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Lawmakers in Albany have missed the state's budget deadline once again, as Governor Kathy Hochul and the Democrat-led Legislature failed to pass an on-time spending plan by Monday (March 31). To keep the government running, lawmakers quickly approved a one-week budget extender, which ensures state workers will receive their pay and government operations can continue through April 7.
This marks the seventh consecutive year New York’s budget has been late, including every year since Governor Hochul took office in 2021. Last year’s budget was not completed until May 8, the latest since 2010. The current budget negotiations are stalled over several major issues, including changes to auto insurance laws, adjustments to the 2019 climate law, proposals to raise taxes on the wealthy, school aid funding, and reforms to the Tier 6 pension system. Key points of contention involve whether to restrict local governments from cooperating with federal immigration authorities and how to address New York City's budget gap.
The governor’s proposed $260 billion spending plan has faced pushback, especially on her car insurance reforms. Supporters, including companies like Uber, argue these changes will lower premiums and reduce litigation costs, but critics like the New York State Trial Lawyers Association claim the reforms would hurt injured New Yorkers and benefit insurance companies.
According to Spectrum News, the extender was signed into law Monday evening and allows the Legislature to recess for the Easter and Passover holidays without disrupting government functions. Lawmakers will not receive their own pay until a final budget is passed, though the governor will continue to collect her salary.
The budget delay leaves school districts and local governments uncertain about their funding for the next year, complicating their own budget planning. Assembly Speaker Carl Heastie said, "a better budget is more important than an on-time budget," while Republican lawmakers criticized the delay, citing a "lack of urgency."
Negotiations between the governor and legislative leaders are ongoing, with both sides expressing hope for a resolution soon. For now, the budget extender keeps the state operating while talks continue into April. More updates are expected after lawmakers return from their holiday break.