Gov. Kathy Hochul (D-NY) and New York State legislators announced a budget framework.
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00:00:00I'm really proud to announce that we have reached a general agreement on the fiscal
00:00:042026 state-of-state budget.
00:00:14I'm joined by some incredible public servants. I know you know all of them,
00:00:18but I want to recognize them in particular. Secretary to the governor, Karen Persicilli-Keogh.
00:00:23Counsel to the governor, Brian Mahana. First budget. Going to come back?
00:00:37Our chief, our budget director, Blake Washington. One extraordinary job.
00:00:42Our chief of staff, Stacy Lynch. Director of State Operations, Catherine Garcia.
00:00:48Acting Policy Director and Commissioner of Homeland Security and Emergency Services, Jackie Bray.
00:00:57Senior Advisor and Deputy Counsel, Josh Norkin.
00:01:01And I also want to give a shout out to our communications team led by Anthony Holgerby.
00:01:10Also, I want to recognize my partners in government.
00:01:12Majority Leader of the Senate, Andre Stewart-Cousins, and Carl Heastie, the Assembly Speaker.
00:01:18We spent many, many, many days, nights, more days, more nights, more breakfasts, lunches, dinners,
00:01:26in this room, working really hard to put together a budget that everyone can be proud of.
00:01:31And I want to say this. Despite the chaos and uncertainty that's just constantly emanating out
00:01:36of Washington, we still delivered for the people of New York. We still got it done.
00:01:42And I would not take that for granted. We worked through some really challenging issues.
00:01:47We refused to be drawn into the toxic, divisive politics of the moment.
00:01:52We never lost sight of the people that we were sent here to serve.
00:01:56And we never strayed away from the issues they cared the most about.
00:02:00Together, we designed a budget that will lift up all New Yorkers.
00:02:04In the next few days, the legislature will be conferencing and voting on budget bills.
00:02:08And as is the case every year, some final details are still yet to be worked out through that process.
00:02:14But now, I'll take you through where we've landed on a few key priorities
00:02:18and approximate numbers that we do not expect to change significantly.
00:02:21In my January State of the State Address, I made a declaration that your family is my fight.
00:02:29I vowed to address the affordability crisis by putting thousands of dollars back in New Yorkers' pockets.
00:02:35I vowed to make common sense changes to our discovery laws to keep dangerous criminals from walking free over frivolous, frivolous technical errors.
00:02:45I vowed to put more police on our subways to drive down crime and ensure that every rider feels safe.
00:02:51And I vowed to get more New Yorkers who are suffering from mental illness the compassionate care they need.
00:02:58And I vowed to implement a bell-to-bell ban on smartphones in our schools so our kids can concentrate in class, free from distraction.
00:03:06Well, we got it all done.
00:03:18We're still meeting the needs of New Yorkers and delivering results for all of them.
00:03:22With my affordability agenda, we're putting nearly $5,000 back in your pockets and making our streets and subways safer.
00:03:30That's what this budget is all about, so let's get into it.
00:03:33The overall budget, the funds are $254 billion.
00:03:39We're maintaining record reserves to safeguard against uncertainty, both on Wall Street and in Washington.
00:03:45And as you'll see, we've made some responsible adjustments to the original State of the State that I proposed,
00:03:51as we monitor and navigate a volatile economy.
00:03:54So let's talk frankly about what we've been up against.
00:03:57Donald Trump and congressional Republicans are threatening to slash federal dollars.
00:04:03That is vital to New York.
00:04:05We've already been hit with over $1.3 billion in cuts.
00:04:09This may just be the tip of the iceberg.
00:04:12And the scale of these potential cuts is simply too massive for any one state to absorb.
00:04:18The reality is, we can only devise a budget based on the information we have at this time.
00:04:24There's a possibility that we'll have to come back later this year and update our budget in response to federal actions.
00:04:31But at the end of the day, congressional Republicans, including seven from our state,
00:04:37they have the power to stop these reckless federal cuts.
00:04:40They must find the political will to stand up to this administration and fight for the people they represent.
00:04:47You know, on my travels across the state, I heard the same message from New Yorkers over and over and over.
00:04:54They're struggling so much with the rising cost of living.
00:04:59Raising a family in America has never been more expensive.
00:05:03And the Trump tariffs are making it even harder for working families.
00:05:07I'm delivering on my plan to ease New Yorkers financial stress, as I said, by putting more money back in their pockets.
00:05:15First, our historic middle class tax cut, which is bringing rates to their lowest in 70 years
00:05:22and delivering much needed relief to 8.3 million New Yorkers.
00:05:27Secondly, we're tripling the size of the child tax credit, providing up to $1,000 per child under the age of four,
00:05:35which was literally zero when I first became governor, and up to $500 for school-aged children in 2026.
00:05:43Third, we're investing $340 million to provide free school breakfast and lunch to all K-12 students,
00:05:53saving families $1,600 per child.
00:05:57And while I can't single-handedly stop inflation, I can help New Yorkers afford the basics.
00:06:02And that's why we're sending inflation refund checks to 8.2 million New Yorkers,
00:06:08hard-working taxpayers, up to $200 for individuals and $400 for families.
00:06:14You know, when you add all this up, your family's inflation refund, school breakfast and lunch,
00:06:19the child tax credit for your little ones, plus the middle class tax cut, that's $5,000 back in the pockets
00:06:26of New York families. That's how you make a tangible difference in people's lives.
00:06:32We're not stopping there. Childcare was one of the most significant stressors in my
00:06:39time as a young mom. And it's very real today. Daycare now can run over $20,000 a year,
00:06:46absolutely crushing families. That's why in the last three budgets, I've more than tripled our
00:06:51investment in childcare. This year, we'll continue that effort with an additional $110 million to
00:06:58build new childcare facilities, renovate existing ones. And that brings us closer to our ultimate
00:07:04goal of universal childcare. In late in the budget process, we heard from families in New York City
00:07:11about a looming crisis, about the availability of childcare vouchers. So we stepped in to address it.
