Video, Audio, Photos & Rush Transcript: Governor Hochul Participates in a Crain’s New York Business and Partnership for New York City Fireside Chat

Video, Audio, Photos & Rush Transcript: Governor Hochul Participates in a Crain's New York Business and Partnership for New York City Fireside Chat

Earlier today, Governor Kathy Hochul participated in a Crain's New York Business and Partnership for New York City fireside chat.

VIDEO of the event is available on YouTube here and available in TV quality (h.264. mp4) format here.

AUDIO of the Governor's remarks is available here.

PHOTOS of the event are available on the Governor's Flickr page.

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

Kathryn Wylde, Partnership for New York City: Delighted to be here. Thanks, everybody, for showing up. We're going to talk today about the City's economy, and hopefully deal with some of the positives as well as the challenges that we face. Governor Hochul has really put a focus on business and the economy. Actually, as Lieutenant Governor and in Congress before she became the Governor, she's always been very supportive of our economy, our economic growth and our business community, so thank you very much, Governor, and great to have you here.

Governor Hochul: Thank you, Kathy. And you have been an advisor of mine since I ran for Congress back in 2011 in the most Republican district in the State of New York. So, we go a long way back, and we also know the path to success in sort of the new environment that we find ourselves in. So, I appreciate your leadership

Kathryn Wylde, Partnership for New York City: Thank you. I want to start on, unfortunately, a negative note: The stabbing deaths of three New Yorkers in such a random fashion this week that I think has really thrown a chill through all of us. I mean, there's been, you know - this is not a matter of perception, this is a matter of reality hitting us hard. And Governor, you have worked hard on the seriousness of mental health issues. Can you talk a little bit about what you're doing and also what needs to happen? I know you've been back and forth with the Legislature over the last two years about what needs to happen to make sure we can stop this situation where somebody who - again and again and again has been through the system - is able to commit such a crime.

Governor Hochul: No, it's abhorrent. It's unacceptable, and I share every New Yorker's sense of anxiety that you feel like things are trending in the good direction, then all of a sudden there's the blaring headlines and the story unfolding that just shakes your sense of security to its core.

This is literally the neighborhood where I walk, where two of the murders were. My husband and I live in that neighborhood and we're constantly on the street. And, you know, it just makes you feel like, "What is going on here?" And I will tell you this: I'm going to continue in the next Budget doing even more. We announced $1 billion three years ago when I first became Governor to be the first governor who actually mentioned and talked about and was able to fund programs that are affecting mental health, because there is a connection between some people with mental health illnesses that are not being treated, who end up on the streets and harm people on the streets or in the subways.

I also worked with the Mayor a couple years ago to launch a program where we literally have teams down in the subways and developing relationships with people, showing them another path, and we have people who have been long-term homeless or mentally ill in the subways, over 700 of them, now in support of housing. And that's great progress. But, will we do more? Yes, we need to do more. No doubt about it. And so, I understand New Yorkers' feelings today. I have that feeling today too and we have to give people that sense of security that they deserve because that's the only issue that I think could be holding us back.

Kathryn Wylde, Partnership for New York City: So, hopefully this year, in terms of the Legislature, we'll get done what we need to do. I know you have tried in the last couple of years.

Governor Hochul: It's about money, but it's also changing the laws. You know, we've tackled some of the laws that make it very difficult to have people that have demonstrated that they cannot be functioning on their own. I had to do some executive orders to deal with this because the Legislature was not supportive of this, but I'll go back at it again. You've seen me, what I've had to do to change laws and go after the bail laws - bail is somewhat part of the story. Except I also want to point out the fact that it is not the state bail laws any longer, it is the application of those laws. Look at a judge who has the discretion to institute bail or have a high enough monetary bail that someone is not able to be out in the streets.

So, the system, I agree with the Mayor that the system here in the city failed. And I will be happy to bring my state resources to help analyze what actually failed at Rikers - someone who assaults a corrections officer gets out for good behavior? That's good behavior? How are we defining bad behavior? This is what you look at, like, "What the hell is going on here?" And I want people to know that I will go back to the Legislature, I'll go back with every tool in my kit to find ways to address this because this is not acceptable.

