1 [ THEME MUSIC ] >> ON THIS WEEK'S EDITION OF "NEW YORK NOW," GOVERNOR KATHY HOCHUL GAVE HER SECOND STATE OF THE STATE SPEECH THIS WEEK.

WE'LL HAVE DETAILS AND ANALYSIS WITH THIS WEEK'S PANEL.

PLUS, SENATE REPUBLICAN LEADER ROB ORTT JOINS US WITH HIS TAKE ON THE SPEECH AND MORE.

I'M DAN CLARK AND THIS IS "NEW YORK NOW."

[ THEME MUSIC ] >> WELCOME TO THIS WEEK'S EDITION OF "NEW YORK NOW."

I'M DAN CLARK.

SO LAST WEEK WAS TECHNICALLY THE FIRST WEEK OF THIS YEAR'S LEGISLATIVE SESSION IN ALBANY, BUT THE REAL WORK STARTED THIS WEEK WHEN LAWMAKERS GOT THEIR COMMITTEE ASSIGNMENTS AND BILLS STARTED TO MOVE, AND THE HIGHLIGHT OF THE WEEK WAS GOVERNOR KATHY HOCHUL'S SECOND NOW STATE OF THE STATE ADDRESS.

YOU'LL REMEMBER THAT LAST YEAR, HOCHUL MOVED IT BACK TO THE ASSEMBLY CHAMBER WHERE IT'S BEEN TRADITIONALLY HELD FOR DECADES, AND SHE LAID OUT A FEW BIG TICKET ITEMS FOR THIS YEAR'S LEGISLATIVE SESSION, LIKE A MAJOR INVESTMENT IN HOUSING, HEALTH CARE, AND MORE.

TAKE A LOOK.

[ THEME MUSIC ] [ APPLAUSE ] 2 >> IT WAS GOVERNOR KATHY HOCHUL'S FIRST STATE OF THE STATE AS AN ELECTED GOVERNOR AND WITH AN ELECTION BEHIND HER, SHE'S LOOKING TO MAKE SOME BIG MOVES IN THIS YEAR'S LEGISLATIVE SESSION.

>> AS I SAID IN MY INAUGURAL ADDRESS, WE ARE UNITED.

THERE'S NO STOPPING US.

WHEN IT COMES TO THE MOUNTAINS YET TO BE CLIMBED, WE'RE READY TO SCALE THEM THIS YEAR BECAUSE OF THE PEAKS WE ALREADY SUMMITED LAST YEAR.

>> THE BIG TICKET ISSUE THIS YEAR IS HOUSING.

HOCHUL SAID SHE WANTS 800,000 NEW HOMES BUILT IN NEW YORK OVER THE NEXT DECADE.

PLAN WOULD LEAN ON LOCALITIES TO HELP CREATE THAT HOUSING WITH FINANCIAL HELP FROM THE STATE.

SOME NEW TAX CREDITS AND CHANGES TO ZONING LAWS.

>> EVERY SINGLE LOCALITY ACROSS THE STATE WILL HAVE A TARGET FOR BUILDING NEW HOMES.

UPSTATE, THE TARGET IS FOR THE CURRENT HOUSING STOCK TO GROW 1% EVERY 3 YEARS.

BELIEVE ME, IT'S VERY MANAGEABLE.

DOWNSTATE, 3% EVERY 3 YEARS.

>> AND THE PLAN WOULD PROVIDE EXTRA INCENTIVES FOR AFFORDABLE HOUSING UNITS.

THAT'S TO REFLECT THE STATE'S RISING COST OF LIVING WHILE INFLATION REMAINS HIGH.

AND TO THAT END, SHE ALSO WANTS TO RAISE THE STATE'S MINIMUM WAGE AND TIE IT TO INFLATION.

MEANING IT WOULD GO UP EACH 3 YEAR WITH THE COST OF LIVING.

[ APPLAUSE ] >> COSTS GO UP, SO WILL WAGES, SO WILL WAGES.

[ APPLAUSE ] OUR FAMILIES DESERVE THIS.

LIKE OTHER STATES THAT IMPLEMENTED THIS POLICY, WE'LL PUT ON GUARDRAILS TO MAKE SURE EMPLOYERS, THE INCREASES ARE PREDICTABLE FOR THEM.

I UNDERSTAND THIS.

WE ALSO NEED FLEXIBILITY IN THE EVENT OF A RECESSION.

>> ON PUBLIC SAFETY, HOCHUL WANTS TO INVEST MORE MONEY IN LAW ENFORCEMENT, INCLUDING THE STATE POLICE AND LOCAL DISTRICT ATTORNEYS WHILE ALSO ADDING FUNDS FOR SERVICES LIKE MENTAL HEALTH TREATMENT AND RE-ENTRY PROGRAMS AFTER PRISON.

SHE ALSO WANTS TO CHANGE THE STATE'S LAWS ON CASH BAIL AMONG THE MOST CONTROVERSIAL ISSUES AT THE CAPITOL.

HER PLAN WOULD GIVE JUDGES MORE CONTROL SET BAIL ON HIGH LEVEL BAIL ELIGIBLE CHARGES.

SHE ALSO SAID SHE WOULD WORK WITH THE LEGISLATURE TO BE SURE MORE CHANGES SHOULD BE PAID.

>> SO TO MY PARTNERS IN GOVERNMENT, IN THE LEGISLATURE, LET'S START WITH THIS BASE OF SHARED UNDERSTANDING, HAVE A THOUGHTFUL CONVERSATION.

NOT THIS, BUT THIS.

