[ THEME MUSIC ] ON THIS WEEK'S EDITION OF "NEW YORK NOW," WE TAKE A LOOK AT THE BIGGEST NEW YORK POLITICAL MOMENTS OF THE LAST YEAR.

THEN AS WE START THE NEW YEAR, WE LOOK AHEAD AT THE POLICY ISSUES AND POLITICS EXPECTED TO SHAPE THE 2024 LEGISLATIVE SESSION.

I'M SHANTEL DESTRA, AND THIS IS "NEW YORK NOW."

[ THEME MUSIC ] WELCOME TO THIS WEEK'S EDITION OF NEW YORK.

I'M SHANTEL DESTRA.

IT'S THE START OF A NEW YEAR AND A NEW LEGISLATIVE SESSION AT THE STATE CAPITOL.

THIS YEAR, THE GOVERNOR AND STATE LEGISLATURE ARE EXPECTED TO ADJUST SEVERAL ONGOING POLICY ISSUES INCLUDING HOUSING, WHICH THE PAIR FAILED TO COME TO AN AGREEMENT ON A COMPREHENSIVE HOUSING PLAN LAST YEAR.

THIS YEAR IS ALSO AN ELECTION YEAR, WHICH MEANS STATE LEGISLATORS WILL BE WORKING TO GET VOTES ON ALL WHILE TRYING TO PUSH THEIR PROSPECTIVE LEGISLATIVE AGENDAS FOR THE NEXT FEW MONTHS.

THE START OF THE NEW LEGISLATIVE SESSION MEANS THE GOVERNOR IS SET TO GIVE HER STATE OF THE STATE ADDRESS, SURE TO BE FILLED WITH HER VISION AND FRAMEWORK FOR THE YEAR AHEAD.

THE GOVERNOR HAS ALREADY STARTED GIVING SOME INSIGHT INTO HER VISION, PREVIEWING SEVERAL PROPOSALS THIS WEEK.

STUDENT INTO OUR LIVE COVERAGE OF GOVERNOR KATHIE HOCHUL'S STATE OF THE STATE ADDRESS ON TUESDAY, JANUARY 9TH AT 1:00 P.M. AND AT NYNOW.ORG.

BUT AS WE LOOK AHEAD AT WHAT THIS NEW SESSION WILL BRING, WE WANTED TO FIRST TAKE A STEP BACK AND RECAP SOME OF THE POLITICAL NEWS AND POLICY ISSUES THAT MADE FOR AN EVENTFUL LEGISLATIVE SESSION IN ALBANY LAST YEAR.

[ THEME MUSIC ] IT MAY BE HARD TO REMEMBER ALL THAT TOOK PLACE LAST YEAR AS WE GEAR UP FOR WHAT IS SURE TO BE AN EVENTFUL YEAR IN STATE POLITICS, WHICH IS WHY WE'RE JOINED BY DAVE LOMBARDO OF THE CAPITOL PRESS ROOM, ZACH WILLIAMS OF BLOOMBERG LAW, AND NICK REISMAN OF POLITICO.

THANK YOU SO MUCH FOR BEING HERE.

THANK YOU.

NOW, AS WE KNOW, LAST YEAR WAS A VERY EVENTFUL YEAR IN STATE POLITICS BUT I WANTED TO START OFF WITH GOVERNOR KATHIE HOCHUL.

AT THE START OF YEAR, SHE HAD COME OFF OF A WIN OF A VERY COMPETITIVE GUBERNATORIAL RACE.

I DON'T NEED TO REMIND YOU GUYS.

THEN SHE WAS MET BY A VERY INTERESTING LEGISLATIVE SESSION WITH HIGH HIGHS AND LOW LOWS.

WHERE DID THIS SESSION LEVEE THE GOVERNOR POLITICALLY?

I THINK GOING FORWARD ONE THING THAT GOVERNOR KATHIE HOCHUL IS GOING TO HAVE TO TRY AND DO A RESET ON IS THIS HOUSING ISSUE.

YES.

WHICH IS GOING TO BE A MAJOR THING FOR HER GOING INTO THIS ELECTION YEAR.

NOT FOR HER BUT FOR ALL 213 MEMBERS OF THE STATE LEGISLATURE.

SO, YOU KNOW, I THINK THE POLITICS FOR THE GOVERNOR LOOKING AT, YOU KNOW, 2024 SHE WAS ABLE TO GET SOME WINS, AS YOU MENTIONED LAST YEAR, LIKE A MINIMUM WAGE INCREASE, SOMETHING THAT SHE HAD ACTUALLY SUPPORTED AND WORKED THE LEGISLATURE TO GET A COMPROMISE ON BUT HOUSING WAS LIKE THE BIG THING THAT REMANDED KIND OF AN OUTSTANDING ISSUE FOR HER AND IT WAS REALLY KIND OF SWALLOWED UP IN THE POLITICS OF NEW YORK STATE.

YOU HAD A NUMBER OF PROGRESSIVES WHO WANTED TENANT PROTECTS THAT REAL ESTATE INTERESTS WERE OPPOSED TO AND MODERN SUBURBANITES WHO WERE OPPOSED TO THE HOUSING MANDATES IN HER PROPOSAL.

AND I THINK THE POLITICS SURROUNDING HOUSING HAVE REALLY ONLY GOTTEN WORSE IN THE LAST YEAR.

THE IDEA OF SOME GRAND BARGAIN THAT'S GOING TO BE STRUCK APPEASING EVERYBODY ON THE LEFT, CENTER AND RIGHT IS EVEN HARDER TO DO IN AN ELECTION YEAR WHEN I THINK THE STATUS QUO IS POLITICALLY MORE CONVENIENT FOR SOME OF THOSE PEOPLE DOWNBALLOT WHO WOULD RATHER SEE NOTHING DONE ON HOUSING THAN POTENTIALLY RISK THE IRE OF VOTERS WITH SOME TYPE OF TENANT PROTECTIONS OR AS NICK SAID, THOSE MANDATES ON NEW HOUSING CREATION.

