A late state budget could be a blessing in disguise. As of April 1, Gov. Kathy Hochul didn’t know about President Donald Trump’s tariff plan and the stock market’s impending decline.

“People are worried about Social Security, they’re worried about pensions, they’re worried about their stock crashing!” Andrea Stewart-Cousins, the Democratic State Senate Majority Leader in Albany, said Tuesday.

What You Need To Know

  • Before the stock market tanked following the White House’s new tariff policy, Hochul pledged to spend $252 billion — a $10 billion increase compared to last year

  • But fiscal experts say now it’s time for Hochul to go back to the drawing board and save taxpayer dollars for future crises

  • As part of her budget plan, the governor wants to pass a middle-class tax cut and redistribute $3 billion via checks to some New Yorkers

But fiscal experts say now it’s time for Hochul to go back to the drawing board and save taxpayer dollars for future crises.

“Spend less money!” Bill Hammond, a senior fellow at the Empire Center for Public Policy, told NY1 in an interview. “Revenue that’s coming in is not as much as the projection of spending that’s gonna go out,” he added.

Perhaps simple advice, but try telling that to the governor and the state Legislature, who are already on track to pass a multi-billion dollar, taxpayer-fueled, spending plan.

Before the stock market tanked following the White House’s new tariff policy, Hochul pledged to spend $252 billion — a $10 billion increase compared to last year.

The Democratic-led legislature wants to spend almost $10 billion beyond that.

“We are the number one taxers and the number two spenders, only behind oil-rich Alaska, we have got to figure out how to live within our means and serve New Yorkers — we can do it,” Andrew Rein, president of the fiscally conservative Citizens Budget Commission, said.

Fiscal experts say Hochul should go back to the drawing board.

“The big increases that she’s proposing are the two largest items in the state budget, which are school aid and Medicaid. Her overall plan for Medicaid is a 17% increase in one year,” Hammond said. “Then another 4% increase in school aid, when enrollment has been declining.”

Meanwhile, Hochul wants to pass a middle-class tax cut and redistribute $3 billion via checks to some New Yorkers.

“Who knows, maybe a $300 check might be the only bright spot, I don’t know,” Stewart Cousins said.

But the Citizens Budget Commission wants Hochul to dump her rebate check idea, in favor of savings.

“The average recession over two years will reduce state revenues $27 billion, and you know, we’ve also been helped through prior recessions by the federal government coming in and helping bail us out, which I don’t think it’s likely necessarily,” Rein said.

The feds already yanked some healthcare grant funding, plus FEMA dollars towards natural disaster relief and migrant funding — and more could be coming.

“These are cruel cuts, they are extreme, they are across the board,” Stewart Cousins said.

Legislative leaders admitted they likely need several more days of negotiations before nailing down a final plan.