Hochul asks state agencies for regulations to 'repeal or reform'

And Assemblyman Jon D. Rivera's state Senate run did not sit well with a potential challenger.

Good afternoon — It’s Thursday and Moldy Cheese Day.

In today’s CapCon:

• New York’s state agencies are being asked to find rules and regulations that could be scrapped, and to keep spending flat.

• Assemblyman Jon D. Rivera said Thursday he’s running for state Senate. His announcement was “deeply selfish,” a potential challenger said.

• New York will soon award three new casino licenses downstate. But the length of those licenses will depend on their skin in the game.

• The state’s economic development agency has proposed regulations to enact tax credit changes from the state budget.

• The Assembly is slated to hold two hearings next week. Here’s what they are.

Names in today’s CapCon: Kathy Hochul, Blake Washington, Jon D. Rivera, Jeremy Zellner, India Walton, Zohran Mamdani, Byron Brown

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Hochul and State Budget Director Blake Washington (Will Waldron/Times Union)

🔎 New York’s state agencies are being asked to repeal regulations, keep spending flat

As Gov. Kathy Hochul prepares her executive budget proposal for January, the state Division of Budget issued a new challenge to state agencies Thursday.

We already knew Hochul and Democrats in the Legislature were expecting a difficult budget cycle due to anticipated cuts in federal funding. Those cuts, Hochul has said, will amount to at least $3 billion.

That’s on top of the $7.5 billion gap that was already anticipated ahead of next year’s budget negotiations.

State Budget Director Blake Washington made two requests of state agencies Thursday as a result. One is familiar. The other is not.

“Moving forward, agency budget requests for State Fiscal Year (SFY) 2027 should not exceed the total SFY 2026 Enacted Budget agency funding levels, excluding one-time investments,” Washington wrote.

We’re currently in fiscal year 2026 for the state so he’s saying that agencies should expect to receive any more funding in next year’s state budget above what Hochul and lawmakers approved in May, when the current spending plan was passed.

That doesn’t mean that everything stays the same. Costs go up for agencies. Collective bargaining agreements require raises for workers and other costs fluctuate all the time.

So, if an agency doesn’t expect to receive more funding but is anticipated to have higher costs, it’s going to have to find somewhere to reduce spending. Some agencies have already reached out to industry stakeholders to solicit ideas.

But Washington’s second request is one that we don’t usually see in Albany.