Where lawmakers and Hochul can agree

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Apr 11, 2024 View in browser
 
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By Nick Reisman, Jeff Coltin and Emily Ngo

Presented by Google

With help from Irie Sentner

The New York state Capitol is pictured in Albany, N.Y.

Gov. Kathy Hochul and state lawmakers remain at odds over a range of issues surrounding housing and Medicaid spending but appear to agree more on migrant funding, cannabis enforcement and retail theft. | Hans Pennink/AP

New York’s budget is more than 10 days late as Gov. Kathy Hochul and state lawmakers remain at odds over a range of thorny issues surrounding housing and Medicaid spending.

But the disagreements have also masked some areas where there is less daylight between the governor and top Democrats in the state Assembly and Senate.

Here is where things stand on some of the budget priorities where there appears to be an accord:

Migrant funding: A plan to spend $2.4 billion on migrant aid has largely sailed through the budget negotiations.

Two people familiar with the talks said the final budget agreement will include that level of spending to support migrant housing, legal aid and other resources.

The money is short of what Mayor Eric Adams wanted; he called for the state to pick up half of the city’s migrant costs, which he has pegged at $12 billion.

Still, Assemblymember Jenifer Rajkumar, an Adams ally in Albany, called the funding “an important step forward.”

“Now, the state must do even more to lead on the migrant crisis, including providing additional funding and organization to manage the influx of asylum seekers,” she said. “This is not just a New York City issue, it is a state issue.”

Adams’ office in a statement said it was grateful for the efforts state officials have provided so far, but added “no municipality should bear the brunt” of the crisis alone.

Hochul was in Washington Wednesday, and she met with Acting Labor Secretary Julie Su for a discussion, in part, about making it easier for migrants to find work while in New York.

Cannabis enforcement: Swapping a potency tax for cannabis products in exchange for an excise tax is expected to be in the final budget deal, state Sen. Jeremy Cooney told Playbook on Wednesday.

Lawmakers and Hochul are also in agreement on an enforcement plan meant to shutter illegal weed businesses, as first reported by the Times Union.

But Cooney believes the enforcement plan needs to be packaged with a change in how legal cannabis is taxed. The potency levy has hindered legal cannabis shops by making the product more expensive. An excise tax could even the playing field for legal shops that compete with the unlicensed marketplace.

"It’s very clear to me the priority of the Legislature is fixing the enforcement issue, making sure we can padlock these illegal stores in a timely manner,” he said. "But let’s not also forget our responsibility as a legislature to opening up new legal dispensaries."

Retail theft: Boosting penalties for assaulting a retail worker as Hochul proposed remains a heavy lift for Democratic lawmakers.

But one lawmaker on Wednesday said “some version” of the measure, which increases the penalty for assaulting a retail worker from a misdemeanor to a felony, could end up in the final budget.

The issue is due to be one of the last ones that lawmakers will cover before locking down a final budget deal.

Lawmakers expect additional funding to aid law enforcement in addressing the issue will be included in a final agreement.

“It’s really important that we send a message with the retail workers,” state Sen. Jessica Scarcella-Spanton, a Staten Island Democrat and a supporter of increasing the penalty, said. “We send a message that we support them, that their lives are valuable.” Nick Reisman

HAPPY THURSDAY: Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman.

DO WE HAVE A BUDGET YET? No.

WHERE’S KATHY? In Albany with no public schedule.

WHERE’S ERIC? Delivering remarks at New York City Football Club’s rally in support of the Willets Point Transformation.

QUOTE OF THE DAY: “We believe that we need to take a shock-and-awe approach to the rat problem by throwing everything we have at it.” — City Council Member Shaun Abreu, to the New York Times, speaking about a bill to be introduced today on rodent birth control.

 

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ABOVE THE FOLD

Former President Donald Trump gestures as he visits a Chick-fil-A eatery, Wednesday, April 10, 2024, in Atlanta.

In 14 interviews, Republicans expressed more confidence in their chances of neutralizing the contentious issue of abortion while Democrats described plans to stay on the offensive. | Jason Allen/AP

TRUMP SETS TONE?: Former President Donald Trump’s declaration this week that abortion laws should remain under the control of states instead of the federal government is giving swing-district House Republicans some political cover — or so they hope.

