Gaveling In

Good morning from Albany, New York where the 2025 New York State Legislative Session begins on Wednesday. You can find the full 2025 session calendar, including key dates, here. 

There was still plenty of business from last session to wrap up in the waning days of 2024. In total, Governor Kathy Hochul signed 678 bills and vetoed 124 bills, with decisions on several major pieces of legislation coming just before the end of the year. For the third straight year, Hochul vetoed the Grieving Families Act, legislation that would expand New York’s wrongful death law to allow plaintiffs to sue for emotional damages. The bill has been strongly opposed by the healthcare industry, especially hospitals and insurers, who contend that an expansion of wrongful death liability would significantly drive-up healthcare costs. In her veto memo, Hochul wrote, “For the third year in a row, the Legislature has passed a bill that continues to pose significant risks to consumers, without many of the changes I expressed openness to in previous rounds of negotiations.”

Other notable vetoes include a bill to establish a Benefits Cliff Task Force to study fiscal cliffs in the state caused by income-based public assistance programs. Senator sponsor Jessica Ramos said in a statement, “We have done so much excellent work with the first mom Governor to expand child care access to more middle class families, which makes this veto profoundly disappointing.” Hochul vetoed this bill along with a number of other bills establishing various task forces or commissions, citing the non-budgeted cost associated with their creation. Hochul also vetoed legislation that would have amended the State Finance Law to require a listing of all exempted and emergency State contracts to be publicly posted. Currently, emergency contracts do not require pre-approval or oversight from the state comptroller. Sponsored by State Sen. Jeremy Cooney and Assembly Member Michaelle Solages, the bill had the support of good government groups as well as state Comptroller Tom DiNapoli, who said he was “disappointed” by the veto. Hochul has said she voted the bill out of a concern that the measure would “impede the State’s ability to deliver services” in a time of emergency. 

Hochul also vetoed a bill that would have expanded prevailing wage requirements to private environmental remediation work under the State’s brownfield cleanup tax incentive program, a priority of organized labor. Hochul’s veto message expressed support for the intention of the bill while expressing concern that the proposed changes would disincentivize participation in a popular state program used for redeveloping contaminated sites. Hochul indicated she will revisit the issue in the coming weeks, writing in her veto message, “I remain open to finding ways to pay workers on BCP projects a prevailing wage, including in future legislation or action in the Fiscal Year 2026 Budget.” 

There were a number of high-profile signings as well, including the Climate Change Superfund Act, which requires past fossil fuel emitters to pay a combined $3 billion annually for the next 25 years. The bill was a major win for climate activists, who argue that the need for a $75 billion fund to finance climate resiliency projects in New York is even more acute given Donald Trump’s imminent return to the White House. Senator Liz Kruger, one of the sponsors of the bill, said in a statement, “Too often over the last decade, courts have dismissed lawsuits against the oil and gas industry by saying that the issue of climate culpability should be decided by legislatures. Well, the Legislature of the State of New York—the 10th largest economy in the world—has accepted the invitation, and I hope we have made ourselves very clear: the planet’s largest climate polluters bear a unique responsibility for creating the climate crisis, and they must pay their fair share to help regular New Yorkers deal with the consequences.” Nonetheless, expect litigation and delays. 

Hochul also signed the Legislative Oversight of Automated Decision-making in Government (LOADinG) Act.

In a statement, Public Employee Federal (PEF) President Wayne Spence said, “We applaud Gov. Kathy Hochul for her efforts to balance all of the promise of artificial intelligence with the understanding that rank and file public employees deliver the actual services that New Yorkers need and expect.” 

