Gov. Kathy Hochul: State budget to include rise in minimum wage, cigarette tax

ALBANY — The new state budget will include a minimum-wage hike, a cigarette-tax increase, a crackdown on unauthorized sales of cannabis and requirements for electric appliances and heating systems in new construction, Gov. Kathy Hochul said Tuesday.

But just when the budget, which was due March 31, will be approved remained in question.

In her first comments about the budget negotiations in more than a week, Hochul cautioned that in Albany’s budget process, in which an overall agreement hinges on linking deals for disparate issues, “Nothing is really over until it’s over.”

Negotiations continued Tuesday on many items and some rank-and-file legislators said passage of budget bills could go well into the weekend.

In a news conference, Hochul said an increase in the cigarette tax will be in the budget to discourage smoking. She had proposed a $1 increase in the cigarette tax, to $5.35 per pack, but didn’t say what the final tax increase will be.

Hochul also acknowledged her proposed ban on menthol cigarettes may be dropped. Black leaders have expressed concern police could use such a law as a pretext to harass smokers of menthol cigarettes. Cigarette companies had heavily marketed menthol cigarettes in Black communities.

Hochul said the final budget also will include a way to prohibit retailers from selling cannabis products without the required state certification.

New York legalized cannabis for adult use in 2021, but it could only be sold by retailers who were vetted and authorized by the state. Unauthorized sellers, however, have flooded the market, legislators and business groups have said.

Hochul said her proposals to combat climate change will result in a measure requiring electric-powered appliances and heating in new buildings.

But referring to Republican assertions about her proposal Hochul said, "No one is going to have to give up their gas stoves. We are looking to make sure we transition New York to a clean energy future.”

Hochul said the state may provide rebates to utility ratepayers and consumers to ease the cost of transferring to clean energy producers.

Hochul also said her proposal to raise tuition at the State University of New York and the City University of New York may, as legislative sources have said, change to an increase only for out-of-state students.

Hochul also said state aid to SUNY and CUNY may rise to make up for years of inadequate funding.

Hochul said the minimum wage would rise, but didn’t provide specifics.

According to legislative sources, an increase in the minimum wage would be phased in — to $17 an hour in New York City and $16 in most other areas — and then indexed to rise with inflation.

The minimum wage is $15 in New York City, on Long Island and in Westchester County, and $14.20 upstate.

Hochul also dismissed criticism about the lateness of the budget, which will be the tardiest state spending plan in a decade. However, there have been years in which budgets passed in July and August.

“New Yorkers … want me to fight for affordability,” Hochul told reporters. “At the end of the day, I don’t think New Yorkers or anyone outside this room would be focused on the length of time, but to be looking at the quality of my blueprint leading this state forward.”

Hochul also offered an explanation for the removal of a top priority — a housing affordability program that no longer is part of the budget talks.

Hochul sought in her original proposal to increase housing availability in an effort to reduce the cost of housing on Long Island, New York City and many other areas statewide.

The “cornerstone” of the proposal would've created a state board with the power to overrule local zoning officials who reject housing projects due to concerns about the character of neighborhoods. That provision faced strong political opposition on Long Island and elsewhere.

“I felt like Wayne Gretzky,” Hochul said, referring to the Hall of Fame hockey great who once said, “You miss 100% of the shots you don’t take."

“I took the shot,” Hochul said.

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.