Plugged In @ Hinman Straub – November 20, 2018

What’s Inside

  • Governor, NYC Mayor Announce New Amazon Campus in Queens
  • Division of Budget Releases Mid-Year Budget Update
  • Compensation Committee Holds First Meeting
  • MTA Warns of Possible Fare Increases, Service Cuts
  • Senate Republicans Elect Leader
  • Department of Health Reports on State’s Medical Marijuana Program
  • Profiles of Newly-Elected State Legislators
  • Political Update
  • Coming Up

Governor, NYC Mayor Announce New Amazon Campus in Queens

Last Tuesday, Gov. Cuomo and New York City Mayor Bill de Blasio announced that Amazon will establish a new corporate headquarters in Long Island City, Queens, where it expects to eventually employ at least 25,000 people. Amazon is promising to invest $2.5 billion in Long Island City in the coming decade, and up to $3.6 billion when ancillary community projects are counted over 15 years. (The company is also building a similar facility in Virginia.)

The state will provide Amazon with up to $1.2 billion in Excelsior tax credits ($1.7 billion, if the company creates 40,000 jobs) and $505 million in capital grants to repay Amazon’s construction costs over 15 years.  In addition, New York City will provide business income-tax credits worth $897 million and a property-tax break worth $386 million over 25 years. In addition, the state will create a General Project Plan to take control of all the land for the project, which means that the project will not go through the typical New York City Council review and approval process. (Read the Memorandum of Understanding between the city, state and Amazon here.)

The Governor defended the size of the incentive package, saying that the economic benefits of bringing 25,000 jobs to Queens will far outweigh the cost of the grants and tax breaks. His office estimates that the development will provide a revenue boost of $27.5 billion total for the state and city over the next 25 years.

In the wake of the announcement, a number of elected officials from the area have expressed concern about the community impacts and the size of the state and city incentives.  Congresswoman-elect Alexandria Ocasio-Cortez questioned whether the state should be providing incentives to such a wealthy company, and New York City Council Speaker Corey Johnson questioned the lack of local input.

On Wednesday, a group of local elected officials led by State Senator Michael Gianaris and New York City Council member Jimmy Van Bramer organized a rally in opposition to the project.  In a joint statement, they criticized the amount of the state’s financial incentives, the lack of community review and input into the process, and the secretive process by which the agreement was reached.

Division of Budget Releases Mid-Year Budget Update

The state Division of Budget (DOB) has released its mid-year budget update.  DOB projects a state budget deficit of $3.1 billion for the state’s upcoming fiscal year.

But if lawmakers stick to the planned 2 percent cap on state spending increases, the state’s projected shortfall is just $402 million.

Compensation Committee Holds First Meeting

The 2018 New York State Compensation Committee, which has been tasked with recommending whether state legislators and state agency heads should get a pay raise in 2019, held its first meeting last Tuesday.

The committee members are state Comptroller Tom DiNapoli; former State Comptroller Carl McCall; New York City Comptroller Scott Stringer; and former New York City Comptroller William Thompson. A fifth member, Chief Judge Janet DiFiore, declined her appointment due to a constitutional prohibition on judges serving on non-judicial commissions.

State lawmakers’ last pay increase went into effect in 1999, when their base salary was increased to $79,500.  State agency heads earn between and $90,800 and $136,000 annually.

The committee is required to produce a report for the Governor’s office by December 10.  Any recommendations they make will become law unless the Legislature affirmatively rejects them.

The committee has scheduled two public hearings later this month, in Albany on Nov. 28 and in in New York City on Nov. 30.

MTA Warns of Possible Fare Increases, Service Cuts

Officials from the Metropolitan Transportation Authority (MTA) warned last week that their financial status is bleak, and that they will likely have to raise fares and tolls throughout the New York City region.  According to its CFO, the MTA will still face an almost $1 billion deficit by 2022.

The MTA runs the New York City subway and buses, the Metro-North and Long Island railroads, and nine bridges and tunnels in the region.  Its proposed operating budget for 2019 is nearly $17 billion.

For 2019, the agency has advance a number of fare- and toll-increase option that are designed to increase its annual revenue by $308 million. These proposals will be discussed at a series of public hearings over the coming months.  The MTA board is scheduled to vote on them in January, and the fare and toll increases would go into effect in March.

These new MTA’s funds will meet their short-term needs; they will not go toward the cost of their long term plan to modernize the subway system that is currently projected to cost $40 billion over 10 years. Gov. Cuomo has urged state lawmakers to pay for that plan by approving congestion pricing, in which drivers would entering the busiest parts of Manhattan would pay an additional toll.  The Governor is expected to propose a congestion pricing plan in 2019

Flanagan Re-Elected Senate GOP Leader

On Friday, the members of the Senate Republican Conference met behind closed doors in Albany and re-elected Long Island Senator John Flanagan as their conference leader.  According to one Senator who was present for the vote, Flanagan received 14 votes, while Senator Catherine Young of Cattaraugus County received 9 votes.

The Senate Republicans will be in the minority when the new legislative session begins in January for the first time since 2009-10.

Department of Health Reports on State’s Medical Marijuana Program

Last Wednesday, the state Department of Health (DOH) issued its second two-year report on the state’s medical marijuana program.

The report recommends changes to increase patient access and further improve the state’s Medical Marijuana Program, including allowing practitioners to certify patients who previously did not qualify for medical marijuana; permitting all practitioners who can prescribe controlled substances to people to become registered providers; and initiating a pilot study to assess the cost-benefits of health insurance coverage for medical marijuana.  It also recommends implementing regulatory amendments to promote research studies of approved medical marijuana products, allow registered organizations to use third-party contractors for security, and make other regulatory amendments to continue to enhance the program.

