Yesterday New York State Governor Andrew Cuomo floated the possibility that New York State will pass its budget in two parts this year – with an initial extender of last year’s budget, followed by a full budget later this year once the impact of Trump’s proposed spending cuts on state revenues become more clear. This serves as a reminder that although the focus right now is on the federal budget and federal tax reform, state budgets and state tax systems are inextricably linked with the federal system.  Notably, and as the Tax Foundation highlighted in a recent publication, most states piggy back their tax code to the federal tax code, so any changes made to federal definitions (such as the definition of adjusted gross income) would influence the revenue that states collect. This may lead to a positive impact in the first instance (at least on the individual side) if the federal tax base is broadened to support lower federal tax rates.  The potential impact of changes to the corporate income tax system is less clear. But, it seems that the uncertainty in this interim period (coupled with the uncertainty of federal funding for state programs) may be causing some consternation for state legislatures.