More than a month past the April 1 deadline, New York’s state budget is finally showing signs of movement — but the path to a final deal remains tangled with policy fights over auto insurance, climate, immigration, and law enforcement. On this episode of From the Lobby, host Joanna Pasceri sits down with Jack O’Donnell, managing partner of O’Donnell & Associates, to track the closing days of budget negotiations, a rare moment of unity between Mayor Mamdani and the City Council speaker (and Governor Hochul’s swift rejection), a Supreme Court ruling striking down a Black-majority congressional district in Louisiana that could reshape the midterms, and a Washington in dysfunction as Americans grow uneasy about the economy.
Joanna Pasceri
A month late and now finally some signs of real movement. The New York budget may be coming into focus, but the way it’s getting there, still a bit complicated. Hi everybody and thank you for joining us from the lobby with Jack O’Donnell. This is where we dive into the big stories in politics and government, what they mean and how they could affect you. Jack O’Donnell is here, managing partner of O’Donnell & Associates. He’s been tracking every twist in the budget talks and there have been plenty. Jack, welcome back to the lobby.
Jack O’Donnell
Joanna, good to be with you.
Joanna Pasceri
We’re hearing real progress on the budget this week, more than a month after the deadline. How close are we and could this be the latest budget since Kathy Hochul took office?
Jack O’Donnell
Well, not close, but closer. And yes, I think we’re already at or around the latest budget how Hochul tenure. So that I think is definitely going to happen. I mean, look, there is some movement, right? There has been some progress on auto insurance, progress on the climate issues. I understand there’s some real progress around the immigration piece and law enforcement and ICE. And you know, I’ve heard from members and program and council staff this week that they’ve at least started the discussions on what we call the other Article 7 language, which is the policy issue that are more directly tied to actual dollars and cents. You know, I will say the speaker said they’ve started to talk about money, though that certainly hasn’t filtered down much further. So look, I expect another extender on Monday and the hope is later that week they could vote on a budget or very early the week after they could vote on a budget and put this thing to bed. So movement but still a little ways to go.
Joanna Pasceri
Meantime, the governor is defending these late budgets, saying this is how she gets things done for New Yorkers. Legislative leaders, as we’ve heard, not too thrilled with this, especially with all this policy being folded into the talks. Do you think the process should change?
Jack O’Donnell
Yes, I mean, I think the process is terrible, starting with this April 1st budget timeline. New York is the only state of the country with that. Look, you know, growing up in this world, I remember August and budgets in the past. So overall some of this has gotten better and there have been some improvements over the last decade or 15 years around how they do the budgeting and an agreement by the fiscal houses on the dollars as they lead in. But look, Kathy Hochul has identified this as a position of strength, as having late budgets as being a political plus for her because she’s fighting for New Yorkers on these issues. And as long as she thinks that or feels that, the system’s not gonna change. But it is frustrating to a lot of people. It minimizes the time that the legislature has to really dig into some of the other legislative issues and some of the bills that they’re gonna pass, which often leads to bad decision making around that stuff. So, anyway, I do think there are ways to make the process better, but the governor has the upper hand, and she’s not going to give that up.
Joanna Pasceri
Let’s turn now to New York City. There was tension last week, but this week Mayor Mamdani and the council speaker are aligned. They are asking the state to scale back a tax break for some of the wealthiest New Yorkers to help close the city’s deficit. The governor gave that a hard no. What does this mean for the city’s finances and that relationship?
Jack O’Donnell
Yeah, all of these relationships are very interesting. I mean, there’s certainly plenty of friction between the council speaker and the new mayor. You know, some of that is just where they come from. Some of that is who they are, and some of that is intrinsic to those positions. But, you know, the two of them advocating for something is a good sign. The governor saying no is, for a lot of us, a good sign. You know, I don’t think there’s a going to go anywhere. The other real concern, as we saw from the New York City comptroller today, that the governor’s proposed PIT tax. Very likely not to reach the dollars and cents that she’s expecting. And let me add, we still haven’t seen any of that actual language. And so, you know, I do think the city of New York finances are one of the thornier issues that are still unresolved. I think there is a willingness from the governor and both houses of the legislature to step in and step up here. But I think the details of that and who does what and how much do they do versus how much do they insist that the city does itself still needs to be ironed out in budget negotiations.
Joanna Pasceri
Well, this week, a big Supreme Court ruling. It just struck down a Black majority congressional district in Louisiana, a major decision tied to the Voting Rights Act of 1965. What does this ruling mean and how could it ripple into the midterms?
Jack O’Donnell
Yeah, well, this is a real big deal. We’ve talked a lot on this podcast and in more depth in the Monday Morning Memo about the redistricting fight that’s been going back and forth between Democrats and Republicans. And it’s almost as if it’s turned into a war of attrition, right? One state does one thing, another state does the other. We just saw Florida vote this week, three days after maps were introduced. A lot, or frankly, all of these voting rights seats are Democrats across the South. And so this is another real arrow in the quiver of Congressional Republicans to gerrymander some more maps and possibly gain some more seats. Alabama, Mississippi, Louisiana. That was part of the case that the Supreme Court ruled on. You know, these also have real repercussions. Louisiana has primary elections in just over two weeks. And so in the middle of this, you know, they’re gonna stop and start over. I expect many or all of these states to do that. They have overwhelming Republican majorities in both houses of most of these legislatures. And then we’re also hearing from New Yorkers, right? We’ve heard from Governor Hochul, from Senate Deputy Leader Michael Gianaris, that they want New York to get in on this. I don’t think New York can do that. But they’re gonna continue to push that constitutional amendment to try to get New York back in this. And one more piece of me giving my opinion on this, Joanna, is that I really think redistricting, which is blatant by Democrats, it’s blatant by Republicans, but is such a big factor in the polarization that we see in Congress, the inability of Congress to get anything done. So much of this comes from the just blatant partisan gerrymandering. And so this is just gonna make it worse.
Joanna Pasceri
Turning now to D.C. Congress finally passing funding for the Department of Homeland Security. But there are still so many other issues out there. A new poll shows Americans are uneasy about the economy. Gas and food prices are way up. Global tensions are high. Where does all this land politically?
Jack O’Donnell
You said it. Well, I mean, this is a mess, right? And has been a mess. I mean, Washington dysfunction is tough, and it impacts a lot of us. You know, look, we also saw today that the economy continued to grow here in the states at 2%, which, considering the challenges, whether those are wars or dysfunction or tariffs or political instability, you know, I think we take some solace in that. But, man, how long can it last? I’m worried about it, and I know a lot of other Americans are worried about it, right? We’re seeing big layoffs from some of these tech companies that have been driving the economy. You know, it’d be great for Congress to get their act together, but I don’t expect that to happen anytime soon. And, you know, we’ll see what happens in the midterm elections. But frankly, it’s likely to make it even worse.
Joanna Pasceri
I guess, as you always say, buckle up, right?
Jack O’Donnell
Buckle up. Absolutely.
Joanna Pasceri
Jack, thanks for your insight. We’ll be watching for more in the next Monday Morning Memo.
Jack O’Donnell
Great to be with you again from the lobby.
Joanna Pasceri
A late budget, lots of money on the line, and bigger forces at play both in New York and across the country. Jack has his eye on it all. For a clear breakdown of the top stories, look for Jack’s Monday Morning Memo, his weekly wrap up of the issues you should know about and why. Get it sent to your inbox. Sign up is easy at odonnellsolutions.com. Thanks for listening, everyone. We’ll see you next time. From the lobby with Jack O’Donnell.
