A budget power flex?

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Apr 09, 2024 View in browser   By Nick Reisman, Jeff Coltin and Emily Ngo Presented by Google With help from Shawn Ness The question remains whether Gov. Kathy Hochul will use her "nuclear option" to get her priorities in the state budget. | Evan Vucci/AP NO NUCLEAR OPTION: An impasse remains over the state budget as Gov. Kathy Hochul and top Democrats are at odds over housing, Medicaid and addressing retail theft. For now, don’t expect Hochul to use what would amount to a nuclear option to get appropriations bills over the finish line as the spending negotiations stretch into their second week since the start of the new fiscal year. Yet, the possibility to jam the Legislature by putting her priorities in the extenders is indeed there — if she wants to use it. The tactic was first pioneered in 2010 by then-Gov. David Paterson when he sent lawmakers large segments of his preferred spending priorities as the budget remained unresolved until August of that year. “She has a tremendous amount of power she could use,” E.J. McMahon, a senior fellow at the Empire Center think tank, said. This route does include some tradeoffs for the governor: She wouldn’t be able to force a vote on policy-specific measures, like an effort to boost penalties for assaulting a retail worker. And there’s the danger of lawmakers adding on line-item spending, which she would likely veto and set up an override showdown with the supermajority-led chambers. Still, the thorniest aspects of the spending negotiations could be resolved by Hochul including her fiscal priorities in an extender bill and forcing an up-or-down vote. “She can actually say, ‘Here’s the state operations bill. If you want to continue government, my extender is the state ops bill.’ She could give them a state ops bill that she has amended herself,” McMahon said. Lawmakers have approved three budget extenders so far this year, and those bills are for stop-gap funding such as fulfilling state employee payroll. Nevertheless, Paterson’s use of the extender to end what had been an excruciatingly long budget dance 14 years ago was considered a high-water mark for gubernatorial power. His successor, Andrew Cuomo, revered getting a budget accomplished by April 1, though never used Paterson’s tactic during his decade in office. But so far, Hochul has shown no indication she wants to use power that way. The governor touted to reporters last Thursday the positive dynamic between herself, Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins. “I’m really proud of the relationships we’ve developed over the years,” she said. And Democratic lawmakers told Playbook the negotiations, while drawn out, are not heated. “These are tough negotiations, but they’re amicable,” Senate Health Committee Chair Gustavo Rivera said. Deputy Senate Majority Leader Mike Gianaris added, “That’s not been the tone of the discussions, which like I’ve said have been very respectful.” Lawmakers, however, acknowledge they are butting up against the April calendar. The Legislature is not scheduled to be in Albany for two weeks starting April 22 when Passover begins. That makes next week an especially crucial lane to get a deal in place. “We’re just trying to get through it as quickly as we can,” Gianaris said. — Nick Reisman HAPPY TUESDAY: Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman.   A message from Google: New York businesses count on digital ads. Millions of business owners across the U.S. use digital ads to grow their businesses, including thousands right here in New York. It’s how they reach the right customers, effectively and affordably. Supporting digital ads supports the businesses that count on them, like GLO Studio in Manhattan and Bickster Apps in Saratoga Springs. Get involved.   DO WE HAVE A BUDGET YET? No. WHERE’S KATHY? In Albany and appearing as a guest on MSNBC’s “Morning Joe.” WHERE’S ERIC? Holding a media availability, hosting a roundtable discussion with Ecuadorian community leaders and hosting a reception to celebrate Greek heritage. QUOTE OF THE DAY: “Reminder that the guy who stared directly into the sun during a solar eclipse also endorsed my opponent.” — NY-04 Democratic contender Laura Gillen, on X, on Donald Trump’s endorsement of her opponent Republican Rep. Anthony D’Esposito. ABOVE THE FOLD Mayor Eric Adams hired a lawyer who has previously worked for Jay-Z and Elon Musk to fight his allegations of sexual assault and professional retaliation. | John Minchillo/AP LAWYERING UP: What do Elon Musk, Jay-Z and Mayor Eric Adams have in common? They share the same lawyer. But unlike the billionaires, Adams won’t be paying. The city hired lawyer-to-the-stars Alex Spiro to help defend the mayor and the city against the lawsuit claiming sexual assault and professional retaliation in 1993. That means Adams won’t only be getting free representation from city lawyers — a decision by Corporation Counsel Syliva Hinds-Radix which raised some eyebrows last month — but also from a top private lawyer. It’s also a sign the city is taking the case seriously, lawyers told POLITICO Monday, even after Adams’ aides disparaged the woman who filed it for her litigious ways. “My job is to run the city, and the corp counsel is going to run the legal apparatus. It’s their plan. I follow the rules of my attorneys. Let them decide,” Adams said on Monday, brushing off a question about the reason for the hire. That’ll be a top question for Hinds-Radix, Adams and other City Hall officials at the weekly “off-topic” briefing today. But Adams has other legal questions to answer after the Times reported federal authorities are investigating whether Adams got free flight upgrades from Turkish Airlines in a potential bribery scheme. And