Jan 12
2024
What’s included, and missing, in Hochul agenda
This story originally appeared in New York Focus, a nonprofit news publication investigating power in New York. Sign up for their newsletter here.
IT WAS THE FIRST in a series of big days in Albany. At 1 pm Tuesday, Governor Kathy Hochul gave her 2024 State of the State address, outlining the past year’s achievements and the coming year’s priorities. The speech kicked off what’s sure to be a tense legislative session, as November’s elections loom and the governor and legislature work through their frosty relationship. We looked out for the year’s big political fights.
New York Focus had five reporters in the Capitol Tuesday, plus several more following along from home. We tracked Hochul’s every word — and those she omitted. We updated this page throughout the address, so check out our posts below to get a sense of what we were watching. Once it was over, we took a look at what she didn’t say.
The State of the State is just the curtain-raiser for New York’s budget process — where Hochul proposes one set of spending priorities, the two legislative chambers put forth their counter offers, and they fight about it until they can pass the year’s biggest package of bills. Have questions you want us to answer? Send them in here.
Update: As of 3:49 pm, the live blog is closed.
JUMP TO TOPICS
What she didn’t say: Reshuffling RENEWABLES | New resources for HOMELAND SECURITY | Cracking down on WAGE THEFT | Boosting the WORKFORCE | Reforming ENVIRONMENTAL HOUSING regulations | Faster LIQUOR LICENSING | Opioid TREATMENT CENTERS | Keeping New York COOLER | Aspirational DEVELOPMENT | Clean WATER INVESTMENT
The address, as it happened: Taylor Swift’s PHILOSOPHY | Optimism, without CLIMATE CHANGE | Imagining AI POSSIBILITIES | The future with MICRON | No more suing for MEDICAL DEBT | Another crack at HOUSING | Mental health INSURANCE COVERAGE | “Chaos” in RETAIL | A crisis of MENTAL ILLNESS | Social media ADDICTION | Policing DOMESTIC VIOLENCE | How to teach READING | Forget IMMIGRATION | Accessing CHILD CARE | Excitement over HEAT
Things we listened for: Housing, AGAIN | Blowing past CLIMATE DEADLINE | Funding AI RESEARCH | The state of MENTAL HEALTH NEEDS | Economic development OUTLOOK | Resisting NEW TAXES | Dealing with the OPIOID EPIDEMIC | Hochul’s own HEAT ACT
WHAT SHE DIDN’T SAY
Renewables reshuffle
Perhaps the most glaring omission from Hochul’s speech was any substantive discussion of climate change, which got just one passing mention.
“We’re enacting a vision of New York where veterans who embark on incredible careers fighting climate crisis, in green energy, offshore wind,” she said. “Where unions are strong and our infrastructure is resilient to withstand those 100-year storms.”
That’s sure to disappoint climate hawks. “So alarming!!!” said Liz Moran, northeast policy advocate at Earthjustice, over text.
The snub comes at a moment when the state’s energy transition is going through a major reset: Wind and solar developers have canceled scores of projects in recent months after the state refused to hike subsidies in response to inflation. That’s imperiled the state’s target of getting 70 percent of its energy from renewables by 2030, and left green groups eagerly awaiting fresh plans to close the gap.
Hochul’s briefing book zeroes in on one key obstacle to the energy transition: the lack of power lines to move energy around. She points out that it can take two years for a new transmission line to even get a permit, jeopardizing the broader renewable energy buildout.
But it’s unclear how far her proposed solutions will go. For one, she’ll direct regulators to consider employing both carrots and sticks to spur utilities to build more and faster interconnection. Her other main proposal is an administrative reshuffle aiming to create “a one-stop shop for the environmental review and permitting of major renewable energy and transmission facilities.” Dubbed the Renewable Action Through Project Interconnection and Deployment (RAPID) Act, the legislation would move the state’s Office of Renewable Energy Siting (ORES) into the Department of Public Service, which regulates energy and utilities.
