Lawmakers are preparing for a difficult budget cycle as Gov. Kathy Hochul mainly cited fiscal concerns in her reasons to veto more than two dozen bills this month as state leaders navigate less federal aid and a looming government shutdown.
The governor squashed a variety of proposals in the last two weeks that could address affordability, including insurance reforms, health-related bills and other proposals.
One would have prohibited minimum rent costs for mortgage loans, or penalized by lenders for not setting high enough rent on all or part of the real estate. The governor vetoed it because it was too vague, and would create significant uncertainty in the real estate market that could increase borrowing costs and limit supply.
“I am dedicated to increasing affordability across New York state…[but] banning any terms related to minimum rents precludes provisions that federal regulators and best practices require or promote to ensure responsible lending, such as debt service coverage ratios,” Hochul wrote.
But the governor vetoed many proposals she said would impose unbudgeted costs on the state — and there’s added concerns with federal cuts and a cumulative $34.3 billion state budget gap through 2029.
One vetoed bill would have increased state benefits for disabled New Yorkers who became ineligible for a similar federal Social Security program.
Sponsor Rachel May said she understands the governor’s position, but the problem must be addressed in next year’s budget.
“It is true that we can’t just put new things in the budget mid-year without taking something else out, but there is a valid concern here,” the senator told Spectrum News 1.
Hochul is tasked with closing a $750 million gap this fiscal year because of federal cuts. May said the cost to the state would be negligible within the scope of a $254 billion budget.
“It is something we’re kind of required to do, but also it specifically would benefit the very lowest-income New Yorkers,” she said. “I think that’s something the governor would like to see happen.”
Hochul also vetoed a bill that would have required health insurance plans to reimburse pharmacists for providing contraception. The governor signed an executive order allowing New York pharmacists to prescribe hormonal contraceptives earlier this year.
“If there’s thinking this may cause upward pressure on premiums, which people pay, then we need to be mindful of that and see how we can deal with it,” said sponsor Assemblyman John McDonald III, a pharmacist.
McDonald, a Democrat from Cohoes, said the law must be changed since the order took effect to mandate pharmacists be compensated for their time to prescribe contraceptives. McDonald disagrees with the governor’s philosophy that the change would increase commercial insurance costs, and said he’ll fight for it in next year’s budget.
Democratic strategists like Trip Yang said the governor must prepare for unknown cuts from Washington as the federal shutdown drags on into its third week without an end in sight.
“New York is dealing with a lot of uncertainty when it comes to federal funding,” Yang said. “… You’ve got to deal with the the looming anxiety of [President Donald] Trump reducing federal funding for New York state.”
Yang, who supports Hochul’s re-election, said the governor’s affordability agenda isn’t changing even though she vetoed bills that would have helped low-income households. He added vetoes are part of the regular governing process, which helps get it right.
“It’s really the state agencies [that] have to regulate all these various industries,” Yang said. “And so figuring out the details oftentimes takes a long process, much longer than it takes to write a headline, for example, or write a summary of a bill. So that’s just a reality.”
The governor vetoed several bills for reasons other than increased costs to the state, including May’s proposal to give property owners the right to certain landscaping choices, like composting or pollinator gardens, even if they’re part of a homeowners association. Hochul disapproved the measure because she said it would encroach on private property owner agreements.
Hochul also vetoed legislation for the second time to create consumer protections and state regulations for New Yorkers who buy pet insurance after continued concerns the bill language did not differentiate between coverage for domesticated dogs and cats versus livestock. The governor’s office did not offer chapter amendments to amend the legislation.
“Based on last year’s veto of our pet insurance standardization bill we adjusted the current language to clearly differentiate pet insurance from animal insurance, which is typically used to cover liability or loss of livestock,” sponsors Assemblywoman Pam Hunter and Sen. Jamaal Bailey said in a joint statement monday. “Our legislation that the governor has tabled improves consumer protection and encourages best practices for pet insurance that is intended to work more akin to health insurance than what animal insurance usually covers. While the bill was passed unanimously in both houses, we understand that the governor continues to have concerns, and we will work to better understand and address those concerns in the upcoming legislative session.”
Several lawmakers who had legislation vetoed declined to be interviewed and said they did not want to publicly criticize the governor, or they’ll continue to work to reach a compromise.
McDonald agrees vetoes aren’t discouraging — instead, they offer a chance to try again.
“As I say to my colleagues, if our day comes and you have a tombstone, they don’t put your bill numbers on it, so let’s just focus on getting the work done,” he said.