| | | | |  | | By Nick Reisman, Jeff Coltin and Emily Ngo | With help from Jason Beeferman
|  A memo from the state's budget director warns the rising cost of the migrant crisis could start impacting education and health care spending. | Spencer Platt/Getty Images | The top budget aide to Gov. Kathy Hochul is recommending curbing support for migrants to a handful of key areas as the influx of people entering New York has added to the financial “headwinds” for the state. A memo obtained by Playbook written by Division of Budget Director Blake Washington warned big-ticket areas of the state budget — such as education and health care spending — could be affected by the state continuing to shoulder a broad array of migrant costs. But there is good news: The state budget gap next year is estimated to be much lower. (More below). “As we move forward, outside of fulfilling our existing commitments, we must consider limiting our assistance to targeted interventions such as legal services, case management and efforts to connect migrants and asylum seekers to jobs, as opposed to sharing in more costly services such as indefinite stays in hotel rooms,” he wrote in the memo to Karen Persichilli Keogh, the top aide to the governor. New York so far has committed $1.5 billion to aid with New York City’s migrant costs. At the same time, the state is spending an additional $358 million for the rental and service costs for housing migrants at Floyd Bennett Field in Brooklyn as well for case management and infectious disease screenings. The warning from the governor’s budget office over the broader spending implications from the migrant crisis comes after Hochul has urged Congress and President Joe Biden for additional financial support. Hochul has also pushed to make it easier for migrants to obtain jobs and secured a partial victory last month when the Biden administration agreed to expand temporary protected status for nearly 500,000 people from Venezuela. Hochul has pinned a lot on making it easier for migrants to find jobs in New York and has hoped that in doing so, issues like housing would fall into place as a result. “For me, the answer to these two crises — a humanitarian crisis and our workforce crisis — is so crystal clear and common sense. Let them get the work authorizations; let them work; legally, let them work,” Hochul said in an August address. Mayor Eric Adams, too, has warned city services will be affected by the ongoing costs related to migrant care and housing. In September, Adams called for city agency heads to slash their spending by 15 percent to offset migrant-related costs. The memo from Hochul’s budget chief also comes as her budget office will release on Monday the closely watched mid-year update on the state’s spending plan. The document does contain some other important news: Lower-than-expected spending at the state level has meant the state’s budget gap for next year will be reduced from $9.1 billion to $4.3 billion. Out-year gaps are also being reduced by $5 billion each year. But there’s bad news: Money from the state’s main revenue source, the personal income tax, continues to lag. Hochul is expected to release her budget proposal by Jan. 16 and the spending plan is scheduled to be approved by April 1, the start of the state’s fiscal year. Washington reiterated in his memo that Hochul wants to fill the remaining gap without raising taxes — a pledge that will impact all areas of the budget, including migrant spending. “This will require revisions to projected spending growth for existing programs which will make our ability to provide assistance to asylum seekers and migrants unsustainable,” he wrote. “We must exercise fiscal prudence now, so that we can maintain our record level of investments to state programs and robust savings and continue our efforts to make New York more affordable, more livable, and safer for this generation and beyond.” – Nick Reisman IT’S MONDAY. Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman. WHERE’S KATHY? In Albany and in New York City making an announcement about the opioid crisis. WHERE’S ERIC? Speaking at an NYPD recruit graduation ceremony in Manhattan and making an announcement about public spaces and climate change in Staten Island. QUOTE OF THE DAY: “A rush to judgment doesn’t even do it right. This was spontaneous combustion.” — former Gov. Andrew Cuomo to POLITICO about the push to get him to resign.
