Breaking down what’s stalling Hochul’s budget after April 1 deadline passed

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After missing the April 1 deadline to finalize her budget for the 2024 fiscal year, Gov. Kathy Hochul and state lawmakers now have five days left to reach an agreement before a Monday budget extender expires and halts state operations on April 10.

As the new deadline approaches, lawmakers and political and advocacy organizations continue to contest key points in Hochul’s $227 billion FY24 budget. Here’s a breakdown of the main issues stalling a final agreement.

Bail

Hochul’s proposed plan to reform New York state’s cashless bail law continues to be the foremost cause of the budget’s deadlock.

The law comes from legislation passed in early 2020 under then-Gov. Andrew Cuomo, which eliminated cash bail for not-violent felonies and most misdemeanors. Hochul wants to expand the criteria that judges are able to consider when setting bail.

The budget would also expand the number of bail-eligible offenses in New York state. The original reform law’s reduction led to a 40% decrease in New York jail populations.

After dropping the measure from last year’s budget, Hochul is again pushing to get rid of the “least restrictive” standard, which makes judges set bail at the lowest threshold necessary to control flight risk.

Sarahana Shrestha (D-103), a vocal critic of the proposal, released a statement Monday claiming Hochul’s push for the plan has caused the budget to be “held hostage for political points” and the changes are unsupported by data and more about politics than spending.

Outside groups have also publicly opposed the law, including a group of over 100 law professors who released a letter last week rejecting the plan.

Hochul maintains that the current laws result in “finger-pointing” and confusion surrounding the criteria from which judges make bail decisions, and argues the changes are necessary to decrease crime.

Healthcare

On Wednesday afternoon, healthcare workers from across central New York gathered at Clinton Square in downtown Syracuse to protest the budget.

The protest was held by 1199SEIU, a labor management group that provides funds to healthcare workers across the nation. SEIU claims Hochul’s proposed budget fails to meet healthcare needs as it includes cuts to hospital funding.

While Hochul’s budget outlines a 5% increase in Medicaid reimbursement rates, SEIU said it wants the state to implement a 20% increase for hospitals and 10% for nursing homes, with a $2.5 billion investment in healthcare services.

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Minimum wage

SEIU is also advocating for a further raise to the New York state minimum wage. The wage, currently set at $15 per hour, would change to an unspecified rate under Hochul’s proposed budget. According to Hochul’s plan, the inflation-adjusted increases would be capped at 3% annually. SEIU is pushing for a minimum wage of $21.25 per hour by 2027.

Assembly members said the raise isn’t enough for low-income New Yorkers to make ends meet with rising inflation and costs of living.

Environmental policy

After weeks of contention over the budget’s proposed climate legislation, which would loosen methane emissions regulations, Hochul agreed to drop changes to emissions accounting rules on Wednesday, Politico reported.

The concession comes after pushback from groups like the Green Party of New York, which released a statement on Monday criticizing the plan and maintaining it would benefit the fossil fuel industry instead of implementing meaningful environmental protections.

The budget’s climate provisions will retain new cap-and-invest policies which, if passed, will supply a $1 billion Climate Action Fund.

Housing

Hochul’s budget plan calls for the construction of 800,000 new homes to be built across the state over the next decade. State legislators have said the plan is too ambitious and may lead to an increase in rent prices.

Onondaga County Executive Ryan McMahon said Hochul’s housing goals can’t be met feasibly in rural areas. He said building more housing in rural areas will mean expanding municipal services like sewage, the funding of which the budget doesn’t specify, Spectrum Local News reported.

Hochul proposed changing zoning laws to allow for more construction and tax breaks for the redevelopment of blighted properties. The state assembly has countered these plans with financial incentives that don’t include tax breaks.