What to expect when Albany legislative session beings in January

ALBANY — A handful of familiar fights and recurring themes will be at the heart of the upcoming legislative session as Gov. Hochul enters her first full term in office and lawmakers return to the Capitol to address everything from housing and taxes to criminal justice reforms.

Democrats retained their supermajority in both chambers of the Legislature, gave themselves a $32,000 pay raise days before Christmas, and are preparing to push forward on progressive policies including single-payer health care, universal child care and expanding social services for the state’s most vulnerable communities in the wake of the worst of the COVID crisis.

Hochul, meanwhile, has said repeatedly that housing will be one of her top priorities in the new year, focusing on development, rezoning and building affordable units across the state. The governor earlier this month announced a goal to create 800,000 units of housing statewide over the next decade.

Details of the governor’s plans and priorities will come on Jan. 10 when she delivers her first State of the State address since becoming the first woman elected to lead New York.

Lawmakers will return to the Capitol a week earlier as the six-month legislative session kicks off on Jan. 4.

Senate Majority Leader Andrea Stewart-Cousins (D-Yonkers) mentioned housing, mental health, criminal justice and affordability as key priorities for Democrats in 2023.

“We have our work cut out for us, and we will continue to work together to address the needs of New Yorkers,” she said.

HOUSING

Hochul has vowed to unveil a “bold and audacious” housing agenda in her State of the State address next month and has repeatedly hinted at addressing zoning laws in the suburbs surrounding the city.

Also on the agenda will likely be the replacement of a controversial tax credit for real estate developers meant to encourage the building of affordable housing that lapsed earlier this year.

Hochul floated a tweaked version of the abatement, known as 421-a, in her executive budget during the previous legislative session, offering a 3½-decade property tax exemption in exchange for developers setting aside a percentage of rental units as affordable.

Another measure Hochul supported in the past would legalize accessory dwelling units and require localities to permit the construction of additional units on lots zoned for single-family housing.

Housing rights groups, meanwhile, are petitioning the governor to couple her call for building more units, often a slow and cumbersome process, with a slate of bills that would help keep tenants in their apartments amid rising rents and provide assistance to those facing the frightening possibility of homelessness.

The “Our Homes, Our Power” package includes “good cause” eviction, a long-sought piece of legislation that would give tenants a defense against unwarranted evictions and the right to challenge unreasonable rent increases, defined as more than 3% or 1.5 times the Consumer Price Index.

TAXES

Hochul assured New Yorkers earlier this month that she doesn’t “foresee” having to raise taxes despite the economic uncertainty facing the state and calls from progressives for more levies on the rich.

The governor’s stance on taxes could lead to a budgetary battle as many her fellow Dems in both houses are pushing to reform the state’s inheritance tax, raise rates for higher earners and tax capital gains.

The Black, Puerto Rican, Hispanic & Asian Legislative Caucus unveiled a budget and policy framework earlier this month that included several tax overhauls focused on the state’s wealthiest residents.

One change included in the group’s blueprint would be a change to the state’s inheritance tax. Under current law, a person can inherit up to $5 million in a single year without paying any tax on it. The caucus’ proposal would lower the estate tax threshold, with progressive marginal tax rates applying to estates worth more than $750,000.

State officials have said that increased taxes on the wealthy passed in 2021 have not resulted in the ultrarich fleeing New York.

Advocates are pushing for the Invest In Our New York Act, a package of six bills supporters say would raise more than $50 billion for universal childcare, higher education, housing and climate justice programs by ending tax breaks for the wealthiest New Yorkers.

The plan includes restoring taxes on the profits of corporations, taxing Wall St. financial transactions and a capital gains tax that would treat income from investments like stocks the same as wages.

While the battle over taxing billionaires is already kicking off, the real fight will take place closer to the April 1 budget deadline.

CRIMINAL JUSTICE

While progressives and advocates are turning their attention toward parole and sentencing reforms, Republicans and moderate Dems are still railing for additional changes to the state’s controversial bail laws.

For the third year running, it’s possible the legislature will once again revisit the 2019 law doing away with cash bail for most nonviolent crimes.

Republican lawmakers hammered Democrats during a one-day special session held last week for the express purpose of raising the salary of Assembly members and senators to $142,000 a year, accusing them of ignoring other issues including crime.

Hochul has said she’s waiting for more data after changes made last year granting judges more discretion when detaining people awaiting trial and she’s still facing pressure from fellow Dems including Mayor Adams, who has joined Republicans in linking bail to rising crime.

Stewart-Cousins didn’t dismiss the idea outright but many Dems are resistant to returning to the topic.

“We will continue to look at all of the policies,” Stewart-Cousins said on Thursday. “There will always be a continued conversation. We care about public safety, we have always cared about public safety and we will continue to work with stakeholders, with data, and address issues.”

Progressive lawmakers, meanwhile, are preparing a renewed push for changes to parole and the Clean Slate Act, which would automatically seal criminal records after three years for misdemeanors and seven years for felonies.

Advocates are pushing for the passage of the Elder Parole and the Fair and Timely Parole bills, two long-sought measures that would streamline the parole process and make it easier for older inmates to become eligible for release.

CLIMATE

Earlier this month, the state’s Climate Action Council approved a sprawling scoping plan that will serve as a blueprint for New York to make good on the mandates set by the 2019 Climate Leadership and Community Protection Act.

In order for the state to accomplish it’s ambitious goals limiting pollution and embracing renewable energy, Hochul and the Legislature must follow through.

A pair of stalled bills likely to resurface are the Build Public Renewals Act, which would authorize the New York Power Authority to build, own, and operate more renewable energy projects, and a second requiring all new buildings be fossil fuel-free.

In November, New York voters overwhelmingly approved a ballot proposal Tuesday authorizing the state to borrow $4.2 billion for environmental projects, infrastructure improvements and conservation efforts.

ODDS & ENDS

Court of Appeals: Hochul nominated Judge Hector LaSalle last week to serve as chief judge of the New York Court of Appeals, the state’s highest court. Unions and left-leaning Dems are up in arms over the pick, arguing LaSalle’s history of conservative opinions makes him unfit to lead the judiciary. At least nine Democrats in the Senate have said they will oppose the nomination when the body votes on LaSalle’s appointment next month.

Universal Child Care: Hochul and lawmakers last session increased child care funding by allocating $7 billion over the next four years and expanding the number of eligible families. Many felt the effort fell short and are pushing to expand support from public subsidies for child care and come up with new funding streams to boost pay for low-income providers and create a universal system for all New York families.

Horse Racing: Racing industry leaders pushing for a major overhaul of Belmont Park and are seeking access to $455 million in state-backed bonds to complete the project. Supporters see the project as a way to consolidate downstate racing and end racing at Aqueduct Racetrack in Queens, where Genting’s Resorts World is expected to apply for full casino license. The push comes as some lawmakers hope to pass a bill limiting subsidies for the racing industry.