AND TALK ABOUT WHAT WE CAN DO DURING THE BUDGET PROCESS AND MAKE IMPROVEMENTS TO 4 THAT LAW.

>> ON EDUCATION, HOCHUL WANTS TO BOOST FUNDING FOR PUBLIC SCHOOLS BY $2.7 BILLION AND CONTINUE THE STATE'S EXPANSION OF PRE-K AND ON HEALTH CARE, HOCHUL WANTS TO CREATE A NEW COMMISSION ON THE FUTURE OF HEALTH CARE AND BOOST COVERAGE OPTIONS FOR MEDICAID RECIPIENTS AND THOSE ON THE STATE'S LOW COST ESSENTIAL HEALTH CARE PLAN.

SHE ALSO WANTS TO BOOST MENTAL HEALTH CARE, PROPOSING MORE IN-PATIENT BEDS AND SUPPORTIVE HOUSING.

>> WE HAVE UNDERINVESTED IN MENTAL HEALTH CARE FOR SO LONG AND ALLOWED THE SITUATION TO BECOME SO DIRE THAT IT ALSO HAS BECOME A PUBLIC SAFETY CRISIS AS WELL.

>> DETAILS ON THOSE PROPOSALS AND A LOT MORE ARE ANTICIPATED IN HOCHUL'S EXECUTIVE BUDGET PROPOSAL WHICH WE'RE EXPECTING IN THE COMING WEEKS.

[ APPLAUSE ] [ THEME MUSIC ] >> AND OF COURSE, THAT'S JUST A SAMPLING OF HOCHUL'S AGENDA.

WE'LL HAVE SOME MORE DETAILS ONLINE.

WE CAUGHT UP WITH A FEW TOP LAWMAKERS AFTER THE SPEECH FOR THEIR REACTION.

ASSEMBLY SPEAKER CARL HEASTIE, A DEMOCRAT FROM THE BRONX, SAID HE WOULD HAVE TO SEE MORE DETAILS ON SOME OF THE GOVERNOR'S PROPOSALS BUT 5 BACKED HER PLAN TO TIE THE STATE'S MINIMUM WAGE TO INFLATION.

>> I THINK THAT'S A VERY IMPORTANT THING.

I THINK THE PEOPLE IN THE LOWER WRUNGS OF THE ECONOMIC SCALE HAVE BEEN SQUEEZED.

SO THE FACT THAT YOU ARE LOOKING TO ALWAYS ADJUST THE MINIMUM WAGE, I THINK IT'S A VERY GOOD PROPOSAL.

>> BUT ON THE OTHER SIDE OF THE AISLE, REPUBLICANS SAID THEY DIDN'T HEAR ENOUGH FROM HOCHUL ON LOWERING THE STATE'S COST OF LIVING, A TOP ISSUE FOR NEW YORKERS AND ASSEMBLY REPUBLICAN LEADER WILL BARCLAY ARGUED THAT RAISING THE MINIMUM WAGE WOULDN'T BE THE RIGHT APPROACH.

>> AND BY MANDATING CERTAIN WAGES, I THINK THAT JUST DRIVES BUSINESS AWAY.

ULTIMATELY WHAT WE WANT TO DO IS HAVE MORE JOBS, MORE OPPORTUNITIES IN NEW YORK AND RAISING THE MINIMUM WAGE ISN'T THE WAY TO GET THERE.

>> SOME INTERESTING DISCUSSIONS AHEAD FOR THE STATE BUDGET, WHICH IS DUE IN MARCH, BUT THAT WAS ALL HAPPENING AGAINST THE BACKDROP OF A DEMOCRATIC DIVIDE AT THE STATE CAPITOL.

AT LEAST 14 DEMOCRATS IN THE STATE SENATE SAID THIS WEEK THAT THEY WILL NOT SUPPORT GOVERNOR HOCHUL'S NOMINEE TO BE THE STATE'S NEXT CHIEF JUDGE.

THAT'S HECTOR LaSALLE, A PRESIDING JUSTICE OF ONE OF STATE'S 6 FOUR APPELLATE COURTS AND 14 VOTES AGAINST LaSALLE COULD BE ENOUGH TO TANK HIS NOMINATION.

A FEW LAWMAKERS RALLIED THIS WEEK WITH A HANDFUL OF UNION LEADERS TO OPPOSE LaSALLE.

STATE SENATOR KIRSTEN GONZALES WAS ONE OF THEM.

>> NOW MORE THAN EVER, WE NEED OUR COURT OF APPEALS TO BE THE LEADER IN SAFEGUARDING OUR CIVIL LIBERTIES, IN DEFENDING OUR DEMOCRACY, AND IN PROTECTING THE MOST VULNERABLE NEW YORKERS.

AND I URGE HER TO PULL THIS NOMINATION AND EVERY SINGLE ONE OF MY COLLEAGUES TO VOTE NO ON LaSALLE.

THANK YOU SO MUCH.

>> AS OF NOW, HOCHUL IS STICKING BY THE NOMINATION AND THE STATE SENATE HAS SCHEDULED A HEARING FOR THIS COMING WEEK, AND WE'RE EXPECTING IT TO BE A TENSE DAY AT THE CAPITOL.

HERE'S WHAT SENATE MAJORITY LEADER ANDREA STEWART-COUSINS SAID THIS WEEK WHEN SHE WAS ASKED ABOUT THE NOMINATION.

>> MAJORITY LEADER-- >> AT THIS POINT IF GOVERNOR HOCHUL WITHDREW THE NAME OF LaSALLE AND PICKED SOMEBODY ELSE THAT HAD MORE SUPPORT.

