A May budget? Lawmakers hope not.

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Apr 11, 2024 View in browser
 
POLITICO New York Playbook PM

By Jason Beeferman

With help from Irie Sentner

New from New York

Happening now:

  • A battle over good cause continues.
  • A new plea from cannabis farmers and a spirited board meeting.
  • The City Council speaker’s latest critique of City Hall.
  • And the latest state budget developments or lack thereof.

DAYS THE BUDGET IS LATE: 11

The New York state Senate Chamber is seen.

Earlier today, 47 lawmakers signed onto a statement from blasting the Gov. Kathy Hochul's current proposals for a housing deal. | Hans Pennink/AP

HOUSING FIGHT: State budget negotiations around “good cause” tenant protections are moving farther and farther away from what tenant activists have wanted, and a May budget could become a reality.

The governor has backed carve outs that exempt renters of pricier apartments from tenant protections. There are talks of rolling back a provision of the 2019 rent-stabilization laws and allowing rent increases for individual apartment improvements.

Amid all of this, housing activists are threatening to wave the white flag: "If that is what Governor Hochul is willing to give, we think that the state Legislature should walk away and should say 'No' and maybe do something during the session," Cea Weaver, the coordinator for Housing Justice for All, a tenant advocacy group, told Spectrum News.

But a spending plan without a housing deal would be politically costly. In an election year, state lawmakers are eager to show progress on the housing affordability and supply crisis. A housing deal has also been a top priority for Gov. Kathy Hochul.

Earlier today, 47 lawmakers signed onto a statement from Weaver’s organization blasting the governor’s current proposals for a housing deal.

“It is a signal that the governor is in a position that does not meet the needs of all three branches, and so there either needs to be movement or other alternatives need to be explored,” said Rebecca Garrard, deputy executive director of the left-leaning Citizen Action of New York, said of the letter. Those “other alternatives” would mean a housing deal outside of a state budget.

The tenant activists’ signaling that they’re ready to walk away doesn’t bode well for a “timely” budget. (Sidenote: In Albany, “timely” is a matter of debate.)

And lawmakers said there hasn’t been much to show for this past week: “In the last 72 hours, I don't think there's been some major progress to report on,” state Senate Housing Chair Brian Kavanagh said.

And now… after an Eid, an Eclipse and an Easter the question must be broached: Are we looking at a May budget?

“I know that nobody wants a May budget,” Sen. James Skoufis, a Hudson Valley Democrat, said. “I don't think anyone is thinking we're going to be here in May as we’re talking about the budget. Is it impossible? No, but I am optimistic we will be done before May.”

Sen. John Mannion, however, was a little more measured.

“I was here last year when the words ‘May’ were used,” the Syracuse-area Democrat said. “So you can tell where I am. I do believe we have a lot of work to do. And I do know that today is April 11. We have time to get this done in April, we do. But it is gonna take a lot of work because we're not at the very end. Maybe we're at the beginning of the end, but I think we’re still at the end of the middle.” — Jason Beeferman

 

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From the Capitol

New York Gov. Kathy Hochul holds up a phone that displays a map of illegal cannabis stores.

In an open letter sent to Gov. Kathy Hochul, the Cannabis Farmers Alliance claims the slow rollout of the state's cannabis program has lead to job losses, farm closures, and an erosion of potential tax revenues for the industry. | Stefan Jeremiah/AP

CANNABIS FARMERS: The Cannabis Farmers Alliance sent a letter to Hochul urging her to work with the Senate and Assembly to speed up the rollout of legal dispensaries.

“Without swift intervention from your office, we risk witnessing the collapse of a vital sector of our economy,” the letter, which was penned by co-founder and acting president of the alliance Joseph Calderone, said.

The letter claims the slow rollout of the cannabis program has led to job losses, farm closures and an erosion of potential tax revenues for the industry.

Calderone is urging Hochul to treat the issue with urgency in her agenda to prioritize the “salvation and revitalization of our cannabis farms.” (see below for more cannabis news.) — Shawn Ness

LATE BUDGET, GOOD BUDGET: State lawmakers insist they want a good budget even if it’s well into the new fiscal year.