ONE INTERESTING DYNAMIC, I THINK, COMING INTO THIS YEAR COMPARED TO LAST CAREER IS THE ABSENCE OF CRIME REALLY AS THE BIG ISSUE.

YOU KNOW, THAT REALLY COSTS THE GOVERNOR DEARLY ON THE CAMPAIGN TRAIL.

COMING INTO THIS YEAR, THOUGH, CRIME IS DOWN.

IT'S KIND OF GONE BACK A LITTLE BIT IN TERMS OF THE POLITICAL AGENDA.

IT COULD ALWAYS COME BACK.

YOU NEVER KNOW WITH THIS, BUT WHAT IS INTERESTING IS IT REALLY EXACERBATED HER RELATIONSHIP WITH THE POLITICAL LEFT, HAD A LOT OF PRESSURE ON POLITICAL MODERATES WHO ARE LOOKING TOWARD RE-ELECTION THIS YEAR.

SO I THINK THE GOVERNOR CAN AT LEAST TAKE A LITTLE BIT OF SOLACE IN THE FACT THAT, KNOW, CRIME ISN'T QUITE THE BIG ISSUE THAT IT WAS LAST YEAR WHEN SHE REALLY HAD TO STRONG ARM AND PUSH THE LEGISLATURE TO PUSH BAIL REFORM, AMONG OTHER THINGS.

YEAH.

IT SEEMS LIKE, YOU KNOW, IN RECENT YEARS BAIL HAS BEEN THE STICKING POINT OF BUDGET NEGOTIATIONS TIME AND TIME AGAIN.

YOU KNOW, I DON'T HAVE A CRYSTAL BALL, BUT I AM-- I FEEL COMFORTABLE SAYING IT MIGHT COME UP AGAIN, RIGHT.

SO WHAT EXACTLY IS THE PATH FORWARD THIS YEAR?

SO I THINK WHEN YOU TALK ABOUT THE BUDGET, IT'S BEEN A LOT ABOUT POLICY IN THE PAST.

I THINK THIS YEAR'S BUDGET, THOUGH, IS LARGELY GOING TO BE A FIGHT OVER DOLLARS AND CENTS.

RIGHT, YES.

HEADING INTO THIS FISCAL YEA THERE WAS TALK LAST YEAR FROM BUDGET OFFICIALS ABOUT A $9 BILLION DEFICIT THAT WAS ROLLED BACK DOWN TO ABOUT $4.5 BILLION IN THE FALL.

THE GOVERNOR'S DRAWN A HARD LINE IN THE SAND ON NEW TAXES.

THE LEGISLATURE FOR ITS PART HAS SOME ELEMENTS THAT WILL TALK ABOUT INCREASING TAXES, BUT I THINK AT THE END OF THE DAY, THERE WON'T BE A CLAMOR FOR INCREASING TAXES UNLESS WE'RE ACTUALLY FACING CUTS AND NOT JUST SLOWER GROWTH THAN NORMAL BUT ACTUAL CUTS TO SOME OF THE SACRED COULD YOUS, WHETHER IT'S EDUCATION OR HEALTH CARE.

I THINK THAT IS GOING TO BE THE BIG FIGHT IN THE NEXT COUPLE MONTHS IS FINDING A WAY TO CLOSE THAT $4.5 BILLION DEFICIT, AND I THINK ENOUGH PEOPLE HAVE BEEN HERE IN ALBANY TO SEE, YOU KNOW, A FEW BILLION DOLLARS HERE AND THERE, WE CAN FIND THAT IN THE COUCH CUSHIONS, NO HARD CHOICES HAVE TO GET MADE.

IT IS HARD TO THINK THAT $4.5 BILLION CAN BE CHUMP CHANGE, BUT TO A LARGE DEGREE, COMPARED TO PRIOR BUDGET YEARS, DAVE'S RIGHT, IT REALLY CAN BE.

I THINK ONE OF THE BIGGER, MORE CONTENTIOUS ISSUES YOU WILL SEE VIS-A-VIS THE BUDGET IS GOING TO BE MIGRANT CRISIS.

YES.

AND HOW RESPONDING TO THE INFLUX OF HUNDREDS OF THOUSANDS OF PEOPLE INTO NEW YORK OVER THE LAST YEAR AND A HALF OR SO IS GOING TO BE ADDRESSED.

MAYOR ADAMS OBVIOUSLY IN NEW YORK CITY WOULD LIKE TO SEE SOME FEDERAL HELP.

HE WOULD ALSO LIKE TO SEE ADDITIONAL STATE ASSISTANCE.

THE GOVERNOR HAS REALLY SIGNALED HERE THAT SHE IS NO LONGER WILLING TO FUND THESE OPEN-ENDED HOTEL STAYS IN NEW YORK CITY.

SO ONE THING SHE'S GOING TO TRY TO DO IS SHIFT A LOT OF THAT MONEY FROM THOSE HOTEL STAYS AND FROM SHELTERING INTO, SAY, LEGAL ASSISTANCE OR HELPING MIGRANTS FIND JOBS IN ORDER TO FIND SOMETHING OF A SEMIPERMANENT SOLUTION TO THIS ISSUE THAT, AGAIN, IS VERY POLITICALLY FROT FOR DEMOCRATS GOING INTO THIS YEAR.

LET'S NOT FORGET ABOUT MEDICAID.

ALONG WITH EDUCATION, THE BIGGEST PART OF THE BUDGET.

