Plugged In @ Hinman Straub – July 10, 2018

What’s Inside

Governor Directs SUNY, CUNY to Maintain Diversity and Inclusion Plans
Comptroller’s Report Warns of State Fiscal Challenges
State Encourages Banks, Credit Unions to Work with Medical Marijuana Businesses
State Lawmakers Join Call to Abolish ICE
State Stops Collecting Union Fees from State Workers
DMV Launches ‘REAL ID’ Awareness Campaign
Political Update
Coming Up

Governor Directs SUNY, CUNY to Maintain Diversity and Inclusion Plans

Last Thursday, Gov. Cuomo released an open letter to SUNY Board of Trustees Chair H. Carl McCall and CUNY Board of Trustees Chair William Thompson Jr. directing them to maintain their diversity and inclusion plans, which include using race as a factor in their admission policies in order to ensure campus diversity.

The Governor’s directive is in response to the Trump Administration’s recent announcement that it plans to rescind an Obama Administration order promoting diversity in higher education and instead require colleges and universities to adopt more race-neutral admission policies.

The Governor’s letter directs the SUNY and CUNY Chairs to continue existing policies that promote racial diversity and inclusion and to prepare a report by August 15 on how they will further expand and increase diversity on campuses.

The SUNY Board of Trustees released a letter expressing its commitment to increasing campus diversity.

Comptroller’s Report Warns of State Fiscal Challenges

Last week, State Comptroller Tom DiNapoli released an analysis of state’s fiscal year (SFY) 2018-19 Enacted Budget Financial Plan, which he says raises concerns in upcoming fiscal years. The Comptroller said the enacted budget financial plan projects that state spending will outpace revenues over the next three years, with potential budget gaps of $17.9 billion.

The report also notes that the budget includes some $6.7 billion in temporary and non-recurring resources, also known as “one shots,” and that the state has just $1.8 billion in its reserve fund.

Comptroller DiNapoli said:

“The state ended the last year with the largest General Fund balance in recent years, but continues to face real fiscal challenges. New York’s growing out-year gaps, shrinking debt capacity and the lingering threat of federal funding cuts cloud the horizon. Yet, there are no plans to add to our reserves, leaving the state with little cushion in the event of an economic downturn.”

A spokesperson for the Division of Budget said:

“The enacted budget builds on a record of fiscal responsibility that has held spending growth to two percent for a record eight years and lowered state debt from when the governor took office.”

State Encourages Banks, Credit Unions to Work with Medical Marijuana, Industrial Hemp Businesses

Last Tuesday, the state Department of Financial Services (DFS) issued guidance to New York State-chartered banks and credit unions that encourage them to provide banking services for New York’s regulated medical marijuana and industrial hemp businesses.

Many of these businesses are having difficulty finding financial institutions that will work with them because marijuana is still regulated under the federal Controlled Substances Act. As a result these businesses largely rely on cash to operate and often pay employees with cash, making them targets for criminals.

DFS’s guidance notes that the state has taken steps to create “a supportive economic development and regulatory landscape for companies interested in commencing medical marijuana and individuals or entities interested in conducting industrial hemp research. It states that the state will not take any regulatory actions against banking institutions that establish a relationship with legal medical marijuana and industrial hemp businesses.

Superintendent Maria Vullo said:

“DFS stands ready to work with our chartered institutions to assist them in moving forward towards helping New York’s medical marijuana and industrial hemp businesses operate in a safe and sound manner. New York’s financial institutions should provide banking services to these legal businesses, in accordance with established principles and procedures, including customer due diligence and transaction monitoring.”

State Lawmakers Join Call to Abolish ICE

In the wake of the Trump administration’s “zero tolerance” policy that required the separation of children of unauthorized immigrants from their parents, some Democratic state lawmakers are joining a national call for the abolition of the U.S. Immigration and Customs Enforcement (ICE).

ICE was created after the Sept. 11 terrorist attacks as part of the federal Department of Homeland Security (DHS). Some elected officials argue that the agency has been overzealous in enforcing Trump’s anti-immigrant agenda and lacks sufficient oversight. They say that ICE should be replaced with an organization focuses on protecting the nation’s borders rather than on arresting, detaining and deporting unauthorized immigrants.

This week, State Senator Michael Gianaris (D-Queens) and Assemblyman Felix Ortiz (D-Brooklyn) called for the elimination of the immigration enforcement agency. New York City Mayor Bill de Blasio and U.S. Sen. Kirsten Gillibrand have also joined the call.

State Stops Collecting Union Fees from State Workers

Following the U.S. Supreme Court’s recent Janus decision, state Comptroller Tom DiNapoli’s office said that the state will stop deducting “agency shop fees” for 31,000 state employees who have been paying the fees in lieu of union dues. Shop fees are previously mandatory payments from non-union members to cover their collective-bargaining costs borne by the union.

Some national groups are launching efforts to encourage more of New York’s public workers to leave their unions. Americans for Fair Treatment, an Oklahoma-based anti-union group with ties to conservative donors Charles and David Koch launched a New York-specific effort on Thursday. The group’s New Choice NY website includes an online form that allows state employees to easily opt out of their union.

State employee labor union have said they will make the case to their members for their continued membership.

DMV Launches ‘REAL ID’ Awareness Campaign

Last week, the state Department of Motor Vehicles (DMV) announced the launch of a REAL ID public awareness campaign and urged New Yorkers to get a REAL ID as soon as possible.

Under the federal REAL ID Act, domestic air travelers will need some form of Real ID to clear airport checkpoints beginning on October 1, 2020. Such identification includes a valid passport, a Global Entry or other Trusted Traveler program identification card, a border crossing card, or a state-issued Real ID or Enhanced driver’s license.

The Real ID requirements came from recommendations made by the 9/11 Commission. In 2005, Congress passed the Real ID Act, which set minimum federal standards for the issuance of sources of identification, such as driver’s licenses, and prohibits federal agencies from accepting for official purposes licenses and identification cards from states that do not meet these standards.

New York had applied for and received extensions to comply with the law, temporarily allowing the state’s standard driver’s license to be used as acceptable ID for flying and gaining entry to federal facilities. Those extensions will end on Sept. 30, 2020.

Political Update

Nixon Criticizes Cuomo for Trump Contributions

Last Thursday, Gubernatorial candidate Cynthia Nixon unveiled a digital ad and petition urging Gov. Cuomo to return the $64,000 in campaign donations that his prior campaigns received from President Trump between 2001 and 2009.

Gov. Cuomo has become a leading critic of President Trump and his policies, but said that he will not return the contributions. The Governor has repeatedly insisted that political contributions do not affect his policies or decision-making, and that he will continue to be outspoken in opposing President Trump’s agenda.

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

With the 2018 legislative session complete, lawmakers are not scheduled to return to Albany until next January.

The Joint Commission on Public Ethics (JCOPE) holds its next meeting on June 26.

The Public Service Commission (PSC) holds its next meeting on July 12.

The state Board of Regents holds its next meeting on July 16 and 17.

The state Board of Elections holds its next meeting on August 8.