the Daily News reported that Adams’ outside lawyers started working on his defense the very same day that his campaign fundraiser and a government staffer had their homes raided by the FBI. The lawyers there, including Adams’ former counsel Brendan McGuire, are billing $975 an hour. While a city spokesperson says taxpayers are getting a deal for Spiro — just $250 an hour. — Jeff Coltin   A message from Google:   CITY HALL: THE LATEST Hillary Clinton is rallying with City Council members against cuts to child care and early education programs. | Cliff Owen/AP CLINTON VS. CUTS: “No cuts to libraries!” read a sign that Hillary Clinton held in an X post two weeks ago when she joined those pushing back on Adams’ budget reductions. The former Democratic presidential nominee today at Columbia University will talk about another set of cuts, focused on child care and early childhood education programs. She’ll be joined by nine City Council members (who are currently negotiating the budget with Adams) at the panel hosted by the Institute of Global Politics Women’s Initiative and SIPA’s Urban and Social Policy Concentration. Adams has rolled back some rounds of cuts but said the city has had to make difficult decisions amid the cost of the migrant crisis and sunsetting Covid-19 funds. — Emily Ngo TAX DAY COMETH: The city is now giving its 300,000 employees guidance on how to get an essential tax form — after the cybersecurity team limited access to the payroll website following a phishing attack. That site, NYCAPS, now has a message telling current and former employees how to get their W2s. That’s after POLITICO broke the news that the city cut most access to the site with no explanation to the public workforce for more than a week. Taxes are due in a week — unless you’re like Adams and request a six-month extension. A note on the downed home page says the city is “working diligently to restore full access to (the site) as soon as possible.” — Jeff Coltin More from the city: — Former Mayor Mike Bloomberg’s housing policy has faced a harsh reassessment as the city’s affordable housing shortage worsens. (Crain’s) — Top NYPD officials orchestrated a smear campaign of a police critic using confidential details of her rape, a new lawsuit alleges. (THE CITY) — “The Manhattan Project of municipal government” is City Sanitation Commissioner Jessica Tisch’s war on rats and trash bags. (The New Yorker) NEW FROM PLANET ALBANY A new report highlights the troubles lawyers have with artificial intelligence tools. | Kirill Kudryatsev/AFP/Getty Images ROBOLAWYER: State lawmakers and Hochul are grappling with how to regulate artificial intelligence. So are attorneys. A report released Monday by the New York State Bar Association highlighted the risks lawyers face with using AI tools. The report recommended lawyers inform clients when AI is being used to help compile cases. “AI can enhance the delivery of legal services. It obviously has enormous potential because it can already draft documents, conduct research, predict outcomes, and help with case management,” Bar Association President Richard Lewis said. “However, we have an obligation as attorneys to be aware of the potential consequences from its misuse that can endanger privacy and attorney-client privilege.” State officials this year are reviewing how best to use AI as a potential economic development opportunity. But Democrats in the Legislature have raised questions with Hochul’s proposed Empire AI plan and the spending attached to it — to the tune of $400 million. — Nick Reisman More from Albany: — An increasingly left-leaning state Legislature is holding up Hochul’s budget requests. (New York Times) — Hochul appears to be on board with key parts of NY ‘Good Cause’ rent-control bill. (New York Post) — A proposal to require consent before drug testing someone during pregnancy is meeting resistance. (Buffalo News) NEW YORK STATE OF MIND — Lawmakers are making a final push to get the NY HEAT Act in the state budget. (State of Politics) — The Bronx District Attorney wants to get a state-accredited rape crisis center in hospitals. (Daily News) — Nearly 36,000 drivers had their licenses suspended due to temporary measures taken during the pandemic. (Newsday)   A message from Google: “Digital ads are a key part of our success,” says Michael from Frederick Benjamin Grooming in Manhattan. “We can instantly see what’s working and what’s not. We can pivot on targeting. We can pivot on creative.” Like many small businesses across the state, Frederick Benjamin Grooming counts on digital ads to help a specific kind of consumer discover their unique offerings. “Without my ads, men with textured hair wouldn’t discover brands like ours.” Hear more stories about how local businesses count on digital ads. Learn more.   SOCIAL DATA Edited by Daniel Lippman MAKING MOVES: Carla Amundaray has joined the Levinson Group as a senior director. She was most recently a vice president at Edelman. … Cardiff Garcia is joining the Economic Innovation Group as editorial director, and EIG is acquiring the New Bazaar economics podcast, for which Garcia is the host and co-creator. HAPPY BIRTHDAY: MSNBC’s Joe Scarborough, Alex Witt and Jeff Kepnes … Jeff Zucker … Global Strategy Group’s Jon Silvan … BCW’s James Jackson … Ross Wallenstein of Wall to Wall Communications … Cynthia Nixon … Miranda Green … Ali Aslan … Brittany Uter … (WAS MONDAY): Jason Reinin … (WAS SATURDAY): journalist Aaron Short. YOUR NEW YORK NUMBER OF THE DAY $83 million The amount paid in legal claims against the NYPD that were settled before going to trial by Comptroller Brad Lander’s office, across 3,219 cases, the Daily News reports.   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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