Wednesday, April 26, 2023

Here comes Budget No. 2

Presented by Resorts World New York City: Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
Apr 26, 2023 View in browser
 
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By Joe Anuta, Anna Gronewold and Zachary Schermele

Presented by Resorts World New York City

Mayor Eric Adams speaks beside a chart labeled

Mayor Eric Adams and elected officials urged the Biden administration to immediately enhance paths to work authorization for asylum-seekers currently in the U.S. during a news conference at City Hall in Manhattan on April 19, 2023. | Ed Reed/Mayoral Photography Office

The state budget has now been mired in negotiations long enough to bleed into New York City’s stage time. But that’s not stopping Mayor Eric Adams from releasing a spending plan of his own today.

The mayor’s executive budget is the last update of the upcoming spending plan before a final product must be ratified by the City Council July 1, the start of the fiscal year.

What we know: A deal has been percolating in Albany that would require the city to pay $150 annually to the Metropolitan Transportation Authority — a much smaller tribute than the $500 million initially floated by Gov. Kathy Hochul. Legislative leaders are also looking to chip in $1 billion to the city’s cost of providing services to migrants.

What we don’t know: Whether the city will reflect any of this in its spending plan that comes out today.

While executive budgets typically contain more mayoral priorities than previous iterations of the financial plan, Adams has spent months preaching the gospel of fiscal prudence in the face of $4.3 billion in asylum seeker costs and the possibility of an economic downturn. With that in mind, he has mandated several rounds of agency budget cuts, and he is likely to argue again today that the city needs a fiscally prudent executive at the helm. He will probably also mention the city’s bond rating. Again.

The administration’s savings plans contain plenty of fiscal sleight-of-hand like refinancing debt or recognizing underspending. The city often budgets a certain amount for snow cleanup, for example, but fails to spend the full amount during mild winters. Presto! Savings.

However, Team Adams appears to be cutting into actual services in a few areas. Public libraries have said they may have to cut weekend hours, and the Department of Education is curtailing a planned expansion of 3-K seats.

Lawmakers have seized on these potential reductions. And because today’s spending plan will kick off another round of budget oversight hearings at the City Council, members will have a stage and two months to push back against the mayor’s plan.

The main contours of the Council’s approach have been apparent for weeks: They have argued that the city will take in more revenue than expected this year. And with that in mind, they’ve urged Adams to undo some of the cuts. And since there will be some leftovers — at least in the Council’s rosier predictions — why not fund some new stuff, too?

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

WHERE’S KATHY? In New York City to give a speech at the Staten Island Economic Development Corporation’s conference.

WHERE’S ERIC? In New York City appearing on NY1 before briefing city officials — the City Council speaker, the comptroller, the public advocate, then the full Council — ahead of releasing his executive budget. Then he’ll hold a Q&A on the budget. In the evening, he’ll speak at the David Dinkins Leadership and Public Policy Forum at Columbia University, and later at a flag-raising ceremony for Israel.

QUOTE OF THE DAY: “I’m like an embryo in Congress.” — Rep. Ritchie Torres, 35, at a Tuesday event hosted by The Association for a Better New York, when asked about the median age of the legislative chamber. He also faulted the party for not setting term limits for committee chairs, which he said allows lawmakers to “feel they have a right to die with their gavel.”

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Resorts World is a partner with purpose we can trust -- @ResortsWorldNYC has provided job training programs, top industry wages to workers and support for union employees through the pandemic. Since its opening in 2011, Resorts World NYC has generated more than $3.7 billion in revenue for the state’s lottery education fund, helping to finance high-quality programming for students throughout NY.

 
What City Hall's reading

N.Y.C. Officials Tangle With State Over Sleep Ban at Homeless Centers,” by The New York Times’ Dana Rubenstein: “The emails, released by the state in accordance with its Freedom of Information Law, point to widespread frustration, including from the state, over the Adams administration’s efforts to ban sleeping at the centers. The emails also highlight the ongoing mystery surrounding what prompted the ban in the first place. ‘To this day we don’t know,’ said Jamie Powlovich, executive director of the Coalition for Homeless Youth.”