00:07:18We've secured an additional $400 million for childcare vouchers covering both New York City and Upstate.
00:07:26That's an increase from the $1.8 billion in my executive budget. With these new resources,
00:07:32we'll offer New York City the opportunity to match our commitment solving this year's crisis. Because
00:07:38every family, every family deserves access to high quality childcare. You know, while putting money back
00:07:46in people's pockets is absolutely essential, economic security means very little without physical
00:07:52security. That's why keeping people safe has always been and always will be my top priority.
00:07:59Year after year, we've made record investments to crack down on crime. And it's paying off.
00:08:05Last year, shooting statewide reached their lowest point in more than a decade. And this year,
00:08:11year shootings are down 53% compared to the pandemic peak era. To build on this success,
00:08:18we're once again directing $370 million toward proven gun violence prevention programs and $50 million
00:08:26to upgrade police technology. And we're adding $8 million to increase safety along our border with Canada,
00:08:33giving us the dedicated law enforcement and technology to stop transnational criminal organizations,
00:08:40and the trafficking of guns, drugs, and people. We're committing $35 million for security enhancements
00:08:48at synagogues, mosques, and other vulnerable locations. Reaffirming that hate has no place in our
00:08:54state. And we're ramping up criminal penalties for anyone who wears a mask to hide their identity
00:09:01while committing a crime or fleeing a crime scene. This goes for any crime that's an a misdemeanor or
00:09:08higher. Let me be clear. I'm not making these massive investments in police and public safety
00:09:16and strengthening our laws just to watch as criminals walk free over trivial technical issues.
00:09:23Too often, crime victims watch in horror as their assailants walk free, not because they're innocent,
00:09:30because of procedural technicalities. It's my job to fight for those victims,
00:09:37many of whom are domestic violence victims. That's exactly what I did. This budget delivers common sense
00:09:44reforms that balance the scales of justice. Our amendments will prevent cases from being dismissed over
00:09:50minor prosecution omissions that don't actually hurt the defense's case.
00:09:55These common sense changes protect defendants' rights, which is important to me,
00:10:01while ensuring that victims get the justice they deserve. And I want to thank the many district
00:10:07attorneys, victims' advocates, and other stakeholders who worked hard to ensure that we found the right
00:10:13balance. Now let me turn to New York City's subway system and what we're doing to keep it safe.
00:10:19Back in January, in close partnership with the City and New Police Commissioner Tisch, we outlined a bold plan to ramp up the police presence on our subways, adding about 300 officers to overnight trains,
00:10:33and I promise to support this effort with $77 million, which we are now securing in this budget.
00:10:40With our state funding, NYPD has assigned officers to every subway train from 9 p.m. to 5 a.m.
00:10:48The results have been swift and undeniable. Subway crime is at its lowest rate in 27 years.
00:10:56But safety is more than just about policing. For too long, those who are suffering from mental illness,
00:11:03severe mental illness, they languish on our streets and in our subways.
00:11:06People who pose a risk themselves and others, but also those who are too sick to secure proper
00:11:15health and shelter and food without help. Let me be clear, my administration has already invested $1
00:11:23billion to rebuild our mental health system. We have more inpatient beds, more clinicians,
00:11:29and a more compassionate approach to care. And I'm proud to announce that as part of our budget,
00:11:35we've agreed to clarify and strengthen our involuntary commitment laws. This will allow us to connect
00:11:41people in the throes of severe mental illness with the life-saving care that they need and they deserve.
00:11:48We're also expanding Kendra's Law to ensure those with serious mental illness receive consistent
00:11:54long-term treatment. And we're investing $40 million in the safe options support teams
00:12:00and new 24-7 shelter sites throughout the subway system. But protecting our communities requires more
00:12:08than streets where people feel safe. We need classrooms where young minds can flourish.
00:12:14And that means eliminating once and for all the digital distractions that steal our kids' attention.
00:12:21During my statewide tour last year, I heard the same message everywhere I went,
00:12:26cell phones are holding our kids back. You've heard me say this, but one student even said,
00:12:32you've got to save us from ourselves. We have to stop. That's why I'm proud that this budget
00:12:38establishes our landmark distraction-free schools policy. Starting this September, all schools,
00:12:44all public schools will implement policies that free students from smartphones and other devices,
00:12:50bell to bell. We protected our kids before from cigarettes, alcohol and drunk driving. And now
00:12:59we're protecting them from addictive technology designed to hijack their attention. Cell phones
00:13:05have dragged too many of our kids into dark places. But together with this change in policy,
00:13:11we're helping them climb back into the light. But removing distractions is just the first step.
00:13:16Our schools must be equipped with the resources, material and support that kids need to learn and to thrive.
00:13:25That's why we're continuing to make historic investments in education.
00:13:29This budget invests $37 billion in our schools. Once again, the highest amount in state history.
00:13:37And this marks an $8 billion increase since I first took office.
00:13:41And we're continuing to modernize how we fund our schools, getting rid of antiquated poverty metrics,
00:13:49replacing that with current census data to more accurately determine what our student needs are.
00:13:54And this will ensure state dollars reach the students who really need them,
00:13:58while guaranteeing that schools receive more funding than they would have under the old formula.
00:14:04And we're tearing down financial barriers that hold up too many New Yorkers from their dreams.
00:14:10We're making community college tuition completely free for adults age 25 to 55,
00:14:18who want to build their careers in high demand fields like healthcare, education and advanced manufacturing,
00:14:24where we have far too many open positions. New York students deserve every opportunity to succeed,
00:14:31and this budget delivers exactly that. Let's talk about housing. Opportunity begins with a place to call home.
00:14:40That's why addressing the housing crisis remains my central focus. Last year,
00:14:46we delivered the most significant housing policy for New York in half a century.
