New York budget talks stretch past March 31, with NYC aid, pensions and taxes still unclear

New York – Gov. Kathy Hochul’s $268 billion budget deal is still missing key details, with the state now headed weeks past March 31 as talks continue over NYC aid, a proposed second-home surcharge, and Tier 6 pension changes.

New York’s budget negotiations are running late in ways that will matter to millions of residents, with Albany’s final bills still unwritten even as Gov. Kathy Hochul pushes toward a deal on a $268 billion spending plan.

Hochul announced what she called a “general agreement” last week. but the specifics of major components of the tax-and-spend package remain unsettled.. Closed-door discussions are continuing in Albany, and none of the nine remaining budget bills have been printed.. The result: New York’s budget is now set to land at least six weeks after its March 31 deadline.

Hochul is betting voters will focus on policy victories rather than the messy mechanics of how the deal is being hammered out.. But the fine print is likely to shape the scale and distribution of what the state spends. taxes. and changes. including reforms that could reverberate across New York City’s finances and the retirement system for public workers.

New York City aid is one of the clearest areas of attention.. Hochul and state lawmakers are discussing additional foundation aid. which could alter how public education spending is calculated. along with more money for homeless students.. The package under consideration also includes enabling legislation for pension amortization.

These steps are intended to help Mayor Zohran Mamdani close a remaining $5.4 billion gap in the city’s budget.. They build on an additional $1.5 billion Hochul previously agreed to earlier this year.. Asked about the negotiations Monday morning, Hochul said her office has been cooperating with the Mamdani administration.

“There’s quite a bit that needs to be OK’d by New York state,” she told reporters. “I spent last night talking to the mayor, Friday night talking to the mayor. It’s been a great level of cooperation.”

Also unresolved is the structure of Hochul’s proposed surcharge on non-primary second residences valued at $5 million and above.. Lawmakers have not yet seen detailed budget language describing how the surcharge would operate. including how much it would be based on a home’s assessed value.. That design choice, officials say, will likely affect how many residences are captured by the tax.

Another major open question is whether and how Hochul and lawmakers will overhaul Tier 6. a teacher and public workforce pension category that could carry significant fiscal impact.. Two people familiar with the discussions said officials are considering a “skinny” version of a plan that had been pushed by unions.

Under the approach under debate. the retirement age for teachers would drop to 58 after 30 years of service. but their paycheck contributions would not change.. For the rest of the public workforce. the state is considering minimum contributions of at least 3% of a worker’s take-home pay. without altering retirement age.. The proposal is expected to cost $500 million in total across the state. local governments and school districts. a figure far below a $1.5 billion plan advanced earlier this year by the New York State AFL-CIO.

The budget talks are also touching on another flashpoint: protest buffer zones.. Lawmakers and Hochul have weighed a 50-foot protest buffer zone that would allow local officials to expand it if they choose.. Coverage around houses of worship is largely agreed upon, but the remaining details are still a sticking point.

The budget delay is unfolding alongside other developments across the state and city.

In a separate public health update. New York’s Health Commissioner James McDonald said three New Yorkers were aboard a cruise ship at the center of an international hantavirus outbreak.. The passengers were sent to Offutt Air Force Base in Nebraska. where they are expected to be subject to a 42-day monitoring period.

McDonald said coordination is underway with the Centers for Disease Control and Prevention and local health departments to gather information. while adding that officials do not yet know how long the individuals will remain in Nebraska or whether and when they will return to New York.. He also emphasized there is no immediate risk to the public, with updates to follow as needed.

Hochul said the state is working with the CDC and monitoring federal capacity. adding that she wants to ensure the CDC can handle a potential outbreak that could be larger than federal projections.. She referenced “significant cuts” to the CDC from more than a year ago and said the state has activated resources to prepare for worst-case scenarios.. Hochul said New York is putting together a plan to address any spread of the virus. but she does not believe it will become another coronavirus pandemic.. She added that briefings would begin if the outbreak spreads beyond the three individuals flown from the ship.

On the political communications front. Hochul’s office said the state government’s informal. joke-telling social media accounts were recognized with a Webby Awards “Honoree” designation last week.. The accounts operate under the handle @NYGov on Instagram and X. separate from the “Governor Hochul Press Office” account that drew criticism after a mock aimed at Barstool Sports founder Dave Portnoy over his age.

Hochul’s digital staff described the strategy behind @NYGov. including posts about the state’s pothole hotline and an Instagram PSA about the spotted lantern fly.. Digital content strategist Milly Czerwinski. who runs the account. said “government is for the people. ” and argued that being able to communicate in a relatable way helps break through traditional bureaucratic barriers.

