Plugged In @ Hinman Straub – April 1, 2016
Coverage of Albany and New York State government – April 1, 2016
What’s Inside
- Legislature Approves 2016-17 State Budget
- Good Government Groups Complain About Budget Secrecy, Lack of Ethics Reform
- Attorney General Announces Launch of Coalition to Address Climate Change
- Governor Announces Global NY Fund Tour
- Political Update
- Coming Up
Legislature Approves 2016-17 State Budget
Governor Cuomo and legislators worked around-the-clock in recent days, ultimately reaching a final agreement on the state’s 2016-17 spending plan Thursday night.
The Senate worked through Thursday night and completed its work on the budget at around 9:30 this morning. The Assembly, which did not work through the night, is still debating the bills as of this writing. The Assembly is expected to conclude its work later this evening…
Read Governor Cuomo’s announcement regarding the budget agreement here, and watch his budget press conference from Thursday night here. Read the Senate Majority’s press release on the budget here.
While the state budget should technically have been in place before April 1, most observers consider this year’s budget to have been enacted “on-time.” For the sixth straight year, the state budget adheres to the Governor’s self-imposed two-percent spending cap.
Highlights of the enacted budget include:
- Minimum Wage Increase: the state will increase the minimum wage to $15 in New York City by the end of 2018 and in Westchester and Long Island by the end of 2021; and to $12.50 in the rest of the state by the end of 2021 with future increases determined by a state formula. There will also be studies along the way to determine the impact on the higher minimum wage on the economy, and the Governor would have the ability to delay the minimum-wage increases if the economy tanks.
- Paid Family Leave Program: the state will create a paid-family leave program beginning in 2018. The program, which will be funded by workers, will begin at 8 weeks of paid leave, before increasing to 12 weeks. It is not clear what the program will cost employees, but the Governor has suggested that it will initially cost about .70 cents per week. To be eligible, employees will have to be employed for six months. Once it is fully phased in, New York’s program will be the most expansive in the nation:
- Environmental Protection Fund: The enacted budget increases funding for the EPF to $300 million.
- Tax Reductions: beginning in 2018, state personal income taxes will be reduced annually for “middle class” taxpayers – persons earning between $40,000 and $300,000 per year.
- Education Aid: the enacted budget provides $24.8 billion in school aid — a $1.5 billion increase in school aid, including a $627 million increase in Foundation Aid, and the elimination of the remaining $434 million in Gap Elimination Adjustment (GEA). The budget plan also includes $175 million for “community schools” and will increase support for charter schools by $54 million.
- Sixth Round of Regional Economic Development Councils: The enacted budget includes funding for a sixth round of Regional Economic Development Councils (REDCs).
- Transportation Infrastructure: the budget allocates, over five years, $27.14 billion for state Department of Transportation (DOT) and Thruway Authority programs, and $27.98 billion for Metropolitan Transportation Authority (MTA) programs.
Now that the budget bills have been passed by both houses of the Legislature, Gov. Cuomo must sign them into law. He is expected to do so in the near future.
Read a list of “budget winners and losers” from the Syracuse Post-Standard.
Good Government Groups Complain About Budget Secrecy, Lack of Ethics Reform
On Monday, when few details regarding the state budget were available to the public, good government groups complained that the budget was being negotiated behind closed doors. NYPIRG, Citizens Union, Common Cause New York, the League of Women Voters, and Reinvent Albany said that while this is common in Albany, this year’s budget process has been even more opaque than in previous budget cycles.
The groups also criticized the Governor and the Legislature for not including an ethics reform package as part of the budget. Gov. Cuomo had proposed, in conjunction with his Executive Budget, a ‘Good Government and Ethics Reform’ package.
Dick Dadey, executive director of Citizens Union, aid:
“We are three and a half months out from when Shelly Silver and Dean Skelos were convicted of corruption, and not one — not one — piece of ethics reform legislation has passed and been enacted. And it looks like we’re not going to see it here in this budget, even though we were promised by this governor with a long list of ethics reforms that he wanted to see happen.”
Attorney General Announces Launch of Coalition to Address Climate Change
On Tuesday, New York State Attorney General Eric Schneiderman announced that he and 17 other Attorneys General from across the country “are exploring ways in which they can work together on key climate change-related initiatives, specifically ongoing and potential investigations into whether fossil fuel companies misled the public and investors about the risks of climate change.”