On Christmas Eve, leadership in the Legislature flexed some muscle of their own when they formally rejected the Metropolitan Transportation Authority’s proposed Five-Year Capital Plan to cover expenditures from 2025-2029. In a joint letter, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie highlighted concerns about how to fund the plan saying, “The proposed program currently faces a significant funding deficit, generally recognized to be at least $33 billion of the $65 billion proposed total subject to [Capital Plan Review Board] approval, which is a specific concern that needs to be addressed before we can approve the program.” Hochul endorsed the capital plan in November and indicated the burden is now on the Legislature to come up with a fix. Through a spokesperson, Hochul said, “Now that the Legislature has raised these objections to the capital plan, we look forward to seeing their recommendations on which of those projects should be deprioritized and which revenue streams they are willing to propose.” This will be a key issue during upcoming budget negotiations. 

The OD&A Team put together a comprehensive 2025 Albany Preview that dives into the issues and political dynamics that are set to dominate the rest of the year in New York State. Here is a topline overview for some key sectors: 

Undocumented Migrants

In November when asked how she would respond to Trump’s plans for mass deportation, Governor Hochul raised eyebrows amongst many immigration advocates when said she would be “the first one” to call Immigration and Customs Enforcement (“ICE”) to deport undocumented immigrants who break the law in New York State.

Where things go from here are not exactly clear, but Hochul’s statement raises questions in relation to a 2020 law that prevents immigration agents from making arrests in state and local courthouses, and could be a change of course from a 2017 Executive Order signed by former Governor Andrew Cuomo that prohibits state agencies from cooperating with federal immigration authorities or asking about immigration status, as well as New York City’s sanctuary city policies that prevent local law enforcement from working with ICE.

Over the past several sessions, the Legislature has also made support for undocumented immigrants a priority, including the Access to Representation Act to provide migrants the right to counsel in immigration court with accompanying funding as well as Coverage For All—expanding New York’s Essential Plan to cover undocumented immigrants’ healthcare. Access to Representation Act sponsor, and increasingly influential Queens Democratic Assembly Member Catalina Cruz expressed faith in the Governor, “Given the work my office has done with this administration, I have no doubt that these statements lacked context and dimension. I know that she will remain dedicated to advancing the goal of assisting those individuals and families that have come to New York.” 

Criminal Justice Reform 

In December’s Siena Poll, one third of respondents said crime was the top Albany issue. Over the past several years, progressives have had a number of wins on criminal justice reform: from 2021’s HALT Act, which restricts the use of long-term solitary confinement in prisons to 2019 legislation ending the use of cash bail and jail for most cases involving misdemeanors and lower-level felonies—which lawmakers have subsequently revised three times. 

When it comes to the HALT Act, the New York State Correctional Officers and Police Benevolent Association (“NYSCOPBA”) says with several recent high profile incidents the corrections system is at a tipping point. Governor Hochul has said she is looking at every avenue. HALT Act Sponsor and Senate Crime Victims, Crime, and Corrections Committee Chair Julia Salazar said, “We have abundant evidence, and have for many years that solitary confinement is tantamount to torture. We know that it actually causes long-term harm to individuals… If we want to reduce violence in prisons, we should actually insist that DOCCS fully implement the HALT Solitary Confinement Act.” Expect at least the HALT Act to be a discussion in 2025 Legislative Session. 

Meanwhile, the recent death of Robert Brooks at Marcy Correctional Facility likely will open a discussion on other parts of criminal justice policy. Governor Hochul visited the facility at the end of the month and already has proposed a host of measures, including expediting $400 million to install fixed cameras and distribute body-worn cameras in all DOCCS facilities, deploying $2 million to expand DOCCS’ partnership with the Correctional Association of NY (“CANY”), and creating a new dedicated unit on the Future of Prisons in New York State within the Council of Community Justice. 

Housing 

In the past two budget cycles, affordable housing has dominated the conversation. As New York contends with a growing housing shortage, the enacted proposals over the past few sessions have been extensive. Last year’s budget included a major housing deal that included 485-x tax incentive to replace the expiring 421-a tax exemption aiming to stimulate construction of affordable housing in New York City, statewide tax incentives for mixed-income and 100% affordable housing units, and extensive capital funds for municipalities that adopted “Pro-Housing Communities” zoning policies through local resolutions, which subsequently makes capital incentives available to those municipalities through Empire State Development, very much the carrot vs. stick approach to getting localities to update their zoning laws. 