“The state’s transmission permitting process will now feed into a clear statutory framework that balances transparency and environmental protection with the need for fast decision,” the book reads.
Buy your tickets to iPost’s event on labor issues Feb. 7
Anne Reynolds, executive director of the Alliance for Clean Energy NY, played down the rumored move when asked about it last week.
“From our point of view, it wouldn’t necessarily change much,” Reynolds said. “I’m assuming that it’s more an administrative change, so that ORES has an institutional home with more energy focus.” But she holds out hope that it could speed up permitting, which has been a major hurdle to the state’s renewables buildout.
Reynolds added Tuesday that she was expecting Hochul to include an announcement about energy storage, but that it got left out. – Colin Kinniburgh
Homeland Security and Emergency Services
The State of the State book announced “significant new resources” for New York State’s Division of Homeland Security and Emergency Services (DHSES), which will put more “boots on the ground, improve training and preparedness, and address evolving threats as they come.” The state office takes the lead in responding to both weather-related and human-caused emergencies in New York.
Last year, a consulting firm retained by DHSES issued a report reviewing the office’s response to a December 2022 blizzard in Buffalo that killed 47 people. The report, issued by Guidehouse Inc., stated DHSES did not activate its emergency operations center until the morning whiteout conditions began, and that some staff had previously been unavailable because of holiday plans. The report did find that by the time the storm hit “all positions and responsibilities were covered.”
In her briefing book, Hochul is also proposing new measures to combat flooding, including directing DHSES to supply local and county partners with “additional generators, high-flow pumps, and flood barrier technology.” – Chris Bragg
Wage theft
In her briefing book, Hochul pledged to “continue to prioritize cracking down on wage theft” — language that clashes with the “hands-off” approach to wage enforcement that Department of Labor staffers described to New York Focus over the summer.
The labor department has seen a steep decline in the amount of stolen wages it has recovered since the pandemic — a trend that the agency staffers attributed largely to workforce problems like severe understaffing and low pay for labor investigators. Perhaps Hochul’s most prominent policy effort to bolster wage theft enforcement to date came in July 2022, when she publicly broadcast a wage theft task force of state and county prosecutors. Experts said the group had already been coordinating their efforts against labor violations with the state for decades.
Hochul made no direct allusion to staffing in the section of her book on wage enforcement — and no direct mention of it in her speech — but she identified the ways that businesses avoid enforcement through accounting loopholes and declarations of bankruptcy as a major obstacle for the labor agency. To remedy this, she proposed “giving DOL more tools to address these enforcement challenges,” language that suggests an openness to solutions like the SWEAT Act, a long-stalled bill to give workers the ability to place a lien on their employer’s assets to prevent them from eluding prosecution. – Max Parrott
Workforce development
Also mentioned in her book, but not in her speech, was the Governor’s plan to bolster workforce development, a repeat goal from last year’s address. She’s proposing youth apprenticeship programs and expanding an existing pilot program called Teacher Ambassador that helps teachers and counselors prepare students for the workforce. The expansion would double the number of participating teachers statewide to 60.
Hochul also wants to create a new office to track data on the state’s workforce development initiatives and see where the biggest impacts are. The Office of Workforce Development and Research could help steer funding, which lawmakers say needs to be spent faster. – Arabella Saunders
Environmental law reform
Hochul is putting forward another housing measure, but did not mention it in her speech: reforming the State Environmental Quality Review Act, a law meant to protect the environment against overdevelopment. It’s a wonky subject, but one that may be key to taking on the state’s housing shortage. Even if they don’t succeed in blocking new housing, lawsuits based on the act can drag on for years and impose punishing legal fees on builders.
Under the law’s current format, private citizens or groups can sue to stop projects on grounds ranging from wildlife habitats to traffic patterns, making it an effective tool for well-heeled communities to fight any development they don’t like. Hochul said she wants the state’s Department of Environmental Conservation to streamline the regulations that govern how the act is applied in order to “promote environmentally friendly housing growth.” This wouldn’t require action from the legislature.
