Assembly passes one-house budget resolution, advancing 8-calendar; debate centers on taxes, reserves and program funding

The New York State Assembly on March 13 adopted its one‑house budget resolution in response to Governor Kathy Hochul’s 2025–26 executive proposal, approving the plan by a recorded vote of 100 in favor and 47 opposed after extended floor debate.

The resolution sets an all‑funds spending plan of $256.5 billion for state fiscal year 2025–26, the sponsor said, and increases several state funding lines above the executive recommendation while proposing a $7 billion payment to the state unemployment insurance (UI) trust fund. The Assembly majority framed the package as tax relief targeted at working and middle‑class households alongside investments in schools, health care, housing and clean energy.

Why it matters: the one‑house resolution is the Assembly majority’s negotiating position in the budget process; its changes to taxes, program funding and use of reserves shape the coming three‑way talks between the Assembly, the Senate and the governor. Lawmakers on both sides said they expect further changes during negotiations but warned the fiscal path beyond 2026 contains significant gaps.

Major provisions and figures

- Topline and comparisons: The Assembly presented an all‑funds budget of $256.5 billion, which the sponsor said is about $4.5 billion above the executive proposal and roughly 5.4% above fiscal 2024–25 in all funds. State‑fund totals cited in debate included $165.3 billion in state funds and $147.9 billion in state operating funds; the general fund was listed at $127.4 billion. The sponsor said the package increases school aid, health care and local assistance across multiple lines.

- Unemployment insurance: The resolution includes a $7 billion payment to the state UI trust fund to retire the outstanding UI debt. Majority members said that…