Audio & Rush Transcript: Governor Hochul is a Guest on LI News Radio with Jay Oliver

Earlier today, Governor Kathy Hochul was a guest on LI News Radio with Jay Oliver.

AUDIO: The Governor's remarks are available in audio form here.

A rush transcript of the Governor's remarks is available below:

Jay Oliver, LI News Radio: It's great having her back on these airwaves. Who am I talking about? Well, Governor Kathy Hochul, of course joins us on this Wednesday morning in mid-May and a lot happening. And we say a very good morning to Governor Hochul.

Governor Hohcul: Good morning, Jay.

Jay Oliver, LI News Radio: Great having you back. How have you been? All right? I know you've been busy.

Governor Hochul: I'm doing great. Well I'm heading out to Long Island in a little bit once again. I spend a great deal of time there and love the people, always stop in a diner or two - it's one of my favorite things to do on Long Island. And I'm excited because the Budget has so many wins for the residents of the State and Long Island in particular. And I will say this, many of our initiatives were driven by some instances that were happening on Long Island, like auto insurance, Jay.

We saw what was happening with all those staged crashes and people defrauding the system and scamming it, and now they're paying higher rates - Long Islanders paying a huge increase in auto insurance rates, so I tackled that and we've got some wonderful successes there. But that's just an example of how the time I spend with people and listen to them really translates into real results. Sometimes they're major fights, this one was a major fight, but I feel really good about where we are.

Jay Oliver, LI News Radio: All right, let's talk about the Budget. You came through last week, Governor, to the cameras. You were excited, regarding the Budget, and then all of a sudden we got some feedback, some pushback from the State [Legislature] in particular. The Assembly Speaker, Carl Heastie, saying, "Wait a minute. Not so fast. We didn't agree to anything." What about that aspect? It's a large number, now, $268 billion dollars of Budget money. We thought we had something, we didn't have something. What was that like? What was the mindset there for you? Let's hear it.

Governor Hochul: Jay, this has happened every single year. I put policy in the Budget, the Legislature hates when I do that, and it's the only way that I can really focus on my affordability agenda, or - like I had to do over the last few years - changing the bail laws to make them more common sense and protect communities, and changing discovery laws, and cracking down on retail theft, and changing laws so you can't have people who are in throes of mental illness be able to be left on the streets and not get care, so we had involuntary confinement. And even cell phones. I mean, cell phones in schools, we removed them, and I can tell you it's one of the greatest accomplishments is to give our kids their childhood back and not be bullied all day long on cell phones.

So what I'm saying is these are important policies that I have to get through, and this year, I wanted to get through more of my affordability agenda. I wanted to have increased support for people to pay their utilities. We have $1 billion to help cover those costs. I wanted to make sure we changed the laws on all the restrictions, the red tape that slows down the building of housing - we got that done. We changed the auto insurance liability laws and have higher penalties for fraud, got that done. So when I think about what we've accomplished, yes, I had had all that accomplished at the time I came out and said, "We're done." I was done with my policy issues. And I was very clear that we still have some numbers to work out, but we had really come to probably 97 percent of the way there. So it was not premature, but listen, legislators want it done a certain way. I'm the Governor, I want it done a certain way. But ultimately, I'm here fighting for New Yorkers.

Jay Oliver, LI News Radio: All right, with that being said, do New Yorkers have anything to worry about regarding help that you're giving New York City and the Mayor trying to plug that hole? About $4 billion. What does that mean? I know a lot of people are concerned, Governor, maybe a raising of taxes or whatnot to supplement the filling of that hole. Can you clear that up for us?

Governor Hochul: Absolutely. No, there are no tax increases that New Yorkers have to worry about at all in this Budget. And I stood up and said, "No, we're overtaxed enough." And I've enacted the largest middle-class tax rate cut in 70 years. So I'm more focused on cutting taxes. I removed a huge burden, the unemployment insurance burden, that was placed on all businesses in the state after the pandemic, and I took state dollars and paid that down so our small businesses wouldn't be suffering so much. So I'm more in a tax-cutting mode.

So what I did to help the city, a large part of that $4 billion would allow them to focus on - give approval for pension deferrals that would just move it out a few extra years in the future, and also some direct money, but also increasing education dollars like I've done on Long Island and across the state, and support for some projects related to the MTA that the state had covered before but had been removed.