Most of the states involved have worked together in the past on multi-state climate-change efforts, including pressing the EPA to limit climate change pollution from fossil-fueled electric power plants, defending federal rules controlling climate change emissions from large industrial facilities, and pushing for federal controls on emissions of the potent greenhouse gas methane.
Attorney General Schneiderman said:
“With gridlock and dysfunction gripping Washington, it is up to the states to lead on the generation-defining issue of climate change. We stand ready to defend the next president’s climate change agenda, and vow to fight any efforts to roll-back the meaningful progress we’ve made over the past eight years. Our offices are seriously examining the potential of working together on high-impact, state-level initiatives, such as investigations into whether fossil fuel companies have misled investors about how climate change impacts their investments and business decisions.”
Governor Announces Global NY Fund Tour
On Wednesday, Gov. Cuomo announced the launch of the Global NY Fund Tour, informational sessions being held throughout the state by Empire state Development “to inform small- and medium-sized businesses and non-profits about new resources available to support international export efforts.”
Gov. Cuomo said:
“This program makes it easier for businesses across the state to find new opportunities to grow in markets around the globe – which helps them thrive and create jobs here at home. I’m proud that our administration is helping New York’s private sector compete beyond our borders, and I look forward to seeing more of our state’s businesses succeed on the international stage.”
Empire State Development offers loans of up to $500,000 to enable companies to purchase equipment and inventory to deliver on export-related contracts and provide working capital to support foreign accounts receivable, as well as grants of up to $25,000 to help companies start exporting or increase their global exports.
Political Update
Poll: Trump, Clinton Lead in New York Primary
According to a Quinnipiac University poll released on Thursday, Republican Donald Trump and Democrat Hillary Clinton hold double-digit percentage point leads over their rivals for their party’s presidential nominations in the April 19 New York primary.
The poll found that Clinton, who represented New York in the U.S. Senate, leads Vermont Senator Bernie Sanders 54% to 42%. It also shows Trump with 56%, leading Texas Senator Ted Cruz (with 20%) and Ohio Governor John Kasich (with 19%).
New York’s presidential primary is often held too late in the nominating season to impact the outcome of either party’s race for the nomination. However, this year no major party candidate has secure enough delegates to win the nomination, resulting in a meaningful race in New York.
WFP to Mobilize Support for Sanders
The state’s Working Families Party (WFP) announced this week that it plans a “full-throated mobilization” on behalf of presidential candidate Bernie Sanders ahead of the state’s April 19 presidential primary.
The labor-backed organization endorsed Sanders over former Secretary of State Hillary Clinton last December. The WFP’s leadership said that it has been working to build a grassroots organizing campaign for the Vermont senator.
Cronin to Challenge Hannon Again
Nassau County Democrat Ryan Cronin, who lost a close race to Senator Kemp Hannon (R-Garden City) in 2012, has said that he plans to challenge the 14-term incumbent again this fall.
Cronin, a commercial litigator from Garden City, lost 52% – 48% to Hannon in 2012.
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
Today is the first day of the state’s 2016-17 fiscal year.
The Senate and Assembly are scheduled to be in Albany session Monday through Wednesday, next week, April 4 through 6.
On Thursday, April 7, the Assembly committees on Insurance and Health are holding a public hearing “to evaluate the process of modifying or enhancing health insurance coverage requirements under the Affordable Care Act.”
On Monday, April 11, the Assembly committees on Banks, Small Business and Consumer Affairs and Protection are holding a public hearing on small business online lending practices.
The Public Service Commission (PSC) holds its next meeting on April 12.
The Board of Regents holds its next meeting on April 18 and 19.
New York’s Presidential Primary is April 19, as are the special elections for the 9th Senate District (to replace Dean Skelos), the 59th Assembly District (to replace Roxanne Persaud), the 62nd AD (to replace Joe Borelli) and the 65th AD (to replace Sheldon Silver).
The Gaming Commission holds its next meeting on April 25.
The Joint Commission on Public Ethics (JCOPE) holds its next meeting on Tuesday, April 26.