After weeks of delays, false starts, and finger-pointing, New York’s budget is finally moving through Albany — and when the gavel falls, it will mark the latest state budget approval in 16 years. On this episode of From the Lobby, host Joanna Pasceri sits down with Jack O’Donnell, managing partner of O’Donnell & Associates, to unpack what’s in the spending plan, what’s still unresolved, and the political calculations driving it all. The conversation ranges from the moral and political dilemma over 450,000 New Yorkers poised to lose health coverage due to federal cuts, to upstate cities waiting on aid, a constitutional push to redraw district lines mid-decade, and President Donald Trump’s planned trip to the Hudson Valley to campaign for Congressman Mike Lawler. Plus, Jack reflects on the end of the Buffalo Sabres’ surprising playoff run.
Joanna Pasceri
After weeks of delays, false starts and plenty of finger pointing, Albany is finally voting on the budget. And when it’s all done, this will go down as New York’s latest budget approval in 16 years. Still, Governor Kathy Hochul calling it a win. So what’s actually in this spending plan and what battles are still far from over? Hi, everybody, and welcome back from the lobby with Jack O’Donnell. Jack is here, managing partner of O’Donnell & Associates. He’s been following the budget drama from the inside. And now the real analysis begins. Jack, good to have you back from the lobby.
Jack O’Donnell
Joanna, great to connect.
Joanna Pasceri
Budget bills finally moving through Albany. And despite this becoming the latest budget approval in 16 years, Governor Hochul is taking a victory lap, saying she’s really proud of this budget. So what finally got the wheels turning here and does the governor deserve some credit?
Jack O’Donnell
You know, look, it’s great that things are finally moving, right. One hint of caution is we’ve seen two of these budget bills — Environment, Labor and Housing and Family Assistance, and PPG, which is public protection and general government. But there are seven other bills that are outstanding. Some of the things we’re working on, they’re not fully done. So, you know, I expect they will be in the next couple days or certainly by early next week when we expect the legislature to vote. As time goes by, there’s a level of frustration and we’re really running out of time here. We only have two more weeks of the legislative session. Legislators want to pass bills. A number of them have primaries and want to get back to their districts with our, you know, June 23, I think, Democratic primaries. So all of those are factors. And then I also think there was some real compromise. We’ve gone into that in the past in a little depth around auto insurance, around the environment stuff. I think Hochul and Heastie and Stewart-Cousins all kind of get along. And so I think they were able to find a way to compromise.
Joanna Pasceri
Well, one issue still hanging over all of this, and you wrote about it in this week’s Monday morning memo, health care coverage for roughly 450,000 New Yorkers who are expected to lose it this summer due to federal cuts. Some lawmakers want to use $2.4 billion that was set aside to help. But legislative leaders just don’t seem on board, saying New York can’t afford to fix this situation. Is it the right move here?
Jack O’Donnell
Boy, I don’t know. I think, you know, one of the things we wrote is that it’s a moral dilemma. I think most New Yorkers, or increasingly more New Yorkers, believe healthcare is a right and that we have an obligation to take care of our neighbors here. Or there’s the cynical side that by taking care of them, you know, we’re keeping them out of emergency rooms and treating them more effectively. It’s a lot of money to do that, and sort of where they come down, I mean, right now it seems to be on the side of the money and kind of what we can afford. I’ll also be very brutally honest here with you, Joanna. Underneath it all, there are some Democrats who think it’s really important that people feel the effects of HR1, the Republican-passed bill in Congress that is what is changing these rules and making these people lose their coverage. And so there is a political aspect to this where some folks, some Democrats in New York, want to show the harm. And if the state is just picking up the tab, that’s not going to happen. And they think it’s more important in the short term that Democrats are winning House seats and taking back a majority so they can make some of these decisions in Washington to cover not just folks in New York, but folks in the rest of the country. So that’s incredibly cynical, but it’s also a reality in the political world we live in. So I think this is one of those things that’s going down to the wire.
Joanna Pasceri
Well, we’ve heard about increases in school aid statewide, but what about aid increases to municipalities? Buffalo and other upstate cities are watching closely to see what actually lands in their budgets. How important is the funding increases for these communities right now?
