Friday Morning Brief May 5, 2023

May 4

2024 Budget Approved By Lawmakers

After a protracted negotiation between Governor Hochul, Speaker Heastie and Majority Leader Stewart-Cousins, the NYS budget finally passed the budget this week. The final bills were passed on Tuesday night right before midnight. The $229 billion Budget includes numerous policies that will impact the lives of people living and working in the state.

As promised in Hochul’s press conference regarding the “conceptual agreement” that leaders had reached last week, criminal justice reform rollbacks were included in the final budget with the removal of the least restrictive standard; the stated goal of which is to tackle fears of repeat offenders and rising crime. Now, judges will have more discretion to incarcerate those awaiting trial for serious crimes and repeated offenders accused of committing felony offenses. Although many lawmakers pushed back against another rollback of criminal justice reforms, legislative leaders were able to find a landing spot regarding the governor's reforms, with additional funding for public defenders, anti-gun initiatives and mental health. This comes after Hochul faced a difficult matchup during last year’s election in which her opponent largely focused on fears of rising crime.

Notably, lawmakers and Hochul also agree to incrementally increase the minimum wage and index it to the Consumer Price Index by 2027. In NYC, the minimum wage would increase from $15 to $16 by 2024 and then $17 by 2026. In the rest of the state, the minimum wage would increase from $14.20 to $16 by 2026, then $17 by 2028. Further increases in the subsequent years would be tied to inflation. However, the minimum wage would not increase if the state has high unemployment or job loss rates.

Lawmakers also compromised on charter schools - they agreed to open up fourteen zombie charter schools in NYC and an additional eight charter schools across the rest of the state. Gov Hochul originally wanted to lift the regional cap on charter schools, but faced significant opposition from the legislature and teachers unions. The charter school compromise comes amidst $34 billion in state funding for schools and a 100% fully funded Foundation Aid formula.

One large item that did not make it into the final Budget was Hochul’s Housing Compact (ostensibly one of the largest sticking points during the budget process), which planned to build 800,000 new affordable housing units over the next decade through construction mandates and zoning overrides. This faced significant pushback from suburban lawmakers who saw Hochul’s plan as an overreach. Amidst all of this, good cause eviction policy also fell out of negotiations. However, $391 million will be provided for rental assistance. It remains to be seen if Hochul will pursue executive actions or legislative policy on housing in the coming weeks.

A sprint of five more weeks remains this session. When asked about her goals for the final weeks of session, Hochul stated that she wants to work with the Legislature on their bills to ensure fewer vetoes.

EXECUTIVE UPDATES

Hochul announced the formation of the Micron Community Engagement Committee to support the state's semiconductor project. Made up of local stakeholders, the committee will develop a community priorities document to guide strategies in various topics to ensure economic growth and equity. Melanie Littlejohn and Tim Penix will both chair the committee.

On Arbor Day, Hochul publicly released the new $3 million grant funding to support community tree projects and protect natural resources. The new grant program is hoped to strengthen the community forests and local forestry programs in the state. The grant will be available to municipalities, Native American Nations, and not-for-profit forestry organizations. "These community partnerships will protect and enhance our state's natural resources and beautify our neighborhoods while also improving quality of life for a greener future," said Hochul.

In an effort to support the state's goals to reduce greenhouse gases by 85% by 2050, Hochul announced NY Green Bank to release a $250 million Community Decarbonization Fund. The new fund will provide low-cost capital to Community Development Financial Institutions for local clean energy and building electrification projects.

Joined by Eric Adams, Hochul launched the Future Housing Initiative. The new initiative will invest $15 million to fast-track 3,000 energy-efficient carbon-free affordable housing in NYC. NYC Housing Preservation & Development and NYSERDA will jointly run the new initiative. The new initiative will also support the state's goals of reducing greenhouse gases by 85% by 2050. "I'm proud to partner with Mayor Adams on this critical effort, which will help us reach our nation-leading climate goals, improve access to affordable housing in our communities, and build a healthier, greener New York for all," said Hochul.

Yesterday, Hochul announced that $875 million in financing had been awarded to create or preserve 3,100 affordable housing in 27 developments across the state. The $875 million has been awarded through bonds, tax credits, and subsidies. The 27 developments receiving funding will create more than $1.5 billion in overall investments. This comes as Hochul's Housing Compact has been nixed from the final 2024 Budget, iterating her support for affordable housing. "This funding will ultimately create more places for seniors and vulnerable residents to live independently, apartments that young people can afford, and revitalized communities where businesses can succeed and grow their workforce," said Hochul.

