Plugged In @ Hinman Straub – February 21, 2018

Coverage of Albany and New York State government

  • Governor Releases 30-Day Budget Amendments
  • Senate Republicans Release ‘Jobs and Opportunity’ Agenda
  • State Comptroller Issues Report on Executive Budget Proposal
  • Governor Announces Administration Appointments
  • State Attorney General Sues to Prevent Sale of Weinstein Company
  • Assembly Speaker Creates Workgroup to Address Sexual Harassment
  • Political Update
  • Coming Up

Governor Releases 30-Day Budget Amendments

Last Thursday night, Gov. Cuomo released his 30-day amendments to his Executive budget proposal.  The highlights of the amendments are proposals to change the state’s income tax system to counter what the Governor has said will be the harmful state fiscal impact of the recent GOP-led federal income tax overhaul on some state taxpayers.

The Governor’s proposal to address federal tax law changes includes:

  • a new Employer Compensation Expense Tax (ECET) in which employers would be able to opt-in to a new ECET system. Employers opting-in would be subject to a five percent tax on all annual payroll expenses in excess of $40,000 per employee, phased in over three years beginning on January 1, 2019. The state’s personal income tax system would remain in place, and a new tax credit corresponding with the value of the ECET would reduce the taxpayer’s personal income tax on wages and ensure that state filers subject to the ECET would not experience a decline in take-home pay. This proposal is intended to be revenue-neutral for the state, while giving employers the opportunity to prevent increases in their employees’ federal taxes;
  • creating two new state-operated Charitable Contribution Funds to accept donations for the purposes of improving health care and education in the state. Taxpayers who itemize their deductions could claim these charitable contributions on their Federal and state tax returns, and a taxpayer making a donation could also claim a state tax credit equal to 85 percent of the donation amount. The amendment authorizes school districts and other local governments to create charitable funds for education and health care. Donations to these funds would provide a reduction in local property tax bills (via a local credit) equal to a percentage of the donation; and
  • decoupling the state tax code from the federal tax code in some cases to avoid more than $1.5 billion in state tax increases that would result from increases in Federal taxes.

Other new proposals in the 30-day budget amendments include:

  • adding 19 fentanyl analogs to state’s controlled substances schedule;
  • adding additional types of synthetic marijuana to state’s controlled substances schedule;
  • $7 million to fund the implementation of 12 days of early voting
  • legislation to strengthen the ability of Department of Corrections and Community Supervision to discipline employees who have committed serious acts of misconduct;
  • prohibiting sexual contact between police officers and those in custody; and
  • addressing physician misconduct.

Senate Republicans Release ‘Jobs and Opportunity’ Agenda

Last Tuesday, the Senate Republican Majority released its ‘Jobs and Opportunity’ Agenda, the second part of its ‘Blueprint for a Stronger New York’ that focuses on job creation and improving the state’s business climate.  The agenda would lower small business taxes; reduce regulatory burdens; invest in workforce development; and strengthen the state’s economic development programs.

Specific proposals include:

  • reducing the amount small businesses and farms must pay in taxes by increasing the corporate tax threshold from $390,000 to $500,000 and lowering the rate to 2.5 percent;
  • eliminating the two-percent Gross Receipts Tax (GRT) on utility bills, resulting in $190 million in savings;
  • ending the START-UP NY program and redirecting its advertising funding toward other economic development efforts;
  • creating a searchable database of all state subsidy and economic development benefits;
  • creating an Independent Oversight Panel for all large public work projects and state procurements of $50 million or more;
  • reforming the state’s regulatory, licensing, and permitting processes to make them easier to understand, more responsive to businesses’ concerns; and
  • reforming the state’s workforce development efforts.

Senate Majority Leader John Flanagan said:

“Business owners throughout New York are in dire need of relief from an unsustainable tax and regulatory burden that restricts our state’s potential for continued success. Our Jobs and Opportunity Agenda will tackle these problems to create a better business climate by removing the obstacles to growth and investment, and ensuring economic development funding achieves the results New Yorkers deserve.”

State Comptroller Issues Report on Executive Budget Proposal

Last Wednesday, State Comptroller Tom DiNapoli released his analysis of the Executive Budget proposal, which raises concerns over budget language that he says could weaken checks and balances over public spending.

The report notes that actions being taken in Washington “pose a real risk to New York’s finances.”  It also highlights proposed language that would grant the Division of Budget the authority to reduce state spending if projected revenues decline by more than $500 million. DiNapoli said:

“While the wide-ranging array of measures to expand Executive flexibility could mitigate Financial Plan risks, the effects of their implementation on State programs, local governments and individual New Yorkers remain unclear.  Such proposals also raise questions regarding checks and balances over major decisions involving public dollars.”

