(photo: Edwin J. Torres/Mayor's Office)
As we head into 2018, we say goodbye to 2017, a year that featured a New York City election cycle, extended drama in Albany as both the budget was late and the legislative session finished through special added time, and a number of major developments in the five boroughs, as Mayor de Blasio did not face charges in twin criminal investigations, continued to struggle to reduce homelessness, saw his affordable housing agenda move forward with some fits and starts, oversaw record lows in major crimes, and more. The City Council and its Speaker, Melissa Mark-Viverito, spent the last year of the four-year term passing a wave of legislation and pushing closure of the Rikers Island jails, which de Blasio came around to support. Everyone was talking about Donald Trump.
And in our way, we covered it all during a very busy and productive year at Gotham Gazette. While we don’t typically report on all of the day-to-day of city and state politics, we specialize in deep-dive stories; finding important angles to popular storylines that aren’t being covered; reporting on topics and events that others often don’t, like campaign finance reform and City Council oversight hearings; and holding elected officials accountable for being ethical, transparent, and consistent.
We also specialize in election coverage and for this city election year we again partnered with WNYC radio and City Limits to create an interactive voters guide, along with a long list of election-related stories that we published at Gotham Gazette.
Before we jump headfirst into the new year, we look back at 2017. Below is a list of the 10 most-read Gotham Gazette stories of 2017, a list curated using a dash of editorial discretion given that much of our election coverage saw our highest traffic. For the sake of keeping this list mostly focused on our investigative and accountability-focused reporting, we’ve removed some of the election-related articles that received a great deal of readership, including our preview of the three ballot questions and our look at 20 Races to Watch in the city election cycle (primary election focused), and we also aren’t including the most-read op-ed columns, though several of those saw exceedingly high readership. The purpose here is to spotlight some of our best reporting of the year that was widely read.
We hope you’ll revisit some of these stories that you may have caught when we first published them or find them for the first time -- and share them! We’re on Facebook and we’re on Twitter @GothamGazette -- use the hashtag #GGBestOf2017
One other note: not included here are our two podcasts, Max & Murphy, which we produce with City Limits, and What’s The [Data] Point?, which we produce with Citizens Budget Commission. You can find all the 2017 episodes of Max & Murphy here, including the final one of the year, with City Council Speaker Melissa Mark-Viverito, and all the 2017 episodes of What’s The [Data] Point? here. (All episodes of both are also available on your favorite podcast platform, like iTunes.)
The 10 Most-Read Stories of 2017 from Gotham Gazette
10. ‘Community Preference’ Lawsuit at Center of Affordable Housing, Segregation Debates, March 2017, by Ethan Geringer-Sameth
9. Little Progress Made on Utica Ave Subway Extension Study, Feb. 2017, by Elena Burger
8. The East New York Rezoning One Year Later, March 2017, by Samar Khurshid
7. Wary of Gentrification, East Harlem Braces for Rapid Change, April 2017, by Maggie Calmes
6. Consulting Firm with Deep City Ties Adds New Class of Clients, Looks National, April 2017, by Samar Khurshid
5. Where’s The Polling in the Mayoral Race?, Sept. 2017, by Samar Khurshid
4. Constitutional Convention Absent from Cuomo’s 2017 Agenda, Jan. 2017, by Rachel Silberstein
3. Nicole Malliotakis on Trying to Become New York City’s First Female Mayor, July 2017, by Ben Max
2. Rochester Mayor Accused of Circumventing Campaign Finance Laws, July 2017, by Rachel Silberstein
1. Killing of FDNY EMT Spotlights Issues for Unsung Profession, March 2017, by Felipe De La Hoz
Bonus: our several-part series on Mayor de Blasio's first term record, published in the run-up to Election Day, which accumulated a good many readers:
Dissecting Mayor De Blasio's Record As He Seeks Reelection
Thanks for reading Gotham Gazette! Look for our final stories of 2017 and all that 2018 brings.
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by Ben Max, Gotham Gazette
@tweetBenMax @GothamGazette
Gov. Cuomo voting (photo: Kevin P. Coughlin/Office of the Governor)
Governor Andrew Cuomo on Thursday unveiled his “Democracy Agenda,” a plan to create more transparency in political advertising and require online platforms to archive political ads, protect state elections from hacking threats, and enhance voting opportunities.
The 13th proposal of the governor’s developing 2018 State of the State speech, the advertising transparency and cybersecurity initiatives are joined by three voting reform measures that were introduced by Cuomo last year but did not pass: early voting, automatic voter registration, and same-day voter registration.
"What we saw during the last election was a systematic effort to undermine and manipulate our very democracy," Cuomo said in a statement. "With these new safeguards, New York — in the strongest terms possible — will combat unscrupulous and shadowy threats to our electoral process, as well as break down fundamental barriers that for far too long have prevented New Yorkers from being heard and from exercising their right to vote."
In his 2017 agenda, Cuomo included the voting reforms as part of his 10-point government ethics program, which included strengthening campaign finance laws, such as closing the LLC loophole, which allows virtually unlimited donations to elected officials. None of the planks were passed, either in the budget in April or at the end of the legislative session in June.
A spokesperson for the governor’s office declined to reveal whether ethics and campaign finance reform will be introduced in a separate plank during the governor’s upcoming SOTS address, but said the administration was committed to getting the announced electoral reforms passed.
“In our political environment, it can sometimes takes multiple years for the legislature to pass reforms like these—as was the case with raise the age, the minimum wage increase, and even marriage equality, which failed in 2009 and then passed with bipartisan support two years later,” said Cuomo spokesperson Elizabeth Bibi. “This administration remains committed to modernizing our election process and will work with the legislature on this issue.”
The voting reform measures are not embraced by leadership in the Republican-controlled state Senate, which clings to power through a ruling coalition with breakaway Democrats, and Cuomo told reporters that there was “no appetite” from the Legislature to implement them during budget negotiations earlier this year.
After the legislative session, the governor did sign an executive order expanding the list of agencies required to provide voting registration assistance, but advocates said that the order could have gone further. For example, they say, a task force assembled by Cuomo to explore the implementation of these new rules could also study the costs and benefits of more meaningful electoral reform -- such as early voting and automatic registration -- in order to better sell the proposals to legislative leaders in 2018.
If passed, Cuomo’s early voting proposal would allow eligible New Yorkers to cast ballots up to 12 days before Election Day. Automatic voter registration would automatically register anyone who comes in contact with the Department of Motor Vehicles or other government agency unless the person chooses to opt-out, and same-day registration would allow New Yorkers to register to vote when going to the polls to cast their ballots.
Reform advocates praised the governor’s Democracy Agenda while urging him to include funding for the proposals in his upcoming budget.
“While Governor Cuomo's recent push in cyber security and transparency for elections is an important step forward to ensure that New York's elections remain fair and safe, our basic voting processes also demand improvement,” said Common Cause/NY Executive Director Susan Lerner, in a statement. “Common Cause/NY urges the Governor to include Early Voting in his upcoming budget to create a more equitable voting process for all.”
Cuomo’s democracy platform, as presented in a press release, focuses on the proliferation of “fake news” and political ad campaigns on social media platforms, which are not regulated in the same way as advertisements on traditional media platforms. Citing the influence of “unscrupulous and disruptive actors” on the 2016 presidential election, Cuomo’s proposal would codify state regulations as introduced by United States Senate and House members to regulate online advertising for federal elections. The governor vowed to ensure that all social media platforms, and other states, adopt similar policies.
“As many as 126 million Americans are estimated to have seen Russian-bought political ads on Facebook alone last year, without realizing that they were seeing content paid for by Russia. Additionally, 131,000 Twitter messages, linked to more than 36,000 Russian accounts, have also been identified,” states the press release from Cuomo’s office.
To ensure the fairness and transparency of New York elections, Cuomo has put forth a three-pronged strategy to: expand New York State's definition of political communication to include paid internet and digital advertisements; require digital platforms to maintain a public file of all political advertisements purchased by a person or group for publication on the platform; and require online platforms to make reasonable efforts to ensure that foreign individuals and entities are not purchasing political advertisements in order to influence the American electorate.
Violations of these requirements would be subject to a civil penalty of up to $1,000, according to Cuomo’s office.
