FY2027 State & City Budget: Progress Despite Delays

Story by Acacia Rodriguez

Photo by Brittany Stinson

Each spring in Albany, the governor, senate, and assembly negotiate and determine how New York State’s public money is budgeted, including what funds are added to the City of New York’s budget. Simultaneously, the mayor and City Council negotiate a budget for New York City that reflects taxpayers’ priorities and fiscal realities.

DC 37 advocates for funding priorities through direct engagement of elected officials and uplifting member experiences and testimonies.

State Budget Update

The state budget is due on April 1, but extensions allow for negotiations beyond the deadline. As PEPtalk goes to press, the state budget has been extended 13 times.

Tier 6

In recent years, DC 37 has secured important improvements to the Tier 6 pension system, including reducing the vesting period from 10 years to five and changing the Final Average Salary calculation from five years to three. However, inequity between pension tiers remains, and recruitment and retention in the public sector continue to be impacted. Tier 6 members are currently required to pay between 3% and 6% of their salaries, the highest contribution rates of any tier.

At the top of DC 37’s priorities for the state budget this year is decreasing required Tier 6 employee contributions to 3%. More than 75,000 DC 37 members and nearly two-thirds of New York’s public workforce are covered under Tier 6. This year, in addition to direct lobbying, the union spearheaded a letter-writing and call campaign to Gov. Kathy Hochul and state legislators, which resulted in more than 11,000 actions by DC 37 members.

COLA for Direct Support Professionals
Members of Local 253 Education Employees and President Carolyn Washington met with
legislators in Albany to advocate for a 4% Cost of Living Adjustment (COLA) for non-profit
human services workers

DC 37 pushed for a 4% Cost of Living Adjustment (COLA) for non-profit human services providers with budget language that directs a 3% wage increase for Direct Support Professionals. Salary increases are needed to retain and attract a quality, skilled workforce. Currently, Direct Support Professionals’ median wage stands at $17 an hour, far below the cost of living for New York residents. The Assembly and Senate included language supporting a wage increase for these workers in their one house budgets. Final budget language is still being negotiated.

Additional Revenue

During the March 4 Lobby Day in Albany (see pages 4-5), DC 37 members met with key elected officials to push for a 1% income tax increase for those making more than $5 million and a 1.75% increase on the corporate tax rate. Gov. Hochul proposed a pied-à-terre tax aimed at individuals owning second homes valued at more than $5 million in New York City, a measure that could generate an additional $500 million annually for public services.

City Budget Update

Due to delays on the state budget issued by the governor, New York City Mayor Zohran Mamdani requested a city budget extender through Tuesday, May 12, when he presented his Executive Budget to the City Council for consideration. By law, a final city budget must be adopted before the fiscal year begins on July 1.

Members of Local 253 Education Employees and President Carolyn Washington met with legislators in Albany to advocate for a 4% Cost of Living Adjustment (COLA) for non-profit human services workers.

This article originally appeared in the April-June 2026 issue of PEPTalk Magazine.