Gov. Kathy Hochul announced the framework for a state budget contract of about $254 million on Monday, ending a month-long deadlock on public safety issues the governor insists on include in his financial plan.
Currently, budget contracts sent to Congress for a full vote include changes to facilitate the removal of people in a psychiatric crisis from public spaces evaluated for treatment, relaxing the so-called discovery requirements for how prosecutors will pass evidence to criminal defendants at the previous stage.
Hochul also successfully pushed for a ban on endings for students who have mobile phones at schools. But another governor's policy priorities related to mask wearing restrictions have been knocked down by lawmakers over concerns that it would be selectively enforced and violated people's civil liberties.
“We went through some really challenging issues,” Hochul said at a press conference Monday afternoon. “We refused to be drawn into the toxic and divisive politics of the moment.” Majority leader Sen. Andrea Stewart Cousins ​​and Congress President Carl E. Heaty were not present at the announcement.
Changes related to criminal justice and mental health are key priorities for New York City Mayor Eric Adams and District Attorney, who has appeared with Hochul several times to sought a proposal. She made them clear priorities and irritated lawmakers who were forced to pass several so-called budget extenders to keep the government running after the April 1 deadline passed.
Hochul did not provide much details to what would change, and to what extent.
Depending on the severity of the rolling cuts to the federal grant program, other changes may still be preserved, and the ghosts have raised concern among lawmakers. Most people acknowledge that once Congress passes the budget, special legislative sessions may be required to take into account the shortages. Hochul and others have said for months that planning a cut until you fully understand it is essentially impossible.
“We can only devise a budget based on information at this point,” Hochul said, adding that the state had already been hit with a cut of around $1.2 billion.
“We may have to go back later this year and update our budgets in response to federal actions,” she added.
Still, the New York budget contract, which will be embodied and voted next week, is merely messing up the transformed financial situation that could be on the horizon in a few months, and has been made even more uncertain by President Trump's tariff-driven world trade war.
State Democrat leaders have emphasized that Republicans in Congress are willing to cut qualification programs such as Medicaid and Social Security.
However, the budget proposal called for New York to spend $17 billion more than last year. This is possible after state officials revealed earlier this month that tax revenue and the state general fund closed the fiscal year with billions of dollars more than expected.
Hochul is very aware of voters' complaints about rising costs of basic products, such as food and housing, and will be re-elected next year. Several Democrats are considering the main challenges, and several prominent Republicans, including Representative Elise Stefanik, are also considering bidding.
To boost her flagging political outlook, she served in a populist effort in January to “return money back in people's pockets.” This included $3 billion tax refunds that New Yorkers would have seen receive between $300 and $500, and a generous expansion of the state's child tax credit program.
The framework agreement with Congress included a child tax credit proposed by the governor for families with children under the age of four, up to $1,000, but the refund was reduced in negotiations amid pushing up whether it was the best use of so many cash. Currently, around $2 billion is devoted to the program, with New Yorkers receiving between $200 and $400 based on their income.
Similarly, Hochul had not promised an increase in the state's income tax, but in 2032 he proposed an extension of existing taxes for residents who earn more than $1.1 million through taxes, and bailing out middle-class New Yorkers who earn up to $323,000 a year as a joint filer. The budget contracts reached Monday maintain tax cuts, but include an increase in payroll collections for businesses with revenues of more than $10 million.
This massive person will help upgrade the entire system infrastructure to the Metropolitan Transportation Agency's $68 billion five-year plan. Small businesses will reduce their payroll tax burden due to transactions. The MTA, the state and New York City each kick $3 billion to fund the plan. Hochul also said the $1.2 billion previously allocated for renovations to the Penn Station would halt safety improvements and fare evasion.
“This is the fair plan that calls for the most from large employers, but we invite cities, states and MTAs to step up,” said Kathryn S. Wilde, president of partnerships at New York City, a business group.
Heastie said the framework agreement includes changes to the state's campaign finance matching system. Donations over $250 are currently disqualified from the matching program. The agreement provides that the state coincides with the first $250 of donations up to $1,000.
The budget agreement also includes changes to the law that allow candidates for governor and lieutenant governor to run together as tickets rather than separate primary elections as they do now. Current lieutenant governor Antonio Delgado recently announced that he will not seek another term in the role, and that he is considering a challenging Ms. Hochul in next year's primary election.
Stefanos Chen and J.R. Reports of contributions.