00:14:51One year later, 300 communities have joined our pro-housing movement. New York City has been
00:14:57transformed in the city of Yes, thanks to a billion-dollar state commitment we made real in this budget.
00:15:04And we're well on our way to our five-year goal, 100,000 affordable homes across the state.
00:15:11This year, we're building on our efforts by taking a stand against the private equity firms
00:15:17that are taking over our housing markets. We're going to ban them from bidding on single and two-family
00:15:22homes. The first 90 days on the houses are on the market. You know what that does? It gives New Yorkers,
00:15:29a young couple then saving, want to buy that first house. It gives them a fighting chance to finally
00:15:33own their home and build a strong foundation for their families. As we build homes for families today,
00:15:41we must ensure we're also ready for the challenges of tomorrow. I'm proud to say that our budget includes
00:15:47the largest climate investment in the history of the state budget. How? We're directing over one
00:15:53billion dollars in funding to support three key priorities. Keeping energy costs down, ensuring
00:16:00reliability so the lights stay on, and continuing our transition to clean energy. As we pursue these
00:16:07energy policies, we're also investing heavily to protect our communities from increasingly severe weather
00:16:13events. That's why adding 500 million dollars for clean water and flood control infrastructure brings
00:16:20our total investment to 2.65 billion dollars since 2022. With this budget, New York is pursuing an
00:16:30energy policy of abundance. Where costs are lower, power is reliable, and our transition to cleaner
00:16:37resources continue at a pace that works for everyone. While we build a greener future, we're also improving
00:16:44the transportation infrastructure that connects our communities. We're fully funding the 68 billion
00:16:50dollar MTA capital plan to advance critical projects, including the Interboro Express, new Metro North
00:16:57stations in the Bronx and faster service in the Hudson Valley, and critical repairs to avoid another summer of
00:17:05hell. And we've found an equitable way to pay for it. We're making a modest adjustments to the payroll
00:17:11mobility tax to protect small businesses while ensuring large corporations contribute their share. Small
00:17:19businesses across the New York City region will actually see their tax burden reduced by half, while larger
00:17:25employers whose workforce heavily rely on mass transit will see some small increases. And we're taking the
00:17:32$1.2 billion previously allocated for Penn Station and using it to support this plan to fund safety
00:17:39improvements and stop fair evasion. As part of the deal, we're required shared sacrifice from the MTA.
00:17:47Just like the city and state are each contributing $3 billion to this plan, the MTA itself will find
00:17:53savings for the final $3 billion of this plan. Our commitment to building a stronger New York extends to
00:18:01every corner of the state. For the second year in a row, we're delivering $50 million in temporary municipal
00:18:07assistance to cities and towns across New York. That'll help local governments pay for essential workers like
00:18:14police officers and firefighters. You know, Albany is New York's proud capital. We've all spent a lot of time here.
00:18:22It's been my home for more than 10 years. I love this community. And I believe deeply in this community and its future.
00:18:29But like many cities, Albany faces significant challenges that were only magnified by the pandemic.
00:18:38I see these challenges firsthand when I walk the streets, especially from the residents to the Capitol.
00:18:45I see a city that is poised and ready to be restored to its former glory. And that's why this budget
00:18:51launches our $400 million Championing Albany's Potential Initiative to revitalize the downtown core.
00:18:58This transformative investment includes $200 million to targeted economic development projects.
00:19:05And because safety must be the foundation of any thriving community, we're providing immediate support
00:19:10to enhance public safety along Albany's key corridors. This budget is far more than a financial document.
00:19:19It's a declaration of our shared values, who we are, who we're fighting for, and a roadmap for a brighter future.
00:19:26We've made strategic choices and investments to reflect what matters most. As I said back in January,
00:19:35your family is my fight. This budget honors that promise. While Washington remains mired in division
00:19:42and dysfunction, we're still showing that government can work for the people. We can solve problems.
00:19:49We can still move forward. Why? Because we're New Yorkers. We don't back down from challenges. We overcome them.
00:19:57We don't give in to cynicism. We embrace optimism. And we don't settle for the status quo. We strive for far better.
00:20:06And I want to thank all my partners in government for the collaboration and all the hard-working state employees
00:20:13who will implement this vision, particularly those who have been working so tirelessly on this budget.
00:20:18But it's all those out there who will be implementing this as we lift up all New Yorkers.
00:20:22And most importantly, to the people of New York, this budget's for you. Thank you.
00:42:04Alright, we're going to do on topic for the line to cover.
00:42:07Alright.
00:42:08And I also want to acknowledge that you're missing your LCA rehearsal at this time, so I apologize
00:42:14for that.
00:42:15I'm missing mine too.