The cybersecurity component seeks to keep elections uncorrupted by hackers. Earlier this year, following numerous reports of Russian meddling in the 2016 election, Cuomo directed the New York State Cyber Security Advisory Board to work with state agencies and the State and County Boards of Election to assess the threats to the cybersecurity of New York's elections infrastructure, identify security priorities, and recommend any necessary additional security measures.
As a result of this review, Cuomo says he is proposing a four-pronged approach to further strengthen cyber protections for New York's elections infrastructure: create an Election Support Center; develop an Elections Cyber Security Support Toolkit; provide cyber risk vulnerability assessments and support for local boards of elections; and require counties to report data breaches to state authorities.
Governmental reform advocates had praise for Cuomo’s proposals, as promoted through the governor’s press release.
"Our democracy urgently needs repair. Washington has not yet acted, but states can. Today New York lags behind many other states. With these reforms it can step into the lead, making it easier to register and vote, and protecting the system from abuse,” said Michael Waldman, president of the Brennan Center for Justice at NYU School of Law, in a statement.
He noted that automatic voter registration, if done right, could add millions to the rolls, cost less, and bolster security. Meanwhile, early voting and same-day registration would make voting far easier for working people.
“And it is vital to ensure that foreign governments and other malevolent actors can't distort elections with dark money ads or attacks on voting machines and databases. Governor Cuomo's agenda would be a powerful step forward. It's worth fighting for. We hope Albany listens," Waldman said.
The governor’s 13th State of the State proposal also received praise from Senator Todd Kaminsky, a Democrat from Long Island who has introduced similar legislation to prevent anonymous and false political attack ads on social media, and Kaminsky’s fellow Senate Democrats, who have long pushed for voting reforms like the ones unveiled today.
“I thank Governor Cuomo for joining this important effort to rid our election process of these false, misleading, and anonymous advertisements. These often dirty attacks that are aimed at providing misinformation to voters undermine our democracy. Voters deserve full transparency during their elections,” said Kaminsky. “It is important that we restore the voters' trust in government, and Governor Cuomo advancing this initiative will ensure we are able to take real steps to clean up campaigns in New York.”
Each year, ahead of his annual State of the State address, which for 2018 will take place on January 3, Cuomo typically previews several planks of his new agenda. Other initiatives unveiled so far have focused on environmental investment and protections, strengthening of labor laws, gun control, and returning the Islanders hockey team to Long Island.
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by Rachel Silberstein, State government reporter, Gotham Gazette
@RachelSilby @GothamGazette
What's The Data Point? Episode 24 -- 2.7%, with Alex Heil of the Port Authority [You can download What's The [Data] Point? wherever you get your podcasts, including on iTunes]
Alex Heil, chief economist for the Port Authority of New York and New Jersey, joined the podcast to discuss his economic forecasts for the Port Authority region; key trends around use of Port Authority bridges, tunnels, ports, and airports; and infrastructure investments that are in motion or needed.
Listen to the conversation and let us know what you think: Ben Max of GG (@TweetBenMax), Maria Doulis of CBC (@MariaDoulisMariaDoulis), and guest Alex Heil of the Port Authority (@PANYNJ). Listen below or download wherever you get your podcasts!
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by Ben Max, Gotham Gazette
@tweetBenMax @GothamGazette
Assemblymember Hevesi and activists (photo: @mkink)
Legislation to create a statewide rental supplement to curtail the growth of homelessness in New York, while generating savings for local social service agencies, is the focus of a renewed campaign ahead of the 2018 budget and legislative session.
Despite support from the Democratic Assembly majority, as well minority state Senate Democrats, and the Independent Democratic Conference, which forms a ruling coalition with Senate Republicans, Assemblymember Andrew Hevesi’s Home Stability Support plan fell off the negotiating table during 2017 budget talks.
The bill, which would close the rental gap for low-income families and individuals who already receive housing subsidies, gained strong momentum from lawmakers and advocates at the start of the year, but disagreement over how much the program would cost ultimately derailed its inclusion in the budget that passed in early April, according to those familiar with negotiations.
Independent Democratic Conference (IDC) leader Senator Jeff Klein, of the Bronx, wrote at least two op-eds and issued a report promoting the legislation, but he and Assembly Speaker Carl Heastie failed to persuade their colleagues in the negotiating room -- Senate Majority Leader John Flanagan and Governor Andrew Cuomo -- of the program’s efficacy.
New York City Mayor Bill de Blasio endorsed the idea in public comments to state lawmakers, provided it would not be accompanied by unfunded local mandates; and the city’s four Democratic borough presidents participated in a last-minute push for its inclusion in the budget. In recent years, homelessness in the city has reached record numbers. There are about 63,000 homeless people in New York City, and thousands more around the state.
New York City Comptroller Scott Stringer, who has also endorsed the bill, produced a report evaluating the costs and benefits of the program. Noting that projecting the growth of homelessness and future eligibility for and utilization of the program is not an exact science, Stringer estimated that over a decade Hevesi’s proposed investment of $450 million a year from the state could reduce the city’s shelter population by 80 percent among families with children and 40 percent among single adults, and save the city millions of dollars.
“Assemblymember Hevesi has put forward a bold new plan that deserves your serious consideration,” Stringer testified at a joint legislative budget hearing in January. “Home Stability Support is a potential long-term solution to this crisis that could offer a real path out of the shelter system for thousands of New Yorkers and save the city millions in shelter costs.”
The subsidy would be made available to households or individuals “eligible for public assistance benefits and who are facing eviction, homelessness, or loss of housing due to domestic violence or hazardous living conditions.” Hevesi estimates that approximately 80,000 households are at-risk of homelessness, and that each year 19,000 more individuals become homeless than move to permanent housing from shelter. The program would replace all existing optional rent supplements and cover up to 85 percent of the fair market rent determined by the U.S. Department of Housing and Urban Development (HUD). Localities would have the option to further raise the supplement up to 100 percent of the fair market rent at local expense.
During budget talks, the state’s budget division produced its own estimate of what a fully utilized statewide homelessness prevention program, such as the one proposed by Hevesi, would cost and pegged it as $1 billion annually -- a figure it said the state could not afford. Citing the analysis by Stringer’s office, which, based on data from the Department of Homeless Services, predicted that only 30 percent of city residents who qualify for HSS would utilize the program, proponents of the plan soon returned to the table with a new number. By the time the proposal made it into the Assembly’s one-house budget, it had been whittled down to a $200 million investment that would be phased in over five years, or $40 million a year, essentially piloting the program.
Ultimately, state budget officials, assuming full utilization of the program, determined that the program would be too costly and rejected the proposal, according to a spokesperson for the IDC.
"Once we couldn't get it in the budget, it didn't even make sense to try," Hevesi said of the legislation, which he allowed to sit in the ways and means committee.
Klein never introduced a “same as” bill in the Senate because the financial component made it impossible to introduce outside of budget negotiations, his spokesperson said.
Housing advocates, including those who were involved in the negotiations, also expressed disappointment that the Assembly proposal didn’t make it into the state budget, which covers the current fiscal year that ends March 31, 2018.
“Every year goes by we hit new records, and sheltering homeless people costs even more,” said Shelly Nortz, deputy executive director of policy for Coalition for the Homeless, part of a coalition of social service advocates who helped devise the legislation.
Nortz said Hevesi’s bill represents a critical shift in homelessness policy towards prevention, while also resolving homelessness rapidly with adequate rent subsidies. “This will lower the demand for shelter dramatically and ultimately generate savings to offset the much lower cost of keeping people in their own homes,” said Nortz.
This winter, Hevesi says he is visiting Republican and Democratic lawmakers in their districts hoping to drum up support for the bill the old fashioned way, by highlighting how the bill could directly impact their constituents. He says the list of supporters has grown, including every member of the IDC and Senate Democratic conference and at least three Republican senators.
“This is the way they used to do it 30 years ago,” said Hevesi. “I believe that by the time the budget comes along, we will have a huge number of senators that will sign on to the legislation.” The bill is virtually guaranteed to pass through the Assembly, which is dominated by New York City Democrats, including Heastie, of the Bronx, and Hevesi, of Queens.
