Plugged In @ Hinman Straub — September 28, 2016

PluggedInMastheadCoverage of Albany and New York State government

  • U.S. Attorney, State Attorney General Announce Corruption Charges Relating to State Economic Development Programs
  • Governor Announces Upstate Airport Improvements
  • State Releases New Common Core Standards for Public Comment
  • Comptroller: State Tax Collections Down 3 Percent
  • Governor Announces Emergency Grants for Residents and Businesses Impacted by Chelsea Explosion
  • Court Rejects Small Cities School Funding Lawsuit
  • Poll: Clinton Leads Trump 51 – 30 In New York State
  • PSC Approves New Area Code for Eastern Upstate New York
  • Political Update
  • Coming Up

U.S. Attorney, Attorney General Announce Corruption Charges Relating to State Economic Development Programs

In the third major political scandal to rock New York State government in less than two years, federal and state prosecutors have accused two former aides to Gov. Cuomo, another state official and executives from three private companies of numerous corruption charges relating to the awarding of hundreds of millions of dollars in state economic development contracts.

Last Thursday, U.S. Attorney Preet Bharara announced the release of a criminal indictment alleging that some of some of the state’s largest upstate development projects were tainted by self-dealing and bid rigging.  The 80-page criminal complaint laid out charges against nine defendants, including former Cuomo aide Joseph Percoco, lobbyist Todd Howe, and Alain Kaloyeros, the president of SUNY Polytechnic Institute.

The case began as an investigation of the Buffalo Billion economic development project.  The defendants are charged in a series of interconnected schemes in which Howe funneled some $320,000 to Percoco to give favored treatment to a developer and an energy company, and also worked with Kaloyeros to direct some $1 billion in projects to two developers.

There are no charges lodged against the Governor, nor have there been any allegations that he engaged in any wrongdoing.  However, one of the defendants had a central role in the Governor’s economic development efforts, and another was considered by the Governor to be a member of his family. Further, the complaint describes how the bribe-paying businesses also provided an airplane and political contributions to the Governor’s re-election campaign.

Referring to his prior convictions of the leaders of the State Senate and Assembly, Bharara said:

“Today’s charges shine a light on yet another sordid side of the show-me-the-money culture that has so plagued Albany.  It turns out the State Legislature does not have a monopoly on crass corruption in New York.”

Gov. Cuomo released a statement, which read in part:

“I learned this morning of the charges filed by the U.S. Attorney’s office that include a former member of my administration. If the allegations are true, I am saddened and profoundly disappointed. I hold my administration to the highest level of integrity. I have zero tolerance for abuse of the public trust from anyone. If anything, a friend should be held to an even higher standard. Like my father before me, I believe public integrity is paramount. This sort of breach, if true, should be and will be punished.”

In a separate complaint, state Attorney General Eric Schneiderman filed state corruption charges against Kaloyeros and an Albany-area developer alleging that Kaloyeros steered, or agreed to steer, the awarding of contracts to handpicked companies.

SUNY Chairman H. Carl McCall and Cuomo said Kaloyeros has been suspended from his position without pay.

Governor Announces Upstate Airport Improvements

Last Wednesday, Gov. Cuomo announced state funding for major renovations at two upstate airports, Greater Rochester International Airport and Elmira Corning Regional Airport.

The Rochester airport will receive $39.8 million for a redesign of the terminal building, new signage, enhanced security measures, new technology and additional shopping and dining options.  The Elmira Corning airport will have its passenger space increased by 25%; two new jet bridges to handle larger aircraft; an additional baggage claim belt; 300 new parking spaces; a new 3,000 square foot bar and restaurant among other new passenger amenities.

Gov. Cuomo said:

“Airports are the front doors to each region of our state, and they are critical to building on the momentum of our 21st century economy. Making investments in the future of upstate airports will provide new jobs and opportunities across New York, while helping attract residents, businesses, and visitors. This unprecedented transformation will equip the region with an airport of tomorrow and continue to push the Finger Lakes Forward.”

State Releases New Common Core Standards for Public Comment

Last Wednesday, the State Education Department (SED) announced that is has released a series of proposed revisions to the state’s version of the Common Core in attempt to revamp the math and English language arts standards.

