Is Kath Affordable?
Governor Kathy Hochul’s upcoming State of the State address on Tuesday might signal yet another record-setting budget for New York. However, her promise of “affordability” without raising taxes is drawing skepticism from various critics.
Hochul is expected to present her state budget on January 20, and there are ongoing questions about funding, particularly around the $4.5 billion earmarked for the initial phase of universal child care.
Progressives, including socialist New York City Mayor Zoran Mamdani, have argued that to sustain ambitious child care initiatives, wealthier individuals must contribute more.
On the other end of the spectrum, conservative voices like Nassau County Executive Bruce Blakeman, who is likely to run for governor this year, warn that Hochul’s budget promises could threaten the state’s fiscal health.
Blakeman expressed concern at an Albany event, stating, “If significant changes to spending aren’t made, along with essential economic development and tax reductions, New York’s budget could face very serious difficulties.” It’s a somewhat alarming warning, right?
Since Hochul assumed office in 2021, New York’s budget has grown by 23%, hitting a record $254 billion last fiscal year. That’s quite a leap.
Some watchdog organizations are cautioning that the state might face a $12.6 billion shortfall by the fiscal year 2029, compounded by potential cuts in federal funding under the Trump administration.
The financial situation appears more precarious since Hochul linked up with Mamdani. His plans for universal child care and free transportation hinge mostly on a hefty $10 billion from the state.
While Hochul seems eager to leverage Mamdani’s popularity, she has, interestingly, dismissed calls from progressive allies to increase taxes on the wealthy to fund her proposed benefits.
Andrew Lane, who heads the Citizens’ Budget Committee, commended Hochul for not raising taxes, noting this helps keep New York competitive. Yet, he also cautioned that the upcoming budget will face complex challenges. “Navigating significant structural budget gaps while anticipating federal cuts isn’t easy,” he commented. “The state should aim to avoid imposing fiscal constraints that could lead to future services cuts.”
Some left-leaning critics feel that Hochul is falling short. Lieutenant Governor Antonio Delgado, who has a strained relationship with her and is running on a progressive platform, stirred discontent by advocating for long-desired policies like single-payer health care.
He contended that without taxing the wealthy and corporations, Hochul’s child care initiative would remain “incomplete and unfunded.” It’s a fair point, really, considering the funding gap.
“Currently, we only have funding for the first two years,” Delgado noted as he embarked on a “State of the Nation” tour. “We’re looking at annual costs for child care plans around $12 billion to $15 billion. We really need to scrutinize where that money will come from.”
Despite distancing herself from some progressives, there are murmurs that they might pressure Hochul to increase taxes if she avoids taxing wealthier individuals to support child care and mitigate federal cuts to health insurance and food assistance programs.
“Governor Hochul has a choice: Tax the rich or compromise the well-being of your community. Tax the wealthy or face the risk of shutting down hospitals. Tax the wealthy or see New York’s children suffer,” the liberal group Invest In Our New York warned. “It’s time for action, Governor Hochul.”