DOH Commissioner Dr. Howard Zucker said:

“New York’s Medical Marijuana Program has grown quickly since its launch almost three years ago. Nearly 81,000 certified patients and more than 2,000 registered practitioners are now participating in the program.  The recommendations in the two-year report are part of the continuous work to improve the quality of this program to help New Yorkers who are suffering from serious and debilitating conditions.”

Profiles of Newly-Elected State Legislators

In January, 17 new State Senators and 21 new Assemblymembers will take office. Between now and the end of the year, Plugged In will provide brief profiles of these newly-elected members.

Senators

In the 5th Senate District, which includes parts of Nassau and Suffolk counties, Democrat Jim Gaughran defeated Republican incumbent Carl Marcellino.  Gaughran is an attorney in private practice who has served on the Huntington Town Board and in the Suffolk County Legislature.  His legislative priorities include preventing gun violence; protecting taxpayers who will be hurt by the recently-enacted federal tax reforms; addressing public corruption; and ensuring adequate funding for public schools.

In the 13th Senate District in Queens, Democrat Jessica Ramos was easily elected to replace fellow Democrat Jose Peralta, whom she beat in the Democratic primary in September.  A community organizer and activist, she served on Community Board 3.  She also served as Director of Latino Media for the City of New York.  Her legislative priorities include fixing the MTA; protecting tenants; ensuring adequate funding for public schools; and protecting the rights of women and immigrants.

In the 34th Senate District, which includes part of the Bronx and Westchester, Democrat Alessandra Biaggi easily won election to the State Senate.  She will replace incumbent Democrat and former Independent Democratic Conference (IDC) leader Jeff Klein.  Biaggi previously served in Governor Cuomo’s Counsel’s Office, where she focused on the Council for Women & Girls and New York State’s women’s policy agenda. Her legislative priorities include “expanding voting rights; fully funding public schools; access to affordable childcare, healthcare, and eldercare; fighting domestic violence and gun violence; reforming campaign finance; reproductive justice, and making sure that every person in the district has a good, well-paying job.”

In the 53rd Senate District in the Syracuse area, Democrat Rachel May was elected to replace incumbent Democrat David Valesky, whom she defeated in a the Democratic primary. May is an educator who has taught high school math, then Russian language and literature at the college level, and is currently Coordinator of Sustainability Education at Syracuse University. Her legislative priorities include supporting the New York Health Act; campaign finance reform; the Climate and Community Protection Act; and women’s health and reproductive rights.

Assembly Members

In the 39th Assembly District in Queens, Democrat Catalina Cruz was easily elected.  She defeated incumbent Democrat Ari Espinal in the September primary.  Cruz, a Colombian immigrant who is an attorney and an immigration reform advocate, will be the first formerly undocumented person to serve as a member of the State Assembly.  Her legislative priorities include fixing the MTA; investing in public education; keeping housing affordable; supporting immigrants; and universal, single-payer health care.

In the 62nd Assembly District in Staten Island, Republican Mike Reilly was elected to replace fellow Republican Rob Castorina, who ran for a judgeship.  A former NYPD veteran and army veteran, Reilly has also served on the NYC Community Education Council for Staten Island.  His legislative priorities include improving transportation options on Staten Island; addressing the Island’s deer population; supporting uniformed city workers; and advocating for increased funding for education.

In the 90th Assembly District, which is located in Yonkers, Democrat Nader Sayegh won the race to replace Democrat Shelley Mayer, who now serves in the State Senate.  Sayegh, an attorney, worked in the Yonkers Public School system for decades, and has served as Board of Education President.  His priorities include investments in job growth, infrastructure, and education; reducing the tax burden for middle-class taxpayers and homeowners; and ensuring that the Yonkers Public Schools receives its fair share of state funding.

In Erie County’s 146th Assembly District, Democrat Karen McMahon unseated Republican Ray Walter.  McMahon is an attorney who has served as a law clerk to judges of the New York State Appellate Division and the United States District Court for the Western District of New York; she entered private practice in 2016. Her legislative priorities include ensuring access to affordable education and health care; protecting the environment; protecting the interests of women, minorities, and under-represented people; and expanding voting rights.

Political Update

Attorney General-Elect James Announces Transition Team Co-Chairs

On Thursday, Attorney General-Elect Letitia James announced the Co-Chairs of her Transition Committee.  The Co-Chairs will be former U.S. Attorney General Loretta Lynch; former New York State Attorney General Robert Abrams; Jonathan Lippman, former Chief Judge of the New York State Court of Appeals; Julissa Reynoso, partner at Winston & Strawn and former

U.S. Ambassador to Uruguay; and Craig Boise, Dean of Syracuse University College of Law.

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.

The Albany Times Union also published a list of New York’s Election Day winners & losers.

Coming Up

On November 19, the Assembly Committees on Codes, Health, Government Operations and Alcoholism and Drug Abuse are holding a public hearing in Buffalo “to seek input on proposals to legalize, regulate and tax adult use of marijuana in New York.” A second hearing will be held in Binghamton on November 20.

The Joint Commission on Public Ethics (JCOPE) holds its next meeting on November 27.

On November 28, the New York State Compensation Committee holds its first public hearing in Albany.  The committee will hold a second public hearing in Manhattan on November 30.

The state Board of Regents holds its next meeting on December 10 and 11.

On December 12, the Assembly’s Veteran’s Affairs Committee is holding a public hearing in Albany on veterans’ employment programs.

On December 14, the State Board of Elections meets.

The New York State’s 2019 legislative session begins on Wednesday, January 9.