Plugged In @ Hinman Straub – October 25, 2016

PluggedInMastheadCoverage of Albany and New York State government

  • Governor Announces Agreement with Public Employees Federation
  • Governor Announces 300 New Electric Vehicle Charging Stations
  • DFS Issues Report Critical of State Retirement Fund
  • Nassau County Executive, Town Supervisor Charged With Corruption
  • Governor Signs Bill to Crack Down on Illegal Airbnb Rentals
  • Governor Announces Launch of Statewide Campaign to Raise Awareness of Addiction
  • Direct Support Professionals Rally for Better Pay in Albany
  • Governor Hosts Tourism and Craft Beverage Summit; Announces Tourism Funding
  • Board of Regents Considers 2017 Priorities
  • Preview of New York State’s 2016 Legislative Elections
  • Political Update
  • Coming Up

Governor Announces Agreement with Public Employees Federation

Last Wednesday, Gov. Cuomo announced that the state has reached a three-year labor agreement with the New York State Public Employees Federation (PEF).  PEF is the state’s second-largest employee union, representing 54,000 workers.

The three-year contract agreement includes 2 percent increases in 2016-17, 2017-18 and 2018-19, and the union has agreed to work with the state on a plan to reduce “out-of-control healthcare costs. The contract must be approved by PEF’s Executive Board and ratified by its membership.

Governor Announces 300 New Electric Vehicle Charging Stations

Last Monday, Gov. Cuomo announced that the New York Power Authority (NYPA) has entered into a contract for the installation of 300 electric vehicle charging stations at public locations throughout the state. The five-year contract includes charging station equipment as well as optional installation and networking services, which will enable NYPA to make charging station infrastructure and services available to governmental customers at lower costs and favorable financing terms as part of its standard portfolio of energy efficiency services to these customers.

Gov. Cuomo said:

“New York is a national leader in promoting green technology and developing the clean energy economy, and these new charging stations will support the growing increase in electric vehicle use across the state.  With our unyielding commitment to cleaner, greener, and more efficient energy solutions, we are building a stronger New York for all.”

DFS Issues Report Critical of State Retirement Fund

Last Monday, the state Department of Financial Services (DFS) criticized State Comptroller Tom DiNapoli’s management of the state pension fund in a report that accuses the fund of paying high fees and investing pension system funds in high-cost underperforming hedge funds and nontransparent private equity funds.  According to the report, high fees and hedge-fund underperformance cost the fund $3.8 billion over the past eight years.

The state comptroller is the sole trustee of the $179 billion pension fund for more than 1 million public workers and retirees.

DFS Superintendent Maria Vullo said:

“Pension fund managers across the country have cut or eliminated exposure to these overpriced and underperforming investments, while the office of the New York state comptroller has stood still and spent pension system funds chasing performance that continues to fall far short.”

A spokesperson for Comptroller DiNapoli’s office criticized report, calling it “uninformed and unprofessional.”  She said:

“Unfortunately, the Department of Financial Services seems more interested in playing political games, so remains unaware of actions taken by what is one of the best managed and best funded public pension funds in the country.”

Nassau County Executive, Town Supervisor Charged With Corruption

Last Thursday, the U.S. Attorney for the Eastern District of New York announced a 13 count indictment charging Nassau County Executive Ed Mangano, his wife and Town of Oyster Bay Supervisor John Venditto with trading government contracts and official favors that included free vacations, a $450,000 no-show job and other bribes. The Manganos and Venditto pleaded not guilty to the charges and were released on $500,000 bond.

The charges could have significant political ramifications in Albany.  A number of Long Island Republicans are running for re-election to their State Senate seats, which the Democrats have targeted in an effort to gain control of the chamber in 2017.

Governor Signs Bill to Crack Down on Illegal Airbnb Rentals

On Friday, Gov. Cuomo signed a bill into law that will impose fines for advertising on Airbnb and other home-sharing services units that cannot be legally rented under New York City and state law.  Under the new law, first-time violators will face civil penalties of up to $1,000, jumping to up to $5,000 for second-time violators and $7,500 for third and subsequent violations.

Generally, New Yorkers are prohibited from renting out their apartments to others for more than 30 days within a 365-day period unless the hosts are staying on the premises.  A study released by state Attorney General Eric Schneiderman’s Office in 2014 found that as many as 72% of Airbnb reservations were in violation of state law.

Earlier this week, Airbnb mounted a last-minute campaign to fight off the bill.  The company proposed alternative regulations that it said would address concerns about short-term rentals without tax collections.

The company said that it plans to challenge the new law in court.

Governor Announces Launch of Statewide Campaign to Raise Awareness of Addiction

Last Tuesday, Gov. Cuomo announced the launch of a #CombatAddiction campaign emphasizes the far-reaching effects of addiction and connects New Yorkers with information and support services through social media, bilingual public service announcements and a print ad that will be posted on the New York City Subway system and on the Staten Island Ferry.

Gov. Cuomo said:

“This campaign seeks to educate New Yorkers of the full impact of addiction and how get help for themselves or their loved ones.  Addiction knows no bounds, and its devastating effects can be felt in every community across the state, but we must stand together to combat this disease and to build a stronger, healthier New York for all.”

Direct Support Professionals Rally for Better Pay in Albany

Last Monday, a coalition of groups and lawmakers who advocate for people with developmental disabilities held a rally at the State Capitol in Albany to urge the state to provide $45 million in new funding in each of the next six years to provide a “living wage” for direct support workers.

