A late budget is so common that most people think it is normal and appear unconcerned. It affects the State's credit rating, causing the state to have to pay higher interest rates on any borrowed money. School districts must borrow money to pay for planned projects and services, since they do not know how much money they can expect from the State. Small business must carry state debt for any services rendered to the State and they increase their cost to cover this burden.
Some legislators suggest that a protracted budget means a better budget.
A protracted budget being good or bad for the State depends on the person to whom you talk. People wanting to spend more state money for their favorite programs will speak in favor of a protracted budget. Those wanting less government and more physical restraint will speak against a protracted budget that spends more money. Politics plays a big role in the passing of the budget. The New York State Constitution contains definite rules for passing the state budget.