[ THEME MUSIC ] >> WELCOME TO THIS WEEK'S EDITION OF "NEW YORK NOW."

I'M SHANTEL DESTRA.

NEW YORK STATE LAWMAKERS HAD A ONE-DAY DELAY RECESSION THIS WEEK BECAUSE OF A FIERCE WINTER SNOWSTORM THAT HIT THE COUNTRY AND MUCH OF THE NORTHEAST.

IN PREPARATION, GOVERNOR KATHIE HOCHUL DID ISSUE A STATE OF EMERGENCY AS COUNTIES ACROSS NEW YORK EXPERIENCED ANYWHERE FROM 6 TO 18 INCHES OF SNOW OVER THE WEEKEND.

ONCE LAWMAKERS MADE THEIR WAY BACK TO THE STATE CAPITAL FOR SESSION ON TUESDAY, THINGS REMAINED BUSY THROUGHOUT THE WEEK.

SENATE DEMOCRATS PASSED A ROBUST LEGISLATIVE PACKAGE AIMED AT STRENGTHENING REPRODUCTIVE HEALTH ACCESS IN THE STATE.

ON THE OTHER SIDE OF THE AISLE, SENATE REPUBLICANS HELD A PRESS CONFERENCE TO SOUND THE ALARM ON THE HIGH COST OF LIVING IN THE STATE.

MEANWHILE ADVOCATES ALSO MADE THEIR VOICES HEARD THROUGHOUT THE CAPITAL TO RALLY FOR INCREASED PROTECTIONS FOR IMMIGRANTS AND AGAINST FEDERAL ICE AGENTS.

THIS WEEK ALSO MARKED THE OFFICIAL START TO PUBLIC HEARINGS ON THE STATE BUDGET.

OVER THE NEXT FEW WEEKS, LAWMAKERS, PUBLIC OFFICIALS AND NEW YORKERS WILL BE TESTIFYING AT THE STATE CAPITOL TO VOICE THEIR PERSPECTIVE ON THE GOVERNOR'S PROPOSED BUDGET AND TO HIGHLIGHT THEIR TOP PRIORITIES.

AT THE SAME TIME, THE NEW YORK STATE BUDGET DIRECTOR, BLAKE WASHINGTON, IS RESPONSIBLE FOR DEVELOPING AND EXECUTING THE STATE'S FINANCIAL PLAN.

THE DIRECTOR PLAYS A KEY ROLE AS THE GOVERNOR AND LEGISLATIVE LEADERS NEGOTIATE THE STATE BUDGET TO MEET THAT APRIL 1ST BUDGET DEADLINE.

IN THIS NEXT SEGMENT, DAVID LOMBARDO OF WCNY AND THE NEW YORK PUBLIC NEWS NETWORK CAUGHT UP WITH THE BUDGET DIRECTOR TO DISCUSS THIS YEAR'S EXECUTIVE BUDGET PROPOSAL, STATE REVENUE GROWTH AND FEDERAL FUNDING.

HERE'S THAT CONVERSATION.

[ THEME MUSIC ] >> WELL, THANKS SO MUCH FOR MAKING THE TIME, BLAKE, I REALLY APPRECIATE IT.

>> THANK YOU FOR HAVING ME.

>> I WANT TO START WITH THE WAY THE GOVERNOR IS APPROACHING FOR PAYING FOR THIS BUDGET BECAUSE COMING INTO THE PRESENTATION, THERE WAS AN ANTICIPATION THAT WE WERE FACING A MULTIBILLION DOLLAR BUDGET HOLE FOR THE COMING FISCAL YEAR THAT STARTS APRIL 1, BUT GOOD NEWS.

STATE TAX REVENUES CAME IN MUCH, MUCH, MUCH-- PAUSE FOR EMPHASIS-- MUCH HIGHER THAN ANTICIPATED, SO THE STATE IS GOING TO BE ABLE TO MAKE THAT DEFICIT GO AWAY.

AT THE SAME TIME, THOUGH, WE'RE GOING TO BE SPENDING MONEY ON EDUCATION, HEALTH CARE, THE TWO BIG AREAS IN THE STATE BUDGET, IN A WAY THAT WE DO EVERY YEAR AND I'M CURIOUS.

ARE WE SETTING OURSELVES UP FOR SOME TOUGH CHOICES DOWN THE ROAD BY ESSENTIALLY CONTINUING THE GROWTH IN THESE BIG AREAS WHEN WE ARE USING BASICALLY FOUND MONEY?

WHAT HAPPENS IF THE PROJECTIONS, YOU KNOW, REVERSE THE OTHER WAY AND WE GET LESS REVENUE THAN WE ANTICIPATED?

>> WELL, THE STORY OF THIS BUDGET IS THE FACT THAT OUR ALREADY PROGRESSIVE TAX CODE DID YIELD HIGH-LEVEL RECEIPTS OUTSIZED RELATIVE TO WHAT WE PROJECTED BACK IN APRIL.

IN APRIL-MAY OF LAST YEAR, WE WERE PROJECTING RECEIPTS, A DOWNTURN IN OUR ECONOMY.

THAT'S WHEN THERE WAS SOME OTHER FACTORS OUT OF WASHINGTON-- >> YOU GET A TARIFF.

YOU GET A TARIFF.

>> TARIFFS AND LIBERATION DAY WEIGHED HEAVILY ON OUR PROJECTIONS.

AS YOU MOVED THROUGH THE FISCAL YEAR, THAT DIDN'T COME TO BEAR.

GOOD NEWS FOR NEW YORKERS, RECEIPTS DID IMPROVE.

NOW THE RECEIPTS DID IMPROVE GREATLY AND THAT DOESN'T-- THAT DOES, IN FACT, ALLOW TO US MAKE THOSE INVESTMENTS THAT YOU IDENTIFIED.

