Budget Slog

NY Budget Stragglers, Federal Tax Debate, Remaking Democrats

Author

Jack O’Donnell
April 28, 2025

Good morning from Albany, New York where the budget slog goes on. Last Thursday, before leaving town, lawmakers approved an eighth budget extender to run through tomorrow before spending most of Friday in virtual conferences.

Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins both expressed optimism following a leadership meeting late last week and said they planned to use the weekend to brief their members and receive feedback. Stewart-Cousins offered last week, “I believe by the end of next week we will be passing bills,” while Heastie declared, "We’re getting closer.” There was an additional leaders meeting on Friday morning.

With discovery reform mostly (perhaps even entirely?) settled, negotiations continue on additional policy items—non-fiscal—that have been injected into discussions. At the top of that list is Governor Kathy Hochul’s proposal to create a crime of “masked harassment,” which the Legislature has poured cold water on. Attempts at a compromise that would have seen increased post-conviction penalties also seem to have fallen flat, with Hochul conceding, “We didn’t know whether this would be done in the budget or in session, which some are suggesting may be an option.” The idea of enhancing the penalties for committing a crime while masked has widespread support among New Yorkers, according to a recent Siena College poll. Still, Heastie indicated an agreement on this was not close: “That is probably the furthest thing from having any resolution. We’re trying to figure something out.”

A version of Hochul’s proposal to lower involuntary commitment standards for the mentally ill will be in the final budget, although many lawmakers are not convinced this will change anything. The measure, a reaction to a series of high-profile violent incidents in New York City last year, would allow an individual to be committed involuntarily to a hospital if a mental health professional found that they cannot meet their basic needs, including food, clothing, or shelter. The current standard only allows physicians to intervene if an individual poses an immediate risk to themselves or others. A spokesperson for Hochul said, “Governor Hochul isn't going to sugarcoat the problem or minimize it: it's undeniable that there are individuals struggling with mental illness who are living on the streets and subways. These are our neighbors who deserve compassionate care, not ideological posturing or sloganeerings.” Senator Gustavo Rivera, chair of the Senate Health Committee, sees things differently, declaring, “What the governor originally proposed, it doesn't necessarily augment the ability of people to be removed from public locations. She claims that's what it does, but that's not what it does.” 

State Lawmakers: Late New York Budget Makes Talks a Family Affair

The late state budget is testing lawmakers' ability to balance work and family as most schools across the state held spring break over the last two weeks—forcing several policymakers to bring their children to Albany as spending negotiations continue. Read on!

Outside of those items, lawmakers are still debating an early release program for certain inmates in order to address chronic understaffing, an issue that was exposed and exacerbated during the 22-day prison guard strike earlier this year. Controversially, the proposal would apply to some violent offenders, although those with murder, rape, or other sex convictions would not be eligible. Hochul has also floated lowering the minimum age for corrections officers to 18 to help fill the estimated 4,000 openings across the state, offering, “We put guns in their hands in a foreign country and expect them to have the maturity of someone many years older. I certainly think we can put confidence with training and supervisory activity and bring them along at age 18.”

The Legislature has landed on a payroll mobility tax to help raise revenue for the Metropolitan Transportation Authority’s (MTA) 2025-2029 $68 billion Capital Plan. Speaking to reporters on Thursday, Heastie said, “About a month ago, we put a pin in it. I think we can wrap that up in 10 minutes.”  

Other late-breaking issues being pushed by Hochul include wider responses to the Trump Administration, addressing various Executive Orders, expanding powers for New York’s Attorney General, and some broadened financial decision-making regarding cuts and rescissions as necessary in response to potential federal budget cuts.

Whenever the budget is eventually squared away, lawmakers will have an abbreviated window to pass standalone legislation before they gavel out for the year on June 12th. One proposal that reportedly has the votes to pass the Assembly (nearly a decade after first being proposed) is a bill to legalize medical aid in dying. The assisted suicide measure would permit a terminally ill, mentally competent adult with less than six months left to live to request a doctor’s help in ending their life. If Assembly Speaker Carl Heastie does bring the measure to the floor, it would be the first time it has reached either the Senate or Assembly for a full floor vote since being introduced in the 2015-2016 Legislative Session.

Senator Brad Hoylman-Sigal, the bill sponsor in the Senate, said, “Everyone should have the right to choose for themselves. If they are of sound mind and want to end unbearable suffering with no prospects of recovery, they should be able to choose the way they die.” The New York State Catholic Conference, the main opponents of the legislation, said in a statement, “Our state will be telling its citizens that some lives, perhaps where there has been a loss of autonomy or a disability, are not worth living. We pray that the Legislature reconsiders this disastrous public policy, and we call on Governor Hochul to exercise her veto authority should the bill come to her desk.” When asked about the legislation earlier this year, a spokesperson for Hochul said she would “review the legislation if it passes both houses of the Legislature.”

