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A state budget cheat sheet

Your afternoon must-read briefing informing the daily conversation among knowledgeable New Yorkers
Apr 15, 2024 View in browser
 
POLITICO New York Playbook PM

By Jason Beeferman

With help from Irie Sentner

New from New York

Happening now:

  • Where budget talks stand now.
  • The latest rallies at the state Capitol.
  • Live from the Trump trial.
  • Kennedy’s farewell speech.

DAYS THE BUDGET IS LATE: 15

Gov. Kathy Hochul gave remarks at the National Action Network Convention on April 10, 2024, in New York City.

Gov. Kathy Hochul and lawmakers are hoping to reach a budget deal this week after missing the April 1 deadline. | Don Pollard/Office of Governor Kathy Hochul

YOUR STATE BUDGET CHEAT SHEET: The talk of stagnated budget negotiations and Albany gridlock has evaporated instantly. Things are heating up fast on Planet Albany, with lawmakers conferencing multiple times today (including an evening meeting) as they hash out the final details of a state budget. Gov. Kathy Hochul is scheduled to hold a press conference on the budget today at 4:45 p.m. in the Capitol’s Red Room. Meanwhile, lawmakers are set to pass a budget extender until Thursday.

The situation remains fluid, and any agreement could blow up at any time — so here’s a cheat sheet to let you know where things stand as of Monday afternoon. And as a bonus, we’ve added a dose of cautionary wisdom from state Sen. Gustavo Rivera:

“It ain’t over ‘till the fat lady sings,” the Bronx Democrat said. “I know that I’m not a lady, I might be a little chunky, and I haven’t sung yet, so, uh, it is not done until it’s done.”

HOUSING: The proposal currently on the table would cap rent increases at 5 percent plus inflation, or a maximum of 10 percent. Higher rent increases tied to apartment improvements would also be adopted. “Good Cause” eviction protections, long sought by tenant activists, would be limited to units rented below 200 percent of the fair market rent. It would also not apply to buildings built in the last 30 years.

MEDICAID TAX: Lawmakers and the governor are continuing to confidently pursue a tax on managed care organizations expected to generate about $4 billion for Medicaid and made possible by a loophole in federal law. However, the exact amount of the revenue and the timing for New York to receive it both remain in flux, Rivera said in a Max Politics interview Friday.

PENSIONS: Public labor unions are likely to see their pensions get a boost. Under the current proposal, a worker’s final average salary for retirement would be the average of their last three years, instead of the current system that averages the last five salaried years.

WEED: A tentative plan combines the proposals Hochul and Assemblymember Jenifer Rajkumar to shut down illicit cannabis shops. The plan would empower the state’s Office of Cannabis Management to shut down illegal shops, but would also enable municipalities to opt-in and utilize local authorities to close them.

HATE CRIMES AND RETAIL THEFT: A current proposal includes more money for State Police to combat retail theft and a tax break for businesses to enhance security. The proposal also includes increased penalties for assaulting retail workers. The state is also expected to expand the number of violent crimes that could be charged as hate crimes.

MAYORAL CONTROL: Extending the mayor’s control of New York City schools is back on the table after Senate Majority Leader Andrea Stewart-Cousins initially said it would be out of the budget. Lawmakers are now considering extending the policy, but the details have not been made clear yet.

TAX BREAKS, CONSTRUCTION WAGES: A new version of the now-expired 421a tax break for new city housing construction is set to be revamped as “485x.” The new proposal is supported by construction labor unions for providing enhanced wage protections and benefits.

MORE ON MEDICAID: In a cost-saving effort, the governor is continuing to push for a plan that would eliminate most of the fiscal intermediaries that handle billing, payroll and other administrative tasks for Medicaid's Consumer Directed Personal Assistance Program, or CDPAP. The program enables chronically ill or disabled New Yorkers to hire their own caregivers. Lawmakers have been pushing back on the governor’s plan to consolidate the program under one statewide fiscal intermediary. The fate of that effort is up in the air right now.

ENERGY: The status of NY HEAT Act or other compromises on limiting subsidies on gas infrastructure is not yet resolved. — Jason Beeferman

 

POLITICO IS BACK AT THE 2024 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO will again be your eyes and ears at the 27th Annual Milken Institute Global Conference in Los Angeles from May 5-8 with exclusive, daily, reporting in our Global Playbook newsletter. Suzanne Lynch will be on the ground covering the biggest moments, behind-the-scenes buzz and on-stage insights from global leaders in health, finance, tech, philanthropy and beyond. Get a front-row seat to where the most interesting minds and top global leaders confront the world’s most pressing and complex challenges — subscribe today.

