Friday Morning Brief April 21, 2023

Apr 20

2024 Budget: The Beginning of the End?

With 3-way Budget negotiations still ongoing between Governor Hochul, Speaker Heastie, and Majority Leader Stewart-Cousins, the Legislature approved another extender during yesterday’s session. This three-day Budget extension would guarantee about 1,000 emergency state employees from the Division of Military and Naval Affairs get their paychecks. If the Budget is not approved by the end of the weekend, lawmakers must approve another extender on Monday to ensure that the rest of the state’s 80,000 employees get paid.

However, Majority Leader Stewart-Cousins said that even though the Budget would not pass this week, she hopes that “we are at the beginning of the end.” She explained that the Budget negotiations have been ongoing because the 2024 Budget is the “most policy-laden Budget.” This comes as it appears that discussions over criminal justice reforms are close to complete. Housing has become the hot issue for the leaders. "I have to have tenant protections," explained Stewart-Cousins.

It is believed that Hochul wants to expand affordable housing via policy which would lead to the state approving housing projects if a municipality fails to meet certain criteria. Although the Legislature agrees with Hochul’s goal to increase affordable housing, they disagree with the state’s ability to override local housing projects. This comes amid various lawmakers calling on the leaders of the Legislature to include Good Cause in the Budget, which would increase tenants’ rights and the ability to challenge unreasonable rent increases, defined as more than 3% or 1.5 times the Consumer Price Index. In fact, a growing number of legislators have said "they’d rather cut housing from the budget completely than approve a deal without tenant protections."

Although Stewart-Cousins believes the budget is close (Albany politicos have fingers crossed) Speaker Heastie noted that “nothing is finalized.” Of note, the current Budget negotiations are the longest it has ever been in nearly a decade. Senate Minority Leader Rob Ortt also released a statement decrying the process.

EXECUTIVE UPDATES

With Hochul’s nominees for Chief Judge and Associate Judge confirmed by the Senate this week, Hochul released statements on their confirmations. To read Hochul’s statement on the confirmation of Caitlin Halligan as Associate Judge, click here. To read Hochul’s statement on the confirmation of Rowan Wilson as Chief Judge, click here.

Hochul and Attorney General Letitia James released a statement voicing their disappointment after the US Supreme Court ruling in New York v. New Jersey allowed New Jersey to withdraw unilaterally from the Waterfront Commission of NY Harbor. The Waterfront Commission was established in 1953 to curb the influence of the Mafia and corrupt labor practices at the NY-NJ container port. “For decades, the Waterfront Commission has been a vital law enforcement agency, protecting essential industries at the port and cracking down on organized crime. We will continue to do everything in our power to combat corruption and crime, protect the health of our economy, and ensure the safety of New Yorkers,” said Hochul and James in their statement. To read the statement by Hochul and James, click here.

To increase tourism in the state, Hochul announced more than $14 million to be awarded to 30 tourism partners through the state’s EDA Tourism Partner Sub-Awards Grant Program. The award was made available through the federal Economic Development Administration’s Covid-19 recovery funding. “With our breathtaking views and landscapes, vibrant arts and culture, thriving business community, and more, New York is proud to welcome visitors from all over the world to experience what our state has to offer,” Hochul said. Awardees include:

Capital-Saratoga Region Tourism Association
NYC & Co
Underground Railroad Consortium of New York State
Destination Niagara USA

On Wednesday, Hochul announced that twenty healthcare networks and nonprofits’ 51 facilities would receive up to $50,000 to ensure safe access to reproductive healthcare. The total $1.68 million investment through the state’s Securing Reproductive Health Centers grant program was established after last year’s Supreme Court’s Dobbs v. Jackson Women’s Health Organization ruling. “These grants will help protect abortion access and ensure providers may continue to deliver critical services to those in need. As extremists in the courts and in other states continue their attack on our rights, New York will always fight to support providers and all patients who need care,” said Hochul.

With Earth Week drawing to a close, Hochul announced the installation of more than 30 megawatts of solar energy throughout Upstate. The new installation includes over 75,000 solar panels, enough to power over 7,000 homes and reduce 4,500 tons of carbon emissions. It will save roughly $10 million in energy costs for the state. This project is in coordination with the state’s Climate Leadership and Community Protection Act, which calls for 70% of the state's electricity to be generated from renewable energy by 2030. “By installing more than 75,000 solar panels at DOCCS facilities, New York continues to lead by example, paving the way for a brighter, greener future for all,” said Hochul in her statement.