Kathryn Wylde, Partnership for New York City: Thank you. I think we all agree. The other big event last week which I was delighted over was the reinstatement of congestion pricing. You put your own spin on it and brought it in at a 40 percent lower rate, but I know this has not been easy. It's a challenge. Earlier, she called me the Queen of Congestion Pricing, but it's a really important thing for our city, and it's going to take us into the next generation of both broad-based support for the MTA, environmental improvements. And what people don't realize, it saves us $20 billion a year in the region in terms of lost productivity, time wasted, fuel wasted which is caused by excess traffic congestion. So, what do you see as the steps forward? Where are we going on congestion pricing? Is that going to be able to happen? I know you've said we're going to turn it on, hopefully, at the beginning of the new year.

Governor Hochul: I'll be happy to explain where we are, but also, this was enacted years ago by my predecessor and the Legislature, and it took this length of time to come to fruition. But, you mentioned it hasn't been easy. I think those who analyze my career as Governor, at least the last three years, I never gravitate toward easy. Easy says, "Somebody else is going to do that." I take on hard. And it was difficult to stand up and say that I'm actually listening to people and understand the stressors that everyday New Yorkers are under, and to have a $15 increase at that time, I said, was too much. 40 percent decrease, we can live with now. Because I also share the need and understanding to get our city back unclogged and functioning at a higher level than it is right now. And I have other congestion mitigation strategies that we announced that got a little overshadowed with our announcement.

But there are so many more things I can do working with the city. And what's maddening to me is that there's so many things that the city cannot do without authority from the State. I'd be happy to liberate the city, I shouldn't be the one who has to authorize -

Kathryn Wylde, Partnership for New York City: We're for that.

Governor Hochul: I mean, I'm from local government. The fact that I have to go to the State Legislature to ask permission to have a red light camera, or to stop the block to box congestion - but I'm going after that and I'll give the Mayor what he needs because this city needs safety but also needs to start moving again. And it is an economic barrier for us as you think about how much productivity is lost by this.

So, we have taken the steps necessary, it can go on January 5 and I'll be analyzing it. Now, we'll have real time data to see what is being affected here and I'll be analyzing this throughout the process. This is not a, "Turn it on and say goodbye." This is - my team will be looking at this, as well as the MTA, for more efficiencies, especially as we look into the capital program.

But, knowing that there's 6.5 million people coming to the Central Business District by public transit. I have to make those investments and make up for everybody else who kicked the can down the road, would not do what was hard and expensive, and now I have to clean up the mess. And I'm willing to do that. I do that every day of the week. And I'm supportive of this.

So, we'll be looking at the Capital Plan, efficiencies with the MTA, and I will do what I did last year, which was literally save it from going off the fiscal cliff, because I know how important this is. It is the lifeline for this city, and we cannot ignore the millions of people who rely on a reliable, safe and efficient system that I think could even be enhanced. I mean, let's not just go for basics. Let's make it an experience people are proud of.

Kathryn Wylde, Partnership for New York City: Well, I know you've recommended the BQX.

Governor Hochul: We have work to do there, the Interborough Express as well. I think this is going to be transformative for people who live in the outer boroughs - Queens and Brooklyn - that they have an opportunity to have high quality transportation out there, but also our continued investment.

Kathryn Wylde, Partnership for New York City: It starts in my neighborhood, Bay Ridge.

Governor Hochul: Well, whatever you like, Kathy.

Kathryn Wylde, Partnership for New York City: Gets me to those Chinese restaurants in Flushing.

Governor Hochul: And that's what it's all about, right? The ease of access, but also, you have to know it's going to be on time, you have to feel safe. So, these are all the metrics that I'm looking at, whether or not I'm satisfied with the subway system. We're not there yet, and that's why I'm willing to make these investments over the next five-year Capital Plan with the Legislature. But Metro-North needs to function at a high level, I need to make sure that the Long Island Railroad is functioning at a high level. And, we're making great strides, but we still have enormous amount of repairs and replacing of the rolling stock that has to happen, and, fortunately, a lot of that is manufactured in Upstate New York, so that's good for our economy. But, the time of saying we can't do it is over - let's just get it done.

Kathryn Wylde, Partnership for New York City: Right, and I think everybody appreciates that. Thank you.