At City Hall. political friction between the mayor’s office and the NYPD sharpened again after a misconduct complaint by Councilmember Chi Ossé.. Ossé filed the complaint against an NYPD officer who arrested him, alleging excessive force during an April 22 arrest in Brooklyn.. Ossé and others were protesting a planned eviction of a woman who says she is the victim of deed theft.

The Civilian Complaint Review Board has received Ossé’s claim and is reviewing it, according to a spokesperson.. Ossé. a democratic socialist and ally of Mayor Mamdani. said the officer violated his civil rights and claimed he suffered a concussion after being slammed to the ground.. The NYPD previously said Ossé and three other protesters were arrested only after refusing verbal commands to stop blocking access to the property where the eviction was to proceed.

Mamdani has called video of Ossé’s arrest “incredibly concerning,” while also saying he respects the independence of the CCRB and will allow the disciplinary process to play out under established procedures and the NYPD’s disciplinary matrix.

The complaint could put Mamdani in a difficult position. If he backs the complaint, he risks alienating police leadership, including NYPD Commissioner Jessica Tisch. If he does not, he could anger allies on the left who have long criticized the department.

In a separate City Council matter. Councilmember Vickie Paladino reached a settlement with the council to resolve disciplinary charges tied to posts she made on social media.. Under the agreement filed in Manhattan Supreme Court Monday. the council withdrew its disciplinary charges. Paladino dropped her lawsuit challenging the proceedings. and the settlement effectively dismissed the case while canceling an ethics hearing that could have resulted in censure. fines or expulsion.

Paladino must delete three posts that were cited in the case and remove “Council Woman” from her personal X account display name within 48 hours of court approval. as part of a requirement to better separate official posts governed by council rules from her personal opinions.. The case stemmed from posts dating to December. including one later deleted calling for “expulsion of Muslims from western nations. ” as well as later remarks about “foreign occupation” tied to Mamdani’s appointment of a top immigration official and comments framing a photo of Muslim sanitation workers praying as an “Islamic conquest.”

Council rules had charged Paladino with disorderly conduct and violations of anti-harassment and discrimination policies in March.. She argued she was being targeted for conservative views and that discipline violated her First Amendment rights.. Council ethics committee chair Sandra Ung said Monday that the resolution “strikes the balance” between protecting staff and lawmakers’ free speech rights.

Separately, Rep.. Pat Ryan endorsed state Assemblymember Alex Bores in the race to succeed retiring Rep.. Jerry Nadler. making Ryan the latest New York delegation member to weigh in on one of the state’s most competitive primaries.. Ryan said the high-profile fight over artificial intelligence had become central to the contest. pointing to what he described as the influence of major tech donors.

“He’s going to be the next member of Congress for the New York 12th District. ” Ryan said at an event in Midtown with Bores.. “If you have any doubt, you don’t have to take my word for it — follow the money.. Look at the incredible unprecedented amount … It’s because these tech billionaires are terrified, they’re terrified of Alex specifically.”

Bores has faced steep outside spending. including money from a pro-AI super PAC opposing him and pouring resources into his campaign. according to campaign descriptions.. Bores’ allies say his position aligns with taking decisive action to regulate artificial intelligence before the technology outpaces existing rules. a debate continuing across Washington and beyond.. Bores is seen as one of the top contenders for the 12th District. a seat spanning a large portion of Manhattan.. He faces Assemblymember Micah Lasher, Kennedy scion Jack Schlossberg, anti-Trump commentator George Conway, and additional challengers.. Public polling has been sparse and internal polls from earlier this year did not show a clear front-runner.

Across the state’s broader political calendar. Mamdani has less than a month to fill two longstanding vacancies on the Metropolitan Transportation Authority board.. Those appointments could prove significant for a mayoral push to make city buses “fast and free.” In a separate campaign development. Hochul and Rep.. Dan Goldman. who is seeking reelection in New York’s 10th congressional district. appeared together with Goldman facing a primary challenge backed by Mamdani ally Brad Lander.

And in federal law enforcement, the top prosecutor in the U.S. attorney’s office for the Northern District of New York is accused of misconduct, according to the watchdog group Campaign for Accountability.

For now, though, Albany’s unfinished budget remains the central, consequential task.. With the state heading well past March 31 and key legislative language still not printed. the political question is not whether New York will write a budget. but what. exactly. will end up in the final bill—and how much it will cost. who it will help. and which fights will define the next weeks of negotiations.

New York state budget Kathy Hochul NYC aid Tier 6 pensions second-home surcharge Metropolitan Transportation Authority