Besides installing new solar panels throughout Upstate, Hochul announced the completion of eight new large-scale renewable energy infrastructure projects throughout the state. The projects, which started in the last six months, created more than 1,800 jobs and received about $800 million in private investment. The private investment contributed nearly $70 million to their host communities, which was given to schools, towns, and counties. The eight projects can generate 418 megawatts, powering more than 150,000 homes and reducing 600,000 tons of carbon emissions annually. These projects also coordinated with the state’s goal to generate 70% of the state’s electricity from renewable sources by 2030. “This Earth Week, we are seeing how clean energy can transform communities and lead to a greener future for all New Yorkers,” explained Hochul.

LEGISLATIVE/BUDGET UPDATES

Next week, the Legislature is scheduled to be in session Monday - Wednesday

Budget negotiations between Speaker Heastie, Majority Leader Stewart-Cousins, and Hochul are still ongoing. Yesterday, the Legislature approved a three-day Budget extension with a deadline on Monday. If Budget negotiations continue towards next week, the Legislature must approve another extension on Monday to ensure the state's employees get paid. Issues such as tuition hikes, climate action, and 421a renewal have been discussed in addition to criminal justice reforms and affordable housing. Other issues, such as charter school expansion, healthcare and casinos are still open.

Senate Confirms Hochul's Judicial Nominees

The Senate confirmed two judges into the state’s highest court this week. Rowan Wilson was confirmed as Chief Judge this Monday – the first Black Chief Judge in the state – and Caitlin Halligan was confirmed as Associate Judge the following day. Prior to their new posts, Wilson has served as an Associate Judge since 2017 and Halligan was a former Solicitor General from 2001 to 2007. Wilson was the second nominee from Hochul, as her first nominee, Hector LaSalle, was rejected after a pushback by Senate lawmakers. With their confirmation, the state’s highest court is free from any vacancies since August of last year. The confirmation comes as Hochul and the Legislature passed a bill enabling Hochul to select a sitting Court of Appeals judge for the Chief Judge. The Senate GOP has called it unconstitutional, but it remains to be seen if they pursue litigation.

IRC Releases New Assembly District Lines

Yesterday, the state's Independent Redistricting Commission released new district lines for the Assembly. The new Assembly district map comes after the courts ruled that the Legislature has no authority to draw new district lines early last year when the IRC failed to complete the new maps and after a series of lawsuits against the Assembly district lines. According to analyses, the new district lines are roughly 2/3 the same as those approved by the Legislature and rejected by the courts last year – 38 districts being the same and another 58 districts almost identical. Members held a conference on the maps yesterday and may vote on it later next week. However, litigants from last year's lawsuits are still fighting to ignore the new lines and require the appointment of a new special master for the Assembly lines. In addition to the Assembly, further challenges against the congressional lines are also in the courts.

*Senator James Sander, Jr., sponsor of S6266*

Legislation Proposed to Withhold Governor's Paycheck If Budget is Delayed

With the leaders of both chambers of the Legislature still negotiating the Budget with Hochul, lawmakers have not been getting paid due to a 1998 law prohibiting lawmakers from receiving their pay if the Budget was delayed. However, this week, the Senate introduced a bill prohibiting the Governor from being paid until the Budget pass. An Assembly version is expected to be introduced. If passed, the Governor and the Legislature would not receive their paychecks if the Budget is delayed in the following Budget process.

Bill for Medical Abortion Access in SUNY & CUNY

Amidst federal rulings regarding abortion medication, both chambers of the Legislature passed a bill enabling CUNY and SUNY campuses to provide access to medical abortion prescription drugs. “While the Supreme Court and states across the country roll back women’s access to abortion and reproductive health care, here in New York, we will not,” said Speaker Heastie. This comes as Hochul announced that the state would stockpile 150,000 doses of the abortion medication, misoprostol.