Cuomo, who is believed to strongly oppose Hevesi’s housing subsidy, has been criticized for failing to adequately address the city’s homelessness crisis. His 2011 decision to end the state’s $85 million share for the Advantage subsidy program led to the program’s closure and has been widely criticized as contributing to the city’s record homelessness numbers. The conditional subsidy program, which started in 2007 and was a joint city-state effort, helped people in shelters pay for permanent housing for up to two years, as long as they worked or participated in job training.
While Cuomo has historically resisted calls for a new state-funded subsidy to fight homelessness, advocates were buoyed by the governor’s 2016-17 Homelessness Action Plan, in which he committed to building 20,000 supportive housing units over 15 years. A new statewide coalition of community and advocacy organizations that formed this fall, called the Upstate Downstate Housing Alliance, is pushing for Cuomo to make housing a priority in 2018, speeding up these investments and taking other steps to address homelessness, including supporting Hevesi’s legislation.
Meanwhile, the IDC says it continues to support Home Stability Support and is looking into how to address funding concerns for the coming session.
Spokespersons for Cuomo and Flanagan, the Senate majority leader, did not respond to requests for comment about whether they would support a state homelessness-fighting subsidy program in 2018.
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by Rachel Silberstein, State government reporter, Gotham Gazette
@RachelSilby @GothamGazette
Gov. Cuomo and top aides (photo: The Governor's Office)
With the state facing a larger than usual expected budget shortfall for its next fiscal year, Governor Andrew Cuomo has been railing against the devastating impact proposed federal tax reforms would have on New York state finances.
The controversial reform plan that is still being negotiated in Washington, D.C. would either modify or completely eliminate the ability of New Yorkers to deduct state and local taxes from federal tax burdens and likely have deep economic impact for heavily Democratic states like New York, which typically have higher state and local taxes. As of Thursday, Republicans in the House and Senate say they have agreed on a tentative deal that would cap deductions at $10,000, reports NBC News. While negotiations are ongoing, Congress is expected to vote on a final deal this week.
Cuomo, a Democrat entering the final year of his second term, has said that the tax plan would “rape and pillage” New York at a time when the state is already faced with a $4.5 billion budget deficit -- the largest since Cuomo took office in 2011 -- and the governor has called on congressional Republicans from New York who support the tax plan to resign.
“There is no taxpayer in this state that lives in a congressional district that won't be hurt,” said Cuomo. “Because there's only one state budget. And we start with the $4 billion deficit. You put the state at a structural disadvantage. The taxes would go up on everyone. And that's not complicated math.”
In January, Cuomo will outline both his 2018 policy agenda in his State of the State speech as well as his executive budget proposal. The new state fiscal year begins April 1. As Cuomo and his team prepare that budget, there are troubling signs at both the state and federal levels.
State Comptroller Tom DiNapoli has projected lower-than-expected tax revenue for the current and upcoming fiscal years. State operating funds receipts will be $1.8 billion lower than projections in the Division of Budget’s August financial plan for this fiscal year, which ends March 31, and $2.8 billion lower in 2018-19, according to a November report by DiNapoli’s office. The $4.5 billion gap may be exacerbated in the coming fiscal year by fallout from federal tax reforms.
But, if the administration continues to adhere to Cuomo’s self-imposed 2 percent limit on annual growth in state operating spending -- and it intends to, according to a spokesperson for Cuomo’s Division of the Budget -- the deficit the state will be facing drops to $1.7 billion for next fiscal year. Federal reforms could make budget negotiations even more challenging. If New Yorkers lose most of their state and local tax deductibility, there will almost certainly be more calls for the state to cut taxes.
Additionally, Politico New York has reported that another $1 billion hole may be carved into the budget if the federal government defunds a portion of the state’s Essential Plan, sometimes called the Basic Health Plan, which provides low-cost health insurance to residents earning less than twice the federal poverty level. And, in March, the state will run out funds for Children’s Health Insurance Plan (CHIP), a joint state-federal healthcare program, if it is not renewed by Congress. The state relies on $1 billion in federal CHIP funds to insure 330,000 children.
“His problem is compounded because he'll have to go to battle over healthcare spending for the first time in history,” said E.J. McMahon, research director at the Empire Center for Public Policy, speaking of Gov. Cuomo. “It's going to be the most pressured budget since his first year in office -- easily.”
Cuomo, who is running for reelection in 2018 and has presidential ambitions, has prided himself on passing on-time budgets and restoring fiscal order to Albany. He has already said he would link any pay raises for legislators, which are long overdue, to whether or not a budget deal is reached in a timely manner. This year’s $153-billion budget for fiscal year 2017-2018 was passed nine days late.
To address the existing budget gap, the state must either cut spending or increase taxes. Cuomo’s office is now tasked with devising a financial plan that will not cripple agencies or end needed programs, but that will also not drive out the state’s highest income earners, whose taxes provide 40 percent of New York’s operational funding.
It is unclear to what extent the final federal tax bill -- if passed -- will affect New York and its taxpayers, but some fear it could provide additional motivation for the state’s top 1 percent to take residency elsewhere. Passage would likely dash any Democratic hopes for an expanded millionaire’s tax, such as the policy advocated by New York City Mayor Bill de Blasio.
If millionaires and billionaires leave the state, “the burden then falls to everyone else: the middle class and the working families,” Cuomo said Wednesday in Albany at the awards ceremony for his 10 Regional Economic Development Councils.
Federal tax policy aside, experts say the widening gap between the state’s anticipated tax revenue and receipts is unusual given what is, overall, a well-performing economy and a booming stock market. While there are certain indications that suggest state personal income tax receipts have been depressed this year by taxpayer behavior in light of possible federal tax changes, the extent of any such impact is difficult to estimate, according to the comptroller’s office.
There is some debate as to how to handle the upcoming budget deficit, which Cuomo has acknowledged is likely to significantly impact education funding, which may not see the typical annual increases of recent years.
Comptroller DiNapoli has repeatedly urged that the state take steps to eliminate projected budget gaps and achieve structural budget balance, including, for example, minimizing use of one-time resources to support recurring spending and avoiding the use of administrative or accounting actions that lower the appearance of spending but do not eliminate the state’s obligation.
These recommendations are echoed by the fiscal watchdog group Citizens Budget Commission (CBC), which has highlighted how the state has created the appearance of meeting the 2 percent cap on spending increases by shifting certain personnel expenses to the capital budget.
"Education, Medicaid, and personnel are the three things that he could target. We certainly think a lot of the economic development spending should be curtailed, but that's a slightly smaller pot," said David Friedfel, director of state studies at CBC.
Cuomo’s administration often touts spending restraint and disputes the CBC’s characterization of its spending patterns. A spokesperson for the Division of the Budget said that the positions in question had been categorized as capital expenses because they had been associated with capital projects.
“Governor Cuomo has been rigorous and effective in constraining State spending growth, achieving more fiscally responsible results than those of his predecessors. The current year’s budget holds spending growth to historically low levels for the seventh consecutive year while balancing the budget and lowering taxes for all New Yorkers.” said Morris Peters, of the state’s Division of the Budget.
Legislative leaders are divided on how to approach the budget and looming deficit. Senate Majority Leader John Flanagan, a Republican from Long Island, has opposed increasing taxes on high-income earners.
"Senator Flanagan believes we must continue to strictly adhere to the two percent spending cap, which would cut the Governor's projected deficit in half, and review every single dollar the state spends," said Scott Reif, spokesperson for Flanagan, in a statement.
Assembly Speaker Carl Heastie, a Bronx Democrat, did not express much concern when speaking to reporters last week, noting that when Cuomo was first elected to office the state was forced to wrestle with a $10 billion budget deficit. “But we’re New Yorkers and we’ll find our way through it,” he said.
Cuomo’s budget director Robert Mujica is asking agencies to keep their budgets stagnant and others are questioning whether Cuomo’s signature infrastructure projects or economic development programs should see cuts, or perhaps a controversial tax break for the film and television industry that has cost the state $31 million since 2010.
While many have praised Cuomo for keeping the deficit relatively low since taking office, according to McMahon, the state’s fiscal situation in 2010 and next year are not necessarily comparable.
“In 2010, there was low-hanging fruit then that is not low-hanging now,” said McMahon, noting that Cuomo’s office significantly restructured state personnel. “The first place they will go is school aid. Medicaid is more complicated because there are three levels of payment and it is controlled by federal law.”
