New York/Florida State Budget Comparison, FY 2027 Edition

Manhattan Contrarian ^ | 5 Jun, 2026 | Francis Menton

[MtnClimber]

New York’s and Florida’s respective state budgets have just been finalized for what they call the 2027 “fiscal year.” In New York’s case the FY runs from April 1 to March 31, so the budget is supposed to be final by April 1; but, this being New York, the budget was about 8 weeks late. In Florida the FY runs from July 1 to June 30, and the legislature has already completed its work on the FY 2027 budget.

Ability to meet fixed deadlines is just one of many ways in which Florida exemplifies responsible state government while New York exemplifies the irresponsible version. Over the past several years, I have had multiple posts comparing state governance in New York versus Florida, for example this post from June last year comparing the budgets of the two states. With another year’s budgets now complete, it’s time for an update.

The short version is that with each passing year the New York/Florida comparison gets a little better for Florida and a little worse for New York. The change may be small in any given year; but over ten years, or twenty, the difference becomes huge. And the important changes are always in the same direction.

Here is the announcement from the New York State Assembly of the total size of the FY 2027 New York State budget: $268.1 billion. Last year the number was (from my blog post, based on the State’s Executive Briefing Book): $252 billion. So the increase is $16.1 billion, or 6.4%. For reference, the consumer price index increased 3.8% from April 1 2025 to April 1 2026.

In Florida, the enacted budget amount, from a May 26 State Senate release, is $114.5 billion. That amount actually represents a small decrease from last year’s figure of $115.1 billion.

Population figures come out with about a year delay, so the latest estimates from the Census Bureau are from July 1, 2025. At that date, the estimate for Florida was 23,462,518 (up from 23,372,215 on 7/1/24); and for New York 20,002,427 (up from 19,867,248 on 7/1/24). If you believe these Census estimates, New York’s population actually went up slightly more than that of Florida during that interval (135,179 v. 90,303).

But even with that slight narrowing of the population gap, Florida’s population remains 17.3% higher than that of New York, while its budget has gone from 45.7% as much to now only 42.7% as much. On a per capita basis, New York’s spending this year is $13,400, versus $12,700 last year. In Florida, per capita, state spending is $4,880 this year, versus $4,920 last year. So per capita state spending in New York has gone from 2.58 times that of Florida last year to 2.75 times higher this year. That is a substantial change in just one year.

The respective releases from the two legislatures illustrate the extent to which the two states have completely opposite ideas of the purpose of state government spending. In Florida, the goal is to minimize state spending to accomplish only necessary purposes:

“The best thing we can do to keep Florida affordable is to keep taxes low, limiting the financial burden taxes and regulations place on Florida’s families and businesses. To keep taxes low, state government has to live within its means, pay down debt, and save for the future. These key principles are shared by the Senate, House, and Governor DeSantis and reflect the sound financial stewardship Floridians expect and deserve,” said Senate President Ben Albritton (R-Wauchula).

In New York, it’s all about spending as much money as you can possibly get away with. Hey, it’s not “spending”; it’s “investment”!

Speaker Carl Heastie and Ways and Means Committee Chair J. Gary Pretlow today announced that the $268.1 billion State Fiscal Year (SFY) 2026-27 Enacted Budget puts money back into New Yorker’s pockets and invests in our communities and in our children’s futures. “While the federal government causes instability and uncertainty, the Assembly Majority is committed to investing in and supporting our communities,” Speaker Heastie said. “This budget makes critical investments in our students and their futures, protects immigrant New Yorkers and our communities, and puts money back into the pockets of hardworking New Yorkers. We will continue working to uplift all New Yorkers.”

Looking at the vast discrepancies between state spending in the two states, I noted in my post last year that New York does not have any large areas of spending that Florida does not have. Rather, New York just spends hugely more on the same basic functions without achieving measurably superior results. In particular, last year New York spent about 50% more per student on K-12 education, and more than triple the amount that Florida spent on Medicaid and other healthcare for low income people, servicing a population almost 20% less. For that additional spending, New York did not achieve any notable measurable superior results by such metrics as, for example, the NAEP tests for K-12 students, or in the case of medical care, in life expectancy. Those metrics have not changed meaningfully.