So, speaking of the economy, the New York City economy and the State economy have grown tremendously under your leadership, which we really appreciate. We're now over a trillion dollar economy. We're the second largest city economy in the world, in New York City, and I want to just hear a little bit more about your plans in terms of your policies, what you're thinking about in terms of your State of the State budget message, that's going to continue to push economic growth in New York.

Governor Hochul: And, I appreciate the question because since I arrived three years ago, I've realized that far too many successful individuals and businesses have not felt welcome in this city. And I had to change people's attitudes about what their leadership was willing to do for them. I rely on a strong economy to create the jobs, and literally to fund our budget, and to be able to provide services here in the city and across the State. So, I understand that connection innately.

And having policies that are hostile to business, where successful people feel they should be ashamed of their wealth and they feel like "I can do better off in another state." I'm trying to say forget that strategy. That does not work for us. I embrace the entrepreneurial spirit that has defined this city and this state since the beginning of time, and that sets us apart. So, I'm really proud of the fact that we've become a real magnet for tech jobs. We're one of the top places in the country for technology jobs.

And, I've seen this revolution where, if we are intentional about our approach to businesses, we can be wildly successful. Let me give you the Micron example. After the CHIPS and Science Act was passed by President Biden and supported by Major Leader Schumer, I saw an opportunity. I've been on the job just a few months, but I knew that this was going to create a competition between all states for the opportunity to have a robust semiconductor manufacturing industry and bring the jobs back home from China.

I had to be competitive, I had to go to the State Legislature and get them to support a comparable program - very expensive, not exactly in their usual way of operating to support a $10 billion plan to entice these businesses, but I knew that we could lose them to Texas.

Kathryn Wylde, Partnership for New York City: With a "B."

Governor Hochul: $10 billion, $10 billion from the State Legislature to support this. It was a heavy lift. Micron decided they were going to Texas at one point, and I had to work with them to find out what the barriers were to them coming to New York. And, I was so aggressive about this. And, when they told me that there were some issues related to local labor contracts and the cost of building, I put the head of the union in the room with the head of Micron and said, "We can solve this."

As a result of us working intensely on this - and I love making deals, I really do, this is a huge point of pride - 50,000 new jobs are coming to New York State. $100 billion of private sector investment, the largest private sector investment in American history, is going on in our state.

And, the ripple effect - not just along the traditional Erie Canal, the Thruway Corridor, which we now call the Innovation Corridor - it's also the spinoff effect is having an impact here as we're attracting more talent to the State of New York. Those who want to be the researchers, those who want to be part of this whole story.

And, that's not even to mention our artificial intelligence efforts. So, you have to be creative. We have our legacy - we have Wall Street, we have Broadway, we have marketing, we have fashion, we have all this.

Kathryn Wylde, Partnership for New York City: Don't forget finance.

Governor Hochul: I said Wall Street, but okay. Finance. But I always want to do better, like we know those are here, I'll support them, I'll make them be successful. But what do we do next? What are other states looking at next? How do we beat out our competitors, and I view 49 other states as my competitors. And we're doing really well in that space.

So right now, you can brag about this: We not only have the largest public sector investment going on in America today, the Gateway Tunnel, which - if you followed the history of this, it was locked up; I think it was five governors, four presidents, or vice versa - nobody could figure out how to get something that complicated done, except I did. I worked it out with Phil Murphy, got Amtrak, got the federal government, and pulled it all together and said, "We need to do this." That is the largest public sector project, and has the largest private sector investment going on.

Those are two - just two - examples of some pretty significant wins and investments that are going on to continue what you're talking about - which is elevating our economy, making it a more desirable place to be, and a destination for those who are looking for that American dream that we've always been known for. So, I'm really excited about where we've come, but never going to rest on our laurels because there's always another deal to be made.

Kathryn Wylde, Partnership for New York City: The art of the deal. Speaking of which, you had a call with the President-Elect. Do you want to tell us a little bit about what your reactions are? What do you feel is going to happen there? How did that go?

Governor Hochul: Well, I reached out and offered my con - I was going to say condolences - my congratulations.

Kathryn Wylde, Partnership for New York City: That was for the country.

