Gov. Hochul seeking power to cut up to $2B in state spending in an emergency
Gov. Kathy Hochul in the State Capitol in Albany on Monday. Hochul is pushing for changes in the state budget that would give her the authority to cut up to $2 billion in state spending without an official vote from the State Legislature if revenues drop unexpectedly. Credit: Office of the Governor / Darren McGee
ALBANY — Gov. Kathy Hochul is pushing for changes in the state budget that would give her the authority to cut up to $2 billion in state spending without an official vote from the State Legislature if revenues drop unexpectedly.
The proposal, which is still being negotiated with legislative leaders, would allow the governor to create a plan for spending cuts under certain emergency circumstances that the State Legislature could choose to approve without having to return to Albany, according to a legislative source familiar with negotiations and confirmed Wednesday by State Senate Finance Committee Chair Liz Krueger (D-Manhattan).
If the legislature disagrees with the governor’s plan, it would then come up with its own reduction plan, which Hochul would have to agree to, Krueger confirmed.
Hochul, in Manhattan on Wednesday, told reporters she is seeking legislative changes to allow her to act quickly in the case of emergencies.
"The legislature would have to approve this, but it’s been in our laws before that give the governor in extraordinary circumstances to be able to operate very quickly to protect New York State without having to call the session, go through, as you know sometimes these debates take a long time," Hochul said. "I want to make sure that I can work with lightning speed if a crisis arises of the magnitude that would call for this trigger."
The proposal comes as New York and other states face increased costs because of tariffs imposed by the Trump administration on imported goods, as well as massive federal funding cuts proposed by the administration and Republicans in Congress, including to safety net programs, potentially shifting billions of dollars in Medicaid costs to the states.
Economists also have warned of a potential looming recession.
Hochul and state legislative leaders have said they wouldn’t work with hypotheticals when negotiating the state’s budget, but plan instead to come back for a special session if needed.
Cutting budgets midyear is "always terrible" and "transparency is crucial," Krueger told Newsday.
On Monday, Hochul announced a "general agreement" on the $254 billion state budget that is a month late. As of Wednesday, parts of the budget were still being discussed and budget bills had yet to materialize. Negotiations are expected to take a few more days.
Hochul's office did not respond to a request for comment on details of the proposal to allow for expedited cuts.
Former Gov. Andrew M. Cuomo was given flexibility and emergency powers during the COVID-19 pandemic, including the ability to make some spending decisions. The legislature had the power to come up with an alternative plan and also maintained some power to override his actions through a majority vote of both chambers. Many of those executive powers have since expired.
Good government and fiscal conservative groups questioned whether Hochul needs emergency powers now.
"We’re not talking about an emergency," said Cam Macdonald, general counsel for the Empire Center for Public Policy, a conservative-leaning think tank. The State Legislature is technically in session through Dec. 31, he said, though the legislative session is scheduled through June 12.
"They’re all now paid and expected to be full time legislators, so there shouldn’t be anything stopping anybody from coming back to Albany," Macdonald said.
Blair Horner, executive director of the New York Public Interest Research Group, also questioned the proposal, adding that the governor already has some power over whether what's appropriated gets spent.
"I don’t see the need for the legislature to cede authority to the executive for a crisis that may or may not happen," he told Newsday. "This is the kind of thing that should be subject to some sort of public discussion, not jammed into the budget at the last minute."
ALBANY — Gov. Kathy Hochul is pushing for changes in the state budget that would give her the authority to cut up to $2 billion in state spending without an official vote from the State Legislature if revenues drop unexpectedly.
The proposal, which is still being negotiated with legislative leaders, would allow the governor to create a plan for spending cuts under certain emergency circumstances that the State Legislature could choose to approve without having to return to Albany, according to a legislative source familiar with negotiations and confirmed Wednesday by State Senate Finance Committee Chair Liz Krueger (D-Manhattan).
If the legislature disagrees with the governor’s plan, it would then come up with its own reduction plan, which Hochul would have to agree to, Krueger confirmed.
Hochul, in Manhattan on Wednesday, told reporters she is seeking legislative changes to allow her to act quickly in the case of emergencies.
"The legislature would have to approve this, but it’s been in our laws before that give the governor in extraordinary circumstances to be able to operate very quickly to protect New York State without having to call the session, go through, as you know sometimes these debates take a long time," Hochul said. "I want to make sure that I can work with lightning speed if a crisis arises of the magnitude that would call for this trigger."
The proposal comes as New York and other states face increased costs because of tariffs imposed by the Trump administration on imported goods, as well as massive federal funding cuts proposed by the administration and Republicans in Congress, including to safety net programs, potentially shifting billions of dollars in Medicaid costs to the states.
Economists also have warned of a potential looming recession.
Hochul and state legislative leaders have said they wouldn’t work with hypotheticals when negotiating the state’s budget, but plan instead to come back for a special session if needed.
Cutting budgets midyear is "always terrible" and "transparency is crucial," Krueger told Newsday.
On Monday, Hochul announced a "general agreement" on the $254 billion state budget that is a month late. As of Wednesday, parts of the budget were still being discussed and budget bills had yet to materialize. Negotiations are expected to take a few more days.
Hochul's office did not respond to a request for comment on details of the proposal to allow for expedited cuts.
Former Gov. Andrew M. Cuomo was given flexibility and emergency powers during the COVID-19 pandemic, including the ability to make some spending decisions. The legislature had the power to come up with an alternative plan and also maintained some power to override his actions through a majority vote of both chambers. Many of those executive powers have since expired.
Good government and fiscal conservative groups questioned whether Hochul needs emergency powers now.
"We’re not talking about an emergency," said Cam Macdonald, general counsel for the Empire Center for Public Policy, a conservative-leaning think tank. The State Legislature is technically in session through Dec. 31, he said, though the legislative session is scheduled through June 12.
"They’re all now paid and expected to be full time legislators, so there shouldn’t be anything stopping anybody from coming back to Albany," Macdonald said.
Blair Horner, executive director of the New York Public Interest Research Group, also questioned the proposal, adding that the governor already has some power over whether what's appropriated gets spent.
"I don’t see the need for the legislature to cede authority to the executive for a crisis that may or may not happen," he told Newsday. "This is the kind of thing that should be subject to some sort of public discussion, not jammed into the budget at the last minute."
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