Tuesday, February 7, 2023

Adams vs. Hochul's budget proposal — trouble in paradise?

Presented by American Beverage Association: Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
Feb 07, 2023 View in browser
 
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By Anna Gronewold, Sally Goldenberg and Eleonora Francica

Presented by

American Beverage Association

Gov. Kathy Hochul’s state budget proposal is testing the limits of New York City Mayor Eric Adams’ public affection for his ally in Albany.

Adams’ budget office prepared a memo raising concerns about a bevy of unfunded mandates in the $227 billion spending plan Hochul rolled out last week. The missive — which was obtained by POLITICO and has not yet been reported — also laid out a perceived shortfall in state aid for tens of thousands of asylum seekers entering the five boroughs.

All told, the state plan would benefit the city this year by $168 million, but cost the Adams administration $461 million next year and $1.34 billion in fiscal 2025, according to the memo.

“In terms of policy, the governor’s proposed budget incorporates many of the mayor’s priorities,” the memo reads. “However, financially, the governor’s executive budget contains few city priorities and poses significant challenges to the city if enacted as written, particularly because the city’s financial position has already been strained by the migrant crisis.”

For starters, the city Office of Management and Budget calculated that the state is providing insufficient funding for the more than 44,000 South and Central Americans seeking shelter in New York City. The state’s $1 billion commitment over two years only amounts to 29 percent of shelter costs. Adams is estimating spending $4.2 billion on asylum seekers by the end of fiscal 2024. Hochul’s team said she is using a standard funding formula to determine the adequate contribution for sheltering migrants.

The memo also projects the city will spend $1 billion on Hochul’s proposal to lift the charter school cap, $250 million or so related to her authorization of so-called zombie charters and $1.3 billion on required class size reductions. While city officials are calling these education measures unfunded mandates, Hochul’s team is arguing she has provided record-high education aid to the city.

And, of course, Adams continues to oppose a push for him to cough up more than $500 million annually to the cash-strapped Metropolitan Transportation Authority — money Hochul’s reps say would directly benefit city straphangers.

While mayors and governors typically spar over budgets, Adams’ fractured relationship with legislative leaders leaves him more dependent on Hochul to further his agenda in Albany this year.

He is planning to testify about the spending plan during a visit to the state capital on Feb. 15 for the local government joint legislative hearing.

IT’S TUESDAY and the budget hearing on public protection in Albany starts at 9:30 a.m.

Got tips, suggestions or thoughts? Let us know ... By email: agronewold@politico.com and sgoldenberg@politico.com or on Twitter: @annagronewold and @sallygold

WHERE’S KATHY? In Albany with no announced public schedule.

WHERE’S ERIC? Making a cannabis-related announcement with Manhattan District Attorney Alvin Bragg and then attending President Joe Biden’s State of the Union Address as a guest of Rep. Adriano Espaillat.

QUOTE OF THE DAY: “I will thank him for shooting down the Chinese spy balloon.” — former Rep. Lee Zeldin in a reference to Rep. George Santos’ complicated relationship with the truth

ANOTHER ONE: “I slept like a baby, it was warm. I had my nice little blanket. That’s my favorite blanket. I’m like Linus, you know, on Charlie Brown.” — Eric Adams, regarding his overnight at Red Hook’s Brooklyn Cruise Terminal

 

A message from American Beverage Association:

America’s leading beverage companies – The Coca-Cola Company, Keurig Dr Pepper and PepsiCo – are bringing consumers more choices with less sugar. From sparkling, flavored and bottled waters to zero sugar sodas, sports drinks, juices and teas, consumers have more options than ever. In fact, nearly 60% of beverages sold contain zero sugar. Americans are looking for more choices to support their efforts to find balance, and America’s beverage companies are delivering. Explore these choices at BalanceUS.org.