Governor Hochul: My congratulations. It's the right thing to do. I am an elected official. I have worked with people across the aisle. My congressional district, as I said, was all Republicans, basically, and I would go to Washington and go to the other side of the aisle, and you'd think there was like a moat with alligators in it, because Democrats and Republicans never went to the other side of the aisle, except I did. I sat with people. I talked to them. I found some shared interests we could work on with labor shortages in the Upstate for farms. So I know how to work with everybody. It's one of my strengths.

And I called up and I said, "I think we can work together on some significant projects," and he immediately started listening to my priorities, which was - I need the subway system to be world class. This defines us. This could be a legacy project for all of us, as well as Penn Station. People think we're doing nothing on Penn Station, except you're wrong. We are continuing to move ahead on Penn Station. Because that to me is an eyesore, it's a blight, it's a mark on our identity. And why don't we have something as magnificent as Moynihan Station greeting visitors from all over. So, he understands how important the New York economy is to the nation. He understands that these infrastructure projects cannot be ignored any longer. So I was just putting it out there.

And also I did mention the Micron Project because there had been some negativity said about the Chips and Science Act. And I said, "Well you know that's creating 50,000 jobs in Upstate New York and that's an area that's been hard hit. It's hard to get those jobs, and we can work together. So, I just wanted to put that out there that I will work with you. But I also had to raise, but you go after some of my hardcore values, like reproductive freedom-we're going to be in a different place. You know, where I can walk and chew gum, I can hit you on that, but I'm going to also want to work on this.

So, right now I want to be the leader people expect me to be right now, at this moment, I can't change the past. I'm not going to try to even analyze it. This is where we are. You work with what you have, make the best of it, and my job is to bring resources back to New York to support what I think is critically important for our citizens, and that's infrastructure, economic development, funding for, you know, the HEAP programs for child care, you would not believe the number of programs that we get federal dollars for that we supplement, but we really need them. So it's about having a relationship that's going to work.

Kathryn Wylde, Partnership for New York City: And you feel, after the conversation, that that's going to happen?

Governor Hochul: Why not? You know, you have to put it out there.

Kathryn Wylde, Partnership for New York City: We have to make it happen.

Governor Hochul: I can do that. And I will do that, it's important.

Kathryn Wylde, Partnership for New York City: Did the issue of state and local tax deductibility come up? Because I know one of the first things is going to be the tax bill. And New York was the number one state we sent last year. I think it's $19 billion of discretionary income to Washington, because of the state and local tax deductibility cap at $10,000.

Governor Hochul: Not in that conversation, but I am just beginning. And I'm also calling out our Republican members of Congress, who I say, "Where have you been for the last couple years? Why didn't you repeal this during this time?" Even if it was going to be not passed in the Senate, for example - your job is to pass bills. And not to be as dysfunctional as they've been already.

They've proven that they're not capable of governing. All they do is say no. And so, pick up the pieces. You still have time before the end of the session. Impress me and pass all tomorrow. I mean, that's what you're supposed to do. And if you're not going to do it because it was put in place by all of you in 2017, and you wanted to do this to New York State and other states like Connecticut, and New Jersey and California, okay. Now you've seen the fact that those of you who complain about the cost of congestion pricing, well, you don't have a lot of credibility with me - because you just instituted an $11,000 on average increase for New Yorkers, what they have to pay by not being able to deduct it.

So, let's talk about scale here. That's $11,000. Talk about affordability? I have a way to put more money back in New Yorkers pockets. Let them continue deducting the state and local taxes, which has been part of our tax code since Abraham Lincoln was president.

Republicans changed that in 2017. Hopefully there's buyer's remorse. People see that they did this, and now it's up to them to fix it. Hurry up and fix it.

Kathryn Wylde, Partnership for New York City: Well, part of the rhetoric of this election also was "let the State control things." So if you push that, it's an opportunity hopefully.

Governor Hochul: That's how it's going to be. Whether it's on reproductive rights, which I talked about, and some people think it's better to be back in the States - they're wrong on that.

I will also say this. Then give me the power to allow my residents to deduct state and local taxes. We'll be a lot happier.