So I would say this: People should be glad that the finances of New York City are going to be stable. We know thousands of Long Islanders work in New York City. They do not want the city to be on unsound fiscal footing. So my job was to make sure all of that was stabilized, not to allow them to spend more, but to just manage the crisis that unfolded over the last few months, and I did that responsibly without additional cost to New York taxpayers.

Plus, we're giving additional money to many localities around the state as well. So this was - we have many cities in trouble. I'm helping a number of them, many of them, and it's just what I have to do. I don't want any city to be in a fiscal crisis and then turn around and have to raise their taxes. We did all this in a fiscally responsible way.

Jay Oliver, LI News Radio: Well that's good news. So the Mayor will not raise taxes, the threat of a 9.5 percent hike, and nobody else will feel it as well in plugging that hole. So that is a good piece of news. Now, here's the thing I'm concerned about, Governor. You got a vote coming into play in six days as far as the schools. There's a lot on the line. We know a lot of it contained in the Budget is certainly emblematic of how schools can plan and go forward, in particular that of Foundation Aid. So how are they supposed to gauge if this Budget is not cemented in a way where they can kind of see where they're at here regarding programs and cuts, et cetera, et cetera? How do they go about that?

Governor Hochul: No, they know, they absolutely know that we are not cutting their funding. What they just don't know is how big the increase will be. So we tell them on the front end, "We're not reducing. You're fine to budget based on that." And I'll also say this, Jay, as I traveled and talked about this over the last couple of years, there are many school districts on Long Island that I would say are overtaxing because they already have reserves - they have reserves to cover for their expenses, and I think that money should be returned to local residents who're paying too much in property taxes. That's my view.

So I want our school districts to be healthy. We'll fund them at a proper level, but that does not mean you should be hoarding the money. I want to make sure that our taxpayers are getting what they need, the best education, and we do have phenomenal schools on Long Island. It's one of the great assets of living on Long Island for sure. But I also want to make sure that people do things - that people are responsible with other people's money, which is what I do in New York.

Jay Oliver, LI News Radio: Yeah. Do you feel the Foundation Aid formula will be tweaked?

Governor Hochul: No. No.

Jay Oliver, LI News Radio: It's kind of an antiquated number. How do you feel about that?

Governor Hochul: No, we're adjusting the numbers, basically upward so much to account for inflation. Let's look at the fact that inflation has gone up 3.8 percent, or is at 3.8 percent, and that takes a toll on every aspect of running a school or a business. So we're sensitive that they'll need additional money. We're increasing the funds this year - not an extreme amount, but the right amount - and they don't have to worry about whether or not that money's coming because it is. We are spending about $40 billion a year on education.

Jay Oliver, LI News Radio: All right. We're talking with the Governor, Kathy Hochul.

Governor, let's get to a possible strike. I hate to even talk about what could be. I remember the last one in 1994. But we're three days out of a potential strike and maybe a break yesterday regarding concessions, work rule concessions, not a major staple in this whole thing. Maybe. Here's what I see, though, as a problem - and let me know if you concur and what can we do about it here. Raises of 3 percent, the first two years, 3.5 percent the third. Here's the problem - fourth year. The MTA has offered 3 percent in the fourth year, could go as high as 4.5 percent. And the workers, if the workers fund the extra pay through, I guess, part of productivity increases, work rule concessions, that being not a staple anymore. I don't know. How is that possible in the fourth year? The MTA, we know, Governor Hochul, has no money. I mean, we know that. So how are they going to fund that fourth year? I don't see it with those numbers. What about you?

Governor Hochul: You know, Jay, you're absolutely right. Nobody wants a strike. Nobody wins in a strike, and we know the Long Island Rail Road is the lifeblood of the island. Nearly 300,000 people take it every day. This would be hard for them, but also the thousands of workers who would lose wages. And I told the team at the table to bargain, and that's what they're doing, but we have to be ready for any outcome. Two sides have to come to the table and be willing to move. And I said, "Hey, we'll be ready for a strike." No one wants it, but I have to prepare for it. We'll provide shuttle buses for essential workers. People should be planning on staying home. But here's - I've spent so much time and energy trying to stabilize the finances of the MTA.

