[ THEME MUSIC ] >> ON THIS WEEK'S EDITION OF "NEW YORK NOW," NEW YORK HAS A NEW STATE BUDGET WITH A $212 BILLION PRICE TAG.

THEN STATE COMPTROLLER TOM DINAPOLI JOINS US WITH HIS TAKE ON THE STATE BUDGET AND THE FUTURE OF NEW YORK'S FINANCES AND LATER, KAREN DEWITT FROM NEW YORK STATE PUBLIC RADIO AND BILL MAHONEY FROM POLITICO JOIN ME WITH THE LATEST.

I'M DAN CLARK AND THIS IS "NEW YORK NOW."

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

I'M DAN CLARK.

YEAH, AT 4:00 A.M THE ASSEMBLY FOLLOWED THE NEXT DAY GIVING FINAL PASSAGE TO $212 BILLION IN SPENDING OVER THE NEXT YEAR.

AND IF YOU'RE NOT FAMILIAR WITH THE STATE BUDGET, THAT MIGHT SOUND SORT OF BORING BUT LAWMAKERS TYPICALLY PACK MAJOR POLICY ITEMS IN THE BUDGET AS WELL.

TWO YEARS AGO, IT WAS BAIL REFORM AND THERE WAS PLENTY OF THAT THIS YEAR AS WELL, BUT ALL EYES WERE REALLY ON THE STATE'S FINANCES AFTER THE COVID-19 PANDEMIC.

HERE'S GOVERNOR CUOMO THIS WEEK.

>> THIS BUDGET IS CERTAINLY THE MOST ROBUST, MOST IMPACTFUL MOST IMPORTANT BUDGET THAT WE HAVE DONE IN THIS STATE I BELIEVE IN MODERN HISTORY.

>> WITH NEARLY $20 BILLION MORE IN SPENDING COMPARED TO LAST YEAR, THERE'S A LOT TO GET THROUGH.

TAKE A LOOK.

NEW YORK STATE WILL INCREASE SPENDING OVER THE NEXT YEAR AND DO IT IN PART BY RAISING REVENUE FROM THE STATE'S TOP EARNERS, AND THAT'S JUST A SMALL PART OF THIS YEAR'S MASSIVE STATE BUDGET, WHICH WAS APPROVED THIS WEEK BY THE STATE LEGISLATURE IN ALBANY.

THE $212 BILLION SPENDING PLAN WILL ALSO LEGALIZE MOBILE SPORTS BETTING, PROVIDE A HUGE BOOST IN EDUCATION AID, EXPAND ACCESS TO HIGH SPEED INTERNET AND A LOT MORE.

SENATE MAJORITY LEADER ANDREA STEWART-COUSINS.

>> THIS IS PRETTY INCREDIBLE WHEN YOU REMEMBER THE MANY CHALLENGES THIS BUDGET BROUGHT WITH IT, A PREEXISTING DEFICIT, A GLOBAL PANDEMIC AND QUESTIONS ABOUT HOW TO BEST TAKE ADVANTAGE OF THIS FEDERAL AID PACKAGE AND NOT LEAD TO A FISCAL CLIFF.

>> AT THE START OF THE YEAR, NEW YORK'S FINANCES WERE BLEAK.

THE STATE WAS FACING A $15 BILLION BUDGET DEFICIT OVER TWO YEARS.

BUT THINGS TURNED AROUND IN EARLY MARCH WHEN CONGRESS APPROVEKED ABOUT $12.5 BILLION IN AID FOR NEW YORK.

NOW, THAT MONEY IS BEING USED TO CLOSE THE STATE'S BUDGET GAP AND FUND NEW PROGRAMS, LIKE A $2.4 BILLION RELIEF FUND FOR TENANTS AND LANDLORDS.

SENATE HOUSING CHAIR, BRIAN KAVANAGH SAYS THAT COULD BE ENOUGH TO COVER THE TOTAL AMOUNT OF UNPAID RENT DURING THE PANDEMIC.

>> WE'RE NOT REALLY GOING TO KNOW UNTIL WE GET THE APPLICATION PROCESS UP AND RUNNING AND WE GET APPLICATIONS IN, BUT $2.45 BILLION CERTAINLY SHOULD GO A LONG WAY TOWARD COVERING A LOT OF THE RENT THAT'S NECESSARY.

CUOMO AND LAWMAKERS AGREED TO BOOST SCHOOL FUNDING FOR SCHOOLS BY $1.4 BILLION FOR A TOTAL STATEWIDE OF NEARLY $30 BILLION, AND THAT CAME WITH A COMMITMENT TO SEND BILLIONS MORE TO SCHOOLS OVER THE NEXT FEW YEARS AS WELL.

JASMINE GRIPPER IS THE EXECUTIVE DIRECTOR OF THE ALLIANCE FOR QUALITY EDUCATION.

>> SO WHAT THAT WILL MEAN ON THE GROUND IS SMALLER CLASS SIZES.

WHAT IT WILL MEAN IS GUIDANCE COUNSELORS FOR EVERY STUDENT AND IT MEANS SPORTS PROGRAMS, ART AND MUSIC IN EVERY CLASSROOM, THINGS WE HAVE BEEN LACKING IN NEW YORK STATE, ESPECIALLY IN OUR HIGHEST NEED COMMUNITIES.

