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New York State’s 2026 budget process began in January with Gov. Kathy Hochul’s executive spending proposal. Lawmakers are now negotiating ahead of the April 1 deadline – and the decisions made in the coming weeks will shape the state’s economy for years to come.

More than 120 members of the Buffalo Niagara Partnership gathered Feb. 27 for the annual Legislative Luncheon, joined by more than a dozen state officials. The event gave employers opportunities to have direct conversations with policymakers about issues affecting economic growth, workforce development and long-term competitiveness in Buffalo Niagara.

BNP Director of Government Affairs Josh Veronica outlined where the BNP stands on the proposed budget. Attendees also heard from Hope Knight, Empire State Development CEO & Commissioner, and four legislators representing each conference in the state legislature.

Here are the key takeaways:

Support, opposition & improvement opportunities

The BNP supports several proposals aimed at strengthening the regional economy, including:

• Reforming the State Environmental Quality Review Act (SEQRA) to accelerate housing development
• Providing temporary financial assistance to the City of Buffalo to minimize property tax increases
• Expanding access to childcare to reduce major barriers to workforce participation

The BNP strongly opposes:

• Restrictions on utility companies, which increases costs for ratepayers
• “This package simply points the finger at utilities while doing nothing to address what is driving their costs,” Josh Veronica said, “such as restrictions on energy production that increase supply costs, looming electrification mandates that necessitate major capital investment and rising property taxes on utility infrastructure. We urge our delegation to fight for rate relief by taking aim at what is actually driving rates up.”

Where the BNP sees room for improvement in the final budget:

• Improving New York’s overall economic climate by lowering tax rates beyond the proposed three-year corporate tax extension
• Committing to a long-term, affordable energy and climate strategy before major costs under the Climate Leadership and Community Protection Act take effect, resulting in a 46% increase in utility prices for commercial businesses
• Creating incentives for market-rate housing and office-to-residential conversions to address downtown vacancies

Download the 2026 Advocacy Agenda for a complete look at the BNP’s top employer-focused federal, state and local priorities

What state leaders are prioritizing

• CEO & Commissioner Hope Knight highlighted continued investment in economic development initiatives, including Regional Economic Development Council (REDC) awards, Downtown Revitalization Initiative (DRI) and NY Forward (NYF) programs. She also noted the proposed Manufacturing Modernization Program to help small manufacturers adopt new technologies.
• Sen. April Baskin advocated for expanded universal childcare access across Western New York, higher wages for childcare workers and a micro Brownfield Cleanup Program to support smaller-scale development projects.
• Sen. Patrick Gallivan focused on affordability and public safety, calling for fiscal responsibility and tax relief across property, income, healthcare, workforce and energy costs. He also expressed support for vertical brownfield redevelopment.
• Assembly Majority Leader Crystal Peoples-Stokes emphasized closing healthcare gaps through strategic state spending adjustments and supporting tax credits to encourage businesses to locate in downtown areas.
• Assembly Member Joe Sempolinski backed an all-of-the-above energy strategy and legislation aimed at providing cost relief and reliable energy choices for consumers.

Additional public officials in attendance included:

• Gov. Hochul’s Regional Director, Bonnie Kane Lockwood, and her WNY regional team
• Empire State Development Regional Director Karen Utz
• Senators George Borrello and Jeremy Zellner, and the office of Rob Ortt
• Assembly Members Paul Bologna, Patrick Burke, Patrick Chludzinski, William Conrad, Karen McMahon and Jon Rivera

Looking ahead

The next Government Affairs series event, Heard on the Hill, features Congressman Tim Kennedy, who will join members in-person for a guided conversation focused on how national policy decisions are shaping the economic future of Western New York.

Heard on the Hill
Date: Monday, March 9
Time: 9:30-11 a.m.
Location: BNP @ the cobblestone

This event is complimentary for BNP members. Click here to register →

Thank you sponsors

The Buffalo Niagara Partnership extends its sincere thanks to its 2026 Government Affairs series sponsors, whose support makes these conversations possible.

Title sponsor:
Highmark BlueCross BlueShield Western New York

Premium sponsor
U.S. Businesses of Phillip Morris International

Presenting sponsors
AT&T
Charter Communications
National Fuel
National Grid
O’Donnell & Associates

Supporting sponsor
Amazon
LaBella Associates

Print sponsor
Zenger Group