>> YOU KNOW, THAT WOULD CLEARLY BE EASIER, BUT, YOU KNOW, HERE WE ARE.

>> THERE'S ALSO ANOTHER SCENARIO THAT'S BEEN FLOATED AT THE CAPITOL.

THAT WOULD 7 BE FOR REPUBLICANS TO LEND THE VOTES IF LaSALLE MAKES IT TO THE FLOOR.

SENATE REPUBLICAN LEADER ROB ORTT SAID THIS WEEK THAT REPUBLICAN LEADERS WANT TO FEEL IT OUT.

>> MY COMMENTS, AS FAR OUR CONFERENCE GOES, I THINK THIS CONFERENCE IS KEEPING A VERY OPEN MIND ON JUDGE LaSALLE.

I THINK THIS CONFERENCE WANTS TO HEAR FROM JUDGE LaSALLE.

THEY WANT TO TALK TO JUDGE LaSALLE, AND THEY BELIEVE HE SHOULD GET A HEARING AND A FLOOR VOTE FOR JUDGE LaSALLE.

>> HE WAS SPEAKING THERE AT AN EVENT THIS WEEK WHERE SENATE REPUBLICANS UNVEILED THEIR OWN AGENDA FOR THIS YEAR.

FOR MORE ON THAT AND GOVERNOR HOCHUL'S STATE OF THE STATE, WE CAUGHT UP WITH LEADER OR THE FOR HIS TAKE ON THE SPEECH AND THIS YEAR'S SESSION.

[ THEME MUSIC ] >> LEADER OR THE, THANK YOU SO MUCH FOR COMING BACK.

I APPRECIATE IT.

>> GOOD TO SEE YOU, DAN.

HAPPY NEW YEAR TO YOU AND YOUR VIEWERS.

>> TO YOU AS WELL.

SO THE GOVERNOR GAVE HER STATE OF THE STATE SPEECH ON TUESDAY.

I'M WONDERING WHAT STOOD OUT TO YOU.

>> SO THERE WERE A COUPLE THINGS THAT STOOD OUT, I THINK, YOU KNOW, CERTAINLY 8 SHE MENTIONED BAIL AND SHE MENTIONED, YOU KNOW, SHE SORT OF DOUBLED DOWN IN HER SUPPORT FOR THE CHANGES, BUT NOTED THAT CRIME CONTINUES TO BE A PROBLEM TO NEW YORKERS.

BUT SHE REALLY DIDN'T GO BEYOND THAT AS FAR AS A PLAN OR WHAT SHE INTENDED TO DO, AND THE REASON I THINK THAT'S IMPORTANT IS MY COLLEAGUES IN THE SENATE DEMOCRATIC CONFERENCE AND IN THE ASSEMBLY DEMOCRATIC CONFERENCE, THEY'RE NOT GOING TO MAKE CHANGES TO BAIL ON THEIR OWN.

ABSENT THE GOVERNOR DRIVING THIS IN THE BUDGET OR SOMEWHERE IN SESSION, I DO NOT ANTICIPATE THAT MY COLLEAGUES IN THE SENATE, ACROSS THE AISLE, ARE GOING TO TAKE ANY KIND OF LEAD TO CHANGE THE BAIL LAWS, WHICH OUR CONFERENCE CERTAINLY BELIEVES NEEDS TO HAPPEN.

THE HOUSING PIECE, YOU KNOW, THE GOVERNOR TALKED ABOUT HOUSING AND HOW WE NEED TO BUILD MORE HOUSING IN ALL PARTS OF THE STATE, BUT THERE WAS A REAL PROBLEM THAT I SAW WITH HER PLAN.

ONE, HOW DO YOU-- HOW DO YOU BUILD HOUSING IN PLACES THAT ARE LOSING POPULATION?

THERE'S LARGE SWATHS OF THIS STATE, PLACES THAT I REPRESENT, RURAL COUNTIES, THAT ARE LOSING PEOPLE.

SO WHY ON EARTH WOULD ANY DEVELOPER OR HOME BUILDER BUILD MORE HOMES IN A PLACE THAT MAYBE DOESN'T HAVE THE NEED FOR IT?

AND I ALSO THINK THAT, YOU KNOW, SHE DIDN'T ADDRESS WHY.

WHY IS HOUSING MORE EXPENSIVE?

WHY IS IT-- BECAUSE IT'S 9 COSTLY.

THAT'S WHY YOU DON'T HAVE MORE HOMES BEING BUILT BECAUSE YOU GOT RID OF 421(A), BECAUSE YOU GOT RID OF THE INCENTIVES THAT WOULD DRIVE BUILDERS AND DEVELOPERS TO CONSTRUCT MORE UNITS, PARTICULARLY AFFORDABLE UNITS IN PLACES LIKE MANHATTAN AND BROOKLYN AND NEW YORK CITY, AND SO UNLESS THAT'S ADDRESSED, I JUST DON'T-- YOU CAN SET ALL THE GOALS YOU WANT.

I DON'T THINK YOU'RE GOING TO REACH THOSE GOALS ABSENT ADDRESSING SORT OF THE ROOT CAUSES, WHICH IS THAT BUILDING HOMES IN NEW YORK, CONSTRUCTING HOMES IN NEW YORK, PEOPLE WANTING TO LIVE IN NEW YORK IS MORE EXPENSIVE TODAY THAN IT WAS FOUR YEARS AGO, THAN IT WAS EIGHT YEARS AGO, AND AS A RESULT, PEOPLE HAVE LEFT THE STATE AND SOUGHT OPPORTUNITIES ELSEWHERE AND HOME BUILDERS ARE GOING TO FOLLOW THOSE PEOPLE.

