Adams’ real budget crisis is here

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Sep 11, 2023 View in browser   By Jeff Coltin, Nick Reisman and Emily Ngo Presented by New York City Mayor Eric Adams gave a video address Saturday, Sept. 9, 2023, to discuss the city's fiscal challenges in the year ahead. | YouTube/New York City Office of the Mayor Nearly 15 percent?! The savings plan that Mayor Eric Adams threatened — er, announced — on Saturday seemed too big to believe. Five percent cuts, three times over the coming months, could mean closed fire stations, cut afterschool programs, trash in parks and days without libraries open. And that’s just early speculation. A hiring freeze means the ongoing staff shortages hurting city services won’t be solved either. “Every service in this city is going to be impacted, from child services to our seniors to our housing plan,” Adams said on PIX11 Sunday and added that migrant women and children will eventually have to be housed in congregate shelters, without private rooms. But Adams is also openly negotiating with both the state and federal governments, saying they alone have the power to stop this by helping the city with migrant costs. The letter to agencies should have been addressed “Dear Kathy Hochul and Chuck Schumer,” quipped a big player in the Adams administration. The announcement was “theater,” the official said, with a video and email to all city employees — quite a change from the previous private PEG letters. But Adams can’t entirely blame the cuts on asylum-seekers or the other levels of government not doing enough. Less than half of next year’s potential $14 billion budget gap has to do with that, the Citizens Budget Commission noted Sunday. The rest is because of new labor contracts, new initiatives and the failure to address fiscal cliffs sooner. Adams has talked a big game about efficiency, but his previous Programs to Eliminate the Gap were mostly one-time cuts on paper that did not meaningfully reduce spending. In a letter to agency leaders and a private Saturday morning meeting, Adams’ budget office talked about all the ways they planned to close the gap: – Cutting agency budgets. – Moving asylum-seekers out of city shelters quicker. – Implementing a near-total hiring freeze. – Putting a freeze on new initiatives and certain spending like out-of-town travel. – Limiting overtime spending in the NYPD and other uniformed agencies. – Dipping into the reserves. – Crossing fingers for a strong economy that brings in more tax revenue than expected. Not on the table, supposedly? Layoffs or tax hikes. Keeping the budget balanced for fiscal year 2025 that starts July 1 will be a high pressure test of Adams’ political strategy, but even more, a test of his management. Adams loves to joke: If being mayor is so hard, when does the hard part start? We finally may be here. IT’S MONDAY. Today is the 22nd anniversary of the 9/11 terrorist attacks. Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman. WHERE’S KATHY? Attending the 9/11 Remembrance Ceremony in Manhattan. WHERE’S ERIC? Appearing on WCBS’ 9/11 coverage, attending 9/11 ceremony, meeting with the speaker of the Austrian House of Representatives and then speaking at several 9/11 vigils. QUOTE OF THE DAY: “I do think that Mayor Adams needs to be primaried. I think someone has to do it.” — State Sen. Jessica Ramos on MSNBC, hedging on whether she herself will be a 2025 challenger by adding, “We’ll see who it is.” A message from Uber: Every Uber trip in New York City helps pay for public transit. The MTA gets $2.83 from a $25 Uber trip in Manhattan below 96th street.   ABOVE THE FOLD A bill set for approval by Gov. Kathy Hochul would help 9/11 victims be reminded of compensation options. | Mark Lennihan/AP Photo 9/11 ILLNESS NOTIFICATION: A proposal that’s being given the green light by Gov. Kathy Hochul could help more people stricken with Sept. 11-related illnesses receive support for their health care bills. The bill would require Lower Manhattan businesses in operation between September 2001 and May 2022 to notify past and current employees of their right to register and potentially be eligible for the Victim’s Compensation Fund and World Trade Center Health Program. The measure was approved unanimously in both chambers of the Legislature earlier this year. Hochul is expected to formally announce her approval of the law on Monday, the 22nd anniversary of the terrorist attacks. “Too many people may not be aware that there are benefit plans out there,” Assemblymember Nader Sayegh, a Westchester County Democrat who sponsored the bill, told Playbook. The challenge of notifying people who worked in and around the exposure zone is a daunting one. Many of the companies operating close to the World Trade Center are no longer in business; many people have moved away. Michael Barasch, a 9/11 legal advocate, acknowledged the notification push is difficult. The hope is to reach as many people as possible who may not be aware that they qualify for federal compensation. “It’s not going to reach everybody, let’s face it,” he said. “But let’s not let perfect get in the way of really good. This is going to save tens of thousands of people.” – Nick Reisman — The Office of the Chief Medical Examiner has identified the remains of two more victims of the September 11th terror attacks thanks to sensitive new DNA techniques. (CNN)   GO INSIDE THE WORLD’S BIGGEST DIPLOMATIC PLATFORM WITH UNGA PLAYBOOK: The 78th Session of the United Nations General Assembly will jam some of the world's most influential leaders into four city blocks in Manhattan. POLITICO's special edition UNGA Playbook will take you inside this important gathering starting Sept. 17 — revealing newsy nuggets throughout the week and insights into the most pressing issues facing global decision-makers today. Sign up for UNGA Playbook.     