On the evening of Monday, April 28, 2025, New York Governor Kathy Hochul surprised many by declaring victory on the state budget — even though key parts of the plan remain unfinished and the budget is still not passed, nearly a month after the official deadline.
“I’m really proud to say that we got it done,” Hochul said, pointing to success on top priorities like the middle-class tax cut, child tax credit, inflation rebate checks, and free school meals.
“This all took a lot of effort… it’s accomplished and I’m really proud of it.”
Budget Not Fully Ready Yet
However, several major unresolved issues remain, including:
- Foundation Aid reform for schools
- Fixing the staffing crisis in state prisons
- Final decisions on merit time reform and earned time programs for inmates
Lawmakers Respond with Caution
State Senate Majority Leader Andrea Stewart-Cousins wasn’t surprised by Hochul’s early announcement.
“I always focus on completing the job,” she said. “There are still conversations to be had — and we are having them.”
The state legislature passed another short-term funding extender, which will keep the government running until Thursday, but lawmakers don’t expect the full budget to be finalized before next week.
Prison Strike Impacting Budget
A key issue still being debated is merit time reform in the state prison system. The conversation is complicated by the recent illegal correction officer strike, which led to the firing of 2,000 officers and a $700 million budget shift — money that was originally set aside for inflation rebate checks.
That amount had to be redirected to pay strike-related costs, meaning smaller checks for New Yorkers than initially planned.
“We’re still paying in extraordinary numbers every month,” Hochul said on Tuesday.
Correction System Reforms: Still Under Review
Lawmakers like Senator Jeremy Cooney and Assemblymember Anna Kelles, who sponsor the Earned Time Act, say the issue is still under detailed review.
Earlier proposals to expand earned time eligibility for some violent offenders (excluding murder and sex crimes) were removed. Now, lawmakers are focusing on how earned time is calculated and retained, including questions like:
- How much sentence reduction can inmates earn?
- Can they “vest” time, so it’s not lost due to technicalities?
Cooney added that a proposal to lower the minimum age to become a correction officer from 21 to 18 is likely to be included in the final budget.
Foundation Aid: Still Up in the Air
School districts are also waiting for final answers on Foundation Aid, the state’s main education funding program.
Gov. Hochul has proposed a 2% increase, while the State Senate wants 3%. The Assembly has not yet reviewed the proposal, and many lawmakers say they haven’t discussed it in detail.
Assemblymember Jessica González-Rojas said the issue isn’t just about the percentage increase but how the formula is revamped to reflect realities like:
- Support for English Language Learners
- Regional cost differences for schools across New York
“We are pushing for those measures to be included, but we don’t know if they have been yet,” she said.
Given the tight state finances, many lawmakers admit the final increase may not even meet halfway between the Assembly and Senate proposals.