00:42:17Governor, with the MTA capital plan, you're calling it a modest,
00:42:21it a modest increase, but for both New York City and then the two, Hudson Valley and Long
00:42:28Island, the payroll mobility tax will be about, it'll be a quite a jump. So how do you explain
00:42:34that? And some lawmakers say that it's kind of unfair to have the majority of large New
00:42:40York businesses, New York City businesses, be paying for this. And how much taxes will
00:42:45it actually generate within the first year? You know, what we're trying to do is make
00:42:48sure that the whole region, which relies so heavily on safe, efficient public transit,
00:42:55we all know that is the lifeblood of the entire region and this is the economic engine for the
00:42:58state. I believe that most people understand that we have to continue investing now so as happened
00:43:06in the past, people kick the can down the road, it's more expensive to make the repairs and maintain
00:43:11this going forward. So we have a lot of plans. We want to make sure that the Hudson Valley has
00:43:16you know, faster trains and more opportunities to get people to work every day, making sure that
00:43:21they're safe. So what you have to do is have some shared sacrifice, but this region is the one that
00:43:26benefits most directly by having, you know, the Long Island Railroad, you know, the Metro North as well
00:43:31as the subway. So larger companies, you know, they have more employees. This would apply to companies with
00:43:40$10 billion in payroll. $10 million in payroll, $10 million in payroll. And so we're really excluding
00:43:49all the smaller businesses that would be hard hit. And in fact, we're giving them a tax cut. We're
00:43:54cutting by 50% what they may be paying already. So we're looking out for the smaller businesses,
00:44:00the ones that are starting. And I think there's an understanding to these large employers that they
00:44:04have hundreds of employees that rely on this to get to work at a lower cost to them as opposed to having
00:44:11the drive to work. So anything else on the percentage was a point? It's a 50% reduction. You said governors
00:44:16of smaller employers. It also, you felt strongly to give some relief on the self-employed. Currently,
00:44:23their income threshold is at $50,000. This proposal would bring up to $150,000. But the increase in payroll,
00:44:29it is a 0.6 to . So we're still working on that with the legislature. Okay. Okay. It's-
00:44:36How much do you think it will generate towards the total five-year capital plan? Because we have
00:44:40to get to the $68 billion, right? Would you prefer the MTA actually slims down that number? Or do we
00:44:45kind of have a weird gap now that you're going to need either them to fill in? What's their contribution?
00:44:50We are talking. In fact, we're looking for $3 billion worth of savings from the MTA. Basically,
00:44:55it's $100 million of savings, but bond it out. That's $3 billion. We- It's shared sacrifice.
00:45:01The city is paying. The state is paying. The MTA has to find more efficiencies. So combined,
00:45:08we'll be able to afford the- It's an ambitious sounding capital plan, but we have no choice.
00:45:14Again, previous administrations over decades never did what was necessary to bring this up to speed,
00:45:21make sure that the signals are working, that we've expanded lines, that the trains are replaced when
00:45:26we need to. They're very expensive, about $10 billion to replace the trains. And so these are all costs
00:45:31that I'm taking responsibility and saying, now is the time to do something. You know, it's over 100 years.
00:45:37Again, I look back and say it would be nice if everybody made investments over time, but I'm the one
00:45:41saying this is so critically important to us that we're going to pursue this ambitious plan, but we're going
00:45:47to make sure that it's more- it's a better product for all New Yorkers who rely on it.
00:45:51Nick? Governor, on the MTA payroll tax increase, are you- are you concerned about any sort of political fallout
00:45:56from this back in 2010 when they did something like this? Democrats lost control of the- of the state Senate.
00:46:02You're running for re-election next year. You're going to have to stand before voters and- and- and justify that tax increase.
00:46:06I think there's a- a dramatic change in where the burden is placed. And companies that, you know, if we're looking at companies, and again,
00:46:15working out the details, but companies that have approximately 10 million dollars in payroll- I mean,
00:46:21I've worked for a lot of small businesses, that's out of the realm for anybody. I mean, that's- these are large businesses.
00:46:27And, you know, they benefit from having an efficient transportation system for their employees.
00:46:32So, it's a different focus on who's paying for it. Again, for small businesses, we're cutting at 50 percent.
00:46:41So, that's- that's where the focus is. Rob?
00:46:45Governor, what is the status of Mayor Scanlon and Buffalo's plans for the sale of parking ramps as well as the three percent of-
00:46:51uh, a bed tax? Where are we with that and is that something that is now- we- uh, people of Buffalo should expect to see in- in- in budget?
00:46:59Uh, that will be known very soon over the next day or so. Uh, that has been a subject of conversation.
00:47:06I know the Majority Leader of Crystal Peoples- Stokes has been weighing in-
00:47:09very- rather heavily on the importance of trying to find some assistance that is requested by the city of Buffalo to deal with the financial crisis right now, so-
00:47:18I just want to interrupt. Senator Ryan put out a proposal yesterday as well to have the bond money to have the, uh, Buffalo Fiscal Stability Authority basically bond out that money over four years. Is that something-
00:47:32You know, I think ultimately the people of Buffalo and if, you know, if there is a control board then we'll have to look at all the options.
00:47:40I mean, they may need both at the table. It's- it's a- it's a serious crisis, seventy million dollars, and they need to have a way to make up for years where they, um, have had problems. So I'll just leave it at that.
00:47:55Uh, Katie?
00:47:56Governor, I'm curious why you're holding this announcement now, and I hear lawmakers are conferencing even right now, so a lot of them are saying I don't understand how we have possible funding fully open.
00:48:09How is there an agreement, and also when is the budget extender going to the next one?
00:48:15No, I- what I want to focus on today was to report on my priorities that I laid out in my State of the State address, and when I presented the budget in this room.
00:48:25And I'm really proud to say, um, we got it done. We got it done. So, yes, there are- in a budget this large and complicated, you know, there are members who want to weigh in on their issues.
00:48:38This is what goes on in the conferences, but on the big ticket items, a middle class tax cut, child tax credit, the- the entire affordability agenda with the inflation rebate, uh, covering school lunches and breakfasts for families.
00:48:54Um, my cell phone was critically important to me, affordability. I mean, the discovery changes. This all took a lot of effort, and what I'm here to say is it's accomplished, and I'm really proud of it.
00:49:08Uh, and, uh, and even, you know, we talked about masks for a long time. You know, to able to build a structure, a compromise and support, you know, making sure that people are safe in our cities and on our subways, and we got a lot done.
00:49:20So, um, like I mentioned the discovery laws. That's quite a list. So, there are a few loose ends out there, I would say. But I think it's important for people to know that we've delivered.
00:49:32We've delivered. This is an extraordinary budget, by all standards, and what we've been able to accomplish.
00:49:37Oh, and when does the extender go through, and when do you actually plan for bills and credit events?
00:49:43Thursday, you know, the school run alone takes 36 hours. Um, Thursday?
00:49:49For the next extender bill. Yeah.
00:49:51To vote on them, or?
00:49:53Blake?