It’s not clear from the written how much of an effect this would have, nor how far these changes would go. Changes to the regulations would likely leave the law’s basic structures in place, including the ability of private actors to sue to stop projects for a wide range of reasons.
Michael Gerrard, a professor at Columbia Law School an environmental law expert, said that revisions to the regulations would amount to “tweaks that could make it easier to build housing,” but that the measure “does not seem to be proposing any fundamental change.” – Sam Mellins
Liquor licensing
Hochul is proposing measures to reduce the wait time for bars, restaurants, and others in the alcohol business to gain approval for a liquor license — a problem that has plagued the State Liquor Authority in recent years.
According to Hochul’s briefing book, the average processing time for license applications operating under a temporary retail permit — which allow the service of alcoholic beverages while licenses are pending — is approximately nine months, with a current backlog of approximately 6,000 applications.
The SLA is now appointing a committee to review and process the backlog within six months, and aims through procedural changes “to shorten wait time significantly.“
The longtime chairman of the SLA, Vincent Bradley, was reportedly forced out of the agency by Hochul last June. During Bradley’s eight-year tenure, the waiting time for licensing approvals increased fourfold, according to the Albany Times-Union. – Chris Bragg
Almost Anything About the Opioid Crisis
Though Hochul briefly touted the fast rollout of opioid settlement funds, the opioid crisis received little substantive discussion in her speech. There wasn’t much new in the strategy outlined in the briefing book, either; most of the points made were rehashes of existing policies, such as expanding harm reduction and access to medication-assisted treatment.
Hochul didn’t address a recommendation from her own advisory group, the Opioid Settlement Fund Board, to declare the crisis a public emergency.
Nor did she offer a specific strategy for reducing the impact on Black and Latino New Yorkers, who saw the most significant increase in overdose deaths this past year.
And she didn’t address the state’s overdose prevention centers, which represent one of the most fiercely contested issues in drug policy. Hochul’s administration has come under fire from progressive policy advocates for refusing to direct opioid settlement funds to the sites, while other states have moved forward with plans to expand similar harm reduction locations. A coalition of 111 organizations published a letter yesterday reiterating the demand, and the Opioid Settlement Fund Board issued a memo once again pushing her to approve the sites.
“Gov. Hochul cannot tout that she’s leading the nation on the overdose crisis when there is a nation-leading intervention in the state that she is turning her back on,” said Jasmine Budnella, director of drug policy at Vocal New York. “She doesn’t have much to tout on the issue.” – Spencer Norris
Cooling centers for a changing climate
Global warming is pushing temperatures in New York to deadly highs. In New York City alone, heat kills an estimated 370 people every summer. In her briefing book, Hochul announced that she will expand a program to fund cooling systems in schools, which can serve as cooling centers for the general population during heat waves. She also plans to add coverage for ACs for New Yorkers with asthma who are enrolled in the state-run Essential Plan. And she proposed a $150 million program to build pools, pay lifeguards, and fund swimming instruction, which her office calls the “largest statewide investment in swimming since the New Deal.”
The proposals don’t touch on the state’s primary program to protect poor people from extreme heat: the Heat Energy Assistance Program cooling assistance program. That program has quickly run out of money and had to close its doors to applicants for at least two years in a row. Even as demand for the program increases, Hochul reduced its funding this year by $3 million. – Akash Mehta
Build it and they will come
Mentioned in her briefing book, but not in her speech, was Hochul’s proposed increased investment in “shovel-ready” sites — like the STAMP industrial park in Genesee County — to attract businesses. In 2022, Hochul created the Focused Attraction of Shovel-Ready Tracts New York (FAST NY) program and promised $200 million in state funds to develop industrial sites for manufacturing and distribution. Shovel-ready sites are a part of a “build it and they will come” philosophy — and corporate subsidy watchdogs warn against it.
