Game On

Hochul Highlights Affordability, New York's Costly Issues, Battle Over SALT

Author

Jack O’Donnell
January 13, 2025

Good morning from Albany, New York, where the 2025 legislative session officially kicked off last Wednesday and will shift into high gear this week with Governor Kathy Hochul’s State of the State Address.

Last week, legislators were sworn in, reelected Majority Leader Andrea Stewart-Cousins and Speaker Carl Heastie, and received their committee assignments. There was quite a turnover among committee chairs in both the Senate and Assembly.

New Senate Committee Chairs: 

  • Codes Committee: Zellnor Myrie

  • Insurance Committee: Jamaal Bailey

  • Elections Committee: Kristen Gonzalez

  • Ethics Committee: Shelley Mayer

  • Cities 2 Committee: Chris Ryan

  • Consumer Protection Committee: Rachel May

  • Disabilities Committee: Patricia Fahy

  • Procurements and Contracts Committee: April Baskin

  • Libraries Committee: Siela Bynoe

New Assembly Committee Chairs:

  • Speaker Pro Tempore: Pamela Hunter

  • Ways and Means Committee: Gary Pretlow

  • Racing and Wagering Committee: Carrie Woerner

  • Small Business Committee: Marianne Buttenschon

  • Tourism Committee: Ron Kim

  • Aging Committee: Rebecca Seawright

  • People with Disabilities Committee: Angelo Santabarbara

  • Libraries and Education Technology Committee: Robert Carroll

  • Banks Committee: Clyde Vanel

  • Oversight Committee: Jonathan Jacobson

  • Corporations (MTA) Committee: Edward Braunstein

  • Cities Committee: Patrick Burke

  • Mental Health Committee: Jo Anne Simon

Leadership in both Houses addressed their respective conferences and the media, with the overriding message being a desire to address affordability concerns. Deputy Senate Majority Leader Mike Gianaris stated there would be "a dedicated effort to continue to make New York, which is a very expensive place, easier for people to provide for their families. We've heard loud and clear from the public that things have gotten way too expensive, whether you're talking about child care, health care, or education for their kids. It's hard to make ends meet."

Heastie pledged that his conference will be focused on bringing down costs, saying, "Since I first became speaker, our focus has been on ensuring that New Yorkers have the tools and resources they need to thrive. One thing we keep hearing over and over again is that the cost of living remains too high." One way Heastie hopes to provide relief is by paying down New York’s pandemic-era unemployment insurance debt, which is currently being paid by individual businesses. In his opening remarks to the Assembly, Heastie said, "New York still owes more than $6 billion to the federal Unemployment Insurance Trust Fund. We must find a way to eliminate the money owed to reduce the burden on small businesses. In doing so, we can also increase the benefit to workers who become unemployed so that they can continue to support themselves and their families."

Affordability is set to be the focal point for Hochul when she delivers her State of the State address on Tuesday at 1 p.m. from the Hart Theater at The Egg Empire Plaza. The policy proposals Hochul has unveiled so far as part of her "Affordability Agenda" include an "inflation refund" for over 8.5 million New Yorkers and an expansion of the Child Tax Credit up to $1,000 per child. Hochul also announced a plan to provide universal free breakfast and lunch to students in New York, regardless of income.

In a statement, Hochul said, "The research is clear: good food in the lunchroom creates good grades in the classroom. I'm proposing free school meals for every student in New York—giving kids the sustenance they need and putting more money back in parents' pockets." Removing the income requirement will expand the free meal program to roughly 300,000 additional students and, according to estimates from Hochul’s office, the program will save families $165 a month per child in grocery costs.

