State Approves $268 Billion Budget How They Voted Auto insurance Childcare Education Environmental Immigration enforcement Public safety Utilities

Includes rebate checks, retiree changes

Teachers in the Beacon, Haldane and Garrison school districts, waiters at Highlands eateries and millions who filed tax returns in 2024 are among the winners in a newly enacted $268 billion state budget that also seeks to reduce both auto insurance rates and utility costs.

After several contentious issues delayed passage of the budget for nearly two months past the April 1 start of the fiscal year, Gov. Kathy Hochul and state legislators finalized a 2026-27 spending plan on May 28.

One of the provisions is a round of rebate checks that will be issued this fall in response to rising electricity and gas rates. An estimated 8.2 million residents who filed taxes in 2024 and made up to $300,000 will receive checks ranging from $100 for individuals to $200 for joint filers.

Another utility-related initiative in the budget will freeze electricity and gas rates at existing levels if the Public Service Commission denies a utility's request to increase prices. Jonathan Jacobson, who introduced the proposal in the Assembly, said it amends state law that allowed a utility to automatically receive its full request if the PSC rejects its proposed new rates without proposing an alternative. "For too long, utilities have held customers hostage to their demands," said Jacobson, a Democrat whose district includes Beacon. "Now, if the PSC determines that the rate increase should be zero, it will be zero."

Waiters, bartenders, food deliverers and other workers who rely on tips will not have to pay income taxes in 2026 on gratuities up to $25,000, in line with federal law. Hochul and state lawmakers also agreed to revise the Tier 6 retirement bracket, which applies to state and local public employees whose service began on or after April 1, 2012.

The state budget is a series of bills passed by the Senate and Assembly and enacted by the governor. Here is how Sen. Rob Rolison, a Republican whose district includes the Highlands, and Assembly members Jonathan Jacobson, a Democrat whose district includes Beacon, and Dana Levenberg, a Democrat whose district includes Philipstown, voted on the budget bills on May 26 and 27.

State Operations (S9000D)

Senate 43-19: Rolison yes | Assembly 102-40: Jacobson yes; Levenberg yes

Legislature and Judiciary (S9001A)

Senate 45-17: Rolison yes | Assembly 98-44: Jacobson yes; Levenberg yes

Debt Service Fund (S9002A)

Senate 48-10: Rolison yes | Assembly 109-34: Jacobson yes; Levenberg yes

Aid to Localities (S9003D)

Senate 44-18: Rolison yes | Assembly 112-30: Jacobson yes; Levenberg yes

Capital Projects Budget (S9004D)

Senate 45-17: Rolison yes | Assembly 111-31: Jacobson yes; Levenberg yes

Public Protection and General Government (S9005C)

Senate 39-22: Rolison no | Assembly 93-47: Jacobson yes; Levenberg yes

Education, Labor, Housing, Family Assistance (S9006C)

Senate 58-3: Rolison yes | Assembly 119-25: Jacobson yes; Levenberg yes

Health and Mental Hygiene (S9007C)

Senate 42-20: Rolison yes* | Assembly 102-41: Jacobson yes; Levenberg yes

Transportation, Economic Development, Environmental (S9008C)

Senate 53-10: Rolison yes | Assembly 110-33: Jacobson yes; Levenberg yes

Miscellaneous Legislation (S9009C)

Senate 38-24: Rolison yes* | Assembly 91-52: Jacobson yes; Levenberg yes

*Rolison was the only Republican to vote yes on this bill.

Teachers and teaching assistants in that bracket will be able to retire five years earlier, at 58. The changes also raise the amount of overtime firefighters and police officers can use in calculating their salaries for pension purposes from 15 percent of annual wages to 25 percent. For members of the state Employee Retirement System, the overtime ceiling rises from $22,000 to $30,000 and will increase another 3 percent each year, and the portion of their salaries deducted for retirement will be reduced.

While labor unions celebrated the changes, the lower individual contributions to pensions will "result in new pension costs for local government...