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New York Governor Kathy Hochul and state lawmakers are racing to reach a budget agreement with just eight days left before the April 1 deadline, and several key issues remain unresolved.
According to the Times Union, if no deal is reached by April 1, Hochul and the Legislature will need to pass a short-term spending plan to keep the state's workforce paid while negotiations continue. Notably, state lawmakers — who each earn $142,000 annually — don't receive their own paychecks until a final budget is signed. That creates pressure on legislators to reach a deal, though the two sides remain far apart on several critical fronts.
Energy and Emissions Policy
One of the biggest sticking points is Hochul's proposal to modify the state's Climate Leadership and Community Protection Act (CLCPA). Hochul wants to push back the deadline for the state to issue emissions-reduction regulations to 2030, arguing the current timeline would drive up utility costs for New Yorkers.
"We're talking about approaching this with a serious vision toward how we can achieve the goals in a way that is actually doable and will not break the backs of New Yorkers," Hochul said.
But many lawmakers — including Senate Finance Chair Liz Krueger — oppose any changes to the CLCPA. "If reducing costs is really the governor's goal, there are literally dozens of actions that the state can and should take that will both reduce costs and help us meet our reality-based climate targets," Krueger said.
Auto Insurance and Fraud Reform
Hochul is also pushing hard for changes to how the state handles car crash lawsuits, aiming to lower auto insurance premiums by cracking down on staged crashes and limiting payouts to those found mostly at fault. As reported by Dickinson Avella, the Metropolitan Transportation Authority says Hochul's proposal could save the agency $48 million if enacted.
Trial lawyers are pushing back hard. Andrew Finkelstein, president of the New York State Trial Lawyers Association, argued that insurance companies are already profitable and said their pricing practices lack transparency. "There is a reason those companies resist opening up their books to the public or to regulators," Finkelstein said.
Buffer Zones Around Houses of Worship
Hochul also wants the final budget to include a 25-foot buffer zone for protests near houses of worship — a proposal that gained attention after demonstrators gathered outside a Manhattan synagogue last November. Some lawmakers support the idea, but others say it may fall out of the final deal.
Donna Lieberman, executive director of the New York Civil Liberties Union, called it unconstitutional. "No-speech zones defy basic well-established constitutional principles," she said.
Taxes and New York City's Budget Gap
Taxes are another flashpoint. The state Legislature wants to raise income taxes on top earners and increase corporate tax rates. Hochul has firmly opposed broad-based tax hikes, though she has proposed $1.5 billion in additional state aid to help New York City close a $5.4 billion budget shortfall. New York City Mayor Zohran Mamdani is pushing the state to allow the city to raise its own local income and corporate taxes.
"We'll also find a path to help the city," Hochul said Monday (March 23).
Environmental Review and Housing
Hochul is also seeking changes to the State Environmental Quality Review Act (SEQRA), which governs environmental review of new development. She wants to carve out an exception for certain housing projects and set stricter timelines for projects that still require review. Hochul held a roundtable Monday (March 23) to promote the proposal, suggesting lawmakers have been slow to embrace it.
"I feel optimistic that the Legislature will agree and we'll be able to get this resolved," she said.
With the Legislature scheduled to be in session through Thursday and the budget due Wednesday, April 1st, all eyes will be on Albany this week as the clock runs out on reaching an on-time spending plan.
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