WE ALSO HAVE VERY PRUDENT FISCAL MANAGEMENT ON OUR STATE AGENCIES AND CERTAINLY THROUGH THE DIVISION OF BUDGET.

WE MANAGE COSTS THROUGHOUT THE YEAR.

SO I WOULDN'T WANT VIEWERS TO THINK THAT IT'S ALL JUST UPSIDE AND YOU KNOW, WE'RE JUST FUELING NEW COSTS WITHOUT PAYING ATTENTION TO THE UNDERLYING GROWTH IN PROGRAMS.

WE'RE ALWAYS LOOKING FOR WAYS TO FIND THOSE EFFICIENCIES.

THE GOVERNOR INSISTS UPON IT AND THAT FISCAL MANAGEMENT COMBINED WITH THE RECEIPTS ALLOWS US TO MAKE THE MOVES THAT WE DID IN THE GOVERNOR'S BUDGET.

>> WHAT IS THEN THE WAY TO ADDRESS THESE AREAS OF SPENDING IN THE FUTURE IF THERE ARE DOWNTURNS IN THE ECONOMY?

IF PROJECTIONS ARE HIGHER THAN WHAT ENDS UP COMING IN, DOES THAT MEAN WE TAP INTO OUR RESERVES, WHICH WE TYPICALLY THINK OF FOR ONE-TIME EXPENSES, NOT NECESSARILY COVERING RECURRING COSTS LIKE EDUCATION SPENDING, LIKE SUPPORTING OUR HEALTH CARE INDUSTRY?

>> WELL, I THINK RESERVES, GENERALLY SPEAKING, ARE ABSOLUTE LAST RESORT.

A TOOL OF ABSOLUTE LAST RESORT, OR WHEN THEY'RE INTENDED TO FIX PROBLEMS, PUBLIC POLICY PROBLEMS THAT ARE NEAR TERM AS THE GOVERNOR DID JUST LAST YEAR.

SHE PUT $7 BILLION INTO THE UNEMPLOYMENT INSURANCE TRUST FUND TO PROVIDE A BENEFIT TO BUSINESSES AND WORKERS ALIKE.

WE USE RESERVES FOR THAT AND IT WAS A NET POSITIVE FOR ECONOMIC DEVELOPMENT.

WE HAVE RESERVES THAT REMAIN, AND THOSE ARE AVAILABLE TO US ONLY IN THE INSTANCE OF AN ECONOMIC DOWNTURN.

ONLY IN THE INSTANCE OF, YOU KNOW, ABSOLUTE EMERGENCY.

THOSE ARE THE LAST THING YOU WANT TO TOUCH WHEN YOU ARE DOING ANY BUDGET.

THAT'S GOOD FISCAL MANAGEMENT.

THAT'S THE GOVERNOR'S LEADERSHIP, BUILDING IT FROM $4 BILLION OR LESS THAN $4 BILLION WHEN SHE FIRST TOOK OFFICE TO THE NEARLY $15 BILLION AS IT STANDS TODAY.

THE BUDGET THAT WE PUT BEFORE THE PEOPLE AND BEFORE THE LEGISLATURE TWO DAYS AGO DOES NOT TAP INTO THOSE RESERVES, DOES NOT CONTEMPLATE IT.

WE THEN MANAGE THROUGHOUT THE YEAR.

WHEN WE GET INTO NEXT YEAR'S BUDGET, THE GOOD NEWS FOR NEW YORKERS IS THAT SUCCESSFUL REVENUES RETURN IN THE CURRENT YEARS ARE PUTTING A SIZABLE DOWN PAYMENT ON NEXT YEAR'S BUDGET ESPECIALLY IN THE AREA OF CHILD CARE WHERE THERE'S NEW INVESTMENTS THIS YEAR, AND WE WATCH THOSE EXPENDITURES ON AN ANNUAL BASIS AND YOU HAVE TO SIZE YOUR BUDGET ACCORDINGLY.

YOU LOOK AT THE FACTS BEFORE YOU AND ADAPT, AND THAT'S WHAT WE WILL CONTINUE TO DO.

IT'S GOOD FISCAL MANAGEMENT, AND THAT'S WHAT THE GOVERNOR INSISTS UPON.

>> SO HEADING INTO THE BUDGET PRESENTATION, THERE WAS A RECURRING REFRAIN FROM THE GOVERNOR AS WELL AS YOURSELF THAT IF WE WERE GOING TO LOSE ANY FEDERAL DOLLARS, THE STATE HAD LIMITED CAPACITY TO MAKE UP THOSE LOST DOLLARS, GIVEN THE SCOPE OF WHAT THE FEDERAL GOVERNMENT PAYS FOR, GIVEN WHAT THE STATE'S CAPACITY.

NOW THAT WE ACTUALLY HAVE A BUDGET PROPOSAL WHAT WAS OUR CAPACITY TO BACKFILL CHANGES AT THE FEDERAL LEVEL?

ARE THERE AREAS THAT WE WEREN'T ABLE TO BACKFILL?

IF SO, WHERE ARE THOSE?

>> WELL, MANY OF THE FEDERAL CHANGES ARE GOING TO BECOME KNOWN OVER TIME.

>> SURE.

>> &SO OUR BUDGET PROTECTS AGAINST THAT AND PROVIDES-- PROVIDES RESOURCES TO PROVIDE FOR A GLIDE PATH TO GROW INTO THOSE CHANGES.

WE KNOW THEY'RE COMING.

WE, IN THE STATE OF NEW YORK UNDER THE GOVERNOR'S LEADERSHIP, HAVE TO ACTUALLY ADAPT WITH THE RULES AS THEY ARE NOT AS THEY WISH THEM TO BE.

AS YOU SEE OUR BUDGET, ONE OF THE AREAS WE PROTECTED IN NEW YORKERS IN WAS IN THE AREA OF MEDICAID.