In a proclamation celebrating May as Asian American and Pacific Islander Heritage Month, Hochul opened a new exhibition on the second floor of the Capital. The New York Stories: Voices from Asian American Pacific Islander Communities celebrates Asian Americans and Pacific Islanders and highlights their achievements in the state. "New York has long served as a beacon of hope for immigrants and marginalized communities who are looking for a safe haven and a land of new opportunities. Our AAPI communities make us stronger, more resilient, and more innovative, and I hope that this month brings great joy as many across the state celebrate their rich heritage," said Hochul. To learn more about the exhibit, click here.

Right before the Budget was approved by lawmakers this week, Hochul joined Inside City Hall to discuss her priorities during the Budget negotiations, including her failed Housing Compact. Hochul also joined PIX 11 Morning News and Fox 5's Good Day New York to discuss about the final Budget. To watch her interview about some of the policies passed by the Budget with Inside City Hall, click here.

LEGISLATIVE/BUDGET UPDATES

5 more session weeks before the legislature adjourns until Jan.
Next week, the Legislature is scheduled to be in session Monday - Wednesday

The budget also contains a variety of other significant provisions, including the following:

Education
The final Budget includes a $34.5 billion investment in schools and education. $150 million will be invested towards Pre-K, ensuring that 95% of the state could access universal Pre-K. The overall education funding will also be invested towards CUNY and SUNY, with $2.4 billion for capital projects and $500 million state matching for SUNY endowments. Lastly, $2.6 billion will be provided towards Foundation Aid, enabling it to be fully funded for the first time. “All New Yorkers deserve access to a high-quality education, from prekindergarten through their college graduation,” said Hochul.

Notably, the Budget will provide $134 million to give students in qualifying low-income schools free school meals.

Climate Action
Regarding environmental protections and climate action, the Budget will prohibit new housing from installing fossil fuel heating and cooking equipment. The ban will go into effect for new buildings under seven stories starting in 2026 and 2029 for larger buildings. Of note, the ban will not impact existing homes with fossil fuel heating and cooking equipment. Also, under the final Budget, NYPA would be empowered to own and operate renewable energy facilities. Lastly, the cap-and-invest program was also approved in the final Budget, which plans to reduce the state’s greenhouse gas emissions and use the revenue from the program towards new renewable energy programs.

MTA
In the final Budget, the state will help fund the MTA through a one-time payment of $300 million and requiring NYC to invest $165 million annually. The payroll tax will also be increased to help fund the MTA with the expected revenue of $1.1 billion. Further, tax revenues from future downstate casinos (varying percentages, depending on location and new/conversion) will also be directed toward the MTA. This comes as MTA faces a $3 billion deficit.

Other notable policies in the Budget include a $700 million film tax credit, which would incentivize film productions in the state, and a $455 million loan to modernize Belmont Racetrack in Long Island, which would improve economic development in the region.

Regarding the migrant crisis in NYC, the state will provide $1 billion under the final Budget. To improve mental health, the state will make a multi-year investment of $22 billion to improve the state’s healthcare system, with $1 billion in healthcare capital funding for providers and expanded Medicaid benefits for inpatient hospital services, nursing homes, outpatient services, and assisted living providers.

Many other issues in addition to housing were nixed from the final Budget, including the ban on menthol cigarettes after lawmakers raised concerns of racial over-policing. Discovery reforms were also removed from the proposed criminal justice reforms, which would have changed 2019 discovery laws.

To get more information about the contents of the final Budget, such as cannabis enforcement and child care, click here.

GOP Lawmakers on the Final Budget Process

As the final bills of the Budget were being printed earlier last weekend, it was printed with the issuance of a message of necessity, enabling the final Budget bills to be voted on by the lawmakers immediately instead of waiting for the required three days. This comes after the GOP lawmakers held a press conference urging Hochul not to issue messages of necessity to make time for lawmakers and the public to read the Budget bills. Additionally, the GOP Assemblymembers rebuked the now permanent 15-minute time limit rule, which limits the members to debate on one Budget bill to 15 minutes and caps the total debate on the bill to 4 hours. This enabled the Assembly to finish debating the Budget bills right after the Senate finished their debates on Tuesday night. Before the new rule, the Assembly usually debated on the Budget bills all night.

Reproductive Health Bills Signed by Hochul

The bill enabling CUNY and SUNY campuses to provide access to medical abortion prescription drugs has been signed by Hochul. This came in response to the US Supreme Court ruling on mifepristone, the abortion medication, and an upcoming case in the 5th Circuit Court of Appeals. Hochul signed the bill alongside another bill that enables pharmacists to dispense hormonal contraception over the counter.