“The Governor’s ‘shovel-ready sites’ proposal is based on wishful thinking and a callous disregard for recent history,” said Michael Kink, executive director of the Strong Economy for All Coalition. “Sadly, Kathy Hochul and Andrew Cuomo have a proven track record of scandalous failure when it comes to spending public money to create factories for hypothetical future businesses, including this week’s $100 million debacle in DeWitt.” – Arabella Saunders
Water infrastructure
Hochul’s briefing book announced that 2024 would be “a new era of clean water investments,” but she did not mention the proposal in her speech. It’s not yet clear whether she plans to significantly increase spending: The book said Hochul will build on previous investments made under the 2022 environmental bond legislation that created $4.2 billion in revenue for climate resilience and environmental spending, and would make a “continued commitment” to the 2017 Clean Water Infrastructure Act.
Environmental groups including Environmental Advocates of NY, a statewide organization, and Citizens Campaign for the Environment on Long Island had requested $600 million this year for the Clean Water Infrastructure Act, up from the current $500 million funding level.
“We’ll need to see how much is actually invested in the budget text,” said Rob Hayes, the Director of Clean Water for Environmental Advocates NY. “With so many threats to clean water across the state, this is the year to bump funding to fix our pipes up to $600 million.” – Julia Rock
LIVE BLOG
Taylor Swift?
Hochul cited “the philosopher Taylor Swift” in her closing comments.
“Everybody here ‘was someone else before,” the governor said. Though different, she said, “they still stand side-by-side on the subway.”
The song “Welcome to New York” played at the end of the speech. – Arabella Saunders
Climate?
Wrapping up her speech, Hochul said “I can understand why some people feel that the sun is setting on the Empire State,” then pivoted to an optimistic message.
She mentioned “the welcoming smile of bodega owners making a bacon egg and cheese in the morning.” She hadn’t discussed the climate.
“Race to the future” with AI
“Just imagine the possibilities,” Hochul said, proposing to make New York the nation’s leader in artificial intelligence research. She wants to achieve this by using $275 million in state funds to start Empire A.I., an artificial intelligence research consortium with a center in upstate New York. Part of Hochul’s justification for funding the research center is that the “infrastructure is increasingly concentrated in the hands of large, well-funded multinational technology companies that maintain outsized control.”
But the actual buildout will be an expansive and complicated undertaking, and experts are urging the state to proceed with caution.
Oren Etzioni, the former technical director for the Allen Institute for Artificial Intelligence told The New York Times: “Is this going to reinvent the wheel in order to put a Big Apple stamp on it, or a New York State stamp on it? That could be very worrisome.” – Arabella Saunders
Micron’s promised jobs
“Just look at what Micron’s historic $100 billion investment is doing for Central New York,” the governor urged five pages into her 181-page briefing book. There are few things New York politicians prefer to talk about than the 2022 deal to create a giant computer chip factory just north of Syracuse, in return for up to $5.5 billion in state tax breaks. It’s a fixture in TV ads, was namechecked in the Senate Majority Leader’s own opening salvo last week, and been touted by President Joe Biden.
Yet Micron has not made a $100 billion investment, or even promised to. The much-quoted figure comes from the company’s press release announcing the deal, in which it said it “intends to invest up to $100 billion over the next 20-plus years.” (The italics are ours, as you may have guessed.) Just a month later, Micron announced it would cut memory chip production by 20 percent. Two months after that, it laid off 10 percent of its workforce. Micron’s stock did well in 2023, but its revenue was down by nearly 50 percent by the end of the year.
“We’re bringing in 50,000 jobs and boosting the entire local economy, from high-paying tech jobs to construction jobs to the restaurants and small businesses that will flourish as a result,” Hochul continued in the book. But even if Micron did meet its “potential” to create that many jobs, as the company has described the projection, only 9,000 of them would be at the plant itself. Taking the rosy forecasts at face value, the Micron deal will cost New York taxpayers over $600,000 per job at the factory. – Akash Mehta
Halting medical debt lawsuits
Hochul referenced a proposal to limit hospitals’ ability to sue low-income patients for medical debt. As we covered in October, most hospitals rarely sue patients for debt — but some do, aggressively. And in 98 percent of cases, patients don’t even defend themselves, leaving hospitals to win by default.
