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Budget Update
The FY 2027 budget was due April 1st, and the first budget extender has been passed. The extender expires on Tuesday, April 7th at which time another extender will need to be passed if a budget agreement is not reached, something that at this point is highly unlikely with the holidays and members having left Albany on Wednesday.
According to press reports none of the big-ticket budget items are close to being resolved. Some progress has been made on some of the less significant items in state budget talks, according to Senate Majority Leader Stewart-Cousins.
One of the top sticking points in state budget talks remains Governor Hochul’s proposed amendments to New York’s mandates to reduce carbon emissions. She wants to move the deadline to 2030 for the state to promulgate regulations to rapidly reduce emissions, set a new emissions reduction mandate for 2040 and change how the state measures its progress toward those mandates.
“We still don’t think we have full language from the governor of what she’s actually proposing,” Krueger said Tuesday. “I wish I could tell you there was a specific proposal in writing to share with everyone. But we don’t have one.” Without that language, there’s been no progress in discussions over potential amendments to those mandates.
Another of the sticking points in budget talks is Governor Hochul’s package of proposals intended to lower the cost of car insurance. She is proposing a handful of changes intended to lower costs for car insurance companies, who she’s said would pass those savings on to consumers. Several Democrats in the state Legislature aren’t convinced that costs would decrease for drivers if they approve Hochul’s proposals as they’re written, or at all.
Another of the key issues in the New York state budget is centered on proposed tax hikes in the one-house budgets. Democrats in the Assembly and Senate have included varying ideas in their budget proposals to increase taxes on people making over $5 million and proposals to raise corporate taxes on businesses with incomes of at least $5 million a year.
The conversation over how lawmakers will move forward is still up for discussion. “We really haven’t started talking about the money part,” said Senate Majority Leader Andrea Stewart-Cousins. “Our one houses express our willingness to make the uber wealthy pay a little more. We’re willing to have corporations that are doing well pay a little bit more because we’re in a time where not only are there the threats from Washington, but we have needs that we need to meet.”
State Budget Director Blake Washington when speaking with the Legislative Correspondents Association Wednesday confirmed that Hochul was opposed to allowing New York City to raise taxes on large corporations. She’s previously said she opposes raising income taxes on high-income earners but has been less clear on corporate taxes.
“We want businesses that provide meaningful jobs to remain in the state of New York,” Washington said. “We don’t need to provide extra impetus for anybody to leave.”
During his discussion he was also asked about a push from local government groups for the state to fund any changes to New York’s public pension system.
“No, just candidly no,” Washington said of the state footing that bill. “Because the state would have its own share to pay and I think that shared responsibility in financing public sector pension systems has been the bedrock principle since they were created in the state of New York. That won’t change.”
We will continue to keep you updated as the budget process moves forward.
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