00:49:54The next extender bill. We've been on a cadence of Tuesdays and Thursdays. That we'll maintain throughout this week, as we wait for budgets to come to print and be acted upon.
00:50:03So, this next one, on Thursday, do you try to be the last extender?
00:50:07From your lips to God's ears.
00:50:09Alex?
00:50:11Governor, on the subject of the state prisons, I understand that you had at one point sought permission to lower the CO hiring age from 21 to 18, and to expand merit time, and essentially getting the
00:50:24people out of prison a little bit faster. Are any of those in the agreement that you've struck with the legislature?
00:50:29Yeah, I first want to set the framework for why we're in this situation.
00:50:332,000 corrections officers walked off their job and engaged in an illegal, wildcat, unsanctioned strike.
00:50:40That left us in a precarious situation. The incarcerated population, the other corrections officers who had the courage to stay,
00:50:49as well as members of other work forces from PEF and CSEA, and the community at large.
00:50:56So, a crisis was created. So, I've directed my team to find an all be above approach to get more correction officers in the system.
00:51:05You know, the thought that if it was 18 years old, as we have 18 year olds working in jails all over upstate New York,
00:51:12and 18 year olds who certainly are responsible when it comes to being part of our military and going into harm's way in foreign countries.
00:51:21I have faith in 18 year olds, but I know there's a lot of question about this.
00:51:25And our proposal was to basically say that they would, you know, be supervised for a certain time longer than a new employee would be and have other constraints.
00:51:33So, and also, you know, there was this presumption that we're going to be freeing all these violent criminals and, you know, people have to worry about that.
00:51:42And, you know, we are trying to manage a situation where we have not enough corrections officers.
00:51:50We have an incarcerated population and we have to protect everyone involved.
00:51:54So, we've been looking at a number of options.
00:51:56Anybody else want to comment on that?
00:51:59Okay.
00:52:00Okay.
00:52:01To be clear, is that in the budget or are you still looking to negotiate that out of that process now?
00:52:06Pardon?
00:52:07There will be substantial reforms in the budget.
00:52:09There's a couple loose ends.
00:52:10We're tying up in the next day or two.
00:52:12Rebecca?
00:52:13I mean, to follow up on, I think it might have been Kate's question, there's still very few details that even on your priorities
00:52:23that you have provided.
00:52:24I mean, the discovery is just saying we did something, but that's a very nuanced law that you haven't really provided details.
00:52:30You didn't include foundation aid, which is usually announced alongside the overall education aid.
00:52:36Why make this announcement now as opposed to just waiting that couple of extra days that you can come out here and say,
00:52:44this $254 billion, it's the final number, sorry, $254 billion, that's the final number?
00:52:49Because last year, even that changed from your original announcement.
00:52:52So you're saying you want the budget to go longer?
00:52:55This doesn't have any impact on when the budget bill is passed.
00:52:58No.
00:52:59We have worked out the language of discovery.
00:53:01And that took an enormous amount of time.
00:53:04There was not an appetite to do what I thought was necessary to stop people.
00:53:08People who committed crimes, defendants, but obviously there's been an accusation they committed a serious crime.
00:53:17And so many cases are being dismissed.
00:53:19I mean, dismissals went from 42% to 62% since the reforms were put in place in 2019.
00:53:25And I've supported those.
00:53:26As I've said before, the pendulum was too far against the defendants.
00:53:32But now it's gone too far against the prosecutors.
00:53:35The sweet spot is in the middle, and that's what we strive really hard to do.
00:53:38And it was arduous to address all the concerns of the legislature, but also making sure that our district attorneys,
00:53:44who are extraordinary in coming up here many times and making sure that people understood, you know,
00:53:49what they're up against and the victims, especially domestic violence.
00:53:52So we have the details here.
00:53:55Brian, do you want to go over the details?
00:53:57Sure.
00:53:58We can lay out all the details.
00:53:59Yeah.
00:54:00So one of the major issues that we've been trying to address is the fact that dismissals are often had for minor issues,
00:54:08including in particular when the speedy trial clock is already run.
00:54:11And so a major reform that we're making in the budget is to allow judges to conduct a holistic assessment of the discovery that has been had and not had,
00:54:26rather than approaching it on an item-by-item basis, which really lends itself to dismissals,
00:54:32to assess, using a variety of factors, the prejudice that, if there is any, to the defendant,
00:54:39as well as the prosecutor's efforts to exercise due diligence.
00:54:45The other piece is the importance of separating the speedy trial issue from a discovery violation,
00:54:53so that even if the speedy trial clock is already run, those factors will be utilized in order to assess whether or not
00:55:00what the appropriate remedy will be and not automatically lead to dismissals.
00:55:05The third piece, I would say, is limiting the amount of discovery that prosecutors are required to turn over in the first instance,
00:55:13narrowing it from, in many instances, there's the 21 categories that's in the discovery law,
00:55:18narrowing it from items that are relevant, excuse me, related to the case, instead being related to the charges themselves.
00:55:28And with respect to the sort of catch-all category, narrowing that to that which is relevant to the case, rather than just related to it.
00:55:37In addition, creating the proper incentive so that defense attorneys don't wait for the speedy trial clock to run,
00:55:44and then file any challenges, and expecting that the speedy trial clock will lead to a dismissal.
00:55:51Instead, for both felony and misdemeanor cases, there will be a 35-day period in which defense attorneys will need to file their,
00:56:00any discovery challenges that they might be had. And there are others, but those are sort of the major ones.
00:56:05The issue of prejudice, right now, if due diligence is found to be had, and good faith was found to be had,
00:56:14in theory those should not be automatically dismissed, it should go and be considered separately on a lesser severe punishment.
00:56:25If they don't prove due diligence, then it gets automatically dismissed if it's after speedy trial.
