Gov. Kathy Hochul has struck a final sweetheart pensions deal with public service unions — and Albany is only footing a fraction of the $557 million bill.

The state’s seemingly endless budget negotiations have taken place alongside talks between Hochul and AFL-CIO Prez Mario Cilento over the massive deal to sweeten pensions covering critical public employees like teachers, public health workers, and state cops.

But according to sources, only $118 million of the funding will be directly carried by the state. The remaining $440 million hole will be filled by local municipalities and public employers.

Fiscal experts warned that it could leave localities with no choice but to hike property taxes or make cuts to services.

It’s a massive comedown from the original proposals advanced by labor unions, which would have cost a staggering $1.5 billion overall, with a $249 million price tag for the state.

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Under the finalized deal, Tier 6 teachers will be able to retire penalty-free at age 58 after 30 years of service, rather than at 63, sources with knowledge of the agreement said Friday. Unions had initially pushed to lower the retirement age to 55.

State and local public employees across New York will see their pension contributions lowered to a tiered range of 3% to 5.75%, depending on their salary bracket. That change carries an overall $244 million price tag, with Albany doling out just $85 million.

The new agreement also makes changes to the overtime caps used to calculate retirement benefits for emergency personnel and civil servants.

The overtime cap for police officers and firefighters will jump to 25% of their wages, up from the current 15%. Meanwhile, corrections staff and county sheriff’s deputies will hit an overtime cap of approximately $30,000, up from the previous $22,000 limit.