ALBANY, N.Y. – Senator Patricia Fahy (D—Albany), Assemblymember Gabriella Romero (D, WFP–Albany, Guilderland, New Scotland), and Assemblymember John T. McDonald III, RPh (D–Cohoes) announced that the Capital Region delegation secured new state aid for the City of Albany as part of the final FY2027 New York State budget to help stabilize its finances and restore confidence in the Capital City’s fiscal future.

Under this year’s budget agreement, the City of Albany will receive:
 

• $20 million in Capital City Aid
• $20 million in new funding to be used to close the City’s current budget gap and minimize impacts on taxpayers
   

This funding builds upon previous state support for Albany, including the continuation of roughly $20 million annually in recent state budgets. The additional aid secured this year reflects Albany’s unique role as New York’s Capital City and its structural fiscal challenges.

As the state’s Capital City, more than half of all property value within the City of Albany is tax-exempt, including a substantial amount owned by New York State itself, hospitals, universities, and other nonprofit institutions, dramatically limiting the city’s property tax base while still requiring Albany to provide public safety, sanitation, infrastructure, and other municipal services relied upon daily by residents, commuters, students, and visitors alike. 

According to the New York State Department of Taxation and Finance, Albany ranks among the cities with the highest share of exempt property value in the state, with 55-62% of property value exempt from taxation. At the same time, Albany has faced rising costs tied to inflation, public safety, aging infrastructure, pension obligations, and the long-term impacts of remote and hybrid work on downtown activity and revenue generation.

Over the last several months, Mayor Applyrs and her administration have made progress in stabilizing Albany’s finances, including implementing operational efficiencies, closely managing departmental spending and overtime, amending legislation to unlock new economic development opportunities throughout the City, identifying $7.6M in savings for 2026, strengthening long-term financial planning, and working collaboratively with state leaders to responsibly address budget pressures without abandoning core city services.

“As New York’s Capital City, Albany has long-suffered from a high concentration of tax-exempt properties and state funding streams that have struggled to keep pace with inflation and rising costs,” said Senator Patricia Fahy. “This funding will ensure that Albany can begin to turn a new page in its future fiscal outlook, stabilize the City’s financial future, and ultimately, restore public confidence in the direction of the City of Albany. As an Albany resident, I’m proud that this state budget recognizes Albany’s unique financial position while working with Mayor Applyrs’ administration to deliver confidence and relief for taxpayers. We will continue to partner with Mayor Applyrs, her administration, and the Common Council to fight for Albany’s fair share and to ensure our Capital City receives the aid necessary to thrive.”

“As our Capital City, Albany has long deserved its due, and this investment reflects a hard-fought effort to deliver for our community,” said Assemblymember Gabriella A. Romero. “Albany is my home, and I’m proud that in my first term in office we were able to secure a historic investment to help build a stronger and brighter financial future for Albany. This investment will help stabilize the city’s finances, protect critical services that residents rely on everyday, and provide much-needed long-term predictability as we confront structural fiscal challenges. I will continue working with Mayor Applyrs and our State delegation to ensure Albany gets its fair share so our city can not only recover, but thrive.”

“Albany’s role as our Capital City comes with unique responsibilities and challenges,” said Assemblymember John T. McDonald III, RPh. ‘With such a significant portion of property exempt from taxation due to state government, hospitals, universities, and nonprofit institutions, the City is tasked with delivering essential services while operating within a constrained tax base. This recurring aid represents an important commitment by the State to provide greater fiscal stability and predictability for Albany moving forward. I was pleased to work alongside Senator Fahy, Assemblymember Romero, and Mayor Applyrs to help secure this funding, which will support the City’s ongoing efforts to strengthen its financial footing while continuing to provide critical services to residents, businesses, and visitors alike.”

“The State budget represents a significant investment in the City of Albany and a major win for our residents,” said Mayor Dr. Dorcey L. Applyrs “This $44.4M in funding moves Albany significantly closer to addressing the City’s inherent fiscal challenges, putting Albany on firmer financial footing for the future. I am very grateful to Speaker Carl Heastie, Majority Leader Andrea Stewart-Cousins, and Governor Hochul for this commitment to the City of Albany. I also want to sincerely thank Senator Patricia Fahy, Assemblymember Gabriella Romero, and Assemblymember John McDonald for their partnership and advocacy in securing this critical support for our Capital City. As we look ahead, my Administration will remain laser-focused on instilling disciplined budget reforms and a modernized fiscal system. Even with the City’s budget challenges, my Administration has been hard at work implementing policies on public safety, economic development, youth, entertainment, and the other areas Albany’s residents have asked my Administration to deliver on. I remain optimistic about our City’s future, ushering in a new era where Albany is rightfully seen as a premier Capital City.”

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