WE HAVE A CONSTANT DIALOGUE WITH CMS.

WE'RE WORKING WITH THEM ON A BUNCH OF DIFFERENT THINGS POST HR1 AND ENACTMENT OF HR1 THAT IMPACTED COVERAGE FOR FOLKS THROUGHOUT THE STATE OF NEW YORK.

WE ARE OPTIMISTIC THAT SOME OF THOSE CHANGES WILL TAKE EFFECT SO WE HAVE A BETTER GLIDE PATH TO GROW INTO THE CHANGES, AND THE STATE BUDGET PROTECTS -- IT PROVIDES THAT GLIDE PATH FOR NEW YORKERS SO THERE'S NO-- THERE'S NO ABRUPT ENDING IN COVERAGE AND WE'RE ABLE TO HAVE A SANE DIALOGUE WITH OUR PARTNERS IN GOVERNMENT.

CERTAINLY THE MEMBERS OF CONGRESS ARE CONTINUING TO HAVE THEIR DIALOGUE TO DO WHAT THEY CAN TO SHAPE PROSPECTIVE RECEIPTS TO THE STATE OF NEW YORK FOR ANY NUMBER OF PROGRAMS AND WE'RE GOING TO CONTINUE THAT DIALOGUE WITH THEM.

>> I WANT TO FLUSH OUT THAT POINT A LITTLE BIT MORE.

>> SURE.

>> YOU REFERENCED CMS, BASICALLY FEDERAL HEALTH OFFICIALS THAT CONTROL THE FATE OF GOVERNMENT HEALTH INSURANCE PROGRAM THAT NEW YORKERS WHO MAKE TOO MUCH TO QUALIFY FOR MEDICAID RELY ON.

YOU'RE LOOKING TO DO THIS TRANSITION.

YOU WANT SOME FLEXIBILITY ON FEDERAL DOLLARS.

WHAT HAPPENS AND WE DON'T GET THAT FLEXIBILITY MOVING FORWARD IF THE TRANSITION AWAY FROM THE ESSENTIAL PLAN THAT SOME PEOPLE MIGHT BE FAMILIAR WITH BACK TO WHAT IS THE BASIC HEALTH PROGRAM?

IF THAT ISN'T GREEN LIT BY THE TRUMP ADMINISTRATION, WHAT DOES THAT MEAN?

WILL THAT REQUIRE TAPPING INTO RESERVES IN >> WELL, STARTING WITH THE LAST QUESTION, NO.

AND THE GOVERNOR'S BUDGET, SHE'S TAKEN PRUDENT STEPS TO ENSURE THAT WE HAVE AN ORDERLY TRANSITION.

NO MATTER WHAT, OUR OUTSIDE TRAJECTORY UNDER CURRENT LAW ABSENT CURRENT INTERVENTION TAKES US THREE YEARS OUT TO WIND DOWN EXISTING POOLS AND THINGS OF THAT NATURE.

>> UH-HUH.

>> BUT IN THE CURRENT YEAR'S BUDGET, THE GOVERNOR HAS RESOURCES TO MAKE SURE THAT THERE'S NO ABRUPT LOSS IN COVERAGE AS A RESULT OF ANY ADVERSE DECISION-MAKING PROCESS.

WE DON'T EXPECT, BUT THE GOOD HOUSEKEEPING SEAL OF APPROVAL WHEN YOU'RE DOING BUDGETING, YOU WANT TO MAKE SURE THAT YOU'RE PREVENTING AGAINST THOSE SORTS OF SHOCKS TO THE SYSTEM.

SO THE GOVERNOR'S BUDGET DOES INCLUDE RESOURCES TO MAKE SURE THAT THERE'S-- THERE'S A STATE ABILITY TO PICK UP SOME OF THOSE COSTS IN THE NEAR TERM.

LONG TERM, I THINK THAT THE MEDICAID PROGRAM, NO SURPRISE TO ANYBODY WATCHING AT HOME, IS GOING TO GO THROUGH CHANGES, AND WE'RE GOING TO KNOW AS WE GO FORWARD.

WE'RE GOING TO HAVE TO LOOK AT THE PROGRAM AT LARGE AND ADAPT TO WHATEVER THE FEDERAL GOVERNMENT-- HOWEVER THE FEDERAL GOVERNMENT RULES SHIFT.

THAT'S JUST NOT THE STATE OF NEW YORK.

THAT'S ALL 50 STATES.

EVERYBODY IS GOING TO HAVE SOME LEVEL OF CHANGE.

THINK ABOUT EVEN NEXT YEAR, THERE'S A WHOLE HOST OF CHANGES ON SNAP AND WORK RULE REQUIREMENTS AND AGAIN, THESE ARE THE FACTS BEFORE US.

WE'RE GOING TO MANAGE IT.

THE STATE AGENCIES ARE DOING THEIR LEVEL BEST TO PLAN FOR THOSE ITEMS WHEN THEY START TO ROLL OUT, AND WE'RE GOING TO HANDLE IT RESPONSIBLY AND WE'RE GOING TO HAVE THAT CONSTANT DIALOGUE WITH THE FEDERAL GOVERNMENT TO MAKE SURE THAT EVERYBODY WINS, EVERYBODY'S ABLE TO-- WE'LL MITIGATE THE DAMAGE TO THE NEW YORKERS, BUT THAT WE'RE DOING IT IN A WAY THAT IS-- THAT IS,-THAT REPRESENTS THE BEST OF NEW YORK STATE.

>> SO YOU MENTIONED SNAP AND THINKING ABOUT SNAP AND HEALTH CARE AND CHANGING AT THE FEDERAL LEVEL, THERE HAVE BEEN CONCERNS RAISED ABOUT 9 ABILITY OF THIS CLASS OF NEW YORKER NOPE AS LEGALLY PRESENT IMMIGRANTS AND THEIR ABILITY TO ACCESS A VARIETY OF THE STATE AND FEDERAL GOVERNMENT'S SOCIAL SAFETY NET.

