State lawmakers are expected to miss an April 1 budget deadline as negotiations drag on over potential cuts to education and Medicaid spending and how to build more affordable housing.
People familiar with the negotiations said Monday that the two sides hope to pass a final spending plan in time to meet the deadline, with the Legislature hoping to adjourn for the Easter break, and by Sunday evening Gov. Kathy Hochul. There were serious doubts as to whether it would be possible to obtain signatures.
But there’s still a chance both legislative leaders and the governor will announce a broad conceptual agreement by Thursday, with negotiators returning to Albany next week to iron out the details of the thorniest parts of the deal. Officials said this is planned.
“We’re cautiously optimistic,” Blake Washington, Hochul’s budget director, told this newspaper Monday from Hochul’s office in the Capitol.
But most lawmakers who spoke to The Post on Monday were realistic that a budget would not be formalized by the deadline.
One lawmaker said of the assumption that a final agreement would be signed by Sunday: “It doesn’t look like that.”
Another said there was a good chance of seeing the Easter Bunny.
“Nothing is over until it’s over,” state Sen. Liz Krueger acknowledged to the Post with a smile Monday morning.
Officials with the state comptroller’s office have notified lawmakers and the governor that they need to pass a budget by noon next Tuesday or extend the current funding stream to ensure continued pay for state workers. said.
Among the most controversial issues being haggled behind closed doors are changes to the state’s education funding structure, cutting rapidly ballooning Medicaid spending and significantly expanding the state’s housing supply. Mr. Hochul has a suggestion.
Hochul is fighting for school funding changes that could result in cash cuts for nearly half of the state’s school districts. School districts, unions and legislators from both parties are largely united in opposing Hochul’s proposed cuts.
State senators are proposing a $1 million study to consider future overhauls of the state’s education funding system.
Hochul is also considering cutting pay increases and other measures for some home health workers to rein in out-of-control Medicaid costs.
Lawmakers flatly rejected these proposals.
But the most painful and uncertain budget battles ahead are likely to revolve around Mr. Hochul’s vision for a broad agreement that will facilitate the state’s expanding housing supply. The package includes an extension and replacement of the current 421-a tax credit for developers to build affordable housing, as well as other provisions aimed at encouraging housing development on federal lands. There is a possibility that
Housing negotiations typically involve strong opinions from a variety of competing interest groups, including real estate, labor unions, and tenant rights groups.
Several financial experts told the Post they were less concerned about the budget being executed on time and wanted a comprehensive spending plan.
“The priorities are fiscal stability, transparency, and meeting the needs of New Yorkers,” said Patrick Orechi, director of state research for the Citizens’ Budget Committee.
“If they get it right, it’s worth waiting a few days. The budget bill calls for slowing spending growth, refusing to raise taxes, and promoting housing. It also requires the public to know the full cost and improve the state’s finances. It should also include a basic multi-year financial plan so that you have a clear picture of your future.”