So what is New York Assembly Speaker Heastie talking about when he says that the state’s budget “puts money back into New Yorker’s [sic] pockets”? Read a little further into the release, and you learn that this line refers to a perfect example of New York’s deceptive budgeting. The specific program Heastie is talking about is a plan to partially offset rising electric utility rates by handing each ratepayer a rebate check of $100 to $200:

The enacted budget includes funding to provide relief to families struggling with rising utility rates through Protecting Our Wallets Energy Rebate (POWER) Checks. The POWER Checks will be sent out from September to December of this year and provide $1 billion in relief to 8.2 million New Yorkers. The checks will be available to full-time residents of New York and are based on 2024 tax returns. . . .

But of course, as readers here know, New York State has intentionally driven up ratepayer electricity costs with a suite of bad policies, from expanding wind and solar generation, to making it impossible to modernize natural gas plants, to joining the Regional Greenhouse Gas Initiative with other Northeastern states. Here are the latest (March 2026) state-by-state average residential electricity rates per kWh from the EIA. In New York, the average rate was 28.55 cents. In Florida, where they don’t have all the fossil fuel restrictions and the Climate Act and RGGI, the average rate was 14.86 cents. For an average household that uses about 10,000 kWh of electricity per year, the difference between paying New York rates and Florida rates is $1369 per year. Are these New Yorkers fooled into thinking they’re coming out ahead by getting a “rebate” check from the state of even the maximum of $200? Well, these are New York voters, so never overestimate their ability to do arithmetic.

Given that New York’s politicians think they are doing the right thing by endlessly growing the state government faster than the economy, the odds of these negative trends getting reversed any time soon are poor.

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TOPICS: Business/Economy; Society
KEYWORDS: leftism

[MtnClimber]

Manhattan Contrarian ping

[Opinionated Blowhard]

If there ever was a better argument for Republican governance, I don’t know what it is. Florida with its Republican dominated executive and legislative branches is incredibly well run. And that is thanks, in large part, to Ron DeSantis and his push to advance Republican policies that turned out to work. Its a shame that his campaign misfired and it seems like he no longer is a leading contender for the presidency. From a domestic perspective, he’d be better than anyone. New York is a corrupt, bureaucratic mess that has lived off of Wall Street and Fortune 500 money for way too long. The Fortune 500 money is leaving. Let’s see if Wall Street money can sustain their insane policies. Mamdani is putting that to the test.

[mewzilla]

Florida has some issues to keep an eye on...

Medicaid spending, public pensions and health insurance costs, education spending...

Looks like it’s also using trust fund and reserve money to make the budget balance.

And if this is accurate, per AI...

“Federal funds make up approximately 33% to 34% of the Florida state budget, accounting for roughly $1 in every $3 spent by the state. This translates to about $37.9 billion of the state’s total appropriations.”

FL is walking a fiscal tightrope and the only reason it hasn’t landed on its butt is thanks to federal taxpayers.

[MtnClimber]

All states get funded by the Federal Government for programs that the states oversee, like Medicare which the states also partially fund.

[Carry_Okie]

My guess is that New York’s expenses for building heat (schools would eat up a lot) are greater but both have similar AC bills in the summer. New York has salt, snow removal, and ice damage to roads Florida does not, but then there are those nasty hurricanes to make up for the differences.

[deport]

landed on its butt

*********

Butt landings aren’t all that bad

[Gunslingr3]

“Federal funds make up approximately 33% to 34% of the Florida state budget, accounting for roughly $1 in every $3 spent by the state. This translates to about $37.9 billion of the state’s total appropriations.”

That's disingenuous. Federal programs like Medicaid are 'matching' programs, where the Feds take FL citizens money, and the State only gets it back if they create programs and fund half of them to get the 'other half' back from the Feds. This is what you term 'Federal funds'.

FL is walking a fiscal tightrope and the only reason it hasn’t landed on its butt is thanks to federal taxpayers.

Florida has increased education spending at the same time it has for two consecutive years reduced the total state budget. Not in inflation adjusted terms, but literally spent less in nominal dollars than the year prior two years in row now.

I wish we had a president who understand the importance of reducing government spending.

