Tuesday, March 14, 2023

Snow can't cool the budget battle

Presented by CVS Health: Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
Mar 14, 2023 View in browser
 
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By Anna Gronewold and Eleonora Francica

Presented by CVS Health

Session is canceled today due to the snowstorm clobbering Eastern New York and Western New England. A big chunk of New York is in a state of emergency, and Gov. Kathy Hochul says to stay home, cozy up and get a grip on your March Madness predictions.

But the Legislature alleges that a snow day won’t stop them from moving ahead on the budget work, whether they’re trapped in or outside of Albany. (The budget is due by April 1)

Both chambers are close to releasing their one-house proposals, which are just as malleable as Hochul’s executive budget in terms of final results later this month. However, the coming resolutions do give us an eye on where the discrepancies among their visions (the fights) might lie.

It’s looking like the Senate and Assembly have their own version of a broad housing plan for the state amid criticism from local leaders over Hochul’s proposal to mandate new housing in the New York City suburbs and upstate.

According to legislators and their aides, the Democratic majorities want to squelch the part of Hochul’s plan that would allow the state to override local zoning to meet certain goals. They want to instead lure municipalities into affordable housing development with a $500 million fund that would send dollars for meeting certain benchmarks.

The one-house budget proposals are also expected to rebuff Hochul's plan to expand the number of charter schools operating in the state, her attempt to ban menthol cigarettes and her suggested change to state's bail laws.

We don’t know yet which issues will make either Hochul or the Legislature really dig in at the bargaining table, but the governor told reporters Monday that an on-time budget, while preferable, isn’t her top priority when it comes to “the work of the people of New York State.”

Stay off the roads if you can help it!

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

WHERE’S KATHY? In Albany monitoring storm developments.

WHERE’S ERIC? Hosting a ceremony for New York City’s Hunger Heroes; signing legislation relating to mental health services, crisis management reforms to the criminal justice system and the payment of property tax arrears; and speaking at the New York County Lawyers Association’s annual gala reception and buffet dinner.

QUOTE OF THE DAY “I’m an enormous fan of working in city government.” — Molly Park, the acting commissioner of New York City’s Department of Social Services, talking about filling municipal jobs

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WHAT CITY HALL IS READING

NYCHA Rent Bailout Proposed for State Budget, With $466 Million Owed,” by THE CITY’s Greg B. Smith: “To level the playing field, this week the state Senate and Assembly are expected to propose a budget that includes an additional $389 million to cover at least some of the millions of dollars in rent arrears of public housing tenants in NYCHA and across the state, according to the bill’s sponsors, Sen. Brian Kavanagh and Assemblymember Grace Lee, both Democrats representing Lower Manhattan. It’s not entirely clear how much of that would go to tenants at NYCHA, the nation’s biggest housing authority.”

Port Authority opts for bus improvements to LaGuardia as panel officially kills Cuomo’s AirTrain idea,” by WNYC’s Stephen Nessen: “A project pushed by former Gov. Andrew Cuomo to build an $2.1 billion AirTrain to LaGuardia Airport is officially dead. After 17 months of deliberations, the Port Authority of New York and New Jersey convened an ‘expert panel’ on Monday that recommended beefing up bus service to the airport instead of building a rail link from Willets Point in Queens.”

NYC opening two new mega shelters for migrants as Brooklyn Cruise Terminal site closes this month,” by Daily News’ Chris Sommerfeldt: “The new sites, which will only house single men, are meant to replace the Humanitarian Emergency Response and Relief Center (HERRC) the administration has been operating out of a warehouse at the Brooklyn Cruise Terminal since late January.”

WATCH: A new pitch for New York City to be chosen as host city for the 2024 DNC convention, narrated by Whoopi Goldberg. “Welcome to New York! We've Been Waiting For You.

 

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WHAT ALBANY'S READING

Edward Cox elected to again lead state Republican Party,” by Newsday’s Michael Gormley: “The state Republican Committee on Monday unanimously elected Edward Cox to be its state chairman and Cox promised to turn the GOP’s November wins on Long Island into a statewide wave. … But Republicans still have a difficult road in a state dominated more than 2:1 by Democratic voters. The Long Island surge in November wasn’t duplicated statewide as Democrats continue to hold every statewide elected post and supermajorities in the Senate and Assembly. Nationally, a projected Republican wave in November gained only a small majority in the House and left the U.S. Senate in Democratic control.”