New York’s affordability crisis worsens as half of households can’t make ends meet, study finds,” by Crain’s New York Business’s Nick Garber: “Half the city’s households do not make enough money to meet their basic needs, a new milestone in the city’s affordability crisis, according to a report released [Tuesday]. That 50% figure comes from the ‘true cost of living’ report by the Fund for New York City and the United Way of New York City.”

NYC housing big Jasmine Blake named new lead czar,” by New York Post’s Nolan Hicks: “A top city housing official has been appointed the Big Apple’s new czar in charge of getting lead out of homes, the Adams administration said Tuesday. Jasmine Blake’s position is similar to the one once held by former Sanitation Commissioner Kathryn Garcia — now a top aide to Gov. Kathy Hochul — that was created by then-Mayor Bill de Blasio as the Housing Authority was consumed by lead scandals and resulting federal probes.”

Adams mocks ‘digidog’ critics, who remain skeptical of emergency response K9,” by Daily News’ Michael Gartland: “The mayor, who was joined by FDNY Commissioner Laura Kavanagh and other top city officials, appeared at the fire department’s Randall’s Island training academy for a demonstration of the robo-dog and used the event to drive home his support of it and other new technologies the city is now employing. ‘We rolled out similar technology a few weeks earlier in Times Square. Some people called them toys,’ Adams said of the city’s announcement two weeks ago. ‘This is not play time. This is real time.’”

As New York Boosts Tax Breaks for Movies, Some Critics Pan the Program,” by The New York Times’ Dana Rubinstein and Nicholas Fandos: “But budget watchdogs and economists who have studied programs like New York’s take a more skeptical view about whether they actually have the economic impact politicians and industry representatives claim.”

NEWS YOU SHOULD USE: How to Throw a Block Party in New York City, by THE CITY’s Divya Murthy

 

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WHAT ALBANY'S READING

“‘I took the shot’ on housing plan Hochul says as budget deal nears,” by Times Union’s Joshua Solomon and Raga Justin: “The state budget is nearly a month late but lawmakers are nearing an end to their negotiations without Gov. Kathy Hochul’s top priority — a comprehensive housing plan that set a goal to build 800,000 new units. That goal would have doubled the new units built over the next decade, which the governor’s team believed would have a trickle-down effect in alleviating the housing crisis and stemming New York’s nation-leading population decline. The governor’s office had previously declined to publicly acknowledge the loss, despite wide-ranging news reports stating the reality.”

— “Discontent among progressives swirl over $17 New York minimum wage plan,” by Spectrum’s Nick Reisman

Why 3 Liberal New York D.A.s Want to Change a Law Backed by Progressives,” by The New York Times’ Jonah E. Bromwich, Hurubie Meko and Grace Ashford: “Ms. Hochul, as well as New York City’s mayor, Eric Adams, have long sought to change the bail law, and that shift, though contentious, was expected by progressive lawmakers and public defenders. But the change to the law requiring prosecutors to hand over case material — which is known as discovery — was a surprise. It was spearheaded by a trio of prosecutors who say they are in favor of criminal justice reform: the Manhattan district attorney, Alvin L. Bragg; the Bronx district attorney, Darcel Clark; and the Brooklyn district attorney, Eric Gonzalez.”

Cuomo Sues To Halt Renewed NY Ethics Case On $5M Deal,” by Law 360’s Frank G. Runyeon: “Former Gov. Andrew Cuomo filed suit against the New York state ethics commission amid a looming proceeding over renewed charges of self-dealing related to the governor's $5 million pandemic book deal, calling the agency's very existence a violation of the separation of powers.”

— Or as WNYC’s Jon Campbell put it: “Andrew Cuomo is making the case that the new state ethics board — which replaced the old one, which was frequently criticized for its close ties to Andrew Cuomo — is **too independent**.”

