Wednesday, March 22, 2023

Big bucks from Bloomberg roil budget battle

Presented by CVS Health: Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
Mar 22, 2023 View in browser
 
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By Joseph Spector, Anna Gronewold and Zachary Schermele

Presented by CVS Health

Mike Bloomberg, former mayor of New York, arrives at the COP27 climate summit in Egypt's Red Sea resort of Sharm el-Sheikh, Monday, Nov. 7, 2022.

Michael Bloomberg, former mayor of New York City, arrives at the COP27 climate summit in Egypt on Nov. 7, 2022. | AP/Ludovic Marin, Pool


Gov. Kathy Hochul’s budget negotiations might have needed a lifeline after the Senate and Assembly rejected much of her top agenda items. She found an unlikely source with deep pockets: former New York City Mayor Mike Bloomberg.

A New York Times report Tuesday that Bloomberg is quietly putting $5 million into an ad campaign and targeted mailers in lawmakers’ districts to bolster her budget proposals roiled the state Capitol. It raised alarms among some legislators about her linking up with the billionaire to push an agenda that is at odds with some of their own initiatives, such as raising taxes on the wealthy.

“I would prefer a more constructive approach where the governor actually talked to people. I have not heard from the governor or the governor's people since January 1. Not one word,” Assemblymember Danny O’Donnell (D-Manhattan) said.

The three-term mayor has not commented on his support of Hochul, and his advisers declined to comment Tuesday. The group he is funding, American Opportunity, has also been mum about its funding sources, despite its apparent ties to the Democratic Governors Association.

“American Opportunity is a 501(c)(4) established to promote social welfare and policies, and it has registered in New York state as a grassroots lobbying entity,” it said in a statement. “Our report in July will disclose contributions, as required by state law.”

The ads, first reported earlier this month by POLITICO, come at a critical time for Hochul as she tries to get approval for a sweeping housing proposal, expanding charter schools and giving judges more discretion to set bail — all of which are facing opposition in the Democratic-led Legislature ahead of the March 31 deadline for an on-time deal.

"Governor Hochul's Executive Budget makes transformative investments to make New York more affordable, more livable and safer, and we welcome support for those proposals,” spokesperson Hazel Crampton-Hays said in a statement, declining to comment about the group.

Bloomberg’s relationship with Albany is remembered in part for trying to help Senate Republicans stay in power as their largest donor, but they eventually lost the majority in 2019.

Still, Bloomberg is a moderate, and much of Hochul’s agenda tries to balance the wants of the progressive-leaning Legislature and voters across New York — who, in her narrow victory last November, showed more moderate leanings on crime and the economy.

The lack of transparency around who is backing the media blitz reminded Albany insiders of when Gov. Andrew Cuomo took office in 2011 and the business-backed Committee to Save New York was formed and spent $15 million to push his agenda with plenty of secrecy around its donors.

What’s next? Groups who support raising taxes on the wealthy quickly announced a news conference at the Capitol on Wednesday morning to deride Bloomberg’s bid to “buy” the budget.

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

WHERE’S KATHY? In Albany highlighting the public safety proposals in her proposed budget.

WHERE’S ERIC? Hosting breakfast for United Nations visitors before making a transportation and public safety announcement in the Bronx. Then he’ll appear on “Good Morning America” followed by a meeting with World Economic Forum Founder and Executive Chairman Professor Klaus Schwab. Then he’ll deliver remarks in support of New York Water Week and co-host a dinner with C40 members.

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What City Hall's reading

‘No Hispanics’ or ‘grandmotherly types’: NY prosecutors face complaints over jury bias,” by WNYC’s Samantha Max: “Ten current and former New York prosecutors who judges say illegally screened out potential jurors because of race or religion are facing ethics complaints that could prompt investigations or disciplinary actions. Judges have already ruled either during trial or in appeals that all 10 prosecutors broke the law. But a group of law professors is now bringing ethics complaints against the prosecutors in the hopes of holding them accountable for what they did.”

Teachers Buck Mulgrew, Petition for Referendum Vote On Medicare Advantage,” by THE CITY’s Claudia Irizarry Aponte: “On Sunday, opposition groups within the United Federation of Teachers, including teachers currently on the city’s payroll, came together to launch a petition to force a referendum vote on any changes to health care plans for retirees or any union members. It’s the first time current city workers are challenging union leadership over the controversial switch to a privately run Medicare Advantage plan, which is slated to be managed by Aetna. Mulgrew played a key role in negotiating the health plan change and is now facing a member revolt.”

Rikers Intake Is a Mess, But We Can’t Expect Too Much Progress, Federal Judge Rules,” by NYS Focus’ Chris Gelardi: “The Department of Correction has continuously failed to track how long it’s holding people in the jails’ violent and chaotic intake pens, Judge Laura Taylor Swain wrote in a ruling released last week.”

A hidden divide: How NYC’s high school system separates students by gender,” by Chalkbeat’s Michael Elsen-Rooney and Kae Petrin: “A whopping 17% of New York City public high schoolers go to a school that’s at least 65% male or 65% female — or, in other words, where boys outnumber girls by at least 2 to 1, or vice versa, a Chalkbeat analysis found.”

