault. The Court anticipates expanding the service to all indigent pro se claimants by fall 2026. The program stems from the Court’s Equal Justice in the Courts initiative — established in 2022 to improve access to justice for unrepresented litigants — with Judge Sise noting that lack of legal representation has frequently led to dismissals that might otherwise have proceeded to trial.
Speaker Menin Announces New Appointments to Senior Staff
New York City Council Speaker Julie Menin announced several senior staff appointments this week, including:
Joe Daniels, Senior Advisor and Co-Director for Economic Development. Daniels, the former President and CEO of the National September 11 Memorial & Museum, joins the Speaker’s office as Senior Advisor for Economic Development. In this role, Daniels will help guide the Council’s work to support economic growth and strengthen partnerships across New York City’s public, nonprofit, and private sectors.
Lea Goldman, Co-Director, Office for Advancing Partnerships and Economic Expansion (APEX). Goldman, a veteran journalist and editor, is co-directing the Speaker’s newly-established Office for Advancing Partnerships and Economic Expansion, or APEX, alongside Daniels. The office will focus on building strategic partnerships and advancing initiatives that expand economic opportunity across the five boroughs.
Greg Krakower, Counsel to the Speaker. Krakower, who prior to working as a private attorney and public policy consultant served as Senior Advisor and Counselor to the Office of the New York State Attorney General, joins the Speaker’s office as Counsel to the Speaker. In this role, he is helping to bolster the Council’s investigative operations and providing legal counsel on legislative, policy, and operational matters.
Nwamaka Ejebe, General Counsel. Ejebe has been elevated to General Counsel. She will oversee legal strategy and operations for the Council and continue advising on key legislative and governance matters
Mayor Mamdani Announces Major 3-K Expansion, Adding More Than 1,000 New Seats
Mayor Zohran Mamdani announced expansion of 3-K across all five boroughs. The City will add more than 1,000 new seats in 56 zip codes.
Beginning this September, families in five zip codes in the Bronx, six on Staten Island, eight in Brooklyn, 16 in Manhattan and 21 in Queens will see expanded 3-K access. These zip codes were selected based on historical enrollment patterns, early application data and potential provider capacity, according to the Administration.
Families who have already applied to 3-K do not need to take any action at this time. As new programs are confirmed and added to MySchools, NYC Public Schools will notify families in those communities. Families may update their applications to include newly available programs until April 24, 2026.
NYS Burn Ban Starts Monday, March 16
New York State begins its annual spring burn ban on Monday. The ban runs until May 15th.
Violators face civil and criminal enforcement, with first-time offenders facing at least a $500 fine, according to the Department of Environmental Conservation.
Farms or lands actively devoted to agricultural or horticultural activities that are larger than five acres are partially exempt, being allowed to burn organic agricultural waste on-site year-round if it can fully burn within 24 hours. Residents can still light campfires or cooking fires under 3 feet high and 4 feet wide and contain only charcoal or clean, dry, untreated wood.
Coming Up
New York State
Monday, March 16th
New York State Senate Session, Senate Chamber, 3 p.m.
New York State Assembly Session, Assembly Chamber, 2 p.m.
Senate and Assembly Announce General Conference Committee Appointments, Legislative Office Building – Albany, 4:30 p.m.
Tuesday, February 17th
Senate Education Committee Meeting, 510 Legislative Office Building, 10 a.m.
Senate Consumer Protection Committee Meeting, 804 Legislative Office Building, 10:30 a.m.
Senate Racing, Gaming and Wagering Committee Meeting, 810 Legislative Office Building, 11 a.m.
Senate Crime Victims, Crime and Correction Meeting, 124 Capitol Building, 11 a.m.
Senate Veterans, Homeland Security and Military Affairs Committee Meeting, 945 Legislative Office Building, 11:30 a.m.
Senate Health Committee Meeting, 124 Capitol Building, 12 p.m.
