Tax hike talk 'premature' ahead of state budget negotiations, Hochul says

And another CDPAP update.

Good afternoon — it’s Friday and Houseplant Appreciation Day.

In today’s CapCon:

• Hochul was asked Friday what’s on the table to raise $2 billion in funding for public transit downstate.

• Universal (free) school meals got Hochul’s endorsement Friday.

• The company chosen to take over CDPAP, a $9 billion Medicaid program, is now being accused of having a major conflict of interest.

• Eyes & Ears: here’s a bunch of stuff you might have missed this week.

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(Michael M. Santiago/Getty Images)

💰 Will N.Y. raise taxes to fund mass transit downstate? That’s ‘premature,’ Hochul says

Gov. Kathy Hochul and the Legislature have to find a way to raise an additional $2 billion in revenue in this year’s state budget to finance the MTA’s capital plan.

The capital plan, if you’re not familiar, is a $65 billion five-year strategy for repairing, maintaining and upgrading public transit in and around New York City. That’s very important.

We already knew there was a funding gap. What we don’t know is what’s on the table to generate that $2 billion.

There are really only two options: either find that money somewhere else or make cuts to afford it. Democrats in the Legislature don’t often support cuts so a revenue-raiser could be the more likely option.

Hochul was asked on Long Island Friday if she’s considering new taxes to fund the capital plan. She didn’t say no.

“I need to have the resources to keep making the investments so Long Island doesn’t suffer,” Hochul said. “It will have to be funded.”

But she also didn’t say yes. Hochul was asked about how new taxes would look after the implementation of congestion pricing this month. That’s a new $9 toll in the busiest parts of Manhattan.

“There’s been no decision made on how this is to be funded going forward,” Hochul said. “So I think it’s premature for you to draw a conclusion about how that’s going to work. All will be known when the budget process is done in a few months.”

Until then, we’ll all have to keep guessing.

(New York Governor’s Office)

🍎 Hochul signs on to free school meals for all in state budget

The majorities in both the state Senate and Assembly endorsed free lunch and breakfast in New York’s schools last year but that didn’t make it into the state budget.

Universal free school meals were expanded but not, well, universal. Hochul wants that to change this year, she announced Friday on Long Island.

“When a child grows up hungry, that carries with them the rest of their life,” Hochul said. “In the wealthiest country in the world, this can no longer be tolerated.”

Most students already have access to free school meals but this would carve in the remaining 300,000 who do not, Hochul’s office said.

We don’t know the price tag of that but there’s been no opposition that I’ve heard. The Senate pitched $135 million last year for universal school meals. The Assembly proposed $120 million.

Two state lawmakers overjoyed by the announcement: Assemblywoman Jessica Gonzalez-Rojas and Sen. Michelle Hinchey.

They’ve both really led the charge over the last two years or so to enact universal free school meals — so much so that Assembly Speaker Carl E. Heastie gave Gonzalez-Rojas a shoutout in his opening remarks Wednesday while saying his conference would maintain support.

(Lori Van Buren/Times Union)

🧑‍🦼 CDPAP contract winner accused of hiding conflict while DOH starts hitting back

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