1 [ THEME MUSIC ] >> ON THIS WEEK'S EDITION OF "NEW YORK NOW," GOVERNOR KATHY HOCHUL'S FIRST STATE BUDGET IS OUT.

WE'LL HAVE DETAILS.

THUS STARTS THE CLOCK ON NEGOTIATIONS WITH LAWMAKERS.

DARRELL CAMP HAS REACTION.

WE'LL GET CONTEXT ON HOCHUL'S BUDGET FROM PATRICK (INAUDIBLE) FROM THE CITIZEN BUDGET COMMISSION AND POLITICO'S BILL MAHONEY AND MARIE FRENCH HAVE ANALYSIS AND MORE NEWS FROM THE WEEK.

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.

GOVERNOR KATHY HOCHUL RELEASED HER FIRST STATE BUDGET PROPOSAL THIS WEEK WITH A PRICE TAG OF $216 BILLION.

FOR CONTEXT, THAT'S MORE THAN FLORIDA AND PENNSYLVANIA COMBINED.

SURE, THE STATE BUDGET IS A BALANCE OF SPENDING AND REVENUE, AND THAT'S REALLY IMPORTANT FOR PRETTY MUCH ANY PUBLIC SERVICE YOU CAN THINK OF, BUT THE STATE BUDGET IS ALSO A VEHICLE FOR NEW POLICY ITEMS.

EVERY YEAR, LAWMAKERS AND THE GOVERNOR USE THE STATE BUDGET AS LEVERAGE FOR CONTROVERSIAL ISSUES AND IT'S VERY MUCH A GIVE AND TAKE.

2 SOMEONE WILL BUDGE ON ONE THING IF THEY CAN GET WHAT THEY WANT SOMEWHERE ELSE AND VERY OFTEN THAT INVOLVES POLICY.

LAST YEAR, IT WAS MARIJUANA.

THREE YEARS AGO, IT WAS BAIL REFORM.

SO IT'S A LOT MORE THAN JUST SPENDING, BUT IT'S ALSO A STATEMENT OF SOMEONE'S PRIORITIES.

FOR GOVERNOR KATHY HOCHUL, THOSE APPEAR TO BE EDUCATION, INFRASTRUCTURE, AND HEALTHCARE.

TAKE A LOOK.

[ THEME MUSIC ] IT'S NOT A BAD PROBLEM TO HAVE.

FOR THE FIRST TIME IN SEVERAL YEARS, NEW YORK IS FLUSH WITH CASH.

THAT'S THANKS TO BILLIONS OF DOLLARS IN PANDEMIC RELIEF MONEY FROM THE FEDERAL GOVERNMENT AND HIGHER TAX RATES ON THE WEALTHY.

GOVERNOR KATHY HOCHUL.

>> OUR STATE IS IN STRONG FINANCIAL POSITION DUE TO A COMBINATION OF FACTORS, INCREASED TAX RECEIPTS, A THRIVING STOCK MARKET, AND AN INFLUX OF FEDERAL AID THROUGH THE AMERICAN RESCUE PLAN AND THE INFRASTRUCTURE ACT.

>> THE RESULT WAS HOCHUL'S FIRST EXECUTIVE BUDGET PROPOSAL THIS WEEK WITH A PRICE TAG OF $216 BILLION.

THAT'S AN INCREASE OF $3.4 BILLION OVER LAST YEAR AND BECAUSE OF NEW YORK'S STRONG 3 RISE IN REVENUE, THE STATE CAN AFFORD IT.

THAT'S ACCORDING TO STATE BUDGET DIRECTOR ROBERT MUJICA.

>> SO THE SURPLUS POSITION, IN COMBINATION WITH THE RESERVE DEPOSITS ALREADY PLANNED, MAKES IT POSSIBLE IN THIS YEAR'S BUDGET TO REALLY FUND NEW COMMITMENTS, MAKE INVESTMENTS.

>> THE SPENDING INCREASE WILL GO TOWARD THE HEALTHCARE INDUSTRY, A SMALL BUMP FOR STATE AGENCIES AND NEW MONEY FOR SCHOOLS.

HOCHUL'S BUDGET WOULD ADD $2.1 BILLION IN NEW SCHOOL SPENDING, AN INCREASE OF ABOUT 7%.

>> WE'LL PROVIDE MORE THAN $31 BILLION IN AID FOR OUR SCHOOLS, CONTINUING OUR COMMITMENT TO FULLY FUND EDUCATION AND FOUNDATION AID, AND THAT BRINGS US TO THE HIGHEST LEVEL THE STATE HAS INVESTED IN EDUCATION EVER.

>> HOCHUL'S BUDGET WOULD ALSO INVEST $10 BILLION IN THE STATE'S HEALTHCARE INDUSTRY OVER SEVERAL YEARS.

STARTING WITH PAID BONUSES FOR WORKERS.

FUNDING WOULD ALSO BE DIRECTED TO HOSPITALS USED TO RAISE MEDICAID REIMBURSEMENT RATES AND SPEND TO SUPPORT MANAGED CARE.

4 >> ONE OF OUR SHARED DESIRES AS NEW YORKERS IS THAT EVERYONE DESERVES THE DIGNITY OF ACCESS TO QUALITY HEALTHCARE ESPECIALLY DURING A PUBLIC HEALTH CRISIS.

>> AT THE SAME TIME, HOCHUL'S BUDGET WOULDN'T RAISE TACTS OR FEES.

INSTEAD, IT WOULD SPEED UP TAX CUTS FOR MIDDLE-INCOME EARNERS.

THEY WOULD TAKE EFFECT NEXT YEAR INSTEAD OF 2025 UNDER HOCHUL'S PLAN.

AND HER BUDGET WOULD ALSO SET ASIDE ABOUT $2 BILLION FOR A ONE-TIME PROPERTY TAX REBATE PROGRAM.

