Plugged In @ Hinman Straub

Coverage of Albany and New York State government – February 5, 2016

What’s Inside 

  • Governor Nominates Rosado for Secretary of State
  • Legislative Budget Hearings Continue
  • Assembly Approves Paid Family Leave Legislation
  • Assembly Proposes Plan to Raise Taxes on High Earners
  • Governor Announces Launch of Southern Tier Clean Energy Business Competition
  • Attorney General Announces Settlement in ‘Dark Pool’ Inquiries
  • New York City Mayor Unveils 2016 Agenda
  • Siena Poll: Corruption a Problem, But Priorities are Education and Jobs
  • Political Update
  • Coming Up

 

Governor Nominates Rosado for Secretary of State

On Wednesday, Gov. Cuomo announced the nomination of Rossana Rosado to serve as New York’s Secretary of State. Ms. Rosado served as the editor and publisher of El Diario, the oldest Spanish-language newspaper in the country, for almost nearly twenty years. She is also a Distinguished Lecturer at John Jay College of Criminal Justice.

Gov. Cuomo said:

“Rossana Rosado is a respected, intelligent leader with the experience New York needs to lift up working families and expand opportunity. From becoming the woman to serve as editor and publisher of the largest Spanish-language newspaper in the country, to championing reentry initiatives, to her work as an award-winning producer, Rossana brings a depth and diversity of experience that is second to none. I am confident Rossana will be a force for positive and lasting change in communities across the state, and I am proud to welcome her to this administration.”

The Department of State is responsible for the regulation of a number of businesses and professions, maintains business records, publishes local laws and provides training assistance to local governments, among other functions. The nomination is subject to confirmation by the State Senate.

 

Legislative Budget Review Hearings Continue

Joint legislative budget hearings to review Gov. Cuomo’s 2016-17 Executive Budget proposal continued this week.

At Tuesday’s economic development hearing, lawmakers asked Empire State Development (ESD) president Howard Zemsky for updates on the state’s START-UP NY program, which creates tax-free zones for certain businesses. The next report on the program is due in April — after the budget deadline. Zemsky said there are nearly 160 companies participating in the program, but he would not say how many people these companies employ or whether the participating companies are meeting their job creation and investment goals.

At Wednesday’s hearing on workforce development, the Governor’s proposal to increase the state’s minimum wage was a main topic of discussion. Mario Musolino, executive deputy commissioner of the Department of Labor told lawmakers that higher wages for low-wage earners will help the state’s economy because workers will spend more, and will save taxpayer dollars because they will no longer rely on government welfare programs. Senate Labor Committee Chair Jack Martins expressed the concern that increasing the minimum wage could result in job losses.

At Thursday’s hearing on public protection, Chief Administrative Judge Lawrence Marks of the state’s Office of Court Administration (OCA) asked lawmakers for additional funding to help pay for judicial salary increases and for civil legal services. Lawmakers also expressed concern about the Governor’s proposal to create a permanent special prosecutor to investigate police-involved deaths.

Legislative budget hearings conclude next week with hearings on the following topics:

  • Monday, Feb. 8 – Higher Education
  • Tuesday, Feb. 9 – Human Services

 

Assembly Approves Paid Family Leave Legislation

On Tuesday, the Assembly approved a bill (A.3870) that would provide workers in New York with up to 12 weeks of paid leave each year to care for family members.

Under the Assembly’s proposal, employees could use New York State’s Temporary Disability Insurance (TDI) program to receive paid time off from work for up to 12 weeks to care for family members, bond with a new child or address certain issues arising from a family member’s military service. During their leave period, an employee would receive two-thirds of their average weekly wage, up to a maximum benefit level.

Assembly Speaker Carl Heastie said:

“No hardworking individual in New York State should have to face financial ruin in order to take care of his or her family. The New York State Assembly recognizes that there is nothing more important than the health of our families and loved ones so we have taken steps to keep families first in New York.”

Gov. Cuomo has included a paid family leave proposal in his Executive Budget that is similar to what the Assembly has approved. Senate Majority Leader John Flanagan said that his conference is discussing the Governor’s proposal, but has concerns about how it would impact small businesses.

 

Assembly Proposes Plan to Raise Taxes on High Earners

On Tuesday, Assembly Speaker Carl Heastie (D-Bronx) announced a tax proposal that would increase taxes on those earning $5 million or more annually, while lowering rates for middle- and low-income earners. It would also increase the Earned Income Tax Credit (EITC). The plan would result in $1.billion in additional revenues for the state, which the Speaker said should be used “to support schools, aging infrastructure and other public priorities.”

Speaker Heastie said:

“The Assembly Majority is committed to doing everything in our power to help New York’s families achieve financial independence and success. It is critical that we fight for a fair and progressive tax structure that reflects this commitment and leads us toward a future where working families have more of the income they need to achieve their goals.”

Senate Majority Leader John Flanagan (R-Suffolk County) rejected any tax increases, saying that the state should be looking to reduce taxes.

 

Governor Announces Launch of Southern Tier Clean Energy Business Competition

On Sunday, Gov. Cuomo announced the launch of the 76West clean-energy business competition, a $20 million business competition and business support program. The program’s goal is to attract innovative, clean-energy businesses to the state’s Southern Tier.

The competition consists of $10 million in prize money and $10 million for business support, marketing and administration. In each of the next four years, 76West will distribute a $1 million grand prize, one $500,000 award and four $250,000 awards. Additional support and services may also be available via the program, such as mentorship and incubator space.