>> THAT'S A REALLY INTERESTING POINT ABOUT THE HOUSING GOALS.

SO THE GOAL'S 800,000 NEW HOUSING UNITS OVER THE NEXT DECADE.

AS YOU POINTED OUT, PLACES LIKE THE CITY OF NEW YORK MAY HAVE A MUCH GREATER NEED THAN SOMEWHERE UPSTATE WHO LOST POPULATION AND MAY HAVE MORE HOUSING THAN RESIDENTS NEED.

THERE'S ALSO THIS PART OF IT THAT HER PLAN, AS WE UNDERSTAND IT RIGHT NOW AT LEAST, WOULD ALLOW SOME MUNICIPALITIES TO OVERRIDE LOCAL ZONING LAWS IF THEY'RE HAVING TROUBLE MEETING THEIR HOUSING GOALS.

I KNOW 10 THAT'S BEEN A PROBLEM IN THE PAST.

WHAT DO YOU THINK ABOUT THAT PART OF HER PROPOSAL?

>> I THINK SHE'S GOING TO FACE SERIOUS PUSHBACK.

THIS IS JUST-- AND THIS IS A BIG ISSUE FOR ME MORE IN A PHILOSOPHICAL WAY.

THIS IS THE LATEST MOVE BY ALBANY TO BASICALLY ERADICATE HOME RULE.

NEW YORK IS A HOME RULE STATE AND ALWAYS HAS BEEN AND ALBANY, IN RECENT YEARS, MOSTLY DRIVEN BY PEOPLE OUT OF NEW YORK CITY, HAS DECIDED THAT WE'RE NOT GOING TO RECOGNIZE LOCAL ZONING.

WE'RE NOT GOING TO RECOGNIZE BASICALLY LOCAL LAWS, PASSED BY LOCAL ELECTED BODIES BECAUSE WE DON'T THINK THAT'S THE RIGHT THING AND BY WE, THAT MEANS USUALLY, SOMEBODY FROM MANHATTAN OR SOMEBODY FROM BROOKLYN OR SOMEBODY FROM THE BRONX, AND I JUST THINK THAT IS -- IT IS OFFENSIVE TO ME AS AN UPSTATE LEADER, BUT I THINK IT SHOULD BE MOSTLY OFFENSIVE TO ANY LOCAL TOWN BOARD MEMBER, COUNTY EXECUTIVE, YOU KNOW, BOARD OF APPEALS MEMBERS, ZONING BOARD MEMBER, AND THAT IS SORT OF THE FRUSTRATING PIECE, AND AS THE GOVERNOR BEING FROM WESTERN NEW YORK, HAVING BEEN A TOWN BOARD MEMBER, A COUNTY CLERK, I'M SURPRISED THAT SHE WOULD GO DOWN THIS PATH BECAUSE SHE MORE THAN ANYBODY KNOWS THE IMPORTANCE OF LOCAL GOVERNING LEADERS MAKE THOSE DECISIONS.

>> YEAH, YOU KNOW, ON THE 11 BAIL ISSUE, TOO JUST TO GO BACK TO THAT, SHE HAS THIS INTERESTING PROPOSAL THAT I THINK HAS BEEN TALKED ABOUT A LITTLE BIT WHERE HIGHER LEVEL CRIMES-- WE'RE TALKING ABOUT THE ONES THAT ARE CURRENTLY BAIL ELIGIBLE, IT WOULD REMOVE A PIECE OF THE STATUTE WHERE A JUDGE HAS TO RELEASE SOMEBODY BY THE LEAST RESTRICTIVE MEANS IS THE GIST OF WHAT IT IS.

>> YEAH.

>> SHE WANTS TO HAVE THAT CHANGED.

WHAT DID YOU THINK OF THAT?

I KNOW YOU WOULD LIKE TO SEE THE BAIL LAW REPEALED AND HAVE KIND OF A START-OVER PROCESS WITH STAKEHOLDERS COMING IN.

>> SURE.

>> BUT DOES THAT GET US CLOSER TO WHERE YOU WOULD WANT US TO BE?

>> IT ADDRESSES A KEY POINT WHERE THE LANGUAGE ABOUT LEAST RESTRICTIVE MEANS, WHEN I'VE TALKED TO JUDGES AND D.A.s, THAT HAS BEEN THE PROBLEM, THAT EVEN WITH SOME OF THE TWEAKS OR EVEN SAYING THAT, YOU KNOW, OKAY, JUDGES WILL GET DISCRETION ON SOME OF THESE OFFENSES, AS LONG AS THAT LANGUAGE IS IN THERE, THE PERSON IS GOING TO BE RELEASED WITHOUT BAIL.

THAT IS SORT OF THE KEY PIECE OF THIS LAW THAT ENSURES THAT MOST DEFENDANTS WILL BE RELEASED WITH A DESK APPEARANCE TICKET, AND I THINK THAT'S AN IMPORTANT PART, A HUGELY IMPORTANT 12 PART.

I DON'T WANT TO UNDERSELL THAT, BUT OBVIOUSLY, WE WOULD LIKE TO SEE MORE.