Read our past coverage: Despite State Measures, New Yorkers Fear Health Care Over Medical Debt Lawsuits – Akash Mehta
A scaled-back housing agenda
Hochul is now discussing how the high cost of housing is driving people out of New York. “People aren’t moving for warmer weather or lower taxes,” she said, noting that New Jersey, Pennsylvania, and Connecticut are 3 of the top 5 states that New Yorkers are moving to.
Housing was front and center as Hochul’s signature issue last year, but no longer. She’s focusing on it only well into the speech, and with the frank recognition that what she’s proposing isn’t enough to solve New York’s housing cost and supply crisis.
The more ambitious policies she’s proposing focus on New York City, where she wants to lift a state-imposed cap on the height of residential buildings, legalize basement apartments, and offer tax breaks for developers that convert offices to housing or build new mixed-income housing. That last provision has been rejected by the legislature two years in a row after a similar tax break expired in 2022. Third time’s the charm?
The rest of the state received comparatively little attention. She’s proposing directing funding towards building housing on state-owned land, and financially rewarding towns that prioritize housing, but is clear that these steps won’t go that far relative to need. The reward program is in part meant as a test of whether “stronger mechanisms are needed” to get towns to start building, her written agenda said. That’s code for a threat to bring back a proposal from last year that would have forced towns to add new housing or risk having their local zoning overridden. That too was rejected by the legislature. – Sam Mellins
Expanding insurance coverage for mental health
“For too long, many insurance companies have refused to adequately pay for mental health support,” Hochul said. New regulations would up reimbursement rates while requiring insurers to provide out-of-network coverage, with the threat of fines for failure to comply.
In November, her administration issued $2.6 million in fines against insurance companies that inappropriately denied claims and failed to reimburse at the appropriate rates for behavioral health. – Spencer Norris
Retail theft
After declaring “the chaos must end,” to a quick round of applause, Hochul proposed a plan to combat retail theft. She promised a joint federal, state, and local operation that includes a tax credit to cover additional security and a new state police unit.
According to Hochul’s briefing book, larceny crimes per 100,000 residents in 2022 increased 20 percent statewide. Nationally, despite considerable panic over shoplifting, retail theft is actually down from 2019 – but New York is an outlier, with reported shoplifting increasing 64 percent since 2019. – Arabella Saunders
Addressing mental health
“New Yorkers will not be able to let their guard down until we fix our mental health system,” Hochul said, calling it the “defining issue” of our time. She pledged to expand outpatient care and establish new housing for people with mental health concerns, but did not elaborate on whether there has been any progress in her existing plans to roll out 3,500 housing units.
Hochul pledged to expand inpatient psychiatric care, with a plan to open 200 new beds, according to the state of the state book circulated by her administration ahead of her speech. But the plan is a minor dent in a nearly decade-long decline in service access. The number of psychiatric beds in New York declined 20 percent from 2014 to 2022, from 9,320 to 7,471.
The governor also plans to double down on criminal justice measures to deal with the state’s mental health crisis. While she didn’t address it in her speech, the state plans to intensify parole supervision, create a new team at the Office of Mental Health that will coordinate with law enforcement, and expand the state’s mental health courts, according to the planning document.
A spokesperson for Senator Jessica Ramos, who sponsors a bill expanding both mental health courts and the number of defendants eligible for them, said that Hochul’s proposal was a positive step.
“Mental health courts are proven to be effective,” the spokesperson said. “Senator Ramos has been pushing to expand access and diversion infrastructure for years through her Treatment Not Jails bill, and we look forward to making sure the best version of this plan makes it in the final budget.”
New York’s Chief Judge Rowan Wilson also supports expanding mental health courts, making this measure a point of agreement between all three branches of government. The judiciary’s budget request for the upcoming fiscal year sought a $1.3 million boost in funding for the system.
