A sharp dispute broke out in Albany on Thursday after Kathy Hochul declared that an agreement had been reached on New York’s overdue state budget, only to be publicly contradicted by Carl Heastie, who insisted no such deal exists.

The clash followed Hochul’s early morning announcement, made around 9 a.m., in which she outlined what she described as the framework of a finalized spending plan.

Within roughly two hours, Heastie forcefully pushed back, dismissing the governor’s claim outright.

“There’s no budget deal. There’s no deal,” the Bronx Democrat said.

“I’m not conferencing anything else until I know what the financial picture is.”

Heastie added that he had exited a high-level meeting of legislative leaders the previous evening without any agreement being reached.

Hochul has been under growing pressure to finalize a budget as the state repeatedly missed its statutory deadlines, and had been eager to present a resolution.

She had initially planned to unveil the agreement a day earlier, even arranging for the Red Room at the state Capitol to host the announcement, but scrapped those plans at the last moment.

Her assertion that a deal had been secured — seen by some as an effort to pressure lawmakers — drew pushback from both sides of the aisle.

“I would actually thank the speaker for standing up for the legislature in this process,” Assembly Minority Leader Ed Ra told reporters.

“No you didn’t reach an agreement,” state Sen. Jabari Brisport posted to Hochul on X. “You do this every year. Please stop.”

The proposal Hochul presented lacked detailed specifics and comes as New York City’s newly elected mayor, Zohran Mamdani, has been urging Albany for additional funding to address what he says is a $5.4 billion budget gap.

State officials are expected to provide some form of assistance to the mayor, either through direct funding or by postponing requirements to reduce class sizes in city schools — a move insiders say could ease roughly $600 million in costs.

Legislators have also been considering changes to pension fund contributions, which could yield up to $1.5 billion in savings, though negotiations over those details were still ongoing late Wednesday.

A spokesperson for the governor indicated that the city’s financial figures are still being finalized, but confirmed that the state plan is expected to include additional support for New York City.

Hochul has maintained that Mamdani must identify cost-cutting measures within his expanding $127 billion municipal budget, which is approximately half the size of the state’s overall spending plan.

For his part, the first-term mayor has yet to put forward significant proposals to rein in spending and has delayed releasing his executive budget blueprint until next week.

The governor has also sought to hand Mamdani a policy victory by advancing a tax on high-value secondary residences in the city, allowing him to claim progress on his campaign promise to increase taxes on the wealthy.

However, that measure is expected to bring in only about $320 million and is likely to encounter substantial political and legislative challenges.

The state budget had originally been due on April 1, and remains unresolved weeks past the deadline.

{Matzav.com}