Plugged In @ Hinman Straub – February 1, 2017

Coverage of Albany and New York State government

  • Senate Highlights $800 Million in New Fees, Taxes in Executive Budget
  • Assembly Proposes Increasing Tax Hike For The Rich
  • Legislative Budget Hearings Begin
  • Governor to Require Insurers to Cover Birth Control, Medically Necessary Abortions
  • Comptroller Reports on School Districts in Financial Stress
  • SUNY Chancellor Delivers 2017 ‘State of the University’ Address
  • LIPA Approves Nation’s Largest Offshore Wind Farm Contract
  • NYC Mayor Releases $84.7 Billion Preliminary Budget
  • Upstate Business Group Releases 2017 Agenda
  • Profiles of Newly Elected State Legislators
  • Political Update
  • Coming Up

Senate Highlights $800 Million in New Fees, Taxes in Executive Budget

Senate Majority Leader John Flanagan said last week that his conference has concerns about the more than $800 million in increased taxes and fees that are included in the proposed state budget.  The largest is the proposed extension of the “millionaires’ tax” on high-wealth earners’ incomes. Other “revenue actions” – as they are characterized by the Governor – include taxing the vapor products used in e-cigarettes; new cigar taxes; and various fee increases for some documents provided by the state Department of Motor Vehicles.

The Assembly says that the Governor’s budget proposes $830 million in “new tax actions.”

The Governor pushed back, saying that extending the state’s tax rate on high earners is critical to the state’s finances in the next fiscal year and beyond.

Read the Senate Majority Executive Budget analysis, and the Assembly Majority’s Executive budget analysis.

Assembly Proposes Increasing Tax Hike For The Rich

Last Thursday, the Assembly’s Democratic Majority announced their support for higher taxes on millionaires that they say would generate $5.6 billion in additional revenue for the state.

Assembly Speaker Carl Heastie said:

“By ensuring that tax rates are tailored to expect more from those who can most afford it, we can make sure our communities have better schools, New Yorkers have better access to healthcare and that tax burdens do not crush those who are struggling to make ends meet.”

The Assembly’s proposal comes in the wake of Gov. Cuomo’s proposal to continue an existing tax surcharge on high earners millionaires that is set to expire at the end of 2017.

Legislative Budget Hearings Begin

Last Tuesday, legislators began their hearings to review Gov. Cuomo’s 2017-18 Executive budget proposal.  The topic of Tuesday’s hearing was higher education, and the primary issue was the $163 million Excelsior Scholarship program that would provide free tuition to some public college students.

Lawmakers raised a number of concerns about the proposal, including the possible impact on private colleges and universities, who may lose students to SUNY and CUNY schools; whether SUNY and CUNY can handle an enrollment “spike” that could result from the program; and the scope and cost of the program.

The Governor is also proposing to allow SUNY to raise tuition up to $250 each year for the next five years. This would follow a 30 percent SUNY tuition increase for undergraduate state residents over the past five years.

Read Chancellor Zimpher’s full testimony to lawmakers here.

Governor to Require Insurers to Cover Birth Control, Medically Necessary Abortions

Gov. Cuomo recently announced that the state will take regulatory action to require commercial insurers to cover contraceptive drugs and devices and medically-necessary abortion services without co-pays, coinsurance, or deductibles. The Governor’s announcement coincided with a number of large scale ‘Women’s Marches’ in cities around the country.

Governor Cuomo said:

“These regulatory actions will help ensure that whatever happens at the federal level, women in our state will have cost-free access to reproductive health care and we hope these actions serve as a model for equality across the nation.”

Comptroller Reports on School Districts in Financial Stress

Last Wednesday, State Comptroller Tom DiNapoli released a report which finds that 59 school districts throughout the state are considered “fiscally stressed.”  This reflects a decrease from 82 districts that were listed in stress in 2016, and 90 in 2015.  The report notes that school districts found to be in fiscal stress are more likely to have a high level of poverty and low graduation rates.

Comptroller DiNapoli said:

“Fiscal stress in many school districts has declined, especially for those in the most severe condition.  School officials should be commended for working to keep their districts out of financial harm, but should be careful not to amass excessive levels of fund balance in order to do so.”

SUNY Chancellor Delivers 2017 ‘State of the University’ Address

Last week, SUNY Chancellor Nancy Zimpher delivered her eighth and final State of the University Address.  She announced the creation of two new SUNY entities that are intended to “keep the university system moving forward.”

