NYS Legislature begins passing month-late state budget totaling $254 billion

ALBANY — The State Legislature on Wednesday began passing a $254 billion budget that was due April 1 and will increase state spending by $12.3 billion.

The protracted, closed-door negotiations between Gov. Kathy Hochul and leaders of the Democratic majorities of the Senate and Assembly increased the spending plan by $2.3 billion from the budget Hochul proposed in January.

"Working with our partners in the legislature we’ve reached an agreement to pass a balanced, fiscally responsible budget," Hochul told reporters. "Good things take time and this budget is going to make a real difference for New York families."

Budget bills expected to be voted on later this week include Hochul’s plan to provide tax rebate checks of $400 to families filing joint tax returns and $200 for taxpayers filing singly. The checks are part of an "affordability agenda" that will include an expanded child tax credit and free breakfast and lunch for all students regardless of family income.

Among the measures already in massive budget bills are:

• Allowing state legislators until January 2027 to comply with a high court decision that limits their outside income to $35,000. The Court of Appeals in March rejected a court challenge by Republicans of the Democrats’ law aimed at reducing the possibility of conflicts of interest by those who hold lucrative outside jobs, typically in law firms. Legislators make $142,000 a year for their state job now. The court decision from March is estimated to impact 38% of legislators.
• Allow more campaign contributions under the program intended to encourage smaller contributions. The state public campaign finance program allows for the state to match $250 contributions to candidates. The new measure will allow that match to continue even if the contributor donates more to the candidate, up to $1,050. The program was aimed at reducing the advantage of incumbents in fundraising and was effective in 2022.
• Commits $6 billion to the Metropolitian Transportation Authority for its five-year capital program. The bill said the state share is $3 billion and New York City will provide $3 billion. Under a separation action, the MTA is supposed to save $3 billion of current spending through efficiencies.

The Republicans, who as the minority conference were not part of the budget negotiations, criticized the budget and the budget process that provided as little as 12 hours’ notice between when a deal was struck and a budget bill was on the floor of the Senate and Assembly for votes.

Hochul issued "messages of necessity" to pass the month-late budget. That suspends the state constitutional requirement of three days for pubic review of bills before they can be voted on. The provision allowing messages of necessity was created to deal with emergencies.

"The process is flawed," Sen. Thomas O’Mara (R-Big Flats) said. "We have six budget bills outstanding that are not in print. They are not finalized and we are asked to go forward on less than 21 hours notice ... that’s insufficient time ... for any of us to know fully what’s in it."

Assemb. Ed Ra (R-Garden City South) criticized the budget bills for failing to include a financial plan, which matches spending with revenue projections and estimates how spending will increase deficits in coming years.

"That puts the whole puzzle together," Ra said in a floor debate.

Some Democrats also criticized the process.

Senate Finance Committee Chairwoman Liz Krueger (D-Manhattan) said she argued against speeding to a vote with messages of necessity.

"This budget process is a flawed model." Krueger said as she performed her duty as defending the budget in the floor debate. "But it’s the model we’ve got and we need to move forward and continue to work as a legislature, both parties, with the governor on the budget process as we move forward."

The governor and legislators on both sides of the aisle say the budget may have to be reopened in the fall during a special session if threatened cuts of billions in federal aid are approved by the Republican-controlled Congress and President Donald Trump. The state leaders also say a potential recession could necessitate reopening the spending plan.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.