| | | | |  | | By Anna Gronewold, Zachary Schermele and Eleonora Francica | Presented by The City University of New York | | 
Bob Megna. | AP Photo/Mike Groll |
When acting state budget director Sandra Beattie was sacked and replaced with Bob Megna on the last day of February, hypotheses about “why now?” ran wild.
Throughout January and February, Megna had expressed to several individuals in the political sphere — as well as to POLITICO directly — that he had no interest in leaving his gig as president of the Rockefeller Institute. And removing Beattie before she had a chance to fully deliver on her first budget seemed like a slap, even by Albany standards. We now know, thanks to reporting by the Times Union, that the timing was forced. Beattie and Rajiv Rao, chief technology officer over at ITS, are involved in a probe from the inspector general’s office about whether they followed procurement guidelines for a number of government contracts. The investigation, which is in its early stages, is not in itself the most scandalous of the young Hochul administration. But it reinforces a couple of emerging Hochul administration themes:
Ethics issues won’t go away by declaration or distance alone. In addition to bigger stories like the Brian Benjamin situation, Hochul’s administration has been dogged by consequences of some pandemic-era actions related to money the state spent outside of the regular procurement process. The governor herself faced campaign attacks around the overpayment of about $300 million for Covid tests that were purchased from a big donor. To that end, Beattie’s dismissal and Rao’s leave of absence are interesting in the grand scheme of things, Reinvent Albany’s John Kaehny told us. “Why now, why them, and what the heck did they do that the governor’s staff hasn’t done for many big political contributors?” he said.
The Hochul administration is still losing personnel, and the pool for new, high-caliber replacements isn’t strong. The response on all floors of the Capitol this week was largely relief that Megna — perhaps the most experienced budgeteer in New York — would be around to guide the process. But even he is planning a relatively short second tenure, according to his announcement. Hochul needs to fill permanent leadership positions at Tax, Health, Corrections, Thruway State Police and Child and Family Services. And she could face another wave of departures soon. A handful of key executive chamber staff have been talking about leaving after the budget (it’s due before April 1, you recall). Turnover is normal the first year of a new term, but it could exacerbate Team Hochul’s already rocky descent to Albany. Hochul’s office said Thursday that no members of her self-described inner circle have given any formal departure notices. IT’S FRIDAY and the Albany version of SOMOS weekend is kicking off. Got tips, suggestions or thoughts? Let us know ... By email: agronewold@politico.com or on Twitter: @annagronewold WHERE’S KATHY? In New York City as a guest on CNN This Morning first, and then she will join second gentleman Douglas Emhoff and Health and Human Services Secretary Xavier Becerra for a roundtable with Latino community leaders to discuss equity in mental and behavioral health access. WHERE’S ERIC? In New York City announcing the appointment of DOP Commissioner Holmes, attending SOMOS New York conference events, and meeting with members of the state legislature.
| | | | A message from The City University of New York: When it comes to lifting up New York and building a strong, equitable workforce for the future, no one does it better than CUNY. With 2,800-plus programs, our 25 schools turn out thousands of graduates annually with the drive to help your organization thrive. So partner with us as your number one talent source. Mentor our students. Offer them internships. Hire them. Discover New York’s most vital university at cuny.edu/hirecuny and follow us on Twitter. | | | |  | What City Hall's reading | | JUANITA HOLMES has been tapped to be commissioner for the New York City Department of Probation, New York City Mayor Eric Adams announced. Holmes is a 35-year veteran of the New York City Police Department and is the first uniform Black woman to be chief of training at the NYPD. Recently, she’s made news for inviting rapper Cardi B to a police event and eliminating a timed run for recruits in an effort to draw more women to the academy. Manhattan DA releases data about internal NYPD probes, by POLITICO's Joe Anuta: In a Feb. 28 letter sent to the New York Civil Liberties Union, a top Bragg deputy wrote that the DA’s Police Accountability Unit investigated 902 allegations of criminal misconduct within the department last year — the first time such numbers have been shared publicly — and planed to update the office's data systems to make current information available going forward. “Penn Station redevelopment isn’t dead yet, Gov. Hochul says,” by WNYC’s Jon Campbell: “New York Gov. Kathy Hochul isn’t willing to say the $7 billion renovation of Penn Station is dead, even though a key state senator says it’s ‘dead three different ways.’ On WNYC’s All Things Considered on Thursday, host Sean Carlson asked the Democratic governor about the future of the Penn Station redevelopment, which has been dealt repeated blows in recent months by real-estate giant Vornado’s decision to pull back on a series of planned office towers in the surrounding area — buildings that were supposed to pay for much of the massive transit project.” “NYC union bosses approve controversial plan to mandate Medicare Advantage for retired city workers,” by Daily News’ Cayla Bamberger and Chris Sommerfeldt: “New York City’s public sector union bosses signed off Thursday on a highly controversial plan to make a cost-cutting, partially privatized version of Medicare the only health insurance option available for the municipal government’s retired workforce. The stamp of approval from the Municipal Labor Committee, which is made up of reps for all local public sector unions, clears the way for Mayor Adams’ administration to eliminate traditional Medicare as a choice for the city’s roughly 250,000 retired workers.” “Asian-American parents latest group to rally to increase NYC charter schools,” by New York Post’s Carl Campanile: “Grassroots momentum is growing among New York’s minority communities to lift the cap on charter schools, with Asian-American parents holding a rally Friday outside the city Dept. of Education headquarters. The push from the Asian community for school choice comes just three days after 500 predominantly black and Hispanic parents held a pro-charter school event outside City Hall.”