Kathryn Wylde, Partnership for New York City: Absolutely. So, I have a selfish question to ask. Because at this point in life, I was part of the first generation of women's lib back in the 60s. And I feel still that in this country, in our city and state, it's still very difficult for women in power. And I just wanted to sort of pass that by you, get your reaction.

I didn't pre-rehearse this one. Just a question about, do you feel that you're getting the support you need as a woman to be able to exercise power in a way that you're comfortable with.? You're not a bully, that's for sure.

Governor Hochul: You haven't seen me behind closed doors.

Kathryn Wylde, Partnership for New York City: I know you're tough.

Governor Hochul: I think they said this once about Margaret Thatcher, "an iron fist and a velvet glove." And I had a conservative talk show host who said, "That's true, you do not want Hochul to pull off that glove."

And so, I don't mind that reputation, because I have what it takes to be as tough as you need to be to govern this state. But I have set forth a different way to govern, which does not require me to be known as a bully and leaving blood on the battlefield.

I've worked closer to consensus, and if you look at our extraordinary record of accomplishments over the last three years - and it is lengthy - you'll realize that that was a lot of it where I work with people, I don't have to be - whether it's a deal with New Jersey where I come out on the better end, you don't - I don't have to attack New Jersey. I don't have to attack the legislature when I win on something. I have a lot of wins.

Kathryn Wylde, Partnership for New York City: You've gotten along with the Mayor.

Governor Hochul: Get along with him. I mean, how about that newsflash when we first started out? Like, when have you ever seen a mayor and a governor get along in your lifetime? But again, I also represent the people of the city.

We have a shared interest in being successful for the city. Why would I not work with the Mayor? And they need me for a lot. I mean, this whole "City of Yes," it's maddening to me that there's still obstacles to building more housing. If we want to talk about what I'm hearing from business leaders and just citizens, the cost of housing is so prohibitive.

That is the number one reason we're losing people to other states. It is not lower taxes in Connecticut or New Jersey. It is not that they have better weather than we have here in New York. Maybe people like their governors better, I don't really know, they're both nice guys. But that being said, it is basically that they can find cheaper housing because guess what?

They had the ambition to build more, whereas we were putting up roadblocks. And there are so many ways to get through this. We made great progress. You'll see office conversions being undertaken here in Manhattan. That's important. That was jammed up as well. We're building more - they stopped 421-A. Which, guess what, I told you it was going to stop the building of affordable housing, and it did, it went down 85 percent in two years. Got that going again.

I extended the length so that people could use it some more. We'll have tens of thousands more units built because I stood up and said, "The status quo is not working. And if you talk about the highest expenses for any of your employees, your coworkers, your families, it is your housing."

The rent's too damn high, and you can't - this generation has no shot. No shot of ever owning a home. And I think that's just pathetic and sad. I want to change that. And so I'm still back at it, building more housing. And other challenges, I don't think I'm answering your question about women, I'm just all, I'm on my housing issue.

I think the point is, I'm not afraid of a fight, and people will say, "Well there, she's in a battle." You know why? Because sometimes, you have to identify what's worth fighting for, stick your chin out, and not retreat. And that's been my way of operating. And I think it's because I grew up in a tough neighborhood.

You know, I've come from the streets of Buffalo and Lackawanna Steel Plant, and Dad worked in a steel plant. My parents lived in a trailer park. So, I've seen how tough it is out there. I know what people are going through, because the people that my parents lived next door to still live in that same type of trailer park years later, the families. People have not escaped, and my job is to help them by creating more jobs with all of you.

We've created 732,000 jobs since I've been governor. I have 500,000 job openings. I need to connect people to jobs. So, you give people the dignity of a good job, it solves the crime problem. It solves society's money problem.

It's all about the basics, bread and butter, and getting people a good job. And so, I don't ever think about the fact that I'm a woman in this role. Maybe others do. I've always been the only woman in the room. My whole career, so it's just the way it's been.

Kathryn Wylde, Partnership for New York City: Me too. No, congratulations though on all you've accomplished. Thank you for your leadership and thank you for your empathy, which I think is distinguished - distinguishes you that people understand that many of your decisions reflect real empathy with the people of New York. So we appreciate that.

Governor Hochul: Thanks for all you do, Kathy. I know you've got a tough job as well. Alright, thank you, everybody.