The From the Lobby podcast features a behind-the-scenes look at politics and government from New York State to Washington, DC with Jack O’Donnell, an Albany insider and Managing Partner of O’Donnell and Associates, a top lobbying firm that helps clients all over the country cut through government red tape.
Don’t be stuck on the sidelines. Get a front-row seat to what’s happening in politics with Jack! From the issues that affect taxpayers and business owners to the history of the budget process in New York, Jack has the knowledge and depth of experience to cut through the rhetoric and tell you what’s really going on.
Summary of this Episode
Guests
- Jack O’Donnell: Managing Partner at O’Donnell and Associates
- Joanne Pasceri: Director of Communications at O’Donnell and Associates
Major Topics Covered
• Governor Hochul proposed a $233 billion budget for 2025, up $4 billion from last year, with education funding as a key controversial issue.
• An unexpected $1.3 billion in additional state revenue may help smooth budget negotiations.
• The governor aims to fund migrant crisis costs using the state’s rainy day fund, with NYC requesting $2.4 billion in aid.
• Jack O’Donnell predicts budget approval by mid-April, highlighting the proposed Empire AI consortium as a forward-thinking initiative.
Full Transcript of the Episode
Note: This is a generated transcript. Please excuse any typos.
Joanna Pasceri 00:06
Hi everyone, and welcome to another edition of From the Lobby with Jack O’Donnell. It’s a new season for the podcast and another year of giving listeners valuable insight into the political and business landscape from New York to DC with Jack, managing partner of O’Donnell and Associates, a government relations firm that helps clients get results. I’m Joanna Pasceri, Director of Communications at O’Donnell and Associates. We are in the thick of New York State budget season, as lawmakers work to finalize a spending plan for 2025. A lot of money is on the line and governor Hochul’s proposal, a $233 billion budget, up $4 billion from the previous year. What does it mean for residents, taxpayer’s, businesses? What about the approval process? Jack is back with us to talk more on what’s happening in Albany to make this budget proposal a reality. Welcome, Jack.
Jack O’Donnell 01:04
Thanks, Joanna. Great to be back with you from the Lobby.
Joanna Pasceri 01:08
Great to have you! So what are your impressions of the governor’s version of the budget? Did she present a good starting point for negotiations with the legislature?
Jack O’Donnell 01:17
Absolutely. I mean, the governor’s budget this year came without a lot of surprises. There aren’t a lot of the somewhat controversial, policy issues that are really where often things get kind of caught up here in Albany with advocates on either side and a lot of screaming and yelling. And I think you can see that the governor is really trying hard to be forward-thinking, you know, a few things, especially education, healthcare spending, have gone up an awful lot recently. And you can see she’s trying to help the state get a handle on those things going forward. We’ll see if the legislature agrees.
Joanna Pasceri 02:03
Recently, the state received some good news: an extra $1.3 billion in unexpected revenue. How does this affect the budget process?
Jack O’Donnell 02:12
Well, the budget is a lot easier when there’s enough money to go around and I think we saw that throughout the year. The division of budgets, its year-in-review, their six-month review – they found significant additional revenue, and then just recently, an extra 1.3 billion. I think that’ll go a long way towards sort of smoothing things out. The most controversial issue in the governor’s budget is around some cuts in future aid to school districts. And this money could go a long way towards maybe alleviating or mitigating some of those cuts. But, you know, she’s really again, this is where I think the governor’s budget is forward-looking. You know, she’s proposed ending the so-called hold harmless provision, which is where school districts don’t go down, even as things go forward. And since a number of school districts have seen huge, in some cases, enrollment cuts, that seems pretty fair to a lot of people, but it has not gone over well with school districts with teachers, and frankly, with the legislature.
Joanna Pasceri 03:31
Do you think that issue will hold up approval this year?
Jack O’Donnell 03:34
I think that’s the biggest fight that we’re going to have going forward. You know, one of the things that’s going to hold up the budget is that Easter is the day the budget is due. And so there’s some quirks around the schedule there that don’t bode well for an on-time budget on April 1. But I really think this holds harmless and how we fund education is going to be the most controversial issue.
