Friday Morning Brief March 17, 2023

Mar 17

Hochul on the Aftermath of Signature Bank Collapse

On Sunday, state regulators closed Signature Bank, a Manhattan-based commercial real-estate lender, two days after the shutdown of Silicon Valley Bank. State regulators quickly turn the bank over to the FDIC, where the FDIC will take over and run the day-to-day operations.

On Monday, Governor Hochul assured NYers that the takeover of Signature Bank was necessary to guarantee that the “entire banking community here in New York was stable.” Adding on, “Small businesses overall [are] the lifeblood of our city and our state, and we wanted to make sure that they also had the confidence to know that their deposits and ability to make payroll were protected.

The FDIC will ensure that deposits, including those above the $250,000 limit, would be federally protected. “I want [NYers] to know once again, despite the jitters over the weekend…the banks are open, the assets are protected, the deposits are protected,” said Hochul. FDIC has asked interested banks in acquiring Signature Bank to submit bids by today.

For more information, click here.

EXECUTIVE UPDATES

Hochul joined Fox5’s Good Day New York on Thursday morning, discussing various issues, including bail reform, expansion of charter schools, MTA funding, MSG tax exemption, and mental health. Starting with public safety as her “number one focus,” she iterated her support for removing the “least restrictive means” standard from the bail laws. To watch the full interview, click here.

NYSDOL released a report on the gender wage gap on the national Equal Pay Day, highlighting that NYS has been gradually closing its gender wage gap. With NY women earning 88 cents for every dollar men earned in 2021, it is the second smallest gender wage in the U.S., after Vermont. “My administration is fully committed to closing the gender wage gap, especially for the single mothers and women of color who are disproportionately affected, because better working conditions for women means a stronger, fairer economy for all,” Hochul said in a statement.

Hochul announced the opening of another cannabis dispensary in the Southern Tier region on Wednesday. William Jane opened its door on Thursday at 119-121 E. State Street, Ithaca. William Jane is the first justice-involved-owned CUARD dispensary, with its owner, William Durham, previously incarcerated by past cannabis prohibition. “With the opening of William Jane in Ithaca, we’re continuing to build an adult-use cannabis industry in our state that works to offset the harms caused by disproportionate arrests made during cannabis prohibition,” said Hochul. Senator Lea Webb also added that the opening provides “economic opportunities for agricultural partners and folks who have been disproportionately harmed by the criminalization of cannabis.”

Hochul highlighted her proposed NYS Housing Compact on Thursday as both chambers rejected it from their respective one-house budgets. The Housing Compact would address the housing crisis and build 800,000 new homes in the next decade. More than 100 business and nonprofit leaders endorsed Hochul’s Housing Compact. For more information and the complete list of organizations that endorsed Hochul’s Housing Compact, click here.

LEGISLATIVE/BUDGET UPDATES

Next week, the legislature is scheduled to be in session from Monday - Thursday

The Senate and the Assembly released their one-house budgets this Tuesday afternoon. On Thursday afternoon, both chambers passed their one-house budget resolutions. Just two more weeks remain until the April 1st budget deadline. "This is the beginning of the middle," said the Senate Majority Leader.

Some notable highlights from both budgets include:

Removal of CUNY & SUNY tuition hikes and support increased funding
Removal of MTA increased pay-roll tax in NYC metro area
Providing additional funding for MTA through parking permits & corporate tax
Support an additional $1 million to the Foundation Aid Study
Support the Increased Film Tax Credit from $425 million to $700 million
Support the $455 million funds for the Belmont Racetrack
Suggest indexing of minimum wage to inflation after first raising the minimum wage
Support economic incentives to encourage new housing development instead of zoning overrides.
Supports additional funding for improvements in local boards of election
Provide an additional $1.7 billion for Foundation Aid
Keep existing current bail laws
Exclusion of Hochul's flavored tobacco ban

To read the full Senate budget recommendations, click here.
To read the full Assembly budget recommendations, click here.

OTHER UPDATES

Ed Cox to Lead GOP in NYS

Members of the state GOP voted unanimously to bring back Ed Cox into the state party’s chair. This comes weeks after numerous speculations of him running and various pre-endorsements from party members. Cox was the chair of the state GOP from 2009 to 2019, with Nick Langworthy succeeding him. Langworthy is now a Congressmember from western NY following his victory in last year’s general elections. "We are now on the offensive," said Cox regarding next year's state elections.

A Rally In Support for Belmont Park Renovation Held on Monday

On Monday, over a hundred advocates and lawmakers gathered inside the Capital for a rally in support of the redevelopment of Belmont Park. Under the Governor’s budget proposal, the state would lend $455 million to renovate Belmont Park for year-round horse racing. The one-house budget from both chambers also includes the $435 million loan.

Childhood Cancer Research Fund Contribution In Income Tax Returns

The Senate passed a bill that would enable a choice for NY taxpayers to contribute to the Childhood Cancer Research Fund in their personal income tax return. Sponsored by Senator Toby Ann Stavisky and Iwen Chu, a new personal income tax return space would be provided for an option contribution check-off to the Childhood Cancer Research Fund.

NYC Signs Criminal Justice & Mental Health Bills

On Tuesday, Mayor Adams signed five City Council bills regarding mental health and criminal justice.

Intros. 439; sponsored by Councilmember Nantasha Williams: evaluate the performance of organizations that receives funding from the City for criminal justice-related services
Intros. 756; sponsored by Councilmember Kamillah Hanks; provide training and operational support to not-for-profit organizations participating in the City’s Crisis Management System (CMS)
Intros. 436; sponsored by Councilmember Althea V. Stevens: creates a juvenile justice advisory board consisting of twenty members.
Intros. 522; sponsored by Councilmember Erik Bottche: require mental health professionals to be available in each family with a children's shelter to provide on-site or telehealth mental health services.
Intros. 524; sponsored by Councilmember David Carr: lowers interest rates for property tax arrears owed by properties assessed at $250,000 or less that have entered into a payment plan with the city.

“The five bills we are signing today help struggling homeowners, give young people a voice in juvenile detention, support our families and children living in shelters, and provide support for our gun violence interrupters,” said Mayor Adams.

NYC Campaign Finance Board on Mayor Adams' Alleged Campaign Finance Violations

NYC Campaign Finance Board held a board meeting on Wednesday with Mayor Adam’s attorneys regarding Adam’s three alleged campaign finance violations. The issues stemmed from Adams’ 2021 Transition and Inauguration Entity, which allegedly accepted “prohibited donations.” Adams’ attorney Ardian Tagani explained that the Adams’ campaign refunded the donations of concern. The fine for the violations could range between roughly $20,000 to $50,000. Tagani argued for reducing proposed fines, calling the amount “entirely excessive and overly punitive.”

NYS To Lower Standardized Testing Cutting Scores

The Board of Regents looks to lower the cutting scores on the state math and English language arts (ELA) test after a scoring committee reported last year’s lower scores as the “new normal.” “Yes, there’s learning loss between 2019 and 2022, but in some ways, we don’t want to keep going backward,” Technical Advisory Committee Co-Chair Marianne Perie said. “We’re at this new normal. So, we are saying the new baseline for New York is 2022.” The cutting scores will be reset to this spring’s ELA and math tests and the U.S. history Regents exam in 2024.

Longer Store Hours for Albany's Liquor Stores

Albany County Legislature Majority Leader Dennis Feeney advanced a resolution requesting the state Liquor Authority to expand the county’s wine and liquor store hours by three hours during the holiday season from November 15 to January 7. Currently, the stores may be open from 9 A.M. to 9 P.M. except for Sundays when the stores may open at noon.

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