Gov. Cuomo said:

“The 76West competition will bring unprecedented entrepreneurial attention to the Southern Tier and add further momentum to New York’s rapidly growing clean energy sector. As we saw with the 43North competition in Western New York, these efforts will build on the Southern Tier’s natural strengths and spur new innovations that will help strengthen the local economy and move the region forward.”

 

Attorney General Announces Settlement in ‘Dark Pool’ Inquiries

On Monday, state Attorney General Eric Schneiderman announced that that Barclays Capital and Credit Suisse Securities will pay a combined $154.3 million to New York State and to the Securities and Exchange Commission (SEC) to settle investigations into false statements and omissions made in connection with the marketing of their respective ‘dark pools’ and other high-speed electronic equities trading services. Dark pools are private exchanges for trading securities that are not viewable by the general public and are completed outside of public stock exchanges.

Barclays will admit that it misled customers and violated securities laws. It will pay $70 million, and has agreed to appoint an independent monitor for its electronic trading operations. Credit Suisse Securities will pay $60 million, and will pay $24.3 million in disgorgement and interest to the SEC over other trading violations.

 

Attorney General Schneiderman said:

“These cases mark the first major victory in the fight to combat fraud in dark pool trading and bring meaningful reforms to protect investors from predatory, high-frequency traders. This effort, which began when we first sued Barclays, includes coordinated and aggressive government action which forced admissions of wrongdoing and record fines.  We will continue to take the fight to those who aim to rig the system and those who look the other way.”

Attorney General Schneiderman has called for greater regulatory oversight and market reforms to eliminate unfair advantages provided to high-frequency traders at trading venues.

 

New York City Mayor Unveils 2016 Agenda

On Thursday, New York City Mayor Bill de Blasio delivered his 2016 State of the City address.

The Mayor’s plans include the introduction of a Brooklyn-queens streetcar, the development of Governor’s Island, investments in the three underserved neighborhoods, creation of a retirement savings plan for private-sector employees that would be run by a board created by the city, and continued expansion of the LinkNYC municipal wireless Internet system.

Watch the Mayor’s speech here.

 

Siena Poll: Corruption a Problem, But Priorities are Education and Jobs

A Siena Research Institute poll released this week finds that 89% of New Yorkers see corruption as a serious problem in Albany, and 53% deem it “very serious.” But education, jobs and taxes are the top three issues that those polled want the Legislature to take action on, followed by ethics reform.

Read the poll crosstabs here.

 

Political Update

Governor Calls Special Elections for April 19

Gov. Cuomo has officially set April 19th as the date for special elections to fill one Senate vacancy and three Assembly vacancies.

The 9th Senate District (Nassau County) was previously held by Republican Dean Skelos. The 59th Assembly District (Brooklyn) was held by Democrat Roxanne Persaud; the 62nd AD (Staten Island) by Republican Joe Borelli; and the 65th AD (Manhattan) by Democrat Sheldon Silver.

Governor Endorses Democratic Candidate in SD 9 Race

Gov. Cuomo has endorsed Democratic Assemblyman Todd Kaminsky in the race for the 9th Senate District. Kaminsky faces Republican Christopher McGrath in the race. In a statement, the Governor said:

“Todd Kaminsky believes in restoring the promise of economic opportunity for all by raising the minimum wage to $15, and he is fighting every day to support Long Island’s working class families. He knows we need to keep working to make living in New York more affordable by enacting real property tax relief and voting to uphold the property tax cap.”

Republicans currently hold 31 of the Senate’s 63 seats, and maintain their majority because they are supported by Democrat Simcha Felder of Brooklyn. Democrats see a Kaminsky win in this race as the first step toward gaining control of the Senate in the November 2016 elections.
The 9th Senate District includes the Nassau County communities of Long Beach, Cedarhurst, Island Park, Lawrence, Lynbrook, Malverne, Rockville Centre and Valley Stream.

Nozzolio Will Not Run for Re-Election

State Senator Michael Nozzolio (R – Seneca County) announced this week that he will not seek re-election in November, citing the need to have heart surgery. Nozzolio has represented the 54th Senate District since 1993; he previously served in the Assembly for 10 years.

Potential candidates who are reportedly considering running for the seat include Assemblyman Bob Oaks (R- Wayne County) and Victor Supervisor Jack Marren.

The 54th SD includes 54th district includes Seneca and Wayne counties, and parts of Ontario, Cayuga, Tompkins and Monroe counties.

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 Legislature is in session Monday and Tuesday next week, February 8 and 9.

Legislative budget hearings conclude next week with hearings on the following topics:

  • Monday, Feb. 8 – Higher Education
  • Tuesday, Feb. 9 – Human Services

On February 8, Hon. Janet DiFiore will be sworn in as Chief Judge of the Court of Appeals in Albany.

Also on Feb. 8, the Senate Judiciary Committee will take up Gov. Cuomo’s nomination of Michael Garcia as an Associate Judge of the Court of Appeals.

The Joint Commission on Public Ethics (JCOPE) holds its next meeting on February 17.

The Board of Regents holds its next meeting on February 22 and 23.

The Public Service Commission (PSC) holds its next meeting on February 23.

The state Board of Elections holds its next meeting on February 23.

The Senate and Assembly fiscal committee are scheduled to release their Economic & Revenue Reports on or around February 25.