1199, MOST POWERFUL UNION IN THE STATE, THE HOSPITAL INDUSTRY IS PUSHING FOR HIGHER REIMBURSEMENT RATES FOR PROVIDERS.

REPUBLICANS AND DEMOCRATIC LAWMAKERS ARE BOTH ONBOARD WITH THIS AND THIS JUST ADDS MORE PRESSURE TO THE REST OF THE BUDGET, YOU KNOW.

IF INCREASES IN MEDICAID GET APPROVED AND THERE'S A BUDGET DEFICIT, THAT'S JUST GOING TO ADD MORE PRESSURE POSSIBLY FOR CUTS AND ELIMINATING INCREASES ON OTHER THINGS AND MEDICAID IS JUST THAT ONE BIG BUDGETARY ANIMAL THAT NOBODY SEEMS TO BE ABLE TO KIND OF, YOU KNOW, GET CONTROL OF OVER THE YEARS.

YOU KNOW, THE GOVERNOR HAS SOME SUPERTY-DUPER COMMISSION THAT SUPPOSEDLY IS GOING TO FIND SOLUTIONS TO ALL OF THIS.

I'M NOT TOO OPTIMISTIC THAT ANYTHING FUNDAMENTALLY WILL CHANGE.

I THINK JUST LIKE PAST YEARS, MEDICAID COSTS WILL GO UP AND THAT'S JUST GOING TO MAKE THINGS TOUGHER ON THE REST OF THE BUDGET.

SO DO WE THINK WE'LL GET AN ON-TIME BUDGET THIS YEAR?

LAST YEAR, THE BUDGET WAS VERY LATE.

WHAT ABOUT THIS YEAR?

THE SAFE MONEY IS NO.

[LAUGHTER] WE WILL NOT HAVE AN ON-TIME BUDGET.

NOBODY, I THINK, HAS LOST A LOT OF MONEY BETTING AGAINST THE POSSIBILITY OF AN ON-TIME BUDGET.

, YEAH.

IT'S A $200 BILLION QUESTION, GIVE OR TAKE A FEW BILLION, RIGHT?

ONE THING I'M GOING TO BE INTERESTED IT WATCH FOR IS WHETHER THE GOVERNOR USES ANY OF HER INNATE LEVERAGE THAT SHE HAS IN THE BUDGET PROCESS TO TRY TO GET LAWMAKERS TO THE BARGAINING TABLE AND GET A SPENDING PLAN DONE BY AROUND APRIL 1ST.

ONE POTENTIAL LEVERAGE POINT HERE IS THE REDISTRICTING ISSUE THAT WE'VE SEEN REOPEN HERE WITH THE NEW DRAWING OF CONGRESSIONAL LINES AS ORDERED BY THE STATE'S TOP COURT, AND YES.

THIS IS REALLY ONLY THE HOUSE OF REPRESENTATIVES, THE SENATE AND THE ASSEMBLY ARE NOT AFFECTED BUT THERE ARE GOING TO BE LAWMAKERS WHO WILL BE LOOKING AT SOME OF THESE LINES AND THINKING TO THEMSELVES, WELL, YOU KNOW, IF A CERTAIN LINE IS DRAWN THIS WAY OR IF A BOUNDARY IS DRAWN THE OTHER WAY, I COULD EVENTUALLY RUN FOR THE U.S. HOUSE OF REPRESENTATIVES.

THERE IS SOME LEVERAGE THAT GOVERNOR HOCHUL HAS HERE WITH REDISSTRICTERRING, WITH THE BUDGET.

WILL SHE BE ABLE TO USE THAT LEVERAGE?

WILL SHE BE ABLE TO USE THAT POW IN ORDER TO GET WHAT SHE WANTS IN THE BUDGET BY AROUND APRIL 1ST?

AND YOU MENTIONED REDISTRICTING COMMISSION AND THE SAGA THAT'S ONGOING WITH THESE MAPS.

WHAT IS THE SMART PLAY HERE FOR DEMOCRATS?

YOU KNOW, I KNOW OBVIOUS THIS IS NOT A NEW ISSUE.

HOW CAN DEMOCRATS NOT TEMPT THEMSELVES FROM, YOU KNOW, BEING TOO NOT GOING OVER THE LINE IN TERMS OF-- GREEDY.

THEY DON'T WANT TO BE GREEDY.

THANK YOU.

[LAUGHTER] IF THEY ARE GREEDY, REPUBLICANS WILL BRING THEM BACK TO COURT.

RIGHT.

AND REPUBLICANS COULD EVENTUALLY WIN, WASH, RINSE, REPEAT.

HAVE THEY LEARNED THEIR LESSON?

WHAT HAPPENED WITH THE HOUSE MAPS LAST TIME AROUND WAS A REJECTION ON PROCESS NOT NECESSARILY ON JERRYMANDERING.

THERE WAS A PARTISAN JERRYMANDERING COMPLAINT WHEN IT CAME TO THE HOUSE LINES AS WELL, THOUGH.

YES.

THERE WAS THAT PROCESSING THAT ULTIMATELY KILLED IT.

PARTISAN ISSUE, THEY DID CUTE BY HALF WITH HOW FAR THEY WENT WITH SOME OF THE LINES.

THE LONG ISLAND HOUSE DISTRICT, I THINK, WAS ONE THAT A ROT OF PEOPLE-- [LAUGHTER] THE SOUND SHORE OF WESTCHESTER AND YOU KNOW, THE GREAT GATSBY EGG OF LONG ISLAND ALL DRAWN TOGETHER WAS A BIT MUCH.