N.Y. Assembly Speaker Thinks Raising Revenue Will Be on the Table in 2025

Lawmakers still have plenty of hot-button and potentially costly issues to address, including the state’s lagging progress on self-set climate goals and the long-term fiscal health of the Metropolitan Transportation Authority (MTA) after the Legislature rejected the proposed 2025-2029 Capital Plan over funding concerns. Even with the revenue generated from congestion pricing, which officially went into effect last Monday morning, roughly $33 billion of the $65 billion capital plan does not have a listed funding source. Assembly Speaker Carl Heastie did not endorse a tax increase to fund the MTA, but conceded there are not many other options for generating the needed revenue, stating, “Usually there are very few ways to raise revenue, fees and taxes, but we're not there yet. I’m not saying we’re raising taxes to fund the MTA. I’m not prepared to say that.” Senate Minority Leader Rob Ortt indicated he also has no interest in a tax hike, telling reporters, “We’re doing the congestion pricing, which was supposed to address that, now we have to do taxes too? It just proves that you can’t spend your way to affordability. If you could, we would be the most affordable state in the country.”

New York Has Never Been a State to Back Down

By Senate Majority Leader Andrea Stewart-Cousins

You can tune into Governor Hochul’s State of the State address on Tuesday at 1 p.m. here. 

January 14: State of the State Address
January 21: Final Day for Submission of the State Fiscal Year 2025-26 Executive Budget
February 20: Amendments to the State Fiscal Year 2025-26 Executive Budget are due
April 1: Beginning of State Fiscal Year 2025-26
June 12: Final (scheduled) day of Legislative Session

President-elect Donald Trump, set to be sworn in one week from today, appeared in court virtually on Friday for his sentencing on 34 felony counts of falsifying business records to conceal payments to adult film actress Stormy Daniels. Trump received an unconditional discharge with no jail time, fine, or other penalty, though the conviction will remain on his record.

Trump was sentenced to an ‘unconditional discharge’ in his hush money conviction. Here's what that means.

From the bench, New York State Judge Juan Merchan said he tried to treat this case as he would any other, stating, "Once the doors closed, it was no more unique than the other 32 trials taking place in this courthouse at the same exact time,” but did note that the sentence for someone not in Trump's position might be vastly different. Still, Trump has remained defiant, saying, “the fact is, I'm totally innocent” and later, “It's been a political witch hunt. It was done to damage my reputation, so that I'd lose the election, and obviously, that didn't work.”

Trump was at the Capitol in Washington, D.C., meeting with Senate Republicans to map out a strategy that advances much of his policy agenda through reconciliation, a path that allows Congress to pass bills with a simple majority. Trump has previously said he prefers “one big, beautiful bill” that covers everything from immigration to the tax code to energy policy. Following the meeting, Trump indicated he was more worried about the end result than the process it takes to get there, telling reporters, "We're looking at the one bill versus two bills, and whatever it is, it doesn't matter. We’re going to get the result.” House Budget Chair Jody Arrington (R-Texas) believes one large reconciliation package provides the path of least resistance for the House GOP’s slim majority. Arrington also indicated he and his colleagues are not going to wait around for the Senate to act, saying, “I think as we work up our single package, and as we get it closer to marking it up—which is going to be on a very rapid timeline. And I've already said that I believe we can mark up the budget resolution by the end of February—I'd say, catch us if you can.”

Different factions of the House GOP made trips to Mar-a-Lago this past weekend to pitch the one-bill approach and advocate for their own priorities. One of the groups traveling to meet with Trump is the so-called SALT Republicans, mainly members from blue states including New York, New Jersey, and California who are disproportionately affected by the federal cap on state and local tax (SALT) deductions. One of the plans being proposed would allow married couples to deduct up to $20,000 from their federal income taxes, up from the current $10,000 cap for both single and married filers. Trump has expressed interest in increasing the SALT cap in the past, but budget hawks within the GOP are likely to take issue with providing fiscal relief to blue states at the expense of the federal government. 

