N.Y. Three-Year Budget Gap Hits $14.3 Billion Despite Tax Growth

New York is projecting a $14.3 billion budget gap through fiscal 2028, exceeding previous estimates despite recording higher-than-anticipated tax collections, according to the state Department of Budget’s mid-year financial update.

The report, released Tuesday, shows outyear budget shortfalls of $1 billion in fiscal 2026, $6.2 billion in fiscal 2027, and $7.1 billion in fiscal 2028. The three-year total is slightly higher than previous state estimates, which showed a cumulative $13.9 billion budget gap.

The new estimates factor in Medicaid spending projections that exceed the state’s global cap spending allowance by roughly $2.2 billion beginning in fiscal 2026, according ...