Friday, January 17, 2025
In case you’re still counting, Election Day happened six weeks ago, and all of the post-mortems on both sides reached the same conclusion: The No. 1 issue for voters was the economy, and the Democrats failed to pay attention to that issue, even though James Carville has been telling his party that “It’s the economy, stupid,” since 1992.
As we approach a new year, nothing has changed. The voters voted their pocketbooks, and they will judge all national and state politicians by what they do to ease people’s financial tensions. Incoming President Donald Trump says he hasn’t forgotten about his promise to cut the price of basic necessities, and his legacy will be judged by the promises he will keep.
Gov. Kathy Hochul, meanwhile, has gotten the message, and will propose a 2025 budget that will be loaded with programs to help wage earners on many levels. Her first salvo into the coming year is an interesting one. She wants to give every family that makes less than $300,000 a check from the state for $500, and individuals who make less than $150,000 a one-time payment of $300.
Fiscal conservatives and budget hawks jumped on the plan with all kinds of criticism, but it will take more than a few barbs to kill Hochul’s one-shot anti-inflation proposal. Why is this plan being proposed, and where would the money come from? During the coronavirus pandemic, the state collected a bonanza of tax revenue. Housebound voters purchased billions of dollars’ worth of necessities, and the state was the beneficiary. Those funds are sitting in some budget account, and if the governor doesn’t spend them first, the State Legislature surely will.
The rebate proposal is just one of many taxpayer benefits that Hochul will announce. There are numerous ways to reward consumers, and the governor can be the first one to offer them when she announces her proposed budget in late January. Every one of the ideas in her plan will be aimed at saving people money.
Aside from the fact that Hochul is paying attention to the message of this year’s election, she is also keeping an eye on the political calendar. She will be seeking re-election in 2026, and now is as good a time as ever to make proposals that appeal to the average voter. The timing is important, because there are always a few ambitious Democrats who think they can do a better job, as well as some Republicans who are looking for promotions.
Even New York City Mayor Eric Adams has climbed on the tax-cutting bandwagon. He has proposed a modest cut for people on the lowest rung of the income ladder, but a check in the mail can be a much more potent gift for a voter in 2025.
Is a rebate check a new political idea? Some years back, when the state was running the Long Island Lighting Company, then Gov. George Pataki approved a one-time payment for utility customers. It was an instant hit.
Are there many ways to put money in voters’ wallets? From personal experience, I can think of a few. While serving as chair of the Assembly’s Ways and Means Committee, I Iearned a lot about sales taxes. New York’s tax laws cover thousands of day-to-day household items. Some of those taxes could be eliminated, and consumers would know very quickly why their expenses went down. The flip side of sales tax cuts is that they cost the state money, but if there’s money in the cupboard, why not spend it?
In the weeks ahead, New York voters will be romanced with one proposal after another. The trick for the governor is to be the first one to come up new ideas that the Legislature will have a hard time rejecting. It’s time for the state to start giving back, even if that comes in small pieces.
Jerry Kremer was an assemblyman for 23 years, and chaired the Assembly’s Ways and Means Committee for 12 years. He now heads Empire Government Strategies, a business development and legislative strategy firm. Comments about this column? jkremer@liherald.com.