WHAT CITY HALL IS READING The Bronx's own Jennifer Lopez is one of the more recognizable Latino figures in New York, a new poll found. | Photo by Jordan Strauss/Invision/AP J.LO FOR MAYOR?: Nearly half of Latino voters in New York couldn’t — or didn’t want to — name an influential Latino leader in the state. Among those that could, Rep. Alexandria Ocasio-Cortez was the most frequently named, with 15 percent, followed by Rep. Adriano Espaillat with 7 percent, Mayor Eric Adams (who isn’t Latino) at 3 percent. And entertainer Jennifer Lopez at 2.5 percent. That’s according to a survey out Monday by BSP Research, commissioned by the Latino-owned Hamilton Campaign Network. “The main highlight is how little awareness Latinos have of elected officials in general. And Latino elected officials in particular,” the firm’s founding partner Luis Miranda said. He said the losing battle over getting Hector LaSalle on the state’s highest court was one motive for the poll, not to mention all the punditry about what New York Latinos want that isn’t backed by good data. And 90% want to see more Latinos appointed to high positions. Both Democrats and Republicans could do better to win over Latinos. Miranda said the poll shows: “It’s between benign neglect and hostility.” — Jeff Coltin More from the city: – A federal judge granted the Police Benevolent Association’s request that a settlement order on the NYPD’s response to the 2020 George Floyd protests be vacated, allowing the PBA to oppose the terms. (The New York Times) – Donald Trump’s name is off the city-owned Bronx golf course after he transferred the lease to Bally’s amid the firm’s bid for a casino license (New York Post) – The city’s Department of Correction keeps sniper rifles and accessories that are rarely used (Gothamist)   A message from Uber:   WHAT ALBANY'S READING A few portraits have been taken down at the state Capitol amid renovations. | Hans Pennink/AP Photo WHERE’S WASHINGTON?: Visitors and workers at the state Capitol may have noticed the first floor lobby on the State Street side of the building appears a little sparse. Portraits of George Washington and the Marquis de Lafayette have been taken down for conservation work as an extensive renovation of the building is also underway, according to the Office of General Services. The paintings are receiving conservation work as OGS is also restoring windows on the nearby Hawk Street Passage in the building to provide more natural light and views of the Capitol’s courtyard. The iconic 1813 portrait of Washington by Ezra Ames has hung in the state Capitol (and briefly the State Education Building) since the early 1900s. The Lafayette portrait by Charles Ingham was painted in 1822. Both are at the Williamstown Conservation Center and will be returned once work is done. — Nick Reisman More from Albany: — A multi-year error by a state agency led to some college students starting the new year without the money they expected. (Times Union) — Hochul signed a measure formally making Lunar New Year a school holiday in New York. (Newsday) — More schools in New York are providing free meals to students. (Spectrum News)   Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of the first episodes in September – click here.     AROUND NEW YORK — House Speaker Kevin McCarthy is courting Orthodox Jewish leaders in the Hudson Valley in the battle to control Congress (New York Post) — Rep. Elise Stefanik is injecting $12 million into a small dollar online fundraising push. (Daily Mail) — STAR checks for newer homeowners should be hitting mailboxes ahead of school tax bills (Democrat and Chronicle) A message from Uber: When you pay $25 for an Uber trip below 96th street in Manhattan, $5 goes to government fees including over half to the MTA MTA: $2.83 New York City: $.90 New York State: $.80 Black Car Fund: $.55   SOCIAL DATA BY DANIEL LIPPMAN HAPPY BIRTHDAY: Robin Givhan … Fox News’ Maria Bartiromo … Barbara Starr … former DHS Secretary Jeh Johnson … former Solicitor General Ted Olson … NBC’s Pete Breen … Andrew Sagarin … (was Sunday): Jonathan Soros … Bill Hamilton, executive editor of Celadon Books and an NYT, POLITICO and WaPo alum … Josh Nass ... Chuck Rosenberg … Richard Wolf … Hunter Walker … Fox News’ Trey Yingst … NYT’s Mara Gay … Jack Rivers … Charlie Szold … Amanda Cowie … Goldman Sachs alum Matthew Fried ... Lawrence I. Garbuz … … (was Saturday): Rep. Mike Lawler (R-N.Y.) … Matt Bai … Michael Greenwald … HuffPost’s Jonathan Cohn … David Freedlander … AP’s Matt Lee … Breitbart’s Matt Boyle … Lauren Hackett … Augusta Rhoades … Richard M. Joel … Ken Lieberthal (8-0) … Bridget Hagan of Blackstone … Aimee Steel Lubin of Holland & Knight … (was Friday): Howard Lorber … Daniel Wolpert ... Sam Waksal (h/t Jewish Insider) MAKING MOVES – Mark Dicus has been named VP of operations and planning of the Fifth Avenue Association. He most recently was the executive director of the SoHo Broadway Initiative. … Maxwell Young, Adams’ former communications director, has joined Pfizer, leading its executive, digital and policy communications. … Terence Kelly has been tapped to be West Point’s public affairs officer. He previously worked as the Army’s media relations director. … Heather McDevitt has been named chair of White & Case LLP. She has been a partner at the firm for more than two decades. MEDIAWATCH — Michael McAuliff is now a reporter at Modern Healthcare. McAuliff, a HuffPost and ABC News alum, most recently was a contributor for the N.Y. Daily News and also wrote frequently for KFF Health News. CLICKER – MSNBC: “Lies & charges from Trump to Santos: Aide details lies, indictment & rejected advice in exclusive” … Our earlier interview with Naysa Woomer  Real Estate — Lead pipes are more common in NYC’s Latino neighborhoods, a new study found (Gothamist)   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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