Hochul to pitch 'efficiencies' in state spending to soften budget blows

And Stefanik softened her rhetoric on Mike Johnson Thursday.

Good afternoon — It’s Thursday and World Wildlife Conservation Day.

In today’s CapCon:

• Hochul said Thursday she plans to announce new ways the state can find “efficiencies” in spending and here’s the date for State of the State.

• And here’s how much she said the state is projected to save from the CDPAP transition. It’s more than expected.

• U.S. Rep. Elise Stefanik softened her rhetoric on House Speaker Mike Johnson Thursday, saying she gave him some advice.

• New York is launching a registry of homes that could contain toxic levels of lead.

• Hochul signed a bill Thursday to expand coverage for lung cancer screenings.

• A new bill seeks to set stronger sanctions against corporations that defraud consumers, including new “equity fines.”

Names in today’s CapCon: Kathy Hochul, Andrew Cuomo, Mike Johnson, Elise Stefanik, Donald Trump, Zellnor Myrie

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

Tell Governor 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 End this outdated giveaway and cut costs for families.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 Thursday (New York Governor’s Office)

💰 Hochul says she’s planning to announce ‘efficiencies’ in state spending

The State of the State has now been scheduled for Jan. 13 at 1 p.m. in Albany. That’s followed by the unveiling of Hochul’s executive budget.

There’s been a lot of talk among state officials in New York about the state’s expected shortfalls ahead of next year’s state budget.

I told you Wednesday about how Gov. Kathy Hochul is eyeing ‘other revenue sources’ instead of jumping to hikes in income and business tax rates to address those challenges. That’s one side of the coin.

The other side is spending, which has increased exponentially in New York over the last decade. The state budget was $150 billion in 2015 while the current spending plan is $254 billion.

Hochul has taken a close look at spending since July, when changes in federal funding from the “One Big Beautiful Bill” created a $750 million hole in the state’s current budget, which runs through the end of March.

Her administration was able to find the funding to fill it after she asked state agencies to tighten their belts.

“We went back to our agencies and said (to) squeeze what you can,” Hochul said while speaking with reporters Thursday.

She was taking questions after signing a bill about insurance coverage for lung cancer screenings. More on that bill further down.

But those efforts to “squeeze what you can” are not expected to be a one-time request, Hochul signaled.