- New York’s overdue state budget is once again in trouble as lawmakers continue to debate a sweeping proposal to encourage new home construction.
- The plan, which appears to offer tax breaks for developers and protections for workers and tenants, has faced opposition from suburban lawmakers.
- “We can’t force the private sector to build,” Democratic Gov. Kathy Hochul said last week. “They won’t do it if the conditions aren’t right, so I have to consider that factor.”
New York state’s budget is at risk of being delayed again as closed-door negotiations over a sweeping proposal to boost new housing construction continue to stall spending plans.
State senators passed a stopgap bill Thursday that would maintain government funding and extend the budget deadline until April 15. The Legislature approved the bill on Friday and will send it to Gov. Kathy Hochul’s office for signature.
The budget has been delayed several times this year as Mr. Hochul and Democratic leaders in Congress wrestle with dozens of competing demands in closed-door talks.
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Housing has been a major sticking point in budget negotiations, with government officials trying to balance the demands of developers, tenants and workers to reach a deal that would increase the number of housing units.
The agreement is expected to include tax breaks for developers to encourage development, wage agreements for workers, and protections for tenants against some rent increases and evictions, but details are still unclear. do not have.
Hochul, a Democrat, has made increasing housing stock a top priority.
Last year, she was unable to move forward with a plan to build 800,000 new homes in the state, which was scrapped due to opposition from suburban lawmakers. The governor is currently pushing for more housing on commercial and state-owned land, as well as tax incentives for developers to include affordable housing in new buildings.
“We cannot force the private sector to build,” Hochul told reporters at Parliament House last week. “They won’t do it if the conditions aren’t right, so I have to consider that factor.”
The New York State Senate meets in the Senate chamber on the opening day of Congress at the State Capitol on January 8, 2020 in Albany, New York. (AP Photo/Hans Pennink, File)
Hochul also said he is open to some type of tenant protection proposal, which is important to Congress and Senate leaders.
“We want to be able to build and we want to be able to protect tenants,” said Senate Democratic Leader Andrea Stewart-Cousins.
Mr. Hochul’s plan to change the way the state distributes funding to school districts, which would mean some schools would receive less money, had been a point of contention at the bargaining table and among school administrators. The governor told reporters last week that he would withdraw the proposal and instead reconsider it next year.
State legislative leaders also continue to push back against the governor’s efforts to strengthen criminal penalties for assaulting retail employees as part of a broader strategy to address criminal justice concerns in the state. .
Negotiations also continue over how authorities will crack down on the unlicensed marijuana dispensaries that populate New York City, as bureaucratic hurdles and lawsuits hobble the legal market. Last month, Mr. Hochul ordered a comprehensive review of the state agency that regulates legal marijuana in New York.
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The budget, originally due April 1, is expected to exceed $230 billion.
