Plugged In @ Hinman Straub – April 19, 2019

What’s Inside

  • Line Item Vetoes
  • Latest Siena College Research Institute Poll
  • Governor Directs HESC to Broaden Interpretation of Scholarships for Gold Star Families
  • Governor Announces Data Privacy Survey
  • Comptroller Releases Recommendations from Decarbonization Advisory Panel
  • Dramatic Population Loss in New York According to Census Estimates
  • Senator Kaminsky Announces Food Waste Proposal Taking Effect in 2022
  • Bidding Process for Wadsworth Labs Starts Over
  • Updates, Reminders, and Links
  • Comping Up

Line Item Vetoes

This week the Governor acted on the Budget bills that had been delivered shortly after passage. As expected, the Governor signed each bill with the exception of some line item vetoes. Article IV, section 7 of the New York State Constitution confers authority to the Executive to reject specific items contained within an appropriation bill, when the appropriation bill comprises more than one item. This year the Governor vetoed 123 line items for a variety of reasons. The most common reason provided was the Governor’s belief that the funding was unnecessary because the relevant state agency was already appropriately funded. Other reasons for veto include; appropriations were more than seven years old with no disbursements in the previous seven years, the appropriation is already fully expended, the appropriations are duplicative of other reappropriations for the same purpose, the appropriations were previously vetoed, the appropriations were vetoed on constitutional grounds, and one was vetoed because of fiscal constraints.

Latest Siena College Research Institute Poll

Siena College Research Institute released a poll this week on a wide range of new and proposed laws. The poll demonstrates mixed results regarding whether the recently enacted budget will be good or bad for New York. 39% believe the budget will be good for New York, while 35% believe it will be bad for New York. Democrats, by a two-to-one margin, believe the budget will be good for the state, while Republicans believe it will be bad by the same margin. Independent voters are closely divided. Regarding specific proposals in the enacted budget, a strong majority believe making the property tax cap permanent is good (64-22), the ban on plastic bags is good (62-33), and eliminating cash bail for misdemeanors and non-violent felonies is good for the state (55-38). A strong majority believe the ban on releasing mug shots will be bad for New York (31-58), the Legislature voting to increase the Governor’s salary was bad (32-62), and the public financing of elections also gets poor reviews (23-63). A small plurality of those polled think congestion pricing will be bad for the state (41-44) and requiring all online retailers to collect sales tax will be bad for New York (46-48).

A massive majority of New Yorkers support requiring children be vaccinated (78-17). Democrats, Republicans, and Independent voters all agree by nearly the same percentages. Legalizing the recreational use of marijuana enjoys majority support as well (52-42). The granting of drivers licenses for illegal immigrants is opposed by a large majority (40-55). A slim plurality of poll takers support a government run, single payer health care system (48-44). A majority of Democrats support government run health care, approving by a margin of 65-28, while both Republicans (21-70) and Independents (42-52) oppose such a plan.

Approval numbers for politicians and institutions is largely unchanged from the previous month’s poll. Governor Cuomo has a negative 47-48 percent favorability rating. His job performance rating is a negative 37-62 percent favorability rating. Both are largely unchanged from the previous month’s poll.

Governor Directs HESC to Broaden Interpretation of Scholarships for Gold Star Families

The Governor announced this week that that he would be directing the Higher Education Services Corporation (HESC) to administratively broaden the interpretation of the Military Enhanced Recognition Incentive and Tribute (MERIT) Scholarship. Currently, in order to qualify for a MERIT scholarship you need to be a child, spouse, or financial dependent of a veteran killed in a combat zone. The new interpretation of the statute allows for scholarships to be awarded to children, spouses, or financial dependents of an armed forces veterans who was killed or became severely and permanently disabled, or missing in action while performing their military duties.