>> LAWMAKERS ALSO AGREED TO SET ASIDE $2.1 BILLION TO BENEFIT WORKERS WHO COULDN'T ACCESS UNEMPLOYMENT DURING THE PANDEMIC.

SOME WERE AGAINST THE FUND ALTOGETHER, WHILE OTHERS WANTED A LARGER INVESTMENT.

THAT INCLUDED ASSEMBLY MEMBER MAR CELL WHO JOINED A HUNGER STRIKE WITH ADVOCATES BEFORE THE BUDGET PASSED THIS WEEK.

>> THESE FOLKS HAVE NOT RECEIVED ANY MONEY FOR OVER A YEAR.

THEY HAVE FAMILIES AND THEY HAVE CHILDREN TO FEED.

THEY ARE TIRED OF ASKING.

THEY ARE HERE PUTTING THEIR BODIES ON THE LINE TO DEMAND THAT THE GOVERNMENT STEP IN.

THAT IS OUR JOB.

>> AND WITH ALL OF THAT AND MORE, NEW YORK STATE BUDGET WILL BE NEARLY $20 BILLION HIGHER THAN LAST YEAR, AND THAT'S PARTLY BECAUSE OF WHAT NEW YORK GOT FROM CONGRESS.

BUT THE STATE IS ALSO BOOSTING SPENDING THIS YEAR AT A HIGHER RATE THAN PAST YEARS.

PATRICK ORECKI IS WITH THE CITIZENS BUDGET COMMISSION EXPECTS, A BUDGET ALE THAT IS AS GROUP.

>> OVER TWO YEARS GROWING A BUDGET FROM 173 BILLION TO $212 BILLION ON ALL-FUNDS BASIS,S THEY A 22% CHANGE OVER TWO YEARS.

IT IS ABSOLUTELY A MASSIVE AND CERTAINLY IN RECENT TIMES KIND OF UNPRECEDENTED RATE OF SPENDING GROWTH.

>> AND THAT HAD REPUBLICANS CONCERNED WHEN THE BUDGET CAME UP FOR A VOTE THIS WEEK.

ASSEMBLY MEMBER ANDY GOODELL WAS ONE OF THEM.

EVEN THOUGH EACH ONE OF THOSE STATES HAS MORE RESIDENTS THAN WE DO.

>> BUT DEMOCRATS SAY THEY HAVE A PLAN TO PAY FOR IT.

THAT STARTS WITH NEW TAX HIKES FOR CORPORATIONS AND HIGH INCOME EARNERS IN NEW YORK.

SENATE DEPUTY MAJORITY LEADER MIKE GIANARIS.

AND IT'S TIME FOR THOSE WHO ARE DOING WELL, WHO BY THE WAY DID EVEN BETTER WHILE OTHERS WERE SUFFERING DURING THE YEAR, ARE ASKED TO DO THEIR FAIR SHARE TO HELP US RECOVER.

>> NEW YORK WILL RAISE TAXES FOR PEOPLE MAKING MORE THAN A MILLION DOLLARS A YEAR AND CREATE TWO NEW TAX BRACKETS FOR THOSE EARNING MORE THAN $5 MILLION AND $25 MILLION RESPECTIVELY.

AND THE CORPORATE TAX RATE WILL ALSO GO UP FOR COMPANIES THAT REPORT MORE THAN $5 MILLION IN INCOME.

AT THE SAME TIME, STATE INCOME TAXES WILL GO DOWN FOR MIDDLE INCOME NEW YORKERS AND WHILE THOSE TAX HIKES ARE EXPECTED TO RAISE MORE THAN $4 BILLION IN NEW REVENUE FOR THE NEXT YEAR, SOME SAY IT'S A RISKY MOVE FOR NEW YORK.

HERE'S ORECKI AGAIN.

>> FIRST IS YOU HAVE AN OUTMIGRATION RISK, EITHER INDIVIDUALS OR BUSINESSES CHOOSING TO LIVE MORE OR ENTIRELY IN OTHER STATES WHERE THEY CAN SAVE A LITTLE ON THEIR TAX BILL, AND YOU HAVE THE RISK OF ADDING MORE TAX LIABILITY ONTO A VERY SMALL SEGMENT OF THE POPULATION.

>> BUT NOT EVERYONE AGREES WITH THAT.

RON DEUTSCH IS THE EXECUTIVE DIRECTOR OF NEW YORKERS FOR FISCAL FAIRNESS, A GROUP THAT SUPPORTS THE TAX HIKES.

HE SAYS SINCE NEW YORK LAST RAISED TAXES ON THE RICH MORE THAN A DECADE AGO, THE STATE HAS ACTUALLY GAINED MILLIONAIRES, NOT LOST THEM.

>> AFTER WE DO THIS IN 2009, WHEN WE INITIATED A MILLIONAIRE'S TAX, SINCE THAT POINT IN TIME, THE NUMBER OF MILLIONAIRES HAS DOUBLED IN NEW YORK.

GONE FROM ABOUT 27,000 TO ABOUT 57,000 RIGHT NOW AS OF 2019.

>> ALSO ON THE REVENUE SIDE, NEW YORK WILL LEGALIZE ONLINE SPORTS BETTING THIS YEAR.

