Albany’s budget talks have moved from quiet to combustible, with lawmakers accusing Governor Kathy Hochul of refusing to negotiate on the toughest issues and the governor pushing back hard. On this week’s From the Lobby, host Joanna Pasceri sits down with Jack O’Donnell, managing partner of O’Donnell & Associates, to unpack a fast-moving week in New York politics: a stalled state budget, fresh scrutiny of insurance industry contributions to the governor, a surprise pivot toward taxing high-end second homes in New York City, friction between Mayor Zohran Mamdani and Council Speaker Julie Menin, a bruising Fox News interview for gubernatorial candidate Bruce Blakeman, and — for a brief escape from the politics — the rebirth of the Buffalo Sabres.
Joanna Pasceri
Budget talks go from quiet to tense. Lawmakers are pointing fingers, and the governor is holding her ground. Hi, everybody. Welcome back to From the Lobby with Jack O’Donnell. This is where we sort through the big news stories coming out of Albany and beyond this week. A shift in the tax debate, some blunt talk on the campaign trail, and a growing clash inside New York City Hall. Jack O’Donnell is here, managing partner of O’Donnell & Associates, a top New York public affairs firm. He’s privy to the conversations and watching how this all plays out. Jack, let’s get into it. Welcome to the lobby.
Jack O’Donnell
Great to be back with you, Joanna. Another busy week.
Joanna Pasceri
Yes. What was quiet is now getting a little bit louder. Lawmakers say the governor isn’t negotiating on the toughest issues. She is pushing back. Not looking great for a new budget right now.
Jack O’Donnell
No. You know, a lot of folks here in Albany are not holding our breath. I don’t know. I think the conventional wisdom around town is now the second week of May. I’m more optimistic than that and still hope it could get done by the end of the month here. But they also say it’s got to get worse before it can get better, that it always has to blow up. If so, this week’s one of those weeks.
Joanna Pasceri
Well, media reports out this week show that Governor Hochul received over $200,000 in political contributions from insurance companies as she’s proposing a cost cutting auto insurance reform package.
Jack O’Donnell
Well, I assume that a lot of that has been pushed by the people who are against it. I mean, look, a lot of these are donations from last year and up until January 15th. And so they came before she made this proposal. So, you know, I think this is some of the noise that’s always out there when people are fighting for high stakes. And that’s exactly what’s happening here. I bet if you look closely, she probably has plenty of contributions from trial lawyers who are on the other side of this thing, too. I mean, look, she’s the governor. She’s an incredible fundraiser. And so this is the kind of noise you expect when you’re playing for big stakes.
Joanna Pasceri
And this week, the governor shifting her stance on raising taxes on the wealthy, now backing a surcharge on second homes worth $5 million or more in New York City. Is this a win for Mayor Mamdani?
Jack O’Donnell
Absolutely, it is. I mean, I think, you know, it’s a big shift in the governor’s position. Right. I mean, she has been saying very loudly, no new taxes. And then to come out here and present one, you know, it is a win for Mamdani and the Mamdani administration in terms of revenue. They have a pretty big deficit. And so getting some of those dollars matters, but it’s also a policy win. Right. He can go to his coalition, the people who supported him, and say, look, we’re doing it. We’re sticking it to the rich. And so, you know, I think that’s a win for him. But look, at the end of the day, most people who have a second home in New York City probably don’t live there. I mean, that means they probably aren’t voting. And so I also think this is a win for the governor in that respect, in that, you know, it will endear her to the Mamdani coalition and to the mayor and shows again that, you know, she really cares about the city of New York and is willing to partner. At the same time, business groups, real estate, you know, a lot of these folks who also donate a lot of money to the governor, they’re not going to be very happy. So probably a win for Mamdani, a win for Hochul, but, you know, it’s making some people nervous about where she is on other taxes.
Joanna Pasceri
Staying in New York City, Mayor Mamdani and Council Speaker Julie Menin have not been on the same page lately. Lots of friction between these two on many issues. Does this hinder progress? Who has the upper hand?
Jack O’Donnell
Well, this is how the process works. Right? You know, the council speaker has an awful lot of say in what happens in the city. And again, this isn’t new. Right. I mean, we saw Mayor Adams and then speaker, now candidate for Lieutenant Governor Adrienne Adams, had some very big splits and disputes as well. So I don’t think right now it’s a big deal, but we’ll see how tense things get.
Joanna Pasceri
Now let’s turn to the campaign trail. That Fox News moment with gubernatorial candidate Bruce Blakeman, where he was bluntly asked where he has been, and it looks like Kathy Hochul is going to beat you. What are you doing about it? Fair questions from usually a friendly source.
Jack O’Donnell
Well, absolutely. You know, I hear from Republican elected officials, party officials, especially in upstate New York, how disappointed they are in the Blakeman campaign by its energy, by how much it’s showing up. And I think that’s the frustration that you saw come through from Fox. I don’t know. It’s going to be interesting to see if Blakeman’s able to turn this up. You know, we talked about him narrowing the polling gap last week on this podcast, so we’ll see. But it’s not a great place for a campaign to be right now, even if I think they are fair questions. I’ll also tell you one last point on this, Joanna, is Republicans, independents, folks are out there watching Elise Stefanik kick off her book tour about how the Ivy Leagues have changed and, you know, a big part of an issue that helped lead to her rise. And seeing her walking out of Congress, she’s got $10 million in the bank and watching her fiery and smooth deliveries in this book tour makes it even more bitter for some of those partisans.
Joanna Pasceri
And before we go, let’s get off the politics for a second. You’re a big Buffalo Sabres fan. Atlantic division champs, 14 years waiting. The playoffs are back this weekend.
Jack O’Donnell
The playoffs are back. The Sabres are back. Joanna, I couldn’t be happier about it. There is no better sports town, hockey town, than Buffalo. When the Sabres are playing, you see it in the energy downtown, the energy in the city. We were there earlier this week with my son Thomas celebrating his birthday and man, this town’s on fire. So let’s go, Buffalo.
Joanna Pasceri
Right? What a great birthday gift. Any predictions? All the way or are you just gonna hold off for right now?
Jack O’Donnell
All the way. You gotta believe — that’s the whole part about being a sports fan, right? And man, I mean, the way the Sabres have performed, the way they’ve played against some of the other top teams, they’re legit. And you know, you can’t underestimate Lindy Ruff, the coach and hopefully soon to be Jack Adams award winning coach. But man, what a great story. What a lot of fun. I couldn’t be happier.
Joanna Pasceri
It’s great. Well, Jack, always ahead of the curve. Appreciate your time today.
Jack O’Donnell
Thanks, Joanna. Great to be with you. From the lobby.
Joanna Pasceri
A lot is still in motion. We’ll keep tracking it and breaking it down for a quick clear read each week. Keep an eye out for Jack’s Monday morning memo sent straight to your inbox. Great insight. No paywall. You can sign up anytime at odonnellsolutions.com. Thanks for listening, everyone. We’ll see you next time from the lobby with Jack O’Donnell.