Next to cost of living, affordable housing remains one of the biggest concerns of New Yorkers; with half of respondents in December’s Siena Poll saying that it was one of the top issues in Albany. We expect there will likely be more capital to encourage more municipalities across the state to adopt Pro-Housing Communities resolutions and amendments to local zoning laws, as well as potential expansions of tax incentives. 

Healthcare 

One of the largest cost drivers in New York State’s budget process is Medicaid, which provides healthcare to over 7.5 million New Yorkers. Different parts of the care continuum have consumed most of the oxygen in the past several budget negotiations, and this year we will likely see similar pressures. 

1115 Waiver Demonstration Program 

The State is currently in the second Fiscal Year of the 1115 Medicaid Waiver Demonstration Program, which runs from April 1, 2024 through March 31, 2027. The 1115 Waiver has brought about sweeping changes to Medicaid administration with the goals of increasing health equity and addressing Health Related Social Needs (HRSN). Some of the changes that will be underway in 2025 include regional Social Care Networks (SCN) that will help enrollees navigate unmet HRSN including transportation and housing, as well as Health Equity Regional Organizations (“HEROs”) that will lead the way on innovations to address health disparities in health infrastructure across the State. 

Commission on the Future of Health Care 

Meanwhile, the Governor’s Commission on the Future of Health Care’s first year recommendations were due before the end of 2024. The Commission is a 13-member advisory board that the Governor announced as part of her 2023 State of the State Address tasked with “providing ongoing strategic guidance to transform the health care system in New York State, with a goal of improving access to care, quality of care, and health outcomes.”  The Commission met seven times between November 2023 and November 2024 and the recommendations for year one will focus primarily on Hospitals and Long Term Services and Supports, with the Commission transitioning to other areas of the care continuum, including behavioral health, substance use disorder, and community based care, in subsequent years. Given the timing of the recommendations, it is unclear how many will be implemented in this year’s Executive Budget Proposal when it is released the week of January 20th 

The MCO Tax 

During the Holiday week, the Federal Centers for Medicare and Medicaid Services approved the Hochul Administration’s waiver application for the proposed Managed Care Organization Tax, which was authorized at the eleventh hour in last year’s State Budget Process. The tax on Managed Care Organizations—which was first implemented in California—exploits the Federal/State share system of financing Medicaid, under which the Federal Government pays half (or more in some cases) of a State’s Medicaid expenses. The tax on health plans—skewing toward plans primarily serving low income enrollees in Medicaid—would in effect become a tax on the Federal Government unlocking billions in Federal Share aid in Medicaid… we will have to wait and see how long the scheme makes it under a Trump-appointee led Department of Health and Human Services.

New York Health Act 

While it will not be enacted under this Governor, expect the New York Health Act—which would create a single payer health program in New York—to again be a topic of discussion in the Legislature. The conversation on statewide single payer model could also drive other smaller “single payer” models or “fee for service carveouts,” including the proposed carve out of the Managed Long Term Care program in the Legislature or discussions around a carve out of behavioral health services from the State’s Managed Care model (run by the health plans) into Fee-for-Service programs run by the Department of Health. 

CDPAP & Single FI Implementation in 2025 

The Consumer Directed Personal Assistance Program (CDPAP) dominated budget discussions last year and could again be a major topic of discussion. The Program, which empowers chronically ill or physically disabled individuals to hire and manage their own personal assistance, has grown exponentially since it was enacted in 1995. It currently costs the State $9 billion annually. A proposal in last year’s State Budget to streamline the fiscal intermediary structure goes into effect April 1, 2025. There are almost 700 FIs in the state currently which have been merged into one entity to manage the entire Program. The move has received significant political blowback, including vociferous opposition from Legislators in every corner of the State and a very public push from potential Hochul 2026 Primary Challenger United States House Rep. Ritchie Torres on the ethics of the changes and subsequent procurement. 

