New York City has a state budget problem

Presented by NY Renews, a project of Tides Advocacy

The tardy state budget is starting to make things difficult for New York City.

The mayor and City Council are required by law to release an updated budget of their own by April 26, yet most Capitol prognosticators are saying the governor and Legislature would be lucky to wrap up by then.

That’s a problem.

Gov. Kathy Hochul has proposed hitting the city with a number of new costs in her budget proposal, none more prominent than a new $500 million annual contribution to the Metropolitan Transportation Authority. The Assembly and Senate, however, left that out of their one-house budgets.

So what’s a budget director to do?

“It’s nearly impossible for the Council and the mayor to engage in our budget negotiations in any real way until we know what’s going on with Albany,” Council Member Justin Brannan, chair of the Council Finance Committee, said in a statement.

In theory, the Adams administration could ask the Council to amend the law and push back the deadline, giving them more time to wait out state lawmakers. That, however, does not seem to be the vibe emanating from City Hall. Mayoral spokesperson Fabien Levy gave no indication that the administration is planning to be late by association.

“While we will not engage in hypotheticals, as always, we remain focused on strong fiscal management, and will deliver a responsible, on-time, balanced executive budget,” he said in a statement.

Typically, the city does not recognize revenues or costs from the state until Albany produces a finished product. Omitting it in the upcoming spending plan would leave a huge unknown just as the financial picture for the upcoming fiscal year is supposed to be getting clearer. Putting it in, however, would leave less money for the mayor to put toward his priorities.

In 2010 — the last time a state budget ran past the city’s deadline — then-Mayor Mike Bloomberg opted to reflect elements of the governor’s plan, according to Ana Champney of the Citizens Budget Commission. Bloomberg then held an extra budgeting session during the summer once the details from Albany were known.

What the Adams administration will choose, however, is anyone’s guess.

“I think it is still an open question of what they do this time around,” she said, “especially since we are not in an era of months-late State budgets.”

IT’S WEDNESDAY. Got tips, suggestions or thoughts? Let us know ... By email: [email protected] or on Twitter: @annagronewold

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

WHERE’S ERIC? In New York City making an announcement about asylum seekers at City Hall. He will later meet with the Council of Fashion Designers of America before attending the opening of a new laundromat/bar in Brooklyn. In the evening he will speak at an event at Gotham Hall for the Union Settlement Association.

What City Hall's reading

“Progressives to Challenge Adams Over Cuts to Schools and Libraries,” by The New York Times’ Emma Fitzsimmons: “The city’s $100 billion-plus budget will be the next major flashpoint. On Wednesday, the City Council’s powerful Progressive Caucus will release its list of spending priorities, laying down battle lines over which version of Democratic leadership prevails in New York. The caucus will demand major investments in housing, schools and mental health services, and ask the mayor to rescind his recent order for most city agencies to cut spending by 4 percent.”

“Under Adams, Sanitation Department Sweeps Up Jobs From Other Agencies,” by THE CITY’s Reuven Blau and Katie Honan: “The Department of Sanitation is scooping up city jobs left and right. The agency known as ‘New York’s Strongest’ is expanding again under Commissioner Jessica Tisch, now taking on the cleaning of highways — a job long held by a different workforce at the Department of Transportation, whose members are not happy about being swept out.”

“Probe of NYPD gang database finds ‘no evidence of harm,’ but areas for improvement,” by WNYC’s Arya Sundaram: “In a review of the NYPD’s database of people with suspected gang ties that was several months late, the city’s Department of Investigation said on Tuesday that it found no ‘evidence of harm’ to individuals named in the sprawling list, but recommended a host of changes aimed at improving transparency about how names are added.”

“NYC opens applications for public summer school and enrichment program,” by Daily News’ Cayla Bamberger: “Just one day after applications opened for Summer Rising, roughly 50,000 students have signed up for NYC’s free summer school and enrichment program, Schools Chancellor David Banks and Department of Youth and Community Development Commissioner Keith Howard said Tuesday. In past years, that would have meant nearly half of spots in the program were already claimed. But due to changes in the enrollment process that pivoted away from a ‘first come, first served’ model, families can throw their hats in the ring through May 1.”

“New York’s Only Rest Stop for Delivery Workers Just Closed. Now What?, by The New York Times’ Dodai Stewart: “Delivery workers have been pushing for better pay, but the physical logistics of their work have become a new focus of concern.”

WHAT ALBANY'S READING

“1st Black chief judge for New York state confirmed,” by The Associated Press’ Michael Hill: “New York’s Senate confirmed Rowan Wilson as the state’s first Black chief judge Tuesday, two months after lawmakers dealt Gov. Kathy Hochul a political defeat by rejecting her initial nominee for the top court post. Wilson has been an associate judge of the Court of Appeals, New York’s highest court, since 2017. Hochul tapped him earlier this month to lead the seven-member high court and oversee the state’s judicial system. The confirmation vote caps months of conflict between Hochul and her fellow Democrats in control of the Senate over the direction of the court.”

“The State Assembly Is Foreclosing Hochul’s Housing Supply Plan,” by New York Focus’ Sam Mellins: “As Albany continues to negotiate the state budget, Governor Kathy Hochul’s plan to address New York’s dire housing shortage has collapsed. Four sources with firsthand knowledge told New York Focus that the insurmountable obstacle was the state Assembly, which refused to entertain one of the plan’s centerpieces: requiring all towns and cities to grow their housing supply.”