State Education Commissioner MaryEllen Elia said:

“I thank our review committee members for taking the time to propose meaningful changes to improve the state’s learning standards. Teachers will be able to use these standards as a basis for developing their curricula and lesson plans to meet the needs of students in their classrooms. These changes reflect what I have heard from parents, teachers and administrators over the past year in my travels across the state. Now, we want to hear from educators and parents so we can develop the best learning standards to prepare New York’s children for their futures.”

SED will accept public comments on the draft standards through Nov. 4.

Comptroller:  State Tax Collections Down 3 Percent

Last Wednesday, State Comptroller Tom DiNapoli released his office’s latest cash report, which notes that state tax collections through August are down 3 percent compared to the same period in 2015.

Comptroller DiNapoli said:

“Personal income tax collections continue to lag while revenue from other tax sources was up.  Quarterly tax payments due in September will provide a better picture of the state’s revenue outlook for the remainder of the year.”

Governor Announces Emergency Grants for Residents and Businesses Impacted by Chelsea Explosion

Last Wednesday, Gov. Cuomo, joined by Senate Majority Leader John Flanagan and Assembly Speaker Carl Heastie, announced that the state make emergency grants available to businesses, homeowners and renters for uninsured losses and physical damage they have incurred as a result of last week’s Chelsea explosion.

Gov. Cuomo said:

“The state continues to work around the clock to assist all New Yorkers impacted by this act of terror and help this vibrant neighborhood return to normal.  We are making state emergency assistance available immediately to those who have suffered economically during the explosion, and we will continue to work closely with our local and federal partners to ensure New York’s thriving small business community has the resources they need. In the wake of this deplorable attack, New Yorkers have shown unparalleled bravery and resiliency – and we will continue to support them every step of the way.”

Court Rejects Small Cities School Funding Lawsuit

Last Monday, an acting State Supreme Court judge in Albany ruled that New York State has met its constitutional obligation to provide education aid to eight small city school districts.

The eight “small cities” —  Jamestown, Niagara Falls, Kingston, Mount Vernon, Newburgh, Port Jervis, Poughkeepsie and Utica – claim that the state has failed to adequately fund them in light of the Campaign for Fiscal Equity lawsuit that in 2007 found that New York City schools had been systemically shortchanged when it came to state aid.  All eight districts have low property wealth, higher than average local tax rates, significant family poverty and high student need.

The Court disagreed, finding that “the plaintiffs have failed to establish their claim that the state has not met its constitutional obligation to provide the students in the eight small city school districts with the opportunity for a sound basic education.”

The decision is expected to be appealed.

Poll:  Clinton Leads Trump 51 – 30 In New York State

According to a poll released on Tuesday by the Siena Polling Institute, Democratic presidential candidate Hillary Clinton leads Republican candidate Donald Trump 51 to 30 percent.  That reflects a four point gain for Trump over last month’s poll.  The poll also shows Trump improving his standing with suburban voters, with Clinton leading Trump 39-38, down from 42-31 last month.

The poll also shows incumbent U.S. Senator chuck Schumer leading his opponent, Wendy Long, 69-23.

Read the poll crosstabs here.

Comptroller:  College Student Loan Debt Doubled in New York Over Last Decade

Last Tuesday, State Comptroller Tom DiNapoli released a report on student loan debt which found that the average New Yorker with college loans owed $32,200 in 2015, more than the national average of $29,700. The report also finds that student loan debt more than doubled in the state during the last decade, increasing from $39 billion to $82 billion.

With student loan debt rising sharply as a proportion of all consumer debt, Comptroller DiNapoli is concerned that the rising debt burden could have a negative impact on the economy as a whole.  He said:

“New Yorkers from all walks of life have found higher education the path to a more satisfying and secure life. But many who take out student loans face real difficulties in paying back their debts.  New Yorkers saddled with college debt have less disposable income and often have to push off buying a home or saving for the future. Such struggles have implications not only for those individuals and families with such debt, but also for the state’s economy.”

 PSC Approves New Area Code for Eastern Upstate New York

Last Tuesday, the Public Service Commission (PSC) announced that a new area code number has been assigned for eastern upstate New York.

The new 838 area code, which is needed because the 518 area code is projected to run out of available telephone numbers by late 2017, will be activated by the third quarter of 2017.

 Political Update

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 state’s Sixth Annual MWBE Forum will be held October 5 and 6 in Albany.

The Public Service Commission (PSC) holds its next meeting on October 13.

The state Board of Regents holds its next meeting on October 17 and 18.

Election Day is Tuesday, November 8.