New York's state budget is delayed, mainly due to Governor Hochul's conflicts with legislative Democrats over policy issues more than spending amounts. While Hochul proposes changes regarding mental illness and criminal procedures, the Democratic dominance blocks significant debate. Interestingly, with their diminished presence, Republicans find an opportunity to engage amid rising spending demands based on earlier economic forecasts, now challenged by shifting economic conditions. Hochul's fiscal plan for 2026 details substantial financial growth but may come under scrutiny following revised economic predictions post-tariff impacts.
The resulting deadlock means there's been virtually no debate about the quarter-trillion-dollar spending plan Hochul and lawmakers are about to adopt.
Their main battle isn't over spending, but rather policy changes without big fiscal impacts: Senate and Assembly Dems bristled at Hochul's proposals to make it easier to lock up and treat people with severe mental illness.
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