Gov. Kathy Hochul updated reporters on the status of state budget negotiations Friday during her annual visit to the LCA pressroom on the third floor of the state Capitol, which traditionally comes as budget negotiations are somewhere in the vicinity of a handshake deal.
Hochul said she does not expect a budget deal this weekend, but is hopeful that once lawmakers return to Albany and conference what she and legislative leaders discuss early next week, a deal could come within the following week. She said staff would continue to work “day and night” through the weekend.
On Friday’s show, Capital Tonight broke down what the governor’s comments could mean in the context of the inner workings of Albany.
“It’s important for the leaders to touch base with their conferences. That’s going to be the early part of next week, I would say. It’s been an important process, and I feel good about the priorities I’ve put forth, and we want to make sure we deliver a budget that is good for all New Yorkers, so that’s where we are,” Hochul said.
The budget was due April 1 and is Hochul’s fifth straight late spending plan. If Hochul signs budget bills any later than next Saturday, which is a distinct possibility, it will be the latest state budget since 2010.
Hochul told reporters that she is not interested in providing even more money to New York City to address its fiscal crisis than what has been proposed, and stressed that her staff is working with New York City officials to nail down details around her proposed pied-à-terre tax on luxury second homes worth $5 million or more, amid questions over how it will raise the projected $500 million promised to help the city fill that budget hole.
Hochul notably did not definitively rule out expanding the pied-à-terre tax to upstate municipalities on an opt-in basis, a push that State Sen. Pat Fahy has undertaken to help address the fiscal woes of cities outside of the Big Apple. Fahy has taken advantage of the late budget to gain support for the plan, but it has faced obstacles, including Hochul’s resistance to additional taxes and questions over how much money it could generate.
“This was an objective to help the city out with this particular crisis,” she said of the New York City proposal. “We haven’t had time to talk about those other areas. I’m not looking to add a whole lot more to this budget — the objective is to be closing it down. I would have to take a look at it.”
While not an endorsement, the governor’s comments were notable, considering she had no problem ruling out dialing back the PTET tax credit to assist New York City earlier in the week.
Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie lent soft support to the proposal earlier this week.
Hochul also told reporters that utility rebate checks remain on the table as part of discussions around a climate and energy package, which Stewart-Cousins said this week would address Hochul’s push to dial back the state’s climate law, along with proposals from the state Senate and Assembly to lower current utility rates.
While she said conversations around education spending are in the early stages, Hochul also did not rule out additional tweaks to the Foundation Aid formula after saying earlier this year that she wasn’t looking to make more changes.
“Some of the categories we’re looking at,” she said when asked if additional weighting for English language learners and students experiencing homelessness were still on the table.
Lawmakers return to Albany Monday.