Education advocates pushed back on the suggestion that cutting education funding was the way to address the deficit. Instead, the state should reinstate the millionaires’ and billionaires’ tax to levels they were at before Cuomo took office and end tax loopholes for hedge-fund and private-equity billionaires, according to Billy Easton, executive director for Alliance for Quality Education of New York, a teachers-union-allied nonprofit.
“They shouldn’t say the outcome is we’re going to increase the deficit in educational opportunity for black, brown, and low-income kids,” said Easton.
The governor, meanwhile, has vowed to continue to challenge the federal government and members of congress who support the cuts. “I will fight this economic civil war every day that I am governor of the State of New York,” he said on Wednesday.
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by Rachel Silberstein, State government reporter, Gotham Gazette
@RachelSilby @GothamGazette
New York City Hall
What to watch for this week in New York politics:
This week starts a two-week sprint to what amounts to the end of the political year: Friday, December 22. Though there will be some political business Christmas week, and a deal to crown the next Speaker of the City Council could be announced any time before the January 3 vote, most of the rest of the political activity for the year (and thus the four-year city term) will take place this week and next. That includes a very busy schedule at the City Council in terms of oversight hearings, legislative negotiations, and bills being passed before this Council class and Speaker Melissa Mark-Viverito end their term together. The first of two December full-body Stated meetings of the Council takes place on Monday, at which a number of bills will be passed (the other one is set for Dec. 19).
As the year nears an end, we're also watching for announcements related to personnel in the de Blasio administration -- who else might be leaving, coming, or promoted -- as well as in the administrations of the two other citywide elected officials, Comptroller Scott Stringer and Public Advocate Letitia James. While their top deputies are much less known than the mayor's, the positions are still influential and important to how the city is run.
We're also just a few weeks away from a new budget and legislative year kicking off in Albany, where Governor Cuomo will outline his 2018 agenda on January 3. There are legislative hearings this week as the two chambers gear up for next year. Cuomo begins his week with one public event in New York City -- see below for details.
And one New York eye remains fixed on Washington, D.C., where tax reform legislation is being negotiated among the House, Senate, and White House, with major potential ramifications for the Empire State and its biggest city.
There's a lot happening this week -- see our day-by-day rundown below.
***Do you have events or topics for us to include in an upcoming Week Ahead in New York Politics?
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The run of the week in detail:
Monday
At 10:30 a.m. Monday on WNYC’s The Brian Lehrer Show, Ben Max of Gotham Gazette and Dr. Christina Greer of Fordham University will discuss the latest in city and state politics.
At 11 a.m. Monday, Governor Cuomo will be at the CUNY Graduate Center to hold a briefing with Puerto Rican Governor Rosselló and members of the New York congressional delegation.
Mayor de Blasio will appear on NY1's Inside City Hall in the 7 and 10 p.m. hours.
The full City Council will meet at 1:30 p.m. Monday for the penultimate stated meeting of the year and of the current four-year session. The meeting will be prefaced by a press conference led by Speaker Melissa Mark-Viverito. Before the Stated meeting, the Committee on Finance will hold a hearing and the Committee on Rules, Privelages and Elections will hold a meeting.
At the State Legislature on Monday: The Assembly Standing Committee on Mental Health will meet at 10 a.m. in Albany for a public hearing regarding “the adequacy of housing opportunities for individuals who are receiving services and supports from the Office of Mental Health (OMH) or the Office for People with Developmental Disabilities (OPWDD) in the context of the funding provided in the State Fiscal Year (SFY) 2017-18 budget.”
The New York State Board of Regents will meet on Monday and Tuesday in Albany.
At 10 a.m. Monday, First Lady Chirlane McCray will host a press conference at the Tweed Courthouse where she will make an announcement about “promoting mental health literacy in the black community.” She will be joined by Health and Mental Hygiene Commissioner Mary Bassett, U.S. Rep. Yvette Clarke, former SEIU chair Toni Lewis, and representatives of six organizations historically led by black women.
At noon Monday, City Council Member Rory Lancman will hold a press conference outside the City Hall R train stop to “tout passage of Intro. 1664, legislation that will require the NYPD to report quarterly the number of arrests and summonses issued for subway fare evasion.” Lancman will be joined by representatives of the Community Service Society, the Legal Aid Society, Brooklyn Defender Services, and the Bronx Defenders.
Also Monday at noon, on the steps of City Hall, "Council Member Rafael Espinal and Chair of the Transportation Committee, Ydanis Rodriguez will join transportation and environmental advocates to host a press conference announcing a transportation committee oversight hearing. The upcoming hearing, slated for Thursday, December 14 at 10 AM will feature a bill sponsored by Council Member Espinal. Reso No. 1443 "calls upon the Governor and MTA to commit to an expeditious transition to an electric bus fleet and to use electric buses as a robust part of its replacement service during the upcoming L train shutdown.”"
At 1pm Monday at City Hall, there will be a protest against the city’s plans to redevelop the Elizabeth Street Garden. The city’s plan, backed by local Council Member Margaret Chin, includes senior affordable housing and park/garden space, but Friends of Elizabeth Street Garden and a variety of other elected officials, including Comptroller Scott Stringer and Public Advocate Letitia James, are opposed to the deal.
At 6:30 p.m. Monday, the New York City Bar Association will host “The Global War on Terrorism: Do We Need a New AUMF,” discussing whether current military operations should be covered under the 2001 Authorization for the Use of Military Force, authorized after 9/11. Speakers will include William Castle, Acting General Counsel for the Department of Defense; Bruce Ackerman, counsel in Smith vs Trump, a case challenging the president’s power to fight ISIS under the 2001 AUMF; and John Bellinger III, former senior counsel to George W. Bush and legal advisor to the National Security Council during 9/11.
Tuesday
At the City Council on Tuesday:
--The Committee on Education will tour The Earth School in the East Village at 9:30 a.m.
--The Committee on Housing and Buildings will meet at 10 a.m. for an oversight hearing regarding “Homeownership in NYC: Challenges and HPD’s Programs.”
--The Committee on Civil Service and Labor will meet at 1 p.m. for an oversight hearing regarding “USIC underground safety contractor workers’ unfair pay and benefits.”
--The Committee on Recovery and Resiliency will meet at 1 p.m. for an oversight hearing regarding “NFIP reauthorization and flood insurance affordability.”
At the State Legislature on Tuesday:
--The Assembly Standing Committee on Higher Education will meet at 10 a.m. in Albany for a public hearing to “examine the implementation of the scholarship programs included in the 2017-18 State Budget, the Excelsior Scholarship and the Enhanced Tuition Awards Program, and to examine the impact they are having on New York State families and institutions of higher education.”
--The Senate Standing Committee on Agriculture will meet at 10 a.m. in Albany for a public hearing to “elicit comments on what measures the state can implement that will provide a direct economic impact to farmers by enhancing their bottom line.”
--The Assembly Standing Committee on Libraries and Education Technology will meet at 10:30 a.m. in Albany for its annual budget oversight hearing on “funding of libraries in New York State for fiscal year 2017-2018.”
--The Assembly Standing Committee on Alcoholism and Drug Abuse will meet at 1 p.m. at 250 Broadway in Manhattan for a public hearing “to examine the adequacy of funding for prevention, treatment, and recovery services within the State Fiscal Year (SFY) 2017-2018 Enacted Budget.”
At 8:30 a.m. Tuesday, Assembly Speaker Carl Heastie will join UFT President Michael Mulgrew at UFT Headquarters in Lower Manhattan to discuss “the upcoming legislative session; the state economy and budget priorities, including school spending; the threat posed by federal tax changes and potential program reductions; and other issues.” It is unclear if this is a public event or only open to UFT members.
At 8:30 a.m. Tuesday, the Manhattan Institute will host “Prospects for Black America,” discussing the unique challenges that African-Americans face and possible policy and grassroots remedies. U.S. Secretary of Housing and Urban Development Ben Carson will deliver the keynote address.
On Tuesday at 10:45 a.m., City Council Speaker Melissa Mark-Viverito will speak at Generation Citizen's 2017 Civics Day, at Riverside Church.
At 11 a.m. in the Bronx, "Mayor de Blasio will make an announcement regarding the City’s use of cluster housing."