Hochul announced that state agencies will issue new regulations requiring hospitals to screen patients for substance use and mental health concerns, as well as set up aftercare and psychiatric appointments for them. While these practices are already in guidelines issued by the Department of Health and Office of Mental Health, they aren’t required.
Hochul also said the state plans to expand mental health resources for youth, and announced that New York will continue to build out a program that provides wraparound services for youth and to fund mental health clinics in any school that wants to create one. – Spencer Norris and Sam Mellins
Limiting social media
Hochul is renewing her call to curb the use of “addictive” social media by children — and the proposal has already generated plenty of Albany lobbying from tech titans.
Hochul and Attorney General Letitia James, along with state lawmakers, first introduced the idea in October. The Stop Addictive Feeds Exploitation for Kids Act would require social media companies to restrict “addictive features that harm young users the most.” It would allow users under 18 to receive a default chronological feed from social media users they already follow — the way that social media feeds functioned before the advent of addictive feeds, according to Hochul’s State of the State briefing book.
Parents would be allowed to block access to social media platforms between certain hours and prohibit social media companies from sending notifications to minors between certain hours without parental consent. Under the bill, James’s office would be empowered to bring actions with civil penalties up to $5,000 per violation.
According to state lobbying records, major tech and multimedia companies promptly started lobbying the legislature, Hochul’s office, and James’s office. The companies included Yahoo (through the lobbying firm Brown & Weinraub), Roblox Corporation (through the firm Hill, Gosdeck, McGraw & Nemeth), Meta Platforms, NBC Universal, TikTok (using Statewide Public Affairs), and others.
According to the California nonprofit news outlet CalMatters, various proposals seeking to regulate childrens’ use of social media have been pursued in California, Utah, Arkansas, New Jersey, and Minnesota. – Chris Bragg
Law enforcement and domestic violence
Hochul is signaling her support for law enforcement. She announced that firearms and domestic violence have created an “atmosphere of anxiety” and that she will support measures to strip domestic abusers of firearms.
She also declared that she wants to codify a series of new offenses as prosecutable hate crimes and claimed that criminal prosecution for domestic abuse is the best way to protect victims. – Spencer Norris
Teaching reading
The governor expanded on her recently announced plans to overhaul the way reading is taught throughout New York by requiring teachers to utilize the Science of Reading technique when providing literacy instruction. The Science of Reading is an evidence-based approach to teaching literacy, focusing on phonics and vocabulary, as opposed to a popular approach called “balanced literacy,” which focuses on context clues and independent reading. Balanced Literacy has come under fire in recent years as literacy proficiency has lagged.
New York City and more than 30 states around the country have overhauled their literacy instruction programs to prioritize the Science of Reading. Hochul’s plan, which she is calling “Back to Basics,” would provide $10 million in funding to get teachers around the state up to speed in this new approach, and help expand credentialing programs in SUNY and CUNY teacher training programs. – Rebecca Klein
Setting immigration aside
Hochul won’t address immigration in the State of the State. She said instead that she will present a plan for how the state will tackle the issue next week, when she presents her budget proposal.
By April, New York state is expected to spend nearly $2 billion on services for the more than 100,000 migrants who have arrived in New York City over the past year. Last year, Hochul warned that this pace of spending wasn’t sustainable and could endanger the state’s ability to pay for other services, like schools and health care. That could place her at odds with New York City Mayor Eric Adams, who is seeking additional help from the state and federal governments as the city faces the daunting prospect of shouldering up to $12 billion in migrant-related costs over the next three years. – Sam Mellins
Child care support
In a promotional video streamed before the governor’s address, the Hochul administration touted state-provided child care support. On December 22, Hochul vetoed a bill expanding access to child care, citing a cost estimate that experts say was inflated.
