Budget process kicks off amid Albany acrimony

From: POLITICO New York Playbook - Wednesday Feb 01,2023 12:39 pm
Presented by Compassion & Choices: Erin Durkin and Anna Gronewold's must-read briefing informing the daily conversation among knowledgeable New Yorkers
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By Anna Gronewold, Sally Goldenberg and Zachary Schermele

Presented by Compassion & Choices

Happy budget day toall who celebrate. Gov. Kathy Hochul is releasing her executive proposal today right before the deadline (state law gives a governor until February 1, the first year of a term) and the Legislature is still largely in the dark about what will be in it.

Yep, everyone’s still a little salty around Albany right now, at least on the Senate side, what with the chief judge pick situation still in limbo and a Monday night veto where Hochul suggested that legislators hadn’t done any analysis of a bill they’d passed.

So the big old $220-billion-plus budget coming today should be just the thing to cheer everyone up, right?

A few things we know so far: Cash flow looks better than everyone thought it would last year. The November mid-year budget update found the state’s finances on “solid footing” with about $3 billion more than estimated the previous quarter.

Kathy Hochul speaks.

Whether Hochul’s proposal satisfies backers of the Build Public Renewables Act will shape the discussion as lawmakers parse through her budget and begin negotiations in the coming months. | Dia Dipasupil/Getty Images

Hochul will include details on her housing plan to build 800,000 new units over the next decade. She will not lay out a new replacement program for the contentious 421a tax break, but will opt to work with lawmakers on a new program, The New York Times reports.

She has a plan to open more charter schools that would include eliminating regional caps to make 85 more slots available for new charter schools, according to the New York Post.

The budget will include more than $337 million to fund programs that are intended to help stem gun violence, the Times Union reports, as well as a proposal Mayor Eric Adams has wanted that would allow New York City to require its contractors to hire “economically disadvantaged” job candidates, according to WNYC.

Hochul will ask lawmakers to embrace a cap-and-trade program — run by NYSERDA — to raise billions of dollars to reduce emissions in New York, as reported by our Marie J. French this morning. She will also suggest a proposal for the state’s power authority to build renewables and provide bill discounts to some residential customers.

Here’s what we don’t know: A lot. The “devil’s in the details,” lawmakers like to say, so when do you think we’ll see the budget legislation roll out? 2 p.m., 10 p.m., midnight? Send us your predictions.

IT’S WEDNESDAY and the first day of the worst month of the year. “Something great happened here but it’s over with” is often how downtown Albany feels about this time.

Got tips, suggestions or thoughts? Let us know ... By email: agronewold@politico.com and sgoldenberg@politico.com or on Twitter: @annagronewold and @sallygold

WHERE’S KATHY? In Albany releasing her budget proposal.

WHERE’S ERIC? In New York City delivering remarks at ABC7 New York's 25th Annual Operation 7 Save A Life Breakfast, signing Intro 660-A to support high school students with disabilities and Intro 559-A to reduce unnecessary waste of single-use plastic, attending the first of his Caribbean Advisory Council meetings, cutting the ribbon at Ali Baba's Terrace, and making a sanitation-related announcement.

QUOTE OF THE DAY: “This is a classic case of someone quitting right before they were going to get fired.” — GOP Reps. Nick LaLota and Anthony D’Esposito, in a statement addressing Rep. George Santos’ pulled out from his two House committee assignments

 

A message from Compassion & Choices:

Stacey Gibson's husband, Sid, spent his final days suffering needlessly because lawmakers failed to ensure access to the full range of end-of-life care options, including medical aid in dying. After being diagnosed with non-Hodgkin’s lymphoma, Stacey is now fighting for the right to peace at the end of life for herself should she need it. Tell lawmakers to stop the suffering and pass the Medical Aid in Dying Act in 2023. Learn More.

 
What City Hall's reading

Biden says Hudson River Tunnel project is finally full steam ahead, by POLITICO’s Danielle Muoio Dunn: President Joe Biden arrived in Manhattan Tuesday to deliver a message that elected leaders in New York and New Jersey have waited more than a decade to hear — the Gateway Program to improve the century-old rail link under the Hudson River is finally full steam ahead. Biden visited the rail yard on Manhattan’s west side to formally announce a nearly $300 million grant for the decades-long project to build a new rail tunnel under the Hudson and repair the existing one that suffered significant damage in 2012 from Hurricane Sandy. The federal award will allow developers to install concrete casing in the area, preserving the right-of-way for the new two-tube tunnel to connect to Penn Station.