 
 
From the Capitol

Andrew Gounardes on New York for All

State Sen. Andrew Gounardes took issue with what he called “dangerous” rhetoric that is used to dehumanize immigrants and divide New Yorkers. | Shawn Ness/POLITICO

“NEW YORK FOR ALL”: As budget negotiations appear like they are headed toward conclusion this week, some lawmakers are still trying to make headway on one of the less-discussed bills: the New York for All Act.

The bill, sponsored by state Sen. Andrew Gounardes and Assemblymember Karines Reyes, both Democrats, would prohibit the disclosure of immigration status from law enforcement to federal officials. Republicans, meanwhile, have their own bill to do just the opposite, as has been previously reported by Playbook.

“Let me tell you, as a guy from Buffalo, this isn’t only a New York City argument. This is touching every county, every city in this state,” Assemblymember Jonathan Rivera, a Democrat, said. “That is why we in the Legislature are going to lead, no matter who the governor is. We are going to legislate this right, and we’re gonna do it for every person who has fought to be here.”

Gounardes took issue with what he called “dangerous” rhetoric that is used to dehumanize immigrants and divide New Yorkers, which he said makes the state less safe.

“We know that these messages are false. The truth is that immigrants are a central part and at the very core of our state’s history,” Gounardes said. “And true public safety comes from policies that invest in our communities and keep families together. Whether you were born in Bogota or Brooklyn, Beirut or Buffalo. You deserve to have the freedom of movement without fear or panic.” — Shawn Ness

RETIREE HEALTH CARE: Dozens of advocates rallied to drum up support for a bill that would prohibit public employers from lessening their contributions to health insurance coverage or diminishing health care benefits provided to retirees and their dependents below the level as of Dec. 31, 2021.

“We’ve worked so hard for a decent wage, decent health care for a lot of years with our unions, and we’ll make sure we get this done,” state Sen. Mario Mattera, a Long Island Republican, said.

The bill’s supporters say some localities’ efforts to transfer public-sector retirees to different health insurance programs may see reduced access to medical care.

State Sen. Steven Rhoads, another Long Island Republican, said many people get into public service knowing the benefits that come with many of those jobs.

“As a government, we fulfill the promises that we make to our employees. I view [this bill] as us making a commitment to the time where [people] were hired, to the benefits that [people] that they retired with,” Rhoads said. “That was the agreement we made.” — Shawn Ness

 

Join POLITICO on Wednesday, April 17 at 6:00 p.m. ET for networking over cocktails and passed hors d'oeuvres. Don't miss your chance to meet POLITICO's New York editorial team and learn more about their coverage of current affairs in Albany. RSVP here.

 
 
FROM CITY HALL

Mayor Eric Adams speaks at a lectern during a news conference.

“Home is your safety, and for far too many, they are not experiencing that safety,” said Mayor Eric Adams, adding that he experienced domestic violence at home growing up. | Brittainy Newman/AP

RAPID RESPONSE: New York City will quickly place 100 randomly-selected families living in city shelters as a result of domestic violence in safe and permanent homes, Adams announced today.

Adams and Deputy Mayor for Health and Human Services Anne Williams-Isom both discussed their experiences growing up in homes where domestic violence was present. More than 700 acts of domestic violence are reported in New York City each day, Adams said, and many others go unreported.

“Home is your safety, and for far too many, they are not experiencing that safety,” Adams said.

The pilot program — dubbed “Project Home'' and funded by a $300,000 grant from NYC Fund to End Youth & Family Homelessness — will match 100 eligible households with a specialized housing navigator to help them secure permanent housing with trusted landlords. The families will also be matched with an aftercare coordinator to help support them after they leave the shelters. — Irie Sentner

Trump on trial in New York

Former President Donald Trump leaves Trump Tower on his way to Manhattan criminal court, Monday, April 15, 2024, in New York.

The scene outside the lower Manhattan courthouse for the first day of former President Donald Trump's criminal trial was relatively tame, with the crowd of pro-Trump supporters far smaller than at his arraignment last year. | Yuki Iwamura/AP

TRUMP COMES TO COURT: The first half of the first day of the first criminal trial for former President Donald Trump passed today without a single prospective juror being considered.

Expectations on the pacing of the proceedings on Trump’s 34 felony charges of falsifying records were further tempered by Justice Juan Merchan’s schedule, which involves days off and half days. Open arguments and substantive testimony may not begin until May, POLITICO reports.

