State Legislature returns to deal with late budget; another extender planned

ALBANY — The State Legislature returns to Albany on Monday to negotiate a state budget with Gov. Kathy Hochul, but a deal remains elusive as state government is mired in its eighth late budget in 10 years.

The majority conferences of the Senate and Assembly plan to approve another budget “extender” to prolong negotiations at least another week unless a deal comes together unexpectedly fast, according to all sides of the talks. A budget extender approved April 3 expires Monday.

Budget extenders keep state operations running and paychecks flowing to all state workers, except senators and Assembly members. Under a 1998 law to try to stem a series of long-overdue budgets at the time, biweekly paychecks from the $142,000 annual base pay of legislators is suspended until an overdue budget is passed.

“We’ve been meeting regularly; our staffs are constantly meeting,” Hochul told reporters last week. “There’s a lot of activity, as always happens, behind the scenes. I’m here every day … ."

“I’ve always said I need to accomplish certain goals,” she said.

Key among her policy goals for the budget agreement is her proposal to amend a 2019 law that sought to eliminate bail for most nonviolent felonies. Hochul wants to end a provision that says judges should use the “least-restrictive option” for ensuring that a defendant returns for a court date. Legislative leaders said they are open to clarifying a judge’s powers as long as it doesn’t weaken the bail law.

Hochul also faces opposition from many in the Democratic majorities of the Senate and Assembly over her proposal to increase housing and affordability statewide. She wants to give a state board the power to overrule local zoning officials who reject new housing projects for reasons other than public safety.

She said her housing proposal is needed to counter stagnation in the state’s growth that she said squeezes residents financially and dissuades employers from coming to New York State.

Hochul argues that increasing affordability and housing options will help keep young New Yorkers and seniors in their home communities and provide a route for minorities long hindered in moving to the suburbs. Hochul said she has spent the last several weeks meeting with officials on Long Island from both parties and Republicans in the legislature to counter the “mischaracterizing and demonizing” of her proposal.

Opponents warn the proposal would threaten the character of communities, urbanize suburbs such as on Long Island, and threaten local control of zoning.

“We say, ‘Work with us,’ ” Hochul said. “‘The plan is not what you think it is … put it where you want, just start growing again,’ and that’s how we will be unstoppable as a state.”

Governors traditionally include several major and politically contentious policies in the budget deal because under the constitution and subsequent high-court decisions, governors have extraordinary leverage in crafting a budget. Ultimately, governors could impose their own policy measures and leave the legislature with the choice of accepting them or risk shutting down government.

Legislative sources said the closed-door talks involve trying to combine Hochul’s proposal with more incentives for local governments. Hochul’s “housing compact” already would provide more than $250 million to local governments to help pay for infrastructure improvements when municipalities accept more housing.

As for bail, Hochul has held out for her proposal to no longer require judges to use the "least-restrictive" standard for releasing suspects facing serious charges and for repeat offenders. Democratic legislative leaders have offered proposals they say would clarify judges’ discretion and meet Hochul’s plan without detracting from the goal of the 2019 law. That law is intended to make sure suspects of nonviolent offenses aren’t held for days or months awaiting trial just because they can’t afford bail, legislative sources said.

Beyond that, several thorny issues remain barely touched so far in negotiations, according to all sides. Those include raising the minimum wage and indexing it to rises in inflation; the legislature’s proposed tax increase on New Yorkers making more than $5 million a year, and a proposed increase in public college tuition.

How did the state get to this point of, again, routinely missing budget deadlines? The 2018 state budget was the last one adopted on time.

Some observers say the problem is the way the state budget is negotiated, allowing contentious policy issues to be included in the talks.

“Everything is linked to everything else,” said Gerald Benjamin, a retired professor emeritus of political science at SUNY New Paltz and a veteran researcher into state government. “The bigger issue is whether this omnibus budget is a good idea. Putting policy into the budget becomes another resource of the governor … and other matters get delayed or become linked to more controversial matters and you get this situation.”

A late budget matters, Benjamin said. “It indicates the competency of government … [and] what’s really at stake here is who has the power in New York," he said. "The governor has to win some important things that others don’t want to have happen, to show who is in charge. That is what’s at stake.”

Sen. Monica Martinez (D-Brentwood) said a late budget is always disappointing, "But that’s how democracy works, where elected officials must work together to find a common ground in representing the concerns of all citizens.

“The budget process is always a difficult one given the financial constraints the state faces," Martinez added. "Additionally, there are several policy proposals that many colleagues and I do not agree with.”

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.