Reinvent Albany Take on New York’s FY 2027 One-House Budgets

Big Picture 

New York State continues to reel from large reductions in federal aid, including to New York’s Medicaid Essential Plan that could leave close to 400,000 New Yorkers without health care, resulting in a doubling of people without health insurance from 5% to 10%. Oddly, neither the Governor nor the Legislature address this massive social issue in their budget proposals. However, the Governor and Legislature both include big aid packages to New York City, which, despite imposing the highest combined tax rate in the nation on high earners, has both a large budget deficit and meager reserves. Reinvent Albany does not take a position on tax policy other than opposing corporate subsidies delivered via the tax code and supporting lock-box mechanisms for state dedicated taxes.  

FY 2027 Budget Specifics: Things We Like and Don’t Like in the Legislature’s One-House Budget Bills

Reinvent Albany has a position on more than two dozen revenue, expenditure, and policy issues that are – or we believe should be – included in the Senate and Assembly one-house budget bills. 

Thumbs Up to These One-House Budget Responses

Accountable Government

• The Assembly and Senate both reject the Governor’s main attempt to curb the Comptroller’s review of contracts, removing Comptroller pre-approval of $3B in taxpayer dollars related to OGS centralized contracts and for contracts below $300k. 
• $25 million expansion of MTA Subway Co-Response Outreach Teams (SCOUT) from 10 to 15 teams. We and other advocates requested an expansion of the program in a public letter sent on January 8, 2026, which was included by the Governor, and kept by the Senate and Assembly.
• Boost for MTA operating funding with three-year extension of business tax rates was proposed by the Governor, and kept by the Senate and Assembly.

Sensible Public Investment

• End NY Opportunity Zone tax break. The Senate resolution smartly decouples from Trump’s Opportunity Zones, which will cost NYS billions beginning in 2029, while giving wealthy investors a tax deduction for funding luxury apartments, crypto mining, and superyacht marinas even for investments in other states! The Governor and Assembly should support the Senate’s proposal to end this ill-advised and wasteful subsidy that will soon cost New York billions.  
• End tax break for luxury yachts. The Senate again has added a proposal to end New York’s tax break for luxury yachts, which should never have received tax breaks to begin with.
• Stop Climate Polluters Handouts Act. The Senate has again rightly called for the end of over $300 million in fossil fuel subsidies while the Governor is unconscionably seeking to roll back renewable goals during a climate change emergency. It’s high time the State ends what should have been done away decades ago. 
• Extend the Orange County IDA monitor. The Orange County monitor has put the brakes on an Amazon warehouse in Orange County, rightly seeking more information before the project proceeds and, more generally, ensuring the IDA follows procedures for economic development in what could be a model for more IDA oversight elsewhere.
• Improving Authorities Budget Office (ABO) subsidy monitoring systems. The Assembly increases ABO funding to $5.1 million – a number we have supported – while the Senate keeps it the same.

Open Government

• Codification of improvements to MTA Capital Dashboard. The Senate one-house budget has continued to support codifying and expanding the MTA’s capital dashboard. This was not in the Governor or Assembly budget proposals.

Strong Democracy

• $1.17 million in Senate resolution for ERIC and Election Security Navigator Program, $10 million to State Localities for local BOE commissioner operating support and $142.2 million funding for State Board of Elections.
• $116.1 million for public campaign finance program ($100 million for matching, $16.1 million for admin/technology – close to Fair Elections request in a December 15, 2025 letter).

One-House Budget Responses Needing Improvement 

Accountable Government

• Funding for Commission on Lobbying in Government (COELIG). The Governor allocated $8.9 million, despite watchdogs supporting COELIG’s request for $9.1 million. The Senate increased to $9.1 million, Assembly kept it the same.
• MTA Tax Increment Financing (TIF) extension. The Governor proposed a 10-year expansion, which we opposed. The Senate proposed a two-year extension, the Assembly a one-year extension.
• No-fault insurance proposal. The Governor’s expansive proposal was rejected by the Senate and Assembly. However, it is not clear whether any progress will be made to address the high costs paid by state and local governments, while protecting pedestrian and cyclist safety.
• Extension of procurement lobbying law. The Governor extended the law for five years, and raised the threshold to $50k from $15k. The Senate included a two-year extension with a $25k threshold; the Assembly kept the five-year extension, but rejected the threshold increase.
• $2 billion Special Emergency Appropriation. Watchdogs requested this not be increased from $1 billion. The Senate reduced it to $1 billion, but the Assembly kept it at $2 billion.

Open Government

• Streamlining financial disclosure statements. The Governor’s proposal was retained by the Senate, which added publishing of state candidates’ disclosures online. This was rejected by the Assembly.

Thumbs Down to These One-House Budget Responses

Sensible Public Investment

• $300 million more POWER UP electrical infrastructure subsidies for high load customers. The Legislature and Governor pay for electrical infrastructure for manufacturers and data centers while decrying the shifting of energy costs by high load users to residential households.
• $150 million increase to Broadway show subsidy. Both resolutions support the Governor’s proposal continuing to unnecessarily use taxpayer money to fund Broadway hit shows like the Lion King, more than 5 years after COVID shut down performances.
• Not addressed in the budget is the continued subsidies for cheap electricity for data centers, chip fabs, and other high load energy users utilizing ReCharge NY and other NYPA programs utilizing the State’s hydropower. The Assembly proposes rebate checks for electricity bills but should also end giveaways of taxpayer funds to large users of energy.
• The State budget does not broadly address the $7 billion in subsidies made through Industrial Development Agencies (IDAs) or seek to improve their accountability or transparency even as the Legislature seeks to increase taxes on corporations generally. It should first curtail corporate subsidies. 
• Extension of Capital Off-Track Betting Corporation’s (OTB) $1 million in capital for operating. The State should get out of the OTB gambling business as New York City did.
• $5 million raid of dedicated Regional Greenhouse Gas Initiative (RGGI) and NYPA funds to the Environmental Protection Fund. This was retained by the Assembly and Senate.

Open Government

• New penalties for ethics training noncompliance and increased lobby registration fees go to the General Fund, not to COELIG. The Governor and Legislature should give a portion of the fees directly to COELIG, which asked for $750,000 for upgrades to its antiquated filing and public disclosure systems. Watchdog groups supported this request, but the Senate and Assembly did not provide the new fees to COELIG.

Strong Democracy

• Regulating use of AI deepfakes by political campaigns. The Assembly omitted this proposal and the Senate did not address it in the campaign context. The Governor’s proposal is a more comprehensive effort to address the issue.

Click here to view the full list of budget items Reinvent Albany supports and opposes.