Energy & Environmental Conservation 

Earlier this year, the Public Service Commission admitted the State is unlikely to meet a key deadline set under 2019 Climate Leadership and Community Protection Act. In their July biennial review, the Public Service Commission (“PSC”) said that the 70% renewables goal will not be met until 2033 (rather than the 2030 goal in statute). Later in the Summer, Comptroller Tom DiNapoli released a report lambasting the PSC and the New York State Research and Development Authority (NYSERDA) for using out of date data and underestimating the impacts of key dynamics like future cancelled projects placing even the 2033 timeline in doubt. The New York Independent System Operator also warned this summer of major grid reliability concerns unless substantial generating comes online. 

As Governor Hochul implements her affordability agenda, the potential impacts on ratepayers throughout the State looms large. The back and forth of “I told you so” from long time opponents, including the Business Council of New York State, pushing for Hochul to loosen the statutory mandates in the CLCPA and environmental advocates will likely increase in volume this session. “We are dangerously behind on the science-based mandates in CLCPA. It’s time to redouble our efforts, and build a more affordable, healthier, livable future for New Yorkers,” said Senate Finance Chair Liz Krueger. 

While conversations on the future of the grid play out, a number of more specific initiatives will go into effect or be under serious consideration this year that are important to watch as well. 

Cap and Invest Implementation 

The Cap and Invest Program—which was enacted as part of the State Fiscal Year 2024 Budget—is scheduled to go into effect this month. Based on modeling released in 2024, the economy-wide program aimed at reducing GHG emissions while financing future renewable energy development is estimated to raise between $6 and 12 billion annually by 2030, with two thirds or $4-8 billion available for clean energy investments. 

NY HEAT Act 

The New York Home Energy Affordable Transition (HEAT) Act is the top priority of environmental advocates in 2025. The proposal would align the State’s utility regulations with its climate goals: capping energy bills for low/mod income households at 6% of their income, eliminating the “100-foot rule” that mandates subsidized gas hooks ups, and amending rules mandating gas service with the hopes of facilitating transitions to renewable energy to meet the goals of the CLCPA. The bill passed the Senate last year, but advocates are hoping to get it through the Assembly and to the Governor’s desk this session. 

Extended Producer Responsibility (EPR) 

Implementing EPR, the policy that holds producers accountable for the entire life-cycle of their products, including recycling and final disposal, has been an on-going discussion for the past several legislative sessions. Governor Hochul and DEC Leadership, and Legislative Sponsors Senator Pete Harckham and Assembly Member Debbie Glick, all agree there is a need for an EPR program in New York. However, the lack of a three-way agreement—or even a two-way agreement—on the specifics has stopped proposals in both the Budget Process and regular legislative sessions. Governor Hochul proposed the Waste Reduction and Recycling Infrastructure Act in her 2023 Executive Budget Proposal based on feedback received in a series of listening sessions (that wound up falling out of the budget that year), and Senator Pete Harckham and Assembly Member Debbie Glick have a proposal of their own, the Packaging Reduction and Recycling Infrastructure Act. It remains to be seen if stakeholders can reach a three-way agreement this year. 

Transit and Transportation 

2024 was a very chaotic year in transit and transportation policy, transportation leaders hope to shore up some of the disarray in 2025. 

Congestion Pricing 

Financing the MTA 

Compounding pains around the MTA’s 2025-29 Capital Plan… on Christmas Eve, Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins used their position on the little-known Metropolitan Transportation Authority Capital Program Review Board (“CPRB”) to veto the MTA’s $65.4 Billion 2025-29 Capital Plan—which was approved by the MTA Board in September—just a day before the plan would have been approved.

“The proposed program currently faces a significant funding deficit, generally recognized to be at least $33 billion of the $65 billion proposed total subject to [Capital Plan Review Board] approval, which is a specific concern that needs to be addressed before we can approve the program,” the letter from Stewart-Cousins and Assembly Speaker Carl Heastie states. The MTA has 10 days to respond to the letter; however, Heastie and Stewart-Cousins said in the letter they plan to renegotiate that funding in this year’s State Budget process, meaning the presentation of a new Capital Plan could be likely.

