Overview
- The proposal commits $4.5 billion to expand free childcare, including a New York City '2-Care' pilot for two-year-olds and added pre-K funding statewide.
- State Medicaid spending rises more than 11% to backfill federal cuts, with school aid increasing by roughly 4%.
- The plan extends the top 7.25% corporate franchise tax for three years and would tax nicotine pouches like cigarettes.
- Budget officials cite about $17 billion in revenues above prior forecasts and maintain reserves at roughly $14.6 billion as federal support declines by $10.3 billion.
- Negotiations now shift to the Legislature as Mayor Zohran Mamdani urges higher taxes on the wealthy and corporations to address New York City’s projected $12 billion gap before the April 1 deadline.