The budget this year will be more than two weeks late as lawmakers this week are giving approval to another temporary stopgap spending bill that will fund the state government until Monday.

Democrats in the state Senate departed Albany for the weekend today by insisting the budget’s tardiness won’t impact constituents. The Assembly returns Friday.

Fiscal watchdog groups are starting to raise alarm over the lack of progress in Albany.

The Citizens Budget Commission today pointed to the real-world effect of the blown deadline and the negotiations stretching into mid-April.

“We’re going to start to see the practical impacts on school districts, on the city of New York, on other entities that rely on the state budget to do their own fiscal planning,” Patrick Orecki, the group’s director of state studies, said.

Remember: the calendar is not a friend. Passover starts April 22, and lawmakers are scheduled to be out of town for two weeks. A budget left undone after next week could mean the spending talks bleed into May.

Nevertheless, top Democrats believe they are close to locking the budget down.

“We’re just trying to button up the last outstanding pieces, but they’re significant outstanding pieces,” state Sen. Mike Gianaris, a Queens Democrat, told Playbook. Nick Reisman

 

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FROM CITY HALL

New York City Council Speaker Adrienne Adams is seen at a meeting.

Council Speaker Adrienne Adams said she has received no formal notification from the mayor’s office about a new City Hall policy requiring lawmakers to fill out a form before speaking with a commissioner or senior agency staff. | John McCarten/NYC Council Media Unit

NOT PRO FORMA: Council Speaker Adrienne Adams expounded on her opposition to a new City Hall policy requiring lawmakers to fill out a form before speaking with a commissioner or senior agency staff.

“I have an issue with the executive branch of government issuing policies to any legislative branch of government,” she said. “I think it's inappropriate.”

Adams said she has received no formal notification about the new policy change from the mayor’s office, even as individual lawmakers have been rerouted to the form when requesting information from agencies.

The speaker — who already instructed members to ignore the new strand of bureaucratic red tape in a missive this week — stuck to that message today. She indicated the direct relationships built up between commissioners and their staff and members are essential to delivering services to New Yorkers.

“Our colleagues in the council respect the work of the commissioners,” she said. “The commissioners work very hard, and I dare say that this would make their day even more difficult as well.” — Joe Anuta

BOOKWORMS: The city’s three public libraries posted up outside City Hall today, getting Council members to pick up a book from their pile and fight budget cuts.

New York, Brooklyn and Queens are collectively pushing to restore $58.3 million in proposed budget cuts to their operating expenses, and $125 million to their capital budgets.

The libraries have effectively used their good reputation — who doesn’t like libraries?! — to push back on Mayor Adams’ cuts, which he said are necessary to balance the books.

For the photo op, Council Members Crystal Hudson and Althea Stevens both picked “The Color Purple,” while Council Members Keith Powers and Lynn Schulman each grabbed government classic “The Power Broker.”Jeff Coltin

On the Beats

Toby Ann Stavisky.

Higher education issues have yet to be resolved in budget talks, said state Senate Higher Education Chair Toby Stavisky. | AP Photo/Mike Groll

HIGHER ED BUDGET STILL TO COME: With issues like affordable housing and healthcare taking up much of the air in budget talks, little has been decided regarding higher education issues — such as what sort of funding SUNY and CUNY will receive.

They are also still discussing whether to expand its Tuition Assistance Program with a higher income threshold and broader eligibility, according to state Senate Higher Education Chair Toby Stavisky.

“From what I’ve been told by a number of people, they have not resolved any of the higher education issues,” Stavisky, a Queens Democrat, said. “My guess is that affordable housing and health care have to be at the top of the list.”

Stavisky has joined forces with her partner in the Assembly, Higher Education Committee Chair Pat Fahy, to create a campaign surrounding the expanding of TAP. — Katelyn Cordero

ILLICIT CANNABIS PROBLEMS TAKE CENTER STAGE — Licensed cannabis entrepreneurs and regulators alike highlighted New York’s problem with illicit cannabis sellers at today's Cannabis Control Board meeting — a problem that is particularly acute in New York City.

The Office of Cannabis Management touted the growth of the regulated market, which still pales in comparison to unlicensed cannabis sales across the state.

