Plugged In @ Hinman Straub – March 29, 2017

Coverage of Albany and New York State government

  • State Budget Update
  • Governor Critical of Federal Health Care Cost Shift Proposal
  • Governor Announces Administration Appointments
  • Lawmakers Elect Regents
  • Governor Announces Sheridan Expressway Project in South Bronx
  • Governor Announces Electric Car Rebate and Outreach Initiative
  • Attorney General Announces Record Level of Data Breaches in 2016
  • Governor Announces Microgrid Funding
  • Good Government Group Criticizes State Budget’s Spending
  • Political Update
  • Coming Up

State Budget Update

Last week, lawmakers began to move toward final budget negotiations with a meeting of General Budget Conference Committee, followed by one round of meetings of the joint budget subcommittees.  The leaders of each legislative conference identified their budget priorities, and all agreed that the Governor’s proposal to grant new powers to the Division of the Budget to make mid-year budget adjustments would be rejected.

The Assembly Democrats said that they plan to push to raise the age of criminal responsibility; increasing the state’s income tax surcharge on people making more than $5 million annually; and enacting a “mansion tax” in New York City to pay for senior housing.

The Senate Republican Conference has indicated that one of its top priorities is reforming the state’s Workers’ Compensation system to reduce its costs.

Budget negotiations are going on behind the scenes.  While Friday is the last day of the state’s current fiscal year, it is not clear whether the Governor and Legislature will reach agreement and adopt the state’s 2017-18 budget by then.

Yesterday, Gov. Cuomo suggested that the state might change tack on the 2017-18 budget and effectively freeze state spending at current levels until Washington’s proposed budget — and their impacts on the state’s spending — become clearer.

Governor Critical of Federal Health Care Cost Shift Proposal

The House Republican leadership, in an effort to convince New York Republicans to support its health care reform legislation, have added a provision to the bill that would shift Medicaid costs from New York’s counties to its state government.  The measure, which was pushed by Representative Chris Collins (R-Erie County) and John Faso (R-Columbia County) would shift about $2.3 billion in costs from counties outside of New York City to the state.

Some county leaders – most of them outside of the New York City region — expressed support for the amendment, saying that it would provide them relief from an unfunded state mandate that they have sought for decades.  They also argue that the amendment would place financial responsibility for Medicaid on the state, which decides both the benefits and the costs of the program.

In a statement issued last Monday, the Governor said that the cost shift is a “death trap” that will “devastate” most hospitals, nursing homes and assisted living facilities in Upstate New York and on Long Island.

Then on Tuesday, Gov. Cuomo held a press conference where he outlined the “devastating impact” that the American Health Care Act and the Collins Amendment will have on New Yorkers.  He said that Congressional Republicans have “declared war on New York.”

On Wednesday, the Governor warned that the state may have to increase income taxes by as much as 10 percent if the House health care reform legislation is enacted.  On Thursday, the Governor said that the state may sue the federal government if it requires the state to take over counties’ share of Medicaid costs because it may violate state sovereignty.

Last Friday, the House Republican leadership announced that it did not have the votes to approve its legislation to repeal and replace the Affordable Care Act.

Governor Announces Administration Appointments

Last Tuesday, Gov. Cuomo announced 27 administration appointments, including some former Obama administration staffers and Hillary Clinton aides:

  • Carolyn Pokorny, Chief Special Counsel for Ethics, Risk and Compliance
  • Christopher O’Brien, Director of Special Projects
  • Sarah Bittleman, Deputy Director of Special Projects
  • Molly Dillon, Senior Policy Advisor
  • Valery Galasso, Senior Policy Advisor
  • Patrick Oakford, Senior Policy Advisor
  • Mike Perrin, Deputy Director of State Operations
  • Kate Dineed, Chief of Staff, Director of State Operations
  • Annabel Walsh, Director of Scheduling
  • Joel Wertheimer, Staff Secretary for the Governor
  • Jen Darley, Assistant Director of Executive Operations
  • Jon Weinstein, Deputy Communications Director for Transportation
  • Elizabeth Bibi, Deputy Director of Media Operations
  • Andrew Tillman, Speechwriter for the Governor
  • Tim Fullerton, Director of Digital Communications
  • Diana Bowen, Video Producer
  • Joseph Rabito, Deputy Secretary for Intergovernmental Affairs
  • Rochelle Kelly-Apson, Director for Downstate Intergovernmental Affairs
  • Brendan Hughes, Assistant Secretary for Economic Development
  • Kerri Neifield, Assistant Secretary for Human Services
  • Rob Gibbon, Assistant Counsel to the Governor for Transportation
  • Penny Lowy, Appointments Secretary
  • John Ceretto, Project Coordinator, Office of Parks, Rec & Historic Preservation
  • Brendan Fitzgerald, First Deputy Secretary of State, Dept. of State
  • Michael Volforte, Director of Office of Employee Relations
  • Sarah Coleman, Deputy Chair and Counsel for Public Employee Relations Board
  • Jeffrey Pearlman, Acting Director of Authorities Budget Office

Lawmakers Elect Regents

Last Tuesday, members of the Assembly and State Senate met in joint session to appoint three members to the state Board of Regents. The joint session was originally scheduled for last Tuesday, but was postponed due to the weather.