I DO THINK THERE IS A DANGEROUS STAND ART IN THERE, MEANING ALLOWING JUDGES TO SAY THIS PERSON HAS BEEN, YOU KNOW, ARRESTED FOUR TIMES IN THE LAST MONTH OR BASED ON THE OFFENSE, THE CHARGE, DOMESTIC VIOLENCE OR WHAT HAVE YOU, I THINK I'M GOING TO HOLD THEM, BECAUSE I THINK THEY POSE A GREATER RISK TO THE PUBLIC OR TO EVEN THEMSELVES, BUT AGAIN, THE LEGISLATURE AND MY COLLEAGUES ACROSS THE AISLE, THERE WAS NO APPLAUSE WHEN SHE TALKED ABOUT BAIL.

THERE WAS NO RESPONSE AND I THINK THAT SHOWS SHE WILL HAVE TO BE REALLY SERIOUS ABOUT GETTING THIS DONE BECAUSE HE I DO NOT THINK MY COLLEAGUES ON THE OTHER SIDE OF THE AISLE HAVE ANY APPETITE TO TRY TO FIX THIS, EVEN THOUGH A MAJORITY OF NEW YORKERS WOULD SAY THEY WOULD LIKE TO SEE SOMETHING DONE ABOUT CASHLESS BAIL.

>> YEAH.

I THINK IT WILL BE A FIGHT IN THE STATE BUDGET IN MARCH OR MAYBE AFTER MARCH.

I GUESS WE'LL HAVE TO SEE WHEN IT COMES TO THE FOREFRONT OF EVERYTHING.

ANOTHER INTERESTING PROPOSAL THAT I WANT TO TOUCH ON BEFORE WE RUN OUT OF TIME IS 24 PLAN FROM HOCHUL THAT WOULD INDEX THE MINIMUM WAGE TO INFLATION.

SO AS MUCH AS INFLATION GOES UP, THE MINIMUM WAGE WOULD GO UP IN NEW YORK.

WE'RE AT $15 AN HOUR FOR THE SUBURBS AND NEW YORK CITY.

A LITTLE OVER 13 $13 UPSTATE RIGHT NOW.

SO WE DON'T KNOW WHERE IT WOULD ACTUALLY GO.

BUT WHAT DO YOU THINK ABOUT THE IDEA OF TYING IT TO INFLATION?

>> MY CONCERN, WHEN YOU TALK ABOUT RAISING THE MINIMUM WAGE, YET AGAIN, AND-- I SAY ONLY, I HAVE BEEN HERE FOR EIGHT YEARS.

WE ALREADY PASSED A MINIMUM WAGE INCREASE IN MY TIME IN THE SENATE AND NOW WE'RE TALKING ABOUT POTENTIALLY INCREASING IT FURTHER.

MY CONCERN IS-IF IT GOES UP, ESPECIALLY TIED TO INFLATION.

INFLATION HAS BEEN SOME RECORD NUMBERS.

>> YEAH.

>> YOU COULD HAVE MINIMUM WAGE JUMP CONSIDERABLY IF IT'S TIED TO THIS AND WE KNOW WHAT THAT DOES.

IT CAUSES COMPRESSION.

IT CAUSES OTHER THINGS TO GO UP, LIKE BASIC GOODS AND SERVICES AND FOR SOMEONE WHO MIGHT BE OUT OF WORK, THAT AFFECTS THEM AS WELL.

YOU KNOW, IT ALSO-- IT'S GOING TO CAUSE EMPLOYERS ANOTHER REASON POTENTIALLY NOT TO HIRE MORE PEOPLE BECAUSE THEY'RE GOING TO SAY I CAN'T AFFORD TO HIRE ALL THESE FOLKS.

WE'RE GOING TO HAVE TO MAKE DO WITH WHAT WE HAVE.

SO I DON'T KNOW IF THIS IS THE ANSWER TO THE-- TO THE ISSUE OF MAKING NEW YORK MORE AFFORDABLE.

I ACTUALLY WILL ARGUE THIS IS GOING TO HELP CONTINUE MAKING NEW YORK ONE OF THE MOST EXPENSIVE STATES TO LIVE IN THE COUNTRY.

14 >> I THINK IT'S GOING TO BE A BIG ISSUE IN THE BUDGET IN MARCH IF IT GAINS TRACTION.

I KNOW THAT SOME DEMOCRATS IN THE LEGISLATURE WANT TO SEE IT MOVE FORWARD.

OTHERS MAY BE LESS INCLINED, ESPECIALLY THOSE UPSTATE.

SO WE'LL SEE WHERE IT GOES.

SENATE REPUBLICAN LEADER ROB ORTT, THANK YOU SO MUCH.

>> DAN, GOOD TO SEE YOU.

[ THEME MUSIC ] >> SO IT'S BEEN A BUSY WEEK IN ALBANY.

LET'S GET INTO IT WITH JOE SPECTRA FROM POLITICO AND KESHIA CLUKEY FROM BLOOMBERG GOVERNMENT.

THANK YOU BOTH FOR BEING HERE.

>> THANK YOU FOR HAVING US.

>> THIS WAS THE GOVERNOR'S SECOND STATE OF THE STATE ADDRESS.

JOE, I WILL GO TO YOU FIRST.

WHAT STOOD OUT TO YOU?

>> WHAT STOOD OUT WAS WHAT THE GOVERNOR RAISED LAST YEAR SAID WERE THE MOST IMPORTANT THINGS TO VOTERS, AFFORDABILITY AND CRIME.

>> UH-HUH >> LET'S FACE IT, IT WAS THE CLOSEST GOVERNOR'S RACE SINCE 1994 AND DUE TO THE FACT THAT LEE ZELDIN WAS EFFECTIVE IN HITTING ON THOSE TWO ISSUES.