On Tuesday at noon, “Color Of Change, the nation's largest online racial justice organization, will join leaders from VOCAL-NY and Brooklyn Community Bail Fund in front of the office of Governor Cuomo in New York City to deliver a petition and hold press a conference demanding that Cuomo and Attorney General Schneiderman investigate the bail bond industry in New York. The petition highlights the lack of oversight and regulation of the exploitative commercial bail bond industry, which extracts millions of dollars from New York’s most marginalized communities. Each year, as many as 100,000 people in New York are imprisoned only because of their inability to afford bail. For some families, the only way to buy a loved one’s release is through the for-profit commercial bail bond industry.”
On Tuesday at 2 p.m. at City Hall Park, "Council Member Margaret S. Chin will join a diverse coalition of affordable senior housing advocates, LGBTQ groups and community gardeners in support of the announcement of the senior housing plan for Mott and Elizabeth streets that would include 121 units of deeply affordable housing for seniors and the formerly homeless; more than 7,600 square feet of public green space; and onsite offices for Habitat for Humanity NYC and SAGE."
At 6 p.m. Tuesday, City Council Member and Speaker candidate Corey Johnson will join the Association for a Better New York for its “What’s on Tap” series at American Beauty in Chelsea.
At 7 p.m. Tuesday, Mayor de Blasio will hold a town hall meeting at the Jerome Parker Educational Complex in New Springville, Staten Island, with City Council Member Joe Borelli, Staten Island Borough President James Oddo, State Senator Andrew Lanza, and Assemblymember Michael Cusick.
Wednesday
At the City Council on Wednesday:
--The Subcommittee on Zoning and Franchises will meet at 9:30 a.m.
--The Committee on Environmental Protection will meet at 10 a.m. for an oversight hearing regarding the “current condition and future plans” of the city’s wastewater infrastructure.
--The Subcommittee on Landmarks, Public Siting, and Maritime Uses will meet at 11 a.m.
--The Committees on Higher Education and General Welfare will meet jointly at 1 p.m. for an oversight hearing regarding “higher education opportunities for youth aging out of foster care.”
--The Committee on Governmental Operations will meet at 1 p.m. for an oversight hearing on the 2017 election, as well as to discuss a proposed law relating to “the broadcasting of mandatory debates.”
--The Subcommittee on Planning, Dispositions, and Concessions will meet at 1 p.m.
At the State Legislature on Wednesday: The Assembly Standing Committee on Health, the Puerto Rican/Hispanic Task Force, and the Task Force on New Americans will meet jointly at 10 a.m. at 250 Broadway in Manhattan for a public hearing regarding immigrants’ access to healthcare.
At 10 a.m. Wednesday, the City Planning Commission will hold a public meeting at Spector Hall.
At 4 p.m. Wednesday, the Civilian Complaint Review Board will hold a public board meeting at 100 Church Street.
At 5:30 p.m. Wednesday, the Campaign Finance Board’s Voter Assistance Advisory Committee will hold its annual hearing at CFB headquarters at 100 Church Street. Featured speakers will be Fordham political science professor Dr. Christina Greer and 2018 NYC Youth Poet Laureate William Lohier.
At 6:30 p.m. Wednesday, MTA Board Members Veronica Vanterpool and Norman Brown will join the Riders Alliance to discuss intricacies of the MTA’s funding, and how money gets spent by the authority. The conversation will be moderated by Executive Director John Raskin.
Thursday
Governor Cuomo is scheduled to hold a fundraiser in Manhattan on Thursday featuring former President Bill Clinton. (Democrats to Cuomo's left are planning to protest outside the fundraiser, according to The New York Post.)
At the City Council on Thursday:
--The Committee on Waterfronts will meet at 10 a.m. for an oversight hearing regarding “the citywide waterfront inspection process.”
--The Committee on Transportation will meet at 10 a.m. for an oversight hearing regarding “mitigation plans for the 2019 L Train tunnel closure,” as well as to discuss a resolution “calling upon the Governor and the Metropolitan Transportation Authority to commit to an expeditious transition to an electric bus fleet and to use electric buses as a robust part of its replacement service during the upcoming L train shutdown.”
--The Committees on Health and Public Safety will meet jointly at 1 p.m. for an oversight hearing regarding “examining forensic science practices in the NYPD crime lab and OCME.”
--The Committee on Public Safety will also be discussing a proposed law relating to “respecting the right to record police activities.”
--The Committee on Aging and the Subcommittee on Senior Centers will meet jointly at 1 p.m.
--The Committee on Economic Development will meet at 1 p.m. for an oversight hearing regarding the “economic impact of vacant storefronts.”
At the State Legislature on Thursday:
--The Assembly Standing Committee on Children and Families will meet at 11 a.m. in Albany for a public hearing to “examine the impact of the State budget on supports for foster parents and caretakers of children removed from their homes.”
--The Assembly Standing Committee on Housing will meet at 11:30 a.m. at 250 Broadway in Manhattan for an oversight hearing of “the State Fiscal Year 2017-2018 State Budget for New York State Homes & Community Renewal.”
The New York City Campaign Finance Board will hold a public hearing at 10 a.m. on Thursday.
At 10:30 a.m. Thursday, City & State will honor its “CSR Responsible 100” honorees, in recognition of “100 of New York’s most outstanding corporate citizens.” First Lady Chirlane McCray will also be presented with the “Civic Leader of the Year Award.”
At 2:30 p.m. Thursday, Assemblymember Dan Quart will unveil a broad criminal justice reform legislative package, addressing issues such as “cash bail reform, online harassment, reentry services to those who were wrongfully convicted,” at 250 Broadway.
At 8 p.m. Thursday, Mayor de Blasio will hold a town hall meeting at JHS 88 in Windsor Terrace, Brooklyn, with City Council Member Carlos Menchaca, Brooklyn Borough President Eric Adams, State Senator Velmanette Montgomery, and Assemblymember Felix Ortiz.
Friday and the weekend
At the State Legislature on Friday: The Assembly Standing Committee on Transportation will meet at 10:30 a.m. in Albany for a public hearing regarding the Department of Transportation Capital Program.
At noon Friday, the New York State Board of Elections will hold a commissioners’ meeting at the State Board Offices in Albany.
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Have events or topics for us to include in an upcoming Week Ahead in New York Politics? E-mail Gotham Gazette executive editor Ben Max any time: This email address is being protected from spambots. You need JavaScript enabled to view it. (please use "For Week Ahead" as email subject).
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by Ben Brachfeld and Ben Max
@GothamGazette
Gov. Cuomo (photo via the Governor's Office)
In June, as New Yorkers became increasingly frustrated with subway performance and braced themselves for the expected “summer of hell,” Governor Andrew Cuomo was the focus of intense criticism, responding with a series of measures he said were needed in order to fix the ailing Metropolitan Transit Authority (MTA).
Among them, Cuomo introduced last-minute legislation that would allow the governor to appoint a majority of MTA board members, a gesture some saw as an attempt to bolster his sometimes claim that he does not actually control the MTA and its beleaguered subway system. Currently the governor appoints a plurality of board members as well as the chair and CEO of the MTA, giving the state’s chief executive de facto control of the board.
Cuomo’s bill, announced June 20, the final day of the session -- giving it minimal chance to be passed through the Legislature this year -- adds two state seats to the MTA board appointed by the governor and an additional vote for the chair. The proposal drew swift criticism from board members not appointed by the governor, who believe the body’s independence is hampered enough, and transit experts, who see it as a cynical ploy.
The measure was not included in the final legislative deal of the session and the governor has been silent on the subject since, though his nomination of Joe Lhota to once again lead the MTA was accepted and the governor appeared to retake responsibility for the future of the subway system.
Cuomo’s board reform proposal came amid a debate between the governor and New York City Mayor Bill de Blasio, both Democrats, over control of the state authority. The governor, while appointing the leadership and six members, has argued that the board’s organizational structure -- which allows city and downstate suburban appointees to total a slight majority of votes over budgetary and contracting decisions -- is flawed and has historically led to finger-pointing and dysfunction.
"Who's in charge? Who knows! Maybe the county executive, maybe the president, maybe the governor, maybe the mayor," the governor said, during a press appearance where he defended the bill.
