Today, for the first time in seven years, New York State is operating under an emergency budget; it will keep State agencies operating through May 31 at spending levels extended from the past fiscal year, and it includes some new items, notably $2.5 billion for water infrastructure. This emergency legislation is preferable to a government shutdown, but creates uncertainties for school districts and local governments. Achieving a fiscally sound budget is more important than an “on time” budget, but the pressing outstanding issues could and should have been resolved as part of a more effective and accountable budget process. The Legislature and Governor should promptly come to an agreement that includes needed reforms to the State’s Foundation Aid formula, improved targeting and disclosure of economic development spending, and overall fiscal discipline.