[qam1]

It’s actually much worse

This is only state vs state

New York City spends about the same as entire state Florida.
So if you live in New York City you are paying 3x as much in taxes as in Florida.

No Florida city has income tax, New York City has an additional income tax added on to the state income tax

[qam1]

New York State/City is much better than Florida at plowing snow, but other than that, can someone tell me what value all these extra taxes are getting the people of New York?

[mewzilla]

I appreciate that money is fungible, but that money is not guaranteed.

And FL cannot print it.

But I’m not just calling BS on FL.

Every state in the union is pulling the same budgetary smoke and mirrors.

There is nothing conservative about raiding your reserve funds, your trust funds, relying on federal taxpayers to balance your bleeping budget.

[srmanuel]

The elections in Florida this November will be very interesting for a number of reasons.

The Republican running for Governor is likely to be current Congressman Byron Donalds, endorsed by Trump and currently has a huge campaign war chest and is leading in the polls.

The other HUGE issue voters will get to vote on this November is DeSantis and the State Legislature are proposing a radical change in how property taxes are calculated, it will substantially lower property taxes for the homesteads of Florida residents.

I haven’t read all the fine print, but my understanding is the homestead exemption the first year will be raised from $50,000 to $150,000 and then to $250,000 in year two. These changes will result in a lot of low-income Florida residents paying zero in property taxes.

This only effects the primary residence of Florida Citizens, it will have no effect on people who own 2nd homes in Florida or snowbirds who own homes elsewhere and a home in Florida. It will also have no effect on commercial properties.

The current Mayor of Jacksonville where I live is a liberal democrat and is declaring if this amendment passes, it will be financial Armageddon for local governments.

One of the side effects if this amendment passes will be a huge number of people moving to Florida that have been thinking about making move the but just haven’t made the decision, if you are paying 15-20k or more in property taxes in NY, moving to Florida will result in a huge reduction in your taxes, beside no state income tax, your property taxes will be a fraction of what you are currently paying.

[jmaroneps37]

The difference is New York is run by communist criminals.

[srmanuel]

This is very true, the one time in my over 60 years living in Florida when we have substantial snow/ice, Jacksonville where I was living threw sand on the ice which resulted in mud everywhere when everything melted in 1-2 days.

[Migraine]

Spot on. These stats really leap out. Machine politics vs populism.

[woodbutcher1963]

I live in NH where we also have no state income tax. However, we have high property taxes. We also have no sales tax. Except, for rooms & meals of 8.5%.

So, how does Florida as a state make revenue? Sales tax? hotels & restaurants ?

If the state of Florida reduces or eliminates property taxes for a large portion of people where is the money going to come from? People visiting Disney?

[devane617]

“From a domestic perspective, he’d be better than anyone...” On DeSantis...

I agree. I have no doubt he’ll be on the ticket but probably VP. To me there is no better choice for our next POTUS than DeSantis.

[srmanuel]

The base sales tax rate in Florida is 6% but a lot of counties have been allowed a tax surcharge, like Duval County where I live passed a .5% sales tax increase for schools.

Florida also gets a significant portion of their revenue from taxes on tourists, bed taxes, etc., plus they pay sales taxes on anything they buy in Florida.

Your last statement is common among many, if property taxes are substantially lowered or eliminated where is the money going to come from.

I think the question should be, does the government need the money to begin with or are local governments taxing and spending like Democrats and the only to reign in government waste is to cut the revenue and spend money on nothing but essentials.

It comes down to a philosophical question about the role of government especially at the state and local level.

[TokarevM57]

...don’t you mean Medcaid...? all states participate in Medicaid (Title 19 of the Social Security Act; Medicare
was enacted as Title 18...)....and all states receive some
level of Federal Financial Participation (the so-called
“Federal match...”).....so I don’t think it is Medicare
that you are referencing.....

[clintonh8r]

I always detect a hint of jealously and resentment in threads about Florida, usually it’s just the DSDS patients, though. This will be my 70th year in the state and I’m happier than ever about it. The state thrived even under Democrat governors….way back in the mid-20th century. We conservatives worked hard over decades to put the state where it is. We haven’t achieved perfection and we never will, but we’re always improving.