“I have been very consistent on this issue: I oppose a federal ban,” Hudson Valley Rep. Mike Lawler said.

“I remain firm in my opposition to any proposed nationwide abortion ban,” Long Island Rep. Anthony D’Esposito said.

In 14 interviews, POLITICO reports today, Republicans expressed more confidence in their chances of neutralizing the contentious issue while Democrats described plans to stay on the offensive. Their campaigns argue Trump is inherently untrustworthy and would still support a national ban if there is a political upside. They point to his Supreme Court appointments who were pivotal in the Dobbs decision.

“This is their legacy, and they own it,” said Democrat Laura Gillen, who is challenging D’Esposito.

“Donald Trump has not given Mike Lawler cover,” Democrat Mondaire Jones said, “because Donald Trump’s record of supporting and being instrumental in the overturning of Roe v. Wade is Mike Lawler’s record.” Nick Reisman and Emily Ngo

 

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CITY HALL: THE LATEST

A framed photo of NYC Mayor Jimmy Walker sits on Mayor Eric Adams' mantle in his City Hall office, on April 10, 2024.

As a corruption investigation touches Mayor Eric Adams and his inner circle, former Mayor Jimmy Walker’s legacy could be a cautionary tale. | Jeff Coltin/POLITICO

108 OTHERS TO CHOOSE FROM: On the mantle in his office, Adams keeps a framed photo of Mayor Jimmy Walker — the Jazz Age leader who resigned in disgrace amid a corruption scandal.

“Wouldn’t be the one I’d choose,” quipped Michael Wolraich, who published a book this year on the bribery scheme that brought down Walker in 1932. “New York city has a long list of more illustrious mayors.”

Adams has been compared to Walker before, and often in an unflattering light, given their shared affinity for fine dressing and the city’s nightlife. Walker’s Central Park Casino was Adams’ Osteria La Baia.

So the Walker photo grabbed Playbook’s attention when Adams welcomed a high school hockey team into his office for a photo-op Wednesday.

Why Walker, of all the mayors? Playbook asked. “I rotate them out,” Adams said, straining credulity. “All my mayors get up there, one time or another.”

As a corruption investigation touches Adams and his inner circle, Walker’s legacy could be a cautionary tale.

Walker was incredibly popular and embodied the exuberance of the roaring ‘20s, Wolraich said. “He didn’t accomplish a lot, but the biggest issue was the corruption. If he didn’t have that stain, he would be remembered a lot more fondly.” — Jeff Coltin

SPOTTED: Council Member Justin Brannan having lunch Wednesday at Smith & Wollensky with businessperson John Catsimatidis, talking about a Coney Island ferry, per a tipster.

The billionaire has big real estate interests in Brannan’s district and has long wanted a ferry. “John is an old friend, and it was good to catch up,” Brannan said. — Jeff Coltin

More from the city:

Council leaders vowed to defy a new policy controlling interactions with senior officials in Adams’ administration that’s been met with concern internally, too. (Daily News)

More details emerged in a Securities and Exchange Commission filing by DocGo on the partial extension that the city had described as a wind-down. (Times Union)

House Republicans in a letter pressed Adams on whether any federal funds are being used for his city’s prepaid debit card program for migrants. (Fox News)

 

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NEW FROM PLANET ALBANY

Comptroller Tom DiNapoli

In the 2022 federal fiscal year, New York generated $361.8 billion in federal taxes and benefited from $383 billion in federal spending, Comptroller Tom DiNapoli said. | Richard Drew/AP

FIRST IN PLAYBOOK: New York is still reaping the benefits of federal pandemic relief funds, a new report set to be released today by Comptroller Tom DiNapoli.

New York traditionally gave much more to the federal government in tax revenue than it received back in aid for programs and services. But the situation flipped during the Covid-19 pandemic when states’ coffers were flooded with federal help to address skyrocketing unemployment and healthcare emergencies.

In the 2022 federal fiscal year, New York generated $361.8 billion in federal taxes and benefited from $383 billion in federal spending, DiNapoli said.

So for every tax dollar paid to Washington, the state received $1.06 in return. It’s the third year in a row that New York has had a positive balance, the report said.

Only five states — Massachusetts, New Jersey, Washington, New Hampshire and California — had a negative balance that year. But DiNapoli had a warning: the federal windfall is ending, so the state government needs to adjust spending in future years as deficits are expected to soar.