 
WHAT CITY HALL IS READING

Adams supporter suing city for discrimination gets nearly $100,000 raise, by POLITICO’s Sally Goldenberg and Joe Anuta: A longtime city employee who sued his agency for racial discrimination received a nearly $100,000 pay raise last August for a newly created position. Richard Whint raised eyebrows within the Department of Buildings and City Hall last August, when he jumped from an $86,000 job as an assistant chief inspector to an assistant commissioner role with a $180,250 salary, three people with direct knowledge of the matter told POLITICO. Several administration officials with knowledge of the hire said they believed he received the unusually-high increase because of his friendship with Mayor Eric Adams — a connection Whint vehemently denied in a brief phone call last week.

Mayor Adams ends COVID vaccine requirement for NYC municipal workers,” by WNYC’s Elizabeth Kim

Just a Dozen of 89 NYPD Officers Responsible for Serious Misconduct During 2020 BLM Protests Have Been Disciplined,” by THE CITY’s Yoav Gonen: “The Civilian Complaint Review Board released dozens of its investigative recommendations for officer discipline in a 590-page review made public Monday, which says the agency fielded over 750 complaints containing more than 2,000 allegations regarding police misconduct during the weeks of protest. CCRB investigators fully probed 321 of those complaints and substantiated allegations of serious misconduct against 89 police officers and supervisors, many for improper use of force.”

City Council Member Funnels Taxpayer Dollars to Anti-Abortion Clinic,” by Documented’s Amir Khafagy: “City Council member Vickie Paladino gave $10,000 of City Council discretionary funds to a Queens Anti-Abortion Clinic which advocates say puts immigrant women in danger.”

Two high-ranking FDNY chiefs surrender titles in protest after commissioner demotes three other chiefs in shake up,” by Daily News’ Thomas Tracy, Michael Gartland and Graham Rayman: “After FDNY Commissioner Laura Kavanagh demoted three FDNY chiefs over the weekend, two of the department’s top uniformed officials gave up their own positions in protest, the Daily News has learned.”

NBA, NHL on sidelines over James Dolan’s MSG ‘enemies list,’ facial tech,” by New York Post’s Zach Williams: ““Based on the facts and circumstances as we currently understand them, the NHL is not aware of any local (or other) law or applicable rule that MSG is currently violating,” David Zimmerman, senior executive vice president of the National Hockey League, said in a Feb. 3 letter to state Sen. Brad Hoylman-Sigal. … The National Basketball Association cited how the practice is 'under review by multiple authorities' including state Attorney General Letitia James and the New York State Liquor Authority, while claiming it would be 'premature for the NBA to comment further or take any action' despite a Jan. 27 letter from Hoylman-Sigal to both leagues.”

AFTER AN OFF-DUTY NYPD OFFICER was shot this weekend, Mayor Eric Adams said he’d “guarantee” the perpetrator has “a long track record of violence.” “It just highlights the 1,700 bad guys,” he said on Fox 5, referring to the core group of recidivists he says wreak havoc on the city. His comments come amid his effort to have Albany rethink the state's bail laws, despite pushback from leadership in the state legislature. He said he’s looking forward to working with lawmakers in Albany to come up with a more “holistic approach” to public safety. — Zachary Schermele

 

JOIN POLITICO ON 2/9 TO HEAR FROM AMERICA’S GOVERNORS: In a divided Congress, more legislative and policy enforcement will shift to the states, meaning governors will take a leading role in setting the agenda for the nation. Join POLITICO on Thursday, Feb. 9 at World Wide Technology's D.C. Innovation Center for The Fifty: America's Governors, presented by Cisco, where we will examine where innovations are taking shape and new regulatory red lines, the future of reproductive health, and how climate change is being addressed across a series of one-on-one interviews. REGISTER HERE.

 
 
WHAT ALBANY'S READING


Zeldin dumps campaign treasurer he shared with Santos, by POLITICO’s Zachary Schermele and Anna Gronewold: Former Rep. Lee Zeldin is forming a new federal fundraising PAC, without his longtime campaign treasurer. Nancy Marks, the political accountant embattled Rep. George Santos also used for his congressional runs, won’t be a part of the PAC, Zeldin said Monday at the New York State Conservative Party Political Action Conference in Albany. “We will be announcing a new federal PAC that is being stood up right now utilizing a different treasurer,” Zeldin said.