WHAT DID THE GOVERNOR TALK ABOUT?

AFFORDABILITY AND CRIME.

PARTICULARLY ON THE 15 AFFORDABILITY PIECE, IT WAS INTERESTING IT'S NO SECRET THAT NEW YORK LEADS THE NATION IN OUTMIGRATION AND POPULATION.

YOU'VE HEARD GOVERNORS TALK FOR A LONG TIME, FOR DECADES, IN FACT, ABOUT THE NEED TO TRY TO STEM THAT TIDE.

TRY TO BRING PEOPLE BACK TO NEW YORK, TRY TO LOWER TAXES, PROPERTY TAX CAP.

THEY GIVE BACK MONEY EACH YEAR THROUGH VARIOUS TAX PROGRAMS.

BUT HOCHUL'S TRYING TO LOOK AT A SYSTEMATIC WAY TO MAKE IT MORE AFFORDABLE AND THAT WAS, IN PART, THROUGH HER HOUSING PLAN WHICH SHE'S TRYING TO CREATE MORE HOUSING, PARTICULARLY IN NEW YORK CITY SUBURBS AND UPSTATE IF YOU HAVE MORE HOUSING, THEORETICALLY, IT MIGHT BE CHEAPER FOR PEOPLE TO LIVE AND PEOPLE FOR NEW YORK CITY, WHERE IT'S INCREASINGLY HARD TO FIND HOUSING AND MAKES IT MORE EXPENSIVE, THERE MIGHT BE THE ABILITY TO LOWER SOME OF THAT.

>> I THINK THE ZONING PART-- SO WE'VE TALKED ABOUT IT EARLIER IN THE SHOW, BUT THERE'S A PART OF HER PLAN THAT WOULD-- I DON'T WANT TO SAY FORCE BECAUSE WE DON'T REALLY KNOW THE EXACT DETAILS OF IT.

IT WOULD ALLOW LOCAL GOVERNMENTS OR THE STATE TO OVERRIDE LOCAL ZONING CHANGES, TO MAKE SOME OF THESE CHANGES FOR HOUSING IN THE LONG TERM.

JOE, DO YOU SEE THAT BEING A BIG FIGHT?

16 >> OH, I SEE THAT BEING A BIG FIGHT.

YOU KNOW, WHEN YOU ARE COMING IN AS A STATE AND TRYING TO TELL LOCAL MUNICIPALITIES YOU NEED TO BUILD X NUMBER OF HOUSES, I THINK IT'S LIKE 3% A YEAR AND SORT OF ENTERING THE SUBURBS AND 1% A YEAR.

IT'S THE REASON WHY A LOT OF TIMES NEW YORK TRIES TO DISSOLVE VILLAGES AND GET SHUT DOWN.

PEOPLE LIKE THEIR LOCAL GOVERNMENT.

THEY LIKE THEIR LOCAL CONTROL.

SO HOW IS THE GOVERNOR GOING TO CONVINCE PEOPLE ON LONG ISLAND OR WESTCHESTER, ROCKLAND, OR WHEREVER THAT YOU NEED TO BUILD X NUMBER OF HOUSES TO BRING IN NEW PEOPLE?

WHAT DOES THAT DO TO THE SCHOOLS?

WHAT DOES IT DO TO THE INFRASTRUCTURE IN THESE COMMUNITIES?

THERE'S A LOT OF QUESTIONS THERE.

IT'S ONE THAT WAS TALKED ABOUT DURING THE STATE OF THE STATE.

WE WROTE ABOUT IT.

IT'S GOING TO BE A REAL BIG ISSUE GOING FORWARD.

>> I THINK SO, TOO KESHIA, WHAT STOOD OUT TO YOU?

I KNOW YOU COVERED THE MINIMUM WAGE AND SOME OTHER PARTS.

>> I THINK TOUCHING ON JOE'S ISSUE OF AFFORDABILITY THAT THE GOVERNOR BROUGHT UP, SHE IS PLANNING ON TYING THE MINIMUM WAGE TO INFLATION, WHICH I THINK GOES HALFWAY TO WHAT UNIONS AND WORKER ADVOCATES WANT, ESPECIALLY LIKE SENATOR RAMOS AND ASSEMBLYWOMAN JOYNER BOTH HAVE A BILL THAT WOULD FIRST 17 RAISE THE MINIMUM WAGE AND THEN ATTACH IT TO INFLATION SO THAT IT BASICALLY TAKES IT OUT OF THE LEGISLATURE.

SOW DON'T HAVE TO HAVE THIS FIGHT EVERY FEW YEARS.

>> RIGHT.

>> AND IT WOULD JUST TIE IT TO THE INCREASES THAT WE'RE ALL SEEING.

SO I THINK SHE GOT A STANDING OVATION ON THAT PART, BUT THERE'S STILL A LOT OF WORK TO DO.

SO I THINK WE'LL KIND OF SEE WHAT HAPPENS ESPECIALLY IN THE BUDGET AND THEN AS THE PROCESS UNFOLDS.

WE ALSO SAW A LOT OF STUFF ON CLIMATE.

SHE TALKED ABOUT ELECTRIFYING BUILDINGS.

>> RIGHT.

>> BANNING NEW GAS INSTALLATIONS BY 2025 FOR SMALL BUILDINGS.

I BELIEVE IT WAS 2028 FOR LARGER BUILDINGS.

THIS IS THE FIGHT AGAINST THE GAS STOVE, WHICH I THINK THERE ARE A LOT OF OPINIONS ON ONE WAY OR THE OTHER.

>> RIGHT.