“As this relief comes to an end, New York’s balance of payments with Washington may again turn negative as federal support returns to pre-pandemic levels,” he said in a statement. — Joseph Spector

ALL ABOUT BENJAMIN: Former Lt. Gov. Brian Benjamin plans to appeal to the U.S. Supreme Court after an appeals court reinstated bribery charges against him last month.

Benjamin’s lawyer Barry Berke applied for more time on Friday to file a cert petition, since SCOTUS is expected to rule this term on another case that also deals with elected officials’ quid pro quos.

It seems unlikely the high court would take Benjamin’s case. Defining official bribery is a hot issue, but the court typically prefers for a case to be resolved before hearing it.

But the attempt alone may put further pressure on U.S. Attorney Damian Williams’ office to drop the case — which Benjamin’s team thinks has to happen after the key witness died.

Berke and Williams’ office both declined to comment. Jeff Coltin

VISITING RIGHTS: Criminal justice advocates are beginning to press lawmakers to approve a measure meant to bolster the rights of families visiting loved ones in prison.

The measure has struggled to gain traction in the Assembly since it was introduced in 2021 during the Covid-19 pandemic.

Advocates are expected to travel to Albany on Tuesday to push the state Assembly to bring the bill to the floor for a vote.

“As the adult daughter of a formerly incarcerated parent, I know firsthand the importance of in-person visits,” Amanda Acevedo, the director of reentry and services at the advocacy group New Hour said. “In-person visits were something that my father, my sister and I looked forward to. It was the only opportunity that we had to hug, kiss, take pictures and play card games together.”Nick Reisman

KEEPING UP WITH THE DELEGATION

George Latimer raised more than $2.2 million last quarter, again doubling his NY-16 primary opponent Rep. Jamaal Bowman’s haul. (Gothamist)

FOR YOUR RADAR: News 12 will host an hour-long “town hall” debate between Latimer and Bowman on May 13. It starts at 8:30 p.m.

NEW YORK STATE OF MIND

— The NYPD updated its dress code, banning shorts on transit, white turtlenecks while on patrol and tactical cargo pants. (Daily News)

— The Bronx DA’s office has assembled a team of prosecutors to review claims of sexual assault made by former detainees on Rikers Island against jail staff and established a tip line for victims. (Gothamist)

— Thirteen young Hasidic Jewish men were arraigned on charges related to allegedly breaking through the wall of a famous Brooklyn synagogue in January. (New York Times)

 

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SOCIAL DATA

Edited by Daniel Lippman

MEDIAWATCH: It’s (iconic NY1 anchor) Dean Meminger’s New York City, We’re Just Living in It (Hell Gate)

— “How a Case Against Fox News Tore Apart a Media-Fighting Law Firm: Tensions had been brewing for years inside Clare Locke, a top defamation law firm. Then came the biggest defamation case of them all,” by NYT’s David Enrich

— “Wall Street Journal Has Yet Another Round of Layoffs: The layoffs, which came after months of cuts, impacted the social media and video desks,” by The Daily Beast’s Corbin Bolies

— Matthew Rose has been named editorial director of the New York Times’ opinion section. He most recently was chief enterprise editor at The Wall Street Journal.

MAKING MOVES: The Rockefeller Foundation has hired Oryx Strategies CEO Eason James as senior vice president for connected leaders. … DCI Group has added Will Feuer to help grow its presence in New York City. Feuer was most recently a finance reporter for the Wall Street Journal.

HAPPY BIRTHDAY: Citi’s Ed Skyler … SKDK’s Mariel Sáez and Rae Robinson Trotman Don Graves … MSNBC’s Raelyn JohnsonAmanda GoldenHolly GeffsAlexander Douglas  Erika Masonhall (WAS WEDNESDAY): Jeffrey Frank ... Lisa Belkin

YOUR NEW YORK NUMBER OF THE DAY

90,000

Number of packages that Adams said are stolen every day as he announced parcel storage lockers at seven city locations, Gothamist reported.

 

Join POLITICO on Wednesday, April 17 at 6:00 p.m. ET for networking over cocktails and passed hors d'oeuvres. Don't miss your chance to meet POLITICO's New York editorial team and learn more about their coverage of current affairs in Albany. RSVP here.

 
 
 

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