THE STATE GAMING COMMISSION WILL BE IN CHARGE OF SETTING UP THE NEW INDUSTRY, WHICH IS EXPECTED TO GENERATE ABOUT $500 MILLION IN REVENUE FOR THE STATE BY 2026.

BUT THE DIGIT ALSO INCLUDED SOME MAJOR POLICY ITEMS LIKE A NEW PLAN TO EXPAND ACCESS TO HIGH SPEED INTERNET IN NEW YORK.

MOST INTERNET SERVICE PROVIDERS WILL NOW HAVE TO PROVIDE HIGH SPEED INTERNET TO LOW INCOME CUSTOMERS FOR $15 A MONTH.

THAT'S FOR THE BASELINE PLAN BUT CUSTOMERS CAN ALSO PAY A FEW DOLLARS MORE FOR HIGHER SPEEDS.

THAT STARTS IN TWO MONTHS AND THE STATE WILL ALSO STUDY BROADBAND ACCESS AND AFFORDABILITY OVER THE NEXT YEAR TO DETERMINE NEXT STEPS.

THAT'S BEEN A TOP ISSUE FOR SENATOR MICHELLE HINCHEY, A DEMOCRAT.

>> MANY OF OUR COMMUNITIES CAN'T AFFORD BROADBAND OR THEY DON'T HAVE ACCESS TO IT BECAUSE OF THE INFRASTRUCTURE.

MAKING SURE THAT WE HAVE IN OUR BUDGET A REAL PLAN THAT IS AFFORDABLE TO MAKE SURE THAT EVERYBODY, NO MATTER WHO YOU ARE, CAN GET ACCESS TO THE INTERNET IS CRITICALLY IMPORTANT.

>> AFTER THE COVID-19 PANDEMIC KILLED MORE THAN 13,000 RESIDENTS IN NEW YORK'S NURSING HOMES OVER THE PAST YEAR, LAWMAKERS ARE MAKING CHANGES TO HOW THOSE FACILITIES CAN USE THEIR MONEY.

NOW NURSING HOMES WILL HAVE TO SPEND AT LEAST 70% OF THEIR REVENUE ON DIRECT PATIENT CARE AND 40% WILL HAVE TO BE SPENT ON STAFFING.

SENATE HEALTH CHAIR GUSTAVO RIVERA SAID IT'S TO MAKE SURE RESIDENTS ARE GETTING THE CARE THEY NEED AND KEEP FACILITIES IN CHECK.

>> IT IS TO MAKE SURE THAT MOST OF THE MONEYS THAT GO TO THE FACILITIES ARE USED FOR PATIENT CARE.

IT'S A WAY TO DISSWAYED THE BAD ACTORS WHO MAY BE GETTING INTO THE SYSTEM TO MAKE MONEY.

ULTIMATELY WHAT YOU SHOULD BE FOCUSING ON IS HE TAKING CARE OF PEOPLE.

THAT'S PART OF WHAT WE DID TODAY DOES.

>> ALL IN ALL, THIS YEAR'S STATE BUDGET INCLUDED A LOT OF THE PRIORITIES DEMOCRATS PUSHED FOR THIS YEAR AND MORE COULD BE AHEAD IN THE NEXT FEW WEEKS.

LAWMAKERS HAVE A WEEK OFF BUT ARE EXPECTED TO RETURN TO ALBANY IN LATE APRIL.

THE LEGISLATIVE SESSION IS SCHEDULED TO END IN EARLY JUNE.

AND THAT'S ALL JUST THE TIP OF THE ICEBERG WHEN IT COMES TO THE STATE BUDGET.

WITH HUNDREDS OF PAGES OF SPENDING AND POLICY, THERE'S GOING TO BE A LOT TO SORT THROUGH IN THE COMING WEEKS AND A BIG QUESTION IN ALL OF THIS IS WHETHER NEW YORK IS MAKING RIGHT CHOICES TO REBUILD THE ECONOMY AFTER COVID.

FOR MORE ON THAT I TURN THIS WEEK TO THE STATE'S TOP ELECTED MONEY MANAGER, STATE COMPTROLLER TOM DINAPOLI.

STATE COMPTROLLER TOM DINAPOLI, THANKS SO MUCH FOR BEING HERE.

>> GREAT TO BE WITH YOU, DAN.

>> SO WE NOW HAVE A NEW STATE BUDGET.

IT'S A $212 BILLION SPENDING DEAL.

THERE'S A LOT IN THERE.

IT'S LITERALLY BACKED TO THE GILLS.

LET'S START BROAD.

IT ONLY PASSED ON WEDNESDAY.

WE'RE TALKING ON THURSDAY, SO I DON'T THINK THAT EITHER OF US HAVE HAD THE TIME TO GO THROUGH IT DETAIL BY DETAIL, BUT WHAT WAS YOUR INITIAL REACTION TO IT?

>> YEAH.

WE'RE IN THE PROCESS NOW JUST AS YOU POINT OUT, OF GOING DETAIL BY DETAIL BECAUSE OUR ROLE NOW, WE HAVE NO INPUT TO THE POLICY CHOICES BEING MADE IN THE BUDGET.

WHAT WE DO IN THE ANALYSIS OF THE COMPLETED BUDGET WHEN IT'S DONE AND WE JUST STARTED THAT WORK.