DOES THIS BUDGET DO ANYTHING TO ENSURE THAT THEY AREN'T FALLING THROUGH THE CRACKS, SO TO SPEAK?

BECAUSE THE FEDERAL GOVERNMENT IS CLEARLY INTERESTED IN ENSURING THAT NO UNDOCUMENTED NEW YORKERS ARE ACCESSING CERTAIN PROGRAMS AND THERE ARE CLEARLY RESTRICTIONS WHO CAN ACCESS CERTAIN FEDERAL PROGRAMS.

WHAT ABOUT THAT UNIQUE CLASS OF NEW YORKERS, AS WELL AS, SAY, LEGALLY PRESENT CITIZENS WHO MIGHT BE THE KIDS OF PEOPLE WHO ARE IN THE STATE ILLEGALLY?

>> WELL, THERE'S BEEN LONG-STANDING PROHIBITIONS AGAINST FEDERAL COVERAGE, UNDOCUMENTED PERSONS IN NEW YORK.

THOSE HAVE BEEN THROUGH ALL OF OUR PROCESSES AND WE YIELD TO THE FEDERAL GOVERNMENT AS WE HAVE ALWAYS DONE FOR TIME IN EMMORE YAM, WE ADHERE TO THEIR STANDARDS THERE ARE PERSONS IN THE STATE OF NEW YORK THAT ARE LEGALLY PRESENT AND THAT RECEIVE HEALTH CARE INSURANCE THAT THEY'VE BEEN RECEIVING THROUGH THE STATE OF NEW YORK FOR MANY, MANY YEARS, AND WE'RE DOING OUR LEVEL BEST TO MAINTAIN AS MUCH OF THAT AS WE CAN.

SOME OF THE FEDERAL RULES RELATED TO TPS AND OTHER-- THE STANDARDS BY WHICH THEY HOLD PERSONS IN THE STATES ELIGIBLE FOR-- ELIGIBLE OR INELIGIBLE FOR FEDERAL ASSISTANCE ARE THINGS THAT HAVE BECOME KNOWN OVER TIME, AND WE'RE WORKING THROUGH THAT.

THE GOVERNOR'S CHARGE IS REGARDLESS OF WHO HAS THE COVERAGE TODAY, HOW DO WE MAKE SURE WE DO OUR BEST TO PRESERVE THOSE-- THE COVERAGE THAT WE DO HAVE?

WE KNOW HALF OF NEW YORKERS-- WELL OVER HALF OF NEW YORKERS HAVE SOME FORM OF PUBLIC HEALTH INSURANCE.

>> RIGHT.

>> THEY'RE OUR FRIENDS AND NEIGHBOR.

THEY'RE IN OUR BACKYARD AND PROVIDING THAT COVERAGE IS, FOR AS LONG AS WE CAN, IS EXACTLY WHERE WE'RE GOING TO BE.

>> UNFORTUNATELY, WE'RE GOING TO HAVE LEAVE THINGS THERE.

BLAKE, THANK YOU SO MUCH FOR MAKING THE TIME.

I REALLY APPRECIATE IT AND GOOD LUCK.

>> THANK YOU AS ALWAYS.

APPRECIATE BEING HERE.

[ THEME MUSIC ] >> IN THIS NEXT SEGMENT, WE'LL DIVE INTO THE TOP PRIORITIES FOR NEW YORK CITY MAYOR ZOHRAN MAMDANI, INCLUDING UNIVERSAL CHILD CARE, INCREASED TAXES ON WEALTHY NEW YORKERS AND FREE BUSS IN THE CITY.

GOVERNOR KATHIE HOCHUL AND THE STATE LEGISLATURE PLAY A KEY ROLE IN HELPING OR HINDERING THE NEWLY MINTED MAYOR'S PLANS, ESPECIALLY AS LEADERS APPROACH NEGOTIATIONS FOR THE STATE BUDGET.

OUR ELISE KLINE HAS THAT STORY.

[ THEME MUSIC ] >> ZOHRAN MAMDANI, NEWLY ELECTED NEW YORK CITY MAYOR AND FORMER STATE ASSEMBLY MEMBER, HAS OFFICIALLY BEEN IN OFFICE FOR A MONTH.

EACH LEGISLATIVE TERM, THE NEW YORK CITY MAYOR PLAYS AN IMPORTANT ROLE IN THE POLICY AND BUDGET PROCESS.

CONSEQUENTIALLY, MAMDANI, AS A NEW LEADER COULD HAVE AN IMPACT IN ALBANY AND POSSIBLY ALREADY IS, AS STATE LAWMAKERS AND LEADERS SEEM TO BE FOCUSING MORE HEAVILY ON THE ISSUE OF AFFORDABILITY.

SOME POLITICAL STRATEGISTS SAY THIS COULD BE A YEAR OF MAMDANI.

>> WE'RE IN SUCH A PERIOD OF CHANGE, AND IT'S HAPPENING VERY QUICKLY.

AND YOU KNOW, WE WENT THROUGH A YEAR OF TRUMP CHANGE AND NOW WE'RE ABOUT TO SEE A YEAR OF MAMDANI CHANGE BACKED BY HOCHUL, POSSIBLY THE WHOLE TIME.

>> MANY STATE LAWMAKERS AND LOCAL STATE LEADERS SAY THEY CAN FEEL A CHANGE WITH MAMDANI'S ADMINISTRATION IN CITY HALL.

LIEUTENANT GOVERNOR ANTONIO DELGADO SAYS HE'S HOPEFUL FOR THE PEOPLE.

