Plugged In @ Hinman Straub – March 25, 2016

Coverage of Albany and New York State government – March 25, 2016

What’s Inside 

  • State Budget Update
  • Board of Regents Elects New Chancellor
  • New York to Legalize Mixed Martial Arts
  • Daily Fantasy Sports Sites to Stop Operating in New York, Temporarily
  • Port Authority to Upgrade LaGuardia Airport, Build New Manhattan Bus Terminal
  • State Contractor Will Pay Fine For Illegal Outsourcing
  • Political Update
  • Coming Up

 

State Budget Update

Even with the April 1 state budget deadline approaching, this week started slowly in Albany.  But after negotiations regarding the Governor’s proposal to increase the state’s minimum wage to $15 per hour appeared to advance, discussions on the overall budget began moving forward as well.

On Wednesday afternoon, legislative leaders released the “table targets” for each of the budget conference committees.  While lawmakers left Albany for the holiday weekend, negotiations among the Governor and the legislative leaders are expected to continue through the weekend. Staffs are working through the Easter holiday weekend with an eye toward starting to introduce budget bills Monday so passage can begin next Thursday.

With respect to the proposal to increase the state’s minimum wage, potential compromises, trade-offs and carve-out were floated this week.  Business groups continued to call for lawmakers to reject any increase, while advocates urged them to approve the Governor’s proposal for a statewide $15 per hour minimum wage, phased in over three years in New York City and over six years elsewhere in the state.

As of this writing, it is unclear whether any agreement will be reached on the issue.

Lawmakers are trying to complete the state’s sixth consecutive on-time budget.

 

Board of Regents Elects New Chancellor

On Monday, the state Board of Regents elected Betty Rosa to as leader of the state’s education policymaking body.  Rosa, a former superintendent from the Bronx, replaces Merryl Tisch, who is stepping down from the board after 20 years, the last seven as its leader.  The board elected T. Andrew Brown as vice chancellor.

The election of Chancellor Rosa is expected to result in a significant change in leadership from her predecessor.  She has been critical of standardized testing and the Common Core learning standards, as well as test-based evaluations for teachers.

Chancellor Rosa said:

“We need to re-conceptualize the work that we’ve been doing, particularly around the issue of equity and social justice.  Our work must reflect the changes in society. Our work must reflect the collective vision of 21st century learning.”

 

New York to Legalize Mixed Martial Arts

On Tuesday, the Assembly approved a bill to legalize professional mixed martial arts (MMA) in New York.  Gov. Cuomo has indicated that he will sign the bill, which the Senate has already approved. When he does so, New York will become the last state in the nation to permit the sport.

MMA opponents argue that the state should not authorize the sport because it is too violent.  Supporters argue the MMA is a legitimate sport with a fan base in the state, and holding bouts here will result in tax revenue for the state.

Once the Governor signs the bill into law, the State Athletic Commission will have 120 to develop regulations to govern the sport before professional fights can be conducted.

 

Daily Fantasy Sports Sites to Stop Operating in New York, Temporarily

On Monday, Attorney General Eric Schneiderman and the two largest daily fantasy sports operators announced that they have entered into agreements under which the companies will stop operating in New York at least through the end of June.

The two sides agreed to ‘pause’ their lawsuit in which the Attorney General has accused them of illegally taking bets until the end of June, which will give the Legislature the opportunity to enact legislation regulating daily fantasy sports (DFS) in New York.

Under the agreement, the companies agree to abide by a pending appellate Division decision on the legality of the games.  The agreement also allows the Attorney General to continue to pursue actions accusing the companies of false advertising and consumer fraud.

 

Attorney General Schneiderman said:

“I’m pleased to announce that both FanDuel and DraftKings will stop taking bets in New York State, consistent with New York State law and the cease-and-desist orders my office issued at the outset of this matter.  As I’ve said from the start, my job is to enforce the law, and starting today, DraftKings and FanDuel will abide by it. Today’s agreement also creates an expedited path to resolve this litigation should that law change or upon a decision by the appellate division.”

Under the agreement, the lawsuits will be dismissed if the Legislature legalizes and regulates DFS in the state.  If the Legislature does not take such action, then the lawsuits will be revived.

 

Port Authority to Upgrade LaGuardia Airport, Build New Manhattan Bus Terminal

On Thursday, the Port Authority of New York and New Jersey voted to spend billions of dollars to upgrade La Guardia Airport and build a new bus terminal in Midtown Manhattan.

The design and construction cost for La Guardia Airport is expected to be $4 billion, two-thirds of which will be financed by private funds and existing passenger fees. Construction will begin shortly, with significant completion of portions of the airport opening in 39 months after the start of construction.

Gov. Cuomo said:

“This vote marks a critical step forward in our effort to overhaul LaGuardia Airport.  Our plan will fundamentally transform LaGuardia – replacing what is now an outdated and poorly designed complex with the world-class airport New York has always deserved. This represents a major milestone for the project – the first of many – and I look forward to seeing construction begin later this year.”

 

State Contractor Will Pay Fine For Illegal Outsourcing

On Thursday, Attorney General Eric Schneiderman and state Inspector General Catherine Leahy Scott announced a $3.1 million settlement agreement with a state contractor for unlawfully outsourcing state-funded work to a subcontractor based in India in 2008 and 2009.

The outsourcing was illegal because Focused Technologies Imaging Services (FTIS) was required to perform the work at a warehouse in Albany, but instead sent personal information of over 16 million people to a foreign business that was unauthorized to receive this information. The company also failed to adhere to its commitment that more than 50% of the labor hours of the contract be performed by individuals with disabilities.

Attorney General Schneiderman said:

“The agreement announced today sends a clear message: if you are a government contractor and you illegally ship jobs overseas, you will be held accountable.  Contractors have an obligation to follow the law and keep the promises they make to the State of New York.”

 

Political Update

Republican Senate Candidate Releases Video

Earlier today, Erie County Clerk Chris Jacobs released a video presenting what he calls his “vision statement” as to why he is running for New York’s 60th State Senate District and what he’ll do if elected.

Town Supervisor to Challenge Freshman State Senator

Last Saturday, Democratic Palatine Town Supervisor Sara Niccoli announced that she will challenge Republican State Senator George Amedore Jr. for the 46th Senate District seat.

The 46th S.D. includes all of Montgomery and Greene counties, and parts of Albany, Schenectady and Ulster counties.  The district was created in the 2012 redistricting cycle. Democrat Cecilia Tkaczyk defeated Amedore in 2012 in an extremely close race, but Amedore defeated Tkaczyk in 2014.

Niccoli worked for a number of years in the non-profit sector, and her family runs a farm in Palatine. She is the director of the state Labor-Religion Coalition.  Her priorities include public corruption, ensuring fair school funding, and addressing the state’s infrastructure needs.

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 Senate and Assembly are scheduled to be in Albany session Monday through Thursday next week, March 28 through 31.

The state’s 2016-17 fiscal year begins on Friday, April 1.

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.”

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.