Governor Andrew Cuomo and leaders of the Assembly and Senate announced a tentative deal late Wednesday night.
The new budget will include an increased minimum wage.
It's expected to be raised to $9.00 an hour by 2016.
Middle income families would also receive a $350 tax credit, and there will be a tax cut for small businesses.
The spending plan will also include an economic development package worth roughly $300 million.
Votes are expected this weekend. Governor Cuomo calls the early agreement a breakthrough.
"Hopefully this is going to be another budget that shows the people of the State of New York that government can work well and people can put aside their political differences and come together to do public service," Cuomo said.
Republican Assembly Minority Leader Brian Kolb said it will be important to look at the details.
"Certainly until we go through all the details and the language of exactly what's going to go in (the budget) then you say there's going to be some good stuff and some not so good stuff," said Kolb.
The next fiscal year begins April 1. Lawmakers hope to wrap up their votes on Monday.