MTA Could Nix Fare Hikes with Just $350M More Per Year, Lieber Says,” by Streetsblog New York’s Kevin Duggan: “The MTA could avoid hiking subway and bus fares to nearly $3 by next year if lawmakers come up with another $350 million in annual funding, its chairperson and CEO Janno Lieber said Monday. Testifying before state lawmakers in Albany, Lieber justified the 5.5-percent hike in Gov. Hochul’s proposed budget as a return to regular increases the MTA adopted every two years between the 2008 financial crash and the outset of the Covid-19 outbreak.”

— Lieber told lawmakers he will push the labor unions at the Long Island Rail Road for work rule reforms.

Lawmakers Hail Governor’s Housing Push — Except on Developer Tax Breaks,” by THE CITY’s Greg David: “Both Assemblymember Linda Rosenthal (D-Manhattan) and Sen. Brian Kavanagh (D-Manhattan) support Gov. Kathy Hochul’s proposals to set state housing development targets and penalize localities that don’t increase housing production by 3%, especially near transit hubs. Kavanagh and Rosenthal also back Mayor Eric Adams’ proposal to find a way to legalize thousands of basement and other 'accessory dwelling units' as they are called. ... But when it comes to the tax breaks both the governor and the mayor want, the response is, in effect, either ‘convince me’ or ‘there is no support for such steps in the legislature.’”

#UpstateAmerica: The Buffalo area was hit with a 3.8-magnitude earthquake Monday, the strongest recorded there in 40 years.

 

A message from American Beverage Association:

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FROM THE DELEGATION

George Santos Invited a Guest to the State of the Union. He Said Yes.,” by The New York Times’ Michael Gold: “Santos, a Republican facing scrutiny over a web of false claims, including a family connection to the Sept. 11 terrorist attacks, will bring a former firefighter who did rescue work at ground zero as his guest to the State of the Union.”

SCHUMER’S GUESTS will include Albany Nanotech leader David Anderson and Micron’s first hire in Syracuse, Savion Pollard.

AROUND NEW YORK

— Salman Rushdie says he suffers from nightmares and writer's block after he was stabbed 15 times last summer during a lecture in Chautauqua,

— Sales tax revenue rose 12.7 percent last year, to $22.1 billion statewide, according to state Comptroller Tom DiNapoli.

— Albany's newest sister city is Ukraine’s war-torn Bucha.

— Assemblymember Michaelle Solages introduced legislation to restrict the use of physical restraints and ban seclusion in schools following a Times Union investigation.

 

DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOSDOWNLOAD FOR ANDROID.

 
 
SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Gay Talese (91) … Dave Levinthal … IMF’s Jeff Kearns … former Rep. Michael Grimm (R-N.Y.) … David L. Reich ... Ben Mezrich Cappi Williamson

ENGAGED — Will Cook, a senior account supervisor at experiential marketing agency Red Moon Marketing, recently proposed to Clare Rizer, PR account supervisor at comms and ad agency Luquire. The couple met on Hinge.Pic

 

A message from American Beverage Association:

Families are looking for more choices to support their efforts to find balance, and today nearly 60% of beverages sold contain zero sugar. America’s beverage companies are intentionally offering more choices with less sugar or no sugar at all, and our actions are making a real difference.

Our commitment to helping our consumers find balance includes:
· Putting clear calorie labels on every bottle, can and pack.
· Reminding consumers to think about balance with signs on coolers and displays in store.
· Innovating products to offer more choices with less sugar or no sugar at all.
· Working with local organizations across the country to build awareness of the many choices available – and make zero sugar beverages more available in communities where it’s needed most.

Learn more at BalanceUS.org

 
Real Estate

Federal court upholds NY rent stabilization laws, setting up possible Supreme Court showdown,” by WNYC’s David Brand: “New York City’s rent stabilization system is safe for now, after a federal appeals court on Monday upheld laws capping rent increases and limiting evictions on roughly a million apartments citywide. The Second Circuit Court of Appeals affirmed the decades-old rent stabilization laws in response to two related court challenges from landlord trade groups and a collection of property owners seeking to dismantle the tenant protections.”

 

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Anna Gronewold @annagronewold

 

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