The SUNY Impact Foundation will enable SUNY to seek private sector investment in system-wide initiatives, such as maintaining SUNY’s affordability, supporting college completion, and preparing students for success in both college and career. The SUNY Center for Systems Change will “study the concepts of systemness and continuous improvement, ensuring that SUNY continues to ‘be the best at getting better’ while also providing a national model for education systems as well as those used in government, community, and business.”

Watch the speech, or read the transcript.

LIPA Approves Contract for Offshore Wind Energy

Last Wednesday, Gov. Cuomo announced that Long Island Power Authority’s Board of Trustees has voted to approve the state’s first offshore wind farm.  The Deepwater Wind South Fork, a 90-megawatt turbine farm located between Block Island and Martha’s Vineyard, would require a 50-mile transmission line to Long Island, connecting at East Hampton.  The project could be delivering energy to Long Island’s South Fork by the end of 2022.

Gov. Cuomo said:

“New York leads the nation in pioneering clean energy innovation, and this bold action marks the next step in our unprecedented commitment to offshore wind, as well as our ambitious long term energy goal of supplying half of all electricity from renewable sources by 2030.  This project will not only provide a new, reliable source of clean energy, but will also create high-paying jobs, continue our efforts to combat climate change and help preserve our environment for current and future generations of New Yorkers.”

Gov. Cuomo has set a goal for the state to help develop 2.4 gigawatts of offshore wind, which could power 1.25 million homes, by 2030.

NYC Mayor Releases $84.7 Billion Preliminary Budget

Last Wednesday, New York City Mayor Bill de Blasio released the city’s preliminary budget for FY 2018, which proposes spending $84.67 billion, about $1 billion more than the city’s current budget.  The Mayor noted that there is significant “uncertainty” emanating from the new federal administration, and that federal funds account for about $7 billion of the city’s proposed spending.

The mayor said his budget focuses on “targeted strategic investments” in education, public safety, and infrastructure while creating historically high savings and reserves.

Mayor de Blasio said:

“Deepening the progress we’ve made over the last three years, this budget further invests in the foundations central to a strong, fair city – more classroom seats, enhanced traffic safety initiatives, crucial infrastructure upgrades and public safety progress. At the same time, in the face of economic and political uncertainty from Washington, this budget once again will save money through efficiency measures and invest further in reserve funds aimed at safeguarding our city’s financial future.”

The preliminary budget for fiscal 2018 will be the subject of weeks of hearings by the City Council, followed by a formal Council response, negotiations, and the Mayor’s proposal of an Executive Budget plan in April. That plan will then be the subject of further hearings and negotiations before an agreement is reached.  The city’s new fiscal year begins on July 1.

Upstate Business Group Releases 2017 Agenda

Last Wednesday, Rochester-based business group Unshackle Upstate released its 2017 policy agenda.  The group’s top priorities are enacting a 2 percent state spending cap; reforming the state’s Workers’ Compensation laws; and allow ride-sharing services throughout the state.

Greg Biryla, Unshackle Upstate’s Executive director, said:

“Employers are still reeling from the outcomes of last year’s legislative session. Any proposal that raises taxes, imposes costly mandates or adds to the burden of struggling businesses must be soundly rejected.  Revitalizing the Upstate economy must be the top priority for our leaders in Albany. We’re ready to work with Governor Cuomo and the Legislature to achieve this critical goal.”

Profiles of Newly Elected State Legislators

Below are brief profiles of new state legislators.  Click on their name to go to their official biography.

John Brooks, 8th Senate District (part of Nassau and Suffolk counties) – Democrat

John Brooks narrowly defeated first-term incumbent Republican Michael Venditto. A former insurance executive, he served on the Seaford Board of Education for a number of years.  He has been an active volunteer with the Seaford Fire Department for more than 45 years.

His legislative priorities include reducing property taxes, ensuring that Long Island get adequate education funding and reforming county tax assessments.

The 8th Senate District includes Long Island’s South Shore in eastern Nassau and western Suffolk counties

James Tedisco, 49th Senate District (all or parts of Schenectady, Saratoga, Fulton, Hamilton and Herkimer counties) – Republican

James “Jim” Tedisco was elected to replace fellow Republican Hugh Farley. Tedisco served in the Assembly since 1983, and was Assembly Minority Leader from 2005 to 2009. Before running for the Assembly, he was a guidance counselor; special education teacher; varsity basketball coach and athletic director; and he served on the Schenectady City Council.

His legislative priorities include ethics reform; defending the rights of gun owners; maintaining the state’s real property tax cap; and providing funding for local governments to repair and maintain drinking water, storm water and sewer infrastructure.

