The deadlock over a new state budget continues with debates over bail reform and housing.

During Gov. Kathy Hochul's State of the State address, she said, "The bail reform as written leaves room for improvement and as leaders, we cannot ignore that."

Her proposal to change New York's bail reform laws is one of the major sticking points as to why the budget is late.

Democrats control both state Houses, and the progressive wing of the party wants bail law to remain the same.

Republican State Sen. Dean Murray, of Patchogue, credits Hochul for wanting to change bail laws.

"I think she's sending the sign that I'm not going anywhere on this issue - I'm sticking to it," Murray says. "So, I do think that the leadership now will have to take a second look and say, 'Look, if we're going to move forward, we'll probably have to give in to her.'"

The governor also wants to mandate that localities increasing housing stock by, among other things, rezoning areas with a half-mile of trains stations to allow for new afford housing.

The proposal has been criticized on Long Island and other suburban areas in the state.

State Assemblyman Fred Thiele, of Sag Harbor, says legislators are offering a compromise that would have the state give localities financial incentives to build more affordable housing as opposed to making them do it.

"The governor's plan has really been more sticks than carrots," Thiele says. "It's been mandates and threatened state overrides of local governments, which is just unacceptable, particularly here on Long Island."

One state lawmaker told News 12 there is optimism that a deal could be reached this week with a vote on the budget next week. However, that legislator says the likelihood of that is waning.