Welcome to the budget dance

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Jan 17, 2024 View in browser   By Nick Reisman, Jeff Coltin and Emily Ngo Presented by With help from Shawn Ness Gov. Kathy Hochul is already feeling friction from fellow Democrats just hours after she presented her 2024-2025 fiscal year executive budget. | Mike Groll/Office of Governor Kathy Hochul The state budget negotiations will not be easy for Gov. Kathy Hochul. Yes, her $233 billion spending plan includes plenty of good news for Mayor Eric Adams, fulfilling his desire to continue oversight of the public school system and boosting migrant aid spending to $2.4 billion. But there is already friction in Albany for Hochul’s budget from her fellow Democrats. Suburban lawmakers at first blush are not happy with her plan to change how school districts are funded, potentially leading to less state aid. Assembly Speaker Carl Heastie signaled to reporters he was skeptical of plans to tackle shoplifting, after Hochul set aside $45 million in the budget to help law enforcement and prosecutors address the issue. And progressive Democrats blasted the governor for not backing calls to hike taxes on rich New Yorkers. “There is plenty to do and there is plenty of money in New York state if we want to find it,” state Sen. Jessica Ramos said. Opposition to raising income taxes amounted to a red line for the governor when speaking to reporters Tuesday. “I will say ‘no’ on an income tax increase,” she said. Even some Republicans were more likely to compliment the broad strokes of Hochul’s budget plan than many Democrats. “She’s talking about a lot of the issues Republicans are talking about, talking about outmigration, talking about crime and talking about the cost of living,” Assembly Minority Leader Will Barclay said. And the budget dance won’t be any less complicated in New York City, where the City Council gained some ground in the looming negotiations. The mayor on Tuesday announced a balanced budget of $109.4 billion for the upcoming fiscal year, with the help of $3 billion in better-than-expected tax revenue; $1.5 billion in anticipated state aid; and a $1.7 billion drop in projected costs of sheltering migrants. While the rosier budget picture could counteract some of Adams’ record-low polling numbers, it could also empower the Council, which must approve the budget before it takes effect July 1. “It is critical to underscore the need for a better approach to budgeting that is based on a more accurate and shared set of facts,” Council Speaker Adrienne Adams and Council Finance Chair Justin Brannan said in a joint statement. Lawmakers have consistently pushed back on the mayor’s cuts and in December released new revenue projections that showed more money was available to spend — a claim Adams had disputed. “You’ve just created and exacerbated the bad will, because now they can’t trust what the mayor says,” former Council Speaker Melissa Mark-Viverito told Playbook. “It just doesn’t bode well for future negotiations.” Mark-Viverito, who was speaker from 2014 through the end of 2017, said that while the city’s Office of Management and Budget is always conservative with its projections, she never saw this level of reversal. — Nick Reisman and Joe Anuta IT’S WEDNESDAY. Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman.   A message from New Yorkers for Local Businesses: Small businesses are the lifeblood of New York’s economy, employing millions of New Yorkers in hard hit communities. But rising costs and an unstable economy pose a direct threat to the jobs they create and equity they've ensured. That's why New Yorkers for Local Businesses is urging Albany to reject proposals that could kill middle class jobs and raise food prices in New York. Learn more here.   WHERE’S KATHY? Delivering remarks at the New York State Sheriffs' Association Winter Conference. WHERE’S ERIC? Appearing live on PIX11's "Morning News," then on NY1's "Mornings on 1," then another appearance on FOX5's "Good Day New York," then doing a live interview with 1010 WINS, hosting a town hall for business leaders, making an appearance on WABC's "Eyewitness News at 5:00," and then finally delivering remarks at the grand opening of the new New AustralianSuper Office. QUOTE OF THE DAY: “All the effort I put into making New York City content, now I’m filming rats. I’m like, where’s my life going?” — Kenny Bollwerk, a TikTok creator who documents the city’s rodent life. ABOVE THE FOLD Mayor Eric Adams' 2025 reelection campaign gave more than $181,000 to his former fundraiser Brianna Suggs, whose Brooklyn home was raided by FBI agents in November as part of the probe. | Ed Reed/Mayoral Photography Office HOW TO SPEND IT: Adams has already spent more than $400,000 on legal costs for a federal investigation involving his 2021 campaign, POLITICO reports. The expense was revealed in the first disclosure of a legal defense fund he established to allow him to fundraise to pay off the bills. He brought in $732,000, with donors including billionaire business owner Alexander Rovt and Assemblymember Jenifer Rajkumar. Meanwhile, a 2025 campaign filing also released Tuesday night shows Adams’ reelection bid doled out more than $181,000 over the course of just six-and-a-half months to his former fundraiser Brianna Suggs, whose Brooklyn home was raided by FBI agents in November as part of the probe. A campaign spokesperson didn’t respond to a request for comment about the unusually high payments to the young fundraiser — who hasn’t been paid since the raid. — Jeff Coltin HOW TO MAKE IT BACK: Former Gov. Andrew Cuomo’s campaign account balance has grown for the first time since he left office over two years ago, inching up from $7.7 million to $7.8 million over the past six months, POLITICO reports. But the growth isn’t due to a surge in donations for Cuomo — he can instead thank a law that requires the state to reimburse legal fees for elected officials who have been accused of crimes that don’t result in convictions. In his case, Albany County prosecutors tossing a misdemeanor charge of forcible touching against Cuomo in 2021 resulted in a $565,000 check from the state comptroller’s office last week. That