New York finally has a budget — the latest in 16 years — after a marathon session that wrapped just after midnight. On this episode of From the Lobby, host Joanna Pasceri sits down with Jack O’Donnell, Managing Director of O’Donnell & Associates, to unpack how the spending plan came together, why lawmakers were forced to swallow unrelated policy changes inside budget bills, and whether anything will change about how Albany approves its budgets. O’Donnell also weighs in on the push to move the budget deadline to July 1, the wave of retiring lawmakers reshaping next year’s dynamics, and what to expect on mid-decade redistricting before session wraps.
Joanna Pasceri
After weeks of delays and more than a little frustration, lawmakers during a marathon session gave final approval on a spending plan. Just after midnight, New York finally has a budget, the latest in 16 years. Hi, everyone, and welcome back from the lobby with Jack O’Donnell. So who compromised the most and what does this whole process say about how Albany works right now? Let’s ask Jack, the managing partner of O’Donnell and Associates. He has spent years watching governors and lawmakers battle through the budget season. How does this year compare? Jack, good to have you back from the lobby.
Jack O’Donnell
Great to be with you, Joanna. Another exciting week.
Joanna Pasceri
Well, as Assembly Majority Leader Crystal Peoples-Stokes put it on the assembly floor late last night, “it’s an ugly process, but it’s done.” So when you step back and look at what happened these last several months, what are your overall thoughts about how this budget came together?
Jack O’Donnell
Well, I think the best thing about it is that it’s done. We’ve talked about this before. I, unfortunately, have been part of New York budgets that have gone through August. And frankly, in a lot of ways, those seem like bigger fights, in some ways, in part because you had Democrats and Republicans sharing power and fighting against each other. The most disappointing part to me is that I suspect that if we had started this process sooner, almost everything that got done probably could have gotten done around the same way at the end of March. I don’t think a lot changed. But look, governors are going to use their authority and their leverage any way they know how. I don’t think that it’s a coincidence that this has eaten up big parts of the legislative session. I think for a lot of folks in the establishment, whether that’s the executive or legislative leadership, there are some positives to them for that. So it is what it is, I guess, is all I could say. And just as usual, agree with Crystal Peoples-Stokes that it wasn’t pretty, but it’s done.
Joanna Pasceri
Was there a defining moment in this year’s negotiations or anything in the final agreement that surprised you?
Jack O’Donnell
That’s the sort of part that’s a little bit disappointing. I don’t think we had a major breakthrough where the balance of power switched or one party was able to convince the other parties of something new. So not a lot of surprises here. A lot of this we heard from the governor in January and she’s gotten big parts of that, or pieces of that have moved forward. So plenty in there for people to take credit for and campaign on. We’re seeing press release after press release come out from the governor, from legislators taking credit for different pieces, but overall, a little bit underwhelming.
Joanna Pasceri
Well, a lot of lawmakers were openly frustrated that major policy changes were folded into budget bills. One example, some legislators said they had to vote for climate law rollbacks in order to support retirement benefit improvements. Two completely different issues, same bill. What kind of political bind does that create for lawmakers trying to explain their votes back home?
Jack O’Donnell
Well, an intentional one. Right. I mean, this is as old as the republic that they log roll. Right. They put different things together to build support around it. I think if there’s anything that’s different in this budget is that there are a number of newer legislators who haven’t been part of some of these late budgets, who don’t know a lot of Albany history or have some of that context. And so they’re constantly surprised and argue about these things, and then a few years go by and they end up in power and they end up using the same techniques. So we’re always going to hear some complaints from folks about the process, but that part certainly isn’t going to change.
Joanna Pasceri
Legislative leaders made it clear they are tired of the process that gives the governor leverage during budget negotiations. But past court challenges haven’t really changed that. So there is no realistic path to reform here?
Jack O’Donnell
Certainly not in the short term. Right. I mean, the governor would have to be a key part of any change, and she likes having this power and she’s wielding it. So I don’t see any short-term change. Regularly every 20 years New Yorkers get to vote on having a constitutional convention, where you would talk about issues like this and people could make decisions, and broadly the will isn’t there, or the inverse is true that the special interests have enough influence, enough power, that they help make sure that that choice, that opportunity, gets voted down.
Joanna Pasceri
One idea I saw floating around again, pushing New York’s budget deadline to July 1, which is what many other states use. Do you think that would actually improve the process or would lawmakers just end up fighting until July instead of April?
Jack O’Donnell
Well, I’m kind of inclined to the latter. But years ago I worked in the state comptroller’s office and the comptroller at the time proposed a number of these changes and some of them took effect, like some of the revenue predictions that happened before the budget. A lot of these are things that it’s hard to believe today, but actually made the budget process go smoother. And they are important. The hard part is the New York calendar, right? The legislature usually meets till June. So would they stay in longer? Would they have more time? Would they have less time and do other things? And what really kills that, I think, Joanna, is that we now have June primaries in New York. And as a result of that, a whole bunch of these folks need to get home and campaign for reelection. So I don’t think for those purposes that July is realistic, but man, it would align with most of the rest of the country. I think there’s 46 other states that do that. Most municipalities have that July 1 deadline. So it’s one of those things — I hate to reuse this line, but it makes so much sense that it’s never going to happen in Albany.
Joanna Pasceri
Okay, got it. Well, you mentioned on WBEN this morning that there are only 307 days left until the next budget is due. And next year will look very different. A wave of lawmakers retiring this year, new members will be arriving in Albany for the first time next year. How will that reshape the dynamic?
Jack O’Donnell
That’s one of the things you see from these folks who have not been through this process. And again, I’m not here to defend the process. It’s not necessarily the way I think it should work, but I’m rational enough to know that that’s how it does work. And so I think that the cadence of that, the power dynamics of that are not in any way democratic with a small D. And I think that’s hard for a lot of folks, especially new legislators who come in really excited about having their say and then find out how important seniority and building statewide relationships and building coalitions is. And those are just things that take a lot of time. So I suspect as this budget goes into next year, you’ll hear from a lot of those new legislators that they’re frustrated. Now, again, the one way to really change this is for a bunch of these folks to get together in December or at least in January and start playing through this process and not wait until the end of March to really get into it. But I don’t expect that to happen either.
Joanna Pasceri
One last question here, Jack. Only a week left in the legislative session. Do you think amendments to open mid-decade redistricting will make any headway?
Jack O’Donnell
I do. I expect we will see both houses pass these two redistricting amendments, one which allows mid-year and the other that would sort of supersede the independent redistricting commission. But to be clear, those have to go through the legislature this year. They have to go through a new legislature, which would be next year, and then would in theory next year in November be on the ballot. Now again, there was not the mid-district but some changes to the independent redistricting commission that voters got a say on I think five years ago, and it went down pretty handily. So I think this is going to pass before the end of session. I expect we’ll see it pass next year. But the real fight is going to be what do the voters think and are they willing to support these changes.
Joanna Pasceri
Right. Well, Jack, we look forward to your budget breakdown in the next Monday Morning Memo.
Jack O’Donnell
Great to be with you, Joanna.
Joanna Pasceri
The budget is finally in the books, but now comes the part that really matters. What’s actually in it? And how could it affect New Yorkers in the months ahead? That’s exactly what Jack digs into each week in his Monday Morning Memo, a weekly newsletter that gives you a smarter, clearer look at what’s happening in Albany, Washington and beyond. No paywall, just insight and the stories worth paying attention to. If you’re not already getting it in your inbox, you can sign up at odonnellsolutions.com. Thanks for listening, everyone. We’ll see you next time from the lobby with Jack O’Donnell.
