Greetings from Albany, NY  

In this edition, we bring you up to speed on the budget process: one-house budgets have been released, the first joint budget conference committee meetings are complete, and we spotlight the key issues currently on lawmakers’ minds. 

One-House Budgets

Early last week, the Senate and Assembly released their respective one-house budget proposals, and late last week they adopted their budget resolutions. These proposals respond to the Executive’s budget proposal released in January and outline each chamber’s budget priorities, serving as the starting point for three-way budget negotiations ahead of the April 1st budget deadline.

The proposals highlight several key areas of disagreement between the Legislature and the Governor, including proposed increases in income and corporate taxes, higher Medicaid funding for hospitals and nursing homes, and new regulatory measures affecting utilities and other industries. Lawmakers also declined to include several of the Governor’s policy proposals related to public safety, health care workforce scope-of-practice changes, environmental review reforms intended to accelerate housing development, and certain tax policy changes.

In addition to modifying or omitting portions of the Governor’s budget, both chambers also included new initiatives not proposed in the Executive Budget, such as energy rebate programs, additional tax credits, and new health care and consumer protection measures.

Taxes and climate issues have emerged as major points of contention, underscoring a philosophical divide between the Governor, Senate, and Assembly that may be difficult to resolve. The legislature proposes raising taxes on high income earners and large businesses — especially in the Assembly — while the Governor resists broad tax hikes. On climate, the Governor is pushing to soften or delay parts of the state’s climate law, while the legislature largely pushes back, setting up for tough negotiations over mandates and affordability.