Anthony D’Urso, 16th Assembly District (part of Nassau County) – Democrat

Democrat Anthony D’Urso was elected to succeed fellow Democratic Michelle Schimel, who did not run for re-election. A native of Italy, D’Urso worked for the New York City Department of Housing.  He also served 14 years as At-Large Councilman on the North Hempstead Town Board

His legislative priorities include holding the line on local property taxes by delivering state education aid and environmental protection, specifically the protection of Long Island’s water supplies.

Brian Barnwell, 30th Assembly District (part of Queens) – Democrat

Brian Barnwell won the race for the 30th Assembly District after defeating incumbent Democrat Margaret Markey in the September primary election.  Barnwell, a 30-year-old lawyer, previously worked for a New York City Council member.

His legislative priorities include addressing corruption and ethics reform, affordable housing and responding to constituents’ quality of life issues.

Tremaine Wright, 56th Assembly District (part of Brooklyn) – Democrat

Tremaine Wright was elected to replace fellow Democrat Annette Robinson, who chose not to run for re-election.  An attorney, she served as the Chairperson of Community Board 3 and owned a neighborhood coffee shop.

Carmen De La Rosa, 72nd Assembly District (part of Manhattan) – Democrat

Carmen De La Rosa defeated incumbent Democrat Guillermo Linares in the September primary election.  She served as Chief of Staff to New York City Council Member Ydanis Rodriguez, and previously worked for Assembly Member Dan O’Donnell. A native of the Dominican Republic, she grew up in the district.

Her legislative priorities include preserving affordable housing stock and building new affordable housing responsibly; improving education; protecting and enhancing women’s rights; criminal justice reform; supporting local businesses; and environmental protection.

Mary Beth Walsh, 112th Assembly District (part of Schenectady and Saratoga counties – Republican

Mary Beth Walsh was elected to fill the vacancy created when fellow Republican Jim Tedisco gave up his seat to run for State Senate.  Walsh is an attorney with her own private practice and served as the Town of Edinburg Attorney.  She has served on the Ballston Town Council, the Saratoga County IDA, and the Saratoga County Ethics Advisory Council.

Monica Wallace, 143rd Assembly District (part of Erie County) – Democrat

Monica Wallace was elected to replace Republican Angela Wozniak, who did not run for re-election. An attorney, Wallace was a full-time faculty member at the University at Buffalo Law School.

Her legislative priorities include ethics reform, ensuring high-quality, affordable public education for all New Yorkers, investing in infrastructure, and promoting small businesses.

Another Democratic Senator Joins Senate IDC

On Wednesday, State Senator Jose Peralta (D- Queens) announced that he has joined the Senate’s Independent Democratic Conference (IDC).  The move is a blow to the mainline Democratic minority conference, which is reduced to 23 members and increases the size of the IDC to eight members.

The IDC, which is led by Senator Jeff Klein (D-Bronx), broke away from the mainline Senate Democratic Conference in 2011.  Peralta is the IDC’s third new member since the end of the 2016 session.  The Senate’s Majority Coalition now includes 31 Republicans, 8 IDC members and Brooklyn Democratic Senator Simcha Felder.

 Political Update

Conservative Party Meets in Albany

The state’s small but influential Conservative Party held its annual Political Action Conference this week in Albany.  A number of potential 2018 gubernatorial candidates spoke at the event, including business restructuring expert Harry Wilson, a former candidate for state comptroller;

Westchester County Executive Rob Astorino, who lost the 2014 race for Governor; Dutchess County Executive Marc Molinaro; and State Senate Majority Leader John Flanagan.

Assemblyman Appointed Oyster Bay Supervisor

Yesterday, the Oyster Bay Town Board appointed Assemblyman Joseph Saladino (R) to serve as the town supervisor.  Saladino replaces John Venditto, who has been indicted on federal corruption charges and resigned in January.

Winners & Losers

Each week, City & State New York publishes a list of the week’s political “winners” and “losers.”  Read last week’s list here.

Coming Up

The Senate and Assembly are in session on Monday and Tuesday next week.

Legislative budget hearings continue next week:

  • Tuesday: Taxes
  • Wednesday: Human Services
  • Thursday: Housing

The Assembly Committees on Codes, Judiciary and Local Governments are holding a public hearing on government oversight of forensic science laboratories on February 8 in New York City.

The State Board of Regents holds its next meeting on February 13 and 14.

Chief Judge Janet DiFiore will deliver the 2017 State of the Judiciary speech in the Bronx on Feb. 22.

The Public Service Commission holds its next meeting on February 16.