Cuomo was speaking at the Association of Black and Puerto Rican Legislators annual dinner when Democratic Councilman Charles Barron walked to the front of the Albany Convention Center, shouting "Shame on you" and "Stop the cuts" at the governor.
A small group in the audience of about 500 took up the chant decrying Cuomo's proposed cuts in state education and health care spending and his opposition to tax increases.
"How are you tonight, Charles?" Cuomo asked before resuming the speech Sunday evening.
Cuomo said later he believes tax increases would end up hurting New York's economy by driving more people out of the state, ultimately resulting in less tax revenue.