And the scene outside the lower Manhattan courthouse was also relatively tame: The crowd of pro-Trump supporters far smaller than at his arraignment last year and numbering just a few dozen at its peak. They were outnumbered by members of the news media, and a few wore costumes and voiced conspiracy theories.

But they did include some higher-profile Trump backers including Andrew Giuliani, son of the former New York City mayor and a former gubernatorial candidate.

Newsmax personality, U.S. Senate candidate and ardent Trump backer Cara Castronuova, who was interviewing attendees, explained it to Playbook this way, “I just think that people are kind of tired of these trials. And they know they really mean nothing.” — Emily Ngo

On the Beats

Comptroller Tom DiNapoli

Comptroller Tom DiNapoli's office released a report today highlighting the backlog of local water infrastructure projects at the Environmental Facilities Corporation. | Richard Drew/AP

WATER BACKLOG: Another voice has been added to the chorus of concern about the availability of water infrastructure funding: Comptroller Tom DiNapoli.

Clean water advocates and lawmakers have been critical over how quickly Hochul’s administration and her predecessor have been able to spend billions allocated for water and wastewater investments.

Hochul’s budget proposal slashed funding in half from historical levels for the program, which received pushback from lawmakers. That issue hasn’t yet been resolved in negotiations.

DiNapoli’s office released a report today highlighting the backlog of local water infrastructure projects at the Environmental Facilities Corporation.

“New York has spent more on clean water and drinking water projects than any other state, but the resources needed to address aging infrastructure and related challenges remain significant,” DiNapoli said in a statement. “The state should build on its efforts to help communities access funding to ensure the success of these programs continues.”

DiNapoli highlighted that there are 876 projects with estimated costs of $17.9 billion in the clean water program and 1,004 projects with estimated costs of $8.3 billion for drinking water that have not yet gotten funded. The report also calls for EFC to track progress of funded projects and publicly report on the communities that have benefited. — Marie J. French

AID IN DYING: The Medical Society of the State of New York, a professional organization representing physicians and medical students, has come out in support of the Medical Aid in Dying Act — a key endorsement that the bill’s supporters say could open the floodgates for additional lawmaker support.

The organization, which previously opposed the legislation, passed a resolution at its annual House of Delegates meeting over the weekend expressing support for the bill and its language permitting physicians to choose whether or not to participate. — Maya Kaufman

SHIELD LAW EXPANSION: Sexual abuse survivors and state lawmakers are set to make a push for an extension of New York’s rape shield law.

The current law prevents a person being charged with a sex crime from questioning a complainant about prior sexual relationships unless the evidence is relevant to the crime being charged.

Advocates of the proposal want the law to cover civil court and provide aid to trafficking survivors. They will also push to make it easier for people in state custody to file sex abuse cases.

Lawmakers in recent years have approved measures meant to aid abuse survivors, including the Child Victims Act and the Adult Survivors Act, which were aimed at making it easier to file lawsuits. A rally in support of the legislation is being held Tuesday in Albany. — Nick Reisman

The Campaign Trail

State Sen. Tim Kennedy (D-Buffalo) is seen speaking in the Senate Chamber at the Capitol in a 2017 file photo.

State Sen. Tim Kennedy is a heavy favorite to win a special election April 30 to serve in Congress in Western New York, succeeding fellow Democrat Brian Higgins who resigned earlier this year. | Hans Pennink/AP Photo

KENNEDY’S FAREWELL ADDRESS? State Sen. Tim Kennedy won’t be on the ballot for a congressional special election in Western New York for another two weeks. But at what might have been his last committee meeting in Albany today, he took the opportunity to deliver what amounted to a farewell address.

“We will see where the next few weeks bring myself and my future, but this very well may be my final Transportation Committee,” Kennedy said. “We have accomplished a lot over the years.”

Kennedy spent five minutes summarizing his accomplishments. That included highlighting some measures that had a national effect: “The laws that we passed here were actually put into law at a federal level,” he said about limousine safety.

The senator will be facing off against Republican Gary Dickson on April 30 to finish off the term started by Democrat Brian Higgins. The district has been comfortably blue for the past couple of decades. — Bill Mahoney

AROUND NEW YORK

— Peace officers in New York City abused people in homeless shelters and kept their jobs, records show. (New York Focus)

— Political researchers talk about the “try and kill” approach to their jobs. (City & State)

— George Santos’ run for Congress is off to a slow start: He hasn’t raised any money yet. (POLITICO)

 

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