LOOK, FROM WHERE WE THOUGHT THIS WAS GOING TO BE A FEW MONTHS AGO, YOU'VE GOT BETTER ECONOMIC NEWS TRANSLATES INTO TAX REVENUE.

MORE HELP FROM WASHINGTON, AND CLEARLY, YOU HAVE A DECISION MADE BY THE LEGISLATURE TO INCREASE REVENUE AS WELL, INCREASE TAXES AND HAVE SOME NEW PROGRAMS TO GENERATE REVENUE BECAUSE THERE WAS A DECISION MADE ACROSS THE BOARD TO DO GREATER INVESTMENTS IN AREAS LIKE EDUCATION, HEALTH CARE, RELIEF FOR THOSE STRUGGLING WITH THE COVID PANDEMIC.

SO I GUESS THE FIRST TAKE-AWAY IS WHAT WE THOUGHT WAS GOING TO BE A VERY TOUGH BUDGET YEAR WITH DIFFICULT CHOICES BECAUSE OF LIMITED REVENUE TURNED OUT TO BE A MORE CONTENTIOUS PROCESS BECAUSE WE HAVE ALL THIS MONEY THAT HADN'T BEEN ANTICIPATED.

RIGHT?

SOMETIMES THE BUDGET IS LATE BECAUSE YOU ARE DEBATING WHAT ARE YOU CUTTING AND SOMETIMES THE BUDGET IS LATE BECAUSE YOU GOT MORE MONEY THAN YOU THOUGHT YOU WERE GOING TO HAVE AND YOU ARE DEBATING ON SPENDING.

THERE'S STILL A LOT TO ANALYZE.

SO THE BUDGET THAT'S BEEN ADOPTED IS ONE PIECE.

THE NEXT IN MANY WAYS, EQUALLY IMPORTANT PIECE, IS AN UPDATE TO THE STATE FINANCIAL PLAN, AND THAT WILL COME, YOU KNOW, PROBABLY WITH IN THE NEXT 30 DAYS.

THAT'S WHAT WE'RE REALLY GOING TO LOOK AT.

HOW ARE WE DEALING WITH THE ISSUE OF RECURRING SPENDING AND RECURRING REVENUE?

>> AS YOU ALLUDED TO, THERE ARE NEW REVENUE RAISERS IN THE STATE BUDGET THIS YEAR.

LAWMAKERS OPTED TO RAISE TAXES ON THE WEALTHY AND IN A STATEMENT AFTER THE BUDGET WAS PASSED, YOU ALLUDED TO SOME VOLATILITY THAT MAY CAUSE.

THIS IS SOMETHING THAT WE HAVE DONE OVER THE YEARS BUT OBVIOUSLY WE'RE IN A UNIQUE FINANCIAL SITUATION RIGHT NOW.

CAN YOU TELL ME WHAT YOU MEANT BY VOLATILITY?

DO YOU THINK THE TAX HIKES ARE A GOOD IDEA?

>> WELL, YOU KNOW, LOOK, I RESPECT THE ROLE OF THE LEGISLATURE AND THE GOVERNOR.

THEY'RE ELECTED TO MAKE THE POLICY CHOICES TO WHETHER SOMETHING IS A GOOD IDEA OR BAD IDEA AND THEY'LL STAND FOR ELECTION.

THE ECONOMY IS RECOVERING AND IN MY OPINION, IT'S A MORE FRAGILE RECOVERY THAN SOME PEOPLE ARE FULLY APPRECIATING.

ITS IS WAY TOO SOON TO PROJECT WHAT WILL BE THE IMPLICATIONS OF THESE TAX INCREASES.

YOU KNOW, ONE OF UNANSWERED QUESTIONS RIGHT NOW IS BECAUSE OF THAT VOLATILITY, RIGHT, SOME OF IT IS VOLATILE AND IF THE ECONOMY IS BAD AND PEOPLE AREN'T WORKING OR AREN'T MAKING AS MUCH, VOLATILE ALSO IF CHANGE IN TAX POLICY RESULTS IN AND SOME HAVE WARNED THAT SOME OF THE HIGHER INCOME NEW YORKERS COULD CHOOSE TO MOVE OUT OF STATE.

MANY OF THESE ARE FOLKS WHO ALREADY HAVE A SECOND HOME AND YOU KNOW, ONE OF THE LESSONS OF THE COVID EXPERIENCE IS THAT YOU DON'T HAVE TO BE IN NEW YORK TO GET A LOT OF THINGS, DONE RIGHT?

, YOU KNOW, THE VIRTUAL ENVIRONMENT AND SO ON.

YOU KNOW, SO I CERTAINLY UNDERSTAND AND APPRECIATE A DESIRE TO HAVE ENOUGH MONEY TO SPEND ON THE PRIORITIES OF THE LEGISLATURE HAD LAID OUT AND CERTAINLY HAVING A PROGRESSIVE TAX STRUCTURE MAKES SENSE.

BUT WE DO HAVE TO BE CAREFUL AND SEE WHAT THE TRENDS ARE GOING TO BE LONG TERM.

YOU KNOW, MANY PEOPLE ARE STILL HURTING VERY MUCH FROM THE ECONOMIC CONSEQUENCES OF THE PANDEMIC.

