New York State Will Be Able to Pay Its Bills and Employees as Budget Talks Drag On

New York state will be able to pay its bills and cut employee paychecks while the governor and fellow Democratic legislative leaders continue to hash out budget details after missing the April 1 deadline.

(Bloomberg) — New York state will be able to pay its bills and cut employee paychecks while the governor and fellow Democratic legislative leaders continue to hash out budget details after missing the April 1 deadline.

Lawmakers passed so-called extender legislation on Monday, which will fund state operations and payrolls through April 10 and buy some time for Governor Kathy Hochul to finalize a deal with the legislature. Passage ensures that nearly 57,000 state employees, including prison guards and health-care workers, will be paid this week, according to the state Comptroller’s Office.

The state’s fiscal year began on April 1, but budget negotiations remained stalled nearly two days after the deadline. To avoid payroll delays, the extender had to be passed by April 3. Lawmakers, however, won’t get paid until the budget is final.

The proposed $227 billion state budget is being held up over details of several controversial proposals, particularly Hochul’s changes to the bail law, which would roll back a standard that asks judges to apply the least-restrictive measures to ensure a defendant returns to court. If enacted, the change would mark a second consecutive budget session where the governor has moved to make the state’s pretrial detention provisions more stringent.

In November, Hochul won reelection in a surprisingly tight race with US Representative Lee Zeldin, a Republican who made crime the focus of his campaign. A recent poll found 76% of New Yorkers support Hochul’s proposed changes to the bail law.

Other sticking points include the govenror’s housing plan, which would create 800,000 new homes over the next decade. The plan calls for rezoning and housing increases in the suburbs, which has generated pushback, especially on Long Island. Hochul’s proposal to lift the cap on the number of charter schools in New York City has also been the source of conflict.

State leaders are also negotiating proposals to raise the minimum wage and tie it to inflation, a funding increase for the struggling Metropolitan Transportation Authority and financial support for New York City to help with the unexpected migrant surge. Another top issue is Hochul’s plan to have the nation’s first ban on using natural gas heating and appliances in new buildings.

This is the second year that Hochul’s bail changes have forced lawmakers to pass an extension. Last year the budget was about a week late as Senate and Assembly Democrats pushed back on Hochul’s bail proposal.

–With assistance from Keshia Clukey.

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