Financing non-MTA transit authorities 

Outside the MTA’s service area, authorities are hoping to address long-standing gaps in their capital and operating funding models as well. Non-MTA Transit Authorities are asking for increases to help support growth in services and capital needs across the State as well. The aggregate ask for SFY 2025-26 is a $290 million two-year increase in State Mass Transit Operating Assistance (“STOA”) and a $1 billion five-year capital commitment (with $200 million in SFY 2025-26. 

Gaming

Mobile Sports Betting—enacted in the State Fiscal Year 2022 Budget—has exploded in New York State. Data from the New York Gaming Commission shows a 14.9% year over year increase in player spending, with a record $2.12 billion in revenue in October 2024. Decision-makers have turned toward the next big development: awarding three new commercial casino licenses in the Downstate Region. 

Downstate Casinos 

In November, Governor Hochul vetoed a bill that would have pushed up the timeline for Downstate Casino bids to this past August (though she effectively pocket vetoed that bill when the deadline passed in August). The current deadline for bids is June 2025 with awards expected by the end of this year. The bids will bring a significant revenue windfall, with each bidder paying $500 million per casino license, with proceeds going to the MTA, but Senate Gaming Chair Joe Addabbo noted revenues could be as high as $750 million or $2.25 billion per license. 

iGaming & iPoker 

Senator Joe Addabbo is also leading a statewide conversation on what is next in internet and mobile gaming. Proposed legislation would define online casinos featuring slots, blackjack, roulette, and craps as games of skill, legalizing them in New York State. However, it has become increasingly clear that the legislation faces an uphill battle in three-way negotiations before the State Gaming Commission licenses the three Downstate Casinos. Addabbo introduced narrower legislation legalizing internet poker in May of last year in hopes maybe the more specific approach could be successful. 

Infrastructure 

Infrastructure overhaul has been a major topic of conversation over the past several years. As we discussed earlier in this summary, the Bipartisan Infrastructure Law and the Inflation Reduction Act have brought unprecedented funding to New York State over the past several years, providing hope for long-stalled infrastructure priorities across the State like the 33/198 interchange in Buffalo, the I-81 viaduct project in Syracuse, and the interstate Gateway Project in New York City and New Jersey. 

As of Fiscal Year 2023, New York State has received the third-largest appropriation of BIL funds at $10.9 billion. It will be difficult for the Trump Administration to undo any existing projects or commitments, but BIL runs through 2026 and the Administration has broad autonomy for any future grantmaking, as well as any future surface transportation appropriations. It remains to be seen whether or not New York will be able to keep up the pace on infrastructure in SFY 2025-26 and moving forward.

Labor

Combatting Wage Theft & Premium Fraud 

Over the past several legislative sessions, New York State has taken extensive steps to combat wage theft legislatively, especially in the construction industry. This has included enacting legislation allowing prosecutors to charge wage theft as larceny, the Construction Industry Wage Theft Act—which makes contractors liable for wage theft violations by any tier of subcontractor, and contractor registration with the Department of Labor on all public work projects. This session, expect organized labor to push for funding streams that would allow local prosecutors to put these reforms into motion against unscrupulous contractors similar to programs in California around wage theft prosecutions and Workers Comp Enforcement. 

Clarity Around Prevailing Wage and the Definition of Public Work

Organized labor has fought the past several Legislative Sessions for better enforcement and clarity surrounding prevailing wage requirements in Labor Law 224-a—which requires that a construction project with at least $5 million in project costs when receiving at least 30% public funds, must pay prevailing wage to construction workers. Enacted in 2020, it was a significant win clarifying the definition of public work includes private projects receiving public subsidies. However even with significant improvements to the Law, ambiguities and inconsistent enforcement still allow many contractors across the State to find loopholes around the definition of public work, thus undercutting prevailing wage.