>> THEY'RE EXCITED ABOUT BOLD TRANSFORMATIONAL CHANGE.

THEY DON'T WANT FOLKS THAT ARE HERE TO PROTECT THE STATUS QUO.

THEY DON'T WANT FOLKS THAT ARE GOING TO NIBBLE AROUND THE EDGES.

THEY WANT TO SEE REAL DECISIVE FOCUS AND ACTION, AND THEY WANNA FEEL THE IMPACT.

>> HE ADDS THAT MAMDANI'S LEADERSHIP HAS PUT FORTH A NEW ENERGY IN THE STATE, ONE THAT HE SAYS STATE LEADERS SHOULD BUILD UPON.

>> WE HAVE A RESPONSIBILITY TO LEVERAGE THIS ENERGY IN A FASHION THAT WILL DELIVER GENUINE IMPACT FOR NEW YORKERS.

SO VERY EXCITED.

>> SOME STATE LAWMAKERS AND CITY LEADERS SHARE THIS SENTIMENT, SAYING THEY ARE EXCITED TO WORK WITH MAMDANI.

>> I CAN'T BE ANY MORE EXCITED FOR MAYOR MAMDANI AND WHAT HE'S BEEN ABLE TO ACCOMPLISH SO FAR, LOOKING FORWARD TO THE REST OF THE TERM AND WORKING WITH HIM TO MAKE SURE THE CITY'S MOVING IN THE RIGHT DIRECTION.

>> I THINK ZOHRAN MAMDANI IS A GENERATIONAL TALENT, AND IT'S REALLY IMPRESSIVE WHAT HE'S GOTTEN ACCOMPLISHED SO FAR, SO QUICKLY, AND I THINK THAT SPEAKS TO HIS INCREDIBLE SAVINESS WITH THE POLITICAL ECOSYSTEM, NOT JUST IN NEW YORK CITY BUT HERE IN ALBANY, SO I'M VERY EXCITED TO WORK WITH HIM AND SUPPORT HIM AND BE HIS ALLY UP HERE IN ALBANY.

>> BUT NOT ALL LAWMAKERS IN ALBANY ARE EXCITED ABOUT WORKING WITH THE NEW MAYOR.

SOME STATE LAWMAKERS ACROSS THE AISLE HAVE CONCERNS, SAYING THEY THINK HE'S TOO FAR LEFT.

STATE ASSEMBLY MINORITY LEADER WILL BARCLAY, A REPUBLICAN REPRESENTING OSWEGO COUNTY, SAYS HE'S POLAR OPPOSITE TO MAMDANI AND IS WORRIED ABOUT THE MAYOR'S POLICIES COMING TO ALBANY.

>> HE TALKS ABOUT A LOT OF FREE STUFF.

IN MY EXPERIENCE, NOTHING IS FREE FOR ANYBODY.

SOMEBODY IS GOING TO HAVE TO PAY THAT BILL ULTIMATELY.

SO HE TALKS ABOUT REVENUE INCREASES THROUGH TAX INCREASES ON THE WEALTHY.

WELL, THEY'RE THE EASIEST ONES THAT CAN MOVE OUT OF TOWN.

>> STATE ASSEMBLY MEMBER MATT SIMPSON, A REPUBLICAN REPRESENTING PARTS OF ESSEX AND WARREN CONTIS, SAYS HE ALSO WORRIES ABOUT COSTS COMING OUT OF ALBANY FOR CITY POLICIES.

>> HE CERTAINLY HAS AN AGGRESSIVE APPROACH TO NEW YORK CITY'S ISSUES, AND IT'S GONNA COST A LOT AND IT'S GONNA AFFECT THE REST OF THE STATE SO WE'RE GONNA HAVE TO SEE WHAT HAPPENS.

>> SOME OTHER REPUBLICAN LAWMAKERS SAY THEY ARE HOPING THE NEW MAYOR MODERATES SOME OF HIS VIEWS.

SOME STATE LAWMAKERS SAY WHILE THEY DISAGREE ON MAMDANI'S POLICIES, IT'S SIMPLY TOO SOON TO TELL.

>> I WASN'T CRAZY ABOUT SOME OF THE ISSUES THAT HE TALKS ABOUT.

I REMEMBER SPEAK TO HIM IN 2025.

BUT TIME WILL TELL.

WE'LL HAVE TO SEE.

IT'S TOO SOON FOR ME TO MAKE A DETERMINATION, BUT YOU KNOW, HE SHORT DANCES AROUND A LOT OF THINGS.

>> SOME LAWMAKERS ADD THAT THEY WILL BE PAYING CLOSE ATTENTION TO THE MAYOR AS CITY POLICIES CAN HAVE A BIG IMPACT ON THE REST OF THE STATE.

>> SO MUCH RIDES ON NEW YORK CITY BECAUSE WHAT HAPPENS IN NEW YORK CITY A LOT FILTERS AROUND THE REST OF THE STATE, SO HOPEFULLY, HE CAN BE A GOOD PARTNER AND WE'LL SEE WHEN HE COMES TO THE BUDGET HEARINGS WHAT KIND OF ASSISTANCE HE'S GONNA PRESS THE LEGISLATURE FOR.

>> WHILE LAWMAKERS ON EACH SIDE OF THE AISLE MAY HAVE DIFFERENT OPINIONS ABOUT WORKING WITH HIM, THE NEW MAYOR'S FORMER ROLE IN THE STATE ASSEMBLY COULD HELP HIM MAINTAIN HIS RELATIONSHIP WITH LAWMAKERS.

>> I THINK HAVING SOMEONE WHO HAS BEEN IN THE LEGISLATURE, NOW IN THE EXECUTIVE IN CITY HALL, IS REALLY AN ASSESS, BECAUSE HE UNDERSTANDS HOW IT WORKS HERE AND CERTAINLY, HE'S ALREADY, I KNOW, HARD AT WORK SERVING NEW YORKERS.