New York offers vouchers to about 58,000 families to help offset the soaring cost of child care. But parents only qualify for the assistance during the exact hours they’re at work or school, with no flexibility for running errands, seeing a doctor, caring for a sick relative, or other responsibilities. Navigating the system is especially difficult for parents with unpredictable work schedules, like nurses, restaurant workers, and gig economy workers. – Arabella Saunders
HEAT Act proponents cheer
While we wait for the address to begin, we know, thanks to Politico, that Hochul will propose to repeal the “100-foot rule” and other provisions of New York’s public service law that effectively require all utility customers to subsidize expansion of the gas system. But her plan will not go as far as the HEAT Act, which aims at a planned phaseout of gas distribution in favor of electrified heating and cooling.
Still, HEAT Act proponents are cheering Hochul’s proposal.
“Whooohooo!” said Jessica Azulay, program director of Alliance for a Green Economy, when asked for her reaction over text. “As the fossil fuel heating system continues to raise bills and threaten our futures, we are thrilled to see the Governor support major proposals to bring New Yorkers the cleaner heat and lower bills we need.”
“This is promising,” said Patrick McClellan, policy director at New York League of Conservation Voters. “It’s hard to see NY HEAT getting done without the Governor showing leadership on the issue so hopefully this is a sign that it will be one of the major environmental issues in the budget this year.” – Colin Kinniburgh
PREVIEW: What We’re Watching
Housing
Since last year’s legislative session ended without significant progress on New York’s housing crisis, Hochul has made the issue a major theme of her public appearances, promising ambitious action across the state. She has also abandoned last year’s plan to deal with it: using mandatory growth targets to add 800,000 new homes statewide. This year, I’m looking out for what will replace that plan. Will it be commensurate with the scope of New York’s housing need?
Last week, the Democrats who lead each house of the legislature said they wanted to take action on housing. Their goals, include measures to protect tenants, which hasn’t historically been a priority for Hochul. Will she nod to a potential compromise there, especially if it could help strike a deal on her goal of boosting tax breaks to spur development? – Sam Mellins
Missed Climate Deadline
The first day of 2024 marked a key milestone in New York climate politics: a major deadline in the state’s landmark climate law, intended to transition New York away from fossil fuels and direct climate investments to disadvantaged communities. It came and went with crickets.
Two of the state’s key climate agencies, the Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Agency (NYSERDA), are behind schedule to issue regulations. They’ve published only a “pre-proposal outline” of the state’s cap-and-invest program that leaves key details up in the air.
New York Focus asked the environmental coalition NY Renews — which is largely credited with the law’s passage — about the missed deadlines on Monday. Stephan Edel, the group’s executive director, said that some agencies, like DEC, are already “really working hard,” but others “will need legislation to try and push them.”
Hochul is likely to gloss over that missed deadline in her speech. But climate watchers will be waiting to see whether she puts more meat on the bones of cap and invest, a program that would set an economy-wide limit on carbon emissions and require emitters to buy “allowances” for every ton of pollution. Will we learn more about the cornerstone program of the state’s climate plan? Or will she focus on other elements of the green transition? – Colin Kinniburgh and Julia Rock
Artificial Intelligence
Hochul is proposing using $275 million in state funds to start Empire A.I., an artificial intelligence research consortium with a center in upstate New York. The state’s research institutions, like the State University of New York and the City University of New York, would share access to the center, and Hochul promises that the consortium will create jobs.
This proposal builds on existing economic development initiatives with a technology focus, like Micron in Syracuse and Plug Power at the STAMP industrial park in Genesee County. Experts are worried that the economic benefits and jobs promised to communities by projects like these won’t fully materialize. – Arabella Saunders
Mental Health
New York’s mental health crisis is ballooning. In last year’s State of the State, Hochul reported that as of 2019, 663,000 adult New Yorkers had a serious mental illness. In New York City, an estimated two out of five people with a mental health condition did not receive needed treatment. Paired with a burgeoning housing crisis, the toll has been crushing.
The governor has signaled that her administration will make mental health a cornerstone issue. In last year’s address, Hochul announced a $1 billion plan to reverse the tide by expanding access to services and creating 3,500 new housing units for people struggling with mental health. A year later, it remains to be seen how that vision will pan out.