00:56:30The issue of prejudice, if it's bound to be prejudiced, does that mean that it will be automatically dismissed if it's after the speedy trial date,
00:56:37the same way that if due diligence is not had, it's supposed to be an automatic dismissal?
00:56:43No, the judge is going to be instructed under the law to weigh all those factors holistically,
00:56:48both the efforts of the prosecutor to act with due diligence, as well as any harm that's suffered by the defendant as a result,
00:56:57like the prejudice concept. And they're supposed to craft a remedy that's appropriate, considering all of those factors.
00:57:03So it is not going to be the case that these cases will automatically be dismissed, regardless of whether or not the speedy trial clock has run.
00:57:10Can you do that again, but for involuntary commitment and what expanding Kendra's law mean?
00:57:19And then, sorry, one actual question for the governor.
00:57:22Was the changes you saw around how the lieutenant governor shows up on the ballot, is that in the budget?
00:57:29Yes.
00:57:30It is? And so now he or she, whoever it is next year, will run with you on a ticket?
00:57:36Like the president and the vice president, and like the many, many, many other states, yes.
00:57:41Well, we'll connect Brian and other members of our team to the board.
00:57:44Yeah.
00:57:45Do you want to explain the involuntary?
00:57:47All right.
00:57:50And then, Jack, you should .
00:57:53Yeah.
00:57:54Yeah.
00:57:55So the first on the involuntary commitment piece, a major piece of what the, really the major component of what the governor wanted to accomplish in the budget was to have enacted in state law, in the mental hygiene law, that people can be involuntarily committed if they are at a substantial risk of physical harm due to the inability to meet their basic needs.
00:58:19So that is the major piece that's codified in the law, and that aligns New York with 43 other states.
00:58:25In addition, even prior to this budget, the governor has been making efforts to coordinate care for people after they've been voluntary committed, and they are being discharged.
00:58:36We are also giving more flexibility, so there are, you know, there are two different practitioners who are supposed to be, you know, involved in a decision to involuntarily commit someone.
00:58:58And under current law, it's just two doctors, so we are also enabling nurse practitioners to be one of the professionals that are involuntarily committing people.
00:59:08And then, you know, when, in many places, in particular in New York City, the individuals, if they are on the street, EMS, excuse me, EMS currently does the transportation to a hospital, but that's not required under law.
00:59:26And now, where practicable, where that's actually within the ability and capacity of the emergency services operation, they will be, you know, required to utilize emergency services.
00:59:40So I just want to, you know, thank my team for working so hard on both the discovery and the involuntary.
00:59:45Just for the record, even with our changes in discovery, it'll still be viewed as the most progressive discovery laws in the nation.
00:59:53We've worked hard to make sure that the cases where people are walking free because of a technicality, unrelated to guilt or innocence, walking free, those days need to end and they're going to be over because of these changes.
01:00:07Secondly, it has always been, to me, a travesty to see people languishing on the streets or in our subways who clearly cannot make decisions for themselves, who feel abandoned.
01:00:17And I just think it's far more compassionate for us to make sure that they get the help they need.
01:00:22As mentioned, we've invested well over a billion dollars over the last few years to prepare for this time, that we have more beds available.
01:00:30We have more clinicians.
01:00:31We have exit strategies where there's discharge plans where people actually will be getting follow-up care.
01:00:38So this is how we start making a real difference in the quality of life for these people, but also for people who are afraid on the streets that this could be an individual who could cause harm to themselves,
01:00:48that they can have that greater sense of security that they deserve.
01:00:51Governor, on masks, what we arrived at is obviously not a mask ban like we discussed last year in this room.
01:01:03If standing with the Jewish community is so important to you, then why did you settle for this watered-down proposal on masks?
01:01:11The community that rose up and asked for changes supports this.
01:01:19They were involved in crafting this.
01:01:22And the word mask ban was probably an overstatement in terms of, you know, we always knew we were going to allow for religious purposes or for health purposes.
01:01:31So that was a broad description.
01:01:34But basically what people are looking for is to not have someone be able to get away with wearing a mask when they're harming another person or committing a crime or harassing or threatening.
01:01:43We got to that.
01:01:44That's exactly what this does.
01:01:46Is this going to stop all the mask harassment that we're seeing in New York?
01:01:50This is going to help combat that?
01:01:51Well, when you write laws, you never can stand here and say, oh, this will solve this problem 100%.
01:01:57I don't know any law that you can guarantee would end up in that category.
01:02:01But I think what your premise, your first part of your question was, is this supported by the groups that came forward?
01:02:07Now, this was again, a law that was put in place to stop the KKK, the original mask ban that was suspended during COVID.
01:02:16And we're just trying to get back to what are our concerns.
01:02:20I don't want people wearing a mask on the subway, be able to beat the crap out of somebody, excuse my language, but beat them up.
01:02:27Even though I have cameras on the trains and I can't identify them, the police cannot identify them.
01:02:32So anyone in the commission of a crime or if it's assaulting someone, vandalizing a building or threatening and harassing.
01:02:39So this is broader than just, you know, maybe what some communities were hoping for.
01:02:43This actually covers a larger area because, as you know, we have to fight crime.
01:02:48We have to protect our citizens.
01:02:50And those who are trying to, you know, hurt others and vandalize or threaten, you know, disguising their identity,
01:02:57they shouldn't be able to get away with that.
01:02:59And this law is going to start getting at that.
01:03:01Governor, you've talked a lot about affordability.
01:03:04Right now, New Yorkers who are on unemployment benefits are making hundreds of dollars
01:03:08less per week because New York, almost alone among all states in the country,
01:03:13has not paid off its COVID unemployment debt to the feds.
01:03:17Is this budget going to pay off that debt?
01:03:20And if not, why?
01:03:21Well, first of all, you know the reason why we had the largest unemployment expense in the nation.
01:03:27We had the most people out of work in the entire, we were the epicenter of the pandemic.
