Affordability debate: Pass a state spending cap to rein in runaway budgets, help taxpayers

Gov. Kathy Hochul’s proposed $252 billion budget for 2025-26 is nothing more than a reckless spending spree, scattering taxpayer dollars across special interests with little regard for long-term sustainability. Lawmakers must take decisive action to rein it in. But asking legislators in Albany to exercise fiscal restraint has never worked.

We need a spending cap — a proven solution that has worked in other states and one that was adopted for schools and localities in New York more than a decade ago. It’s time for the state government to hold itself to the same standard it forces on everyone else.

The effectiveness of spending caps is not a theory; it’s a fact. In 2012, New York implemented a property tax cap that successfully curtailed school district tax increases from an average of 6% annually to about 2%. Meanwhile, states that have implemented spending caps consistently maintain lower taxes and more controlled expenditures than those that have not. The data is clear: Spending caps work.

Yet, despite the success of local spending caps, the state government has refused to apply the same discipline to its own budget. The hypocrisy is staggering. Albany had no problem forcing schools, counties, and towns to limit their spending, but when it comes to its own budget, it operates with no guardrails.

This lack of restraint has allowed spending to balloon to dangerous levels, especially after the flood of federal COVID-19 relief money. That temporary infusion of cash gave New York politicians an excuse to increase spending by a shocking 39% over just five years. But unlike Washington, Albany cannot print money, and now that the federal aid has dried up, taxpayers are left holding the bag for permanent spending increases that were never sustainable in the first place.

Put this in perspective: Had New York implemented a 2% spending cap in 2012 — the same cap it imposed on schools — when the enacted state budget was $132.6 billion, our budget today would be $172 billion instead of $252 billion. That’s an $80 billion difference. In contrast, Florida — despite having 4 million more residents and no state income tax — manages to operate with a budget that is half the size of New York’s. And yet, Florida's roads are better, its students score higher on tests, and its taxpayers are keeping more of their hard-earned money.

Without a spending cap, there is no discipline, no accountability, and no incentive for lawmakers to prioritize effectively. Albany continues wasting money with little regard for long-term consequences. Every year, spending levels increase, and once new spending becomes part of the budget, it is nearly impossible to roll back. This cycle must end.

The State Legislature must pass a bill introduced this year that would establish a much-needed cap on state spending. This legislation would rein in New York’s fiscal recklessness and prevent Albany from continuously overburdening taxpayers with unnecessary and unsustainable expenditures. Enacting this bill is a crucial step toward restoring fiscal responsibility and ensuring a stable economic future for New York.

Critics have been right to sound the alarm on Gov. Hochul’s unsustainable budget. But the real solution isn’t just temporary belt-tightening — it’s systemic reform. New York must implement a permanent spending cap to protect taxpayers and restore fiscal responsibility in Albany.

New Yorkers deserve better than skyrocketing taxes, runaway spending, and bloated budgets that benefit bureaucrats more than hardworking families. A spending cap is not just good policy — it’s common sense. The time for excuses is over. The time for action is now.

This guest essay reflects the views of Mario R. Mattera (R-St. James), who represents the 2nd District in the New York State Senate.