Plugged In @ Hinman Straub – December 28, 2016

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Coverage of Albany and New York State government

  • Special Session Talks Fall Short
  • Governor Announces Opening of Second Avenue Subway Service
  • Governor Announces Cashless Tolling Plan
  • Bill to Shift Costs of Indigent Legal Services Delivered to Governor
  • Groups Call on State to Establish a Savings Plan for Private Employees
  • S. Attorney Announces Charges Against former State Pension Official in Bribery Scheme
  • State, Correctional Officers Reach Tentative Contract Agreement
  • Political Update
  • Coming Up

Special Session Talks Fall Short

Discussions between Gov. Cuomo and the Legislature regarding a possible special legislative session before the end of the year continued, but last Friday evening a tentative deal that was reached between the Governor and the two legislative leaders fell apart.

Any special session before the end of the year would have included a pay increase for state legislators and state agency commissioners.  Legislators, who currently have a base salary of 79,500, last received a pay increase in 1998.

The Governor has made it clear that he would not approve a legislative pay raise unless the Legislature addresses other issues as well, including procurement and ethics reforms; funding to address homelessness; and authorizing ridesharing services outside of New York City.

Governor Announces Opening of Second Avenue Subway Service

Last week, Gov. Cuomo announced that the new Second Avenue Subway will hold its inaugural ride on December 31, and that revenue service will begin at noon on January 1.  Trains will run from 6 a.m. to 10 p.m. through January 9, when overnight service will begin.

Gov. Cuomo said:

“New Yorkers have waited nearly a century to see the promise of the Second Avenue Subway realized, and after unrelenting dedication from thousands of hardworking men and women, the wait is over and the subway will open on December 31.  The on-time completion of this major, transformative project reaffirms confidence in government competence, increasing capacity on the nation’s busiest subway system, and delivering a new, vital transportation artery to millions of New Yorkers.”

Governor Announces Cashless Tolling Plan

Last Wednesday, Gov. Cuomo announced that high-speed open road, cashless tolling will be in place at all MTA-operated bridges and tunnels in the New York City region by the end of 2017.

The Governor also said that the state Department of Motor Vehicles will be adopting regulations which will result in the suspension of a registered vehicle owner’s registration for three toll violations over the course of five years, and the MTA will increase fines for the non-payment of tolls.  The Governor also said that the state will deploy 150 State Troopers at MTA bridges and tunnels.

Open road tolling relies on sensors and cameras that read E-ZPass tags and photograph license plates so that vehicles no longer have to stop to pay the toll. Vehicles with E-ZPass tags are automatically charged, while bills are mailed to the home address of non-E-ZPass users on a monthly basis.

Bill to Shift Costs of Indigent Legal Services Delivered to Governor

Last Tuesday, the Senate delivered S.8114 to Gov. Cuomo.  The bill would relieve counties of the cost of legal defense services for the poor, often referred to as “indigent criminal defense,” by having the state take over such costs via a phase-in by 2023.

In 1963, the U.S. Supreme Court ruled in Gideon v. Wainwright (372 U.S. 335) that the U.S. Constitution’s Sixth Amendment requires states to provide counsel to criminal defendants who cannot afford counsel on their own. Shortly thereafter, the New York State shifted the responsibility for bearing such costs to the counties.  The sponsors estimate that this bill, if approved, would save counties throughout the state about $155 million annually.

The state Association of Counties (NYSAC) argues that the bill will help reduce property taxes, and enable them to operate within the state‘s real property tax cap.

The Governor has until December 31st to either sign the legislation into law or veto it.

Groups Call on State to Establish a Savings Plan for Private Employees

Citing a survey showing support for the idea, AARP and other groups called on Gov. Cuomo to propose a state-administered workplace retirement savings option as part of his 2017-18 state budget proposal next month.

Under the proposal, the New York State Secure Choice Savings Program Act, every company in the state with more than 25 employees would be required to enroll their employees in the Secure Choice Retirement Savings Program if they do not offer their own retirement savings plan. Unless they opt out, employees would automatically contribute 3% of their wages into the program, although that amount could be adjusted. Employers would not be required to contribute to the plan.