Alvin Bragg defends plea deal in brazen antisemitic attack,” by Jewish Insider’s Matthew Kassel: “In his first public comments to address the Borgen case, Bragg, 49, said in an interview with Jewish Insider on Friday that he was ‘aware of the broader discussion’ around the investigation but refrained from responding directly to accusations from some of his most vociferous critics. Instead, he insisted that his office is simply following the facts at hand. ‘Our focus is where it must be,’ he said in a phone conversation, ‘which is the evidence that will be put forth and that does come forward during our investigation.’”

Mayor Eric Adams’ frustration with the White House over its handling of asylum seekers isn’t detracting from his support of President Joe Biden. During a CBS interview Tuesday night, the Democratic mayor gushed over the president, who was in town this week to announce a $292 million federal grant for the long-awaited Gateway tunnel project. “You have to get on your knees every day and say 'God, don’t let us go backward. He’s moving us forward,'” Adams said. “The guy is just leading — he’s leading from the front. And having him for four more years is going to [be] a blessing to this country.” He also called him a “blessing to older Americans.” Listen to the full clip here. — Sally Goldenberg

New Manhattan Casino Bid Includes a Ferris Wheel Near the U.N., by The New York Times’ Stefanos Chen: “After more than two decades, a developer’s megaproject could finally take root at the sprawling, fallow site near the United Nations headquarters in Midtown. Its latest bid: a proposal for Manhattan’s first Vegas-style casino. Soloviev Group, the longtime owner of the 6.7-acre plot, said on Tuesday that it will partner with Mohegan, the casino and resort operator, to compete for one of three casino licenses expected to be granted by state gambling regulators in the greater New York City area.”

 

JOIN POLITICO ON 2/9 TO HEAR FROM AMERICA’S GOVERNORS: In a divided Congress, more legislative and policy enforcement will shift to the states, meaning governors will take a leading role in setting the agenda for the nation. Join POLITICO on Thursday, Feb. 9 at World Wide Technology's D.C. Innovation Center for The Fifty: America's Governors, where we will examine where innovations are taking shape and new regulatory red lines, the future of reproductive health, and how climate change is being addressed across a series of one-on-one interviews. REGISTER HERE.

 
 
WHAT ALBANY'S READING

New York’s rugged politics deliver a rocky rollout for Hochul, by POLITICO’s Anna Gronewold: New York Gov. Kathy Hochul might have a people problem. The Democrat promised to build an administration of the best and brightest in the fallout of the toxic culture that led to her predecessor’s downfall. She pulled in top minds from across the city, state and nation to aid her rapid ascension and subsequent election. But 17 months later, lawmakers and strategists say Hochul hasn’t accessed the fundamental levers of power in both Albany and New York City Hall. And they say she should be past the learning curve over how to negotiate the treacherous New York political minefield as she looks to negotiate the roughly $220 billion state budget she is set to propose Wednesday.

LaSalle nomination remains at standstill as Hochul budget set to be unveiled,” by Times Union’s Joshua Solomon: “Gov. Kathy Hochul and state Senate Majority Leader Andrea Stewart-Cousins have not spoken regarding the governor's failed nomination of Justice Hector D. LaSalle as chief judge since the Senate Judiciary Committee rejected the selection two weeks ago. Stewart-Cousins' disclosure of that detail was made Tuesday as the governor's office is continuing to examine whether they could prevail in a court challenge to have the full Senate vote on LaSalle's nomination despite the committee's declination.”

New York lawmakers advance measure to seal criminal records,” by Spectrum News’ Nick Reisman: “A bill that would seal many criminal records in New York has advanced through a key committee in the state Senate on Tuesday, but its fate this session in Albany remains up in the air. Lawmakers on the state Senate Codes Committee approved the measure, known by its supporters as the Clean Slate Act, a move that sets the proposal up for final passage in the state Senate. “

State Senate passes several limousine safety bills following high profile crashes in recent years,” by amNY’s Ethan Stark-Miller: “The state Senate on Tuesday passed a package of bills aimed at strengthening safety standards and oversight for limousines across the state, following a couple of high profile crashes involving the elongated vehicles over the past few years. Bills in the package seek to align the state’s Safe Limo rating system more closely with federal protocols, create new limo retirement thresholds and add safety features like roll-over protections.”

#UpstateAmerica: “'Hedonist' musician 'lives in the moment.' Also, he's a donkey.

 

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FROM THE DELEGATION

George Santos’ constituents overwhelmingly want him to resign: poll,” by New York Post’s Isabel Keane: “More than three-quarters of voters in New York’s 3rd Congressional District say sketchy Rep. George Santos should step down, according to a new poll. The survey from Newsday and Siena College found that 83% of Santos’ constituents view him unfavorably, including 78% of Republicans.”

