Tensions rise in slow budget talks as lawmakers poised to pass third extender

Tension is mounting in Albany as Gov. Kathy Hochul and legislative leaders stubbornly stick to their guns in policy debates to be included in the minimum $263 billion spending plan as lawmakers prepare to pass a third budget extender.

State lawmakers are expected to pass a measure to keep state workers paid and government agencies open through Thursday – the third since leaders blew past the April 1 deadline. There appears to be no end in sight as the governor, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie continue to debate amending the timeline to implement the 2019 Climate Act, potential car insurance reform and other items on Hochul’s affordability agenda.

Lawmakers’ return to Albany appeared as sluggish as closed-door budget talks, with few walking the halls of the Capitol early afternoon. But they’re expected to stay in town for the week, now that Easter and Passover have concluded. 

State Senate Deputy Majority Leader Michael Gianaris said everything remains open and no policy debates were resolved in the last week, stressing how there’s been little compromise from the Second Floor.

“Movement is slow, frustration is growing,” he said in a statement to City & State. “What it will take is flexibility from the executive.”

Hochul's office said leaders have made progress on an immigration package to increase protections from ICE and on updating the state’s environmental review process. But they remain sharply at odds when it comes to her proposal to reform auto insurance.

“Gov. Hochul is willing to be flexible, but she will not back down on lowering costs for New Yorkers,” spokesperson Kara Cumoletti said in a statement. “If Sen. Gianaris is interested in making progress, he should urge his colleagues to support the governor’s efforts to lower auto insurance rates, rather than defending a broken system that benefits the trial lawyers – one of the top donors to the Senate Campaign Committee he controls.”

State senators will pass non-budget bills Monday and Wednesday as negotiations continue, and conference on Tuesday. The Assembly will be in session Thursday to pass a likely fourth extender. Assembly members said it has not yet been determined whether the lower house will convene Tuesday or Wednesday.

Assembly Member Michaelle Solages – chair of the Black, Puerto Rican, Hispanic & Asian Legislative Caucus – said there’s been progress in ongoing budget talks, but the key sticking points will have real consequences for New York families. The Long Island lawmaker backs the governor’s efforts to lower car insurance costs, but is more hesitant to amend the Climate Leadership & Community Protection Act.

“Too many New Yorkers, especially on Long Island, are paying (car insurance) premiums that are simply unsustainable,” Solages said in a statement. “We need practical solutions that bring real relief to drivers while maintaining fairness and accountability in the system. At the same time, we must be clear about what is at stake in these climate discussions. Rolling back the CLCPA puts our communities at a disadvantage. Disadvantaged communities are already paying the price through higher utility bills and the long-standing public health impacts of pollution. Delaying progress only deepens those inequities.”

“To move this budget forward, we need continued good faith negotiations and a clear focus on affordability and equity,” she added. “New Yorkers are feeling the pressure from every direction, and this budget must reflect that reality.”

Lawmakers leading climate talks would not comment on negotiations.

State legislators won’t receive a paycheck until the budget is passed, but several members insist the extra time is worth striking the right balance.

“Rushing to meet a deadline should never come at the expense of getting the budget right,” state Sen. Joseph Addabbo Jr. said in a statement. “Our responsibility is to the people of this state, who are counting on us to deliver viable solutions to address rising costs and overall affordability, not a calendar date. I will support an agreement that addresses affordability and the other challenges our constituents face, even if it takes a little longer to get there.”

Senate Finance Committee chair Liz Krueger continues to recover from a minor stroke and is doing well, according to her office, as staff try to prevent her from working.