Organized labor is also expected to take aim at the Public Wage Subsidy Board, which is tasked with determining whether projects qualify as “public work” under prevailing wage laws. The Board has been criticized for slow decision-making, a lack of transparency, and an overly narrow interpretation of public work on a number of projects across the State.

This session expect further legislative reforms to clarify and strengthen the definition of public work, encompassing all projects receiving taxpayer funds or subsidies, as well as potential amendments to the Public Wage Subsidy Board process.

Financial Services & Banking

Governor Hochul’s Executive Chamber, Department of Financial Services Superintendent Adrienne Harris, Hunter, and Senate Banks Chair James Sanders are also grappling with a changing financial services landscape with new financial services technologies (“fintechs”), including Earned Wage Access and Buy Now Pay Later. Progressive Advocates would like to see these fintechs subjected to the State’s Usury Laws, and proposed overarching legislation to do just that, while industry stakeholders are driving discussions to regulate these industries individually utilizing emerging bright lines that have been enacted throughout the Country that would allow for continued innovation to meet unmet consumer needs in the financial sector. 

Cannabis 

New York State’s Adult Use Cannabis Program has been off to a rocky start. The Office of Cannabis Management (“OCM”)’s first Executive Director, Chris Alexander, resigned last June after a bombshell multi-agency report directed by Governor Kathy Hochul’s Executive Chamber found OCM had major problems in administration, licensing operations, and overall operation of the State’s Adult Use Cannabis Program. The State has also faced major challenges with unlicensed sales, as well as a confusing and overly complex licensing and tax structure. 

Last year’s budget included a replacement for the convoluted and heavily criticized potency tax, changing the model to a flat 9% wholesale tax. However, the Governor vetoed legislation sponsored by Senator Jeremy Cooney and Assembly Member Donna Lupardo that would have further simplified the tax code, allowing distributors to file annual returns instead of quarterly. Expect further simplification of the Tax Code to encourage cannabis business development to be a part of this year’s budget process. 

Statewide, stakeholders are also calling on OCM and the Governor to ease the licensing process and speed up the process of getting legal retail businesses on the market. A recent report on New York’s Adult Use Cannabis Market suggested the State’s cannabis market could hit $6 billion in the next two years, supporting 1,000 more retail businesses if the State can effectively crack down on illegal shops and take a measured approach to legal expansion. Currently, the State has 222 licensed cannabis shops; but it could support 1,250-1,350 if even 85% of cannabis sales were made legally. While the Governor’s approach thus far has been to focus on administrative overhaul at the Office of Cannabis Management, we do expect there could be policy proposals coming in this budget and throughout the Legislative Session to ease licensing burdens on applicants and speed up the process, as well as further actions targeting the illegal market. 

Artificial Intelligence 

Governor Hochul and Legislators are just beginning to wrap their heads around the promise and threats of artificial intelligence, and the corresponding legislative bright lines that must be implemented to promote positive use cases while limiting the bad ones. Over the holiday week, the Governor signed the Legislative Oversight of Automated Decision-making in Government (LOADinG) Act—Sponsored by Senate and Assembly Internet & Technology Chairs Kristen Gonzalez and Steve Otis—which will require risk assessments and human oversight of high-risk AI systems used by State agencies. The bill was a priority for data privacy advocates as well as organized labor (led by AFL CIO) who do not want to see public sector workers phased out by the implementation of artificial intelligence systems by state agencies. 

As a part of her 2024 State of the State Address, the Governor also launched the Empire AI Consortium—anchored at OD&A client the University at Buffalo—which will pair a state-of-the-art computing center as well as $400 million in public and private investment (including $275 million in state grant funding). It will bring together entrepreneurs, scientists, philanthropists, and others to make New York the center of future conversations on the development of AI. 

We expect AI to continue to be a topic of conversation in this budget process and legislative session, with future investments to bolster Empire AI and the SUNY/UB/NYS partnership, as well as potential steps to address use cases in private sector AI to mirror the LOADinG Act. 