MUJICA AGAIN.

>> THE REBATE CHECKS ARE-- THAT'S JUST A WAY TO GIVE BACK SOME OF THE DIVIDEND, RIGHT TO SOME OF THE TAXPAYERS AND THE TAXPAYERS THAT ARE PAYING SOME OF THE HIGHEST TAXES IN NEW YORK ON INDIVIDUALS ARE ACTUALLY THE PROPERTY TAX, RIGHT, NOT THE PERSONAL INCOME TAX.

>> HOCHUL'S BUDGET WOULD ALSO MAKE A MAJOR INVESTMENT IN ACCESS TO HIGH SPEED INTERNET.

THE SPENDING PLAN WOULD EARMARK $1.BILLION TO EXPAND BROADBAND ACCESS.

THAT'S SEPARATE FROM HOCHUL'S INFRASTRUCTURE PLAN, WHICH WOULD DIRECT $32 BILLION OVER 5 YEARS FOR EVERYTHING FROM MAJOR 5 TRANSIT HUBS TO BUMPS IN THE ROAD.

>> I'VE ALSO DECLARED WAR ON POTHOLES.

SO HERE'S THE FIRST SHOT ACROSS THE BOW.

A $1 BILLION PLAN CALLED OPERATION POP, PAVE OUR POTHOLES AND THIS STRATEGY TAKES US FROM POTHOLES TO NOT HOLES.

>>> BUT CRITICS OF HOCHUL'S BUDGET WOULD QUICK TO SAY WHAT SHE LEFT OUT.

AFTER THE STATE'S EVICTION MORATORIUM EXPIRED LAST WEEK, HOUSING ADVOCATES WERE HOPING FOR MORE RENT RELIEF MONEY IN HOCHUL'S BUDGET.

INSTEAD, THE SPENDING PLAN WOULD PUT ABOUT $2 BILLION TOWARD UNDETERMINED, QUOTE, PANDEMIC RECOVERY INITIATIVES.

>> AND I'LL WORK WITH THE LEGISLATURE TO IDENTIFY THE MOST IMPACTFUL USE OF THESE FUNDS IN THIS SHORT TERM.

WHETHER THAT'S HELP FOR STRUGGLING SMALL LANDLORDS AND THEIR TENANTS OR THE HARDEST HURT INDUSTRIES AND WORKERS OR FOR OTHER PURPOSES.

>> HOCHUL'S ALSO NOT SEEKING CHANGES TO THE STATE'S NEW BAIL LAWS IN HER BUDGET.

REPUBLICANS HAVE BLAMED THOSE LAWS FOR THE STATE'S RISE IN CRIME, BUT THERE'S BEEN NO CRITICAL ANALYSIS ON THAT CLAIM AND WHILE HOCHUL'S BUDGET ADDS MONEY 6 TO LAW ENFORCEMENT, MUJICA SAID THAT FUNDING IS GEARED MORE TOWARD VIOLENCE PREVENTION PROGRAMS.

>> WE WANT TO PUT THESE RESOURCES IN THERE.

IT'S MOSTLY FOR, YOU KNOW, FOR NON-POLICE RESOURCES, RIGHT?

THIS IS FOR TRYING TO AVOID THE VIOLENCE BEFORE IT ACTUALLY HAPPENS.

>> THERE WERE ALSO A FEW OBSCURE BUT IMPORTANT ADDITIONS IN HOCHUL'S BUDGET.

FOR PROVIDERS IN THE HUMAN SERVICES SECTOR, LIKE MENTAL HEALTH AND SUBSTANCE USE, HOCHUL'S BUDGET WOULD PROVIDE A LONG-SOUGHT 5.4% COST OF LIVING ADJUSTMENT TO RAISE THEIR WAGES AND RETAIN STAFF AND FOR THE CHILD CARE INDUSTRY, HOCHUL WANTS TO INVEST $1.4 BILLION.

>> THIS WILL MAKE $400 MORE FAMILIES ELIGIBLE FOR CHILD CARE SUBSIDIES AND WILL INVEST MORE IN CHILD CARE WORKERS AS WELL.

[ THEME MUSIC ] >> AND NOW HOCHUL WILL START NEGOTIATIONS WITH THE STATE LEGISLATURE ON A FINAL STATE SPENDING PLAN.

THAT MEANS WE'LL SEE BUDGET HEARINGS OVER THE NEXT FEW WEEKS AND EVENTUALLY A NEW STATE BUDGET.

HOPEFULLY BY THE END OF MARCH.

7 THAT'S WHEN'S IT DUE TO AVOID A GOVERNMENT SHUTDOWN.

SO A LOT HINGES ON THESE NEXT FEW MONTHS.

LET'S GET REACTION TO HOCHUL'S BUDGET FROM STATE LAWMAKERS WITH REPORTER DARRELL CAMP WHO IS WITH ME NOW IN STUDIO.

>> DARRELL?

>> OVERALL, LAWMAKERS WERE WEREN'T OVERWHELMINGLY POSITIVE OR NEGATIVE ABOUT THE GOVERNOR'S BUDGET PROPOSAL BUT THEY DID MAKE THEIR VOICES HEARD IN THE FOLLOW DAYS CONCERNING THEIR PRIORITIES FOR THE BUDGET AND FOR THE REST OF THE LEGISLATIVE SESSION.

DEPUTY SENATE MAJORITY LEADER MICHAEL GIANARIS SAYS THERE WERE SOME THINGS THAT HE THOUGHT DESERVED MORE ATTENTION IN THE BUDGET.

>> I THINK WE TALKED ABOUT IT SOME.

I DO THINK WE NEED-- WE'RE GOING INTO, UM, A CYCLE WHERE WE WILL HAVE PUBLIC FINANCING OF CAMPAIGNS IN NEW YORK.

I'D LIKE TO SEE SOME MORE MONEY DEDICATED TOWARDS THAT THAN I HAVE SEEN SO FAR.