Another bill that has re-entered the spotlight is the New York for All Act, legislation that would create a state-wide standard for how city and state agencies interact and share information with federal immigration officials. Some of the state’s most influential unions penned a letter to Hochul, Heastie, and Stewart-Cousins, calling on them to consider the legislation in the wake of the Trump Administration’s crackdown on immigration, writing, “This bill represents the strongest action that New York State can take to keep immigrants together with their families and ensure that the efforts at mass deportation do not tear thousands of New Yorkers from their communities. New York for All is designed to prevent immigrants from being swept into the ever-expanding deportation dragnet by ending collusion between local police and Immigration and Customs Enforcement (ICE).” The bill, sponsored by Senator Andrew Gounardes and Assemblymember Karines Reyes, has failed to gain traction in past sessions, and Hochul has so far avoided picking fights with the Trump Administration over immigration enforcement. The Trump Administration's suit against Rochester will further fuel this push.

Trump Administration Sues Rochester Over its Sanctuary City Policy

The complaint alleges the policy of not aiding federal immigration enforcement, which it has had since 1986, is illegal.

Other bills to keep an eye on include a pair of climate-related measures. The Climate Corporate Data Accountability Act would require mandatory greenhouse gas emission disclosures for businesses in New York with over $1 billion in revenue and create an emissions reporting platform where the disclosures will be publicly accessible. The bill is modeled after legislation in California, and advocates have argued that the legislation provides decision-makers with a more complete picture of the emissions landscape in their states. Lawmakers are also pushing for the Packaging Reduction and Recycling Infrastructure Act, a bill that would require the state to reduce single-use plastic packaging by 30% over the next twelve years. Senator Pete Harckham, the Senate sponsor of the bill, said, “This legislation represents the strongest Extended Producer Responsibility framework in the nation. It will reduce waste, plastics, and toxins, contributing significantly to a cleaner, more sustainable environment.” The bill passed the Senate last year and appeared poised to pass the Assembly before Hochul’s eleventh-hour proposal to pause congestion pricing dominated the end of the Legislative Session. Expect plenty of other surprises, as well as strong pushes by progressives in the Legislature to react to (or counter) actions by the Trump Administration.

One thing that will finally fade from the public eye is the saga of serial fabulist George Santos, which came to a close last week. The disgraced former Republican congressman was sentenced to 87 months in prison after pleading guilty to federal fraud charges last August. Santos’ attorneys had asked for the mandatory minimum of two years, but U.S. District Judge Joanna Seybert went with the prosecution’s recommendation, citing his “flagrant thievery.” Santos must report to prison by July 25th.  

In Washington, D.C., Congress returns this week from an April recess; House committees are scheduled to begin markups on their individual portions of the GOP mega bill. House Speaker Mike Johnson has set an aggressive timeline, telling his conference he wants “to get it done by Memorial Day.” That could prove easier said than done, especially as lawmakers get down to the brass tacks of reconciling the differences between the House and Senate’s respective budget blueprints. Senate defense hawks won an early victory with reports that the bill will include an additional $150 billion for the Pentagon, abandoning the House’s lower defense spending target.

Johnson provided some insight into the path forward on taxes, ruling out a marginal tax increase on the wealthiest Americans. The proposal, also known as the ‘millionaires’ tax’, has gained some traction among more populist Republicans who are looking to offset the costs of the bill without diluting social safety net programs, which many of their constituents rely on. Some congressional Republicans have estimated that the millionaires' tax could generate $300 billion in new revenue by simply allowing the income tax rate for the highest-earning Americans to revert from 39.6% to 37%. When asked about the proposal, Johnson said, “We have been working against that idea. I’m not in favor of raising the tax rates because our party is the group that stands against that traditionally. There were lots of ideas thrown out on the table along this process over the last year, but I would just say for everybody, just wait and see.” 

Democrats Face Growing Calls for Generational Change

Calls for generational change among Democrats are growing louder as the party seeks to chart a path forward going into the 2026 midterms.  