Lawmakers approved incumbent Nan Eileen Mead to represent the 1st Judicial District (Manhattan) for a full five year term.  She was first elected to the Board last year.

Retired Ithaca teacher Susan Mittler was elected to her first term on the Board. She will represent the 6th Judicial District, which encompasses much of the Southern Tier.  She will replace long-time Regent (and former Assembly Majority Leader) James Tallon.

Lawmakers also re-appointed Regent Vice Chancellor T. Andrew Brown of Rochester.

Governor Announces Sheridan Expressway Project in South Bronx

Last week, Gov. Cuomo announced a project in the South Bronx that includes the reconstruction of the Bruckner-Sheridan Interchange and replacing the Sheridan Expressway with a boulevard design that will be pedestrian and cyclist friendly.  The project is intended to restore long-severed ties between area neighborhoods, while increasing access to the Bronx River waterfront and a local park.

Gov. Cuomo said:

“While plans have been proposed and languished for decades, we’re taking action to finally right the wrongs of the past by reconnecting South Bronx communities that have dealt with unnecessary barriers to revitalization and growth. The project will create an interconnected South Bronx with access to the Waterfront, recreation, and less traffic on local streets while simultaneously better supporting those who use the Hunts Point Market – a vital economic engine for the borough.”

Governor Announces Electric Car Rebate and Outreach Initiative

Last Tuesday, Gov. Cuomo announced the launch of the state’s Electric Car Rebate and Outreach Initiative “to encourage the growth of clean and non-polluting electric car use in New York and promote the reduction of carbon emissions in the transportation sector.”

The program, which is being administered by the New York State Energy Research and Development Authority (NYSERDA) includes the $55 million ‘Drive Clean Initiative,’ which will provide rebates of up to $2,000 for purchase of a new plug-in hybrid electric car, all-electric car or hydrogen fuel cell car; and $15 million for consumer awareness of electric cars and their benefits, installing charging stations across the state, and developing and demonstrating new electric car-enabling technologies.

Gov. Cuomo said:

“Reducing vehicle emissions is a critical part of this administration’s efforts to fight climate change and reduce New York’s carbon footprint.  These highly-anticipated rebates will make electric vehicles more affordable and accessible and support this state’s nation-leading efforts to build a cleaner, greener New York for generations to come.”

Attorney General Announces Record Level of Data Breaches in 2016

Last Tuesday, state Attorney General Eric Schneiderman announced that his office received a record number of data breach notices in 2016, an increase of 60 percent over 2015.  He said that exposed information consisted overwhelmingly of social security numbers and financial account information, and that the leading cause of the breaches were hacking and inadvertent disclosure.

Attorney General Schneiderman said:

“In 2016, New Yorkers were the victims of one of the highest data exposure rates in our state’s history.  The total annual number of reported security breaches increased by 60% and the number of exposed personal records tripled. Hacking is increasingly prevalent – making it all the more important for companies and citizens alike to take precaution when sharing and storing personal data. It’s on all of us to guard against those who try to use our personal information for harm – as these breaches too often jeopardize the financial health of New Yorkers and cost the public and private sectors billions of dollars.”

Governor Announces Microgrid Funding

Last Thursday, Gov. Cuomo announced that the New York State Energy Research and Development Authority (NYSERDA) is providing $11 million for 11 microgrid projects across the state as part of the second stage of the NY Prize Community Microgrid competition.  The funds will pay for engineering designs and business plans for a microgrid to bring local, clean energy generation and backup power to their respective communities. And each project will be eligible for the next stage of the competition, which is access to financing for microgrid construction through NY Green Bank.

Gov. Cuomo said:

“It’s critical that communities across New York have reliable power to provide vital services when they are needed the most.  These awards will help local government modernize and harden their power infrastructure, as well as join this administration’s fight against climate change, and create a cleaner, greener, Empire State for all.”

Good Government Group Criticizes State Budget’s Spending

As they have done in prior years, government reform group Citizens Union issued a report last week on nonspecific funding in the state budget.  According to the report, the Governor’s budget proposes $4.3 billion in 60 “lump sum funding pots” that provide information as to how the money will be spent.

Citizens Union Executive Director Dick Dadey argues that the state’s use of lump-sum appropriations undermines transparency and accountability, and increases the opportunities for corruption.

The group wants the purpose of budget lump sums to be disclosed before the budget is passed; detailed criteria for the spending; online disclosure of all state grants; a three-day aging period for legislative grants; and the disclosure of the identity of the sponsor in Senate and Assembly budget resolutions.

Political Update

Winners & Losers

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

Coming Up

The Senate and Assembly are scheduled to be in session Monday through Friday this week.

The state’s 2017-18 fiscal year begins on April 1.

The state Board of Regents holds its next meeting on April 3 and 4.

The Public Service Commission (PSC) holds its next meeting on April 20.

The Joint Commission on Public Ethics (JCOPE) holds its next meeting on April 25.

The State Board of Elections holds its next meeting on April 25.

The special elections to fill vacancies in the 30th Senate District (Manhattan) and the 9th Assembly District (Nassau/Suffolk) are scheduled for May 23.