BUT IF DEMOCRATS ARE ABLE TO ADJUST THESE LINES SO THINGS ARE A LITTLE BIT BETTER FOR THEM, SAY IN CENTRAL NEW YORK WITH CONGRESSMAN BRANDON WILLIAMS' SEAT IN THE SYRACUSE AREA AND IF YOU GO DOWN INTO THE LOWER HUDSON VALLEY, THE MID-HUDSON VALLEY WITH MARK MOLINARO AND OUT ON LONG ISLAND, WELL, THEN DEMOCRATS ARE POTENTIALLY IN BUSINESS HERE IN NEW YORK TO EVEN HAVE A REAL CHANCE OF FLIPPING THE NARROWLY DIVIDED HOUSE AND MAKE BROOKLYN'S HAKEEM JEFFRIES SPEAKER OF THE HOUSE AND THEY WILL BE ABLE TO DO IT THROUGH NEW YORK.

REPUBLICANS ARE ALSO VERY WELL AWARE OF THIS, AND THEY'RE GOING TO BE FUNDING THE-- YOU KNOW, AT LEAST TENS OF MILLIONS OF DOLLARS, IF NOT A HUNDRED MILLION DOLLARS TO TRY TO KEEP THE HOUSE IN THEIR HANDS.

IT'S CRITICAL TO REMEMBER, JUST A FEW TWEAKS HERE AND THERE COULD REALLY AFFECT THE HOUSE MAP.

EXACTLY.

YOU KNOW, BRANDON WILLIAMS WON IN 2022 BY A VERY NARROW MARGIN.

A FEW CHANGES IN THE IN THAT CENTRAL NEW YORK DISTRICT COULD MAYBE SWAY AT IT THE DEMOCRATS' WAY.

IF HE GETS TOMORROW KINS COUNTY, HE'S DONE.

THAT'S THE CONVENTIONAL WISDOM.

YEAH.

AND YOU GOT TO KEEP IN MIND, TOO, THAT THE DEMOCRATS MIGHT BE INTERESTED IN PLAYING A LITTLE DEFENSE AS WELL.

PAT RYAN IN THE HUDSON VALLEY, TOP TARGET OF REPUBLICANS, A FEW CHANGES HERE AND THERE COULD GO FROM A, YOU KNOW, A REAL SWING DISTRICT TO SOMETHING THAT'S MAYBE MORE LEAN DEMOCRATIC AND EVEN SAFE.

WE'LL HAVE TO SEE.

PROBABLY NOT SAFE.

IT WAS A NARROW RACE AND A FEW CHANGES HERE AND THERE ON LONG ISLAND, HUDSON VALLEY, CENTRAL NEW YORK COULD REALLY CHANGE THINGS, CHANGE DEMOCRATS' FORTUNE.

THERE IS A CAVEAT HERE AS DAVE MENTIONED.

THERE'S REALLY ONLY SO MUCH DEMOCRATS CAN DO IN ORDER TO GAIN THESE SEATS SO THAT VARIABLE TO WIN THESE.

THEY CAN'T DO IT IN SUCH A WAY THAT'S MARKEDLY UNFAIR, BUT THEY ALSO CANNOT DRAW, SAY, CONGRESSMAN MARK LAWLER IN THE WESTCHESTER, ROCKLAND COUNTY AREA, SO THAT IT'S A MUCH MORE DEMOCRATIC FRIENDLY SEAT THAT COULD, IN TURN, MAKE LIFE A LOT EASIER FOR SOMEBODY LIKE MARK MOLINARO, SAME GOES ON LONG ISLAND WHERE THEY'RE TRYING TO PICK UP, AT THE VERY LEAST NOT JUST THE GEORGE SANTOS SEAT IN THE SPECIAL ELECTION ON FEBRUARY 13 BUT ALSO ANTHONY D'ESPOSITO'S SEAT, NICK LALOTA AS WELL.

THERE'S ONLY SO MUCH THAT CAN REALLY BE MOVED AROUND IN THIS JIGSAW PUZZLE BEFORE THINGS START TO BE A LITTLE TOUGHER FOR, SAY, SOME DEMOCRATIC MODERATES AND EASIER, EVEN, FOR SOME REPUBLICANS.

AND IT'S POSSIBLE, THOUGH, WE'RE GETTING A LITTLE BIT AHEAD OF OURSELVES, BECAUSE IN EARLY JANUARY WHEN WE'RE TALKING RIGHT NOW, THE PEN IS HELD BY THE REDISTRICTING COMMISSION.

THE FIRST GO-ROUND, THERE WAS AN ASSUMPTION THAT PEN WOULD BE TAKEN AWAY FROM THEM AND THE DEMOCRATS AND THE LEGISLATURE WOULD ULTIMATELY DRAW THE LINES.

THERE COULD BE A CALCULUS FROM THE SENATE AND ASSEMBLY AND DEMOCRATIC LEADERSHIP, OKAY, LET'S SEE WHAT THE ASSEMBLY, LET'S SEE WHAT THE COMMISSION IS ABLE TO DRAW UP AND MAYBE THESE LINES ARE PALLETTABLE TO US AND WE DON'T WANT TO RISK A COURT CHALLENGE.

SO WE'RE GOING TO TAKE THIS REDISTRICTING COMMISSION'S WORK AND WE'RE GOING TO LIVE WITH IT.

RIGHT.

IT'S POSSIBLE WE MIGHT NOT EVEN GET TO THAT POINT WHERE THERE'S THAT BACK ROOM LINE DRAWING BY DEMOCRATS WHERE THEY ARE CONSIDERING THESE HARD QUESTIONS OF HOW MUCH DO WE MOVE, HOW MUCH DO WE TAKE, SO, YOU KNOW, MAYBE IN A PERFECT, GOOD GOVERNMENT WORLD THE REDISTRICTING COMMISSION HAS THE FINAL SAY.

IF THEY CAN AGREE ON A SINGLE SET OF MAPS.

RIGHT.