AARP New York State Director Beth Finkel said:

“AARP New York urges Governor Cuomo to help small businesses and millions of mostly middle class private sector workers in New York by providing this effective way for employees to save their own money and create a financially secure future.”

Five states have enacted laws creating similar plans, including California, Connecticut, Illinois, Oregon and Maryland, though none have been fully implemented.

U.S. Attorney Announces Charges Against Former State Pension Official in Bribery Scheme

Last Wednesday, Southern District U.S. Attorney Preet Bharara announced charges against Navnoor Kang, a former portfolio manager at the New York state pension fund and two broker-dealers, for participating in an alleged “pay-for-play” scheme involving the fund.

The indictment charges that Kang, who was responsible for investing more than $53 billion in fixed income securities, accepted bribes in exchange for steering more than $2 billion in business to the brokers.  Kang accepted bribes in the form of “entertainment, travel, lavish meals, prostitutes, nightclub bottle service, narcotics, luxury gifts, and cash payments” among other things, in exchange for steering the business.

Comptroller DiNapoli said that he has ordered an internal review of his office’s hiring practices and oversight in the wake of the arrest.

State, Correctional Officers Reach Tentative Contract Agreement

Last Thursday, Gov. Cuomo announced that the state has reached agreement with the New York State Correctional Officers and Police Benevolent Association (NYSCOPBA) on a tentative contract agreement.  NYSCOPBA represents more than 20,000 employees in the Security Services Unit that provide for the safety and security of correctional facilities, mental hygiene facilities and other state agencies.

The agreement, which must be ratified by union members, provides for annual 2% pay raises for 2016 through 2019, and provides for “compensation enhancements” based on location of work and hazardous duties.  It also overhauls the disciplinary process for prison employees.  The state estimates that the agreement will save the state about $35 million on health insurance costs, and $35 million on overtime costs.

Gov. Cuomo said:

“This agreement fairly compensates the hardworking men and women who help keep our facilities safe, while at the same time provides the State the ability to appropriately discipline those that engage in the most serious misconduct.  These new reforms will ensure the highest standards of professionalism are upheld and I thank Michael Powers for his leadership in reaching this agreement on behalf of his members.”

Attorney General Reports on Professional Fundraisers

Last Thursday, State Attorney General Eric Schneiderman released his Charities Bureau’s annual report on professional fundraisers, Pennies for Charity. The report finds that of the nearly $1.1 billion raised from New Yorkers through campaigns conducted by professional fundraisers, charities received about $718 million, or 65.5%, of the proceeds, while professional fundraisers retained kept $379 million, or 34.5%.

Attorney General Schneiderman said:

“New Yorkers should know how their charitable dollars are being spent.  Our Pennies for Charity report shines a light on the portion of charitable dollars that is pocketed by outside fundraisers, and our Charities Bureau will hold unscrupulous or fraudulent fundraisers accountable.”

Political Update

Poll:  Majority of New York Voters Want Cuomo to Stand Up to Trump, Remain Governor

According to Quinnipiac University poll, Gov. Cuomo should “become a national leader challenging the policies of the Trump Administration,” but should not run for President in 2020.

Those polled belied, by a 48-40 margin, that President-elect Trump’s policies will be bad for New York State.  50 percent of those polled believe that Gov. Cuomo should become a national leader by challenging the President-elect Donald Trump’s policies, while 43 percent say he should not.  Those polled opposed Gov. Cuomo running for President in 2020, 56 – 36.

Marcellino Wins Re-Election

State Senator Carl Marcellino (R-Syosset) has won re-election to represent the 5th Senate District, which he has represented since 1995.  After a count of nearly 12,000 paper ballots, Marcellino holds a 1,534 vote lead, with some 500 ballots remaining.

While Democrats hold a majority in the State Senate — 32 of the Senate’s 63 seats – the decision of Brooklyn State Senator Simcha Felder to caucus with the GOP means that the Republicans will maintain control of the Chamber in 2017.

 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 2017 Legislative session will begin on Wednesday, January 4, 2017.

The State Board of Regents holds its next meeting on January 9 and 10.

The State Board of Elections holds its next meeting on January 9.

The Public Service Commission holds its next meeting on January 24.

The Joint Commission on Public Ethics (JCOPE) holds its next meeting on January 31.