Dispensary licensee Berkay Sebat urged CCB meeting attendees to protest Assembly Speaker Carl Heastie’s office in the Bronx on Saturday over the speaker’s resistance to including cannabis enforcement provisions in the budget.

Heastie has repeatedly expressed resistance to doing policy on a range of issues during the budget process, including cannabis enforcement legislation proposed by Hochul and Assemblymember Jenifer Rajkumar.

Meanwhile, licensees expressed frustration with the bureaucracy of the cannabis agency.

“Get me out of this bureaucratic mess,” said cannabis entrepreneur Leonard Manning during public comment. “I’m stuck in OCM hell.”

Manning said he is ready to open after sinking his life savings into the business, but his repeated inquiries to regulators have left him uncertain about where he stands.

“The governor says she wants to revamp the OCM,” Manning said. “Governor, I’m here, ready to become the second [cannabis] store in Staten Island … Help me!” Mona Zhang 

BANKS TAKES AIM AT STATE AGENCY: Schools Chancellor David Banks blasted a long-awaited report by state education officials that found most parents and educators want changes to mayoral control of city schools.

The chancellor expressed disappointment with the state Education Department’s takeaways, including a finding that research shows no conclusive relationship between school governance models and student achievement like reading and math scores.

The city’s graduation rates rose from 50 percent before the arrival of mayoral control, instituted in 2002 under former Mayor Michael Bloomberg, to more than 80 percent under the policy.

His advice to state lawmakers who are weighing whether to extend mayoral control, set to expire June 30? Don’t let that report dissuade you, he said.

“My message is do not mess around and cause this system to take 10 steps backward,” Banks told reporters during a media briefing, referring to the previous school board system in place before mayoral control was put in place. “We see community school boards all across the nation behaving badly. We don’t want to find ourselves in that place.”

He also said the review does not highlight the impact of mayoral control as well as the school system’s gains compared to the rest of the state— he often touts achievements such as a reading curriculum mandate. The report, he said, was ultimately not conclusive.

The comments come as lawmakers weigh Adams’ calls for a four-year extension of the policy, which they declined to tackle in ongoing budget negotiations. The state Education Department’s findings and recommendations are in line with calls from legislators linked to the powerful city teachers union to strip the mayor of his authority over the DOE’s governing body.

In other news: Banks revealed to reporters that he’s been asked to testify on antisemitism before the U.S. House of Representatives’ Committee on Education & the Workforce on May 8. Banks said he’ll be joined by two other districts, but declined to share which districts will be participating. — Madina Touré

LATE BUDGET PUTS PRESSURE ON SCHOOL LEADERS: The New York State Educational Conference Board, a group of the state’s most powerful public education advocacy groups, sent a letter to lawmakers this week reminding them of the urgency to deliver a timely budget.

District superintendents need to inform voters of their budgets by May 21, but state law has several deadlines that begin for some districts as soon as April 23.

While budget negotiations stretched into May last year, the school aid laid out in the executive budget was largely accepted by the Legislature — making it a predictable budget process for districts. This year the fight to restore foundation aid changes proposed by Hochul has created a great deal of uncertainty, particularly for the 337 districts slated to receive cuts in the executive budget.

“School districts have not had to deal with a state budget that was both untimely and uncertain since 2010 – nearly a decade and a half ago,” the letter read. “This means that districts have not had to finalize a budget proposal with large uncertainties over state aid since the property tax cap took effect (starting with the 2012-13 school year). This makes a challenging process even more difficult.” — Katelyn Cordero

AROUND NEW YORK

— Donald Trump could use an unorthodox strategy in his Manhattan criminal hush money trial. (POLITICO)

— A New York City Council bill would require the city’s health department to distribute pellets that sterilize rats in two neighborhoods. (The New York Times)

— Incidents of subways hitting people have risen nearly 30 percent since 2018 despite lower overall post-pandemic ridership, and some train operators are traumatized. (THE CITY)

— The University of Albany hired an outside firm to review how the school handled an incident last month during which the mother of a student reportedly threatened to shoot employees. (Times Union)

 

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