Both houses of the New York state Legislature on Thursday voted to adopt their one-house budget proposals, their rebuttals to Gov. Kathy Hochul’s executive budget pitch that will fuel the negotiation process as Hochul and legislative leaders work to come up with a deal by April 1.
Democratic leaders have aggressively pushed an “affordability” agenda this year in the wake of November’s election in which they were widely seen as being out of touch with voters.
The votes came with a backdrop of Hochul announcing a meeting with President Donald Trump in Washington D.C. at 9 a.m. Friday.
“I reached out to the president yesterday, said I wanted to carry on the conversation we had in the Oval Office a couple weeks ago,” she told reporters Thursday afternoon.
She said she plans to discuss congestion pricing and infrastructure projects, including New York’s Penn Station, while Trump is looking to discuss a gas pipeline that New York has blocked. While the state and the Trump administration have traded barbs as well as lawsuits, Hochul and Trump themselves have made an effort to get along personally.
Hochul also plans to take her affordability agenda to Washington, bringing her concerns about the fiscal impact of Trump administration policies on New Yorkers straight to the Oval Office.
“I want to talk about our concerns about energy in light of the tariffs, so we’ll have quite an agenda and I look forward to the meeting tomorrow morning,” Hochul said.
The governor and the Legislature, however, have made it clear that they won’t be going out of their way to replace every federal dollar that New York may lose as Republicans work to slash spending in Washington.
“You have to ask the Republican members of Congress why they are allowing this to happen,” state Assembly Speaker Carl Heastie said.
As she hammers home a focus on affordability, some of her signature proposals including rebate checks of up to $500 for some New Yorkers and an expanded Empire State Child Tax Credit appear to be in danger.
State Senate Majority Leader Andrea Stewart-Cousins said this week that the Senate would favor checks only to seniors over three years, to be bolstered by a proposed Working Families Tax Credit, credits for small businesses, and a tax hike for the state’s highest earners.
Lawmakers in the Senate have said Hochul’s proposals are one shot, short term solutions.
“We are trying to look at a more longer term relief in terms of taxes for a broad category of people,” Stewart-Cousins told reporters this week.
Hochul’s rebate checks survived in the Assembly.
“This is a signature proposal from the governor, and it polls extremely well, by the way,” Heastie said. “So we’ll see what happens.”
The Assembly also proposed raising taxes on high earners and will be pushing for a larger middle class cut, and a quicker implementation of the governor’s enhanced child tax credit.
Republicans, unsurprisingly, are not on board with either one-house budget pitch. State Sen. George Borrello told Spectrum News 1 after the vote that with ballooning state spending, there’s nothing behind Democrats' focus on affordability.
“If spending more money made New York more affordable, we would be the most affordable place on earth but we’re not, so we have to continue to recognize the face that New York is a more expensive, more dangerous place to live, and that’s what has not been addressed in this one-house budget."