By Pete Harckham
The newly enacted New York state budget for the Fiscal Year 2025-2026 focuses on affordability and smart community investments, like funding for education and road repairs. It also supports clean energy and resiliency initiatives while cutting taxes for small businesses and the middle class.
This budget recognizes that New Yorkers face challenges everyday but remain steadfast in wanting to better and enrich their lives. With many residents—and municipalities—struggling economically, our top priority was to include important measures in our budget that deal squarely with affordability issues statewide.
The FY2025-2026 State Budget provides residents with inflation rebate checks and the lowest personal income tax rate in over 70 years for New York’s middle class, which the state’s Democratic majority began to phase in seven years ago. This year’s enacted budget also allocates $8 billion to fully fund our unemployment insurance program and eliminate the fees, taxes, and interest rates that small business owners pay every year towards the fund.
Again, with affordability in mind, the budget has a 50% decrease in MTA Payroll Mobility Taxes for small businesses with payrolls under $1.75 million. All these tax savings mean New York’s hard-working families keep more of what they earn.
Regarding roads and transportation infrastructure, we count on safe and reliable roadways every single day, so keeping them well-maintained is a priority. Included in our increased investments in this state budget are $800 million for the Department of Transportation (DOT) Capital Plan for state roads and bridges, and an increase of $50 million for Consolidated Local Highway Improvement programs (CHIPS) for a total of $648 million. The budget also makes a $1.4 billion contribution to the 2025-2029 MTA Capital Plan.
Meanwhile, our investments in education ensure that students in New York have abundant opportunities for learning while also supporting our communities and economy. Because let’s face it: increasing state aid to local schools and providing a quality education regardless of zip code benefit all of us.
That’s why this budget’s total amount of school aid statewide is a record high. There was at least a 2% increase in Foundation Aid for all school districts statewide, and $340 million to provide free breakfast and lunch to all students in New York State. Just in Senate District 40 (SD40), public school aid is up $42,9845,601 (8.1%) from last year. In fact, in the six years I have in office, state aid to public schools in SD40 has increased over $250 million cumulatively.
I should note that New York’s commitment to public health, lower energy costs and the creation of new green jobs underscores the state’s vital environmental protection initiatives and the meaningful investments we have been making. The FY2025-2026 State Budget builds on efforts from previous years in making our communities more resilient, protecting our fragile drinking water supplies and reducing greenhouse gases and air pollution. This year’s budget will include a record $425 million for the Environmental Protection Fund, a $25 million increase over previous years. The enacted budget also includes a $1 billion Sustainable Futures Program. This funding will help us transition to a less expensive clean energy economy and create jobs for New Yorkers.
Our community investments in the budget involved funding for childcare centers, youth sports initiatives, key anti-violence programs, behavioral health crisis assistance to develop peer-led responses in our communities and the popular 2-1-1 Helpline, which maintains vital information and referral services for residents.
The investments in these initiatives will save municipalities and taxpayers untold millions of dollars. Or look at it as the state returning tax dollars back to the communities.
The budget is a dollars and cents statement of our values and priorities. Our schools, our public safety, our environment—we shrink or turn away from fully supporting these concerns at our peril. The New York’s FY2025-2026 State Budget balances the needs of our residents and communities with an understanding that sound, practical investments are required to ensure a better tomorrow for all.
