New York’s state budget has hit another delay as lawmakers continue to debate a proposal aimed at incentivizing new housing construction. The plan includes tax breaks for developers, protections for workers and tenants, and other elements to drive the construction of new housing units. The budget deadline has been extended to April 15 as lawmakers work through competing demands in private negotiations. Housing has emerged as a major stumbling block, with discussions focused on striking a balance between the needs of developers, tenants, and labor to reach an agreement that will increase the housing stock.
Governor Kathy Hochul has made increasing the housing stock a priority, but faces pushback from suburban lawmakers. Hochul is seeking to utilize commercial properties and state lands for more housing, along with offering tax incentives for developers who include affordable housing in new buildings. She acknowledges that the private sector cannot be forced to build unless the conditions are right for them. Talks are ongoing to include a tax break for developers, a wage agreement for laborers, and protections for tenants against rent increases and evictions. The details of the proposal are still being finalized.
In addition to housing, there are other contentious issues in the budget negotiations. Hochul’s plan to shift how the state allocates money to school districts has faced opposition, prompting her to back off the proposal and revisit it next year. Legislative leaders are also pushing back against increasing criminal penalties for assaulting retail workers as part of Hochul’s broader strategy to address criminal justice concerns. Ongoing negotiations are also taking place on cracking down on unlicensed marijuana shops in New York City.
The budget, originally due on April 1, is expected to exceed $230 billion. The delay in passing the budget is a result of the complexity of negotiations and the need to address various competing demands from different stakeholders. Hochul’s efforts to find a balance between the needs of developers, tenants, and labor, while also addressing issues such as school funding and criminal justice reforms, have led to delays in finalizing the budget. However, lawmakers are working to approve a stopgap bill to keep the government funded until a final agreement can be reached on the budget proposal.
Negotiations continue as lawmakers in the Assembly are expected to approve the stopgap bill, sending it to Hochul for a signature. The budget discussions have highlighted the challenges in reaching consensus on key issues such as housing, school funding, and criminal justice reforms. The delay in passing the budget underscores the complexity of the issues at hand and the need for careful deliberation to ensure that the budget meets the needs of all stakeholders. Despite the challenges, lawmakers are committed to finding common ground and reaching a final agreement on the budget proposal.