Over the last eight months, the #bFair2DirectCare Coalition has held rallies and other events across the state to highlight the rising costs, the lack of funding support, new federal overtime rules, recruiting and retention difficulty in an economy with lower unemployment, and growing competition from other employers, like big box stores, that are raising wages across the board.

Governor Cuomo is expected to submit his 2017-18 Executive Budget proposal in mid-January.

Governor Hosts Tourism and Craft Beverage Summit; Announces Tourism Funding

Last Tuesday, Gov. Cuomo hosted the New York State Tourism and Craft Beverage Summit, where leaders in the tourism and craft beverage industries met with state officials to explore new opportunities for beer, wine, cider and spirits manufacturers.

At the event, the Governor announced that the state will increase its initial $50 million allocation for tourism to $55 million to upgrade and add welcome centers across the state and boost tourism advertising. An additional $2 million will be used to promote the state’s agritourism and craft beverage industries. He also said that in 2017, the state will celebrate 100 years of women’s suffrage in New York and the 200th anniversary of the Erie Canal.

Gov. Cuomo said:

“With new welcome centers that will serve as gateways to New York’s unparalleled natural beauty, and with this new funding, we are creating an interactive tourism experience that will keep visitors coming back year after year. This summit builds on our administration’s commitment to tourism and helped to foster innovative ways to leverage our natural assets, attract more visitors and garner economic activity across this great state.”

Board of Regents Considers 2017 Priorities

At its monthly meeting this week, New York State’s education policymakers began looking ahead to 2017, discussing their budgetary and legislative priorities for the upcoming legislative session.

On the budgetary side, the State Education Department (SED) asked the Board of Regents to push for additional resources for the department to cover the costs of administration, support and technical assistance; funding to train educators in the state’s revised standards; and more funding for opportunity and access programs like the Higher Education Opportunity Program, which provides academically and economically disadvantaged students access to a college education and mentorship.  (Read SED’s memo on its 2017 state budget initiatives here.)

On the legislative front, SED is looking to align its seven pre-kindergarten programs; update SED’s authority relating to intervening in struggling school districts; and approving the DREAM Act, which would allow thousands of undocumented students to receive state grants and other financial aid to attend college. (Read SED’s memo on its 2017 state legislative initiatives here.)

Preview of New York State’s 2016 Legislative Elections

As it has been in every state legislative election since 2008, control of the State Senate is New York’s big political prize in 2016.  Although elected Democrats have a 32-31 advantage in the chamber, the Republican Party has maintained a working majority in the Senate – its last hold on power in New York State – through agreements with six breakaway Democrats.

In a presidential election year where high voter turnout is expected, Republicans in New York State go into the elections at a disadvantage based on simple math: New York has twice as many enrolled Democrats as Republicans.  There are 5.3 million Democrats and 2.6 million Republicans, though 2.5 million voters are not registered in a party.

There are a number of competitive State Senate races, most in the state’s suburban communities, that could determine whether Republicans can retain their Senate majority in Albany.  Below are some of the most watched races among the November 8th State Senate races:

5th Senate District (parts of Nassau and Suffolk counties):  Incumbent Republican Carl Marcellino has served in the Senate since 1995.  A former teacher, he serves as chair of the Senate Education Committee.  He is being challenged by James Gaughran, former Huntington town board member and Suffolk legislator.  Democrats hold a 76,000 to 72,000 enrollment edge over Republicans, with 71,000 unaligned voters in the district.

7th S.D. (part of Nassau County):  Incumbent Republican Jack Martins is running for a Congressional seat in November.  Adam Haber, the Democratic candidate who lost to Martins in 2014, is running for the seat again.  He faces Republican Elaine Phillips, who serves as Mayor of the Village of Flower Hill.   Democrats hold an enrollment advantage of 86,700 to 65,500 over the Republicans, with 55,300 voters not enrolled in any party.

39th S.D. (parts of Orange, Rockland and Ulster counties):  Incumbent Republican Bill Larkin is being challenged by Orange County legislator Chris Eachus.  Democrats hold an enrollment advantage of 62,800 to 50,100 over the GOP, with 36,700 voters who are not in either party.

41st S.D. (parts of Putnam and Dutchess counties): First-term incumbent Republican Sue Serino is being challenged by former one-term Senator Terry Gipson.  Serino narrowly defeated Gipson in 2014 by about 3,700 votes.  The Democrats hold an enrollment advantage of about 10,000 voters in the district.

60th S.D. (part of Erie County) With first-term incumbent Democrat Marc Panepinto not running for re-election, Republican Erie County Comptroller Chris Jacobs faces off against Democrat Amber Small. The Democrats hold an enrollment advantage of 84,000 to 49,400 over the GOP, with 19,700 unenrolled voters.

Political Update

Poll:  Clinton, Schumer Hold Big Leads in New York

A Siena Research Institute poll released last Wednesday shows Democrats Hillary Clinton and Chuck Schumer with substantial leads in New York State.

Clinton leads Republican Donald Trump in the Presidential race, 54% to 30%.  Schumer, who is seeking a fourth term in the U.S. Senate, leads Republican Wendy Long, 66% to 27%.

Read the poll crosstabs here.

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 Joint Commission on Public Ethics (JCOPE) meets on October 26.

Election Day is Tuesday, November 8.

The Board of Regents holds its next meeting on November 14 and 15.

The Public Service Commission (PSC) holds its next meeting on November 17.

The state Board of Elections holds its next meeting on November 17.