>> SO WE'LL KIND OF SEE HOW THAT MAYS OUT AS WELL.

I'D ALSO LIKE TO NOTE SOMETHING THAT SHE DIDN'T DISCUSS AT ALL, WHICH IS EDUCATION, WHICH-- >> YES.

IT WAS IN THE BOOK.

>> YES.

>> 277-PAGE BOOK WITH ALL THE GOVERNOR'S PROPOSALS EVERY YEAR, YOU KNOW, IT VARIES PAGE LENGTH, AND 18 THERE WERE SOME SECTIONS ON EDUCATION, BUT AS I WAS PUTTING TOGETHER OUR STORY THIS WEEK, I DID NOTICE IN THE SPEECH SHE DIDN'T TALK ABOUT IT.

>> YEAH.

>> I WONDER WHY.

>> I DON'T KNOW.

ESPECIALLY IF YOU'RE TOUCHING ON AFFORDABILITY, YOU KNOW, SHE TALKS ABOUT HERSELF AS THE FIRST MOTHER GOVERNOR AND SO IT'S KIND OF INTERESTING THAT SHE DIDN'T TOUCH ON THAT.

THE STATE IN THE BOOK DID SAY IT WOULD FULLY FUND SCHOOLS UNDER THIS FOUNDATION AID FORMULA THAT HAS BEEN, YOU KNOW, THE BANE OF EVERYONE'S EXISTENCE, TRYING TO GET THIS THING FULLY FUNDED FOR DECADES NOW.

AND SO I DON'T KNOW.

WE'LL KIND OF SEE FROM THAT, AND I'D LIKE TO NOTE, TOO, THAT, OF COURSE, THIS WASN'T THE BUDGET.

SO THIS IS JUST HER POLICY PROPOSAL SO THERE'S A LOT OF TOP LINE ISSUES THAT SHE TOUCHES ON THAT WE NEED TO WAIT AND SEE WHAT THE ACTUAL BILL LANGUAGE SAYS.

>> YOU KNOW, A LOT OF THESE ISSUES, A LOT OF THE PROPOSALS THAT SHE'S PUTTING FORWARD AND HAVE BEEN TALKED ABOUT THE EARLIER PART OF THE SESSION HAVE SET UP THIS DIVIDE AT THE CAPITOL WHERE WE HAVE DEMOCRATS CONTROLLING BOTH CHAMBERS OF THE LEGISLATURE AND THE GOVERNOR'S OFFICE, BUT WE HAVE THIS FACTION OF 19 DEMOCRATS IN THE STATE SENATE AND THE ASSEMBLY THAT ARE CONSIDERED FAR LEFT, MORE PROGRESSIVE TYPES PITTED AGAINST THE MORE MODERATES.

JOE, I WANT TO ASK YOU JUST POLITICALLY, DOES THAT MAKE IT MORE DIFFICULT FOR THE GOVERNOR THIS YEAR?

YOU KNOW, DEMOCRATS CONTROL EVERYTHING, BUT IT SEEMS LIKE IT DOESN'T HELP US GET TO SOLUTIONS FASTER SOMETIMES, LIKE WHEN THEY'RE TRYING TO STRIKE A DEAL.

>> THAT'S RIGHT.

YOU KNOW, YOU HAVE EVERYTHING CONTROLLED BY DEMOCRATS BUT THAT DOESN'T MEAN THEY'RE IN LOCKSTEP WITH EACH OTHER EITHER.

THEY COME FROM DIFFERENT PARTS OF THE STATE.

AN UPSTATE DEMOCRAT CAN BE QUITE DIFFERENT THAN ONE FROM NEW YORK CITY, AND SO YOU SEE SOME OF THAT.

NOW, LAST YEAR'S ELECTION, SOME MODERATES DID LOSE.

SO I THINK IT'S PUSHED THE LEGISLATURE, THE DEMOCRATS MORE TO THE PROGRESSIVE.

>> EXACTLY.

>> THAT'S CREATED A LITTLE BIT OF A DIVIDE.

BUT YEAH, WHEN YOU TALK ABOUT ISSUES LIKE BAIL, FOR EXAMPLE, RIGHT, AND WE'LL TALK A LITTLE BIT MORE ABOUT THAT, BUT YOU WANT THE LEAST RESTRICTIVE STANDARD REMOVED WHERE JUDGES WOULD HAVE MORE DISCRETION TO SET BAIL WHICH HAS BEEN AT THE CRUX OF THIS ISSUE SINCE THE LAW WAS FIRST PASSED IN 2019.

SO MAYBE SOME MODERATE 20 DEMOCRATS WOULD SUPPORT BAIL CHANGES, BUT I DON'T THINK YOU WANT-- I DON'T THINK YOU'RE GOING TO SEE PROGRESSIVES, CARL HEASTIE HAS TALKED ABOUT IT.

YOU'RE NOT GOING TO SEE THEM MOVING TO DO MUCH ON BAIL.

BUT WE'LL SEE WHAT THE BUDGET COMES UP WITH.

>> I AGREE.

THE DEMOCRATS WHO LEAD THE ASSEMBLY AND THE SENATE HAVE BEEN VERY RESISTANT TO BAIL CHANGES TO THE POINT LAST YEAR IT ONLY HAPPENED BECAUSE THE GOVERNOR BROUGHT IT UP LAST MINUTE IN THE BUDGET NEGOTIATIONS.

I'M WONDERING IF SOMETHING SIMILAR HAPPENS AGAIN THIS YEAR.

WE HAVE A FEW MINUTES LEFT.

