Senate adopts one‑house budget resolution after two‑hour debate; vote 36‑21

The New York State Senate on March 12 adopted its one‑house budget resolution, Senate Resolution 488, approving a roughly $259 billion spending plan and a package of Article VII policy provisions on a 36‑21 roll call.

The measure, introduced by Senate Majority Leader Stuart Cousins and led on the floor by Senate Finance Chair Senator Liz Krueger, cleared the chamber after about two hours of debate and a wide‑ranging question‑and‑answer session that touched on taxes, energy policy, corrections, Medicaid, unemployment insurance and transportation.

The resolution sets the Senate’s initial negotiating position with the governor and the Assembly. Krueger, the Senate finance chair, told colleagues the one‑house plan increases spending above the governor’s executive proposal by “approximately 6 and a half billion” dollars and that the total increase over last year’s enacted budget was roughly $15 to $17 billion depending on line‑by‑line accounting. “We show about a 12.7%” increase from last year’s plan, Krueger said on the floor.

Why it matters: The one‑house resolution frames the chamber’s priorities for final budget negotiations and contains numerous policy proposals that are not direct spending items but would modify state law if adopted in final legislation. Several of the most discussed provisions are the New York Heat Act (an energy transition measure included in Article VII), proposals affecting corrections and prison operations, and funding changes for Medicaid and transportation.

Key provisions and debate

Budget total and revenues: Krueger said the proposal is roughly $259 billion and includes revenue assumptions such as an additional $800 million in consensus revenue and tax increases targeting the highest earners and large corporations. She explained the plan raises personal income tax rates for the highest earners — those with at least $5,000,000 in income — and raises the corporate tax for large businesses; Krueger said the top PIT rate would rise to 10.8% for those earners.

New York Heat Act and energy affordability: The Senate one‑house package includes the New York Heat Act, a policy Krueger repeatedly defended on the floor as saving ratepayers money over time. “The New York Heat Act is projected by our work and by outside, reviewers to save the ratepayers of New York an enormous amount of money,” Krueger said. Critics on the floor said the bill could raise near‑term costs and risk jobs in traditional energy trades. “Natural gas is being eliminated from New York State,” said Senator Matera during floor remarks, calling the timing “the cart before the horse” and urging pauses and additional workforce training commitments. Krueger responded that the bill has been amended to add a two‑year community review process and language to protect reliability and require alternatives before any gas service is discontinued.

Corrections and public‑safety provisions: Multiple senators pressed the sponsor on provisions in the public‑safety and corrections sections, including language authorizing closure of up to five prisons and whether the HALT Act would be changed. The sponsor said the one‑house text does not repeal or change the HALT Act. Senators representing corrections staff safety concerns described workplace risks and argued the resolution does not do enough to address contraband, staffing shortages and discipline options; the sponsor said some proposals are intended to address safety through consolidation and other measures.

Medicaid, MCO tax and health investments: Health policy was central in questioning. Senators asked why the one‑house plan increases Medicaid spending while eliminating the Medicaid “cap” used in prior years and why the Assembly’s offset using the MCO tax was not included. Krueger said the conference removed the growth cap and reshuffled proposed MCO tax revenues to fund hospitals, nursing homes and safety‑net providers, and warned of federal changes that could affect Medicaid funding. The sponsor said hospitals, nursing homes and other providers receive targeted investments in the one‑house plan.

Unemployment insurance and small‑business relief: Senators pressed the finance chair on the unemployment insurance (UI) trust fund deficit that remains from the pandemic period. The one‑house plan includes a targeted tax credit or relief mechanism for small businesses (the text limits eligibility to employers with 50 or fewer employees in the proposal on the floor), while the Assembly had proposed a larger payoff. Krueger said the conference added about $490 million a year for two years aimed at small businesses; critics on the floor said the full fund gap remains and questioned whether federal pandemic dollars were used differently than in other states.

SNAP EBT and fraud prevention: Senators asked whether the proposal funds a migration from swipe‑style EBT cards to chip technology to cut fraud. The sponsor said the executive budget included funding for a chip conversion and the Senate did not modify that section.

Transportation and MTA capital plan: The one‑house resolution affirms support for fully funding the MTA 2025–2029 capital program but does not specify a dollar figure or revenue stream; the sponsor said negotiations on capital funding remain ongoing among the MTA, the governor and the houses. The resolution includes modest direct funding for fare programs such as a $40 million contribution toward a fair fares expansion and $45 million estimated for an expanded fare‑free bus pilot, but several senators said the proposal leaves a large capital funding gap unaddressed.

Mental‑health and crisis response: The resolution contains language and an initial $22 million investment to implement Daniel’s Law‑style crisis response funding and an ongoing commitment for crisis teams. Supporters said those funds are essential to expand voluntary crisis response and peer services statewide.

Roll call and outcome

On a roll‑call vote the chamber adopted the one‑house budget resolution (Senate Resolution 488) by a 36‑21 margin. The resolution now becomes the Senate’s starting point in formal negotiations with the Assembly and the governor’s office.

What’s next

The one‑house resolution sets the Senate’s priorities for final budget negotiations as the Legislature moves toward the fast‑approaching April 1 statutory budget deadline. Negotiations among the three houses and the governor will determine which Article VII policy provisions survive and the final spending and revenue package.

Sources: floor debate and roll call at New York State Senate session, March 12, 2025. Direct quotations and figures are taken from the transcript of the floor proceedings.