Big Ugly Hochul budget finally done

 

NY1

Nearly a month after its initial due date, New York state lawmakers and Gov. Kathy Hochul have agreed to a $229 billion state spending plan that will make changes to a controversial bail law, boost direct aid to schools by billions of dollars and keep personal income tax rates the same.

"A conceptual agreement has been reached," Hochul said at a press conference Thursday evening.

The state budget will also increase the state's minimum wage in the coming years to $16 an hour in New York City and to $15 an hour north of Westchester County. Phased-in hikes will lead to a $17 minimum wage by 2027. After that it will be indexed to the rate of inflation.

Lawmakers and Hochul have also agreed to an expansion of charter schools in New York City by allowing for 14 so-called "zombie" licenses to be revived.

The child tax credit in New York is set to expand for families with children under the age of 4, addressing the expiration of a similar program on the federal level.

After initially discussing ways in which New York's system of publicly financed campaigns — in which political campaigns match individual donations with public money — on hold, lawmakers have agreed to fund the program without a delay.

Once given final passage in the Legislature, New York's budget this year will be one of the latest spending plans to be adopted since 2010. That year, lawmakers did not approve a final budget until mid-August.

This was Hochul's second budget since taking office in 2021 and her first since she won a full term last year. Hochul struggled to include some of her key items in the budget that she made clear were priorities for her this year. 

Several of Hochul's initial proposals were pared and whittled down during the negotiations if not jettisoned entirely. A proposal to expand housing in New York through a mix of incentives for communities to build out infrastructure while also allowing the state to override local zoning officials for qualified projects was rejected by lawmakers. The proposal would have also set goals for every municipality in New York to expand housing stock in the coming years.

Hochul wants to build 800,000 new units of housing within the next decade. After an effort to reach an agreement ended in a stalemate, Hochul told reporters she would continue to pursue elements of her original plan.

The emergency rental assistance program will be expanded as well $50 million for low-income families to make housing repairs.

But the governor was able to win changes to the state's 2019 law that limited the circumstances in which cash bail is required in criminal cases after a campaign season in which crime and public safety were top concerns for voters.

Hochul also pointed to $40 million for public defenders and a pay raise for assigned attorneys providing indigent defense. She announced money for measures to combat gun violence and the State Police.

The change will give judges greater discretion in criminal cases to set bail for serious charges, loosening what's known as the "least restrictive" requirement when bail is considered.

Hochul had emphasized through the budget process she wants to address New Yorkers' concerns over crime while not undermining the initial intent of the law: addressing inequities in the criminal justice system.

On health care, the state is set to expand Medicaid spending for hospitals and nursing homes by increasing reimbursement rates.

The proposal, a 7.5% and 6.5% rise, is less than what health care networks wanted, but more than what Hochul had initially proposed.

New York will spend $34.5 billion on education, a record setting amount that also boosts direct aid to schools by more than $2 billion. The budget will also provide $134 million for schools to provide free meals regardless of a student's family income.

Hochul's initial plan to expand charter schools was reduced after objections from teachers unions.

A mobility tax to fund mass transit in the New York City area will be increased modestly, Hochul said. A two-year pilot program for free bus service on five lines will be included in the budget.

Hochul's announcement came in the evening after lawmakers left Albany and are not expected to return for several days.

Hochul called the agreement a "conceptual framework" as some legislators continue to review the specifics of the budget.

 

Cuomo's biggest and ugliest budget bill passes giving him more executive powers, more austerity cuts to Medicaid and stifles third parties from getting on the ballots

 

NY Post

Lawmakers granted final approval on Thursday to Gov. Andrew Cuomo’s sprawling $177 billion budget for 2021.

The deal ended a months-long budget fight in Albany that went haywire in recent weeks as the coronavirus pandemic swept across the state — killing more than 2,300 and crippling the economy.

The document promises to touch on many facets of life in the Empire State such as: tightening eligibility for a key health care program for the poor, legalizing e-bikes popular with delivery workers, banning flavored e-cigarette products and tweaking the bail reforms rammed through in the last budget.

Senate Majority Leader Andrea Stewart Cousins (D-Westchester) addressed the state Capitol’s upper chamber, which was abandoned due to COVID-19 fears.

“As I look around this chamber, this nearly empty chamber, it really is surreal. For me, it’s chilling in many ways, it’s upsetting,” Cousins said.

“This is not a normal budget. It’s not even the budget we envisioned a month ago.”
Cousins’ Senate easily approved the final budget bills Thursday and the Assembly followed suit, though debate stretched into early Friday morning despite little doubt in the eventual outcome.

The budget foresees tax revenues plunging by at least $10 billion and OKed up to $11 billion in short-term borrowing to cover shortfalls while New York officials pray the feds provide more aid.

The budget crunch means that an expected $826 million boost in public education spending won’t happen — $321 million was supposed to go to the city’s schools.

New York City dodged one bullet as Cuomo abandoned plans to shift as much as $1.6 billion in Medicaid costs onto the Big Apple. Instead, Cuomo will take $200 million from the city and $50 million other counties for a “distressed” hospitals and nursing homes fund.

But other Medicaid changes outraged liberal lawmakers — especially the tightening eligibility rules for the state’s elderly and disabled to qualify for home care.

“Large numbers of frail elderly and people with disabilities will be deprived of home care by these restrictive standards,” said longtime Assemblyman Dick Gottfried (D-Manhattan) who chairs the chamber’s healthcare committee. “This is unjustified cruelty.”