likely won’t be the end of the money the ex-governor receives from the state — he’s expected to to get back several million dollars from other cases. — Bill Mahoney CITY HALL: THE LATEST Roughly 60 percent of migrants in New York City have moved away from the city's care amid policies like 30- and 60-day limits on stays. | Andres Kudacki/AP MIGRANT COSTS DOWN: The city’s projected cost of caring for migrants through fiscal year 2025 has tumbled from more than $12.2 billion to $10.6 billion. And officials shed more light Tuesday on why. “We took action by lowering the daily household costs and stabilizing the number of asylum-seekers in our care,” Adams said in his budget address. A city official added that the per-diem estimates have been lowered from about $393 to about $352, and approximately 60 percent of migrants processed by the city have moved on from its care — nudged by policies like the 30- and 60-day limits on stays. And while the details can use some beefing up, the city’s plan for staying this fiscal course includes: — Reducing services and staff at its 18 HERRCs, or humanitarian emergency response and relief centers. — Negotiating and renegotiating contracts for shelters run by nonprofit vendors. — And working toward a new type of care managed by nonprofit service providers. City Council leaders applauded the move toward nonprofit providers as “refreshing” and noted that they had advocated for it. — Emily Ngo STEP BY STEP: Like so many other public works projects before it … the opening of the City Hall steps has been delayed again. Originally scheduled for today, an email to City Council staff now says the renovation project will be finished Friday. — Jeff Coltin More from the city: — A social media video posted by the NYPD is raising hackles about the accuracy of what it depicts about legislation on police reporting. (New York Daily News) — Forty-six buildings are enrolled in NYC's Office Conversion Accelerator, which kicked off in August. (Axios) — A traffic cop is looking to settle a lawsuit alleging retaliation after he ticketed a friend of NYPD Chief of Patrol Jeff Maddrey. (New York Times)   A message from New Yorkers for Local Businesses:   NEW FROM PLANET ALBANY Facebook and Instagram's parent company Meta is pushing for Gov. Kathy Hochul to pursue policy designed to protect kids on social media. | Darren McGee/Office of Governor Kathy Hochul SOCIAL MEDIA SCENE: Hochul wants to protect kids online through state legislation. Meta, the parent company of Facebook and Instagram, is trying instead to get a federal law. Meta’s counter push for federal action comes as 40 states, including New York, have been pursuing measures meant to protect kids while they are online and using social media. The company wants parental approval for teens under 16 when accessing app stores and giving some apps, including social media sites, parental controls. The company is also backing industry-developed standards for age appropriate content and and standards for apps commonly used by teenagers. And the company is backing more targeted ads that limit personalization for kids under 16. But Hochul’s proposals are different and more expansive: She wants to block platforms from collecting data of users under age 18 and prevent kids from being exposed to algorithmic feeds of social media apps. — Nick Reisman More from Albany: — Hochul wants to repeal the cannabis “potency tax” as part of her budget. (Times Union) — A battle will begin over how education is being funded in the state budget. (State of Politics) — Former Assemblymember Keith Wright’s son Jordan is now running for his dad’s old seat, currently held by Inez Dickens. (City & State) KEEPING UP WITH THE DELEGATION The super PAC Battleground New York has started canvassing for former Rep. Tom Suozzi. | John Minchillo/AP BATTLE OF LONG ISLAND: Left-leaning super PAC Battleground New York started door-to-door canvassing and phone banks this weekend to support Democrat Tom Suozzi in the 3rd Congressional District special election. First in Playbook, a release from the organization said it has opened up two field offices, in Massapequa and Great Neck. Formed in November by labor unions like 1199 and progressive membership organizations like Indivisible, the independent spender plans to spend millions of dollars in the field to flip Republican-held House seats. — Jeff Coltin NEW YORK STATE OF MIND — Far-right extremism is on the rise in upstate New York, recently, there have been Proud Boy demonstrations in nearby Saratoga Springs and Waterford. (NCPR) — Rex Heuermann, the alleged Gligo Beach serial killer, has been charged with the killing of a fourth woman. (Newsday) — Leaders of New York schools are questioning Hochul’s foundation aid proposal out of fear it could alter the save harmless provision. (New York State of Politics)   A message from New Yorkers for Local Businesses: Rising costs, an unstable economy, and a hostile business environment have made it harder than ever to start, manage, or grow a small business in New York. New Yorkers for Local Businesses is fighting back against misguided bills that threaten New York’s economic job recovery. Learn more here.   SOCIAL DATA MEDIAWATCH — Former Type Investigations editor Maha Ahmed has joined New York Focus as senior editor. ENGAGED — Sarah Williamson, a correspondent and anchor for Newsmax, got engaged to Tal Erel on Friday at Eleven Madison Park after Tal carefully coordinated the proposal with restaurant staff. The couple met when Sarah was living in Israel and interviewed Tal before the 2020 Olympics, when he was on the Israeli baseball team that had qualified. Instapics HAPPY BIRTHDAY: former first lady Michelle Obama (6-0) … Robert F. Kennedy Jr. (7-0) … Maury Povich … Penta’s Rebecca Buck … Jordan Mattos … Jeremy Pelofsky of FGS Global … CNN’s Kwegyirba Croffie … NBC’s Gabe Gutierrez … John Seabrook … Becca Sobel … Mary Clare Rigali … Haris Alic YOUR NEW YORK NUMBER OF THE DAY 51,000+ Complaints about cars parked illegally on NYC streets with no license plates in 2023, according to 311 data analyzed by Streetsblog.   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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