Wednesday, April 7, 2021

POLITICO New York Playbook: Budget deal raises taxes, funds excluded workers, boosts school aid — Cuomo’s Penn plan reined in — Mobile sports betting to be legalized

Presented by Uber Driver Stories: Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
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By Erin Durkin and Anna Gronewold with Jonathan Custodio

Presented by Uber Driver Stories

Nearly a week after the March 31 due date, the state Senate had enough of the budget slog. The chamber powered through an all-night session Tuesday and headed out with a passed budget in today's early morning hours. The Assembly, on the other hand, announced last night they'd finish at their own pace. Leadership said the chamber will resume the budget vote business today.

The most urgent matter has somewhat abated. Lawmakers passed a 2-day extender on Tuesday to make sure tens of thousands of state workers will receive their paychecks this week as the Legislature finishes up.

It's no simple task as there's quite a bit of new spending for them to go through.

The budget this year is a massive $212 billion. That's only $10 billion shy of California's, "a state which might be only half as good as New York, but has twice the population," our colleague Bill Mahoney likes to say. A combination of federal stimulus, better-than-expected revenues, and raising taxes on the rich means the state is funneling billions of dollars into roads, bridges, schools, child care, environmental projects, housing, and unemployment benefits for undocumented workers.

"This is a bold budget that takes historic action during unprecedented times — and for that I am proud — and ready to continue this momentum in the coming months of the legislative session," Senate Majority Leader Andrea Stewart-Cousins said after her chamber's passage around the 3 a.m. hour today.

One part of the spending plan, however, left more than a few Democrats with some combination of concern, confusion and amusement on Tuesday: language to let 12-year-olds hunt deer with crossbows. It's scaled back from Cuomo's proposal to allow preteens to shoot arrows at other large mammals as well.

"I sincerely know nothing about people's attraction to hunting," Manhattan Democratic Sen. Liz Krueger said, but later explained why just deer hunting was included. "12-year-olds are smaller than bears. They may be able to pull that bow back, I'm not sure. But they aren't going to be able to hit that bear and kill it. And then you have one pissed bear."

IT'S WEDNESDAY. Got tips, suggestions or thoughts? Let us know ... By email: EDurkin@politico.com and agronewold@politico.com, or on Twitter: @erinmdurkin and @annagronewold

WHERE'S ANDREW? No public schedule available by press time.

WHERE'S BILL? Holding a media availability.

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WHAT ALBANY'S READING

DEMOCRATS IN BOTH HOUSES were united in an unfamiliar feeling at this time of year — a sense that the budget wasn't a major capitulation to Gov. Andrew Cuomo, but a document that contains many of the high-priced progressive priorities they sought "I never worry about that [too] much," Senate Finance Chair Liz Krueger (D-Manhattan) said when asked about the record-smashing $212 billion price tag, a nearly 10 percent increase over last year's record-high budget "My question is, What do the people of the state of New York need, and are we going to have the funding to be able to get them what they need?" Krueger said. "So I'm quite comfortable with this budget — we're not significantly increasing borrowing. We are asking people who have been doing the absolute best in our economy to give us slightly more in tax revenue. It won't hurt them; they've already seen a significant cut in their taxes during the Trump administration."

Most Democrats seemed to agree with that take . While the most contentious bills had yet to be taken up, the first nine hours of debate didn't feature much of the traditional gnashing of teeth by progressives upset about some of the measures lumped into omnibus bills. "This is the first budget where I can say ... we are not really doing anything bad" on the subject of health care, said Assemblymember Richard Gottfried (D-Manhattan), contrasting it with the other 33 budgets that have passed during his tenure as Health Committee chair. POLITICO's Bill Mahoney, Anna Gronewold and Marie J. French

— EXCLUDED WORKERS: "Gov. Andrew Cuomo and New York lawmakers struck a deal Tuesday on a $2.1 billion fund that will provide assistance to jobless workers who were excluded from unemployment benefits during the pandemic, including undocumented immigrants. The fund was announced as part of a broader $212 billion state budget agreement, though details about how it will be administered and who exactly it will include remained scarce Tuesday afternoon. The agreement comes after activists held hunger strikes and march for the excluded workers fund. Several suburban lawmakers previously expressed concern that the effort may go too far." USA Today Network's Tiffany Cusaac-Smith and David McKay Wilson