Bill to Combat Substance Use Disorder Passes the Senate

In an effort to help the state combat drug overdose deaths, the Senate passed a bipartisan bill to help support service providers treat patients with substance use disorders. Under the bill, sponsored by Nathalia Fernandez and co-sponsored by Jacob Ashby and Rob Rolison, hospitals would be required to offer treatment and provide educational materials to patients on substance use disorder and withdrawal symptoms. The bill memo states, "There should [not be a] wrong door to enter treatment. If someone is admitted to the hospital at risk of suffering from addiction, everything should be done to make sure that the individual gets connected to services that can help them." The bill has now been delivered to the Assembly.

Appointment of Medicaid Director Bill Passed the Senate

A bill regarding the appointment of the state’s Medicaid Director has passed the Senate and delivered to the Assembly. The new bill would enable the Governor to appoint a new Medicaid Director and the Senate to approve the appointment. Currently, the state’s Medicaid Director serves as a Deputy Commissioner within the Department of Health.

OTHER UPDATES

Expanded Dental Coverage Under Medicaid

As a result of a class-action lawsuit against the state Health Department, five million New Yorkers using Medicaid will now have expanded dental coverage. The lawsuit, which was filed in 2018, claimed that the state was denying low-income New Yorkers from getting common but costly dental procedures and that dental health was essential to an individual's overall physical and psychological health. Under the new rules from the lawsuit settlement, root canals, dental crowns, and denture procedures would be covered by Medicaid.

NYC Officials Joins the Met Gala

This week, the annual MET Gala took place with various NYC officials joining the celebrities on the red carpet. These included:

•   City Comptroller Brad Lander
•   NYC Council Speaker Adrienne Adams
•   City Parks Commissioner Sue Donoghue
•   Cultural Affairs Commissioner Laurie Cumbo
•   Councilmember & Chair of the Cultural Affairs Committee Chi Ossé
•   Councilmember Keith Powers

However, one notable public official that was missing from the Gala was Mayor Eric Adams. Instead, Adams attended the Hotel Association of New York City Foundation’s Red Carpet Hospitality Gala and the Literacy Partners Gala.

Talk With Eric

Earlier this week, Eric Adams announced his series of neighborhood-specific town halls to engage with community members in each of the eight NYPD patrol boroughs on various issues. This is his second series of neighborhood-specific town halls after last year’s series of eight “Community Conversations on Public Safety,” This year’s "Talk with Eric" town halls will include issues other than public safety. The town halls will start later this month and continue throughout the year. “I always say I’m an on-the-ground mayor, and engaging with everyday New Yorkers is how I’m able to hear about the issues that matter most to the people who make New York the greatest city in the world,” said Adams. This comes after the release of the city’s 2024 Budget. City lawmakers have until July 1st to reach an agreement on the city’s Budget. To get more information on Adams’ proposed NYC Budget for 2024, click here.

Extension of NYC Water Bill Amnesty Program

On Monday, Adams announced the extension of the city’s water bill amnesty program for an additional month. The program, announced in January, was only set to last for three months before the recent extension. According to Adams, the program has already brought in more than $80 million from delinquent accounts, saving more than $12 million in interest. Currently, the city’s Department of Environmental Protection noted that a total of $4.2 million in billing credits had been granted to low-income homeowners. Money saved through this program would be used to invest in the city’s water system. “By extending our water bill amnesty program by an extra month, more New Yorkers will be able to pay off their debts and save on paying interest, leaving more money in working people’s pockets. The funds we receive help us maintain our critical water infrastructure and keep costs low for everyone” said Adams.

Protests Erupt Over Proposed Rent Hikes in NYC

During Tuesday’s meeting of the NYC Rent Guidelines Board, which was voting on the preliminary guidelines for rent hikes for rent-stabilized tenants, protests erupted onto the stage. The protests were joined by tenant advocates and progressive councilmembers Chi Ossé, Tiffany Cabán, Sandy Nurse, Shahana Hanif, and Alexa Avilés. Nevertheless, the board approved 5-4 to recommend increasing rents by 2-5% for one-year leases and 4-7% for two-year leases. The preliminary vote is the initial step, with the board approving the final set of increases before the end of June, which will go into effect on October 1st. Adams, in response, released a statement saying, "A seven-percent rent increase is clearly beyond what renters can afford and what I feel is appropriate this year."

In Memoriam

Longtime Albany fixture and friend of many, Jeff Buley passed away on Tuesday, April 25. A service honoring his life was held yesterday at Albany Law School.

Donations may be made in his honor to Addictions Care Center of Albany, 90 McCarty Avenue, Albany, NY 12202, or to Northern Rivers Family of Services, PO Box 8899, Albany, NY 12208 (https://www.northernrivers.org/giving/make-a-donation).

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