#UpstateAmerica: Would you pay $6 for a PB&J at Indian Castle Service Area? How about $2.35 for two bites of cheese? Upstate’s own overpriced sandwich spotted by Times Union’s Josh Solomon.

 

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TRUMP'S NEW YORK


Trial opens in E. Jean Carroll’s rape lawsuit against Trump,” by The Associated Press’ Larry Neumeister and Jennifer Peltz: “E. Jean Carroll will testify that what unfolded in a few minutes in a fitting room in 1996 ‘would change her life forever,’ one of her lawyers, Shawn Crowley, said in an opening statement. ‘Filled with fear and shame, she kept silent for decades. Eventually, though, silence became impossible,’ Crowley said…Trump lawyer Joe Tacopina painted her story as wildly implausible and short of evidence, and described it as ‘an affront to justice.’ He accused her of pursuing the case for money, status and political reasons. ‘It all comes down to: Do you believe the unbelievable?’ Tacopina told the six-man, three-woman jury.”

FROM THE DELEGATION


Democratic Leader Hakeem Jeffries To Spearhead Effort To Flip New York House Seats,” by HuffPost’s Daniel Marans: “Although Jeffries’ initiative, which is still being finalized, would operate inside the New York State Democratic Party, its very creation reflects top Democrats’ concerns that the state party, in its current form, is not equipped to become a central node in Democrats’ campaign to retake the House. ‘You need someone to quarterback the development of the infrastructure, a message and a brand to create an environment in which Democrats can win,’ said a New York City-based Democratic consultant who knows about the initiative and requested anonymity to protect professional relationships. ‘That quarterback is not going to be the New York State Democratic Party.’”

 

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AROUND NEW YORK


— The U.S. Commerce Department released details on a new federal computer chip manufacturing research and development center that could potentially be built in Albany.

— A school bus driver in Western New York has been fired after threatening to shoot students on the bus last week.

— A network of New Yorkers living with mental illness want 988 – a crisis hotline – to replace 911 as the city’s default system for reporting mental health emergencies.

— A residency challenge to India Walton’s Buffalo Common Council bid has been dismissed.

— “Is growing your own marijuana at home illegal in NY? It’s complicated.”

SOCIAL DATA BY DANIEL LIPPMAN


HAPPY BIRTHDAY: Former first lady Melania Trump Jonathan Rauch … NBCUniversal’s Phil Tahtakran … CNN’s Jessica SchneiderJackson RichmanColin WilhelmDomenico Montanaro Laura Kramarz Jonathan Adashek

WELCOME TO THE WORLD — Newsha Ghaeli, president and cofounder of Biobot Analytics, and Dylan Enright, an MPA candidate at Columbia SIPA, on April 12 welcomed River Ghaeli Enright. Pic Another pic

WHAT WALL STREET IS READING — “These Online Detectives Have Raised $300 Million to Keep Lies From Triggering the Next Bank Run," by Bloomberg’s Margi Murphy: "The Silicon Valley Bank crisis shows how panic spreads. Companies like Alethea and Graphika are using AI software to fight disinformation.”

A message from Resorts World New York City:

Resorts World is a partner with purpose we can trust -- @ResortsWorldNYC has provided job training programs, top industry wages to workers and support for union employees through the pandemic. Since its opening in 2011, Resorts World NYC has generated more than $3.7 billion in revenue for the state’s lottery education fund, helping to finance high-quality programming for students throughout NY.

 
Real Estate

A Bleak Outlook for Manhattan’s Office Space May Signal a Bigger Problem,” by The New York Times’ Matthew Haag: “Rapidly rising interest rates have intensified concerns that the New York City office market, the largest in the country and a pillar of the city’s economy, could be at grave risk. That one-two punch could be worse than anything corporate landlords have experienced before, experts on the sector say, leading major banks and real estate analysts in recent weeks to warn that languishing properties along with falling property values and higher borrowing costs could increase the odds of a recession nationally and a budget crisis for the city.”

 

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