— “Assembly Speaker Carl Heastie denies deal on state bail laws,” by New York Post’s Zach Williams: “‘Nothing is finalized,’ the Bronx Democrat said at the Capitol in a brief interaction with a reporter from the Albany Times Union.”

“Supreme Court sides with New Jersey in dispute with New York over port police agency,” by POLITICO’s Ry Rivard: The Supreme Court will let New Jersey unilaterally exit the Waterfront Commission of New York Harbor, a bistate police agency created to crack down on corruption immortalized in the Marlon Brando movie “On The Waterfront.” The unanimous decision, issued Tuesday and written by Justice Brett Kavanaugh, effectively ends the small agency the two states created in 1953 to go after the mob and corrupt labor practices at the New York-New Jersey container port.

GOV. KATHY HOCHUL’S household made $984,250 in federal adjusted gross income in 2022, according to income-tax returns released by her office Tuesday. The bulk of their income came from first gentleman William Hochul’s salary at Delaware North. He was paid $650,375 by the Buffalo-based hospitality firm where he is a senior vice president and general counsel. He also made $3,500 as an adjunct professor at University at Buffalo Law School.

Gov. Hochul made $250,314 from her state job.

In 2022, the Hochul family paid a total of $275,737 in federal taxes and $62,340 in state taxes. They also made $58,424 in charitable contributions, primarily through donated stock. The top recipients included Planned Parenthood, Franciscan Sisters, the Sister Karen Klimczak Center For Nonviolence and the Buffalo City Mission. — Anna

#UpstateAmerica: Remember Bill de Blasio’s New York vs. Florida debate we wrote about this week? Upstate seemed to be left out of the equation, argues Times Union’s Chris Churchill.

TRUMP'S NEW YORK

“E. Jean Carroll will attend civil rape trial against Trump starting next week in Manhattan,” by Daily News’ Molly Crane-Newman: “Writer E. Jean Carroll on Tuesday said she would attend her civil rape case against Donald Trump going on trial next week in Manhattan — but the former president hasn’t said yet if he’ll be there.”

FROM THE DELEGATION

George Santos left out of McCarthy fundraising group to help NY GOP candidates, by POLITICO’s Caitlin Oprysko: Santos’ seat is one of Democrats’ top targets in next year’s elections, but the freshman lawmaker is a notable omission from Protect the House New York 2024, a joint fundraising committee formed to corral money for vulnerable House Republicans in the state.

The committee includes both House Speaker Kevin McCarthy and his leadership PAC, as well as the NRCC, the House Republicans’ campaign arm, and the New York State Republicans’ federal PAC. It will raise money for frontline New York Reps. Mike Lawler, Brandon Williams, Marc Molinaro, Anthony D’Esposito, Andrew Garbarino, Nick LaLota, according to organization paperwork filed Monday with the FEC.

AROUND NEW YORK

— SOME GOOD NEWS: Buffalo Bills safety Damar Hamlin has been “fully cleared” to play football again.

— The New York Board of Regents has officially banned all uses of images and names for school mascots related to Indigenous people.

— A yearlong federal grand jury investigation into Rensselaer County officials’ handling of absentee ballot documents is nearing a close.

— The NYPD is investigating the beating of a Coney Island deli owner as a hate crime.

SOCIAL DATA BY DANIEL LIPPMAN


HAPPY BIRTHDAY: NBC’s Sheinelle Jones ... CNN’s Emily Kuhn … Bloomberg’s Felix Gillette ... Anya van Wagtendonk

MAKING MOVES — Catalina Tam is now nominations director for Senate Majority Leader Chuck Schumer. She previously was a legislative aide for Schumer. … Gregory A. Hayes has been named managing partner of Day Pitney LLP. He most served on the firm’s executive committee. …

...Paul Eckles has joined Moses Singer LLP as a partner in its litigation practice group. He most recently was a commercial disputes partner at K&L Gates. … Beatriz de la Torre has been appointed chief philanthropy officer at Trinity Church Wall Street. She most recently was managing director of housing and homelessness at the organization.

MEDIAWATCH — Adam Levy is now executive producer and news editor at BBC News in Washington. He most recently was a supervising producer and showrunner at CNN.

Real Estate


“Senate open to zoning overrides but Assembly opposed, sources say,” by City and State’s Rebecca C. Lewis: “With talks over the late state budget stretching into the 18th day, housing has emerged as the new sticking point as legislative leaders and the governor attempt to find a compromise on Gov. Kathy Hochul’s plan to build 800,000 units of new housing. Sources with knowledge of negotiations told City & State that the state Senate is largely on board with one of the key tenets of Hochul’s housing plan, but the Assembly is standing in the way of a final deal.”

“East Harlem could get 32-unit, dorm-style building for homeless youth,” by WNYC’s David Brand: “The Ali Forney Center, which runs programs and housing for homeless LGBTQ+ young people, is partnering with nonprofit developer Ascendant to create a 32-unit apartment building on East 106th Street. The 10-story residence would feature separate sections, where tenants have their own bedrooms but share bathrooms, kitchens and living rooms. They would pay a portion of their income for rent while city and state supportive housing grants would cover the rest.”