Joanna Pasceri 04:01
The governor has promised not to raise taxes. She’s holding firm on that, even on the rich and that’s an idea some lawmakers are pushing forward. So, does a little extra cash this year give the governor the upper hand on this issue?
Jack O’Donnell 04:15
Well, the governor starts the budget process with the upper hand, and I think a lot of businesses, a lot of residents, you know, really happy to hear her talking about no new taxes. I do think broadly that is popular and a good place for Democrats to be, Governor Hochul has really tried to present herself as a moderate Democrat, and or at least a fiscally moderate Democrat in this process and I think that helps. That said, there are a group of influential legislators and some outside groups that don’t just want more revenue, but they want a lot more spending and a lot more services for people. Everything from free bus services to, you know, increase social care, more things like cheaper daycare for people, a lot of things that are very popular. And there’s a number of legislators who were very loud and very insistent on that. But I do think the governor has the upper hand here in the budget process.
Joanna Pasceri 05:24
What about the migrant crisis? The governor wants to dip into the state’s rainy day fund to help cover the cost. Will the legislature support this? And is any money going to be coming from the federal government?
Jack O’Donnell 05:36
Well so far, we haven’t seen that support from the federal government for New York State or New York City. And, you know, it is certainly a statewide issue, but New York City has been particularly hard hit. And I don’t see that support coming anytime soon, especially from such a divided federal government where they’ve just passed six appropriation bills from last year’s budget. That’s how far behind they are. So I don’t see that support coming. I do think that there is an appetite in the legislature and with the governor to provide that support. So, I do think that’ll get done.
Joanna Pasceri 06:18
New York City Mayor Adams has asked the state for more than $2.4 billion that has been earmarked to handle the migrant crisis. Do you think he’s going to get that extra money?
Jack O’Donnell 06:29
You know, there’s still a long way to go on that. I think that as the state has realized some new revenue, we’ve seen New York City realize some as well. The mayor proposed some really tough budget cuts in New York City, some of which have already been rolled back. And I think those are really going to influence this conversation. The mayor has not been incredibly successful at getting things done in Albany. So I don’t think he’s gonna get everything he wants there, but still a long way to go.
Joanna Pasceri 07:06
And Jack any other issues that stand out in the governor’s plan that may hold up approval this year?
Jack O’Donnell 07:12
Again, I think the most controversial thing really is the education funding. And again, not just how much money they’re getting this year, but what that looks like going forward. A lot of folks who don’t think these continued increases there and in healthcare are sustainable. So I think that’s going to be a big part of this discussion. One of the things that’s in her budget that I do want to mention, which again, I think is very forward thinking. The governor proposed Empire AI, which is going to be a consortium of private universities investing as well as state investment. And the governor has announced that SUNY Buffalo UB is going to be the center for that, and the location for that. And again, I think this is maybe the best of government where you see government bringing real experts together and putting something in Buffalo where UB are already a leader in this space, but it’s just going to help accelerate or super supercharge you know, UB’s role in that, and SUNY’s role in that, in an industry that is already as we’ve all seen, transforming everything, and there’s a lot more to be done, so, making that investment and having it in Western New York, that’s going to be a really big deal. It’s something 10, 20 years from now, I think we’re gonna look back and say that was a great decision.
Joanna Pasceri 08:43
So, what do you predict in the next several weeks budget approval on time? April 1, or Battle Royale?
Jack O’Donnell 08:50
I’m betting on April but not April first. I don’t think we’ll get to May, as we did last year, but I think the safe betting right now is the middle of April.
Joanna Pasceri 09:01
All right. Thank you, Jack, for that budget update and we look forward to sharing more insight as the budget process continues to unfold in Albany. So be sure to subscribe to this podcast for weekly updates on what is happening in New York and DC sign up for Jack’s newsletter Monday morning memo on our website, odonnellsolutions.com. And for daily updates, follow us on X, LinkedIn and Instagram at O’Donnell and Associates. Thanks for listening, everyone. We’ll be back soon. From the lobby, with Jack O’Donnell.
