Plugged In @ Hinman Straub – July 29, 2016

PluggedInMastheadCoverage of Albany and New York State government – July 29, 2016

  • Governor Announces New York City Subway Upgrades
  • State Property Tax Cap to Remain Below One Percent
  • Comptroller Report Finds Potential Future State Budget Gaps
  • Chief Judge Appoints Task Force on State Constitution
  • Comptroller Report Finds Future Budget Gaps
  • Attorney General Will Not Comply With Congressional Subpoena
  • Attorney General Sues Automakers for Violations of State Environmental Laws
  • Commission on Judicial Nomination Seeks Court of Appeals Nominees
  • Commission on Legislative, Executive Pay Meets
  • Political Update
  • Coming Up

 

Governor Announces New York City Subway Upgrades

Last week, Gov. Cuomo announced that the Metropolitan Transportation Authority (MTA), which operates the New York City subway system, will add 1,025 subway cars, some with new design features intended to reduce wait times and increase capacity, and will upgrade 31 subway stations throughout the system.

Gov. Cuomo said:

“New York deserves a world-class transportation network, worthy of its role as the heartbeat of the 21st century economy. The MTA design team developed a bold and visionary reimagining of the quintessential commuter experience, incorporating best practices from global transit systems, and focusing on our core mission to renew, enhance and expand. We are going to do more than renovate – we are bringing subway stations to a higher standard than ever before, and the new vision for subway cars will increase capacity and reduce overcrowding and delays. I congratulate the MTA for thinking creatively and working with the kind of passion and urgency it takes to move this state forward.”

 

State Property Tax Cap to Remain Below One Percent

Last week, state Comptroller Tom DiNapoli announced that the property tax levy growth for local governments will be capped at less than one percent for the second consecutive year.

For 2017, property tax levy growth for local governments will be capped at 0.68 percent, a slight decrease from 2016, when it was 0.73 percent.  The latest inflation figure affects the tax cap calculations for local governments that operate on a calendar-based fiscal year which includes all counties, towns, fire districts, 44 cities and 10 villages.

Comptroller DiNapoli said:

“In what is becoming the norm, New York’s local governments must cope with extremely limited growth for property taxes to stay within the tax cap.  Low inflation has positive effects for consumers, but it also reflects an uncertain economic environment. Local officials have faced growing fixed costs and limited budget options for years, but 2017 will necessitate even tougher financial choices.”

 

Comptroller Report Finds Potential Future State Budget Gaps

Last week, State Comptroller Tom DiNapoli announced the release of a report analyzing the state’s Financial Plan which shows the possibility of state budget shortfalls in upcoming state fiscal years due to spending increases, phased-in tax cuts and one-shot revenue sources in the current-year spending plan. The report estimate that, based on Division of Budget (DOB) projections, the state faces potential budget gaps averaging just under $5 billion annually over the three fiscal years starting in state fiscal year 2017-18.

Comptroller DiNapoli said:

“New York is facing the prospect of out-year budget gaps.  New York’s rainy day reserves are at low levels compared to many states and the use of temporary resources to meet recurring expenses contributes to the state’s potential out-year budget shortfalls. More must be done to promote long-term structural balance and ensure that taxpayers’ dollars are used cost-effectively.”

The Division of Budget rejected the report’s findings, rebuked the report, saying that the Comptroller “is cherry picking data and ignoring key details in its reporting,” said DOB

A spokesperson for DOB said:

“The truth is the State’s fiscal position is sound and it enjoys its highest credit rating in decades. The enacted budget held spending growth to 2% for the sixth consecutive year and the Governor’s commitment to spending restraint has led to higher reserves and reliable funding for key State programs, including education and health care.”

 

Chief Judge Appoints Task Force on State Constitution

Last week, Chief Judge Janet DiFiore announced the appointment of the Judicial Task Force on the New York State Constitution in anticipation of the 2017 elections, when New York voters will have the opportunity to vote on whether there should be a constitutional convention.

The 15-member Task Force will be co-chaired by Supreme Court Justice Alan Scheinkman, Administrative Judge for the Ninth Judicial District and Dennis Glazer, retired partner at Davis Polk & Wardwell. (Mr. Glazer is Judge DiFiore’s spouse.)

