N.Y. Democrats far outraised Republicans in the last quarter before Election Day

And New York is in a pickle. What's it going to take to find a solution?

Good afternoon — it’s Wednesday and Dictionary Day.

In today’s CapCon:

• Two of Hochul’s top aides — KPK and Kathryn Garcia — on state finances

• A.I. regulation and energy grid preparation at state agencies

• How much candidates for Congress raised, spent and still have in latest quarter

• On The Bill: Changing the names of New York’s courts

• New Bills of Note: changing the New York City charter

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❗ CapCon Note: We’re halfway through the week and Friday is in sight. Thanks for reading today.

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— Dan

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(Krisanapong Detraphiphat/Getty Images)

💵 New York is in a money crunch heading into 2025. How can the state get out?

Spending continued to rise in this year’s state spending plan for some of New York’s biggest budgetary buckets.

Medicaid spending is expected to increase to about $35 billion and schools were given about $36 billion in aid in the state budget approved in April. Regardless of how you feel about those investments — that’s a lot of money.

Other costs are also on the horizon for New York, like the state’s energy transition toward renewable sources and the never-ending infrastructure needs from Buffalo to Babylon. That includes public transit in New York City.

That puts New York in a pickle — a crunch, if you will. If spending continues to rise, the money has to come from somewhere.

Karen Persichilli Keogh, one of Gov. Kathy Hochul’s top aides, said Wednesday at a panel discussion, hosted by the Citizens Budget Commission in New York City, that that’s the big question on the table heading into next year’s state budget. Hochul will propose her spending plan in January.