01:03:31We received a disproportionately high number of federal stimulus dollars and spent none of it alone among 50 states.
01:03:36Right.
01:03:38Decisions were made before my time.
01:03:39I will acknowledge that.
01:03:40Okay.
01:03:41I have to do a lot of cleanup.
01:03:42And so, what I'm talking about is conversation we've been having about what we do with this.
01:03:49Right now it would be about $8 billion?
01:03:52Nearly $8 billion.
01:03:53Nearly $8 billion.
01:03:56Added on to the cost of our budget.
01:03:59So, we're wrestling with this.
01:04:02I'm cognizant of the fact that because Donald Trump is probably crashing our economy and heading us toward a recession,
01:04:10and a recession means more people be unemployed, it is something that is very much in our conversations.
01:04:15But we're trying to manage, you know, taking $8 billion out of our coffers to solve this problem that'll actually be resolved in two years.
01:04:26I think in two more years they'll be paid off.
01:04:27Is that right, Blake?
01:04:28That's correct.
01:04:29Okay.
01:04:30So, the budget will not pay off the UI debt?
01:04:31No.
01:04:32Do they not pay in interest, though, the annual analysis you proposed?
01:04:36Yeah, we're trying to reduce the cost for employers.
01:04:39You know, we've heard them, we're concerned about them, and, you know, we want to alleviate that burden on them.
01:04:44Thank you, President.
01:04:46Governor, you talked about the impending fiscal uncertainty and the need to be a little bit more conservative than originally planned.
01:04:55How much did you put into reserves, or does this budget put into reserves, and where did you cut back from your original proposals?
01:05:02Are there any areas specifically that you can say where you didn't put as much in as you had wanted to?
01:05:07Not about $400 million, also scaled back the amount under my inflation rebate a little bit.
01:05:16Still giving a rebate to 8.2 million New Yorkers, in addition to the tax cut, the middle class tax cut.
01:05:24But I had to step back and say, the world has changed dramatically since Inauguration Day.
01:05:29So, when I put forth my budget, and my focus was trying to alleviate the pain that families are going through because of inflation, which is no fault to their own,
01:05:37could not have foreseen the upheaval in our economy.
01:05:41With Wall Street, for example, we rely heavily on Wall Street bonuses to help us, you know, help finance our budget.
01:05:48That's an area we don't know how it's going to be at the end of this year.
01:05:51Who knows what Wall Street's going to look like even tomorrow?
01:05:54And the cost of everything for families and the state of New York is going up.
01:05:58I mean, our road salt and all the other things, the thousands of commodities that we have to purchase to run government.
01:06:03So, we've decided to scale back this year in this budget with the information that was emerging only literally in the last few weeks.
01:06:13The last few weeks.
01:06:14Blake, do you want to comment on that?
01:06:16I think you hit all the highlights, Governor.
01:06:19We did take down a series of initiatives.
01:06:22Governor mentioned $400 million.
01:06:24Those are items that were included in our state of the state address or as part of our state of state actions and then just base budget increases year over year.
01:06:35And those are things that we, the Governor feels deeply about, things that we would love to do, but just trying to be mindful of the restraints of what we're facing.
01:06:43But some of the new costs that we brought on, the Governor mentioned earlier, the prison crisis which we're financing at a pretty fast clip.
01:06:50We're anticipating about $700 million in the upcoming year for the prison staffing shortages specifically.
01:06:58The child care crisis is another $400 million.
01:07:01So, we were trying to just get back to a level that we think it was more sustainable into the future.
01:07:08But, to your question about reserves, for me the gold standard, you know, for accountants and people who monitor this, is 15%.
01:07:16When I became Governor it was 4%.
01:07:18It is 15%.
01:07:19We have maintained that at $21 billion in reserves.
01:07:23Again, a rainy day or, as happens in New York, if we have a major recession, you know, it'll be a hurricane.
01:07:29But, I have to make sure that we're setting aside the money that may be needed if there's a crisis that hits our state of that magnitude.
01:07:38All right, Caitlin, Maria, and then we've got to go.
01:07:40Governor, in terms of the Medicaid budget, could you walk me through where you landed on that spending?
01:07:46And, are there any savings in that budget that account for, you know, what's to come down the line as we've been hearing of federal cuts on that?
01:07:55Well, you know, we looked at savings starting last year with the CDPAP program,
01:07:59which was a program intended to allow people who were needed home health care to select their own provider.
01:08:06It cost $1.9 billion back in 2015, and now we've exceeded $11 billion.
01:08:15So, our budget before anything, baseline between education and Medicaid, is, do you know, about 7%?
01:08:24No, 7% increase, it was 2.
01:08:26You don't say roughly 50% of the budget.
01:08:2950% of the budget.
01:08:30So, Blake, I'll let you explain, you know, what else we've done.
01:08:33But, programs like that, you know, we don't see the savings yet, but we will.
01:08:38That was important to get that right, and we are still completing that transition, but almost there.
01:08:43We're very, very far along.
01:08:45So, just to be clear, of the overall increase, the increase year over year, roughly 50% is attributed to Medicaid and school aid.
01:08:53On Medicaid, we're still going through a series.
01:08:56The Governor had a handful of actions in our proposal, which the legislature and our teams are working through now.
01:09:03We expect resolution on those imminently, and I think that, for sure, one of our biggest actions was, as the Governor alluded to,
01:09:11the CDPAP single FI last year, implementing that, and ultimately changing the trajectory of spending in that program in the long run.
01:09:20Is CDPAP still going to garner $500 million?
01:09:23Are you still expecting those types of savings?
01:09:26And did it save $250 million in the last budget?
01:09:31We're cautiously optimistic.
01:09:33Would there have been some, I know there's some enrollment in other programs, there's been some shifting, as you're aware, from consumers to one program or the other.
01:09:40And as I say over and over and over again, it's the Governor's charge.
01:09:44The savings are very, very important.
