| | | | |  | | By Erin Durkin, Anna Gronewold and Julian Shen-Berro | Ahead of the first day of school on Thursday, the City Council passed a formal resolution urging Mayor Eric Adams to restore hundreds of millions of dollars cut from school budgets. It's nonbinding, though, and won't force the administration's hand to increase school funding. Wait, isn't this the same City Council that has the statutory power to control the city budget? It is, and they approved the very budget that contains the cuts back in June, well ahead of deadline, despite public controversy over the mayor's move to reduce individual schools' funding in response to drops in student enrollment. Nonetheless, a monthslong fight has followed, and will continue as kids head back to class this week. The Council called a special meeting Tuesday and unanimously approved the resolution pressuring the administration to restore $469 million. Though Council members objected to the cuts at the time they passed the budget, they say they weren't aware of the true scope of the funding being slashed. Some have apologized for their votes to approve it. "We are going to see larger class sizes on Thursday … essential cuts to our schools that we simply cannot afford," City Council Member Lincoln Restler said. "And they make no sense because the mayor has the resources at his disposal. He can fix this today." If the mayor doesn't cave — there have been negotiations with the Council, but they have not resulted in any deal — the matter is likely to be settled in court, though not before shaping students' experiences in their first weeks back in school. A court ruled in favor of parents and teachers who sued to stop the cuts and declared the schools budget invalid, but an appeals court allowed the mayor's preferred spending plan to proceed while the case plays out. Arguments are set for the end of September. 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 KATHY? Giving a Covid-19 update and getting a booster shot. WHERE'S ERIC? Delivering remarks at an affordable housing rally, meeting with members of the African American Day Parade Organization and holding a community conversation on public safety.
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Assemblymember Yuh-Line Niou, left, and Rep. Mondaire Jones stand together during a news conference to speak out against Dan Goldman's candidacy on Aug. 15, 2022, in New York. | Mary Altaffer/AP Photo | ABOVE THE FOLD — Assemblymember Yuh-Line Niou and the New York Working Families Party have declined to mount a general election challenge to former federal prosecutor Dan Goldman, who won the Democratic primary for a congressional seat covering Lower Manhattan and parts of Brooklyn last month. "After careful deliberation between Yuh-Line and the WFP, Yuh-Line will not be a candidate in the general election in NY-10," Sochie Nnaemeka, WFP state director, said in a statement. "As we approach November, we'll collectively turn our efforts to defending our democracy against an increasingly extremist GOP." The party's announcement Tuesday night ended weeks of speculation about whether Niou would jump back into the race after finishing a few points behind Goldman in the Aug. 23 Democratic primary. The theory kicking around some political circles was that the voters of the 10th Congressional District wanted someone more progressive than Goldman — who would never be mistaken for a moderate in Congress but opposed expanding the Supreme Court and nixing private health insurance and was thus outflanked to his left by several other candidates. It was far from a foregone conclusion that supporters of several competitors, all backed by various factions of the city's progressive movement, would have moved wholesale to Niou's camp in a general election — especially one with higher turnout, more reliably Democratic voters and Gov. Kathy Hochul atop the Democratic ticket. — Joe Anuta
| | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | |  | What City Hall's reading | | "Eric Adams Tells Panel Looming Deficits Are 'Manageable.' Budget Watchdogs' Forecast Isn't So Sunny," by The City's Greg David : "For Mayor Eric Adams, the city's budget reflects the resolute actions he has taken in his first six months on the job: to boost financial reserves in case of an economic downtown, add money for pay raises and make conservative forecasts for future tax collections. He told a meeting of the Financial Control Board on Tuesday that the deficits the city faces in future years are 'manageable.' But the message from both the city and state comptrollers and other budget experts is clear cut: While the $101 billion city budget for this fiscal year ending next June 30 is in good shape, the future looks much worse than it did even two months ago." "Gov. Hochul teases changes to MTA, commuter rail mask requirement," by New York Post's David Meyer: "Gov. Kathy Hochul on Tuesday teased changes to New York's public transportation mask mandate, which has been in place since April 2020. 'With respect to masks, it's absolutely in conversation right now and we'll be making some announcements on that very shortly,' Hochul responded to a question during an unrelated transit announcement at Penn Station. MTA officials quietly stopped tracking mask mandate compliance in April, when the federal government's nationwide mandate was overturned in court. But MTA studies up until that point showed 64% mask usage — a steep decline from a year earlier when surveys showed nine in 10 subway riders masked up." — "Penn Station transformed, with tall ceilings, brightly lit walkways," by Newsday's Alfonso Castillo: "Long Island Rail Road commuters arrived Tuesday morning to a considerably different Penn Station — one with tall ceilings and brightly lit, wider walkways. 'Let there be light,' Gov. Kathy Hochul said at a news conference marking the milestone in the ongoing renovation of the LIRR's concourse at the 112-year-old station. 'This looks spectacular. This is the new Penn Station,' the governor said. 'And we're just getting started.'" Adams pledges transparency on possible arsenic in NYCHA water, by POLITICO's Erin Durkin: Mayor Eric Adams pledged transparency about an investigation into potential arsenic in the water at public housing buildings on Tuesday — even as he ducked questions about the controversy. "Transparency is going to be our hallmark," Adams said at an unrelated press conference at NYPD headquarters, where he refused to answer off-topic questions… Trailed by reporters as he departed the J'Ouvert press conference Tuesday, Adams would not provide detailed information but promised a full report soon. He said Riis Houses residents should continue to avoid drinking or cooking with their tap water for the time being. "One in Five Jobs Unfilled at Health and Buildings Departments, City Council Finds," by The City's Yoav Gonen: "The city Department of Health and Mental Hygiene had nearly 1,200 unfilled positions in June — making the agency on the pandemic's frontline one of 46 in city government missing more than 10% of their budgeted employees, according to preliminary figures obtained by THE CITY. The numbers reflect an ongoing challenge in hiring and retaining government workers, an issue that's getting scrutiny at a hearing on Friday under City Councilmember Gale Brewer's Oversight and Investigations Committee, which produced the preliminary numbers."