| | | | 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 ALBANY'S READING | | FIRST IN PLAYBOOK: Hochul’s getting some outside help in promoting her budget proposal. A group called American Opportunity — which was authorized to begin lobbying in New York on Feb. 27 under the Washington, D.C., address for the Democratic Governors Association — is launching a collection of promos on Monday. The new campaign includes mailers; digital ads “Every Opportunity”, “Safe Communities” and “Home”; and a 30-second TV spot called "Understands," which highlights Hochul’s attention to affordable housing, child care, and education. For public safety “it means more police on the street, help for those struggling with mental illness. And Gov. Hochul kept her word not to raise income taxes,” the narration says. Hochul’s ideas in the ads are just that — ideas, for now. We’ll see what the Legislature has to say in a couple of weeks. — Anna TODAY: At 10 a.m., the group that wants more taxes for the state’s ultra-wealthy, corporations and CEOs is rallying outside Madison Square Garden and against people like owner and billionaire Republican James Dolan. “Stewart’s president urges Hochul to reconsider flavored-tobacco ban,” by Times Union’s Brendan J. Lyons: “Gary Dake, president of Stewart’s Shops, has joined the intensifying debate over Gov. Kathy Hochul’s proposal to ban flavored tobacco products, asserting that it would ‘dramatically’ increase black market cigarette sales, particularly those that are infused with menthol. ‘We share your concern about underage smokers, but we think that your well-intentioned attempt to prevent youth smoking can and will have the opposite effect,’ Dake wrote in a letter he sent to Hochul this week.” COMPTROLLER TOM DINAPOLI released his analysis and critique of Hochul’s state budget proposal. He likes the parts about increasing the state’s savings and reserves. However, “there are several concerning proposals that exempt approximately $12.8 billion from competitive bidding and oversight requirements, leaving too much in the dark,” DiNapoli said. “The budget also advances debt proposals that reinforce concerns about the affordability of debt levels and the transparency and accountability of current debt practices.” Dig in to the 65-page assessment here. “Jobless claims jump to 211,000, the highest since Christmas. Blame New York,” by MarketWatch’s Jeffry Bartash: “An unusually big increase took place in New York. Raw or actual unemployment applications in the state jumped to 30,241 from 13,878 in the prior week. Chief economist Stephen Stanley of Santander U.S. Capital Markets said school workers in New York City are allowed by contract to apply for benefits during winter and spring breaks. Asked about the upsurge, a government spokesperson said by email that ‘the New York State Department of Labor cannot speculate on the increase.’” #UpstateAmerica: Wilton Commons senior citizens lost their shopping carts and they are not OK with it.