WE HAVE TO TOUCH ON THE CHIEF JUDGE NOMINATION.

HECTOR LaSALLE, AS WE HAVE MENTIONED, IS THE NOMINEE, AND IT'S KIND OF LIKE THE SAME SITUATION WHERE WE HAVE PROGRESSIVES TRYING TO BLOCK THE NOMINATION AND MODERATES KIND OF LIKE-- IT SEEMS LIKE THEY'RE ON THE FENCE.

IT DOESN'T SEEM LIKE THERE'S A LOT OF MODERATES COMING OUT WITH STRONG SUPPORT FOR LaSALLE.

KESHIA, WHERE IS THIS VOTE?

>> IT'S KIND OF INTERESTING BECAUSE IT'S KIND OF GAINING TRACTION.

THERE'S SEVERAL SIDES TO IT.

THERE'S LATINOS FOR LaSALLE WHO WANT TO SEE THE FIRST LATINO CHIEF JUDGE ON THE COURT OF APPEALS, AND THEN YOU'VE GOT ALL THESE UNIONS COMING OUT.

SO YOU ARE SEEING A LITTLE BIT OF A TURN HERE.

IT'S 21 NOT JUST REALLY PROGRESSIVES COMING OUT.

IT'S INTERESTING THAT KATHY HOCHUL IS NOT STANDING DOWN.

SHE'S SAYING THIS IS MY CANDIDATE.

I THINK HE'S VERY IMPORTANT TO GET THROUGH AND PROGRESSIVES ARE SAYING, LISTEN, WE JUST LOST SEATS TO REDISTRICTING WHICH ENDED UP GIVING THE REPUBLICANS MAJORITY IN CONGRESS THERE BECAUSE OF THE SEATS LOST IN NEW YORK AND THAT WAS PART OF REDISTRICTING FROM A CONSERVATIVE COURT.

SO THEY'RE SAYING WE CAN'T HAVE A CONSERVATIVE COURT.

LOOK WHAT'S HAPPENING AT THE FEDERAL LEVEL.

WORK WITH US TO GET A CANDIDATE THAT WORKS.

SO WE'LL SEE WHAT HAPPENS WITH-- IT SOUNDS LIKE THE SENATE DOESN'T HAVE ENOUGH VOTES TO MAKE IT OUT OF JUDICIARY COMMITTEE AND THEREFORE, IT WOULDN'T GO TO THE FLOOR.

THEN THERE'S THIS WHOLE CONSTITUTIONAL QUESTION-- [LAUGHTER] YEAH.

THIS HAS NEVER HAPPENED.

THIS PROCESS WAS SET UP IN THE '70s.

IT'S ONLY HAD-- THERE'S ONLY BEEN TWO TIMES WHERE THE SENATE JUDICIARY COMMITTEE DIDN'T AGREE WITH THE JUDGE'S CANDIDATE.

IN BOTH SITUATIONS, THEY SENT IT WITHOUT RECOMMENDATION TO THE FLOOR FOR A VOTE AND THEY WERE-- THE GOVERNOR HAD WRANGLED ENOUGH VOTES TO GET IT ON THE SENATE FLOOR AND PASSED.

IN THIS CASE, THE COMMITTEE IS SAYING WE DON'T HAVE ENOUGH VOTES TO EVEN DO THAT.

WE'RE NOT-- IT'S 22 PROBABLY GOING TO DIE IN COMMITTEE.

>> WOW.

WE GOT 30 SECONDS LEFT.

JOE, JUST COMPARED TO THIS PROCESS IN THE PAST, THIS SEEMS MESSIER THAN USUAL, AS KESHIA WAS SAYING.

>> YEAH, YOU USUALLY SEE THIS ON THE FEDERAL LEVEL.

RIGHT?

FOR THE U.S. SUPREME COURT.

>> YEAH.

>> NOW WE'RE SEEING IT HERE IN OUR BACKYARD IN NEW YORK.

JUST SET THE STAGE, WEDNESDAY WILL BE THE CONFIRMATION HEARING FOR LaSALLE.

WHAT HAPPENS OUT OF THAT?

AS KESHIA WELL PUT IT, DOES IT GET OUT OF COMMITTEE?

DOES IT GET TO THE FLOOR?

USUALLY THAT HAPPENS ON THE SAME DAY.

IT'S KIND OF A CELEBRATORY SITUATION WHERE YOU GET THE JUDICIARY, CHIEF JUDGE SITS UP IN THE SENATE-- >> GALLERY.

>> YEAH, THE GALLERY WITH HER FAMILY AND IT'S, YOU KNOW, IT'S A CELEBRATORY DAY.

I'M NOT SO SURE IT'S GOING TO BE CELEBRATORY ON WEDNESDAY.

>> RIGHT.

IT'S A REALLY COMPLICATED SITUATION AND IT'S JUST, AS KESHIA SAID, KIND OF UNPRECEDENTED AS WE'RE SEEING PLAY OUT IN HISTORY RIGHT NOW.

KIND OF A COOL TIME TO BE COVERING NEW YORK STATE GOVERNMENT.

BUT WE ARE OUT OF TIME.

KESHIA CLUKEY FROM BLOOMBERG GOVERNMENT, JOE SPECTOR FROM 23 POLITICO, THANK YOU BOTH SO MUCH FOR BEING HERE.

WE ARE OUT OF TIME FOR THIS WEEK.

THANK YOU SO MUCH FOR WATCHING THIS WEEK'S "NEW YORK NOW."

HAVE A GREAT WEEK AND BE WELL.

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