| | WHAT ALBANY'S READING | | "Wage Board recommends DOL chief accept 40-hour overtime threshold for New York farm workers," by Spectrum's Kate Lisa: "Farmers and advocates will continue to push New York state Department of Labor Commissioner Roberta Reardon to see things their way after the Farm Laborers Wage Board submitted its final report to the commissioner Tuesday, voting to recommend reducing the state overtime threshold for farm workers to 40 hours. The three-member board, with chair Brenda McDuffie, former president and CEO of the Buffalo Urban League; New York Farm Bureau President David Fisher; and Denis Hughes, former state AFL-CIO president; voted 2-1 in what may be the trio's final meeting late Tuesday afternoon. They voted to submit the report recommending a gradual phase-in of the 40-hour threshold down from 60 hours over the next decade." "Governor's race heats up as Hochul and Zeldin focus on different issues," by Times Union's Joshua Solomon: "New York's top two gubernatorial candidates emerged from the Labor Day weekend laser-focused on highlighting their political positions in an intensifying race as they each outlined what they contend are the most pertinent issues for voters heading into the final two months of the campaign. In dueling news conferences in Manhattan on Tuesday, Gov. Kathy Hochul asserted that the most important topics for New Yorkers are abortion, gun violence and her opponent's proximity to former President Donald J. Trump. A short distance away at the same time, U.S. Rep. Lee Zeldin countered that his campaign is focused on crime and the economy as he seeks to avoid being perceived as too aligned with the former president and the far-right flank of the Republican Party — despite a high-priced fundraiser that he attended with Trump over the weekend." — "Gov. Kathy Hochul's campaign released a pair of TV ads knocking her rival, Republican U.S. Rep. Lee Zeldin, on issues ranging from guns to abortion as well as the attack on the U.S. Capitol disrupting the certification of President Joe Biden's election." — "As General Election for Governor Heats Up, Zeldin's Congressional Votes Contrast with New York Public Opinion ," by Gotham Gazette's Charles Gorrivan "New York legislative staffers optimistic about union," by City & State's Rebecca C. Lewis: "On July 15, the newly formed New York State Legislative Workers United sent Stewart-Cousins a letter officially announcing its organizing efforts. At the time, nearly 80 state Senate staffers from 18 senators' offices had signed cards in support of forming a union. In the letter, organizers wrote that they hope Stewart-Cousins' 'long history fighting for the working people of New York will guide (her) decision" as they continue to work toward voluntary recognition. At the time, a spokesperson for the majority leader said she would 'review any additional information forthcoming.' Since then, little news has come out of the organizing effort, overshadowed in part by the August state Senate primaries and soon the November general election that may affect which staff will still have jobs in January." New York seeks to revive Hudson River's industrial past with offshore wind, by POLITICO's Marie J. French: New York's big dreams of building components for the offshore wind supply chain at Albany-area ports are hitting unexpected riptides, even with the promise of lucrative state and federal grants. The Port of Coeymans — a former brick manufacturer near Albany turned into a maritime hub for construction debris from New York City, sand, gravel and other materials — has pivoted toward an additional role of supporting offshore wind. But the goals are bigger than just at the Port of Coeymans and include the nearby Port of Albany, and both face an uncertain future amid growing environmental concerns. Accelerated tree-cutting at the Port of Albany, with its own ambitious expansion plans, may have imperiled its federal grant for a new manufacturing plant for offshore wind equipment, and federal agencies are raising concerns that could jeopardize critical approvals for the project. #UpstateAmerica: North Greenbush is getting a Chick-fil-A, so Cap Region dwellers won't don't have to buy a plane ticket to get to the (only other) one, in Albany International Airport.