— SPORTS BETTING: "Internet betting on any range of sports contests — allowing people to bet on their laptops from home or the office or on their phones while in the stadium watching a Buffalo Bills game — should be operating by year's end. 'Now, we're in the arena of mobile sports betting,' Sen. Joseph Addabbo, a Queens Democrat, said of the deal he said will be in the final budget." Buffalo News' Tom Precious

— $2B IN FEDERAL RENT RELIEF: "Certain qualifications for the program were determined at the federal level, prior to New York's negotiations during budget season. Tenants must make no more than 80% of the area median income to qualify and must also demonstrate pandemic-related financial hardship and housing instability. As anticipated, state guidance revealed Tuesday includes clear language that New York households will be eligible "regardless of immigration status." The bill also states that people will be able to attest to their own financial hardship "to the extent permissible by federal law and relevant guidance.'" Law30's Emma Whitford

— PENN 15: "They just can't get it up. Gov. Andrew Cuomo's bid to erect 10 new skyscrapers around Penn Station — including one with the eyebrow-raising name of 'PENN 15' — may have shriveled under the state budget deal reached by the governor and legislative leaders on Tuesday. Language in the budget bill set for approval Tuesday authorizes a $1.3 billion loan to fund Cuomo's 'Empire State Complex' revamp of the railway hub — but explicitly restricts use of the money to transportation. Instead of being spent on land for new office towers, the money 'shall only be used in furtherance of [expanding Penn Station] or other transportation improvement projects and not for above-grade development,' according to the bill. Cuomo's years-old vision would demolish much of the neighborhood surrounding Penn Station and Madison Square Garden to make way for supertall skyscrapers — in part by classifying the area as a 'blighted slum.'" New York Post's Bernadette Hogan and David Meyer

— SCHOOLS: "Three years ago, Cynthia Nixon launched an unlikely bid for the Democratic gubernatorial nomination in part over a push to boost direct aid for schools in New York's budget. Nixon did not win. But the idea ultimately did. State lawmakers are on the verge of approving a budget that increases direct aid to schools by $1.4 billion over the next several years to more than $4 billion once fully phased in. The move will be funded in large part with tax increases on upper income earners and businesses, and expanding the size of the state budget in the process when taking federal aid into consideration, expected to clock in around $200 billion." Spectrum's Nick Reisman

#UpstateAmerica: "You do whatever you do, but you don't mess around at Newest Lunch": A 100-year-old Schenectady restaurant has survived with a sense of family, good sauce and consistency.

 

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WHAT CITY HALL'S READING

"MAYOR BILL DE BLASIO seemingly cracked the door opento a possible casino in the Big Apple on Tuesday, just hours after it emerged that Gov. Andrew Cuomo was floating the proposal as a way to patch the state's budget. Hizzoner's remarks came amid fierce private pushback to Cuomo's proposal from top Manhattan state lawmakers, who have fiercely opposed the gaming industry's bid to bring full-fledged gambling to normally bustling Midtown. 'I think the Legislature is being very smart about this,' de Blasio said during his daily press conference at City Hall. 'They clearly value local land use decision-making and the rights of localities to have a say.'" New York Post's Nolan Hicks

"GET YER COVID vaccines here! New Yorkers age 75 and older will be able to get shots on a walk-in basis at 25 city-run sites, Mayor de Blasio said Tuesday. That's up from three sites that had been offering the service. The move comes after New Yorkers from all kinds of backgrounds complained of difficulty using the city's websites to schedule appointments. 'It's really encouraging seniors to come out who didn't come out,' Hizzoner said of a pilot walk-in program. 'This is the group we need to reach the most. This is a tactic we know is working.'" New York Daily News' Shant Shahrigian