Jack O’Donnell
I think it’s essential both for these cities and their taxpayers. But also there’s a political aspect to this. We know New York City is getting a lot more state help, both in upfront dollars, but also in pushing off some mandates and giving them at least some short-term savings. We’ve heard about that because the governor’s been there standing with the mayor and announcing some of these things. Upstate cities are facing those same challenges and I do think there is political pressure to do it. We did see from the governor’s initial budget and also from the proposals that came out from the legislature that clearly there is an appetite there to help these upstate cities, help some of the upstate towns and villages as well. But what we haven’t seen is how much help that’s going to be. So that’s where many of us are eagerly awaiting these other budget bills to see them start printing. As of the time we’re talking here, there’s been no indication that anything else is getting printed today, but I guess it’s Albany. So hope springs eternal about tomorrow.
Joanna Pasceri
In the middle of all this, lawmakers are still pushing ahead on redistricting changes. They’re looking at constitutional amendments that would basically allow them to redraw lines mid-decade. Is it important to tackle this issue right now?
Jack O’Donnell
Well, it’s certainly important to the Democratic Party. And, you know, I think in fairness, we’ve seen this happening across the country. We’ve seen a number of states introduce maps and pass them in as little as three days. And so in a state that has so many Democrats, and especially so many Democrats in charge, there really is certainly an appetite there from the leadership, which is what you see. Some of this is just timing, right — to do this after they pass these bills. These are constitutional amendments, they need to pass two legislatures. So if we’re going to do something in time for 2028 elections, it has to pass this year and then pass again next year. And then there would be a constitutional amendment on the ballot in 2027. Now look, a few years ago there was not quite this drastic proposal, but that would have changed the redistricting process and it got voted down by the voters of New York. So how much support it has remains to be seen. Another significant part of that narrative is kind of how the districts look, what gets done to them. But underlying that is the fact that Democrats have just gotten through this big process of moving elections to even years, which means your turnout for a referendum in 2027 might be low — and it might be an unintended consequence here. But they’ll have to put a lot of effort and resources behind it if they want to get this done.
Joanna Pasceri
Well, President Donald Trump is heading to the Hudson Valley tomorrow, that’s on Friday, to campaign for Congressman Mike Lawler. Now, Lawler is in a tough congressional race this year. Smart move to bring in the big gun?
Jack O’Donnell
Well, it’s very much a double-edged sword. The President has people who love him, but especially in New York and increasingly in the rest of the country, a lot of people who don’t. So it’s kind of an interesting choice. We’ve heard Mike Lawler basically throw up his hands and say, if the president wants to come to your district, how do you say no? We’ve seen, especially among Republicans, this president is not someone that Republicans say no to, whatever his numbers with the general electorate. But Lawler has gone out of his way to show his distance between him and Republican leadership, some space between him and the Trump administration. So we’ll see how this goes. Now, to his advantage is that there are five credible Democrats beating each other up for the opportunity to run against him, which sort of muddles the Democratic messaging around that. But I don’t believe come November 5th or whenever election day is this year, that this will be a net positive for him.
Joanna Pasceri
And finally, the Buffalo Sabres. The playoff run is over for your beloved team. A lot of excitement, a lot of hope, and now an off-season is ahead here. How are you feeling about everything?
Jack O’Donnell
Well, I’m a little worried it’s too soon. I don’t know that I fully processed it yet. I had the wonderful opportunity to go to game seven, go with my daughter, Elsie. It was her birthday, and, man, we had a great time. My kids haven’t been through any of this and don’t understand what a hockey town Buffalo is and how great this has been for the community. So expectations certainly have gone up, but I think it’s less about expectations and it’s more about the absolute joy. We got an extra month of hockey. We got playoff hockey. We got some playoff wins. It’s hard to remember that six months ago, the Sabres were last in the Eastern Conference. So this has just been a blast for me. I think it’s been great for the city, for the region. You look at the ESPN numbers on this — it’s one of the most watched series, and playoff hockey, because everybody in Buffalo and people around the country rooted for the Sabres, embraced it. So it’s just been wonderful and really a lot of joy. So very excited for next season. And now we’re onto the World Cup, and I may have to shave my playoff beard.
Joanna Pasceri
Jack, as always, great to have you join us from the lobby. The budget is finally inching towards the finish line with final votes expected next week. We’ll keep watching what this spending plan means for New Yorkers and what battles are already shaping up next. And if you want a smarter way to keep up with Albany and Washington, check out Jack’s Monday morning memo — a quick, clear breakdown of the stories people are talking about and what actually matters. It’s delivered right to your inbox. No paywall. Sign up at odonnellsolutions.com. Thanks for listening, everybody. We’ll see you next time from the lobby with Jack O’Donnell.