| | | | INTRODUCING POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don't miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY. | | | | | | | TRUMP'S NEW YORK | | "Steve Bannon faces state indictment in N.Y., will surrender Thursday," by the Washington Post's Shayna Jacobs, Jacqueline Alemany and Josh Dawsey: "Stephen K. Bannon is expected to surrender to state prosecutors on Thursday to face a new criminal indictment, people familiar with the matter said, weeks after he was convicted of contempt of Congress and nearly two years after he received a federal pardon from President Donald Trump in a federal fraud case. The precise details of the state case could not be confirmed Tuesday evening. But people familiar with the situation, speaking on the condition of anonymity to discuss a sealed indictment, suggested the prosecution will likely mirror aspects of the federal case in which Bannon was pardoned. In that indictment, prosecutors alleged that Bannon and several others defrauded contributors to a private, $25 million fundraising effort, called 'We Build the Wall,' taking funds that donors were told would support construction of a barrier along the U.S.-Mexico border."
| | AROUND NEW YORK | | — Adams sent a "fact-finding" delegation to the southern border amid the dispute with Texas Gov. Greg Abbott. — Former state Attorney General Eric Schneiderman got his law license back after a one-year suspension. — The first chief equity officer at the city Health Department is stepping down. — National Grid is predicting home heating bills in its upstate New York territory will rise 39 percent this winter. — Adams signed legislation to bolster maternal health services. — " Why Buffalo was the place to unionize Starbucks" — Seventeen of the 29 Buffalo area priests who were placed on leave after Child Victims Act allegations have returned to duty. — Former Rep. Chris Gibson is retiring from his job as Siena's president. — Snow days will be called off again this school year with schools instead turning to remote learning. — An exhibit honoring Black lives lost to racial injustice is coming to Central Park. — Six people were injured after an apartment fire in Astoria. — Another ghost gun retailer has settled with the city, agreeing to no longer sell or distribute untraceable firearm kits to New Yorkers.
| | SOCIAL DATA BY DANIEL LIPPMAN | | HAPPY BIRTHDAY: Peggy Noonan … Shawn McCreesh … Marc Aidinoff of the White House Office of Science and Technology Policy … Bloomberg's Zoe Tillman … Joe Klein … IBM's Chris Padilla … WaPo's Michael Duffy … CBS' Melissa Quinn … MSNBC's Stefanie Cargill … Emerson Collective's Robin Reck … John Catsimatidis … CNN's Priscilla Alvarez … Newsy's Nathaniel Reed … Fentress Boyse … Kate Andersen Brower … Ben Pasternak … WNYC's Brigid Bergin … (was Tuesday): Norman Sturner MEDIAWATCH — Brigid Bergin, senior political reporter at WNYC, will host The People's Guide to Power, a new call-in radio series on the station that will debut Sunday Sept. 11 and run every Sunday for 10 weeks through the November general election. … John Miller, formerly the NYPD's chief counter-terrorism official, is joining CNN as a law enforcement and intelligence analyst. MAKING MOVES — Kate Lucadamo is the new communications director at CUNY. She was previously a vice president at Marathon Strategies. … Jordan Licht has been named CFO of Burford Capital Limited. He most recently was COO and chief strategy officer of the combined mortgage company Caliber Home Loans and Newrez LLC and is a Morgan Stanley alum. Former CFO Ken Brause is now a senior adviser to Burford. … … Natalie Bashner is now an associate on the nonprofits team at Kasirer. … Saima S. Ahmed has been named EVP and general counsel of SIFMA. She most recently was senior director of NYSE Regulation and Head of the market watch and corporate actions groups at the New York Stock Exchange. WEDDING — Omar Syed, VP at SVB Securities and an alum of Moelis and Guggenheim, recently married Michelle Kim, principal at Henkel Search Partners. The couple met in behavioral econ class at Cornell in 2012 and married at Manhatta restaurant in the Financial District. Pic ... Another pic
| | Real Estate | | "New York housing agency to crack down on rent-regulated, 'Frankenstein' loophole," by Gothamist's Chau Lam: "A state agency is looking to crack down on a loophole in New York state law that has allowed landlords of rent-regulated apartments to combine units and dramatically increase the rent — a legal workaround that regulators have been aware of for more than two years. The Division of Housing and Community Renewal, the state agency that oversees roughly one million rent-regulated units in New York, issued a proposed rule change last week that would curb a landlord's ability to merge regulated units, a move the real estate industry is already decrying." | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
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