“If you believe I have control with six [voting members], then you shouldn't have a problem giving me actual control. And if you have a problem giving me actual control, you know what that means? You were disingenuous when you said I had control," he added.
Along with the governor’s six board appointees and the mayor’s four, Westchester, Suffolk, and Nassau Counties each get a board member, and Rockland, Orange, Putnam, and Dutchess Counties appointees share a collective vote. There are six non-voting members of the board. If Cuomo had his way, there would be 16 total voting members and the new structure would give the state eight board appointees and nine votes.
When asked whether the governor still stood by the proposal and whether he would promote it as part of his 2018 agenda -- his State of the State speech and policy platform release will occur January 3 -- a spokesperson for Cuomo’s office said that the governor’s view on the issue had not changed but that the governor’s agenda was not yet finalized.
“The MTA’s board structure was purposefully created to avoid accountability, which is why in June Governor Cuomo advanced legislation to update it. Unfortunately, the Legislature failed to adopt the bill,” said spokesman Peter Ajemian.“That design flaw still exists today with the city’s refusal to pay for the system without recourse, and the MTA’s inability to implement its full Subway Action Plan.”
Ajemian emphasized that Cuomo’s administration has appointed a new leadership team is still making significant gains with the half of the plan that is funded by the state.
While the MTA board approves the budget and the chair and CEO run the authority, there is no credible argument that the governor does not effectively control the subway. Critics, including de Blasio, quickly pointed to the governor’s attention to and oversight of the completion of phase one of the Second Avenue subway extension as evidence of Cuomo’s control of the MTA.
“The governor controls the MTA. That’s a hard, accepted fact in the eyes of New Yorkers, said mayoral spokesperson Austin Finan, in a statement to Gotham Gazette. “What’s needed now is a new, dedicated revenue stream to modernize the subways and buses that city riders depend on.”
The current board structure dates back to 1965, though in 1983 Cuomo’s father, former Governor Mario Cuomo, similarly attempted to add members to the board to gain a majority, The New York Times has pointed out. The elder Cuomo gave up due to opposition from then-New York City Mayor Ed Koch and suburban officials.
After the board convened and objected to the legislation, Cuomo appointed Joe Lhota, who briefly ran the authority before leaving for a 2013 mayoral run, as its chair -- a move that was hailed by transit experts as a step in the right direction in terms of taking responsibility for the transportation system and its ongoing woes.
hRegardless of whether the governor decides to move forward with controversial MTA board restructuring, he and his chair seized a collective unilateral control over much of the authority’s actions.
Days after appointing Lhota, Cuomo declared a state of emergency at the MTA, ordering Lhota to assess the transit authority’s needs within 60 days. The administration has extended the order every 30 days, granting Lhota the authority to execute many contracts without a board vote.
“State of Emergency declarations must be renewed every 30 days, and as such, the Governor has renewed MTA’s order every 30 days so the MTA can continue to work swiftly and without constraint,” said Ajemian in statement, when asked when the order would be allowed to expire.
While MTA board members interviewed by Gotham Gazette declined to comment on the record about Cuomo’s restructuring bill, those from New York City have made clear that the governor already calls the shots at the agency. At least one gubernatorial appointee, Scott Rechler, sided with Cuomo on the legislation, when speaking to the New York Times in June.
“Let him put 100 percent of his political capital, his expertise, his energy, his relationships into fixing something that is immensely broken,” he told the outlet.
The general consensus is that the governor already has more than enough power over the MTA.
To restructure the MTA board, Cuomo would need the support of Legislature, which is led by an Assembly member from New York City and a Senator from Long Island.
A spokesperson for Assembly Speaker Carl Heastie said no legislation had been proposed in the Assembly, so the speaker could not comment. A bill was hastily introduced and sent to the Senate’s rules committee on the last day of this year’s legislative session, and a spokesperson for Senate Majority Leader John Flanagan did not return a request for comment.
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by Rachel Silberstein, State government reporter, Gotham Gazette
@RachelSilby @GothamGazette
Gov. Cuomo (photo: Governor's Office)
As federal corruption trials loom for several associates of Governor Andrew Cuomo, the administration is forging ahead with Buffalo Billion II, the second phase in an ambitious plan to revitalize Buffalo’s beleaguered economy and help transform Upstate New York into a hub of technology innovation and jobs. The first phase saw the massive alleged bid-rigging and kickback scandal that rocked state politics when outlined in September 2016 by the Manhattan U.S. Attorney’s Office and will loom over Cuomo’s 2018 reelection campaign.
In April, the state Legislature approved $500 million in budgetary funds for the Buffalo Billion II, which marks a shift in the investment in Western New York. The initial Buffalo Billion program, touted by Cuomo as a major success in revitalizing that city despite the scandal, poured the bulk of the $1 billion in funds into a controversial solar panel factory, while Buffalo Billion II investments are diverse and largely infrastructural, including the development of waterfront and rail access, tourism, and job training initiatives.
Critics -- including lawmakers, financial analysts and good government groups -- acknowledge steps the Cuomo administration has since taken to improve the contracting process, but say they remain skeptical of the Buffalo Billion extension and how it is administered. Calling its approval “a blank check” to the governor with little oversight, they question why these small projects are not being funded through traditional means -- like via local governments -- and whether these investments are tax dollars well-spent. Meanwhile, other promises the governor made in the wake of the scandal were abandoned by Cuomo, who had promised unilateral action that did not materialize.
“There’s two problems here. One is the corruption problem, which is obviously paramount in the upcoming trials,” said David Friedfel, director of state affairs for Citizens Budget Commission, a nonpartisan watchdog. “But a second problem that we’ve voiced concern about, which is sort of getting lost in the conversation, is that a lot of these are a bad investment of state taxpayer dollars.”
The Buffalo solar panel factory, which received about $750 million in state subsidies, as well as a state-funded nanotechnology hub in Syracuse, are at the center of last year’s sweeping probe by then-U.S. Attorney Preet Bharara’s office, which ensnared nine men -- including two who had been powerful state officials -- whose trials may overshadow the 2018 legislative session in Albany, set to begin in January.
On January 8, jury selection is scheduled to start in the trial of Cuomo’s former close confidant and aide Joe Percoco, along with three construction and energy executives who had business before the state and are accused of arranging bribes for Percoco and his wife in exchange for Percoco’s government influence.
On May 15, jury selection for the trial of former SUNY Polytechnic Institute President and CEO Alain Kaloyeros, whom Cuomo empowered and praised over several years as a key architect of his upstate economic development efforts, and executives from LP Ciminelli, a construction company tied to the factory and Cuomo’ campaign coffers, will commence.
Two Syracuse developers, Steven Aiello and Joseph Gerardi, who run COR Development, will be defendants in both trials. Eight defendants in total have pleaded not guilty, while a ninth, lobbyist and former Cuomo ally Todd Howe, pleaded guilty to numerous felony charges and is cooperating with prosecutors. While Cuomo was not directly implicated in the federal complaint, prosecutors note that he received large campaign donations from the business people involved in the scheme, often at Howe’s behest. The governor also oversaw the economic development programs that were allegedly taken advantage of and dismissed calls for greater independent contracting oversight, both before and after the scandal broke, though he did make some relatively minor adjustments.
In November 2016, two months after the charges were outlined, Cuomo expressed dismay over the scandals that were threatening to undercut his signature economic development programs and vowed to quickly strengthen oversight and ethics, though all under his purview. Notably, Empire State Development, the state’s economic development authority, would immediately begin to oversee projects run by entities associated with SUNY Polytechnic, Fort Schuyler Management Corp. and Fuller Road Management Corp., state-affiliated nonprofits created to more quickly disburse economic development funding that Kaloyeros is accused of using to illegally direct contracts.
“I believe this public trust and integrity issue must be addressed – directly and forthrightly. I don’t believe in denial as a life strategy. I believe you must face your problems, no matter how unpleasant, and do your best to resolve them,” Cuomo said in a long statement outlining his response to the scandal and news of problems at CUNY. “It is time for action, not words.”
Cuomo promised a series of actions and proposals, some that would need legislative approval and others he categorized as “steps we can take immediately.” Most of those promised reforms did not materialize.
In the November 2016 statement, Cuomo vowed, “I will order my campaign and my party not to accept campaign contributions from companies once a Request for Proposals has been announced, and for six months following the conclusion for the winner,” adding, “I believe the other state offices and the legislature should do the same and will propose such a law.” According to Cuomo’s office, his pledge was not followed through on.