The MERIT Scholarship program was created in 2003 after the start of the war in Iraq to provide more support to the family members of service members. The scholarship covers four years of full-time undergraduate study (or five years in an approved five-year bachelor’s degree program) and includes the following:

  • Tuition: An amount equal to the actual tuition or the State University of New York’s (SUNY) in-state tuition, whichever is less.
  • Non-tuition Costs: Includes room and board and allowances for books, supplies and transportation up to the average cost at SUNY Colleges.
  • Residence: Students living on campus are awarded a higher room and board allowance than a commuter student. If housing is not available for students on campus they will receive the same allowance as students living on campus. For the current academic year, recipients will receive a maximum of $24,250 if living on campus and a maximum of $15,750 if commuting to college.

In 2018, an estimated 111 students received this award, totaling $1.8 million. Since its implementation in 2003, MERIT scholarships have helped 387 veterans’ family members pay their college tuition.

The Governor said:

“Military service is more than just the active military member – I believe the entire family is in service, and we will honor that sacrifice and respect that service not just in words, not just with symbols, but with deeds. That is why New York is taking immediate action to extend benefits to all those lost or disabled while on active duty, period. We can never replace the loved one lost, but we can lessen the hardship and make it a little easier to deal with the loss, and it is our honor, our obligation and our pleasure to do just that. We hope this gesture helps bring some comfort, peace, relief and justice to those grieving their loss.”

Governor Announces Data Privacy Survey

This week the Governor announced that the Division of Consumer Protection launched a data privacy consumer survey (take part in the survey here). The survey is designed to give the public an opportunity to weigh in on data privacy issues to help inform future public policy decisions including new legislation and regulations. The announcement of the survey comes after the Governor had tasked the Department of State and the Department of Financial Services to investigate reports that Facebook is secretly accessing personal information of users.

The Governor said:

“In the Digital Age nearly every New Yorker has an online presence and consumers are an important resource for identifying ways to make the internet safer. This survey will provide policymakers with important insight into data privacy issues that will inform our efforts to create effective policy that prevents online companies from misusing or abusing personal data.”

Comptroller Releases Recommendations from Decarbonization Advisory Panel

This week the Comptroller released the report from the Decarbonization Advisory Panel. The report examines the financial impacts of climate change on the New York State Common Retirement Fund (Fund). The six-member Decarbonization Advisory Panel was formed by Governor Cuomo and Comptroller DiNapoli in 2018 and members were appointed in March 2018. The panel was charged with offering strategies for the Comptroller’s consideration on how the Fund might identify, assess, and manage the investment risks and opportunities of climate change. In the report released this week, the panel offered a series of recommendations to further decarbonize the Fund and capitalize on a low-carbon economy.

The panel’s primary recommendation is for the Fund to transition its investments to 100 percent sustainable assets by 2030. Sustainable assets are investments, of any type, that are consistent with a 2-degree or lower future. The panel suggests that this would be accomplished by ramping up investment in sustainable assets and climate solutions, and establishing minimum standards to prioritize engagement and possible divestment.

Specifics of the recommendations include:

  • The Fund should establish a new climate solutions investment program and increase its funding of investments with a proactive approach to climate risk and opportunity;
  • The Fund should establish minimum standards to measure the readiness of its investments for climate change impacts and the transition to a low-carbon economy. These standards may vary by asset class, sector of the economy or geography, but could be used to construct indices, evaluate managers, direct engagement and define exclusion from the Fund’s portfolio;
  • The panel did not recommend the Fund divest specific stocks, but said that setting minimum standards could guide decisions on what securities to sell and help avoid investment managers whose operations and strategies are not sustainable.

Comptroller DiNapoli said:

“Climate change is a serious threat to financial markets and the global economy. The transition to a low-carbon economy and the physical impacts of climate change are well underway, and New York must do more to be ready. The New York State Common Retirement Fund is already a leader among public pension funds in analyzing our investments’ exposure to climate risk, but we need to engage in more strategies to protect the long-term value of the Fund. The Decarbonization Panel has offered ambitious recommendations and I have directed my staff to develop a climate action plan as a follow up to this report. I thank the committee members for lending their expertise during this year-long process and thank Governor Cuomo for his historic efforts to make New York a leader on many fronts when it comes to tackling climate change and protecting the environment.”

