1. FPI Projects Larger Budget Gaps
Due to the impending federal cuts from the federal reconciliation package, Governor Hochul had announced that the state will see budget gaps of $750 million in this fiscal year and more than $3 billion next year. However, the Fiscal Policy Institute (FPI) reports that these estimates understate the gaps that the state will face. This is because most of the health care-related budget cuts impacting the state in FY 26 and FY 27 aren’t included in the Governor’s estimate. When including these healthcare impacts, FPI estimates that the state will face a budget gap of nearly $13 billion in FY 27. These projections assume that the state will act to mitigate some of the negative impacts of the reconciliation package beyond what they are statutorily required to cover, like funding to help health care facilities remain open, providing insurance coverage to the more than 1 million New Yorkers who will lose coverage, and more.
During the month of August, CSEA will be offering Zoom meetings to educate members about the impact of the recently enacted federal reconciliation law and the impact it will have on public services throughout the state. Please spread the word and encourage members to attend one of the sessions:
Thursday, August 21, 6 p.m.
https://us06web.zoom.us/meeting/register/03ka_EAkShOH0_hUBxTilA
https://us06web.zoom.us/meeting/register/5ZkZ-3fnQNKpik9Z29RuSg
2. Redistricting
Texas Republicans are working to redraw their state’s congressional maps, producing as many as five more US House seats for Republicans. In response, Governor Hochul has proposed “fighting fire with fire” and is reportedly reviewing legal and legislative options to redraw maps in New York in favor of Democrats. However, redrawing the lines couldn’t happen until 2028 at the earliest. Even then, it could only move forward if voters approve a constitutional amendment to permit a mid-decade gerrymander.
3. DiNapoli Releases Sales Tax Report
Sales tax collections for local governments totaled $11.9 billion in the first half of 2025, an increase of 3.7 percent over last year. While this won’t make up for funding shortfalls caused by the federal reconciliation package, this is a positive trend for CSEA members who work in local governments and the public services they provide.
4. School Cardiac Response Bill Signed
Governor Hochul signed A.785-A (Solages) into law, which requires all school districts and BOCES to implement cardiac emergency response plans. This new law will require schools to develop plans to respond to incidents involving anyone experiencing sudden cardiac arrest of similar life-threatening emergencies on any site owned or operated by a school or at a location of a school-sponsored event, including athletic events. The law will also allow school safety teams to provide voluntary first aid, CPR, and AED training to staff. The required changes to emergency response plans will take effect on January 20, 2026.
5. CSEA Legislative Toolkit
We’re encouraging members to get the word out about our legislative successes. Click the icons below for informational documents that you can print, share, and post on social media to spread the news. You can also check out our summary of the 2025-2026 New York State Budget.
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