By Mike Vilensky 

Gov. Andrew Cuomo and state lawmakers will convene in Albany Monday for two weeks of budget negotiations to meet an April 1 deadline.

The annual talks for a roughly $160 billion spending plan have a political importance this year ahead of gubernatorial and legislative elections in the fall, analysts said.

"It's something they can point to that shows a level of efficiency and concern for the taxpayers," said William Cunningham, a Democratic strategist and former aide to Gov. Hugh Carey.

As in past years, the spending plan is not purely a monetary package because Mr. Cuomo and lawmakers yoke their political priorities to its passage. For Mr. Cuomo, a Democrat, the budget marks an opportunity to bolster his progressive bonafides before he begins campaigning for re-election on the heels of a guilty verdict against a former senior aide. All 213 legislative seats are also up for grabs in November.

Negotiations are expected to get tricky. Senate Deputy Majority Leader John DeFrancisco, a Republican, is running against Mr. Cuomo and is expected to drew a hard line against some of the governor's proposals.

Here are some of the issues that will be at the top of talks:

Taxes

Mr. Cuomo has called for changes to the state tax code that he says could offset the impacts of the new GOP-backed federal tax law. He proposes replacing part of the state's income tax on individuals with an equivalent payroll tax on employers.

Earlier in March the Assembly's Democratic majority said it largely accepts Mr. Cuomo's plan, but the Senate's Republican majority has remained cool to an idea that attacks a law pushed by their national counterparts.

As the marquee item of Mr. Cuomo's budget proposal, the tax overhaul is expected to take up a lot of time in negotiations.

Transportation

Mr. Cuomo has said he would back a plan to charge Manhattan motorists fees at peak hours, an effort to reduce congestion and raise revenue for public transportation amid a crisis of subway problems in New York City. But he has not voiced full-throated support for a particular pricing proposal, even as the idea has gained steam with advocates and lawmakers.

The Assembly recently proposed a plan that would only fine taxis and ride-sharing vehicles; the Senate has said it is open to discussions but hasn't gotten behind any congestion-pricing plan.

A panel of transit leaders assembled by Mr. Cuomo, called Fix NYC, expressed disappointment in the Legislature over the issue, saying it will be "demanding a more serious response" to the city's traffic and transit problems in the coming weeks.

New York City Housing Authority

The governor has recently been highlighting problems within the city's public housing, a political vulnerability for his longtime rival Mayor Bill de Blasio.

Mr. Cuomo's administration is calling for an independent monitor of the housing authority, managerial changes within the agency, and a new, detailed spending plan in exchange for $200 million in state money. The Assembly supports the funding but is more closely allied with Mr. de Blasio, who has defended NYCHA leaders and management. The Senate has said it is "open to discussing" measures to help.

Assemblyman Daniel O'Donnell, a Democrat, said the Cuomo administration budgetary offer is inadequate and expressed reservations about any strings attached to the money. "Let's just fix it and stop trying to assign blame," he said.

Sexual Harassment

Mr. Cuomo and legislators are largely in agreement on a measure to end taxpayer settlements for sexual harassment in state government, but questions remain about who will be included in talks on the issue.

Mr. Cuomo's office recently said it will include Sen. Minority Leader Andrea Stewart-Cousins in the negotiations, which would add a woman to the otherwise all-male talks, which include three legislative leaders and Mr. Cuomo. But Ms. Stewart-Cousin's spokesman said she hasn't heard from the governor yet. "She would add a powerful voice to what has always been just men," he added.

Write to Mike Vilensky at mike.vilensky@dowjones.com

 

(END) Dow Jones Newswires

March 17, 2018 10:14 ET (14:14 GMT)

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