While Republicans try their hand at governing, Democrats are largely focused on generational change as they hope to make the party more competitive in 2026 and beyond. Senator Dick Durbin (D-Illinois.) announced he will be retiring at the end of his term, opening his Senate seat, leadership of the Judiciary Committee, and his position as Whip to a new generation of Democrats. Durbin is the fourth Democratic Senator to announce his retirement, joining Gary Peters, 66, in Michigan; Tina Smith, 67, in Minnesota; and Jeanne Shaheen, 78, in New Hampshire. In the House, 14-term Democratic Rep. Jan Schakowsky of Illinois announced she will retire at the end of her term after 26-year-old influencer Kat Abughazaleh announced a primary challenge against her. Younger Democratic activists have been pushing longtime incumbents to “pass the torch” to a new generation of leadership, including 25-year-old DNC vice chair David Hogg, who also pledged $20 million to candidates who challenge “ineffective, asleep-at-the-wheel” Democrats in solidly blue districts. Those comments drew strong criticism from newly elected DNC Chair Ken Martin, who maintained, “As I’ve said to [Hogg], if you want to challenge incumbents, you’re more than free to do that, but just not as an officer of the DNC, because our job is to be neutral arbiters. This is not about shielding incumbents or boosting challengers. It’s about voters’ trust in the party.” Meanwhile, newly elected Sen. Elissa Slotkin of Michigan offered her own aggressive war plan (although her definition of success—holding the 47 Democratic seats in the Senate—left some activists nonplussed) that includes changing the way Democrats communicate with voters to reject identity politics and project strength, that is, stop being “weak and woke” and emulate “the goddamn alpha energy” of Detroit Lions coach Dan Campbell. This fight, and the larger generational fight taking place in the Democratic Party, will only intensify as midterm elections draw closer. 

Today is also the Canadian federal election. For the past few years, the governing Liberal Party appeared to be heading for defeat as Canadians tired of Prime Minister Justin Trudeau and shared the same anger with inflation and rising costs as most Americans. However, today the party is on the verge of a remarkable comeback, one that would buck the recent global trend of incumbent parties losing elections.

After replacing Trudeau, Liberal Leader Mark Carney has emerged as not just a viable alternative but the favorite. Carney has also successfully distanced himself from his predecessor. According to recent polling, a plurality of voters, 46 percent, say that Carney “mostly represents something different from Justin Trudeau’s leadership.”

Canada is Gearing Up For Federal Election. Here's What's at Stake

Carney is also getting a strong assist from President Trump. Throughout the five-week federal election, Trump has slapped a 25 percent tariff on steel and autos, publicly mused about making Canada a “51st state” and mocked the country by saying it would “cease to exist” without the U.S. Carney has built his campaign on being a tough negotiator and counterweight to Trump while Conservative Party leader Pierre Poilievre has been painted as a Trump ally.

Who is Canada's Conservative leader Pierre Poilievre?

Canadian Conservative leader Pierre Poilievre is seeking to bring the Liberal Party's nine years in power to an end.

All is not lost for Conservatives, of course, voters who say that the cost of living and inflation are still the top issue still lean Conservative, but Carney wins voters who consider Canada-U.S. relations to be the top issue. Trump has untied Canada’s center and left in particular, causing a drop-off in support for the far left NDP (who are now in danger of losing official party status in the next Parliament) as their voters move towards the Liberals.

Of course, the polls could be wrong, and the results are determined by actual turnout, and anything can happen on any given Monday. Nonetheless, it is a remarkable turnabout. We will be watching.

Congratulations to the Liverpool Football Club!

They clinched the 2024-2025 Premier League title yesterday.

You’ll Never Walk Alone. 

Finally…

All the recent focus on Greenland is drawing attention to this delicious, pricey export. 

Jack talks NY Budget and more in his Monday Morning Minute podcast:

🎙️Bonus revenue for NYS

🎙️New moves in NY governor’s race

🎙️Federal budget cuts and impact on NY

🎙️Favorite read about Trump tariff impact on farmers

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OD&A in the News

Proud moment for our Jim Moore!

OD&A’s VP & Policy Director has been recognized as a 2025 Trailblazer in Clean Energy by City & State NY for his work advancing renewable resources. ⚡️

City and State NY writes: "A former Southern Tier deputy regional director for U.S. Senate Minority Leader Chuck Schumer, Jim Moore brings invaluable experience and insights to his clients at the Albany lobbying firm O’Donnell & Associates. Among Moore’s policy specialties are clean energy, cryptocurrency, gambling, financial services, and technology. Within the energy industry, Moore has helped shape policies related to battery storage systems, demand response and grid resiliency, changes to the state building and fire codes related to clean building systems, as well as developing the infrastructure needed to support a switch to hydrogen-powered buses."