Data Privacy 

When it was first introduced in 2019, the proposed NY Privacy Act would have been just the second comprehensive data privacy framework in the Country after California’s (and third in the world after the EU’s General Data Protection Regulation, which really kick started the conversation in 2018). In the last six years, nineteen states have enacted comprehensive data privacy laws. In several iterations over that time, New York’s bill also went from being the strongest bill in the Country, primarily because it gave consumers a private right of action, to a framework that is more in line with other states’ enacted frameworks with rights to access, control, and deletion. 

The bill faces an uncertain path this session. Longtime thought leader Senate Consumer Protection Kevin Thomas did not run again last year, and Assembly Sponsor Nily Rozic has not indicated her plans for the bill. Nonetheless, these frameworks are becoming the norm for states across the Country and we expect New York to take the plunge eventually.

Albany insiders expect the data privacy conversation to be slower until decision makers agree on a path forward for the NY Privacy Act. However, biometrics—including facial recognition—could be an exception to that rule, with legislation limiting law enforcement as well as commercial use of facial recognition always being front of mind for the NYCLU and other privacy and civil rights advocates. 

Higher Education 

That said, the system is at the center of several strategic areas of growth for the State, including the newly designated federal Tech Hub, and will need to continue to fund that growth. Over the past few years, SUNY has fought for tuition flexibility to allow the system to meet growing programming and research—including the aforementioned Empire AI Consortium—at institutions across the State. However, with the Legislature again unlikely to agree to any flexibility around tuition, it is likely that SUNY will again push for substantial operating aid as well as capital investment in this year’s budget process. 

SUNY will also once again push for debt relief and investment in the SUNY hospital system—which includes the hospitals at SUNY Upstate & Downstate, Stony Brook, and the Jacobs School of Medicine at the University at Buffalo which is the primary healthcare workforce development engine in Western New York. 

When it comes to the State’s private institutions, with three closures in the past several years—Wells College, Cazenovia College, and the College of St. Rose—and several more institutions in a state of financial crisis, private institutions across the State will fight hard for aid in the programs that can bring more students to private institutions. Some of the asks we expect from private institutions this session include key changes to the tuition assistance program, including increasing the income limit, maximum and minimum awards, increasing funding in key opportunity programs, and increasing Bundy Aid to private institutions. 

P-12 Education 

The Board of Regents December meeting highlighted several education priorities for the State Fiscal Year 2025-26 Budget Process. The Board of Regents called for a nearly $2 billion increase in State Aid for the 2025-26 school year—providing schools with a total of $37.6 billion. The requested increase comes just about a month after the Rockefeller Institute on Government issued a 300-page report on Foundation Aid. Foundation Aid has been an on-going fight and the report on how to fix the formula (which is currently based on decades old data) was commissioned as a part of last year’s budget agreement. However, while the report has a number of recommendations, State Education Department (“SED”) Commissioner Betty Rosa was clear that there is a lot more work to be done this year. “Recommendations are just that: recommendations. It stops short of the modeling, and we’ve got to be crystal clear on this: The devil’s in the details of the modeling.”

SED will also go to the Governor with a request of $2.3 million in funding to implement new high school graduation requirements. Starting in School Year 2027-28, students will no longer have to pass Regents’ exams to get their high school diploma. Over the next five years, SED expects to spend roughly $11.5 million for staff and other support to develop the new measures. 

Finally, educators and school districts are preparing for the Governor to roll out a phone-free schools initiative in this year’s Executive Budget Proposal. While the specifics are still being ironed out, the Governor will definitely be including a proposal that provides statewide guidance and support to districts in implementing Phone-Free Schools programs to keep cell phones out of classrooms. The initiative has been a major priority of NYSUT and School Administrators alike. The Governor hosted a statewide listening tour this summer which culminated in the Disconnected Conference in the Fall. 

-Jack O’Donnell

OD&A News

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January 6, 2021: On the afternoon of January 6, 2021, a mob of President Donald Trump’s supporters descend on the U.S. Capitol, attempting to interfere with the certification of electoral votes from the 2020 presidential election.

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