THE EXCLUDED WORKERS, THAT I MENTIONED, WERE LEFT OUT, RENT RELIEF MORE SPECIFICALLY OUTLINED WOULD BE IMPORTANT TO ME.

SO WE'LL SEE.

>> THE EXCLUDED WORKERS FUND WAS A $2.1 BILLION ALLOTMENT 8 IN LAST YEAR'S STATE BUDGET THAT PROVIDED UNEMPLOYMENT BENEFITS FOR PEOPLE WHO WOULDN'T NORMALLY QUALIFY FOR THEM INCLUDING UNDOCUMENTED WORKERS.

HOCHUL DID INCLUDE NEW FUNDING FOR THE HEALTHCARE INDUSTRY IN HER BUDGET AND MONEY TO EXPAND COVERAGE UNDER STATE-SPONSORED INSURANCE PLANS BUT SOME PROGRESSIVE LAWMAKERS WERE HOPING FOR SOMETHING BIGGER LIKE THE NEW YORK HEALTH ACT.

THAT WOULD CREATE A SINGLE PAYER HEALTHCARE SYSTEM IN NEW YORK SORT OF LIKE A MEDICARE FOR ALL MODEL.

IT'S SPONSORED BY ASSEMBLY HEALTH CHAIR RICHARD GODFREY.

>> YOU HAVE INADEQUATE HEALTH COVERAGE IF YOU HAVE IT AND I HAVE INADEQUATE HEALTH COVERAGE BECAUSE ALL OF US, OUR HEALTH COVERAGE IS-- IS BESET WITH DEDUCTIBLES AND COPAYS AND RESTRICTED PROVIDER NETWORKS AND SKYROCKETING PREMIUMS GOING UP HIGHER THAN WAGES OR INFLATION.

>> DEMOCRATS ARE ALSO PUSHING FOR UNIVERSAL CHILD CARE, THE GOOD CAUSE EVICTION BILL AND FURTHER CRIMINAL JUSTICE REFORMS, SUCH AS THE FAIR AND TIMELY PAROLE BILL.

REPUBLICANS, ON THE OTHER HAND, ARE LOOKING TO ROLL BACK ONE OF THE RECENT REFORMS, IN PARTICULAR, BAIL REFORM.

9 SENATE REPUBLICAN LEADER ROB ORTT SAYS HE IS SKEPTICAL ABOUT THE WAY PUBLIC SAFETY WAS ADDRESSED IN THE BUDGET.

>> NOTHING ABOUT BAIL, CHANGING BAIL BACK, GETTING RID OF CASHLESS BAIL.

THEN THERE WAS $224 MILLION TO ADDRESS GUN VIOLENCE.

I'D REALLY LIKE TO SEE WHAT THAT ENTAILS.

I MEAN, THAT'S A LOT OF MONEY.

HOW ARE YOU ADDRESSING THAT GUN VIOLENCE?

IS THAT SOME MASSIVE GUN BUYBACK PROGRAM?

WHAT IS THE PLAN THERE?

>> BUDGET DIRECTOR ROBERT MUJICA TOLD REPORTERS THIS WEEK THAT MOST OF THAT MONEY WILL BE USED FOR NON-LAW ENFORCEMENT FUNCTIONS, SUCH AS VOIR LENS INTERRUPTION GROUPS LIKE SNUG.

ONE AREA OF THE BUDGET THAT DOES SEEM TO HAVE BIPARTISAN SUPPORT IS VETERAN SERVICES.

HOCHUL INCLUDED A BUMP IN FUNDING FOR THE JOSEPH P. DWYER PROGRAM, A PIER TO PIER MENTAL HEALTH SUPPORT PROGRAM FOR VETERANS.

ASSEMBLY REPUBLICAN VICE CHAIR JAKE ASHBY SAID THIS WAS A WELCOME CHANGE THIS YEAR.

>> I HAVE TO TELL YOU I'M PRETTY PLEASED WITH WHAT I SEE IN TERMS OF VETERANS.

YOU KNOW, I THINK WHAT THE GOVERNOR IS I TRYING TO DO IN TERMS OF FUNDING FOR THE DWYER PROGRAM AND EXPANSION, I THINK IS GREAT.

10 >> OVERALL, IT APPEARS THAT LAWMAKERS ARE SEEING OPPORTUNITY TO MAKE INROADS ON A NUMBER OF FRONTS DURING GOVERNOR HOCHUL'S FIRST BUDGET NEGOTIATION.

>> GREAT.

THANK YOU SO MUCH, DARRELL.

SO AS YOU CAN TELL WHEN IT COMES TO THE NUMBERS, NEW YORK STATE BUDGET IS MASSIVE.

IT'S NOW MORE THAN $210 BILLION AND JUST FOR CONTEXT, WE TOLD YOU EARLIER IT WAS FLORIDA AND PENNSYLVANIA COMBINED.

IT'S ALSO TWICE THE SIZE OF FLORIDA AND JUST TEN YEAR AGO, THE STATE BUDGET WAS MUCH SMALLER AT ABOUT $132 BILLION.

THAT'S AN INCREASE OF MORE THAN 50% IN THE LAST DECADE AND AS YOU CAN IMAGINE, THERE A LOT PACKED IN THERE.

FOR MORE ON THAT, I TURN THIS WEEK TO BUDGET EXPERT, PATRICK ORECKI FROM THE CITIZENS BUDGET COMMISSION.

[ THEME MUSIC ] PATRICK, THANK YOU SO MUCH FOR BEING HERE.

I APPRECIATE IT.

>> THANKS FOR HAVING ME, DAN.

>> OF COURSE.

SO WE HAVE THE STATE BUDGET.

GOVERNOR KATHY HOCHUL'S PROPOSED BUDGET.

IT'S OUT.