#ZooYork: “‘Feisty’ Canarsie cow escapes slaughterhouse, sprints through Brooklyn streets,” by WNYC’s Jake Offenhartz

 

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WHAT ALBANY'S READING


Progressives have a new minimum wage goal: $20 and up, by POLITICO’s Nick Niedzwiadek: An intraparty fight has broken out in New York over the state’s minimum wage laws and how to get more money to the lowest-paid workers without hurting businesses, portending similar skirmishes across the country in the coming years.

Union leaders enlist NY Democrats in key budget fights with Gov. Kathy Hochul,” by New York Post’s Zach Williams: “Democratic legislators joined labor leaders Tuesday in a direct challenge to Gov. Kathy Hochul and key parts of the $227 billion state budget she has proposed ahead of an April 1 deadline. ‘We worked very hard to get you elected because we believed in you,’ George Gresham, president of 1199 SEIU told thousands of members assembled in an Albany arena. ‘But it’s time for us to tell you, with love, we don’t work for you – you work for us,’ he added.”

— “Thousands descend on Albany for a final push for their causes,” by Times Union’s Capitol Bureau

Upstate N.Y. Republican lawmaker pitches bail compromise, new commission to steer judicial discretion,” by Daily News’ Denis Slattery: “An upstate Republican lawmaker believes there’s a path to bipartisan compromise on bail. As Gov. Hochul butts heads with her fellow Democrats over her plan to once again amend New York’s bail laws in this year’s budget, Sen. Jake Ashby (R-Rensselaer) is proposing an overhaul he says will grant judges more discretion and still keep low-level offenders from being jailed simply because they’re poor.”

New York is overhauling campaign finance. But not the loophole that makes party fundraising stronger,” by Buffalo News’ Chris Bragg: “Recent spending by the state Democratic Party is an example of the gray area in which housekeeping accounts sometimes operate. Before November 2022, the state Democratic Party housekeeping account did not have a single staffer on its payroll, records show. But following Hochul’s election victory, nearly the entire Hochul campaign staff left her payroll on Nov. 15 and briefly went onto the Democratic housekeeping account’s.”

#UpstateAmerica: Vote for Saranac Lake to be named Strongest Town in North America!

 

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TRUMP'S NEW YORK

NYC pols condemn Trump for trying to incite unrest over possible indictment,” by AMNY’s Dean Moses: “Manhattan Borough President Mark Levine and numerous other elected officials released a statement on March 21 expressing their disapproval and disgust over former President Donald Trump’s attempt to incite unrest, amNewYork Metro has exclusively learned. According to the statement obtained by amNewYork Metro, the group of New York City elected officials are condemning the 45th president for fomenting his fanatic fanbase to protest a possible indictment for his alleged role in providing hush money to porn star Stormy Daniels.”

Unfounded bomb threats called in against Manhattan DA, courts, NYPD HQ, as potential Trump indictment looms,” by Daily News’ Molly Crane-Newman and Thomas Tracy: “Unfounded bomb threats were made against the Manhattan District Attorney’s office, nearby court buildings and NYPD headquarters Tuesday — as New York ratchets up security in preparation for former President Trump’s possible indictment, the Daily News has learned. As barricades were set up outside high-profile buildings in Lower Manhattan someone called 911 to say that a bomb had been placed inside Manhattan Criminal Court, a law enforcement source said.”

Michael Cohen’s Long Arc From Trump Ally to Chief Antagonist,” by The New York Times’ Maggie Haberman, Ben Protess and Jonah E. Bromwich: “Mr. Cohen’s transformation from trusted fixer to chief antagonist — a 180-degree turn against a man he once vowed to take a bullet for — upended his life … Now, Mr. Cohen is poised to seize his biggest moment yet: a day in court against Mr. Trump.”

 

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AROUND NEW YORK


— City transportation authorities are potentially pivoting to better bus service to LaGuardia after the AirTrain plan was officially scrapped.

— The pipeline for expanding the new housing supply in New York City continues to lag this year, according to a new report from REBNY.

— “This Assembly member didn’t file campaign finance reports for nearly 5 years. No one noticed," City and State's Jeff Coltin reports.

— Senate Majority Leader Chuck Schumer says "skin-rotting" xylazine is infiltrating the upstate New York drug supply.

— The Roman Catholic Diocese of Albany says its Chapter 11 filing was due to Child Victims Act lawsuits, not litigation around the collapse of the St. Clare's Hospital pension plan.

SOCIAL DATA BY DANIEL LIPPMAN


HAPPY BIRTHDAY: Wolf Blitzer … NBC’s Ali Vitali … TIME’s Ruairí Arrieta-Kenna Emily Rockefeller Peter Lezama Matt Negrin Matthew Leib

MAKING MOVES — Alex Fox starts on Monday as the director of scheduling for House Minority Leader Hakeem Jeffries. She most recently served as the scheduler for Homeland Security Secretary Alejandro Mayorkas.

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Real Estate

Mayor Adams calls for new tax breaks, dormitory housing in NYC to ease affordability crisis,” by WNYC’s David Brand: “Mayor Eric Adams wants to build a half million homes over the next decade, but that will be impossible without new tax incentives meant to spur housing development—and maybe even changes to current building codes to allow for single-room occupancy units, he said Monday. With budget negotiations underway in Albany, Adams said state lawmakers risk compounding the housing crisis if they fail to take up a tax break similar to the expired, and controversial, 421a program, which waives most property taxes in exchange for some income-restricted housing.”

 

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