AND IF THEY DEADLOCK AND IT GOES TO LEGISLATURE BUT THE BOTTOM LINE IS HERE.

WHAT HAPPENS WITH THE INDEPENDENT REDISTRICTING COMMISSION, AS IT'S CALLED AND IT'S NOT MY WORD.

[LAUGHTER] BUT WHAT HAPPENS WITH THE REDISTRICTING COMMISSION AND THEN ULTIMATELY HOW THE LEGISLATURE AND THE GOVERNOR ACT REALLY COULD DETERMINE WHO CONTROLS THE HOUSE OF REPRESENTATIVES AND THE COURSE OF THE COUNTRY FOR THE NEXT TWO YEARS.

RIGHT.

AND YOU KNOW THAT IS A CONGRESSIONAL RACES BUT WHAT ABOUT THE STATE SENATE AND ASSEMBLY RACES NEXT YEAR?

YOU KNOW, HOW DO LAWMAKERS BALANCE THEIR RESPECTIVE LEGISLATIVE AGENDAS AND YOU KNOW, RUNNING FOR RE-ELECTION FOR ELECTION NEXT YEAR?

I THINK IN THE STATE SENATE EVERYONE'S ALWAYS LOOKING IN THE SUBURBS OF NEW YORK CITY PARTICULARLY.

LONG ISLAND IS A PLACE WHERE THE DEMOCRATS REALLY, YOU KNOW IN 2018, 2020, ALMOST ELIMINATED ALL THE REPUBLICANS IN THE STATE SENATE BUT NOW THE REPUBLICANS HAVE, YOU KNOW, REALLY CLAWED BACK.

YOU KNOW I THINK IT'S SIX OF NINE ARE REPUBLICANS.

THEY HAVE SEVEN.

SEVEN?

YEAH.

IT'S HARD TO KEEP TRACK.

SO DEMOCRATS ARE GOING TO TRY TO MAKE ANOTHER PUSH ON LONG ISLAND, GET BACK SOME OF THAT TERRITORY, ESPECIALLY NASSAU COUNTY AND I THINK THAT COULD REALLY BE WHERE DEMOCRATS EITHER GO WELL BEYOND THAT SUPERMAJORITY ONCE AGAIN OR LITTLE BY LITTLE, REPUBLICANS BRING IN BELOW A SUPERMAJORITY AND EVEN COME IN WITH A HALF DOZEN SEATS OF THE MAJORITY, BUT REPUBLICANS REGAINING THE MAJORITY, I DON'T THINK THAT'S A QUESTION.

IF YOU'RE A SITTING MEMBER OF THE LEGISLATURE RIGHT NOW, PARTICULARLY IN THE STATE ASSEMBLY, YOU'RE NOT NECESSARILY WORRIED ABOUT A GENERAL ELECTION CHALLENGE FROM A REPUBLICAN.

YOU'RE MUCH MORE WORRIED ABOUT A CHALLENGE TO YOUR LEFT FLANK IN A DEMOCRATIC PRIMARY FROM, SAY, SOMEBODY WHO HAS A DEMOCRATIC SOCIALIST TIES OR ENDORSEMENT FROM THE WORKING FAMILIES PARTY.

THAT IS A MAJOR CONCERN ESPECIALLY IN THE STATE ASSEMBLY WHICH WE HAVE SEEN BECOME QUITE FRANKLY, AND A LOT OF PEOPLE WOULD AGREE EVEN IN THE ASSEMBLY FURTHER AND FURTHER TO THE LEFT AND YOU STILL HAVE SOME MODERATES FROM UPSTATE NEW YORK, FROM THE SUBURBAN AREAS OF NEW YORK WHO ARE A LITTLE BIT MORE MODERATE BUT YOU ARE SEEING INCREASINGLY PROGRESSIVE LAWMAKERS GET ELECTED AFTER WINNING DEMOCRATIC PRIMARIES ESPECIALLY IN QUEENS AND BROOKLYN AND OTHER PARTS OF NEW YORK CITY AND EVEN UP INTO THE HUDSON VALLEY.

SO THE STATE ASSEMBLY IS CHANGING AND THAT COULD HAVE REAL REVERBERATIONS DOWN THE ROAD FOR GOVERNOR HOCHUL WHO HAS A MUCH DIFFERENT STATEWIDE CONSTITUENCY THAT'S A LOT MORE MODERATE.

AND HANGING OVER ALL OF THESE ELECTIONS WHETHER IT'S THE PRIMARIES OR THE GENERAL IS A PUBLIC CAMPAIGN FINANCE SYSTEM THAT'S GOING TO TAKE EFFECT IN 2024 AND NICK JUST LAID OUT, THAT'S GOING TO BE A BOONE FOR SOME OF THESE PROGRESSIVES WHO ARE MOUNTING PRIMARY CHALLENGES TO DEMOCRATS AND THEN TURN TO THE GENERAL ELECTION.

I THINK IT'S GOING TO BE HELPFUL FOR REPUBLICAN OUTSIDER WHO ARE TRYING TO TAKE ON DEMOCRATIC INCUMBENTS.

THE SYSTEM WAS BASICALLY HELD UP BY GOVERNOR HOCHUL WITH A VETO AT THE END OF THE YEAR BY SOME OF THE INCUMBENT DEMOCRATS WHO WERE LOOKING TO MAKE THE SYSTEM A LITTLE LESS FRIENDLY FOR THESE CHALLENGERS.

THERE WAS A BILL THAT WOULD HAVE MADE THE THRESHOLD FOR QUALIFY HIGHER.

IT WOULD HAVE ALLOWED FOR A LARGER CONTRIBUTIONS TO GET MAXED OUT WITH THE PUBLIC FINANCING DOLLARS.