I WANT TO START FIRST WITH 11 THE STATE'S FINANCIAL CONDITION.

SO WE'VE HEARD A LOT IN THE PAST FEW DAYS ABOUT HOW NEW YORK IS FLUSH WITH CASH.

WE HAVE A LOT IN HAND.

I WANT TO PUT SOME CONTEXT TO THAT.

SO ARE WE DOING GOOD FINANCIALLY JUST IN GENERAL, LIKE IT WAS ANY OTHER YEAR, OR ARE WE JUST DOING WELL IN TERMS OF PANDEMIC?

LIKE, ARE WE BACK TO NORMAL OR ARE WE DOING BETTER THAN WHERE WE WERE BEFORE THE PANDEMIC?

>> SIMPLY PUT, WE'RE DOING BETTER THAN WE WERE BEFORE THE PANDEMIC.

THE BUDGET THAT WAS PROPOSED THIS WEEK BY THE GOVERNOR HAS BUDGET BALANCE NOT ONLY HAD YEAR SO FOR THE YEAR THAT THE BUDGET COVERS BUT ALSO FOR THE NEXT FOUR YEARS AND THAT LEVEL OF BUDGET BALANCE IS SOMETHING THAT WE REALLY HAVEN'T SEEN PRETTY MUCH EVER.

SO IT'S REALLY INCREDIBLE THAT THE STATE HAS MATERIALIZED AS MANY STATE TAX RECEIPTS AS IT HAS TO CLOSE THE GAPS THAT DID EXIST PRE-PANDEMIC AND HAVE BUDGET BALANCE FOR THIS LONG.

>> LET'S TALK ABOUT RECEIPTS.

WE'RE TALKING ABOUT REVENUE COMING INTO THE STATE.

SO WE HAVE A LOT MORE REVENUE RIGHT NOW THAN I THINK WE ANTICIPATED HAVING WHEN WE PASSED LAST YEAR'S STATE BUDGET LAST MARCH AND APRIL.

12 SO IS THAT BECAUSE OF ALL THE FEDERAL MONEY THAT WE GOT, OR IS IT BECAUSE OF THESE HIGHER TAX RATES THAT WE PUT IN ON THE WEALTHY?

I THINK WE'VE SEEN IN THE PAST FEW DAYS A COUPLE OF PEOPLE SAY, WELL, DON'T COUNT OUT THAT TAX HIKE.

SO WHAT'S THE BALANCE THERE?

IS IT MOSTLY JUST THAT FEDERAL MONEY, OR IS IT A FAIR SHARE PART OF THOSE TAX INCREASES THAT WE PUT IN EFFECT LAST YEAR?

>> YEAH.

IT'S REALLY THREE THINGS.

THE FIRST IS THE FEDERAL AID.

NOT ONLY SOME, TARGETED AIDS FOR SCHOOLS AND FOR THE MEDICAID PROGRAM BUT GENERAL FISCAL RELIEF THAT THE FEDERAL GOVERNMENT AUTHORIZED AS WELL.

THE SECOND THING IS THE-- JUST BASE TAX RECEIPTS.

SO ACTUALLY EVEN BEFORE CONSIDERING THE TAX ACTIONS THAT WERE TAKEN LAST YEAR, THE TAX RECEIPTS, LOSSES THAT THE STATE WAS EXPECTING DURING THE PANDEMIC NEVER MATERIALIZED AND IN FACT, THE TAX BASE WAS A LITTLE BIT STRONGER BECAUSE THE STOCK MARKET AND HIGH INCOME EARNERS REMAIN SO SOLID THROUGHOUT THE PANDEMIC AND THEN THE THIRD THING, LIKE YOU SAID, IS THE ACTUAL TAX INCREASES THAT WERE ENACTED LAST YEAR.

SO THOSE WERE ABOUT FOUR TO FIVE BILLION DOLLARS ANNUALLY IN ADDITIONAL RECEIPTS THAT WERE ADDED TOO.

ALL THREE OF THOSE THINGS 13 COMBINED TO FLIP THE SCRIPT FROM WHAT WAS SCRIPTED FROM EVEN A YEAR AGO.

>> ON THE MIDDLE ITEM, THE TAX RECEIPTS, ARE WE JUST TALKING ABOUT INCOME TAX RECEIPTS, OR WE TALKING ABOUT MORE INCOME, SALES TAX, THAT KIND OF THING ALL-ACROSS-THE-BOARD RECEIPTS?

>> IT'S BASICALLY ACROSS THE BOARD.

SO INCOME TAX RECEIPTS ARE THE BIGGEST SINGLE STATE TAX RECEIPT THAT WE RECEIVE AND SPECIFICALLY A LOT OF OUR PERSONAL INCOME RECEIPTS COME FROM HIGH INCOME EARNERS SO WHEN HIGH INCOME EARNERS DO REALLY WELL AND WHEN THE STOCK MARKET AND CAPITAL GAINS DO REALLY WELL, THE STATE BENEFITS FROM THAT KIND OF UPSIDE RISK IN OUR TAX STRUCTURE.

>> ALL RIGHT.

SO THE OTHER SIDE OF THIS IS THE SPENDING SIDE OF IT.

WE HAVE A TOTAL BUDGET ALL FUNDS AND THAT MEERCHS STATE OPERATING FUNDS, FEDERAL FUNDS, CAPITAL FUNDS, ALL MONEY ACROSS THE BOARD IS EQUAL TO $216 BILLION UNDER THIS BUDGET PROPOSAL FROM THE GOVERNOR.

SO HOW DOES THAT INCREASE LOOK LIKE COMPARED TO OTHER YEARS?

WE TALKED ABOUT THIS PREVIOUSLY THIS WEEK.

IN TERMS OF INCREASES, I BELIEVE IT WAS IN 2011, THE STATE BUDGET WAS $130 BILLION SO WE'VE GONE UP 14 QUITE A BIT SINCE THEN.