Senate Cultural Affairs, Tourism, Parks and Recreation Committee Meeting, 123 State Capitol, 12:30 p.m.
New York State Senate Session, Senate Chamber, 3 p.m.
New York State Assembly Session, Assembly Chamber, 2 p.m.
Joint Budget Subcommittee: Mental Hygiene, Legislative Office Building, 4 p.m.
Joint Budget Subcommittee: Public Protection/Criminal Justice/Judiciary, Legislative Office Building,
4 p.m.
Joint Budget Subcommittee: Environment/Agriculture/Housing, Legislative Office Building, 4:30 p.m.
Joint Budget Subcommittee: Transportation, Legislative Office Building, 4:30 p.m.
Wednesday, February 18th
Senate Judiciary Committee Meeting, 124 Capitol Building, 10 a.m.
Senate Housing, Construction and Community Development Committee Meeting, 511 Legislative Office Building, 11 a.m.
New York State Senate Session, Senate Chamber, 3 p.m.
New York State Assembly Session, Assembly Chamber
Joint Budget Subcommittee: Economic Development, Legislative Office Building, 4 p.m.
Joint Budget Subcommittee: Health, Legislative Office Building, 4 p.m.
Joint Budget Subcommittee: Education, Legislative Office Building, 4:30 p.m.
Joint Budget Subcommittee: General Government, Legislative Office Building, 4:30 p.m.
Joint Budget Subcommittee: Human Services/Labor, Legislative Office Building, 5 p.m.
Joint Budget Subcommittee: Higher Education, Legislative Office Building, 5 p.m.
Thursday, March 19th
New York State Senate Session, Senate Chamber, 11 a.m.
New York State Assembly Session, Assembly Chamber
New York City
Monday, March 16th
Committee on Children and Youth, Council Chambers – City Hall, 9:30 a.m.
Committee on Sanitation and Solid Waste Management, 250 Broadway – 8th Floor – Hearing Room 2,
10:30 a.m.
Committee on Hospitals, 250 Broadway – 8th Floor – Hearing Room 1, 11:30 a.m.
Tuesday, March 17th
Committee on General Welfare, Council Chambers – City Hall, 9:30 a.m.
Committee on Transportation and Infrastructure, 250 Broadway – 8th Floor – Hearing Room 1, 9:30 a.m.
Committee on Economic Development, 250 Broadway – 8th Floor – Hearing Room 3, 12:30 p.m.
Wednesday, March 18th
Committee on Cultural Affairs, Libraries and International Relations, 250 Broadway – 8th Floor – Hearing Room 1, 9:30 a.m.
Committee on Public Safety, Council Chambers – City Hall, 9:30 a.m.
Subcommittee on Landmarks, Public Sitings, Resiliency and Dispositions,250 Broadway – 8th Floor – Hearing Room 3, 10 a.m.
Subcommittee on Zoning and Franchises,250 Broadway – 8th Floor – Hearing Room 3, 11 a.m.
Committee on Technology, 250 Broadway – 8th Floor – Hearing Room 2, 11:30 a.m.
Committee on Oversight and Investigations, Committee Room – City Hall, 12:30 p.m.
Thursday, March 19th
Committee on Mental Health and Substance Use, Council Chambers – City Hall, 9:30 a.m.
Committee on Disabilities, Council Chambers – City Hall, 9:30 a.m.
Committee on Health, Council Chambers – City Hall, 9:30 a.m.
Committee on Consumer and Worker Protection, 250 Broadway – 8th Floor – Hearing Room 2, 11:30 a.m.
Committee on Environmental Protection and Waterfronts, 250 Broadway – 8th Floor – Hearing Room 3, 12:30 p.m.
Friday, March 20th
Committee on Veterans, 250 Broadway – 8th Floor – Hearing Room 1, 10:30 a.m.
Committee on Higher Education, 250 Broadway – 8th Floor – Hearing Room 3, 12:30 p.m.