THEY ALL SEEM TO BE BENEFICIAL FOR INCUMBENTS.

THAT WAS STRUCK DOWN.

SO IT'S REALLY GOING TO BE INTERESTING TO SEE HOW THIS IMPACTS THESE RACES WHICH ARE COMING UP, YOU KNOW, SOONER THAN WE EXPECT WITH JUNE PRIMARIES AND NOVEMBER WILL BE HERE BEFORE WE KNOW IT.

YEAH SO THERE'S A LOT THERE IN TERMS OF THE ELECTIONS NEXT YEAR BUT GOING BACK TO THE LEGISLATIVE SESSION, EARLIER WE TOUCHED ON HOUSING.

WE TOUCHED ON BAIL REFORM.

SO WHAT ARE SOME OF THOSE OTHER BIG POLICY ISSUES THAT WE SHOULD BE PAYING ATTENTION TO HEADING INTO NEXT SESSION?

WELL, I'M VERY PARTIAL TO TECH IN MY JOB.

WHILE IT'S NOT THE HIGHEST PROFILE ISSUES BY ANY MEANS, ARGUABLY AFFECTS EVERYDAY NEW YORKERS HAS MUCH AS ANYTHING ELSE.

DATA PRIVACY.

CALIFORNIA-- CALIFORNIA?

NEW YORK STATE IS NOW THE LARGEST STATE WITHOUT A DATA PRIVACY LAW.

NOW WHAT DOES THAT MEAN?

IT MEANS NEW YORKERS HAVE NO RIGHT TO KNOW WHAT DATA BIG COMPANIES, FACEBOOK FOR EXAMPLE, ACTUALLY COLLECT ON THEM.

THERE'S WHAT ADVOCATES CALL GOOD DATA PRIVACY LAWS AND BAD DATA PRIVACY LAWS.

SOME STATES HAVE ADOPTED ONE THAT LIKE VIRGINIA HAS ADOPTED LAWS THAT ARE VERY INDUSTRY FRIENDLY.

CALIFORNIA'S LAW IS HELD UP AS A REAL EXAMPLE, SOMETHING THAT'S VERY AGGRESSIVE FOR THE CONSUMER.

ANOTHER ISSUE THAT'S LIKELY TO COME UP WHETHER IT'S THE BIG ISSUE PROBABLY NOT, IS ARTIFICIAL INTELLIGENCE.

NEW YORK HAS FALLEN BEHIND OF OTHER STATES.

YOU KNOW, I THINK IN 2023, WE SAW MORE AND MORE STATES AT LEAST START TO STUDY THIS NEW TECHNOLOGY, GENERATIVE AI, CHATGPT, THAT TYPE OF STUFF AND HOW IT MIGHT AFFECT, YOU KNOW, STATE GOVERNMENT, HOW IT'S ALREADY USING AUTOMATION.

WE'VE SEEN THESE CONTROVERSIES RECENTLY IN NEW YORK CITY WITH NYPD USING FACIAL RECOGNITION SOFTWARE AND STUFF LIKE THAT.

SO WHILE THESE ISSUES PROBABLY AREN'T GOING TO AFFECT THE ELECTIONS AND THUS MIGHT TAKE A BACKSEAT FROM MOST LAWMAKERS, YOU KNOW, THEY'RE VERY IMPORTANT FOR NEW YORKERS AND WHILE EVERYONE IS PAYING ATTENTION TO, YOU KNOW, REDISTRICTING AND HOUSING AND ALL THESE OTHER IMPORTANT THINGS, KNOW, INDUSTRY LOBBYISTS ARE WORKING HARD TO PUSH ALL THESE REGULATIONS AND LAWS IN THEIR FAVOR.

MAYORAL CONTROL OF NEW YORK CITY SCHOOLS IS UP THIS YEAR.

THAT'S A MAJOR ISSUE FOR MAYOR ERIC ADAMS, WHO BY THE WAY IS FACING SOME OF HIS OWN ISSUES RIGHT NOW WITH A FEDERAL INVESTIGATION INTO HIS CAMPAIGN.

HE ISN'T ACCUSED OF ANY WRONGDOING, BUT IT'S SOMETHING KIND OF LOOMING OVER THE MAYOR AS HE'S TRYING TO GET HIS AGENDA THROUGH ALBANY AND THAT REALLY DOES START WITH EXTENSION OF MAYORAL CONTROL OF THE CITY SCHOOL SYSTEM AND YOU KNOW, I WAS TALKING TO A HANDFUL OF LAWMAKERS ABOUT THIS WHO HAVE BEEN HOLDING HEARINGS ON EDUCATION ISSUES, NOT JUST IN NEW YORK CITY BUT THE CITYWIDE AND THEY DO PLAN ON GRILLING HIM ABOUT THIS ON HOW THIS SHOULD BE EXTENDED, WHATEVER CHANGES THEY MAY LIKE TO SEE.

THEY MAY TRY TO PUSH THROUGH OVER ADAMS' OBJECTIONS WHO SAID, YES, THEY SAID THE OTHER DAY THAT HE WOULD LIKE TO SEE A STRAIGHT EXTENSION OF IT AS OTHER MAYORS, AS HIS PREDECESSORS HAVE GOTTEN IN THE PAST.

THERE'S ALSO GOING TO BE SOME PRESSURE ON THE GOVERNOR TO ADDRESS THE ROLLOUT OF RECREATIONAL MARIJUANA IN NEW YORK.

THERE HAVE BEEN SOME COMPREHENSIVE BILLS ADDRESSING SOME FARMERS' NEEDS, ADDRESSING THE TAX STRUCTURE FOR RECREATIONAL PRODUCT.