— Nancy Marks, Santos’ campaign treasurer, resigned from the post on Jan. 25, per new FEC filings.

TRUMP'S NEW YORK

Video of Trump taking the Fifth in deposition with New York attorney general is released,” by CNN’s Tierney Sneed and Kara Scannell: “A video of the August deposition the New York Attorney General’s office took of former President Donald Trump, in which Trump invoked the Fifth Amendment and declined to answer questions, was released Tuesday. ‘Anyone in my position not taking the Fifth Amendment would be a fool – an absolute fool,’ Trump said at the beginning of the deposition. The former president invoked the Fifth more than 400 times during the deposition, according to multiple sources familiar with the matter.”

 

DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOSDOWNLOAD FOR ANDROID.

 
 
AROUND NEW YORK

— A federal administrative judge ruled that Amazon violated labor law before the unionization elections last year at two Staten Island warehouses.

— Madison Square Garden is up for expiration and wants the city to assign it a permanent permit to operate the arena.

— The New York Civil Liberties Union is suing the state Department of Corrections for access to officers' disciplinary records.

Leaders of Saratoga Black Lives Matter are asking city officials to reform the police or abolish it.

— Hochul announced six substance abuse use and prevention coalitions will be created in five counties in New York state under a $5.25 million plan.

— In the Bronx, a new NYCHA pilot program replacing gas stoves with induction stoves led to an improvement in residents’ air quality.

— New York’s Black families are leaving the city primarily because raising children has become too expensive. Those findings come as a larger trend shows housing costs are driving many New Yorkers out of the state entirely.

SOCIAL DATA BY DANIEL LIPPMAN

HAPPY BIRTHDAY: Jake Siewert Michael Kives … ABC’s Ali Dukakis and Jordyn PhelpsNatalie Cucchiara of Lot Sixteen … Jaime (Lewis) Berk … Bloomberg’s Michelle Jamrisko …CBS’ Alana Anyse … NBC’s Catherine KimAmy Sterner NelsonAdrian Carrasquillo ... Erin Dooley 

 

A message from Compassion & Choices:

Stacey Gibson's beloved husband Sid was diagnosed with a rare degenerative motor neuron disease. When his treatment options ran out and he began to suffer, Sid decided to stop eating and drinking. It took twelve days for him to die. His slow, agonizing death was exactly what he feared and haunts Stacey to this day. Access to the compassionate option of medical aid in dying would ensure that no one's loved one is forced to suffer the way Sid did.

After being diagnosed with non-Hodgkin’s lymphoma, Stacey is now advocating fighting for the right to peace at the end of life for herself should she need it. It’s time for our lawmakers to give terminally ill New Yorkers like Sid the choice to end their life with the peace and dignity they deserve by passing the Medical Aid in Dying Act in 2023. Learn More.

 
Real Estate

Hochul on the Housing Hot Seat as Tenant and Real Estate Groups Press for Opposite Actions,” by THE CITY’S Greg David: “Mayor Eric Adams’ point person on housing, Jessica Katz, went to Albany last week to push the administration’s housing agenda in the state legislature — the first of many trips she expects to be making upstate in the next few months. Katz, NYC’s chief housing officer, expressed optimism about bridging the chasm between the competing demands of tenant groups that want to expand rent regulations and real estate interests seeking to roll them back.”

New York’s new 5 Borough Housing Movement, which is pushing for legislative changes in Albany to ease development, bills itself a a “diverse coalition of supporters from the business, labor, civic and religious communities across New York City focused on expanding the supply of affordable housing at a time when the city faces a dire housing crisis.” In response to an inquiry from POLITICO, the group revealed a list of financial backers that represents a who’s-who of the city’s real estate industry: The Real Estate Board of New York, Grand Central Partnership, and developers Gural Family Partners (GFP), Rudin, Rockrose and RXR. Others providing financial support include the New York Building Congress, the Association for a Better New York and the NAACP. — Sally Goldenberg

A December to forget: Multifamily projects slow to a trickle,” by The Real Deal’s Kathryn Brenzel: “Five hundred ninety down, 499,410 to go. In December, when Mayor Eric Adams announced a goal of 500,000 new homes citywide over a decade, developers filed to build just 590 apartments. The measly total, compiled by the Real Estate Board of New York, shows just how challenging reaching Adams’ target will be. The year finished on a down note for builders as the number of new apartments planned plunged 90 percent from 4,945 in December 2021 filings.”

 

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