Dramatic Population Loss in Upstate New York According to Census Estimates

New census population estimates recently released by the U.S. Census Bureau include some bad news for the state. Estimates show most upstate counties have lost population since the 2010 census. The results are not much better for the rest of the state with the statewide estimates showing a total population increase of 164,085 residents, a growth of 0.8 percent, well below the country-wide average of 6 percent.

After the last census in 2010, New York lost 2 congressional seats and if these estimates prove to be accurate, it will likely lose one or two more.

E.J. McMahon, research director for Empire Center for Public Policy said:

“The rural areas are the weakest. The upstate decline is continuing. It’s not much different from the picture we have been seeing and the same components are causing it: the combination of domestic migration losses in every county but two (Saratoga and Ontario), low foreign immigration and more births than deaths in a lot of rural counties. You put that all together and you have a population decline.”

Michael Kracker, director of business advocacy group Unshackle Upstate said also warned that proposed legislation to require overtime pay for farm workers and allow them to join unions threatens to hurt agriculture businesses across upstate and that a series of increases in New York’s minimum wage has already weakened the business climate. Kracker said “until something substantive changes, I don’t see those trend lines changing.”

Senator Kaminsky Announces Food Waste Proposal Taking Effect in 2022

This week, Senator Todd Kaminsky announced the passage of a new proposal outlining requirements for food donation and food scrap recycling at Island Harvest Food Bank in Uniondale, NY. The proposal has been celebrated by food banks and environmentalist alike, praising the bill as a way to help those with food insecurity, as well as a means to sustain the environment. Island Harvest’s Randi Shubin Dresner joined Senator Kaminsky for the announcement noting that 2.5 million New Yorkers struggle with food security and that this law will help Island Harvest food bank with their mission to feed those in need.

The proposal, included in the final enacted budget, will require food waste be diverted from landfills and either donated to food banks or sent to anaerobic digesters to be converted into renewable biogas. The law requires whole sale and retail food providers, as well as, food waste generators donate edible excess foods to local food banks and divert inedible food waste and scraps to anaerobic digesters if they are located within a 25 mile radius of a digester. As defined, food waste generators will include large food service businesses, higher educational institutions, hotels, food processors, correctional facilities, and sports or entertainment facilities. Specifically exempted from the requirements of this new law include hospitals, nursing homes, adult care facilities, and elementary and secondary schools.

Bidding Process for Wadsworth Labs Starts Over 

The state will restart the bidding process for a firm to design the $750 million Wadsworth Labs in Albany. According to the Dormitory Authority, two of the three firm originally in the running for the project recently dropped out and a new request for proposal will be issued in the coming weeks. In January, the Governor announced the replacement of the aging Wadsworth Center facilities located in Albany and Slingerlands and a new location would be built at the Harriman State Office Complex in Albany. The Governor’s office contends the new project will attract 1,200 jobs in the life sciences field and have a $2.3 billion impact on the economy.

Updates, Reminders, and Links

City & State NY’s weekly Winners & Losers here.

NY Times: Face it, you probably got a tax cut.

Buffalo News: How did Upstate fare in the budget?

Times Union: Paying for Criminal Justice Reforms.

Uncertain future for SAM grant program.

Read the full Mueller Report here.

Coming Up

The Senate Committees on Agriculture and Labor will hold several public hearings on the Farmworkers Fair Labor Act on April 25th, April 26th, and May 2nd.

JCOPE will hold its next meeting on April 30th.

Senate Finance Committee will hold a public hearing on the issue of divesting the NYS Common Retirement Fund from fossil fuels as outlined in S.2126 / A.1536 at 10:00am on April 30 in Albany (Hearing Room A, LOB).

The Assembly Committee on Housing will hold public hearings on rent regulations on May 2nd and May 9th.

Public Service Commission will hold its next meeting on May 16.