IS THE INCREASE SIMILAR TO WHAT WE'VE SEEN IN RECENT YEARS OVER THE PAST DECADE, OR IS IT LARGER OR SMALLER?

>> YEAH.

THE BIG JUMP REALLY HAPPENED IN THIS CURRENT YEAR.

SO WE JUMPED ABOVE $200 BILLION FOR THE FIRST TIME THIS YEAR.

AND WE EXPECTED THE BUDGET TO ACTUALLY GO DOWN A LITTLE BIT IN WHAT WAS PROPOSED FOR NEXT YEAR AND THAT DID NOT HAPPEN.

WE'RE ACTUALLY GOING TO INCREASE A LITTLE BIT TO $216 BILLION, LIKE YOU SAID, AND AGAIN, THAT'S BECAUSE FEDERAL RECEIPTS HAVE COME IN HIGH.

STATE TAX RECEIPTS HAVE COME IN HIGH.

ALL OF THESE KIND OF INFLOWS HAVE BEEN SO POSITIVE THAT IT ALLOWS FOR MORE SPENDING THIS YEAR AND NEXT YEAR AS WELL.

>> SO JUST TO GIVE OUR VIEWERS SOME CONTEXT, WHAT ARE THESE BIG PARTS OF THE BUDGET THAT THE STATE SPENDS MONEY ON?

I THINK WHEN I LOOK AT IT, I'M LOOKING AT THINGS LIKE SCHOOLS AND MEDICAID BUT WHEN WE'RE LOOKING AT BUDGET AS A PIE CHART, LET'S CALL IT, WHERE'S THE MONEY MOSTLY GOING HERE?

>> YEAH.

TWO-THIRDS OF THE BUDGET IS SPENT ON THREE GENERAL PURPOSES.

THE BIGGEST IS THE MEDICAID 15 PROGRAM.

SO MEDICAID COVERS RIGHT NOW ABOUT SEVEN MILLION NEW YORKERS.

PROVIDES HEALTHCARE COVERAGE FOR THEM.

IT'S A LITTLE OVER $80 BILLION A YEAR IN TOTAL SPENDING.

SECOND BIGGEST THING IS ON SCHOOLS.

SO THAT'S OVER $30 BILLION A YEAR AND THE THIRD BIG BUCKET IS ON THE STATE'S WORKFORCE.

SO THOSE THREE TOGETHER ARE ABOUT TWO-THIRDS OF THAT TOTAL $216 BILLION PIE.

>> AND OUT OF THOSE DO WE SEE ANY LARGER-THAN-NORMAL INCREASES IN THOSE BIG SPENDING AREAS IN HOCHUL'S BUDGET?

>> YEAH.

ESPECIALLY IN MEDICAID AND IN SCHOOL SPENDING.

THE MEDICAID PROGRAM ADDED A LOT OF PEOPLE DURING THE COURSE OF THE PANDEMIC.

A LOT OF PEOPLE SHIFTED FROM HAVING COVERAGE THROUGH THEIR JOB INTO THE MEDICAID PROGRAM MAYBE TEMPORARILY, MAYBE FOR A LONGER SPELL.

ON SCHOOLS, BIG INCREASES WERE ENACTED LAST YEAR AS PART OF THE BUDGET NEGOTIATION.

SO A LOT OF INCREASED SPENDING ON SCHOOLS WAS ALREADY BOOKED AS OF LAST APRIL.

SO WE DO SEE SOME MARGINAL INCREASES IN WHAT WAS EXPECTED TO BE SPENT ON SCHOOLS BUT NOT AS SIGNIFICANT AS WAS ENACTED 16 LAST YEAR.

>> YOU KNOW THIS IS A MUCH EASIER CONVERSATION THAN PREVIOUS YEARS BECAUSE I THINK IT WAS JUST TWO YEARS AGO THAT WE HAD A MULTIBILLION DOLLAR DEFICIT, SOMETHING AROUND $6 BILLION HEADING INTO THE BUDGET SEASON.

THIS YEAR, WE DON'T HAVE A DEFICIT AND THE BUDGET, AS YOU SAID, DOESN'T HAVE A DEFICIT IN THESE OUTYEAR PROJECTIONS, IN THE NEXT COUPLE OF YEARS AS WELL.

DO YOU THINK THAT MAKES IT HARDER OR EASIER TO FORM A FINAL STATE BUDGET IN THE NEXT COUPLE OF MONTHS?

USUALLY, WE'RE ASKING THE QUESTION OF, OKAY, DO WE HAVE ENOUGH MONEY TO SPEND ON THIS THING?

BUT THIS TIME AROUND, IT'S MORE OF A QUESTION OF WE HAVE ALL OF THIS MONEY.

WHAT ARE WE GOING TO DO WITH IT?

DOES THAT MAKE IT HARDER?

>> I THINK IN SOME WAYS IT'S EASIER AND IN SOME WAYS IT'S HARDER.

IT'S CERTAINLY EASIER TO BE ABLE TO SUPPORT WHAT YOU WANT TO SUPPORT, AND THEN IT COMES DOWN TO PRIORITIZING WITHIN THAT KIND OF WISH LIST.

WHAT'S HARDER ABOUT IT IS THAT THERE ARE A LOT OF ASKS AND A LOT OF THINGS TO IDENTIFY, AND CERTAINLY, RIGHT NOW IN CURRENT CIRCUMSTANCES THIS IS A PANDEMIC BUDGET STILL.

SO THERE ARE URGENT RECOVERY 17 NEEDS AND YOU KNOW, CONTINUED NEEDS FOR BUSINESSES FOR INDIVIDUALS, FOR SCHOOLS ACROSS THE BOARD.

SO THE NEXT TWO AND A HALF MONTHS WILL BE A VERY LONG DISCUSSION BETWEEN THE GOVERNOR AND THE LEGISLATURE ABOUT PRIORITIZING EXACTLY HOW EVERYTHING FITS IN.