Here’s What the Collapse of Signature Bank Means for NY,” by THE CITY’s Greg David: “While the crisis over this past weekend will have no impact on the vast majority of New Yorkers, it could have worrisome ramifications for the city’s real estate market, where the bank was a major lender to developers and landlords, especially those that owned rent-regulated buildings.”

— “Cuomo campaign has lots of money in Signature Bank,” by City & State’s Jeff Coltin: “The former governor shouldn’t expect to lose any money though, even though the bank was taken over by the state of New York.”

FIRST IN PLAYBOOK: The state’s big unions are backing a bill from progressive Democrats that would make permanent the 2021 corporate tax bracket for businesses making over $5 million. Major labor leaders — including NYSUT, the state AFL-CIO and 1199SEIU — sent a letter to Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins last week urging the legislature to prioritize the legislation (S1980/A3690).

“At a time of record corporate profits, it’s right to make the biggest, most profitable corporations pay what they owe – including huge out-of-state and multinational corporations that have been driving price hikes for gas and food, like ExxonMobil, Tyson Foods, Nestlé and Unilever,” the letter reads. “By carrying out these reforms, New York can raise over seven billion dollars for investment in public programs and services to boost affordability and build prosperity for everyday New Yorkers, including our members.” — Anna

Juan Ardila accused of sexual assault,” by Queens Chronicle’s Sophie Krichevsky: “Assemblymember Juan Ardila (D-Maspeth) has been accused of allegedly sexually assaulting two women on the same night in 2015 … Asked about the allegations, Ardila said, ‘I don’t even know what this is.’”

#UpstateAmerica: Federal and local authorities have not figured out how to prevent the expensive bridge strikes at the notorious Glenridge Road bridge in Glenville, so the Times Union crowdsourced ideas.

 

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AROUND NEW YORK

— The New York State Troopers Police Benevolent Association removed its longtime political director Gordon Warnock amid the FBI probe into the organization's finances and business dealings.

— Sayfullo Saipov, who was convicted of murder and terrorism charges in the killing of eight people on the Hudson River Park bike path, avoided the death penalty in federal court in Manhattan.

— “Will John King stop SUNY from spiraling?"

— Want to get access to police body-camera footage or film an encounter with the NYPD? Here’s how.

— After student performance dropped across New York during the pandemic, schools should reexamine how they’re spending federal aid, according to a review from Tom DiNapoli, the state comptroller.

— Police in Suffolk County are taking a new approach to solving missing persons cases.

 

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SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Lily Adams Andrea Bozek of Big Dog Strategies … Allen Gannett Susan SlatteryJosh Walker

MAKING MOVES — Sharon Sewell-Fairman has been named the president and CEO of Women Creating Change. She most recently was CEO of the Workforce Professionals Training Institute. … Molly Kraus has been named political director of Eleanor’s Legacy. She most recently was campaign manager for Anna Kaplan’s New York state Senate campaign and has worked in politics and campaigns in New York and across the country. … Michael Greenwald, the global lead for digital assets and financial innovation at Amazon Web Services, has joined the CFTC’s technology advisory committee.

MEDIAWATCH — Lauren Mensch and Chris Russell have been named executive producers of “CNN This Morning,” with Mensch as showrunner. She most recently was EP of “CNN Newsroom.” Russell most recently was EP for NewsNation’s “On Balance with Leland Vittert.” … Matt Dixon is joining NBC as a senior national politics reporter. He was most recently Florida bureau chief for POLITICO.

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Real Estate


Signature’s fingerprints turn up across the real estate industry,” by Crain’s New York’s C.J. Hughes: “With the shutdown of Signature Bank, the city may have lost one of its most dependable sources of funding for real estate deals.”

City Taps Nonprofit Lawyers to Help Tackle Backlog of Rental Assistance Claims,” by THE CITY’s Safiyah Riddle: “The Legal Aid Society and Legal Services NYC are being authorized to help tenants facing eviction by processing rental assistance applications directly.”

 

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