— "The man who helped thousands of New Yorkers line up vaccination appointments through his TurboVax website has one more honor he can now aspire to — getting the key to the city. Huge Ma, who became a Big Apple sensation for creating TurboVax, beamed over the praise Tuesday from Andrew Yang, the leading contender in this year's mayoral race. If elected, Yang promised he'd not only bestow the key-to-the-city honor on Ma — he'll offer him a job too." New York Daily News' Michael Gartland

"BROOKLYN BOROUGH President Eric Adams accused opponents in the New York City mayoral race of keeping quiet on rising gun violence, as he rolled out a buffet of proposals on Tuesday to stop the barrage of bullets. 'Why is there silence among the other individuals who want to be leaders of the city?' asked Adams, flanked by anti-violence activists outside the Bronx Supreme Court. 'The prerequisite to prosperity is public safety.'...He suggested turning the Police Department's recently disbanded anti-crime units into a narrowly focused "anti-gun unit." He urged spot checks for guns at the Port Authority and city entrance points...And he claimed his competitors are attempting to whistle past the violence menacing some areas of the city. 'I am alarmed at the deafening silence,' Adams said." New York Daily News' Tim Balk

— Adams accepted $4,000 in campaign money from a man flagged by a city watchdog several years ago for being "convicted of a racketeering activity."

"AMID THE CONTROVERSY over whether students should take state tests this year, New York City's education department is taking a bold step: Families must sign up to take grades 3-8 exams , officials said Tuesday. For the English exams, families have until April 15 to let their schools know they would like to take the test. The deadline is April 29 for math exams and is May 28 for grades 4 and 8 science tests. New York City children whose families don't opt in to take the exams won't be signed up. Neither the students nor their schools will be penalized for not participating, officials said...The change is a major break from the past, and is an acknowledgment of the struggles during this year of disrupted learning, where the majority of students in the nation's largest district are learning exclusively from home. The state tests, which are federally required, are typically offered to all students by default — unless their parents opt them out." Chalkbeat's Reema Amin

FIRST IN PLAYBOOK — The United Auto Workers union is endorsing public defender Eliza Orlins for Manhattan district attorney. Orlins is a member of UAW Local 2325, which represents Legal Aid attorneys. "It's always great to endorse one of our own members who shares our values," said Beverley Brakeman, regional director of the United Auto Workers Region 9A. "Manhattan needs a DA who will fight systemic racism, end money bail, treat mental health and substance abuse as issues that require treatment and not prosecution, and fight for workers and tenants from corporate and landlord abuse."

ON THE TRAIL — City Comptroller candidate Michelle Caruso-Cabrera is planning to hopscotch the five boroughs on a 24-hour campaign spree today, hitting about 11 destinations that include the Brooklyn Navy Yard, NYCHA's Jackson Houses in the Bronx and overnight stops at the Hunts Point Produce Market and a donut shop. "New York City is a 24-hour city. It's always been known as a city that never sleeps," said the former longtime CNBC anchor and contributor, who will fall back on her experience with time-zone shifts from reporting internationally and regular overnight sessions as Editor-in-Chief of her college newspaper. "We're going to show people that we are on the comeback trail." Nevertheless, she planned to go to bed early Tuesday night. — Jonathan Custodio

 

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TRUMP'S NEW YORK

A FEDERAL WATCHDOG on Tuesday said it fined former Trump housing official Lynne Patton $1,000 and barred her from federal employment for four years after she violated a law prohibiting executive branch employees from engaging in political activities while on duty. The U.S. Office of Special Counsel penalized Patton, who served as Housing and Urban Development regional administrator for New York and New Jersey, over a video she produced with New York City Housing Authority residents to air at the 2020 Republican National Convention. The office investigated whether the political project violated the Hatch Act following a complaint filed by the group Citizens for Responsibility and Ethics in Washington. POLITICO's Katy O'Donnell