>> HE WAS THERE TWO FULL TERMS.

SO HE CERTAINLY HAS RELATIONSHIPS.

HE KNOWS HOW THIS PLACE WORK.

HE KNOWS THE COMMITTEE STRUCTURE, AND HE KNOWS WHO THE PARTNERS ARE THAT HAVE SHOWN UP AROUND THE AGENDA ISSUES THAT HE CARES ABOUT.

>> ORTEGA SAYS THE MAYOR WILL NEED LAWMAKERS' SUPPORT TO HELP GET HIS POLICIES ACROSS THE FINISH LINE, WHICH MEANS HE WILL NEED TO CONTINUE TO CURATE THEM.

ORTEGA ADDS IT'S A LITTLE TOO SOON TO TELL HOW THE MAYOR WILL DO THIS, BUT HE DOESN'T FORESEE ANY BIG OBSTACLES.

>> ANOTHER IMPORTANT RELATIONSHIP TO MAINTAIN IS WITH THE EXECUTIVE CHAMBER.

GOVERNOR KATHIE HOCHUL TOLD WMHT AT A PRESS CONFERENCE EARLIER THIS MONTH SHE PLANS TO WORK WITH THE NEW MAYOR JUST AS SHE HAS DONE FOR OTHER MAYORAL TERMS.

>> I JUST THINK IT'S PART OF MY JOB NO MATTER WHO'S IN THAT POSITION.

I NEED THEM TO BE SUCCESSFUL.

I NEED TO WORK HARD TO MAKE THE MAYOR OF NEW YORK CITY AND THE MAYOR OF EVERY ONE OF MY CITIES SUCCESSFUL BECAUSE THIS IS AN ECONOMIC ENGINE FOR OUR STATE, AND THERE ARE SO MANY POLICIES THAT WE CAN EFFECTUATE THE QUALITY OF LIFE ACROSS NEW YORK, BUT PARTICULARLY NEW YORK CITY AND I'M FOCUSED ON THAT.

SO FAR THAT SEEMS TO BE WHAT IS HAPPENING.

MAMDANI AND HOCHUL ARE WORKING TOGETHER TO ESTABLISH UNIVERSAL CHILDCARE, WHICH THEY ANNOUNCED EARLIER THIS MONTH.

UNIVERSAL CHILDCARE IS AN ISSUE THE NEW MAYOR CAMPAIGNED ON AND GAINED THE GOVERNOR'S SUPPORT WITHIN EIGHT DAYS OF HIS TERM.

AT A RECENT PRESS CONFERENCE, FOLLOWING THE GOVERNOR'S STATE OF THE STATE ADDRESS, MAMDANI SAID HE AND THE GOVERNOR ARE WORKING TOGETHER TO APPROACH POLITICS DIFFERENTLY.

>> WE ALL KNOW THE ACRIMONY AND THE ANIMOSITY THAT HAVE LONG DEFINED THE RELATIONSHIP BETWEEN CITY AND STATE, AND WE HAVE LONG UNDERSTOOD THAT THOSE WHO SUFFER AS A RESULT ARE NOT THE POLITICIANS BUT RATHER THE PEOPLE WHOSE PRIORITIES ARE NOT PURSUED AND WHOSE INTERESTS ARE LEFT IGNORED.

GOVERNOR HOCHUL AND I ARE INTENT ON CHARTING A NEW COURSE OF COOPERATION.

>> SOME STATE LAWMAKERS, LIKE ASSEMBLY MEMBER BRIAN CUNNINGHAM, A DEMOCRAT REPRESENTING PARTS OF BROOKLYN, SAYS THE GOVERNOR AND THE MAYOR WORKING TOGETHER ON CHILDCARE IS PARTICULARLY ENCOURAGING.

>> IT'S BEEN A REAL PARTNERSHIP.

WE HAVE NOT SEEN THE LIKES OF THIS KIND OF PARTNERSHIP BETWEEN THE STATE GOVERNMENT AND NEW YORK CITY IN A VERY LONG TIME, AND I THINK BOTH THE GOVERNOR'S PRIORITIES AND THE MAYOR'S PRIORITIES FOCUS LAZERLY ON AFFORDABILITY, BUT SPECIFICALLY CHILDCARE.

>> STATE SENATE DEPUTY LEADER MICHAEL GIANARIS, A DEMOCRAT REPRESENTING PARTS OF QUEENS, SAYS WHILE HE THINKS THE MAYOR IS OFF TO A GREAT START, IT'S ONLY BEEN A FEW WEEKS.

HE SUGGESTS IT MAY BE TOO SOON TO TELL HOW THE RELATIONSHIP BETWEEN STATE AND CITY WILL FARE.

>> THE RELATIONSHIP IS GREAT THAT HE HAS WITH THE GOVERNOR, BUT THAT ONLY GOES SO FAR.

I'VE SEEN MAYORS COME IN WHO SUPPOSEDLY HAVE GOOD RELATIONSHIPS WITH GOVERNORS AND THEY SOUR VERY QUICKLY.

BOTTOM LINE IS, IT'S LESS ABOUT THE RELATIONSHIP BETWEEN THEM PERSONALLY AND MORE ABOUT THE AGREEMENTS AND DISAGREEMENTS THEY HAVE ON POLICIES.

>> ORTEGA SAYS WHILE IT IS EARLY, SO FAR THE RELATIONSHIP BETWEEN MAMDANI AND HOCHUL HAS BEEN GOOD, BUT THERE ARE STILL ISSUES, SUCH AS TAXING THE WEALTHY AND FREE BUSES THAT COULD CAUSE TENSION.

>> SO WE'LL SEE.