Chief Judge DiFiore said:

“I am grateful to the distinguished individuals comprising the Judicial Task Force on the New York State Constitution for so generously offering their time − and their enormous skills and experience − to this important endeavor. I look forward to their insights and recommendations.”

 

Attorney General Will Not Comply With Congressional Subpoena

New York State Attorney General Eric Schneiderman will not comply with a congressional subpoena for records regarding his office’s investigation into whether Exxon Mobil misled investors about climate change risks.  Schneiderman’s office is leading an investigation that also includes attorneys general in California, Connecticut, Illinois, Maryland and Massachusetts.

In a letter to the Chair of the House Committee on Science, Space and Technology, Schneiderman’s counsel said that the committee’s subpoena violates the state’s 10th Amendment right to sovereign immunity and would interfere with the investigation.

Schneiderman’s counsel did say that his office is willing to discuss the issue with the committee to see whether some of the information the committee is seeking can be provided to it.

 

Attorney General Sues Automakers for Violations of State Environmental Laws

Last week, State Attorney General Eric Schneiderman announced that his office, in conjunction with the Attorneys General of Massachusetts and Maryland, have sued Volkswagen, Audi and Porsche over their over diesel emissions cheating.  The lawsuit alleges that the automakers defrauded their customers, deceived regulators and then tried to cover up their actions.

Attorney General Schneiderman said:

“The allegations against Volkswagen, Audi and Porsche reveal a culture of deeply-rooted corporate arrogance, combined with a conscious disregard for the rule of law and the protection of public health and the environment,”. “These suits should serve as a siren in every corporate board room, that if any company engages in this type of calculated and systematic illegality, we will bring the full force of the law—and seek the stiffest possible sanctions—to protect our citizens.”

A copy of the New York complaint can be found here.

 

Commission on Judicial Nomination Seeks Court of Appeals Nominees

The state Commission on Judicial Nomination announced last week that it is seeking recommendations and applications of persons who may be qualified to serve as Associate Judge of the Court of Appeals, the state’s highest court.

A vacancy will be created on the seven-member panel on January 1, 2017, when Associate

Judge Eugene Pigott, Jr.’s retires.  Under the State Constitution, Judges of the Court must retire at the end of the year in which they turn seventy.

The Commission will review applications, and nominate to the Governor three to seven well-qualified candidates.  The Governor must nominate one of these candidates, whose nomination must then be approved by the State Senate.

 

Commission on Legislative, Executive Pay Meets

On Tuesday, the state Commission on Legislative, Judicial, & Executive Compensation met to continue its discussions relating to pay raises for state lawmakers and government officials.  These officials have not had a pay increase since 1999.

One possibility, based on inflation since 1999, would be to increase legislative salaries from $79,500 annually to $116,900.  Using this formula, the Governor’s salary would increase from $179,000 to $263,200, with state agency heads being paid up to $200,000, with lower salaries for the leaders of smaller agencies.

Commission members also discussed whether state legislator are part-time or full-time, and whether they should be permitted to earn other income in addition to their legislative salaries.

The Commission will meet again on September 22.

 

Political Update

Poll:  Clinton Holds Large Lead Over Trump in New York

A Quinnipiac University poll released last week shows Democrat Hillary Clinton leading Republican Donald Trump 47 – 35 percent among all New York State voters.

Clinton leads 63 – 20 percent in New York City, while Trump leads 48 – 36 percent Upstate.  The two are nearly tied in the suburban New York City region, with Trump leading 40 – 39 percent.

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

The Public Service Commission (PSC) holds its next meeting on August 1.

On Wednesday, August 3, the Assembly Committee on Economic Development, Job Creation, Commerce and Industry will hold a public hearing to review to review the implementation of the 2016-2017 State Budget and its impact on the performance of the programs under the committee’s the purview.

The State Board of Elections holds its next meeting on Friday, August 5.

The Joint Commission on Public Ethics (JCOPE) holds its next meeting on August 9.

The Board of Regents holds its next meeting on September 12 and 13.

Primary elections will be held on Tuesday, September 13.