WHETHER THAT ACTUALLY MOVES IN THE LEGISLATURE REMAINS TO BE SEEN BUT I THINK THERE'S GOING TO BE A GROWING CHORUS IN BOTH HOUSES OF THE LEGISLATURE THAT SOMETHING NEEDS TO BE DONE POTENTIALLY TALKING INTO THE BUDGET BECAUSE THERE COULD BE SOME ECONOMIC RAMIFICATIONS IF THEY DO CHANGE THE TAX STRUCTURE OF THE RECREATIONAL MARIJUANA SALES.

AND THERE ARE DEMOCRATIC MAJORITIES IN BOTH CHAMBERS BUT IF YOU'RE A REPUBLICAN IS THERE A CHANCE-- IS THERE A WORLD IN WHICH YOU COULD HAVE YOUR AGENDA PUSHED FORWARD?

WHAT SHOULD THE PLAYBOOK BE FOR REPUBLICANS?

WELL, THEY'RE GOING TO HAVE TO TRY TO GET SOME SORT OF DEMOCRATIC SUPPORT.

BECAUSE THIS IS, QUITE FRANKLY, THINGS WORK IN ALBANY.

IF YOU ARE IN THE MAJORITY, WIN HE TAKE ALL WHEN IT COMES TO GETTING THEIR POLICIES THROUGH.

ONE THING THAT WILL BE INTERESTING IS IT'S BEEN AN ISSUE THAT YOU'VE SEEN LARGELY REPUBLICANS TALK ABOUT BUT YOU'RE STARTING TO SEE SOME DEMOCRATS RAISE CONCERNS ABOUT THIS.

THAT IS THE OUTMIGRATION OF PEOPLE FROM NEW YORK.

WE'RE SEEING A STEADY STREAM OF PEOPLE LEAVE THE STATE AND IT'S NOT JUST THE RICHEST OF THE RICH, WHICH IS GOING TO HAVE REAL RAMIFICATIONS FOR OUR TAX REVENUE AND NEW YORK STATE BUDGETS BUT ALSO PEOPLE WHO ARE MAKING WHAT WE CONSIDER TO BE MIDDLE CLASS INCOMES.

THEY'RE FINDING NEW YORK STATE AND NEW YORK CITY, IN PARTICULAR, TOO EXPENSIVE TO LIVE IN, AND SO THERE IS GOING TO BE A REAL DISCUSSION, I THINK, FROM EVEN SOME DEMOCRATS OVER HOW TO ADDRESS THIS ISSUE OF LIVING IN NEW YORK.

I MEAN, HOUSING IS PROBABLY ONE ANSWER IN REDUCING THE COST OF HOUSING, BUT THERE ARE GOING TO BE KIND OF A WIDE ARRAY OF MENU OPTIONS FOR LAWMAKERS TO CONSIDER HERE ON THIS OUTMIGRATION QUESTION.

IT'S BEEN A REPUBLICAN ISSUE IN THE PAST BECAUSE IT'S LARGELY BEEN SOMETHING THAT HAS AFFECTED UPSTATE NEW YORK AND UPSTATE NEW YORK'S POLITICAL POWER BUT WE ARE STARTING TO SEE IT AFFECT ALL OF NEW YORK STATE'S POLITICAL POWER BECAUSE WE'RE LOSING CONGRESSIONAL REPRESENTATION AS A RESULT OF THIS.

WE'RE GOING TO LOSE PROBABLY TWO HOUSE SEATS IN THE NEXT ROUND OF REDISTRICTING AFTER THE 2030 CENSUS AND WE LOST ONE AFTER THE 2020 CENSUS, SO THIS IS A SERIOUS PROBLEM FOR NEW YORK.

IT'S DILUTING NEW YORK'S POLITICAL POWER.

IT'S DILUTING NEW YORK'S ECONOMIC POWER NATIONALLY, AND LAWMAKERS FROM BOTH PARTIES ARE PROBABLY GOING TO HAVE TO COME TO SOME SORT OF WAY OF ADDRESSING THIS ISSUE.

YOU KNOW, IT WOULD BE REALLY INTERESTING TO SEE IT APPROACHED IN SOMETHING THAT'S NOT JUST JOBS AND ECONOMIC DEVELOPMENT-FOCUSED.

YOU KNOW, I THINK OVER THE YEARS, ESPECIALLY WITH HER PREDECESSOR, ECONOMIC DEVELOPMENT WAS KIND OF SEEN, YOU KNOW, AS THE WAY TO SOLVE OUTMIGRATION, AT LEAST FROM UPSTATE.

CREATE JOBS AND PEOPLE WILL START LIVING IN SYRACUSE AND INCREASE NUMBERS AGAIN.

THE BUFFALO BILLION.

THE BUFFALO BILLION AND UNDER THIS GOVERNOR, THE MICRON DEAL IN SYRACUSE TO BRING MICROCHIP, SEMICONDUCTOR MANUFACTURING TO SYRACUSE.

THAT MAY OR MAY NOT WORK OUT, BUT YOU KNOW, ONE OF THE REASONS THAT REPUBLICANS BRING UP FOR WHY NEW YORKERS ARE LEAVING ARE THINGS THAT DON'T REALLY HAVE MUCH TO DO WITH ECONOMIC DEVELOPMENT.

YOU KNOW, TAXES, SOME, YOU KNOW, MAYBE CITE POLITICAL LIBERALISM AS SOMEHOW DRIVING PEOPLE OUT.

YOU KNOW, ISSUES OF PERSONAL LIBERTY, THAT TYPE OF THING.

BOTTOM LINE IS, YOU KNOW, IT'S NOT JUST ABOUT JOBS BUT IT'S BEEN TREATED AS PRETTY MUCH JUST ABOUT ECONOMICS AND JOBS FOR MANY YEARS AND IT WILL BE INTERESTING TO SEE HOW DEMOCRATS MIGHT TAKE THE BALL AND PUSH IT INTO NEW DIRECTIONS, WHETHER OR NOT THEY'RE SUCCESSFUL, WE'LL SEE.

