Hochul says tax increase talks depend on what's next in Washington

And the top 5 most-lobbied bills in July and August were ...

Good afternoon — It’s Monday and National Hiking Day.

In today’s CapCon:

• Gov. Kathy Hochul says what comes out of Washington will ultimately drive whether she pursues tax hikes next year.

• Here are the top 5 bills that were lobbied on the most in July and August.

• Another Democrat in the state Assembly says they won’t seek reelection in 2026.

• A new bill seeks to level the playing field for small, independent grocery stores when they restock products.

• This Week in New York History: Susan B. Anthony’s crime and a Triangle Shirtwaist fire warning.

Names in today’s CapCon: Kathy Hochul. Donald J. Trump, John Liu, Cordell Cleare, Stacey Pheffer Amato, Brown & Weinraub, Bolton-St. Johns, Kasirer, Greenberg Traurig and Ostroff Associates

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Today’s Capitol Confidential is sponsored by Food & Water Watch.

Tell Gov. Hochul to sign the Legislature’s repeal of the 100-foot rule. New Yorkers shouldn’t have to subsidize new gas hookups. End this outdated giveaway and cut costs for families. — Food & Water Watch

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Hochul on Monday (New York Governor’s Office)

💵 Hochul says potential tax hikes hinge on Washington

New York has two choices in the next state budget, which is currently projected to have a $4.2 billion revenue gap.

Gov. Kathy Hochul and state lawmakers can either find $4.2 billion in new revenue or find areas to reduce spending to match the amount of revenue expected to come in. Neither option would be a permanent solution; a $7.5 billion gap is expected in 2027.

Hochul has already said she has no intentions to entertain income tax increases despite growing calls within her party to “tax the rich.”

That doesn’t mean other tax hikes are off the table. But those will depend on what happens in January, when President Donald J. Trump and Congress are expected to revive discussions on spending.

“When we talk about these things, even a few months ago, we don’t have a clear line of sight to know what our challenges are going to be or whether the challenge is not as great as anticipated,” Hochul said.