>> YEAH.

IT'S QUESTIONING TO BE A REALLY INTERESTING YEAR TO WATCH BECAUSE AS I SAID, THE FIGHT IS NOT SO MUCH ABOUT WHERE DO WE PUT THE MONEY THAT WE DON'T HAVE.

IT'S WHERE DO WE PUT THE MONEY THAT WE DO HAVE.

WE WILL HAVE YOU BACK TO GET MORE ANALYSIS ON THAT.

UNTIL THEN, PATRICK ORECKI FROM THE CITIZENS BUDGET COMMISSION.

THANK YOU SO MUCH.

S >> THANK YOU.

[ THEME MUSIC ] >> SO A LOT TO BREAK DOWN INCLUDING SOME CAMPAIGN NEWS.

LET'S GET INTO IT WITH THIS WEEK'S PANEL, BILL MAHONEY AND MARIE FRENCH ARE BOTH FROM POLITICO NEW YORK IN WHAT I'M CALLING THE POLITICAL POWER PANEL THIS WEEK.

THANK YOU BOTH FOR BEING HERE.

>> THANKS FOR HAVING US.

18 >> I WANT TO START WITH BUDGET.

MARIE, SOMETHING WE HAVEN'T COVERED IN THE SHOW YET IS HOCHUL'S ENERGY AND ENVIRONMENT PLANS IN THE BUDGET, WHICH WAS A BIG THING WHEN SHE FIRST TOOK OFFICE.

SHE DID CLIMATE WEEK IN NEW YORK CITY AND SHE HAD ALL THESE PLANS.

SO LET'S START WITH WHAT WE DO SEE IN THE BUDGET UNDER HER IN TERMS OF CLIMATE, ENERGY, THAT TYPE OF STUFF.

>> YEAH.

SO PROBABLY ONE OF THE BIGGEST THINGS IS BOOSTING THE BOND ACT TO $4 BILLION AND YOU KNOW, ADDING SOME MONEY IN THERE FOR GREEN BUILDINGS AND GREEN SCHOOLS.

THAT'S PROBABLY, YOU KNOW, ONE OF THE BIGGEST, I GUESS, WINS FOR ENVIRONMENTALISTS.

BUT SHE HAD ALREADY ANNOUNCED THAT AND DURING CLIMATE WEEK, THE OTHER NEWER THING IS BOOSTING THE ENVIRONMENTAL PROTECTION FUND WHICH IS THE STATE'S SIGNATURE FUND TO FUND LIKE OPEN SPACE, CONSERVATION AND OTHER PRIORITIES TO 400 MILLION WHICH WILL BE THE HIGHEST LEVEL.

>> OH, WOW.

>> IF THE LEGISLATURE GOES ALONG WITH THAT.

>> IT WAS 300 MILLION, 19 RIGHT?

>> YEAH.

IT WAS SLASHED DRAMATICALLY SORT OF AFTER THE RECESSION AND WAS SLOW SLOWLY BUILT BACK UP AND CUOMO HAD IT AT 300 MILLION FOR THE LAST FEW YEARS.

>> OKAY.

WHAT IS NOT IN THERE?

THAT'S THE OTHER QUESTION.

FOR AS MANY THINGS THAT ARE IN THERE, WE KNOW THE ENVIRONMENTAL ADVOCATES ARE GOING TO SAY, WELL, SHE DIDN'T HAVE X, Y AND Z IN THERE.

WHAT'S NOT IN THERE THAT THEY WOULD HAVE LIKED TO HAVE SEEN?

>> WELL, I THINK SOME ENVIRONMENTAL GROUPS, PARTICULARLY, YOU KNOW, THE NY RENEWS COALITION WHICH WAS A DRIVING FORCE BEHIND THE STATE'S CLIMATE LAW REALLY WANTED TO SEE SOME DEDICATED, MORE SPECIFIC FUNDING FOR CLIMATE MITIGATION EFFORTS, YOU KNOW TO BUILD NEW RENEWABLES, YOU KNOW, TO SPEED ALONG THIS TRANSITION FROM FOSSIL FUELS AND THEY WERE LARGELY DISAPPOINTED BY HOCHUL'S BUDGET, I THINK, BECAUSE THERE WASN'T LIKE A HUGE POT OF MONEY THAT SHE DESIGNATED FOR THAT.

SHE DID HAVE, YOU KNOW, SOME MONEY UNDER THE HOUSING FUND TO START ELECTRIFYING SOME HOMES AND MOVE THAT PROCESS FORWARD.

SHE DID PROPOSE A GAS BAN ON NEW CONSTRUCTION AND THAT'S, 20 YOU KNOW, PRETTY SIGNIFICANT TO HAVE A STATE PROPOSE THAT, AND IT WOULD BE THE FIRST IN THE NATION FOR A STATE TO DO THAT.

>> IS THAT A GAS BAN ON NEW POWER PLANTS, OR IS THAT A NEW GAS BAN ON NEW BUILDINGS?

WHAT DOES THAT APPLY TO?

>> IT WOULD BE A BAN ON FOSSIL FUELS IN NEW CONSTRUCTION FOR BUILDINGS.

>> INTERESTING.

>> SO YOU BUILD YOUR HOUSE, YOU CAN'T PUT IN, YOU KNOW, GAS OR OIL.

YOU WOULD HAVE TO ELECTRIFY IT.

SHE'S PROPOSED TO KICK IT TO KIND OF BUILDING CODES COUNCIL THAT THE STATE HAS.

SHE SAID, WE SHOULD DO THIS BY NO LATER THAN 2027.

SOME ADVOCATES AND NEW YORK LAWMAKERS WANT TO SEE AN EARLIER DATE FOR THAT.

THOUGH WANT TO SEE IT IN 2024.