Governor Hochul has called on Republicans to support a full repeal of the SALT cap, arguing the $10,000 limit costs New Yorkers $12 billion a year. In a statement, Hochul said, “Republicans have drained billions directly from the pockets of their own constituents, and now it’s time for them to deliver. No excuses. No half measures. It’s all or nothing—New Yorkers deserve a full repeal.” Lawler, not one to let a provocation go unanswered, responded on X, saying, "Kathy—you are the worst Governor in America. New York leads the nation in outmigration because of reckless spending—up $61 billion in just 4 years—and the highest tax burden in the country.”

Farewell to former Lieutenant Governor Mary Anne Krupsak, the first woman elected statewide in New York.

She certainly wasn’t “just one of the boys.” Her independence foreshadowed future LG/Governor relationships. Proud to say she supported Denise O’Donnell for Attorney General in 2006.

NY Governor-elect Hugh Carey & Krupsak address supporters following their victory on November 6, 1974. UPI/Bettmann Archive/Getty Images

Farewell, also, to Peter Yarrow. The Peter, Paul, and Mary singer was a big part of my childhood: Little Jackie Paper sure loved that rascal Puff!

Finally, the latest hot items on the market hail from a hundred years ago, but they tell us a lot about how medicine has evolved.

More than $26 million in rare medical books have sold at auction in the past four years, marking a dramatic increase in demand.

Our Jack O’Donnell predicts a tumultuous political year as he analyzes the policies & power plays facing New York, including:

—>NY’s contentious budget issues

—>State’s fiscal health

—>Impact from the GOP-led Congress & President-elect Trump

Megaphone icon

OD&A News

Senate Transportation at work! Thank you Senator Cooney for visiting Hornell and sharing the Alstom USA story.

Jim Moore from OD&A meets with Pam Hokanson, CEO of our client, Westminster Community Charter School in Buffalo, to discuss the excellent work they are doing with students in grades K-8 and how OD&A can influence discussions in Albany to support their efforts.

New to the NYS Legislature

Tommy John Schiavoni, Democratic State Assembly Member for District 1, brings decades of experience in education, local government, and community service to his new role representing the East End of Long Island, including towns such as Southampton, East Hampton, Shelter Island, and parts of Brookhaven. A lifelong resident of Sag Harbor, Tommy John's roots run deep—his family operated a local plumbing and heating business for three generations, instilling in him a practical approach to problem-solving.

A retired high school social studies teacher, Tommy John spent 32 years educating students in subjects like government, economics, and U.S. history in the Center Moriches School District. He holds a bachelor’s degree in secondary education from SUNY Cortland and a master’s degree from SUNY Stony Brook. Alongside his teaching career, Tommy John served on the Sag Harbor School Board and held leadership roles in local government, including positions on the North Haven Village Board, Southampton Town Zoning Board of Appeals, and the Southampton Town Council.

During his tenure on the Town Council, Tommy John focused on protecting the environment, strengthening the local economy, and supporting the arts and education. His pragmatic approach and dedication to addressing community needs earned him a reputation as a problem solver and advocate.

Beginning in January 2025, Tommy John will bring his extensive experience and practical solutions to Albany as a member of the New York State Assembly, advocating for policies that enhance the well-being of Assembly District 1 and its residents.

Do you agree with President Biden's recent statement that he could have beaten Trump in the 2024 presidential election, but was unsure if he could complete the four-year term?

Login or Subscribe to participate in polls.

Results of the Last Poll

Do you approve or disapprove of Mike Johnson being reelected as Speaker of the House?

This Day in History

January 13, 1941: James Joyce, widely regarded as one of history’s greatest writers, dies in Zurich, Switzerland, at the age of 58. One of the most brilliant and daring writers of the 20th century, Joyce’s masterpiece Ulysses is ranked among the greatest works in the English language. A collection of his literary treasures resides at the University at Buffalo.

News

Worth a Read

Buffalo Thunders Back as Zillow’s Hottest Market for 2025

This is the first time that a market has held the title in back to back years. Affordability and job growth are key drivers of the competition.