AS LONG AS HE DOESN'T ROCK THE BOAT WITH HIS NEXT BIG REQUEST OR PUSH, WHICH IS TO TAX THE WEALTHY, AND THAT'S WHERE THE GOVERNOR HAS PRETTY MUCH DRAWN THE LINE.

>> MAYOR MAMDANI, HOWEVER, SEEMS DETERMINED TO PUSH FOR TAXING THE RICH.

?

I'M CALLING ON ALL OF OUR PARTNERS IN ALBANY TO ENSURE THAT WE CANNOT ONLY FUND THE CITY'S DAY-TO-DAY OPERATIONS AT A CONTINUED SCALE BUT ALSO THAT WE CAN FUND OUR AFFORDABILITY AGENDA AND I DO BELIEVE THAT RAISING TAXES ON THE WEALTHIEST NEW YORKERS, THE MOST PROFITABLE CORPORATIONS, CONTINUES TO BE A CRITICAL PART OF THAT, AND THIS IS A REFLECTION OF INHERITING AN ADMINISTRATION'S FINANCIAL MISMANAGEMENT AT EVERY TURN.

>> WHILE THE GOVERNOR HASN'T EXPLICITLY DRAWN THE LINE IN THE SAND ON FREE BUSES, SHE HAS STRESSED THAT SHE WILL NOT BE RAISING TAXES.

FOLLOWING THE GOVERNOR'S BUDGET ANNOUNCEMENT, WHEN ASKED BY REPORTERS ABOUT THIS ISSUE, HOCHUL SAID SHE IS IN COMMUNICATION WITH THE MAYOR AND PLANS TO SUPPORT HIM WITH FUNDING, BUT NOT VIA RAISING TAXES.

>> I KNOW HE'S CALLING FOR A TAX INCREASE.

I'VE HEARD THAT.

I DON'T HAVE A RESPONSE.

I JUST SAID THIS IS A BUDGET THAT'S SEEING UNPRECEDENTED, UNANTICIPATED, UNEXPECTED REVENUES TO THE TUNE OF $17 BILLION BECAUSE WE HAVE AN ENVIRONMENT WHERE WE'RE SUPPORTING THE BUSINESSES AND THE ECONOMY THAT ALLOWS THESE OPPORTUNITIES TO COME TO US.

>> HOCHUL ADDED SHE WORRIES ABOUT THE IMPACT OF RAISING TAXES, HIGHLIGHTING NEW YORKERS LEAVING THE STATE BECAUSE OF CHANGES TO THE STATE AND LOCAL TAX DEDUCTION OR THE SALT TAX.

>> I STILL LOOK AT OUT-MIGRATION NUMBERS AFTER SALT, AND WE LOST $13 BILLION.

$13 BILLION THAT I'D RATHER BE PAID BY TAXPAYERS HERE THAN HAVING THEM BE DOWN IN FLORIDA.

SO I'M SENSITIVE TO THE IMPACT.

SO I UNDERSTAND THE CALLS.

I RESPECT THAT TREMENDOUSLY, AND THE MAYOR KNOWS THAT WE WILL BE HIS PARTNERS IN HELPING HIM ADDRESS HIS FINANCIAL CHALLENGES.

>> WHILE THE GOVERNOR IS HARD SET ON NOT RAISING TAXES, THERE ARE SOME DEMOCRATS IN THE LEGISLATURE WHO DO SUPPORT THIS EFFORT.

>> MANY OF US HAVE BEEN WORKING IN COALITION OVER THE LAST SEVERAL YEARS TO MAKE SURE THAT WE'RE TAXING THE RICH, TO MAKE SURE THAT THEY'RE PAYING THEIR FAIR SHARE, ESPECIALLY AFTER THEY GOT A HUGE TAX CUT FROM TRUMP, BUT THAT THEY'RE PAYING THEIR FAIR SHARE SO THAT WE HAVE THE RESOURCES THAT WE NEED TO MAKE SURE THAT EVERY NEW YORK HEARS THE OPPORTUNITY TO THRIVE.

WE ARE IN A SITUATION NOW WHERE NEW YORK HAS MORE MILLIONAIRES.

WE HAVE MORE CORPORATE PROFITS, RECORD CORPORATE PROFITS, AND WE HAVE PEOPLE WHO MAKE UNDER $75,000 A YEAR AS A HOUSEHOLD.

THIS IS THE GROUP OF PEOPLE THAT IS, BY FAR, LEAVING THE STATE.

>> SHRESTHA ADDS THE GOVERNOR'S ARGUMENT THAT RAISING TAXES FOR THE WEALTHY IS UNNECESSARY BECAUSE THERE'S ENOUGH SURPLUS STATE REVENUE IS NARROW-MINDED.

>> THIS IDEA THAT WE SEE A WIND FALL HERE, SO WE DON'T HAVE TO WORRY ABOUT RAISING REVENUES IS A VERY SHORTSIGHTED VISION.

BECAUSE WHEN YOU DEPEND ON, OH, THE SURPRISE SURPLUS WE HAVE ALL THE TIME, YOU CAN'T REALLY PLAN THESE SUSTAINABLE PROGRAMS.

>> SOME REPUBLICAN LAWMAKERS ACROSS THE AISLE AGREE THAT RELYING ON WALL STREET SURPLUS FOR STATE REVENUE IS RISKY.

GRAY SAYS HE IS AGAINST RAISING TACKS FOR THE WEALTHY, ADDING WHILE WALL STREET SHOULDN'T BE RELIED ON FOR REVENUE, IT IS STILL HELPFUL, AND HE DOESN'T WANT TO SEE THEM DRIVEN OUT OF STATE.

>> WE KNOW THAT MIAMI IS A HOT MARKET FOR THE ACTIVITY OF WALL STREET.

WE KNOW DALLAS IS A HOT MARKET FOR THE ACTIVITY OF WALL STREET.