LIKE LET'S JUST STOP PUTTING IN GAS FOR ALL BUILDINGS.

>> HOW DOES THE CLIMATE ACTION COUNCIL PLAY INTO STUFF LIKE THAT?

BECAUSE, AS YOU AND I BOTH KNOW, THEY HAVE A DRAFT SCOPING PLAN RIGHT NOW TO GET TO THE STATE'S RENEWABLE ENERGY GOALS.

THEY CONTROL THAT WHOLE THING, THE STATE'S PLAN.

21 HOW DOES HOCHUL'S PLANS AND THAT PLAY INTO EACH OTHER?

DO THEY COMPLEMENT EACH OTHER, OR IS IT ALL PART OF ONE THING?

>> YEAH.

SO ACTUALLY, YOU KNOW, HOCHUL'S PROPOSAL, DEPENDING ON WHAT THE BUILDING CODE'S COUNCIL WOULD DO REALLY DOES PLAY INTO THE CLIMATE ACTION COUNCIL'S DRAFT SCOPING PLAN BECAUSE IT CALLS FOR AN END TO FOSSIL FUELS AND NEW CONSTRUCTION FOR LOW RISE AND SINGLE FAMILY HOMES BY 2024 AND THEN FOR ALL OTHER, YOU KNOW, COMMERCIAL AND HIGH RISE MULTIFAMILY BUILDINGS BY 2027.

HER PROPOSAL IS IN LINE WITH THE DRAFT SCOPING PLAN.

>> THAT'S REALLY INTERESTING.

AND I SHOULD NOTE FOR OUR VIEWERS THAT YOU CAN COMMENT ON THE CLIMATE SCOPING PLAN.

IT'S ON THE COUNCIL'S WEBSITE.

IT'S ALL THERE.

WE COVERED IT A LITTLE BIT IN NOVEMBER, DECEMBER.

I DON'T REMEMBER WHEN WE HAD THE COMMISSION.

SO THAT'S REALLY INTERESTING.

I'M EXCITED TO SEE WHERE THINGS GO IN THE NEXT FEW MONTHS WITH THAT.

WE HAD THE LANDMARK CLIMATE LAW PASS IN 2019 OR 2020?

>> 2019.

>> 2019.

THIS IS ALL LEADING UP TO-- 22 IT FEELS LIKE WE'RE JUST BUILDING AND BUILDING AND BUILDING TO-- >> YES.

>> TO WHEREVER WE'RE GOING TO GET TO SOMEWHERE WHERE WE HAVE AN ACTUAL STRUCTURED PLAN FOR CLIMATE CHANGE IN NEW YORK.

SO WE'LL SEE.

I WANT TO TURN TO YOU, BILL, AND SOME CAMPAIGN NEWS.

CAMPAIGN FILINGS WERE DUE ON FRIDAY.

THAT WAS THE END OF THE FUND RAISING PERIOD.

SO NOW WE HAVE FILINGS COME OUT THIS WEEK.

LET'S START WITH THE GOVERNOR'S CAMPAIGN FILINGS.

SO WHAT DO WE SEE AS HER FINANCIAL POSITION GOING INTO THIS YEAR'S ELECTION?

>> SHE'S MADE UP FOR A LOT OF LOST TIME.

>> YEAH.

>> THE GOVERNOR REPORTED RAISING ABOUT $22 MILLION, WHICH SHATTERS EVERY RECORD WE HAD FOR A FILING PERIOD IN NEW YORK.

>> THAT'S CRAZY!

>> TIME PERIODS ARE USUALLY SIX MONTHS AND $12 MILLION WAS THE RECORD FOR A COUPLE OF DECADES NOW AND HOCHUL COMPLETELY BLEW BY THAT, NEARLY DOUBLED IT, WHICH LEAVES HER IN PRETTY GOOD FINANCIAL POSITION.

23 NORMALLY IT CAUSES 30 TO $40 MILLION TO WIN A GUBERNATORIAL RACE, AND THIS YEAR'S CYCLE WAS A LITTLE BIT WEIRD BECAUSE THE INCUMBENT GOVERNOR FOR MOST OF THE CYCLE IS NO LONGER RUNNING FOR RE-ELECTION THEORETICALLY, BUT GOVERNOR HOCHUL BROUGHT HERSELF RIGHT INTO-- MADE CLEAR THAT SHE'S THE FRONTRUNNER IN TERMS OF THE FINANCIAL PICTURE AT LEAST.

>> DO WE KNOW WHERE THE MONEY'S COMING FROM?

DOES IT LOOK LIKE A LOT OF INDIVIDUAL DONORS?

DOES IT LOOK LIKE A LOT OF SPECIAL INTERESTS?

>> WELL, IT'S LIKE WE'VE SEEN WITH MOST FILINGS OF TOP TIER NEW YORK POLITICIANS IN THE PAST.

IT'S FROM BIG DONORS WHO CAN AFFORD TO WRITE BIG CHECKS.

IF YOU'RE RAISING $20 MILLION BY GOING AROUND AND ASKING PEOPLE FOR $10 AT A TIME, THAT'S A LOT OF PHONE CALLS YOU NEED TO MAKE.

YOU'RE PROBABLY NOT GONNA HAVE TIME TO ACTUALLY BE GOVERNOR.

IF YOU ARE COLLECTING CHECKS OF $70,000 APIECE, YOU KNOW, THAT'S JUST A HANDFUL OF FUND-RAISERS A WEEK PERHAPS.

[LAUGHTER] AND THAT'S REALLY WHAT SHE RELIED ON.

IF YOU LOOK AT HER FILINGS, ONLY 146,000 OF THAT 21.9 MILLION CAME FROM SMALL DONORS WHO GAVE $250 OR LESS.

24 WHILE A HUNDRED TIMES AS MUCH MONEY, 14.5 MILLION CAME FROM PEOPLE WHO GAVE 10,000 OR MORE.

>> WOW!