While his campaign did not follow through, in January of this year, Cuomo outlined his ethics platform and proposed creating such bans for all government leaders overseeing contracting processes. It did not pass.
In November 2016, under other ‘immediate’ actions he would be taking, Cuomo acknowledged that “[t]he contracting systems at CUNY and SUNY have become the focus of US Attorney and IG inquiries in the past several months. To insure more permanent supervision, I will create and appoint separate Inspector Generals for both SUNY and CUNY.” These IGs were not created.
Cuomo also said in November 2016, “I will also appoint a Chief Procurement Officer for the Executive branch. That person will be charged with reviewing all state contracts, with an eye towards eliminating any wrongdoing, conflicts of interest or collusion. And just so there is no confusion, I do mean all contracts.” The governor did not appoint such an officer.
Instead of immediate action on these promises, they were turned into proposals in Cuomo’s 2017 agenda that did not pass in the April budget or June legislative agreements that followed. Asked about the lack of follow-through on the promises from November 2016, Cuomo’s office pointed to the Legislature. In the November 2016 statement Cuomo had classified the proposals among “actions I can take under my own authority."
Enacted or not, critics say that these appointments would make no substitute for outside oversight.
Two months later, during the Buffalo leg of his six-stop 2017 State of the State tour, Cuomo made no mention of the scandals or his ethics platform, painting a rosy picture of his administration’s efforts to revitalize the city, and vowing to “double down” on the projects.
“Buffalo Billion squared because it takes Buffalo Billion I and it takes Buffalo Billion II, and there’s a synergy between the two of them that will be exponential,” Cuomo said. “The principles of it are going to be to build on Western New York’s renaissance, which you’ve all accomplished already, help more small businesses in downtown areas and strategically invest in regional industries.”
As the next phase of those efforts unfold with the backdrop of the corruption trials, the new Buffalo Billion does appear less vulnerable to bid-rigging, in part due to a series of voluntary fixes adopted by Cuomo’s administration, and also because of increased scrutiny from the press and government watchdogs.
The shift of economic development projects from under SUNY-affiliated nonprofits to Empire State Development, which can be audited by the comptroller’s office, is a key step, and ESD, a public authority, has modified its own contracting protocols based on recommendations by state-contracted consultants from Guidepost Solutions. (Cuomo announced he was hiring Guidepost to do a review soon after the scandal broke.)
Asked for comment about the steps the administration has taken to address the corruption scandal in the Buffalo Billion and which Cuomo promises has followed through on as Buffalo Billion II moves ahead, a spokesperson for Cuomo provided some background information but pointed Gotham Gazette to prior public statements by state officials.
“We share your goal of preventing fraud, waste and abuse. ESD has taken substantive steps to strengthen applicable processes to address the concerns you have raised and to implement your recommendations, including our support of strengthened governance provided to non-profits associated with SUNY,” Zemsky of ESD wrote in a letter sent to Guidepost Solutions’ head Bart Schwartz in April.
According to the governor's office, those Guidepost-suggested changes include reforms related to procurement, construction, property and equipment acquisition, and grant compliance. More specifically, there are new controls and procedures to improve payment processing and project management, with a focus on project timelines, billing, budgeting, documentation verification, payroll, and how RFPs and bids are evaluated.
There has been little contract or spending activity related to Buffalo Billion II in 2017, according to records provided by the governor’s office, but a handful of relatively smaller projects have made it past the planning stage. A new building for University at Buffalo Jacobs School of Medicine, is expected to be completed in December and will house an incoming class of students for the semester commencing January 2018. A welcome center on Grand Island, which is expected to become a vital component of New York's tourism industry, drawing in $100 billion and “supporting more than 900,000 jobs,” is expected to be fully constructed and in use by August 2018, according to Cuomo’s office.
Government watchdogs and reformers commend the government’s efforts to create more accountability for these projects but say they are no replacement for long-term, independent oversight.
The watchdogs call for a “database of deals,” which would digitally compile every entity receiving funds from the state along with where each dollar is going; dramatic overhaul of the campaign finance system to eliminate the appearance or reality of pay-to-play; and a bill to restore the powers of the state comptroller to review procurement contracts for SUNY, CUNY, and Office of General Services before they are approved. That power was stripped by Cuomo and the Legislature in 2011, in part to expedite the flow of economic development funds aimed at upstate revitalization, a move that was criticized intensely when the corruption revelations came to light.
"As with all of the economic development programs subject to our review, we are closely looking at payment requests,” said Jennifer Freeman, a spokesperson for DiNapoli's office in a statement to Gotham Gazette. “The problem is not all contracts and payments are subject to our review, which is why State Comptroller DiNapoli is pushing for major procurement reforms to improve oversight."
These long-sought reforms appeared to have some momentum in the 2017 legislative session, but wound up going nowhere due to pushback from Cuomo, even as more economic development money was approved.
There is less pushback against Buffalo Billion II, in part because the state projects involved are less controversial and more diverse than those announced in 2012. At that time, many questioned the state’s decision to spend $750 million on the SolarCity manufacturing plant that made a splash when it was purchased by Tesla’s Elon Musk, but has failed to the deliver the promised jobs. However, those watching Albany, and Buffalo, say questions remain about why the state is overseeing projects typically done by a local development authority or industrial development authority.
“In Buffalo, you have the state economic development corporation calling the shots on dinky expenditures on small real estate and street improvement projects,” said John Kaehny, executive director of ReInvent Albany, a watchdog group that has focused on economic development spending, especially upstate. “Is Buffalo Billion II a good investment compared to traditional government spending on clean water, road repair and public transit?”
Kaehny added that it is still preferable that the government make many small bets on small businesses, which is the emphasis of Buffalo Billion II, rather than “rolling the dice on giant, high risk, corporate handouts like Buffalo Billion I did with Tesla, Riverbend.”
Cuomo, a Democrat who has said he’s seeking a third term in 2018 and appears to be considering a run for president in 2020, may see Buffalo as an opportunity to shape his national image as a leader who successfully resuscitated one of America’s largest, long-suffering post-industrial cities -- succeeding where many others have failed. Though that narrative is likely to be complicated by the corruption scandal, with more to be determined by the trials set to begin in 2018.
The governor has called his work in Buffalo successful, pointing to a declining unemployment rate in the formerly industrial city, a rate that dropped from 7.9 percent in October 2010 to a 15-year-low of 4.9 by October 2016, and there is a chorus of voices backing him up. But Western New York’s job growth continues to lag behind the national average.
Part of the boom is related to an increase in construction jobs. For the five-year period ending in 2015, the number of construction jobs in the Buffalo-Niagara Falls Metro Area rose by 10.1 percent, an all-time record, according to Cuomo’s office, and by 9.3 percent in Erie County. The state investment has generated buzz and created an air of optimism and excitement for both Buffalonians and outsiders, including companies that have eyed the state’s second largest city. The city has recently seen investments from General Motors, Geico, Goldman Sachs, General Mills, Sumitomo Rubber, and Moog and Entrepreneur Magazine recently ranked Buffalo second in the nation for start-up communities, according to the governor’s office.
The governor and his aides also say young people are flocking back to Buffalo: the number of young adults ages 20 to 34 in the Buffalo-Niagara region has increased by 8.3 percent since 2010.
Still, lawmakers whose districts should benefit from the funds have critiques of both phases of the program. Assembly Member Raymond Walter, a Republican from Amherst, has been a vocal critic of the Legislature’s approval of the Buffalo Billion II and has joined calls for reforms in the wake of the the 2016 scandal. While acknowledging that Western New York has been infused with optimism and entrepreneurship, Walter says he attributes some of the economic prosperity to initiatives that predate Cuomo.
“My biggest concerns are, from what I've seen, is an inability to actually provide any data that shows that the programs are working,” he said of the initial Buffalo Billion program, noting that SolarCity was initially intended to house many types of industries before it became a solar panel factory. add
“The idea all along was we don't want a silver bullet, there's not a silver bullet solution to the economic woes of Western New York. We can't just have one big project, but that's exactly what this is turned into,” said Walter, who got in a heated back and forth with ESD head Howard Zemsky last month at an Assembly hearing on the progress of Buffalo Billion and other economic development programs.