THE UNEVENNESS OF HOW PEOPLE HAVE FARED THROUGH THIS PANDEMIC IS ONE OF THE UNDERPINNINGS TO THE DESIRE TO CHANGE THE TAX STRUCTURE THE WAY THAT IT'S BEEN CHANGED, BUT YOU KNOW, THE POINT OF YOUR QUESTION, IT'S A VOLATILE REVENUE SOURCE.

WE NEED TO LOOK CAREFULLY TO SEE WHAT WILL BE THE IMPACT OF THESE TAX CHANGES >> THERE'S ALSO A $2.1 BILLION EXCLUDED WORKERS FUND THAT WAS INCLUDED IN THE BUDGET.

THIS MONEY WOULD BASICALLY BE USED TO PROVIDE BENEFITS FOR PEOPLE WHO COULDN'T ACCESS UNEMPLOYMENT DURING THE PANDEMIC.

WE'RE THINKING OF PEOPLE LIKE UNDOCUMENTED WORKERS WHO JUST DON'T HAVE ACCESS TO THAT UNEMPLOYMENT.

ONE PART OF THAT REQUIRES YOUR OFFICE TO ESSENTIALLY SIGN OFF ON IT BEFORE IT BECOMES ACTIVE AND I THINK THAT THESE WORKERS ARE PROBABLY WONDERING, WELL, HOW LONG IS THAT GOING TO TAKE?

WHEN CAN I GET ACCESS TO THIS MONEY?

DO YOU KNOW THAT YET?

I KNOW THE BUDGET LITERALLY JUST PASSED, BUT DO YOU KNOW WHAT THE PROCESS IS GOING TO BE AND WHAT THE TIME LINE LOOKS LIKE HERE FOR THAT?

>> YEAH, YEAH.

YOU KNOW, KEEP IN MIND, MANY OF THESE WORKERS WERE TRULY PROVIDING ESSENTIAL SERVICES DURING THE HEIGHT OF THE PANDEMIC.

YOU KNOW, WE HAD CONCERN ABOUT BEING WRITTEN INTO THE-- YOU KNOW, INTO THE LANGUAGE THE WAY IT WAS PROPOSED.

AND FRANKLY WASN'T REALLY SURE WHY WE WERE BEING THROWN INTO THAT.

THAT WOULDN'T BE OUR ROLE.

IN THE END, DAN, THE WORDING WAS CHANGED IN THE FINAL DRAFT FROM THE COMPTROLLER, THE WORD MAY WAS PUT INTO THE LANGUAGE.

WE MAY REVIEW.

YOU KNOW, WE'RE LOOKING AT THAT TO SEE WHAT THAT REALLY MEANS AND WHETHER OR NOT WE WOULD HAVE ANY VALUABLE INPUT TO PROVIDE IN TERMS OF REVIEWING THE REGULATIONS, BUT FIRST BLUSH, THERE'S NO REQUIREMENT FOR OUR OFFICE TO FORMALLY SIGN OFF OR CERTIFY, YOU KNOW, THE PARAMETERS OF HOW THIS MONEY'S GOING TO BE DISTRIBUTED.

THERE'S MORE LANGUAGE IN TERMS OF THE ATTORNEY GENERAL, BUT I BELIEVE SHE PUT OUT A STATEMENT EARLIER THIS WEEK INDICATING THAT THERE'S NOTHING IN THERE THAT IN ANY WAY CHANGES HER USUAL RESPONSIBILITY.

SO I DON'T SEE THE WORDING THAT BROUGHT US IN IN ANY WAY INTERFERING WITH THE LEGISLATIVE INTENT IN TERMS OF REALLY THE DEPARTMENT OF LABOR TAKING THE LEAD ON PUTTING THE REGULATIONS OUT THERE AND GETTING THE MONEY INTO THE HANDS OF THOSE WHO ARE ELIGIBLE.

>> I WANT TO END WITH YOU ON SPENDING.

AT THE SAME TIME THIS YEAR, THE STATE BUDGET IS INCREASING SPENDING BY ABOUT 9%.

IT'S ALMOST $20 BILLION OVER LAST YEAR.

I'M WONDERING FROM YOUR PERSPECTIVE AS SOMEBODY WHO MANAGES THE STATE'S MONEY, IS THIS LEVEL OF SPENDING, IF WE CONTINUE THIS RATE OF SPENDING INCREASES, IS IT SUSTAINABLE?

SHOULD WE BE PUTTING MORE MONEY INTO THOSE SAVINGS?

>> THAT'S WHERE WE REALLY HAVE TO SEE WHAT THE FINANCIAL PLAN LAYS OUT, TO SEE THE OUTYEARS IT'S A GREAT QUESTION BECAUSE WE'RE SPENDING ALL OF THIS MONEY ON ALL THESE DIFFERENT INITIATIVES BUT NO ADDITIONAL MONEY TO THE RAINY DAY FUNDS TO THE STATUTORY RESERVE FUNDS.

IT'S A MISTAKE.

WE'VE BEEN SAYING THIS, GOOD TIMES OR BAD TIMES, YOU REALLY NEED TO BEEF UP THE RESERVES.

WE HAVEN'T DONE AN ADEQUATE JOB OF DOING THAT AT ALL IN NEW YORK.

WE'RE BEHIND OTHER STATES IN THAT REGARD.

