Governor Kathy Hochul’s executive budget proposal has drawn praise for its strategic investments in child care, affordability, infrastructure, and other key areas. Notably, she maintains her pledge to avoid increasing corporate or personal income taxes. In contrast, Mayor Mamdani, who has been an advocate for child care, continues to push for tax hikes, a stance he reiterated recently.
It might be wise for the Mayor to embrace the child care initiatives that Governor Hochul is offering and set aside his calls for tax increases. Additionally, he should express gratitude towards the Governor for advocating a four-year extension of mayoral control over the city’s schools.
Governor Hochul’s budget strikes a delicate balance: avoiding new tax hikes while tolerating some moderate increases in the state’s top corporate tax. This approach maintains the status quo, preserving financial stability without imposing additional burdens on taxpayers.
However, this budget faces a unique challenge that Hochul’s predecessors did not contend with—an openly antagonistic federal government. Under an unpredictable president who treats the administration like a private domain, there is a concerted effort to diminish state capabilities.
Recognizing the potential for diminished federal support, the budget includes additional funding for Medicaid and food assistance. These measures prepare the state to function more independently, anticipating possible reductions in federal contributions. As federal attempts to unilaterally withdraw funding face legal challenges, there remains hope that Congress will stand firm. Yet, the risk of sudden funding cuts is ever-present.
While some may view child care as a specialized policy area, those grappling with rising costs and financial strain understand its broader economic impact. Child care costs influence family planning, workforce participation, and savings depletion, affecting the economy at large. Families are postponing having children, parents are leaving jobs, and discretionary spending is shrinking, impacting not just those with children but everyone.
If the governor wants this to be her legacy, at some point someone is going to have to address the long-term funding of this expansive child care and education apparatus beyond this election year. As things stand, there are a couple of years of runway, which is not nothing, but voters have over the years learned the hard lesson that a splashy rollout is not enough. Maybe she doesn’t have to answer this question now, but should she win another four years in November, the bills for consistent funding will come due in her next term and there still could be extreme uncertainty out of Washington.
As is typical in these budgets, policy is very much on the table, with Hochul among other things pushing for a four-year extension of mayoral control over NYC public schools. The best extension would be indefinite, but we’ll take four years, as it’s better than the two or three year extensions Albany has granted recently. A four-year continuation will ensure that Mamdani can govern at least a whole term without having to go to Albany to beg and horse-trade just to keep the schools under his purview.
Now comes the tussle over the final budget and Hochul must stand fast against Mamdani’s calls for higher taxes.