>> SO SHE REALLY TURNED TO THOSE PEOPLE WHO CAN AFFORD TO WRITE BIGGER CHECKS THAN THE AVERAGE NEW YORKER CAN AND THAT'S-- SO SHE'S RIGHT BACK, FINANCIALLY SPEAKING, WHERE GOVERNOR CUOMO HAD BEEN IN PAST CYCLES AT THIS POINT.

>> WHERE ARE HER COMPETITORS IN THE PRIMARY?

TOM SUOZZI AND JUMAANE WILLIAMS ARE HER MAIN ITERS IN THE PRIMARY.

I'M ASSUMING THEY'RE COMING NOWHERE CLOSE.

>> JUMAANE WILLIAMS WAS OUTRAISED BY A HANDFUL OF ASSEMBLY CANDIDATES.

SO HE'S NEVER BEEN A STRONG FUND-RAISER.

HE ALWAYS RELIES ON THIS POPULOUS PROGRESSIVE NETWORK THROUGHOUT THE STATE THAT ARE WILLING TO KNOCK ON DOORS AND VOLUNTEER THEIR TIME FOR HIM.

SO HE'S NOT THE TYPE YOU EXPECT WHO BIG REAL ESTATE IS GOING TO WRITING $50,000 CHECKS TO ANYTIME SOON.

TOM SUOZZI ACTUALLY HAD A PRETTY GOOD FILING.

HE RAISED OVER $3 MILLION.

HE'S ALREADY RAISED MORE OF THIS CYCLE THAN CYNTHIA NIXON DID IN THE ENTIRETY OF HER CAMPAIGN AGAINST CUOMO FOUR YEARS AGO.

25 SO FOR A PRIMARY CHALLENGER TO A DEMOCRATIC GOVERNOR, HE'S IN PRETTY GOOD SHAPE.

SO IT STILL LEAVES HIM SO FAR BEHIND HOCHUL THAT IT'S DIFFICULT TO THINK OF HOW HE'LL MAKE UP THIS LOST GROUND ANYTIME SOON AND I DON'T THINK ANYBODY SUSPECTS HE WILL BE FINANCIALLY COMPETITIVE.

>> RIGHT.

>> HE WILL BE FINANCIALLY RESPECTABLE, BUT NOT REALLY IN THE SAME BALLPARK AS HOCHUL COME THE RUN UP TO THE PRIMARY >> WE HAVE ABOUT A MINUTE LEFT.

SO LOOKING PAST THE PRIMARY, ASSUMING GOVERNOR KATHY HOCHUL WINS THE PRIMARY, WHICH IT LOOK LIKE SHE PROBABLY WILL NOW UNLESS SOME MAJOR UPSET HAPPENS, WHAT DOES IT LOOK LIKE IN TERMS OF HER VERSUS LEE ZELDIN?

WE'VE HEARD TALK IN THE PAST COUPLE OF MONTHS THAT THIS IS THE YEAR THAT REPUBLICANS CAN GAIN SOME GROUND.

MAYBE NOT WIN THE GUBERNATORIAL ELECTION, BUT MAYBE THEY DO A LITTLE BIT BETTER THAN IN THE PAST CYCLES.

>> SO ZELDIN, LIKE SUOZZI, HAD A PRETTY GOOD FINANCIAL FILING, WHERE HE RAISED OVER $4 MILLION COMBINED WITH WHAT HE RAISED EARLIER IN 2021.

26 OPENS ALREADY THE TOP RAISING REPUBLICAN CANDIDATE FOR GOVERNOR WE'VE SEEN IN 20 YEARS IN NEW YORK.

>> OH, WOW.

>> THAT'S NOT BAD.

THERE'S TALKS CURRENTLY UNDERWAY OF CREATING A NATIONAL SUPER PACT TO SUPPORT HIM THAT COULD THEORETICALLY RAISE UP TO $20 MILLION WHICH OBVIOUSLY WOULD BE A BIT OF A FINANCIAL GAME CHANGER IF THAT DOES HAPPEN.

ALTHOUGH, THERE'S PLENTY OF TIMES THINGS LIKE THIS ARE TALKED ABOUT BUT THEY DON'T QUITE MEET THEIR FINANCIAL GOALS, BUT HE DOES HAVE A LONG FIGHT AHEAD OF HIM EVEN IF HE DOES-- HE IS ABLE TO MATCH HOCHUL DOLLAR FOR DOLLAR.

NEW YORK IS A BLUE STATE.

THAT MAY NOT BE ENOUGH TO LAUNCH A CAMPAIGN AD BATTLE THAT'S EVENLY MATCHED COME OCTOBER.

SO WE'LL HAVE TO SEE WHAT HIS PLANS ARE.

>> YEAH.

WE'LL SEE.

REALLY EXCITING ELECTION YEAR.

MARIE FRENCH AND BILL MAHONEY, BOTH FROM POLITICO.

THANK YOU BOTH SO MUCH FOR BEING HERE.

FOR OUR POLITICO POWER PANEL HERE ON THIS WEEKEND.

>> THANK YOU, DAN.

27 >> OF COURSE.

IF YOU MISSED HOCHUL'S BUDGET ADDRESS THIS WEEK, WE DO HAVE IT UP ON OUR WEBSITE THAT'S AT NYNOW.ORG AND WE'LL KEEP IT ON THE HOME PAGE THIS WEEKEND.

WE'RE HOPING TO HAVE THE GOVERNOR ON THE SHOW SOON, AND WE'LL KEEP YOU POSTED ON THAT.

UNTIL THEN, THANKS FOR WATCHING THIS WEEK'S "NEW YORK NOW."

HAVE A GREAT WEEK AND BE WELL.

[ THEME MUSIC ] >>Announcer: FUNDING FOR NEW YORK NOW IS PROVIDED BY WNET.