WE DON'T WANT TO GIVE THESE SECTORS, THE FINANCIAL SECTOR, ANY MORE REASON TO LEAVE NEW YORK STATE.

WE WANT TO KEEP THEM HERE.

WE WANT TO MAKE IT MORE APPEALING TO DO BUSINESS HERE.

>> OTHER REPUBLICAN LAWMAKERS SAY THIS ISSUE HAS A PROBLEMATIC MESSAGE.

>> DO WE WANT THESE PEOPLE TO ESCAPE THE ANTI-RICH PEOPLE SENTIMENT FROM NEW YORK AND MOVE NO FURTHER THAN JUST TEN MILES ACROSS TO NEW JERSEY, AND THEY'RE PAYING LESS TAXES?

DO WE WANT TO LOSE THAT TAX BASE, REALLY?

>> IN THE STATE OF NEW YORK, TOP EARNERS PAY ABOUT 10% ON THEIR LOCAL INCOME TAXES COMPARED TO MIDDLE TO LOWER CLASS EARNERS WHO PAY ABOUT HALF THAT.

>> HOWEVER, FEDERAL TAX DEDUCTIONS ALSO PAY A KEY ROLE.

THE TRUMP ADMINISTRATION RECENTLY GAVE HIGH INCOME EARNERS A FEDERAL TAX CUT TOTALING $4.5 TRILLION WHEN THE BIG, BEAUTIFUL BILL WAS SIGNED INTO LAW IN JULY OF LAST YEAR.

ACCORDING TO A REPORT FROM THE FISCAL POLICY INSTITUTE, THIS ACTION IS ESTIMATED TO GIVE THE TOP ONE PERCENT OF EARNERS AN AVERAGE ANNUAL TAX CUT OF $100,000.

SOME ADVOCATES WITH THE NEW YORK WORKING FAMILIES PARTY ARE HOPING FOR INCREASED TAXES ON THE WEALTHY IN THIS YEAR'S BUDGET, STRESSING WORKING PEOPLE NEED HELP WITH THE AFFORDABILITY CRISIS.

>> WHEN TRUMP IS CUTTING DOLLARS FROM OUR STATE, ESPECIALLY TARGETING BLUE STATES, WE HAVE TO, IN THIS MOMENT, TAKE CARE OF OURSELVES, AND THE GOOD THING ABOUT NEW YORK IS THAT WE HAVE THE ABILITY TO DO SO.

THERE ARE MORE MILLIONAIRES AND BILLIONAIRES IN NEW YORK THAN ANY OTHER PLACE ON THE PLANET, AND TRUMP GAVE THEM ABOUT $12 BILLION JUST IN NEW YORK.

THE ULTRA WEALTHY GOT $12 BILLION IN PERMANENT TAX BREAKS FROM THE FEDERAL GOVERNMENT.

WE CAN ASK THEM TO PAY A LITTLE BIT MORE SO THAT WE CAN HAVE OUR CHILDCARE, SO THAT WE CAN HAVE HEALTH CARE.

>> SOME LEGISLATIVE LEADERS SAY SO FAR, IT'S TOO SOON TO TELL WHERE THEY WILL LAND ON TAXES.

>> LIKE I SAID, WE'RE STILL DIGESTING.

I HAVEN'T TALKED TO THE MEMBERS.

>> BUT WHAT IS CERTAIN, DEMOCRATS AND REPUBLICANS HAVE OPPOSING VIEWS ON THE SUBJECT.

REPUBLICAN LEGISLATIVE LEADERS SAY THEY PLAN TO PUSH BACK, ADDING THEY HOPE THE GOVERNOR HOLDS HER STANCE ON THE ISSUE.

>> I CAN PROMISE YOU ZOHRAN MAMDANI'S ALLIES IN THE SENATE AND THE ASSEMBLY, AND THERE ARE MANY WHO ARE GOING TO TAKE UP HIS BANNER AND HIS EFFORT TO DO EXACTLY WHAT HE WANTS TO DO.

I WANT THE GOVERNOR TO KNOW THAT THIS CONFERENCE ACTUALLY AGREES WITH HER.

NOT ONLY SHOULD WE NOT RAISE TAXES, WE SHOULD BE CUTTING TAXES.

>> WHILE DEMOCRATIC LEGISLATIVE LEADERS SAY THIS IS AN ISSUE THE DEMOCRATIC CONFERENCE HAS PUSHED FOR IN THE PAST SUGGESTING THE SAME ADVOCACY WILL CONTINUE.

>> SO WE'RE JUST BEGINNING THE PROCESS, BUT IF PAST IS PROLOGUE, I WOULD SAY THAT WE WOULD CONTINUE TO PUSH FOR A PROGRESSIVE TAXATION PROCESS.

>> MOVING FORWARD, ONE OF THE UPCOMING BUDGET HEARINGS IS FOR LOCAL GOVERNMENT, ALSO KNOWN AS TIN CUP DAY.

MAMDANI WILL SPEAK DIRECTLY TO LAWMAKERS ABOUT THE CITY'S NEEDS AND PRIORITIES IN HOPES OF SECURING FUNDING IN THE STATE BUDGET.

ELISE KLINE, "NEW YORK NOW."

>> AND FOR MORE INFORMATION ON THE NEW YORK CITY MAYOR'S POLITICAL STANDING IN ALBANY, YOU CAN VISIT OUR WEBSITE.

AGAIN, THAT'S AT NYNOW.ORG.

YOU CAN ALSO SUBSCRIBE TO OUR NEWSLETTER BY GOING TO NEWSLETTER.NYNOW.ORG, OR BY SCANNING THE QR CODE ON YOUR SCREEN.

WELL, THAT DOES IT FOR THIS EDITION OF "NEW YORK NOW."

THANK YOU FOR TUNING IN AND SEE YOU NEXT WEEK.

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