![putting-hochul-to-the-test-will-the-governor-use-her-budget-powers-to-protect-new-yorks-fiscal-future](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2022/11/Screen-Shot-2022-11-23-at-1.05.58-PM-e1669234120936.png)
![putting-hochul-to-the-test-will-the-governor-use-her-budget-powers-to-protect-new-yorks-fiscal-future](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2022/11/Screen-Shot-2022-11-23-at-1.05.58-PM-e1669234120936.png)
“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
![](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2024/01/52852032066_50e2115b17_k-371x385.jpg)
Hochul Tells It Like It Is
![](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2022/02/empire-state-building-gaf20e7f63_1920-371x385.jpg)
AOC Redefines the Term ‘Rich’
![](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2023/06/money-on-fire-1-371x385.gif)
Spend! Spend! Spend! New York pols burn $9 billion hole in our pockets
![](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2022/08/52278846028_4c3ba83484_k-371x385.jpg)
What Gov. Hochul must do to prevent a coming fiscal crash
![](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2017/03/new-york-14622116155mP-371x385.jpg)
NYC’s finances look flush — but Eric Adams’ budget carries many real risks
![](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2022/05/new-york-stock-exchange-371x385.jpg)
Bear market spells big trouble for NY state and city budgets
![](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2021/10/51584946181_NY-Gov-Kathy-Hochul-1-371x385.jpeg)
Hochul’s first budget rewards unions at taxpayers’ expense — and sets the state on the road to insolvency
![](https://cdn.statically.io/img/www.empirecenter.org/wp-content/uploads/2021/01/us-capitol-477987_1280-371x385.jpg)
Calling Tax Cut “Theft,” Cuomo Continues to Push For Federal Bucks With Phony Math
Hochul Tells It Like It Is
- January 26, 2024
AOC Redefines the Term ‘Rich’
- October 2, 2023
What Gov. Hochul must do to prevent a coming fiscal crash
- December 30, 2022