OTHER UPDATES

NYC On State Budget Delay

With the state budget delayed three weeks so far, Mayor Eric Adams explained that it has made it more difficult for him and the NYC Budget Director, Jacques Jiha, to assemble their city Budget due by the end of June. Because of the Budget extenders, “Jacques has to figure out how do I balance the budget without the certainty,” explained Adams. With that, Adams iterated NYC's need for support from the state during the migrant crisis. “We’ve had great conversations with the leaders of both chambers and the governor’s office to understand the urgency of the moment,” said Adams.

Adams Urges Biden for Migrant Work Authorization

Earlier this week, Adams urged President Biden and his administration to help support NYC in providing jobs for recent migrants living in the city. The ask for federal support comes as nearly 35,000 migrants are living in the city’s shelters, according to Adams. “They’re saying, ‘Can we work?',’’ said Adams in his push for getting work authorization for migrants. Currently, Adams’ administration explained that NYC had spent $817 million on migrants through March and expects to spend $4.2 billion through June of next year. To watch Adam's press conference on migrant work authorization, click here.

Bills to Restrict Facial Recognition On Agenda in NYC

NYC Councilmembers recently introduced two bills regarding the use of facial recognition technology in business and residential areas. The two bills are scheduled for a City Council meeting on April 27th.

T2023-3301 (Prohibiting places or providers of public accommodation from using biometric recognition technology and protecting any biometric identifier information collected): Sponsored by Councilmembers Shahana Hanif and Jennifer Gutiérrez
- Venues must publicly disclose a retention and destruction policy
- Biometric identifiers must comply with data protection, privacy, and security obligations
- Private right of action for civil damages up to $500 per negligent violation & up to $5,000 per intentional or reckless violation
T2023-3300 (Limiting the use of facial recognition technology in residential buildings): Sponsored by Councilmembers Carlina Rivera, Pierina Ana Sánchez, and Tiffany Cabán
- Owners are banned from installing or using facial recognition technology to identify tenants or guests

These bills come as James Dolan and his Madison Square Garden Entertainment were found to be using facial recognition to ban lawyers in active litigation against him from entering MSG’s venues.

NYC Council Wants More Funding for Arts in Public Schools

Amidst budget cuts across all of the city’s agencies, NYC Council calls on Adams to increase funding for arts at public schools throughout the city. This would restore some arts programs cut from last year’s $375 million enrollment-based budget cuts. Council lawmakers called for about $80 million investment in the upcoming city’s budget. Led by the chair of the Education Committee, Councilmember Rita Joseph seeks to increase $80 per student to $100 per student for arts. “If we really [want to] use the model [of] educating the whole child, music, theater, dance, should also be incorporated,” explained Joseph. This is in addition to the Council seeking to increase funding for the city’s free 3K program in the upcoming budget.

March Madness Sports Betting Surpass Records

Earlier this month, NYS Gaming Commission recorded that the state recorded $1.785 billion in accepted bets during March Madness, which was only $3 million less than the single-month record of $1.789 billion in January of this year. During last year's March Madness, the state recorded $150 million less than the total accepted bets during this year's March Madness. Since then, the state sports betting exceeded $1 billion in handle – the 13th time in 15 months – and the 8th time the state surpassed $1.5 billion in handle. During this year's March Madness, the state collected $162.8 million in revenue and over $83 million in state tax revenue.

Court Halts Congressional Investigation of Alvin Bragg

The 2nd Circuit of the US Court of Appeals temporarily halted a planned deposition of Mark Pomerantz, delaying Congressional GOP’s investigation of Alvin Bragg, the Manhattan DA. This comes after Bragg sued Ohio Representative Jim Jordans, who chairs the House Judiciary Committee. Pomerantz, a former Trump prosecutor who worked under Bragg, was subpoenaed by Ohio Representative Jim Jordans amidst Bragg filing 34 counts of felony charges against Donald Trump. Jordan must file a briefing to the appeals court by today, with Bragg’s response due the day after.

Why Buy Legal NY Campaign

To protect legal cannabis dispensaries in the state, the Office of Cannabis Management launched the Why Buy Legal NY Campaign. Primarily a digital media campaign, it aims to bolster sales in the legal cannabis industry and increase public awareness of the legal dispensaries towards adult consumers. Currently, only eight legal dispensaries are operating in the state, with a ninth opening in Union Square, NYC – the city’s fifth legal dispensary. The campaign comes as the OCM continues its enforcement of shutting down illegal dispensaries. To view all of the Why Buy Legal NY Campaign ads, click here.

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