THE BIG CHALLENGES HERE LIKE AFTER THE COVID PANDEMIC, IT'S EASIER TO WORK FROM WHEREVER NOWADAYS.

DO YOU NOT NECESSARILY HAVE TO WORK IN THE STATE IN WHICH YOUR COMPANY IS BASED AND THAT MEANS YOU CAN WORK OUT OF YOUR HOME OFFICE VIRTUALLY FIVE DAYS A WEEK.

AND THAT MAKES IT A LOT EASIER FOR PEOPLE TO MOVE TO DIFFERENT PARTS OF THE COUNTRY.

YOU CAN LIVE IN IDAHO OR UTAH AND WORK FOR A NEW YORK-BASED FINANCIAL COMPANY, FOR INSTANCE.

SO THERE IS GOING TO HAVE TO BE SOME SORT OF RECKONING HERE WITH ADDRESSING THAT IT IS EASIER THAN EVER FOR NEW YORKERS TO BECOME NORTH OR SOUTH CAROLINIANS OR FLORIDIANS OR TEXANS, WHATEVER YOU WANT TO SAY BECAUSE THAT IS GOING-- AT END OF THE DAY, IT IS A JOBS AND ECONOMIC ISSUE BECAUSE NEW YORK IS LOSING PEOPLE AND NEW YORK IS LOSING TAX DOLLARS AND UNFORTUNATELY, WE DO HAVE TO WRAP UP SOON.

IN THE LAST COUPLE OF MINUTES, I'D JUST LOVE TO HEAR FROM EACH OF YOU WHAT YOU ALL ARE LOOKING TO REPORTING ON THIS YEAR.

ARE THERE ANY THREADS TO PULL ON AS WE START THE LEGISLATIVE SESSION?

WELL, I'M WATCHING THE HIGHER EDUCATION BUDGET IN 2023.

THEY DID SUCCEED IN GETTING AN INVESTMENT IN SUNY AND NOW 2024 COMES AND THEY'RE SAYING WE'RE GOING TO HAVE LONG-TERM DEFICITS THAT NEED TO BE ADDRESSED.

IS THE GOVERNOR GOING TO MAKE MORE INVESTMENTS IN SUNY, OR WILL THEY FINALLY INCREASE TUITION, WHICH IS WHAT THEY WERE TRYING TO DO IN 2023 AND ULTIMATELY GOT BLOCKED.

WATCHING THE IMPACT OF THE LEGISLATIVE SESSION, THE POLICIES THAT ARE PASSED AT THE STATE LEVEL, WHAT IS THAT AFFECT GOING TO HAVE ON THE HOUSE RACES GOING INTO THIS YEAR?

YOU KNOW, WE'VE SEEN REPUBLICANS IN THE PAST TAKE A LOT OF THE DEMOCRATIC CONTROVERSIES THAT HAVE COME OUT OF ALBANY AND USE THEM QUITE EFFECTIVELY IN CAMPAIGNS, SO WILL THERE BE AN IMPACT THIS TIME AROUND?

I'M ALWAYS LOOKING FOR THE UNEXPECTED TRAIN WRECKS.

[LAUGHTER] I THINK THE WHOLE ISRAEL-PALESTINE ISSUE CAME UP LAST YEAR.

YOU WOULD THINK IT WOULD HAVE NOTHING OR VERY LITTLE TO DO WITH STATE POLITICS BUT PEOPLE FEEL VERY STRONGLY AND ESPECIALLY FOLLOWING THE OCTOBER ATTACK BY HAMAS, YOU KNOW, JUST THERE'S KIND OF A LOT OF BOILING ANGER AMONG SOME DEMOCRATS AGAINST THEIR MORE LEFTIST COLLEAGUES, PARTICULARLY THOSE ASSOCIATED WITH THE DEMOCRATIC SOCIALISTS OF AMERICA AND TO WHAT EXTENT THIS MIGHT AFFECT THINGS THAT HAVE NOTHING TO DO WITH ISRAEL-PALESTINE, WE'LL SEE.

BUT ALREADY YOU'VE GOT SOME MEMBERS SAY THEY'RE NOT GOING TO WORK WITH CERTAIN PEOPLE EVER AGAIN AND YOU KNOW, I WOULD NOT BE SURPRISED AT ALL IF LIKE THE SETTLER BILL COMES UP AGAIN OR ANYTHING ELSE THAT STARTS A HUGE DUMPSTER FIRE IN THE LEGISLATURE.

WELL, THERE'S A LOT TO LOOK FORWARD TO THIS YEAR.

BUT WE'LL HAVE TO LEAVE IT HERE FOR NOW.

THANK YOU SO MUCH FOR NOW.

AND WE WERE SPEAKING WITH THE DAVE LOMBARDO OF THE CAPITOL PRESS ROOM, ZACH WILLIAMS OF BLOOMBERG LAW, AND NICK REISMAN OF POLITICO.

AND YOU CAN JOIN US EVERY WEEK TO GET THE LATEST ON THE 2024 LEGISLATIVE SESSION.

NEXT WEEK, WE'LL BE JOINING YOU LIVE WITH COVERAGE FROM GOVERNOR KATHIE HOCHUL'S STATE OF THE STATE ADDRESS, TUESDAY AT 1:00 P.M. YOU CAN ALSO VISIT OUR WEBSITE FOR MORE.

THAT'S AT NYNOW.ORG.

THAT DOES IT FOR THIS EPISODE OF "NEW YORK NOW."

THANK YOU FOR TUNING IN AND SEE YOU NEXT WEEK.

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