Albany budget talks: New push for higher minimum wage

ALBANY — Negotiations over a new state budget continued Wednesday as Gov. Kathy Hochul and legislative leaders grappled with stubborn policy issues and faced a renewed push for a higher minimum wage.

State Comptroller Thomas DiNapoli notified Hochul that the current budget “extender” that is keeping state government operating will end at noon Tuesday. Without a budget deal by then, a sixth extender would be needed.

The 2023-24 state budget was due March 31.

In closed-door budget negotiations, Hochul has proposed expanding the number of charter schools, which are publicly funded schools operated by private companies as alternatives to traditional public schools.

Hochul proposes to eliminate the cap on the number of charter schools in New York City and “reissue” charters that were held by schools that failed or closed. 

Opponents, including public school teachers’ unions, say charter schools drain funds from traditional public schools.

In Albany’s budget process, leaders in the final days of negotiations typically rush to complete an overall deal before agreements on linked issues can be unraveled by lobbyists, interest groups and rank-and-file legislators.

On Wednesday, some of the State Legislature’s most powerful members tried to do just that as they pressed for a $21.25 an hour top minimum wage that would be phased in by 2026. The effort came a day after Hochul had announced a tentative agreement to raise the minimum wage to $17 an hour. Both proposals include indexing future minimum wage increases to inflation.

The minimum wage is $15 an hour in New York City, on Long Island and in Westchester County, having reached that level in 2022. A minimum wage of $14.20 went into effect for the rest of the state this year.

“The governor’s goal for our state should be no one who makes minimum wage should live in a shelter,” Senate Labor Committee Chairwoman Jessica Ramos (D-Queens) said at a news conference. “I’m going to be pounding the pavement the next few days.”

Sen. John Liu (D-Queens) said raising the minimum wage to a living wage would lift the state’s economy by helping, “the entire band of lower wage workers.”

Ramos was joined at the news conference by legislators such as Senate Finance Committee Chairwoman Liz Krueger (D-Manhattan), Assembly Social Services Chairwoman Linda Rosenthal (D-Manhattan) and Senate Judiciary Committee Chairman Brad Hoylman-Sigal (D-Manhattan).

They face formidable opponents.

The state Business Council opposes a hike in the minimum wage so soon after it was raised and as employers battle inflation, work to recover from the COVID-19 pandemic and pay increased costs for unemployment insurance forced by the pandemic.

“The State Legislature had a real opportunity to help small businesses,” said Heather Mulligan, president and CEO of the statewide group. “But instead, they chose another tax on small businesses in the form of a minimum-wage increase that will impact all small employers across the entire state.”

A $17 minimum wage is “wildly out of touch with the lives of millions of New Yorkers,” said Michael Kink of the Strong Economy for All Coalition, an advocacy group.

“This is the problem with a budget weighed down by policy,” said Assembly Republican leader Will Barclay of Pulaski.

Referring to Democrats' control of the governor's office, the Senate and the Assembly, Barclay said: “We’re at the point where it needs to be ‘pencils down’ for three Dems in the room before more things start to unravel.”

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.