MISSED OPPORTUNITY, YOU KNOW, FROM MY PERSPECTIVE.

THE REAL QUESTION ABOUT SUSTAINABILITY, I THINK IS ABSOLUTELY KEY IN TERMS OF THE STATE'S LONG-TERM FISCAL HEALTH.

WE HAVE NEVER DONE AN ADEQUATE JOB OF ALIGNING RECURRING SPENDING WITH RECURRING REVENUE.

IS IT SUSTAINABLE LONG TERM?

YOU KNOW, OBVIOUSLY THE LEGISLATURE AND THE GOVERNOR ARE HOPING AND EXPECTING THAT IT WILL BE.

BUT WE'RE GOING TO HAVE TO TAKE A HARD LOOK AT THAT FINANCIAL PLAN TO BET SOME PRELIMINARY ANSWER TO THAT QUESTION.

>> STATE COMPTROLLER TOM DINAPOLI, THANK YOU SO MUCH FOR YOUR INSIGHT.

[ THEME MUSIC ] >> SO BE ON THE LOOKOUT IN THE NEXT FEW WEEK FOR A FULL REVIEW FROM THE COMPTROLLER'S OFFICE BUT IN THE MEANTIME, LET'S HEAR FROM THIS WEEK'S PANEL.

KAREN DEWITT IS FROM NEW YORK STATE PUBLIC RADIO AND BILL MAHONEY IS FROM POLITICO.

THANK YOU BOTH FOR BEING HERE >> IS INTO TO BE HERE >> KAREN, I WANT TO START WITH YOU.

THIS IS A VERY STRANGE BUDGET IN THE FACT THAT FOR THE PAST TEN OR SO YEARS, THE GOVERNOR HELD AN IRON GRIP ON THE STATE BUDGET PROCESS PARTLY BECAUSE OF WHO HE IS AND IT'S PARTLY BECAUSE OF HOW THE BUDGET PROCESS IS SET UP IN NEW YORK STATE.

THIS YEAR, THE GOVERNOR IS FACING ALL THESE CONTROVERSIES.

HOW DID WE SEE THAT PLAY OUT IN THIS YEAR'S BUDGET PROCESS?

>> WE SAW THE LEGISLATURE, PARTICULARLY THE PROGRESSIVE WING AND THE DEMOCRATS, GET A LOT OF THINGS THAT THEY WANTED.

THEY HAD TO MAKE SOME COMPROMISES.

THEY GOT $4.3 BILLION IN NEW TAXES.

THEY WANTED 7.

THEY GOT A FUND FOR EXCLUDED WORKERS, FOR UNDOCUMENTED IMMIGRANTS WHO COULDN'T GET UNEMPLOYMENT DURING THE PANDEMIC AND THEY GOT AFTER 15 YEARS THIS CAMPAIGN FOR FISCAL EQUITY COURT ORDER FINALLY FULFILLED, THAT ORDER IN 2006 SAID THAT NEW YORK HAD TO SPEND BILLIONS MORE DOLLARS ON SCHOOLS.

AND GOVERNOR CUOMO-- IT KIND OF FELL APART IN THE GREAT RECESSION.

IT WAS SUPPOSED TO BE FUNDED AND IT FELL APART IN THE GREAT RECESSION.

GOVERNOR CUOMO SAID WE DON'T NEED THAT.

WE FULFILLED IT ANYWAY HE AND DIDN'T WANT TO DO THAT.

NOW THAT IS IN THERE AND THE SPENDING IS UP 9% AND THE GOVERNOR TRIED TO KEEP IT AT 2% FOR YEARS.

SO REALLY, IT'S NOT HIS BUDGET, THAT'S FOR SURE.

>> RIGHT.

AS WE SAID IN THE SHOW BEFORE THIS, THE 9%, IT DOESN'T SOUND LIKE THAT MUCH TO PEOPLE AND WE'RE TALKING ABOUT $18 BILLION IN NEW SPENDING.

IT'S CERTAINLY NOT A SMALL NUMBER.

THERE'S QUITE A LOT TO GO THROUGH.

>> I HAVEN'T SEEN THAT SINCE THE PATAKI ERA.

>> IT'S A LOT AND FINANCED PARTLY BY THE NEW TAXES ON THE WEALTHY.

PARTLY BY FEDERAL AID.

BILL, I WANT TO GO TO YOU.

BECAUSE WE HAD SOME INTERESTING DYNAMICS IN THE BUDGET.

NOT OWN ONLY BETWEEN THE GOVERNOR AND THE LEGISLATURE BUT WITHIN THE LEGISLATURE, ITSELF.

WE LIKE TO THINK THAT MAYBE DEMOCRATS ARE GOING TO BE ON THE SAME PAGE ABOUT EVERYTHING IN THE BUDGET PROCESS, BUT THIS YEAR, WE SAW A REALLY CLEAR DIVIDE IN DEMOCRATS IN THE CHAMBER.

TELL ME WHAT HAPPENED.

>> THE FIGHT THIS YEAR LARGELY SEEMED TO BE BETWEEN VERY PROGRESSIVE, YOUNG DEMOCRATS IN THE STATE LEGISLATURE AND MORE MODERATE, WELL-TENURED DEMOCRATS AND WE SAW THIS ESPECIALLY WITH THE EXCLUDED WORKERS FUND, THIS PROGRAM SET UP TO GIVE A $1.2 BILLION IN AID TO UNDOCUMENTED IMMIGRANTS THAT WEREN'T ELIGIBLE FOR AID.