The number of psychiatric beds in New York declined 20 percent from 2014 to 2022, from 9,320 to 7,471. Meanwhile, New York City has taken on a controversial policy that allows people suspected of having a mental illness to be involuntarily committed to psychiatric care. We’ll be watching for an update on the governor’s expansion plan — and whether Hochul will double down on the law enforcement approach New York City Mayor Eric Adams has taken. – Spencer Norris
Economic Development
New York funnels $10 billion a year into economic development incentives, while experts argue that the subsidies are a waste of taxpayers’ money. In last year’s address, Hochul proposed 15 new or expanding economic development incentives, including increasing subsidies to semiconductor manufacturers through the GREEN CHIPS program and creating a replacement for 421-a, the controversial program that gave tax breaks to housing developers in New York City. What will she propose this year?
Beyond incentives, I’m listening for announcements surrounding workforce development. Last year, Hochul announced the creation of the Office of Strategic Workforce Development. The state gave $350 million to Empire State Development and the Department of Labor to jointly develop the office. As of November, ESD has only spent $36 million, less than 25% of its $150 million in state grants. Lawmakers are unimpressed by the office’s slow spending. – Arabella Saunders
No New Taxes?
With tax revenue and federal dollars declining, the state faces an estimated budget gap of over $4 billion in the coming fiscal year. One way to plug that hole is by raising taxes, but Hochul has been firm that she isn’t interested, especially in an election year.
Another would be using some of the nearly $20 billion in rainy day funds that the state has built up mostly under her watch, but Hochul has expressed that she doesn’t want to do that either. The budget gap could shrink, if tax returns come in higher than expected. But if that doesn’t close the gap, cuts to state services could be necessary. How will Hochul present this unappealing prospect — or try to paper over it?
Though Hochul has ruled out new taxes, political progressives will attempt to get her to reconsider. The coalition of progressive organizations Invest in Our New York is pushing for billions of dollars of new taxes, and it’s being newly joined by the powerful 1199 SEIU labor union. What kind of clash will we see coming down the pipe between them and Hochul, and how will they respond to what she lays out? – Sam Mellins
Opioid Crisis
Overdose deaths in New York have reached historic highs, with nearly 7,000 estimated drug-related deaths in 2023 based on the most recent data from the federal government. Meanwhile, access to life-preserving services continues to shrink. From 2016 to 2021, admissions to licensed treatment programs plummeted by 40 percent.
The governor rejected recommendations from her state advisory board to expand overdose prevention centers over the past two years, citing conflicts with federal law. In August, the same month that the centers reported preventing 1,000 overdose-related deaths, the U.S. attorney responsible for Manhattan threatened to shut them down.
It’s unlikely Hochul will reverse her position on the overdose prevention centers. What remains unclear is how she plans to curb an explosion in overdose deaths that has disproportionately affected Black and Latino New Yorkers — as well as reverse the downward trend in admissions to treatment programs.
Hochul has split with progressives in her party over how to address the crisis. In addition to neglecting treatment centers, Hochul has embraced stronger law enforcement measures to tackle the opioid crisis. – Spencer Norris
NY HEAT Act
As Politico reported this morning, Hochul’s climate agenda will include elements of the NY HEAT Act, limiting expansion of the gas system. The legislation is a top priority for environmental groups, ranging from the mainstream New York League of Conservation Voters to grassroots anti-fossil groups like Sane Energy Project.
But she seems to have left the bill’s backers in the dark about her plans.
“I don’t expect we will see anything on this,” the bill’s Assembly sponsor Patricia Fahy told New York Focus on Monday. Senate sponsor and budget chair Liz Krueger said “we have not heard that that was going to happen.”
On Tuesday, both said they were “pleased” to see Hochul embracing elements of her legislation after all.
“The devil is in the details, of course, but I very much look forward to working with the Governor and my legislative colleagues to ensure an affordable, equitable, and well-planned gas system transition that will benefit all New Yorkers,” Krueger told New York Focus. – Colin Kinniburgh and Julia Rock