01:09:46The consumer experiences even more so.
01:09:49So, we know there's certainly, consumers are making different choices.
01:09:53We're watching that closely.
01:09:54We also know, unfortunately, that some of the companies that have much to lose are providing, you know, bad or no information to constituencies.
01:10:06The Department of Health, the Ops team have been putting untold numbers of bodies up against that just to make sure that that transition works really smoothly.
01:10:16And so, we're optimistic that it will carry.
01:10:19Are you looking at other areas of the Medicaid budget to pull back on costs?
01:10:24Because I know House Republicans are, you know, have spoken about how they think the state's increase in the Medicaid budget is going up unnecessarily.
01:10:34And they see, you know, as they consider cuts at the federal level.
01:10:38So, you know, this would be something that you would have to contend with.
01:10:42So, you know, are you looking at, you know, if you come back, kind of creating a plan for what to do, you know, in the meantime?
01:10:50The real drivers of what the Medicaid costs are is people using Medicaid.
01:10:57And so, if you are going to cut Medicaid, you are cutting the eligibility of people.
01:11:02And I think that we need to be holding our Republican congressional delegation accountable for when those cuts happen and if they happen.
01:11:12I don't think it's a done deal.
01:11:14I think it will be very, very hard for some people to cast that vote to literally cut people off of health insurance.
01:11:22But that is the real driver.
01:11:24The real driver is the number of people in the program.
01:11:29All right.
01:11:30Marie, last one.
01:11:31Yeah.
01:11:32Governor, could you provide a little more detail about that one billion for climate, you know, what it's going to be used for?
01:11:37And do you really think that's enough given sort of the federal picture right now on climate policy?
01:11:44Trump, you know, pulling the plug almost on an offshore wind project that was already under construction.
01:11:50And one more is the expanded waivers for electrifying school buses in there.
01:11:55No, it's stunning in its scale what the Trump administration is doing to our renewable energy policies.
01:12:04Absolutely unnecessary.
01:12:05These are industries that are, you know, well on their way.
01:12:08We already have homes that are receiving offshore wind power.
01:12:11We had a plan to power about 500,000 homes under the initiatives that were underway with Empire Wind and Sunrise.
01:12:18And it's really frustrating because these are areas where we worked hard, worked really hard to get these in place and the whole lengthy process.
01:12:28I think the offshore wind proposals have been there for maybe seven or eight years.
01:12:32I don't know if anybody remembers.
01:12:34I saw a number that was shocking.
01:12:35They finally happened and then the Trump administration just says, no, they're gone.
01:12:39They're gone.
01:12:40Well, we're in court.
01:12:41We don't think that they have the authority to be able to pull previously approved licenses for offshore wind, but that is hurting us.
01:12:49And also the fact that they stopped money.
01:12:51They already cut, as I said, $1.3 billion.
01:12:54And part of that was money for electric vehicles.
01:12:57Part of it is for, you know, people researching, you know, vaccinations and, you know, preparing for the next pandemic and other, you know, other really important public health initiatives.
01:13:09FEMA dollars are at risk.
01:13:10FEMA dollars are at risk.
01:13:11I mean, when you think about the environment, we're getting slammed with so many natural disasters.
01:13:18And to think that FEMA money may not be there to help these families on Long Island and the Hudson Valley where they seem to hit the hardest.
01:13:25But, Jackie, are you want to talk about that?
01:13:28Or is that, or Catherine?
01:13:29Catherine knows.
01:13:30So certainly the $1 billion, which is an enormous amount of money, is part of what we're going to need to do to do a full transition.
01:13:40Obviously, we are confronting, as the governor said, some incredible challenges in this new administration.
01:13:47But what some of the money is going to be designed for is expanding geothermal, heating and cooling for building systems, more EV charging infrastructure, and we will lock down the detail as we move forward.
01:14:03But we feel pretty good about where that's going to go because they're investments we know we need to make.
01:14:08So it's not good money after bad.
01:14:11These are things that are going to help us into the future.
01:14:13So do you think it's enough, though, to really respond to this moment to keep New York on track to meet some of its targets?
01:14:19To keep New York on track, I do believe that it is enough because you're talking about a lot of projects that will still take us time to get into the ground.
01:14:26Mm-hmm.
01:14:27And waivers for electric school buses?
01:14:30That's moving forward in the budget.
01:14:32All right.
01:14:33Is it going to spend a billion dollars for middle class tax cuts?
01:14:36Pardon me?
01:14:37Is it still a billion dollars for middle class tax cuts?
01:14:40Hell yes.
01:14:41Oh, yeah.
01:14:42We are cutting middle class taxes.
01:14:46The child tax credit, I think, is going to be an extraordinary change to help families, particularly those that are struggling, lift them out of poverty.
01:14:53And it all adds up.
01:14:55And if anybody questions whether or not an inflation rebate is a good idea, go with me to a grocery store and walk and push a shopping cart as a mom is putting everything from eggs to diapers and bread and tuna fish in the cart.
01:15:09And just when you say, we're going to put more money back in your pockets, how do you feel?
01:15:13And all of a sudden there's just a sigh of relief.
01:15:15You know, thank you for understanding us.
01:15:16Thank you for, you know, trying to just help us as we're getting through the stresses of everyday life.
01:15:20And it's something I can relate to from my early years as a mom.
01:15:24And I just have this empathy toward all the parents.
01:15:26So I think there's, as much as it's easy to criticize everything here, it was all focused on helping lift up New York families.
01:15:33And I'm really proud of this budget.
01:15:35Again, it exceeded all expectations in terms of the policies that were questioned by many that couldn't really get done.
01:15:42And we worked so hard with our partners in the legislature, Andre Stewart-Cousins, the Majority Leader, and Carl Hayser, the Speaker.
01:15:50We really worked hard together to deliver for New Yorkers.
01:15:52Thank you very much, everybody.