Hochul, lawmakers still working on details as state budget talks continue

ALBANY — Gov. Kathy Hochul and legislative leaders continued to work out the details of the state’s $237 billion budget Tuesday, a day after the Democratic governor announced a preliminary agreement.

Democrats, who hold a majority in the State Senate and Assembly, met in their conferences Tuesday to discuss the particulars as they look to come to a final three-way deal with Hochul on the 2024-25 spending plan.

Hochul, to the surprise of many in the State Legislature, publicly announced Monday evening a “conceptual agreement” on the budget, which is two weeks late.

The budget was due April 1, but has been held up by negotiations over housing and education funding.

When asked Tuesday if Hochul’s announcement got ahead of negotiations, Assembly Speaker Carl Heastie told reporters, “The pencils weren’t fully down, but I would say conceptually we probably were close on a lot of things.”

Heastie (D-Bronx) said he’s discussing the details of the budget with his members and could “see action” by Thursday.

“We still have not totally closed down everything,” he said.

Lawmakers are aiming to finalize and vote on the budget ahead of their scheduled break, which starts April 22, legislative sources told Newsday.

Hochul said the final spending plan will establish New York’s first comprehensive housing expansion in decades, including tax incentives for developing affordable housing units and converting commercial space into residential in New York City, as well as expanding accessory dwelling units, known as “granny apartments,” outside the city. The agreement also is expected to bolster protections for renters.

The agreement includes $35.9 billion for school aid, a $1.3 billion increase over the prior year, and takes the first step toward revamping the school aid formula, Hochul said. The agreement limits the growth of what’s known as foundation aid, the main aid category for schools, to 2.8% instead of an expected 5%, and calls for a study aimed to overhaul the formula.

Among the provisions announced by Hochul, the budget agreement would raise the minimum award and family-income eligibility for the tuition assistance for college. It also would give local government authorities the power to shutter illegal cannabis shops, Hochul said.

Though an agreement is in sight, lawmakers passed and Hochul signed a short-term spending bill on Monday to keep the government operating and employees paid through Thursday while negotiations continue.

Both houses are eyeing another possible extender to bridge the gap before a final budget is approved.