One-house budgets and done

Presented by the 5 Borough Housing Movement: Your afternoon must-read briefing informing the daily conversation among knowledgeable New Yorkers

Mar 16, 2023 View in browser   By Joseph Spector Presented by the 5 Borough Housing Movement The state Assembly and Senate debated their one-house budget resolutions on Thursday and passed them as the sides look toward the March 31 deadline for an on-time deal. | AP Photo The state Legislature on Thursday afternoon wrapped up their week in Albany — which included a snow day Tuesday — by passing their one-house budget resolutions, setting up the sides to negotiate a final deal with the hopes of having an on-time deal. As Senate Majority Leader Andrea Stewart-Cousins put it Wednesday: “This is the beginning of the middle.” Republicans ripped much of the one-house package put forth by the Democratic-led chambers, pointing to spending increases proposed that would be coupled with another round of income tax increases on the rich. Southern Tier Sen. Tom O’Mara questioned Senate Finance Committee chair Liz Krueger (D-Manhattan) over whether tax increases would lead to an exodus of wealthy New Yorkers. She countered that data shows that the number of millionaires continues to grow, saying people might earn their income in New York but also live elsewhere. “I certainly don't share your lack of concern over losing those high earners,” O’Mara, a Republican, responded. Krueger said the Senate — which along with the Assembly offered similar tax proposals — would raise tax revenue that would go to vital services for those in need, as well as pulling from the state’s reserves to boost spending. “The Senate believes that we have that much additional need in various critical programs — so we have projected a new model of a budget, as is our responsibility in each house, that does involve spending more money, but not necessarily raising new taxes,” Krueger explained. Lawmakers will return to Albany on Monday with two weeks to go to get an on-time budget by the March 31 deadline. They are scheduled to take a two-week break starting April 3, but there is a likelihood that budget talks will drag on into next month. For her part, Gov. Kathy Hochul on Thursday sounded undeterred after Democrats rejected some of her top priorities, such as changes to the state’s bail laws and requiring municipalities to build new housing. She has opposed higher taxes on the rich. “I've been called an iron fist in a velvet glove,” she said on FOX 5. “I have a lot of respect for the legislators. They are representing their views in their districts. I represent the entire state of New York, and we'll work it out.” IT’S THURSDAY: Happy March Madness — both as budget negotiations get underway and as the tournament hits Albany on Friday. Stay with us each afternoon as we keep you updated on the latest New York news in Albany, City Hall and beyond. A message from the 5 Borough Housing Movement: New York City is facing a housing supply crisis that’s harming outer borough communities of color. That’s why a diverse and growing coalition is calling on State lawmakers to support converting unused office space to new housing, create an incentive to maximize affordability in conversions, and lift the FAR cap to unlock more affordable housing. Learn more at https://5borohousing.org/   From the Capitol Gov. Kathy Hochul on Thursday seemed uninterested in a proposal to strip Madison Square Garden of its lucrative tax breaks. | Flickr HOCHUL AND MSG: Hochul appeared to throw cold water on a proposal in the Senate one-house plan that would revoke a lucrative tax break for Madison Square Garden that has survived for 40 years. Manhattan Sen. Brad Hoylman-Sigal has been vocal in his opposition of the tax break, which saves owner James Dolan $43 million each year. But the Assembly, amid an ongoing fight between the state and MSG over a whole host of matters, didn’t include the measure in its own one-house plan, and Hochul didn’t seem too interested in the idea. “I know how important the Garden is to the city,” she said on FOX 5. “This is an important asset. It's part of our identity. People love going there. I want to make sure they go forth for many years to come, and what's being proposed by a senator is certainly something we'll look at.” So would Hochul – whose campaign benefitted from MSG’s largesse – veto a bill to repeal the MSG break? “I don't predispose my position on issues like that. Same thing with the budget,” she responded. “Everything is very fluid. It's a really fluid situation, but right now, I know how important MSG is.”   