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Gov. Kathy Hochul and New York state lawmakers have missed the April 1 budget deadline — for the seventh consecutive year — leaving a roughly $260 billion spending plan unfinished as negotiations drag on over taxes, car insurance reform, and other contentious policy issues.
The state Legislature passed a one-week budget extender on Tuesday, which Hochul promptly signed into law. According to Spectrum News, the extension runs through April 7, ensuring state workers will be paid on time and allowing lawmakers to skip a return trip to Albany until after Easter weekend.
Hochul has not passed a single on-time budget since taking office in 2021. Last year's stalemate stretched all the way to May 8 — the latest budget since 2010, when lawmakers didn't finish until July 1. Only 10 of the last 40 New York state budgets have been on time.
State Senate Finance Chair Liz Krueger, a Manhattan Democrat, acknowledged that talks are ongoing but offered little optimism about a quick resolution. As reported by Gothamist, Krueger said, "For now, we are where we are. We are hoping negotiations continue. I do know that senior staff are having three-way discussions and leadership is having three-way discussions on a variety of topics, but I don't have any details of finalization on anything major."
One of the biggest sticking points is Hochul's proposal to reform the state's car insurance laws. The plan would limit payouts to drivers found mostly at fault in a crash and narrow the definition of a "serious injury." Ride-hailing company Uber has backed the proposal with an $8 million ad campaign, arguing it would lower insurance premiums for drivers. The New York State Trial Lawyers Association is fighting back hard.
Andrew Finkelstein, the Trial Lawyers Association's president, said at a news conference at the Capitol on Monday (March 30), "There's a reason why the insurance companies and Uber have been funding the governor's campaign. It's because they expect a return on their investment and the return on their investment is going to come on the backs of New Yorkers who have been injured."
Hochul's spokesperson, Kristin Devoe, pushed back, saying in a statement, "The governor's common-sense proposals will root out fraud, waste and abuse that makes a few New Yorkers rich while sending costs skyrocketing for the many."
Taxes are also a major flashpoint. Democratic lawmakers are pushing to raise taxes on the wealthy and corporations, joining forces with New York City Mayor Zohran Mamdani to help close the city's estimated $5 billion budget gap. Hochul has opposed income-tax increases as she campaigns for re-election on an affordability platform.
Other unresolved issues include school aid, Tier 6 pension reform, and a proposal to limit local governments from cooperating with federal immigration enforcement authorities.
Assembly Speaker Carl Heastie, a Bronx Democrat, tried to put the delay in perspective. "We always like to have an on-time budget," he said. "But as I've always said, a better budget is more important than an on-time budget."
Republicans were less forgiving. State Sen. Tom O'Mara, a Republican from the Elmira area, criticized the pace of talks. As reported by WXXI News, O'Mara said, "There's a very concerning… lack of urgency in moving this budget forward. It just seems to me that while everyone talks about affordability, everything that's coming out of this Legislature makes things more expensive."
Assembly Minority Leader Ed Ra, a Long Island Republican, stressed the practical toll on schools and local governments. "We need to have a budget for many different reasons," Ra said. "Our school districts need to know what they're getting so they can put their budgets out."
Under state law, lawmakers will not receive their paychecks until a final budget is approved. That rule does not apply to the governor, who will continue to be paid. Budget talks are expected to continue through the coming week, with the extender keeping the government funded through April 7th.
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