Jay Oliver, LI News Radio: Yeah.

Governor Hochul: It's been hard, but I've done it, and I'm not going to risk unnecessary fare hikes or tax increases or scaling back in services to everyone else for unrealistic demands at the table. So we're at the table, but I need a partner to get this done.

Jay Oliver, LI News Radio: Yeah, no question, and you mentioned the rate hike, right? Four percent - another one planned next March. Governor Hochul, maybe as high as eight percent with all this going on right now. And I said it yesterday, it's not - when I hear about dignity and respect as far as the union, well, wait a minute. What about that of the commuter who's right in the middle of this, Governor?

Governor Hochul: That's right.

Jay Oliver, LI News Radio: They've been involved with these rate hikes left and right - not the greatest of situations riding the trains, we know, but that they should not be a bargaining chip. They seem to be held hostage by all this stuff all the time, and I think they are the ones who lose. The MTA's had problems, time clocks, and we could go overtime and really kind of talk it all over in that regard, but it's really the commuter itself. That's what we wanted to be taken care of, the commuter.

Governor Hochul: That's who I'm focused on, 100 percent, and I do not want to have instability in the finances of the MTA. It's critically important that the work that I started continues without blowing the Budget. But also, the commuters are the ones who say, "What about me? What about me? I'm the one out here. Why would I have to pay more? Everything I'm doing is going up. My auto insurance is up," and I am taking that on, Jay. We didn't talk about that yet, but that is a huge reason I did it because of how much Long Islanders are paying. "My utility bills are going up," and so I'm giving rebates out. But grocery prices are up 26 percent just in the last few years. People are getting clobbered, and they need a Governor who gets that.

First Mom Governor, I'm the one who goes to the grocery store and has been with coupons in my hand still to say, "I can't. These are expensive propositions here." Now, we're doing fine, but I know what it's like for young families because I was in their shoes at one time and every dollar mattered. And the cost of gasoline - I mean, my gosh. The moms filling up the tank to take the kids to soccer practice and to school, that was me. And what they're paying now is just obscene, and they don't deserve this. So I cannot raise the cost of their commute to work, and that's another reason why I'm focused on this. But also saying, "Listen, I don't want a strike, but if there's a strike, we'll deal with it." But I need both sides to be common sense, come to the table and work this out. And one side cannot be the only side that's talking about compromise here. I need more than that.

Jay Oliver, LI News Radio: Yep. Talking with Governor Hochul. Governor, money for the terminal. Last time we spoke, you were on the island at MacArthur, at the airport, generous as you are as far as $150 million. That hookup railroad terminal, very important. Is that still good?

Governor Hochul: Yes.

Jay Oliver, LI News Radio: And a lot of people have asked regarding that. Haven't heard a lot of conversation about it. Talk to me about that. Let's hear it.

Governor Hochul: Yeah, no, for sure. A lot of these projects, there's a lot of fanfare when it's first announced. And Angie Carpenter is a dear, dear friend. I think her leadership has been extraordinary. She pushed hard for this. The County Executive, this is an important priority for him as well. Ed Romaine, I've worked so closely with him. So I listen to locals. When they want something, I try my best to make it happen. So this is going to be transformational, making that connection.

So there's a lot of fanfare at the beginning, then all the hard work begins, right? Selecting vendors and the contractors and putting together the plans and everything.

But let me come on the show another time, and I'll give you a full update on what we're doing. And I can talk about all the other economic development projects on Long Island because there are so many. In fact, one of the reasons I'm coming out today is I'm announcing a $10 million award for a certain community. So I'm not going to tip off what it is right now, but in a couple of hours, it's part of our Downtown Revitalization Program, and I love what this does. I've announced so many across Long Island and elsewhere because it gives the community the power to define their own future with what plans they want to see implemented, their vision. And having spent 14 years in local government, I would've felt I died and went to heaven if the state government said, "Here's $10 million to implement the plans you want for your downtown." So I love coming out, and I'll be looking forward to seeing a lot of our friends on Long Island in the next couple of hours.