A LOT OF SUPPORTERS WERE GUNG-HO IN INCREASING THIS MORE THAN THE $1.2 BILLION AND RELAXING THE STANDARDS FOR GETTING THE MONEY AND WE'RE ON A WAR PATH FOR A SOLID WEEK.

CALLING PEOPLE FOR SUPPORT BY MORE THAN A BILLION DOLLARS AS RACISTS AND XENOPHOBES AND MORE FIGHTING THAT I HAVE SEEN DURING A BUDGET SEASON IN QUITE SOME TIME.

WE SAW A RALLY JUST EARLIER THIS WEEK WHERE, YOU KNOW, THEY'RE CALLING OUT A COUPLE OF MODERATE TESTIMONY DEMOCRATS FROM WESTCHESTER BY NAME SAYING THAT THEY'RE STANDING WITH RACISTS AND THINGS LIKE THAT.

SO IT WAS MORE HIGH TENSION WITH IN THE LEGISLATURE, ITSELF, THAN IT NORMALLY IS.

>> I WAS GOING TO SAY KUDOS TO YOU, BILL, FOR LISTENING TO ALL THOSE HOURS OF DEBATE.

I HAVE TO SAY I COULD NOT LISTEN TO EVERY HOUR.

THAT WAS BURIED IN ABOUT WHAT?

ABOUT SIX HOURS OF DEBATE IN THE ASSEMBLY WHERE THEY SLOWLY TURNED THEM INTO CHANGING THEIR MINDS ON THEIR VOTES.

>> WE DID SEE WHEN THEY WERE PASSING THE BIG BILL IN THE ASSEMBLY A COUPLE OF DAYS AGO ON WEDNESDAY, SOME OF THE SOCIALISTS, THE PEOPLE WHO RAN PROMISING TO NOT VOTE FOR ANY BILLS, THAT CAME WITH MESSAGES OF NECESSITY.

PROMISING A VOTE AGAINST THE BUDGET THAT DIDN'T CONTAIN BILLIONS OF DOLLARS MORE OF NEW TAXES THAN THIS ONE HAD.

THEY GAVE SPEECHES TALKING ABOUT HOW AWFUL THIS BUDGET WAS AND HOW THEY WERE VOTING NO.

WE SAW PUSHBACK ON THE FLOOR FROM LEADERSHIP, LIKE CRYSTAL PEOPLES-STOKES GAVE A SPEECH SAYING PART OF BEING A LEADER IS COMPROMISE AND YOU CAN'T ALWAYS GET 100% OF WHAT YOU WANT AND IF THAT'S WHO YOU WANT TO BE, YOU ARE IN THE WRONG PLACE TO GET THINGS DONE.

WE SAW IT WAS FULL.

THREE SAID THEY WERE SAYING NO AND LATER THERE WERE SPEECHES THAT THEY WERE CONCERNED THE BUDGET WOULD FAIL IF THEY VOTED NO WHICH IS WHAT THEY THOUGHT WAS AWFUL AND THEY'RE FLIPPING TO YES.

THE NUMBERS WERE BROUGHT INTO SHAPE MORE PUBLICLY THAN YOU OFTEN SEE.

>> RIGHT.

>> THERE WAS PRESSURE FOR MEMBERS TO SWITCH THEIR VOTES AND BE TEAM PLAYERS.

IT'S RARE THAT YOU SEE SOMEBODY CAVE IN A PUBLIC FASHION AS WE SAW THIS WEEK.

>> I THINK SOME OF THAT IS A LEARNING CURVE.

THEY REALIZE WHEN YOU GET IN GOVERNMENT EVENTUALLY YOU HAVE TO COMPROMISE ON A FEW THINGS.

YOU'RE RIGHT.

WE WON'T SEE THAT PLAY OUT PUBLICLY.

THAT'S BEHIND THE SCENES.

>> WE SAW IN 2019 NOW THAT I'M THINKING ABOUT IT AFTER THE DEMOCRATS TOOK THE MAJORITY IN THE SENATE.

WE HAD A LOT OF THESE VERY NEW, VERY PROGRESSIVE LEGISLATORS AND I'M THINKING ABOUT ALEXANDER AND JULIA SALAZAR AND THEY CAME IN WITH A LOT OF ENERGY AND THEY STILL HAVE THE ENERGY.

THEY LEARNED QUICKLY BECAUSE THEY SHARE A CERTAIN SET OF VALUES, THEY'RE NOT GOING TO BE ABLE TO INFLUENCE 30 OTHER MEMBERS TO ALIGN WITH THOSE VALUES.

>> YEAH.

BUT THEY'RE STILL NOT HAPPY WITH THAT, AND THEY ARE STILL TRYING AND I THINK THAT THIS REALLY ENERGIZES PEOPLE LIKE THE ONES YOU JUST MENTIONED, THE MORE LIBERAL PROGRESSIVE SENATORS AFTER THIS BUDGET THAT CAME OUT.

THEY'RE THINKING, THIS IS JUST THE BEGINNING.

WE'RE GOING TO DO MORE BECAUSE THEY STILL HAD A NUMBER OF TAX INCREASES THAT THEY WANTED THAT THEY DIDN'T GET.

