New York State's Budget Talks: What to Expect
March 17 2018 - 10:42AM
Dow Jones News
By Mike Vilensky
Gov. Andrew Cuomo and state lawmakers will convene in Albany
Monday for two weeks of budget negotiations to meet an April 1
deadline.
The annual talks for a roughly $160 billion spending plan have a
political importance this year ahead of gubernatorial and
legislative elections in the fall, analysts said.
"It's something they can point to that shows a level of
efficiency and concern for the taxpayers," said William Cunningham,
a Democratic strategist and former aide to Gov. Hugh Carey.
As in past years, the spending plan is not purely a monetary
package because Mr. Cuomo and lawmakers yoke their political
priorities to its passage. For Mr. Cuomo, a Democrat, the budget
marks an opportunity to bolster his progressive bonafides before he
begins campaigning for re-election on the heels of a guilty verdict
against a former senior aide. All 213 legislative seats are also up
for grabs in November.
Negotiations are expected to get tricky. Senate Deputy Majority
Leader John DeFrancisco, a Republican, is running against Mr. Cuomo
and is expected to drew a hard line against some of the governor's
proposals.
Here are some of the issues that will be at the top of
talks:
Taxes
Mr. Cuomo has called for changes to the state tax code that he
says could offset the impacts of the new GOP-backed federal tax
law. He proposes replacing part of the state's income tax on
individuals with an equivalent payroll tax on employers.
Earlier in March the Assembly's Democratic majority said it
largely accepts Mr. Cuomo's plan, but the Senate's Republican
majority has remained cool to an idea that attacks a law pushed by
their national counterparts.
As the marquee item of Mr. Cuomo's budget proposal, the tax
overhaul is expected to take up a lot of time in negotiations.
Transportation
Mr. Cuomo has said he would back a plan to charge Manhattan
motorists fees at peak hours, an effort to reduce congestion and
raise revenue for public transportation amid a crisis of subway
problems in New York City. But he has not voiced full-throated
support for a particular pricing proposal, even as the idea has
gained steam with advocates and lawmakers.
The Assembly recently proposed a plan that would only fine taxis
and ride-sharing vehicles; the Senate has said it is open to
discussions but hasn't gotten behind any congestion-pricing
plan.
A panel of transit leaders assembled by Mr. Cuomo, called Fix
NYC, expressed disappointment in the Legislature over the issue,
saying it will be "demanding a more serious response" to the city's
traffic and transit problems in the coming weeks.
New York City Housing Authority
The governor has recently been highlighting problems within the
city's public housing, a political vulnerability for his longtime
rival Mayor Bill de Blasio.
Mr. Cuomo's administration is calling for an independent monitor
of the housing authority, managerial changes within the agency, and
a new, detailed spending plan in exchange for $200 million in state
money. The Assembly supports the funding but is more closely allied
with Mr. de Blasio, who has defended NYCHA leaders and management.
The Senate has said it is "open to discussing" measures to
help.
Assemblyman Daniel O'Donnell, a Democrat, said the Cuomo
administration budgetary offer is inadequate and expressed
reservations about any strings attached to the money. "Let's just
fix it and stop trying to assign blame," he said.
Sexual Harassment
Mr. Cuomo and legislators are largely in agreement on a measure
to end taxpayer settlements for sexual harassment in state
government, but questions remain about who will be included in
talks on the issue.
Mr. Cuomo's office recently said it will include Sen. Minority
Leader Andrea Stewart-Cousins in the negotiations, which would add
a woman to the otherwise all-male talks, which include three
legislative leaders and Mr. Cuomo. But Ms. Stewart-Cousin's
spokesman said she hasn't heard from the governor yet. "She would
add a powerful voice to what has always been just men," he
added.
Write to Mike Vilensky at mike.vilensky@dowjones.com
(END) Dow Jones Newswires
March 17, 2018 10:14 ET (14:14 GMT)
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