Hochul Announces $268B NY Budget Framework

New York Governor Kathy Hochul announced Thursday a framework agreement with legislative leaders for a $268 billion state budget, featuring a new annual tax on multimillion-dollar second homes in New York City expected to generate about $500 million yearly to address the city's $5.4 billion budget shortfall.

The tax targets luxury properties valued at $5 million or more owned by individuals whose primary residence is outside the city. These homes, often used sporadically, would face a surcharge, with revenue directed to city coffers. "If you can afford a multimillion-dollar second home in New York City, you can afford to pay your fair share," Hochul said. New York City Mayor Zohran Mamdani endorsed the measure, stating, "If you can afford a $5 million second home that sits empty most of the year, you can afford to contribute like every other New Yorker."

The deal follows more than a month of negotiations past the April 1 deadline, the latest since 2010. It includes $1.5 billion in additional aid to New York City plus $1.2 billion for childcare expansion, alongside tens of millions for other municipalities like Buffalo, Albany, Rochester, and Syracuse. Overall state aid to the...