SO I THINK WE'RE REALLY GOING TO SEE THAT THEY'RE DEFINITELY ENERGIZED NOW >> I THINK NEXT YEAR IS GOING TO BE CRITICAL POLITICALLY BECAUSE WE HAVE THE RACE FOR GOVERNOR, WHICH ANDREW CUOMO MAY OR MAY NOT BE.

[LAUGHTER] >> WILL HE BE GOVERNOR IN A YEAR?

SERIOUSLY, RIGHT?

>> EXACTLY.

HE SAYS HE'S GOING-- WELL, I DON'T REALLY KNOW.

I DON'T WANT TO SAY.

HE MAY OR MAY NOT RUN.

THEY MAY BE MORE TO THE LEFT AND THAT MIGHT INFLUENCE PRIMARIES IN THE LEGISLATIVE LEVEL WITH THESE LONG-STANDING ESTABLISHMENT DEMOCRATS AND I THINK IT MAKES THESE NEXT FEW MONTHS EVEN MORE CRITICAL FOR THEM BECAUSE THE SESSION ENDS IN JUNE.

THERE ARE LIMITED WEEKS LEFT TO GET THINGS DONE.

CAN THESE ESTABLISHMENT DEMOCRATS PUT THEMSELVES OUT THERE AND SAY, DON'T PRIMARY ME.

KAREN, THAT BRINGS ME TO THIS BUDGET IS SO PACKED WITH SO MANY DIFFERENT THINGS.

WHAT ARE WE GOING TO DO FOR THE NEXT TWO MONTHS?

>> WELL, THERE ARE A COUPLE OF THINGS ACTUALLY ON THE AGENDA, AND ONE OF THEM IS MAKING TAKEOUT ALCOHOL PERMANENT.

GRANTED NOT A BIG DEAL BUT A BIG DEAL TO RESTAURANTS THERE'S ALSO THIS TALK OF ADULT VICTIMS ACT BASED ON THE CHILD VICTIMS ACT THAT THIS WOULD BE FOR SEXUAL ASSAULT AND SEXUAL HARASSMENT SURVIVORS, THAT THEY COULD FILE CIVIL SUIT EVEN IF THE STATUTE OF LIMITATIONS HAS RUN OUT, WHICH WOULD GOVERNOR CUOMO AND HIS CURRENT TROUBLES IN AN AWKWARD POSITION.

DOES HE SUPPORT THAT BILL?

DOES HE SIGN IT?

AND YEAH.

THERE'S NOT A LOT OF BIG THINGS LEFT, I DON'T THINK.

>> THERE'S A GOOD CHANCE THAT THE TALK WILL COME FAR AWAY FROM THE STANDARD LEGISLATIVE STUFF.

IN THEORY, THE NEXT POINT IN THE NEXT COUPLE OF MONTHS, WE WILL NEED TO HAVE A CONVERSATION ABOUT THROWING OUT OUR MASKS AND REOPENING EVERYTHING THAT'S BEEN CLOSED AND A LOT OF THIS COVID RECOVERY WALKING BACK FROM THIS STUFF IS PUT INTO PLACE LAST YEAR.

THAT'S GOING TO BE TALKED ABOUT MORE AND MORE.

AND AT THE SAME TIME, I DO THINK THIS TALK ABOUT IMPEACHMENT IS PROBABLY NOT GOING AWAY AND THERE'S A GOOD CHANCE THAT COME JUNE THAT WE'LL BE ON THE TABLE MORE THAN IT HAS BEEN IN THE PAST COUPLE OF WEEKS AS WE'VE BEEN FOCUS ON THE BUDGET.

THAT BEING SAID, BECAUSE OF THAT, I WOULD NOT BE SURPRISED THAT GOVERNOR CUOMO COMES UP WITH SOME OUT OF LEFT FIELD MAJOR NEW POLICY PROPOSAL SO THE TALK TURNS BACK TO THTHAT RATHER THAN IMPEACHMENT.

>> WE ALSO HAVE THE ATTORNEY GENERAL'S REPORT OF THE ALLEGED SEXUAL HARASSMENT AND TWO FEDERAL INVESTIGATIONS.

SO THE OUTCOME OF THOSE IS REALLY GOING TO DETERMINE A LOT OF WHAT GOES ON FOR THE REST OF THIS YEAR.

>> I GOT TO TELL YOU, NOW THAT I THINK ABOUT IT, THIS IS THE FIRST TIME IN THIS EPISODE OF "NEW YORK NOW" THAT WE HAVE EDGES INNED THE IMPEACHMENT OF THE GOVERNOR AND THE INVESTIGATION IS ONGOING AND WE DON'T REALLY KNOW A TIME LINE BUT HOPEFULLY WE WILL SEE AN UPDATE IN THE NEXT FEW WEEKS.

WE HAVE TO LEAVE IT THERE.

KAREN DEWITT FROM NEW YORK STATE PUBLIC RADIO.

BILL MAHONEY FROM POLITICO, THANK YOU VERY MUCH.

WE'LL SEE YOU BACK NEXT WEEK.

THANK YOU FOR WATCHING THIS WEEK'S "NEW YORK NOW."

HAVE A GREAT WEEK AND BE WELL.