Plugged In @ Hinman Straub – July 31, 2020

What’s Inside

• Governor Warns High Tolls And Transit Fares Without Federal Aid
• $3 Billion Environmental Bond Act Delayed
• Governor Announces $94 Million For School Technology Upgrades
• Interim State Education Commissioner Resigns
• State Pension Fund Down 2.68%
• Minor Parties Sue State Over New Ballot Requirements
• Reminders, and Links
• Coming Up

Governor Warns Of Need For Federal Aid

Governor Cuomo this week warned that without federal aid the cost of tolls and transit fares would have to increase significantly in order to maintain operations. The Governor also said the state has a $14 billion budget gap in 2021 and a $16 billion dollar gap in 2022 and that without $30 billion in federal aid over the next two years, schools, local governments, and hospitals would have to sustain 20% cuts.

Legislative leaders announced their support for increasing taxes on millionaires and billionaires this week, without signaling support for any particular piece of legislation. The Governor has voiced his opposition to increasing taxes on the wealthiest, citing concerns of losing such a large portion of the state’s tax base if they move to other states to avoid the increase.  The federal stimulus bill currently being negotiated in Washington will play a major factor in what happens next.

Senate Majority Leader Andrea Stewart-Cousins said:

“We are all hurting and this crisis calls for multimillionaires and billionaires to help our state shoulder this extraordinary burden. While there is no single action that will solve all our problems, we shouldn’t be looking to the already overburdened working and middle class to solve the crisis. The Senate has created a revenue working group that has been diligently developing proposals over the last few months that will help guide our approach.”

$3 Billion Environmental Bond Act Delayed

This week, the Governor announced the $3 billion Restore Mother Nature Bond Act will be delayed and not included on the ballot in November. The Governor cited COVID’s impact on the economy as the reason for the delay. The Governor said he would pursue the bond act in the future, when the state is on more stable financial ground.

Bill Ulfelder, New York executive director of The Nature Conservancy said:

“While it is clear that the pandemic has had a serious impact on the economy of our state and the nation, this measure was an opportunity to create jobs and conserve the clean water, clean air, and natural resources our children and grandchildren depend on.”

Governor Announces $94 Million For School Technology Upgrades

Governor Cuomo announced the approval of 148 Smart Schools Investment Plans aimed at improving school security and reimagining teaching and learning for the 21st century. The approved plans, totaling $94 million, are part of the $2 billion Smart Schools Bond Act.

The plans approved were submitted by 131 school districts and five special education schools. Projects include $52.2 million for classroom technology, $13.7 million for school connectivity, $24.9 million for high-tech security and $2 million for pre-kindergarten classrooms. A summary of the plans is available here. 

Governor Cuomo said:

“As the ongoing public health crisis has shown, now more than ever we must do everything possible to help schools modernize their infrastructure and are equipped to keep students up with their studies even when they can’t be in the classroom. With this funding, we are helping schools navigate the pandemic while expanding opportunities and providing students with the skills and technology they need to succeed in the 21st century economy.”

Interim State Education Commissioner Resigns

The Board of Regents Chancellor Betty Rosa announced this week that Shannon Tahoe, the Interim SED Commissioner, would be stepping down from the position on August 13. Tahoe assumed the role of Interim Commissioner after the departure of Commissioner Elia last year. The Board is expected to appoint an Acting Commissioner prior to Tahoe’s departure on August 13, while it continues its search for a permanent replacement.

Chancellor Rosa said in a statement:

“The Board and I thank Interim Commissioner Tahoe for her leadership during this unprecedented time. When Ms. Tahoe took over the position, no one could have imagined that a global pandemic was on the horizon. Ms. Tahoe capably led the Department through one of its most challenging times and proved herself as a dedicated and personable leader. Throughout her 14 years at the Department, Ms. Tahoe served the Board of Regents and Department well with her expert legal counsel on critical policy matters and key initiatives. We wish her well in her next chapter.”

State Pension Fund Down 2.68%

State Comptroller Tom DiNapoli announced the New York State Common Retirement Fund had a -2.68 percent return on investments in the state fiscal year that ended on March 31, 2020, reflecting a decrease as a result of the COVID-19 pandemic. The Fund ended its fiscal year during the early outbreak of the pandemic in the United States with a value of $194.3 billion.

The Comptroller said:

“Despite very solid returns through February, the coronavirus sent markets into a tailspin just as we were closing the books on our fiscal year. The Fund has already recovered much of those losses, but volatility and uncertainty will persist until our public health crisis is resolved. Fortunately, the state’s pension fund entered this crisis as one of the strongest in the nation, and remains well-positioned to weather these challenging times and provide retirement security for our members for years to come.”

Minor Parties Sue State Over New Ballot Requirements

The Green and Libertarian parties filed a lawsuit in federal court challenging the new threshold for party status as proposed by the Public Finance Commission and later codified by the Legislature in the budget. Prior to this year, minor parties needed to secure at least 50,000 votes for their gubernatorial candidate every four years. If they achieved 50,000 on their ballot line, they would be considered a party and have a ballot line until the next gubernatorial election, where they would again need to qualify.

Under the new law, minor parties would need to qualify every two years in both presidential and gubernatorial election years. In addition, the threshold was increased to 130,000 votes rather than 50,000 votes for their candidate. This was widely criticized by most of the minor parties at the time as only the Conservative Party would routinely meet that threshold when considering prior year elections. The minor parties allege the new law is an infringement upon their First and Fourteenth Amendment rights to organize, identify, and vote for minor parties under the United States Constitution, and that the new voter and petitioning requirements are therefore unconstitutional.

Reminders and Links

City & State NY’s This Week’s Biggest Winners and Losers here.

City & State NY’s 2020 The Power of Diversity: Asian 100 here.

Seven takeaway’s from New York’s June 23rd Democratic primaries here. 

City & State NY’s How Far Left Are New York’s Rookie Democrats? Here.

Coming Up

Joint Senate and Assembly hearings on residential health care facilities and covid-19 will be held on August 3 and August 10.

A Joint Assembly and Senate hearing on elections in a pandemic will be held on August 11.

The Board of Regents will hold their next meeting on August 11.

JCOPE will hold its next meeting on August 11.

A Joint Senate and Assembly hearing on hospitals and COVID-19 will be held on August 12.

The Public Service Commission will hold its next meeting on August 13.

A Joint Senate and Assembly hearing on impact of COVID-19 on workers will be on August 13.

A Joint Senate and Assembly hearing on how COVID-19 impacts New York’s veteran community will be held on August 14.

A Joint Senate and Assembly hearing on COVID-19 and the MTA will be on August 25.