O'Donnell & Associates also congratulates our clients recognized as 2025 Trailblazers in Clean Energy. We’re proud to partner with them in advancing cleaner, more sustainable energy solutions. Learn more about their important work:

Client News

Town of Tonawanda Urges State Funding for
Critical Raw Water Infrastructure Project to Support a Key Industrial Corridor

Supervisor Joseph Emminger of OD&A client, the Town of Tonawanda, is calling on the state to fund improvements to a raw water supply system that is vital to maintaining and enhancing the River Road Industrial Corridor, which has already been impacted by the closure of the Sumitomo plant.

“The abrupt closure of Sumitomo dealt a severe blow to both its workers and the local economy,” Supervisor Emminger said. “While the State couldn’t prevent the shutdown, backing this project is a critical step to mitigate its impact.” Read the news release here.

Media coverage: The Buffalo News, WIVB, WKBW, WGRZ

Gun Violence & Public Safety: NYC Mayoral Candidate Forum & VIP Reception

Join OD&A client, NYAGV, for its NYC Mayoral Candidate Forum on May 21 at 5:00 p.m. to hear from the candidates about their public safety proposals ahead of the Democratic primary election. The forum will also feature voices from survivors, youth, advocates, and frontline leaders working in community and hospital-based violence intervention programs. Register here!

National Organizations Unite to Prepare Early Childcare Facilities for Rising Incidence of Food Allergies

OD&A client, Kaléo, is a company that passionately pursues meaningful and innovative healthcare products and solutions to empower patients and their families to live fuller, bolder lives. Read more!

New to the NYS Legislature

Assemblymember Andrea Bailey, a Republican, represents New York’s 133rd Assembly District, which includes Livingston County and parts of Monroe, Ontario, Steuben, and Wyoming counties. A lifelong resident of Livingston County, Andrea brings a strong background in public service, private sector leadership, and small-town values to the State Assembly.

Born and raised in Avon, Andrea has lived in Geneseo for the past two decades with her husband, Jon, where they are raising their three children—Morgan, Ryan, and Lyndon. Deeply rooted in her community, Andrea has built her career on a commitment to efficient, responsive government and practical problem-solving.

Andrea was elected to the Assembly in November 2024 with the endorsement of her predecessor, Assemblywoman Marjorie Byrnes. Her eight years of service in the Livingston County Clerk’s Office—where she managed daily operations and contributed to high-level leadership decisions—gave her firsthand experience navigating complex legal processes and addressing the challenges generated by state-level legislation.

In addition to her public sector work, Andrea brings over 20 years of private sector experience in operations, human resources, and service industries. This blend of experience has equipped her with a unique skill set to effectively serve the people of the 133rd District, especially at a time when families and small businesses are facing rising costs and economic uncertainty.

As a mother and community leader, Andrea is focused on lowering the cost of living for New York families. Her priorities include expanding access to affordable childcare, addressing the housing crisis, reducing utility costs, and cutting taxes. She is also committed to shrinking government waste and making smart investments in education and infrastructure.

A staunch supporter of public safety, Andrea believes in holding criminals accountable and ensuring that law enforcement agencies are fully funded to keep communities safe. She is equally passionate about strengthening New York’s small towns and rural economy—supporting local farms, small businesses, and workforce development to sustain the communities that are the backbone of the state.

Andrea’s previous service on the Geneseo Town Board deepened her understanding of how government can work effectively at the local level. In Albany, she is dedicated to applying that experience to champion common-sense policies that reflect the values and priorities of the 133rd Assembly District.

OD&A in the Community

OD&A’s Marc Cohen on LinkedIn: Rochester Mayor Malik Evans’ State of the City Address

Mayor MALIK EVANS’ State of the City address last night was a powerful reminder of what’s possible when leadership is grounded in vision, action, and optimism. His remarks laid out a bold, forward-thinking roadmap for Rochester’s future - one that prioritizes public safety, fuels business growth, expands access to housing and healthcare, and invests in the infrastructure that will support generations to come.

Marc Cohen on LinkedIn: Listen Up!

Had such a fun time with Jesse Cramer and Gabriel Chodak on the Cobblestone Capital Advisors, LLC. “Trusted Partner Podcast” talking about the value of advocacy. We covered how businesses, no matter their size, can have a real voice in shaping the policies that affect them - from local ordinances to federal regulations.

Results of the Last Poll

Are you optimistic that the NY Budget will be finalized this week?

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Do you think New York State should prepare for potential federal funding cuts in the current budget process?

This Day in History

April 28, 1758:

Considered the last “Founding Father” president, James Monroe was born on this date in 1758 into an affluent, slave-owning family in Westmoreland County, Virginia. He served as the fifth president of the United States from 1817 to 1825. Read more.

News

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