How Will the Big (not so) Beautiful Budget Bill Impact NYS and NYC Budgets?
The thousand-page bill squeaked through the House and the Senate and signed into law by the president. See the details of the law here 'Big Beautiful Bill' summary shows the biggest changes for you. Estimates are the bill will substantially impact NYS,
... a big financial impact for New York and its health care system. State officials estimated the House bill would cost the state and its hospitals $13.5 billion a year in lost funding and added expenses.
The governor hassled with the legislature for five weeks finally agreeing on a budget well beyond the April 1 deadline. The size of the budget was criticized by State Comptroller De Napoli,
Despite deepening economic uncertainty and looming federal cutbacks, New York lawmakers approved the largest budget in state history—a staggering $254 billion—drawing sharp criticism from state Comptroller Tom DiNapoli, fiscal watchdogs, and legislators who call it a bloated, ideologically driven plan that lacks transparency and fiscal restraint.
In a sobering assessment of the fiscal year 2025-26 budget, DiNapoli warned that rising expenditures paired with potential federal funding losses could seriously threaten the state’s financial position in the coming months.
“The stakes are high for New York if the cuts being discussed in Washington occur,” DiNapoli said. “The state needs to do what it can to stabilize finances, build reserve funds, focus on efficient service delivery, and develop a strategy for how to contend with federal changes.”
The governor will probably have to call the legislature back into session to amend the approved budget, keeping in mind that the governor, with continuing low approval ratings, faces a primary in June 2026 and undoubtedly a significant challenge from the Republicans, who are already lining up for who is her opponent.
NYC cannot reorder its budget until the state amends the state budget. Adams is a November candidate and Adrienne Adams, the Speaker, lost her primary challenge, altogether likely neither one will be around after January 1, they will have to lead the NYC search for new funding just to maintain current levels of services. Read details of impact on NYC here What Trump’s ‘Big Beautiful’ Bill Means for NYC | THE CITY — NYC News
Fifty years ago, contract negotiations had begun in the Spring and the union had a “no contract, no work” position, the last thing union leadership wanted was another teacher strike, In 1967 the union went on strike for three weeks, major issues: the “disruptive child,” a process to remove disruptive children from a classroom and “More Effective Schools,” a pool of money targeting the poorest schools and a year later the 40-day Oceanhill-Brownsville strike. Read a September, 1967 NYTimes article "After the Strike" here After the Strike, at School ... - The New York Times and comments from a number of observers of the 1968 strike here https://www.gothamcenter.org/blog/community-control-and-the-1968-teacher-strikes-in-nyc-at-50-a-roundtable.
The 1975 negotiations dragged through the Spring and the summer, Al Shanker, shortly before the opening of school suggested extending the contract for a month, hopefully to come to a mutually agreeable contract, as well as prepare for a possible strike. Shanker was preparing to bring the extension resolution to the Delegate Assembly, a letter beginning "We regret to inform you ..." went out to thousands of teachers, a layoff letter, the Delegate Assembly voted to strike with cries of "We won't come back until we all come back ..." Herman Badillo, the Comptroller had no interest in negotiating a contract, his plan was to have the city declare bankruptcy and reconfigure all contracts as well as public employee pensions. The union and the Board quickly negotiated a contract and within hours of filing the bankruptcy documents the union supported the Teacher Retirement System buying city bonds and averted the default. Read excellent essays recounting the crisis here https://newyorkspaces.com/nyc-history-from-1975-to-1980-the-fight-to-rebuild/ and here Lessons From the Great Default Crisis of 1975 | The Nation
I'm sure some will cry "scare tactics," just history.
However, with a city government in flux as well as the state government it is vital that the union is ",, at the table where it happens."
The governor and the mayor have ignored the months of fighting in Washington, sort of "if it happens, we'll deal with it" attitude.
It happened.
Ideally the governor, the speaker of the Assembly and the majority leader of the Senate would put their differences aside and work out a plan, in the not ideal, the real world of high stakes politics the governor and the state legislatures are likely to clash, more than clash, more like dueling pistols on the Palisades. On the local level Mayor Adams is also candidate Adams in a two (or three way) race for his political career.
Will the State decide to raise taxes, or cut Medicaid, or reduce school aid?
Will the City slash services including education and police overtime?
The Big, Bad Bill cuts are not a one-time issue, the cuts are phased over the next five years.
On Tuesday the UFT Delegate Assembly endorsed Zohan Mamdani and President Mulgrew reminded the members,
As a union that’s as large and diverse as ours, making an endorsement is a complicated task. But we can’t isolate ourselves from politics; we know that it’s better to be at the table when moving our agenda forward. We need a mayor who will be an ally, not an adversary.
To be clear: We are not telling you who to vote for. Each of you will cast your vote in November based on your own values, priorities and beliefs. Our duty to our membership is to advise them through our endorsements on which candidate we believe will act in the best interest of UFT members, their profession and their livelihoods. Moving forward with the decision that our delegates reached today best positions us to advance our agenda and face the challenges ahead for New York City and its public schools.
The Room Where it Happens - Hamilton (Original Cast 2016 - Live) [HD]