|  | ABOVE THE FOLD | | | |  Suffolk County police unions are funding a super PAC supporting Brookhaven Town Supervisor Ed Romaine, a Republican, for county executive. | Getty Images | COPS SPENDING BIG: The Long Island Law Enforcement Foundation, a super PAC funded by police unions in Suffolk County, really wants a Republican as county executive. They’ve reported spending more than $380,000 so far on billboard trucks, radio ads, door knocking and more to support Brookhaven Town Supervisor Ed Romaine over the Democrat, investor Dave Calone. Messaging for Romaine is targeting registered independents, saying he’ll keep the migrant crisis off of Long Island and “people are gobbling” it up, said an operative working on the race. Polling shows voters have public safety and affordability as their top two issues, the operative said. Calone has big outside spending support too, POLITICO has reported, with hedge funders seeding the super PAC Advancing Suffolk to spend $506,000 and counting. Political insiders are watching this and other Long Island races as a bellwether for 2024 elections in the suburbs. So elections for the Suffolk County Legislature are also attracting independent spending. The Long Island Law Enforcement Foundation has reported spending nearly $90,000 so far backing legislators Dominick Thorne, a Republican, and Tom Donnelly, a Democrat. But the biggest spender there is the New York League of Conservation Voters, who’ve reported spending more than $100,000 ahead of early voting on incumbents Thorne, Manuel Esteban and Stephanie Bontempi. – Jeff Coltin
| | WHAT CITY HALL IS READING | | | 
Allon, seen here in gray, clapping, is the latest departure from Adams’ comms team. | Michael Appleton/Mayoral Photography Office | SPOX EXIT: One of Mayor Adams’ deputy press secretaries, Jonah Allon, has left City Hall to work for consultant Neal Kwatra at Metropolitan Public Strategies. The departure comes while two other key communication positions in City Hall remain empty. The mayor has been without a press secretary since Aug. 14, when Fabien Levy was appointed deputy mayor for communications. And there hasn’t been a communications director since June 30, when Maxwell Young left the job. He’s now at Pfizer. Allon, too, was a pillar of the press shop as the spokesperson focused on the city budget. Allon joined Adams in Brooklyn Borough Hall back in May 2019, making him one of the mayor’s longer-tenured aides. Allon is starting at Metropolitan next week, where he’ll be working with clients with city business, including Maimonides Medical Center, UnitedHealthcare, Haussmann Development and Bally’s, which is trying to get a license for a casino in the East Bronx. Allon says he won’t be lobbying though. Allon “was truly committed to ‘Getting Stuff Done’ for New Yorkers, and we will all miss his incredible energy,” Levy said in a statement wishing him luck. Levy said they’re in the middle of hiring for a number of jobs in the press shop. – Jeff Coltin THEIR MANE MAN: NYCLASS has entered the chat in the Justin Brannan vs. Ari Kagan matchup. The animal rights group has endorsed Kagan, the Republican in the marquee City Council race in southern Brooklyn, citing his co-sponsorship of a bill to replace horse-drawn carriages with an electric option. It mobilized and spent big against Christine Quinn in the 2013 race for mayor, helping boost Bill de Blasio. The group is attacking Brannan, the Democrat, but is otherwise endorsing Democrats in the council races. Meanwhile across the city, 15,700 people have cast their ballots in the first two days of early voting, which started Saturday. – Emily Ngo More from the city:
— Coalitions that previously overlooked Israel-Palestine divisions are now in jeopardy. (POLITICO) — Migrants get a message from smugglers, TikTok and relatives: Go to New York. (New York Times) — New Yorkers’ concerns over the mushrooming migrant crisis have put Democrats in City Council races on the defensive. (New York Daily News)
| | | | GO INSIDE THE CAPITOL DOME: From the outset, POLITICO has been your eyes and ears on Capitol Hill, providing the most thorough Congress coverage — from political characters and emerging leaders to leadership squabbles and policy nuggets during committee markups and hearings. We're stepping up our game to ensure you’re fully informed on every key detail inside the Capitol Dome, all day, every day. Start your day with Playbook AM, refuel at midday with our Playbook PM halftime report and enrich your evening discussions with Huddle. Plus, stay updated with real-time buzz all day through our brand new Inside Congress Live feature. Learn more and subscribe here. | | | | | | | WHAT ALBANY'S READING | | | | 