A message from the 5 Borough Housing Movement:   From City Hall YOU’RE (NOT) FIRED: Manhattan Council Member Chris Marte is allowing a staffer who threatened a reporter to remain on the job, he said Thursday. Last month Steven Wong, a liaison to the Chinese community who has helped Marte fundraise, left expletive-laced voicemails on the phone of Sing Tao Daily reporter Lotus Chau, according to a rough translation of Cantonese she provided in a letter to Council Speaker Adrienne Adams. Wong was objecting to coverage of Marte’s Progressive Caucus pledge, which included a commitment to reducing the size and scope of the police department. Marte said Thursday that his staffer’s behavior was unacceptable, but not unforgivable: “There is usage of Cantonese slang curse words which are unprofessional and inappropriate. We do not find them as grounds for termination,” Marte said in his statement, adding that Wong and Chau have known each other for 20 years and a translation provided by the speaker’s office did not fully match the reporter’s. “While Steven uses curse words to describe a newspaper, the reporter, and political opponents, the recording does not demonstrate sexist behavior. I understand that some might disagree with my decision, and anticipate my political opponents will use this as an opportunity to attack me, my office, and Steven.” The comments toward a reporter by a City Council member staffer continues to draw criticism. | Mark Lennihan/AP Photo Chau was infuriated by Marte’s response. “I’m very disappointed about the so-called investigation,” Chau said in an interview. “And I’m so upset about the council member’s statement.” Chau said that she has no personal relationship with Wong. In a statement written on Facebook March 2, she wrote that her complaint was to deter bullying of reporters and that, if Wong apologized and the office admitted to wrongdoing, she did not believe he should be fired. However, Chau said Thursday that Marte’s response minimized Wong’s behavior and impugned her reputation as a journalist. “Marte has also completely mischaracterized my work as a reporter and diminished the consistent and continued harassment by official representatives of his office directed at me and other reporters, as ‘gossip,’” Chau wrote in a subsequent statement released Thursday. “Our sense of being bullied and harassed cannot continue to be suppressed by men and characterized as ‘slang’ or accepted as cultural behavior. This is unacceptable and backwards thinking.” Marte’s prediction about opponents quickly proved correct. “Christopher Marte should be ashamed of himself for keeping Steven Wong on the public payroll after Wong’s crude, sexist and threatening remarks he left on multiple voicemails to one of our city’s most respected reporters for a Chinese language newspaper,” Susan Lee, who is challenging Marte in this year’s Council elections, said in a statement. — Joe Anuta MOONLIGHTING: Council Speaker Adrienne Adams defended an employee who runs a political consulting firm — representing clients with business before the city like the United Federation of Teachers — while also working on the speaker’s central staff, as reported by the New York Post. The arrangement drew recriminations from a good government watchdog, but Adams said Thursday the arrangement was above board. “All indications are that this employee has been in compliance,” she said. “So this really isn’t an issue.” — Joe Anuta A message from the 5 Borough Housing Movement: TELL STATE LAWMAKERS: SUPPORT CONVERSIONS AND LIFT THE FAR CAP! A growing number of advocates and community groups are joining the push to convert New York City’s unused office space into affordable housing and lift the FAR cap. Supporters include:   ● Borough-based chambers of commerce and local business improvement districts ● Community boards and neighborhood-based non-profits ● Racial and social justice advocates More elected officials are joining the effort too, including State lawmakers, City Council members and members of Congress. See all of our supporters and recent announcements from elected officials at https://5borohousing.org/. We can’t afford to miss this opportunity to help address the City’s housing shortage. State lawmakers must act now to support conversions, create an incentive for affordability and lift the FAR cap. If State lawmakers fail to act, they will be failing the New Yorkers who are relying on Albany for answers to our housing supply crisis. Learn more at https://5borohousing.org/   On the beats RIKERS ISLAND: Mayor Eric Adams is facing increased pressure from local lawmakers to close the Rikers Island jail complex in 2027, as required by a city law signed by his predecessor. Several top lawmakers, including Council Speaker Adrienne Adams (no relation to the mayor) and city Comptroller Brad Lander, joined advocates outside of City Hall on Thursday to emphasize they will not accept any delays in shuttering Rikers, one of the country’s most notoriously violent jails. The show of support comes after the city published a notice indicating