Jay Oliver, LI News Radio: I'm going to throw one more at you, and then I'm going to let you go. I know you got to get out. The Budget itself, we know about Medicaid, it's about $124 billion. We know there's a lot of green energy stuff with rebates and everything else. What about the relationship - I know Tom Homan has been at it a little bit, and as far as how to handle Immigration, Customs Enforcement within the confines of the state and everything else, Governor, how are we going to handle that? He's saying, "Listen, we're going to go in. Don't stop us. As far as federal policies and everything else, we're going to do our job." How are you going to handle that with Border Czar Tom Homan and everything else? Let's hear it.

Governor Hochul: I've sat down with Tom Homan and we've talked about this, that a surge in new agents coming is destabilizing. And it's bad for the reputation from Washington, D.C. because this does not always go well. In fact, it rarely goes well when you do that. We have always said we'll work with ICE and Border Patrol when it comes to dealing with dangerous criminals. I do not want them in our communities, nobody does. This has been our policy from day one. But when you have agreements with ICE, where basically local police officers paid for by the hardworking people of Long Island - they're using their tax dollars to pay for their police salaries, and we have incredible police departments on Long Island - they should not be trained, being used as ICE agents.

ICE is a well-funded agency, over $85 billion. They have a job they want to do, they can do it. I don't support how aggressive they've been, how abusive they've been, taking grandmas and high school kids out of schools on Long Island with the help of local police. I think that's wrong. I think most people think that's wrong. I want local cops focused on local crimes, and that is the name of the law I just - it will be enacted very shortly as part of my Budget to focus on reining in ICE where they go too far. But also say, "Listen, you can't be using our jails and our police officers to do your job." I want them dealing with auto accidents and crimes and retail theft and trafficking of drugs. They have enough work to do, Jay, and I don't think anyone should think that it's okay to use our local police as ICE agents.

Jay Oliver, LI News Radio: But Governor, wouldn't you agree if people could work together from an enforcement aspect things would be better off as far as criminal activity and everything else? If enforcement can kind of work together with Customs and Immigration Enforcement as well?

Governor Hochul: Criminal activity is totally different. I'm talking about non-criminal activity, which is where they're spending most of their time. The people they're picking up outside of schools and outside places of worship, and when they go in for their hearing because they're here legally applying for asylum, they're following the law, and then they go into a courthouse and they're taken away, separating - I was crying with the arms of a third grader whose father from Long Island was taken as he was trying to get a job outside a Home Depot. And this young man said - he was crying because, "I wanted to tell my dad that I made the honor roll because he's been encouraging me and working to work so hard for months, and now he's been gone. I don't know where he is."

I mean, Jay, these are not the "worst of the worst," the "baddest of the bad" that Donald Trump said he'd get rid of. I said I'll help. I said to the President, "I will help you get rid of the 'baddest of the bad,' but don't go after people that are here, already part of our community, many of them here legally when they came in the door. They were welcome to come in." I know the border is closed. I'm fine with that. I don't think we should have open borders. But for the people who are already here, and their kids are in our schools, and they're thriving and small business owners - some people have been here for 25 years and they're being picked up by ICE. Is that really making our community safer? Do I want local police officers focused on that?

If you have a warrant, a court order, you have evidence of a crime, of course, we're going to help you - of course, we are. But the vast, vast majority of people who've been picked up by local police are sitting in jails, waiting for deportation or removal, they have done nothing wrong other than come here. Now, I want a legal pathway. We have to follow the rules. But can't we focus on getting the bad guys out of here, Jay? Couldn't everyone agree on that? And that's not what's happening. That is not what's happening right now.

Jay Oliver, LI News Radio: I agree with you. I do think it's accentuated a little bit more as far as some of the incidents you have described. But it wouldn't be great if we could all get on the same page in some regard regarding this.

Always great having you. And I look forward to the next time.

Governor Hochul: Thanks, Jay.

Jay Oliver, LI News Radio: And we look forward to that Budget being in play and, of course, hopefully a settlement here with negotiations regarding the railroad.

Governor Hochul: Sounds great, Jay. Let's talk again soon. Appreciate you.

Jay Oliver, LI News Radio: You got it. Governor Kathy Hochul, ladies and gentlemen, at nineteen minutes past the hour of eight.