NY Post
  
Gov. Cuomo managed to get his controversial overhaul of the state’s election laws and campaign-finance regulations included in the sprawling $177 billion budget, effectively ending a court fight that had tied the proposal up for months.

The overhaul will make it significantly harder for third parties to maintain their lines on the ballot, including Cuomo’s bête noire, the liberal Working Families Party.

All political parties will now have to score at least 130,000 votes in a statewide general election to remain on the ballot, more than double the current requirement of 50,000. It also imposes new limits on New York’s famously loose rules for fundraising.

In exchange, candidates will be eligible to receive public funding for their campaigns.

The overhaul was first proposed by a panel commissioned by lawmakers and Cuomo in the 2019 budget, which included Cuomo ally and state Democratic Party Chairman Jay Jacobs.

The group issued their recommendations in November, which would have the force of law unless lawmakers vetoed them. However, the WFP and Conservative Party sued, claiming that Cuomo and lawmakers abrogated the proper legislative process, and won.

The biggest and ugliest state budget bill of all includes congestion pricing, plastic bag ban, and more authoritarian powers and an undeserved fat raise for Mario's son Governor Cuomo

New York Times

 After weeks of intraparty bickering, the New York State Legislature and Gov. Andrew M. Cuomo on Sunday signed off on a $175 billion budget that was wreathed with progressive initiatives, including changes to the cash bail system, a new tax on high-end homes and a groundbreaking plan to charge motorists to drive into Manhattan’s busiest stretches.

The budget deal was immediately hailed as “transformative” by Mr. Cuomo, and it will clearly have an impact felt far beyond taxpayers’ wallets. The agreement included deals that will likely change the way millions of New Yorkers shop, commute and vote: bans on plastic bags from retail stores, billions in new funds for New York’s troubled subway system and a new paid three-hour break on Election Day.

The budget’s progressive theme was a victory for Mr. Cuomo and the newly elected Democratic majority in the State Legislature, most notably Democrats who helped give the party control of the State Senate for the first time in a decade. They largely lived up to pledges to address big money in politics, raise taxes on the wealthy and overhaul a criminal justice system that disproportionately targets minority communities.

But the deal announced in the wee hours of Sunday morning also showed the limits of those 
campaign promises. Activists criticized a plan to empower small campaign donors as halfhearted. A measure to tax luxury homes was refashioned at the last minute after the powerful real-estate industry intervened. And, perhaps most significant, hopes for legalizing the recreational use of marijuana were dashed, though lawmakers could still approve that later in the legislative session.

Still, for veteran observers of Albany, the sheer variety of issues settled since January — from infrastructure to the environment, from voting rights to transgender rights — was a relief from years of divided government, when interests of Republicans in the Senate often stood in contrast to the state’s overwhelmingly Democratic electorate.

“The process seems very similar,” said Blair Horner, the executive director of the New York Public Interest Research Group, and a former aide to Mr. Cuomo. “But the product is obviously very different because you have a new majority in the Senate.”

Most of the deals announced on Sunday were largely made behind closed doors, and left to the 11th hour: Voting was likely to push right up to, and perhaps past, the midnight deadline.

Chief among the new policies was congestion pricing, which is likely to affect the habits of anyone who works or plays in Manhattan. Under the plan, the first of its type in the nation, vehicles traveling below 60th Street will be subject to a toll, revenue that will be funneled into the city’s beleaguered subways and other regional transportation needs.


Another saw a proposed pied-à-terre tax, an annual recurring tax on second homes that were valued at $5 million or more, eliminated. Although the tax had the backing of state leaders, it evaporated under pressure from real estate interests and legal concerns.

In its place, lawmakers and Mr. Cuomo agreed to a “mansion tax” coupled with a real estate transfer tax, two one-time levies that would be charged at the point of sale on multimillion-dollar homes. The tax rate would top out at 4.15 percent on the sale of properties worth $25 million or more.

A plan to ban plastic bags in the state was also included in the budget, but it makes a fee on paper bags optional, which some environmentalists worry will lessen the popularity of reusable bags. New York would be the second state, after California, to ban plastic bags. (Hawaii also effectively has a ban in place, since all the state’s counties bar such single-use bags.)

New York Post

 Gov. Cuomo just scored a 40 percent pay hike — and it’s not even the Legislature’s biggest gift to him in the new budget.
 
The late-night vote to increase the gov’s compensation — making New York’s chief executive the nation’s highest-paid — was just icing on a very fatty cake:
 
A six-member Traffic Mobility Review Board will fill in all the devilish details on the new tolls for driving in Manhattan below 60th Street — and it’s clear that Cuomo will dominate that panel while preserving his deniability.
 
 The Cuomo-controlled MTA board will get final say over the tolls, as well as how the revenues are used, new MTA Chairman Pat Foye announced. That guarantees the gov will get his way.
 
New rules boost Cuomo’s power by making it easier to replace MTA board members.
 
Mayor de Blasio and the City Council thus wind up with zero power over the new tolls in the town they supposedly run — and no say in how those funds, or the take from new “mansion taxes,” get spent. Yet these are all revenue sources that city agencies, not state ones, should control.
 
The gov also won the ability to remove unruly members from the state’s Public Authorities Control Board — further increasing his power over millions in state grants.
 A new commission will draw up the framework for public financing of state campaigns. Bet that Cuomo will either call the shots, or see that the whole thing blows up if he doesn’t like the results.

With the passage of this budget, Albany has created a gubernatorial monster.