| | | | A message from The City University of New York:   | | | | | BIDEN AND THE BOROUGHS | | “Biden Budget Routes $1.2 Billion to Big Transit Projects in New York,” by The New York Times’ Patrick McGeehan: “President Biden’s budget plan, released on Thursday, routes about $1.2 billion to two of the biggest transit projects in New York City: the Second Avenue Subway extension and new train tunnels under the Hudson River. Because the funding was already allocated in the $1 trillion infrastructure bill that was signed into law in 2021, it does not require additional congressional approval, said Senator Charles Schumer, Democrat of New York and the majority leader. Mr. Biden’s full budget blueprint, his first released under a divided Congress, will be subject to lengthy negotiations in the House and Senate and stands little chance of becoming law.” | | TRUMP'S NEW YORK | | “Prosecutors Signal Criminal Charges for Trump Are Likely,” by The New York Times’ William K. Rashbaum, Ben Protess and Jonah E. Bromwich: “The prosecutors offered Mr. Trump the chance to testify next week before the grand jury that has been hearing evidence in the potential case, the people said. Such offers almost always indicate an indictment is close; it would be unusual for the district attorney, Alvin L. Bragg, to notify a potential defendant without ultimately seeking charges against him.”
| | | | 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 iOS– DOWNLOAD FOR ANDROID. | | | | | | | FROM THE DELEGATION | | George Santos masterminded 2017 ATM fraud, former roommate tells feds, by POLITICO’s Jacqueline Sweet: Rep. George Santos orchestrated a 2017 credit card skimming operation in Seattle, the man who was convicted of the fraud and deported to Brazil said in a sworn declaration submitted to federal authorities Wednesday. George Santos is offering to co-sponsor a bill designed by some of his fiercest Republican critics to prevent him from profiting off his campaign lies, by POLITICO’s Olivia Beavers: In a letter delivered Thursday to the office of Rep. Anthony D’Esposito (R-N.Y.), the lead sponsor on the bill, Santos offered to sign onto his “No Fame for Fraud” resolution as well as unspecified “similar housekeeping legislation.” — Rep. Elise Stefanik said Congress will be briefed on an FBI review into informant Shahed Hussain and the deadly 2018 crash of the limousine he owned. | | AROUND NEW YORK | | — Video footage obtained by THE CITY raises questions about the quick release of a retired cop who was arrested for allegedly menacing kids with a gun. — Assemblymember Danny O’Donnell wants $150 million in funding for the state arts council. — A “ghost gun” team of the New York Police Department seized gun parts, drug-related materials and pressure cookers and chemicals that could be used to make explosives from a luxury co-op on the Upper East Side. — Visitors to City Hall will have to enter through a side door for the next year. — Starting Monday, the MTA will reroute some LIRR trains from Grand Central to Penn Station.
| | | | A message from The City University of New York: When it comes to lifting up New York and building a strong, equitable workforce for the future, no one does it better than CUNY. With more than 2,800 world-class majors and programs, our 25 schools turn out thousands of graduates each year with the talent and drive to help your organization thrive. You can be part of our career-related programs focused on fields such as tech, healthcare, renewable energy, construction and marketing. So partner with us as your number one talent source. Mentor our students. Offer them internships. Hire them. Our city is evolving, and CUNY stands ready to meet the moment. Discover the nation’s largest urban public university system at cuny.edu/hirecuny and follow us on Twitter at @CUNY. | | | | | SOCIAL DATA BY DANIEL LIPPMAN | |
HAPPY BIRTHDAY: POLITICO’s Brad Dayspring … CNN’s Jim Sciutto and Mike Callahan … CNBC’s David Faber … Alina Cho … Murong Yang … David Lau
MAKING MOVES — Laura Rosenbury will be the next president of Barnard College. Rosenbury is the dean at the University of Florida’s law school. She starts in July. … Bolton-St. Johns’ Partners Teresa Gonzalez and Prisca Salazar-Rodriguez are launching Evolution Strategies NY (ESNY), a Latina-owned and operated firm that will offer strategic advising, campaign services and stakeholder/community engagement. Both will remain partners at BSJ. … Tucker Hart has been named senior communications manager at FanDuel. He most recently was senior communications manager for CBS News at Paramount. MEDIAWATCH — Dafna Linzer is stepping down as executive editor at POLITICO at the end of March. “In her time with us, Dafna has made important and lasting contributions to the publication — for which we are grateful,” Editor-in-Chief Matt Kaminski said in a newsroom email. Dafna writes: “This last year has been more rewarding than I could have imagined, bringing in great new talent, promoting so many outstanding POLITICOs across the newsroom to form a new leadership team and developing plans that will take the publication farther, faster into its next phase of life.” FOR YOUR RADAR — “Meet Sophia Narrett, the Artist Putting Love, Sex & Marriage Under the Microscope,” by Rachel Summer Small in W Magazine
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