Governor Announces Administration Appointments

Earlier today, Gov. Cuomo announced that he has appointed Lourdes Zapata to serve as Chief Diversity Officer, and Linda Sun to serve as Deputy Chief Diversity Officer.

Ms. Zapata previously served as Executive Vice President/Executive Director of the Division of Minority and Women’s Business Development at Empire State Development.  Ms. Sun previously served as Director of External Affairs at Global New York and as Director of Asian American Affairs for the Office of the Governor.

Gov. Cuomo said:

“This administration has worked tirelessly to promote policies that reflect that diversity is our greatest strength and to ensure a stronger and fairer New York for all.  I am proud to welcome these talented professionals to their new roles on our team to help ensure that our policies and hiring reflect the strength of our communities. I look forward to working with them to continue to move the Empire State forward.”

State Attorney General Sues to Prevent Sale of Weinstein Company

Last week, State Attorney General Eric Schneiderman announced that his office has filed a civil rights lawsuit against The Weinstein Company (TWC) and its principals Harvey and Robert Weinstein, alleging “egregious violations” of the state’s human rights and business laws. (Read the lawsuit here.)

Schneiderman’s office launched an investigation into the TWC in October as accusations of sexual harassment and assault against Harvey Weinstein — and a subsequent cover-up — began to surface. The lawsuit alleges that the company’s management had knowledge of Harvey Weinstein’s alleged misconduct for years but declined to investigate multiple complaints or take steps to protect employees from “pervasive sexual harassment, intimidation and discrimination” and to prevent future incidents.

Attorney General Schneiderman said:

“As alleged in our complaint, The Weinstein Company repeatedly broke New York law by failing to protect its employees from pervasive sexual harassment, intimidation, and discrimination. Any sale of The Weinstein Company must ensure that victims will be compensated, employees will be protected going forward, and that neither perpetrators nor enablers will be unjustly enriched. Every New Yorker has a right to a workplace free of sexual harassment, intimidation, and fear.”

Assembly Speaker Creates Workgroup to Address Sexual Harassment

Last Wednesday, Assembly Speaker Carl Heastie announced the creation of a new, 15-member workgroup that will “examine various sexual harassment issues and policy responses during the 2018 legislative session.”

Speaker Heastie said:

“Sexual harassment must be confronted head-on.  I look forward to the recommendations of this workgroup so that we can develop a statewide legislative solution to this very serious problem.”

Political Update

Senate Majority Leader Endorses DeFrancisco in Governor’s Race

Last Tuesday, Senate Majority Leader John Flanagan “enthusiastically” endorsed Senator John DeFrancisco in the race for governor, calling the Republican conference’s deputy leader a “smart, strong and principled leader” who “will make an outstanding governor.”

New York City Councilmember Announces Run for Lt. Governor

On Friday, New York City Councilmember Jumanne Williams (D-Brooklyn) announced that he is running for Lt. Governor, challenging fellow Democrat Kathy Hochul.

In a statement on his web site, Williams said:

“I am running to be the voice of the people in state government. As your Lieutenant Governor, I will be an independent advocate for all New Yorkers.  I will make certain that our Governor and elected officials uphold their promises to you and will hold them accountable for the actions they take. Together, we can ensure that New York State is a beacon for progressive leadership, equality, and justice for all people.”

State Expected to Move Primary Date to Sept. 13

Both houses of the Legislature have approved a measure changing the date of this year’s state and local primaries, from Sept. 11 to Sept. 13.  In addition to the anniversary of the 2001 terrorist attacks, Sept. 11 also falls on the last day of Rosh Hashanah this year.

Gov. Cuomo is expected to sign the bill into law.

WFP Endorses IDC Challengers

The state’s Working Families Party (WFP), a small but influential third party, announced this week that it will support three candidates in Democratic primaries against incumbent Democratic State Senators who are members of the Senate’s Independent Democratic Conference (IDC).

The WFP has endorsed Jessica Ramos, who is challenging Senator Jose Peralta in the 13th Senate District in Queens; Alessandra Biaggi, who is challenging IDC Leader Senator Jeff Klein in the 34th Senate District in the Bronx and Westchester; and Rachel May, who is challenging Senator David Valesky in the 53rd Senate District in Central New York.

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 Legislature is off this week.  Lawmakers return to Albany on Tuesday, February 27.

The Public Service Commission (PSC) holds its next meeting on February 22.

On February 23, Senators David Carlucci (D – Rockland County) and Jesse Hamilton (D –Brooklyn) are holding a public forum in Manhattan “to gain insight on the logistics and organization of cryptocurrency; its regulation through the BitLicense in the state of New York, other states and on a federal level; and the current marketplace in which it thrives and becomes problematic for consumers.

The Joint Commission on Public Ethics (JCOPE) holds its next meeting on February 27.

The State Board of Elections holds its next meeting on March 1.

The 2018-19 State Fiscal year begins on April 1.