A New York State Business Council report says the outmigration of New York's financial sector is hampering the state's economy. | Michael M. Santiago/Getty Images | FINANCIAL MOVES: Outmigration of people and businesses continue to sting the state’s economy, a report to be released Monday by the New York State Business Council highlights. “Every job in finance and insurance creates nearly three additional jobs in the state,” the report stated. “However, the national dominance of New York’s finance and insurance industry is being chipped away by other states, due to competitiveness issues in New York such as the business climate, cost of living and tax burden.” The report from the lobbying organization found New York lost $9.8 billion to Florida alone in 2021. In the last three years, firms that have $993 billion in managed assets moved their headquarters out of New York for greener pastures in other states. Financial sector growth in New York stands at 0.2 percent, with Idaho, North Carolina, South Carolina and Texas recording double-digit growth, according to the report. The health of New York’s financial sector is considered vital for the state’s economy and the budget given the outsize role tax revenue from the industry plays in the spending plan each year. – Nick Reisman More from Albany:
— The State Police did not seek an emergency risk protection order three months ago after transporting the man now accused of a mass shooting in Maine. (Times Union) — New York will spend $5 million to stop gun violence among teens and young adults. (Spectrum News)
| | AROUND NEW YORK | | — A state rule requiring workplaces to provide paid COVID sick days is still in effect, and it’s costing businesses millions. (Times Union) — Long Island’s Amityville school district is suing the state to keep the name “Warriors” for its athletic teams, despite a ban on Native American names and imagery in public school sports. (Newsday) — A Westchester elementary school’s fundraiser for UNICEF was called off after outcry from parents who said the United Nations agency is antisemitic. (LoHud)
| | SOCIAL DATA BY DANIEL LIPPMAN | | MAKING MOVES: Noah Richter joined Pythia Public as senior associate. He was previously at FGS Global. … Susan Adeyeye joined Pythia Public as associate. She previously worked with City Council member Julie Menin and Power of Two … Shay O'Reilly and Lizzy Oh are joining Spring Street Climate Fund as campaign managers. O'Reilly was previously senior organizing representative at Sierra Club. Oh was campaign organizer at Public Power New York. … Rachel Squire Munson has joined New York Law School as a senior adviser to the dean. She was most recently a principal at Boston Consulting Group and started in city government working in the Office of Operations and Office of Housing Recovery Operations. HAPPY BIRTHDAY: Maggie Haberman (5-0) … Ivanka Trump … NBC’s Andrea Mitchell … Robert Caro … Lizette Alvarez … Laurence Leamer … Sandy Flint … (WAS SUNDAY): David Remnick … Frank Carone … NBC’s Laura Jarrett and David Corvo … WaPo’s Dave Clarke … WSJ’s Kate Bachelder Odell … CBS’ Avery Miller … Anthony Pardal of the American Bankers Association … Jamie McIntyre … Rena Finkel … Thompson Warren … Jeffrey Garten ... David Siegel … SKDK’s Avery Cohen (WAS SATURDAY): Bill Gates … CNN’s Peter Morris and Margaret Given … CBS’ Meghan Caravano … Doug Band … ABC’s Quinn Scanlan … Rabbi Dovid Twersky ... Faye Ginsburg ... Mara Mellstrom … (WAS FRIDAY): Brad Hoylman-Sigal ... Adam Zucker ... Ryan Eisenman WELCOME TO THE WORLD — Sam Sutton, co-author of POLITICO’s Morning Money newsletter, and Sara Kosyk, a tour operator for Tauck, on Tuesday night welcomed Ilana Susan Sutton. WEEKEND WEDDING: Jack Sterne, senior vice president at SKDK, married Eliza Hamburger, a registered dietician, at Saltwater Farm Vineyard in Stonington, Conn. The groom’s brother, City & State NY Editor Peter Sterne, told a story of Jack having to take work calls from a hot tub on a romantic getaway back when he was deputy communications director for Andrew Cuomo. “He ultimately quit the governor’s office,” he said, “and chose Eliza over Governor Cuomo.” SPOTTED: Chloe Chik of Brad Lander’s office, CWE’s Drew Weber, Emily Joshu of the Daily Mail, and SKDKers past and present: Jason Novak, Jason Kaplan, Devon Puglia and Emily Uhlmann.
| | | | PLAYBOOK IS GOING GLOBAL! We’re excited to introduce Global Playbook, POLITICO’s premier newsletter that brings you inside the most important conversations at the most influential events in the world. From the buzzy echoes emanating from the snowy peaks at the WEF in Davos to the discussions and personalities at Milken Global in Beverly Hills, to the heart of diplomacy at UNGA in New York City – author Suzanne Lynch brings it all to your fingertips. Experience the elite. Witness the influential. And never miss a global beat. BE PART OF THE CONVERSATION. SUBSCRIBE NOW. | | | | | | | Real Estate | | — How New Yorkers’ return to the office numbers stacks up against other cities. (Crain’s New York Business) — A seven-story life sciences building is coming to Hell’s Kitchen. (Bloomberg) — A bitcoin-powered bathhouse and wellness center is coming to Manhattan, and here’s what it looks like inside. (New York Post) | | | | 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 | | | | |
Comments
Post a Comment