Plugged In @ Hinman Straub – March 22, 2017

Coverage of Albany and New York State government

  • Senate, Assembly Pass One House Budgets
  • Ad Campaign Promotes Governor’s Budget as ‘Middle-Class Recovery Act’
  • Governor Creates Plastic Bag Task Force
  • State Comptroller Reports on State’s Financial Sector
  • Governor Critical of President Trump’s Proposed Budget
  • Prosecutors Will Not Bring Charges Against de Blasio, Aides in Campaign Fundraising Probe
  • Political Update
  • Coming Up

Senate, Assembly Pass One House Budgets

The state budget process entered its next phase last Wednesday as the Senate and Assembly approved their respective one-house budget resolutions.  Each house expressed support for parts of the Governor’s budget proposal, while rejecting other aspects of it.

Highlights of the Senate’s one-house budget include funding for infrastructure investments; tax reductions; and continued fiscal discipline, and allowing the ‘millionaire’s tax’ to expire. (Read the Senate’s budget resolution.)

Highlights of the Assembly’s one-house budget include increasing taxes for people earning more than $1 million per year; expanding the Tuition Assistance Program (TAP); enacting the DREAM Act; and raising the age of criminal responsibility from 16 to 18. (Read the Assembly’s budget summary.)

Both houses would modify the Governor’s proposal to offer free tuition at public colleges in New York to some middle-class students and reject his proposal to force private colleges and universities to impose a ceiling on tuition increases or risk the loss of state aid for their students. They also reject the Governor’s proposal to require counties to prepare a shared services plan which would then go before voters; to allow movie theaters to sell alcohol; to increase sanctions for “bad apples” in the financial sector; and his proposal to change the state’s spending plan mid-year if state tax revenues and federal aid do not meet expected targets.

On Monday, lawmakers began the budget conference committee process to resolve differences between their respective budget plans.

Ad Campaign Promotes Governor’s Budget as ‘Middle-Class Recovery Act’

As state budget talks heat up, the State Democratic Party is on TV, radio and the internet with an ad campaign that highlights the Governor’s proposals for free public college tuition for families making up to $125,000; local government service consolidations; and increasing funding for public schools.

While not mentioning the Senate Republicans, the ad criticizes “the other side” for wanting to give “tax breaks to multi-millionaires” – a reference to the state’s high earner tax, which will expire at the end of 2017 unless it is extended.

Governor Creates Plastic Bag Task Force

Last week, Gov. Cuomo announced the launch of the New York State Plastic Bag Task Force, which has been charged with developing a report and proposed legislation “to address the detrimental impact of plastic bags on the state’s environment.”  The group was appointed after the state blocked New York City’s efforts to impose a five cent fee on non-reusable shopping bags.

The Task Force will be led by state Department of Environmental Conservation (DEC) Commissioner Basil Seggos, Senator Thomas O’Mara (R – Chemung County) and Assemblyman Steve Englebright (D-Suffolk County).  It also includes Stephen Acquario, Executive Director of the New York State Association of Counties; Marcia Bystryn of the New York League of Conservation Voters; and Michael Rosen of the Food Industry Alliance.

Gov. Cuomo said:

“New York has led the nation by taking bold action to protect our environment – and this task force marks another step forward in that effort.  The costly and negative impact of plastic bags on New York’s natural resources is a statewide issue that demands a statewide solution. This diverse coalition of experts will bring the experience and knowledge necessary to tackle this problem and safeguard New York’s environment for future generations.”

State Comptroller Reports on State’s Financial Sector

Last Wednesday, State Comptroller Tom DiNapoli released his office’s annual estimate of bonuses paid to securities industry employees who work in New York City during the traditional bonus season.  This year’s report finds that securities industry profitability rose by 21% in 2016, and the average bonus paid to employees in New York City’s securities industry increased by 1% to $138,210.

Comptroller DiNapoli said:

“Wall Street profits bounced back strongly in 2016. Lower costs more than made up for the continued decline in revenues.  Bonuses were up only slightly in New York City as the industry held the line on compensation. The jump in profitability is good news since the industry generates a significant amount of tax revenue for both the state and city budgets.”

Governor Critical of President Trump’s Proposed Budget

Last Thursday, Gov. Cuomo released a statement calling President Trump’s proposed federal budget “dangerous” and “reckless.”  The Governor criticized proposed funding cuts for the Gateway Tunnel project that would connect New York and New Jersey, as well as other transportation upgrades throughout New York.  He also noted that the budget proposal would cut funding for the National Institute of Health, the National Endowment for the Arts, the Clean Power Plan and for affordable housing programs.

Gov. Cuomo said:

“The Administration’s proposed budget is dangerous, reckless, and contemptuous of American values. It should be rejected by Congress out of hand. The proposal undermines policies and positions that have been cherished and defended by men and women of both parties, some for more than a century. It leaves behind the most vulnerable among us, and puts our environment, our infrastructure, and our future at risk.”

Prosecutors Will Not Bring Charges Against de Blasio, Aides in Campaign Fundraising Probe

Last Thursday, the Acting US Attorney for the Southern District of New York and the Manhattan District Attorney said that they have concluded their investigation into the campaign fundraising practices of New York City Mayor Bill de Blasio and will not bring any charges in the matter.

The two prosecutors’ offices had been investigating fundraising for de Blasio’s 2013 election campaign; by his now-defunct political non-profit, the Campaign for One New York; and the effort by de Blasio and his allies to raise money for Democratic State Senate candidates in 2014.  Federal officials were reportedly looking whether any favors were done for campaign donors, while state officials were looking into potential campaign finance violations.

The decision not to bring any charges in this matter appears to remove a cloud of uncertainty regarding Mayor de Blasio’s re-election efforts.  He is running for a second four-year term this fall.

Read more on this in our Elections, Lobbying, Ethics and Elections Compliance blog.

Political Update

Candidates Nominated in Races to Fill Vacant State Senate, Assembly Seats

Special elections to fill a vacant State Senate seat in Manhattan and a vacant Assembly seat on Long Island will be held on May 23rd.

The New York County Democratic Party has chosen Brian Benjamin, a real estate developer and chair of the Community Board 10, as the Democratic nominee for the vacant 30th Senate District seat.   Since there is no primary for special elections, gaining the Democratic nomination is tantamount to election in this overwhelmingly Democratic district.

In Long Island’s 9th Assembly District, Republicans have nominated Tom Gargiulo, a retired BOCES teacher and Wyandanch girls’ basketball coach as their candidate.  Democrats have nominated Christine Pellegrino, a local teacher and leader in the Opt Out movement that opposes Common Core testing in public schools.  Republicans have a solid enrollment advantage in the district.

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 Senate and Assembly are in through Thursday this week.

The state’s 2017-18 fiscal year begins on April 1.

The state Board of Regents holds its next meeting on April 3 and 4.

The Public Service Commission (PSC) holds its next meeting on April 20.

The State Board of Elections holds its next meeting on April 25.

The special elections to fill vacancies in the 30th Senate District (Manhattan) and the 9th Assembly District (Nassau/Suffolk) are scheduled for May 23.