New York now expects $4.7 billion hit from Trump tax bill by 2028

And a CapCon Q&A with Lt. Gov. Antonio Delgado.

Good afternoon — it’s Friday and Merry-Go-Round Day.

In today’s CapCon:

• The state Division of Budget has published the first quarterly update to the financial plan of the state budget. Here’s what’s in it.

• CapCon Q&A: Here’s an excerpt from my conversation this week with Lt. Gov. Antonio Delgado.

• A new bill seeks to prohibit price-gouging by for-hire transportation services during an emergency, like when Brooklyn flooded in 2023.

• Do you ever get frustrated after dealing with a state agency? You may soon be able to let them know exactly how you feel.

Names in today’s CapCon: Donald J. Trump, Antonio Delgado, Kathy Hochul, Amy Paulin, Nily Rozic, Sarahana Shrestha, Clyde Vanel, James Sanders, David Weprin, Liz Krueger, John McDonald, James Skoufis

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Hochul and State Budget Director Blake Washington (Will Waldron/Times Union)

💸 What’s in the new state budget financial plan update

We now have a clearer picture of the revenue New York expects to lose in the coming years as a result of President Donald J. Trump’s “One Big Beautiful Bill.”

The state Division of Budget dropped the first quarterly update to the financial plan for the current state budget. It lays out the state’s finances from April through June and provides a preview of what’s projected to come.

There’s good news and bad news, from a fiscal perspective.

The good news is that the general fund (think of it like the state’s main bank account) ended June with a balance $2.7 billion higher than what budget staff had estimated.

There are a few reasons for that. Revenue from the pass-through entity tax, a way for certain business owners to deduct more from their federal taxes, was $796 million higher than what was expected at this point of the year.

New York also spent about $2 billion less than expected in the first quarter, but that’s not because of fiscal discipline. It was because certain payments were delayed beyond the end of June.

Add that up and you get the $2.7 billion that New York didn’t expect to have. It’s not a surplus; it’s just the result of bureaucracy.

Here’s where we get into the bad news: the state’s balance of all funds, including the general fund, was $944 million lower than expected by the end of June, according to the update.