FROM THE DELEGATION

CHUCK SCHUMER vowed in November that when his Democrats "take Georgia, then we change the world." He wasn't far off . The New Yorker's ascension to Senate majority leader gave President Joe Biden the power to spend trillions of dollars that would not have materialized had now-Senate Minority Leader Mitch McConnell held onto one of Georgia's two Senate seats. Schumer's party now holds complete control of Washington, its members eager for success after a decade of setbacks. It's an opportunity, Schumer said in an interview this week, that comes around "maybe twice a century." And he's not wasting his hot hand, ensuring that the White House infrastructure plan includes two of his long-sought personal goals to reshape the economy: a clean-cars plan with more than $100 billion for electric vehicles and a sweeping measure designed to crack down on China's influence. That's not to mention his continued pressure on the White House, alongside Sen. Elizabeth Warren (D-Mass.), to enact major student loan forgiveness. POLITICO's Burgess Everett

 

Did you know that POLITICO Pro has coverage and tools at the state level? All the state legislative and regulatory tracking, budget documents, state agency contact information, and everything else you need to stay ahead of state policy movement integrate into our smart and customizable platform. Learn more and become a Pro today.

 
 


AROUND NEW YORK

— Two doormen at a Manhattan building were fired for not intervening in an attack on an Asian woman last week.

— Lawyers said they have reached a settlement requiring New York City to finish installing Wi-Fi in family homeless shelters by the end of August.

— There's a new Gotham Book Prize honoring outstanding writing about New York City, and the first award went to James McBride's "Deacon King Kong."

— Wegman's is opening vaccine slots for those 18 and older.

— 21 people, including 16 firefighters, were injured in a massive fire in Jackson Heights.

— A state Supreme Court justice wants answers from New York State on whether there should be 6 feet or 3 feet of social distancing in schools.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: CNN's Kaitlan Collins, Noah Gray, Evan Simko-Bednarski and Brad Parks … POLITICO's Daniel Lippman, Maggie Severns and Fernando Rodas … Insider's Darren Samuelsohn is 46 … HuffPost's Paige Lavender … Mother Jones' Jeremy Schulman Bill McQuillen of BCW

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REAL ESTATE

"PEOPLE WILL ALWAYS want to live and work in New York … until they don't. And some real estate professionals and economists fear that $4.3 billion in tax increases , on top of the shift to remote work, might just push some over the edge. The state budget, now in the final stages of negotiations, is expected to include tax increases through 2027 on the personal income of New York's highest earners and on corporate income. The real estate industry has consistently opposed such measures, fearing they will drive away high-net worth individuals and businesses. 'My initial reaction was 'ouch,'' said Brian Lewis, a broker at Compass. 'There's a fine line between creating a pay-your-fair-share environment and a get-out-of-here, kick-them-out [environment].'" Real Deal's Kathryn Brenzel, Akiko Matsuda and Erin Hudson

"WHEN CONEY Island's world-famous amusement rides reopen Friday, crowds of tourists and New Yorkers are expected to hop on for the first time since the pandemic shuttered businesses along Brooklyn's historic boardwalk last spring. But notably missing from the beachfront People's Playground are several attractions originally scheduled for completion up to two years ago — including a new log flume water ride, an arcade, a public plaza with a food court and an 'adventure park' with a rope course. And they're all still at least a year away . The city's Economic Development Corporation announced in 2018 the selection of Central Amusement International, the owner of Coney Island's Luna Park, to expand the amusement district by 150,000 square feet on city-owned property. That would increase the district by 50%, to 450,000 square feet. The adventure park was supposed to open in 2019, with the water ride expected a year later. But pandemic shutdowns nixed any hope of the expansion materializing during the 2020 season." The City's Gabriel Sandoval and Clifford Michel

FOR YOUR RADAR — The Supportive Housing Network of New York is holding a mayoral town hall on Thursday with a focus on homelessness. POLITICO's Janaki Chadha and Network senior policy analyst Tierra Labrada will moderate. Brooklyn Borough President Eric Adams, Shaun Donovan, Kathryn Garcia, New York City Comptroller Scott Stringer, Joycelyn Taylor, and Andrew Yang are confirmed to attend.

 

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