it may miss the deadline by two years, POLITICO first reported. The jail is supposed to be replaced with four borough-based jails as of August 2027, but construction on the Brooklyn complex could last through 2029. “This is the only plan that serves our city and the only one that this Council will be pursuing,” said Adams, the Council speaker. A City Hall spokesperson told POLITICO earlier this week that the original timeline and budget for the project were unrealistic and the Brooklyn facility’s completion was affected by pandemic-related disruptions. — Danielle Muoio Dunn VAPORIZERS REJECTED: The state's utility regulator denied — for now — a petition from National Grid to recover costs of new gas infrastructure in Brooklyn that state staff and an independent consultant determined is not immediately needed to meet gas demand on the coldest winter days. The Public Service Commission on Thursday said it will allow National Grid to recover design costs of $10 million for two new proposed LNG vaporizers in Brooklyn, but did not sign off on the full cost of the project — which means Grid will likely not move forward. The gas utility serving Long Island and portions of New York City has said the project is needed to meet peak demand in the near term, but an independent consultant review found it would not be needed until the winter of 2028-29. The commission agreed with the consultant’s conclusion. The commission, which set up the process to review Grid’s gas infrastructure proposals in its August 2021 rate hike order for the utility, did not rule out the company returning to request approval for the project at its Thursday session. The decision is based on gas demand forecasts that are inherently uncertain, on other supply sources including trucked-in gas and peaking contracts being available and on the success of National Grid’s programs to reduce gas usage. “Ultimately, we're still using more natural gas year over year,” said Public Service Commission Chair Rory Christian. “If this need continues to grow at the pace forecasted, we could be looking at this project again.” — Marie J. French EDUCATION: Teach NYS — a nonpartisan group within the Orthodox Union (an Orthodox Jewish organization) that advocates on behalf of nonpublic schools — is launching a six-figure paid media ad buy in support of legislation that would create a revolving fund to offer loans to eligible private schools that support students with disabilities who have pending Carter cases. Parents of students with disabilities can enroll their child in a private school and seek tuition payments from the city if they can demonstrate that public schools can’t fulfill their child’s needs via a legal action known as a "Carter case." Teach NYS is activating its members and partners to support the bill, which Council Member Justin Brannan is introducing, and is preparing a six-figure cable television (NY1 and other stations) and digital media campaign via geofencing, social media and online placements to encourage Council members to get the bill passed. They have made reservations to air the ads starting in the next 10 days. “Finally, there is relief in sight for a problem that has plagued our education system for too many years,” Maury Litwack of Teach NYS, said in a statement. “It’s been heartbreaking that bureaucratic delays are hindering schools’ ability to serve students with disabilities. We are activating our members and partners to support this bill - it’s a major first step in shattering the logjam and giving every student in New York the opportunity to thrive.” Teach NYS is launching it now and is planning to announce support from independent schools —Jewish, Catholic, Muslim and non-denominational — in the days and weeks ahead. The legislation would require the Department of Education to create a revolving fund to provide loans to eligible private schools that support students with disabilities who have pending Carter cases. The loans would be for a term of two years and no interest would be charged on the condition that the loans are repaid promptly. — Madina Touré Around New York — A New York cannabis coalition filed a complaint today in Albany County Supreme Court against state regulators and their slowness in opening up licensing for all retail dispensaries. (Upstate New York) — Amazon is preparing to land in Hamburg two years after receiving tax breaks for its warehouse, which has been empty the whole time. (Buffalo News) — A just-released audit finds that $9.4 billion of federal money to help New Yorkers with housing costs was not used. (WNYC) — Pregnant women have a higher risk of death by Covid-19. (The New York Times)   Follow us on Twitter Anna Gronewold @annagronewold Joseph Spector @JoeSpectorNY   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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