Each year, New York State undertakes one of the largest and most complex budget processes in the country. For businesses, nonprofit organizations, local governments, and advocacy groups, understanding this timeline is essential, because policy decisions, funding opportunities, and tax law changes are often shaped well before the final vote.
Why the Budget Process Matters for Businesses & Organizations
New York’s budget is the state’s primary policy vehicle, shaping corporate and personal tax obligations, economic development incentives, capital investment strategies, workforce funding, and environmental and energy mandates. Because many substantive decisions are negotiated quietly and well before the final vote, organizations that monitor the process from the outset and engage consistently are better able to anticipate changes, protect their interests, and access new opportunities.
How Ostroff Associates Supports Clients During Budget Season
Ostroff Associates operates at the intersection of policy analysis, government relations, and budget advocacy to guide clients through every stage of New York’s budget process. The firm tracks proposals from the State of the State through enactment, evaluates fiscal and statutory impacts, and helps clients engage decision-makers at the most strategic moments. After the budget is passed, Ostroff Associates assists with navigating implementation, interpreting agency actions, and aligning advocacy strategies with the new policy landscape. Understanding when and how the budget moves—and having experienced partners at the table—is essential to shaping outcomes in New York State.
Below, is a chronological breakdown of the key moments throughout the New York State budget process.
1. Governor’s State of the State Address (SOTS): Setting the Policy Direction
Governor Kathy Hochul will present her State of the State Address on January 13, 2026. While not a fiscal document, the address establishes the administration’s policy framework and legislative priorities for the coming year, often previewing potential tax reforms, economic development initiatives, housing and healthcare priorities, workforce investments, and proposals related to climate, energy, and infrastructure. Policy proposals introduced in the State of the State frequently reappear in the Executive Budget as detailed legislation or appropriations, making this the earliest and one of the most important moments for stakeholders to begin policy engagement.
2. Executive Budget: The Governor’s Formal Proposal
Governor Kathy Hochul must submit the Executive Budget to the Legislature by January 20, 2026. This proposal sets the baseline for negotiations and includes detailed appropriations, Article VII language to change state law, proposed tax law revisions, programmatic reforms, and capital project funding. Early analysis of the Executive Budget is critical for identifying risks, opportunities, and potential amendments.
3. 21-Day and 30-Day Amendments: Refining the Proposal
After the Executive Budget is released, the Governor submits 21-day and 30-day amendments to refine the proposal. The 21-day amendments generally make technical or clarifying changes to fiscal and statutory language, while the 30-day amendments may respond to new fiscal data, federal developments, or evolving political negotiations. These amendments can meaningfully alter funding levels, eligibility criteria, and program scope. For stakeholders, this is a key advocacy window, as many important refinements occur quietly but carry significant financial and compliance implications.
4. Legislative Hearings: Public Review and Oversight
From February through March, joint public hearings are held by the Senate Finance Committee and Assembly Ways and Means Committee, which focus on major legislative issue areas such as economic development, health, public safety, and transportation. During the hearings, leaders from state agencies, local governments, advocacy organizations, and business and industry groups present testimony and answer questions from legislators, creating a formal record that lawmakers use to justify changes to the Executive Budget. Strategic testimony during this period can shape legislative priorities, inform revisions, and influence what ultimately appears in the One-House budgets and final negotiations.
5. One-House Budgets: The Legislature Responds
Both houses of the Legislature issue their own “One-House” budget resolution, typically in early March. The One-House budgets signal how each house accepts, rejects, or modifies the Executive Budget, including changes to funding levels, programs, and introducing new tax or policy provisions. Differences between the Senate, Assembly, and Executive versions often reveal the pressure points for final negotiations and highlight where targeted engagement can still influence outcomes.
6. Conference Committees & Final Negotiations
Once the One-House budgets are released, negotiations intensify among the Governor’s office, Senate leadership, and Assembly leadership. These high-level discussions ultimately determine what appears in the enacted budget. Although this phase moves quickly and largely takes place behind closed doors, stakeholders who have engaged earlier in the process and have built credibility with decision-makers are better positioned to shape final language, funding decisions, and implementation details.
7. Enacted Budget: Implementation Begins
The New York State budget is constitutionally due by April 1st. However, if negotiations continue past the April 1st deadline, the Governor and Legislature can pass legislation that temporarily extends the deadline for the budget to pay for essential state services such as human service programs and payroll for state employees. Once enacted, statutory changes take effect either immediately or on specified dates, state agencies begin rulemaking and implementation, and funding streams become available – often with new reporting, compliance, or programmatic requirements. For stakeholders, the work does not end with enactment; understanding agency guidance, regulatory changes, and follow-up legislation is essential to fully realizing the benefits of budget decisions or mitigating their impacts.
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