The governor’s office says it is creating a “comprehensive and diverse portfolio of investments that collectively is driving the future of Buffalo’s continuing economic recovery.”
But while Buffalo Billion II may provide more tangible investments into the area, Walter questioned why the funds were not lined out by project in the 2017 budget, and criticized the opaque process through which it was passed.
“We're giving a blank check to the governor, to the Empire State Development, to whoever is going to be administering these funds,” he said. “So yeah, I still have great concern because we've given up all legislative authority over how this money is going to be spent.”
Others, like Democratic Assemblymember Crystal Peoples-Stokes, of Buffalo, says she and her constituents welcome the investment from the state. While she recognizes concerns, Peoples-Stokes said she has witnessed a dramatic change in the long-struggling city in terms of opportunity, entrepreneurship, and investment from major companies, as well as college students choosing to remain in Buffalo’s downtown after graduation.
“For me, at the end of the day, to see economic development dollars have a meaningful impact in the core of our city, I’m satisfied with that,” she said. “Because for years, literally years -- this is not my first go around, I’ve been here for 15 years -- I’ve never seen the type of resources put into Buffalo as we’ve seen under Governor Cuomo.”
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by Rachel Silberstein, State government reporter, Gotham Gazette
@RachelSilby @GothamGazette
Correction: An earlier version of this story mistated the trial date of the LP Ciminelli executives.
Note: this story has been updated with more information on the reforms adopted from the Guidepost recommendations.
New York City Hall
What to watch for this week in New York politics:
This week will start with Mayor de Blasio and the NYPD celebrating low crime in New York City, especially the incredibly low number of murders and shootings in the city thus far this year, looking at data through November.
For his part, Governor Andrew Cuomo took a quick trip to Puerto Rico on Saturday to recognize New Yorkers who have been on the ground there, many helping to restore power on the island, and to pledge more help. Cuomo is just over a month away from releasing his 2018 agenda. Meanwhile, he is under increasing pressure to chart a path to Democratic reconciliation in the state Senate.
De Blasio and Cuomo also have at least one eye on Washington, D.C., where a tax reform bill is moving its way through the legislation process that could have drastic impacts on New York and New Yorkers. Both have been critical of the legislation, a version of which passed the U.S. Senate late Friday night with no public review, and is now headed back to the House of Representatives for discussion. Cuomo scheduled a conference call to discuss the GOP tax reform effort with the governor of California and governor-elect of New Jersey, and members of the media.
Another major ongoing storyline is the race for City Council Speaker. While the vote will take place among the 51 City Council members of the new class come January, manuevering among the eight candidates continues, and political dynamics will continue to change throughout this week and the rest of December, most likely.
Speaking of the City Council, there are several high-profile hearings this week, on progress toward closing the Rikers Island jails; on NYCHA's failure to test apartments for lead paint; and on school desegregation. The three are among a larger set of Council hearings as this Council class enters its final few weeks.
As always, there are many events to be aware of this week - see our day-by-day rundown below.
***Do you have events or topics for us to include in an upcoming Week Ahead in New York Politics?
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The run of the week in detail:
Monday
Mayor de Blasio has several events scheduled for Monday: at 11:30 a.m., de "Mayor de Blasio and Police Commissioner O’Neill will hold a media availability regarding crime statistics...There will be Q-and-A" with members of the media. This event will take place at 250 West 135th Street. At 7 p.m., "the Mayor will appear on NY1’s Inside City Hall." De Blasio will also speak at two events closed to the media: the Cities Thrive holiday reception at Gracie Mansion and the Queens County holiday party.
"On Monday, December 4, 2017 First Lady Chirlane McCray will host the second convening of Cities Thrive, an ever-growing network of nearly 200 cities working together to support a stronger, better funded and more integrated behavioral health system nationwide. Mayor Bill de Blasio will give an address during the second day of the conference. The coalition launched late last year and consists of a bi-partisan group of mayors from all 50 states, Washington, D.C., and Puerto Rico who are committed to driving mental health reform on local and national levels. The coalition expands the key principles for action in NYC’s groundbreaking mental health plan, ThriveNYC, led by the First Lady. A few of the coalition’s major achievements include working to help pass federal comprehensive mental health reform legislation, additional federal funding to combat the opioid crisis, and defense of the Affordable Care Act. Over the course of two days (Monday, December 4 - Tuesday, December 5) the First Lady and Mayor will be joined by agency leaders, elected officials, public health advocates and mental health professionals from across the country to share best practices for driving local change, and encourage a national dialogue that strengthens the public health approach to mental health and substance misuse." The event willl take place at New York Law School.
At the City Council on Monday:
--The Subcommittee on Zoning and Franchises will meet at 9:30 a.m.
--The Committee on Fire and Criminal Justice Services will meet at 10 a.m. for an oversight hearing regarding “progress in closing Rikers Island.” City Council Speaker Melissa Mark-Viverito will participate.
--The Subcommittee on Landmarks, Public Siting, and Maritime Uses will meet at 11 a.m.
--The Subcommittee on Planning, Dispositions, and Concessions will meet at 1 p.m.
At 9:30 a.m. Monday, JustLeadershipUSA and #CLOSErikers will hold a rally outside the Brooklyn Bridge-City Hall subway stop, preceding the City Council oversight hearing on the closure of Rikers Island jails.
Comptroller Scott Stringer has two public events Monday: at 9 a.m. he'll deliver remarks at the UFT rally for Puerto Rico,
outside the Alexander Hamilton Custom House. At 6 p.m., Stringer will deliver remarks at the Blackboard Awards for Schools, at the NYIT auditorium.
At 10 a.m. Monday, the Assembly Standing Committees on Environmental Conservation and Health, and the Subcommittee on Oversight of the Department of Environmental Conservation, will hold a joint public hearing at 250 Broadway in Manhattan to “examine water quality issues and to review implementation of the $2.5 billion in water infrastructure funding contained in the 2017-18 State Budget.”
At 11 a.m. Monday, "Minister Kirsten John Foy, Northeast Regional Director of NAN; along with NAN leadership, clergy, community stakeholders and activists" will "protest the FDNY hiring of racist son of former commissioner." The protest rally will occur outside of 9 Metrotech Center, Flatbush Ave.
At 11 a.m. Monday at the Manhattan District Attorney's Office, an #EndWageTheft event: City and state prosecutors and partners will "announce joint effort to combat wage theft in the construction industry. Prosecutors to announce criminal charges in multiple cases involving stolen wages, provide tips on spotting wage theft and reporting it to authorities." The event will include: Manhattan District Attorney’s Office; New York State Attorney General’s Office; Brooklyn District Attorney’s Office; Bronx District Attorney’s Office; Nassau District Attorney’s Office; Queens District Attorney’s Office; Staten Island District Attorney’s Office; Westchester District Attorney’s Office; New York State Department of Labor; New York City Department of Investigation; and the New York City Comptroller’s Office.
At 12:30 p.m. Monday, Civic Hall will host “How Can Kids Become Engaged Citizens In This Age Of Turmoil?,” discussing how education can “help develop kids to become lifelong citizens.” Participants include DeNora Getachew of Generation Citizen, Jacqueline Simmons of Teachers College, Elizabeth Waters of Inquiring Minds, and Joe Rogers of the Center for Education Equity.
At 1 p.m. Monday at his New York City office, "Attorney General Eric T. Schneiderman and Federal Communications Commission Commissioner Jessica Rosenworcel will discuss fake comments that have corrupted the FCC’s public comment process on net neutrality, and call on the Commission to cooperate with Attorney General Schneiderman’s investigation."
At 2 p.m. Monday, Governor Cuomo will be in Albany, from where he will join California Governor Jerry Brown and New Jersey Governor-Elect Phil Murphy to hold "a conference call on the GOP Tax plan."
Tuesday
On Tuesday during the Cities Thrive conference, Mayor de Blasio will give remarks in the 11:20 a.m. to 12:30 p.m. window, sandwiched between remarks by Andy Slavitt, Senior Advisor of the Bipartisan Policy Center, and First Lady McCray.
At 10 a.m. Tuesday, City Council Speaker Melissa Mark-Viverito will be in the Bronx to visit the P.S. 30 food pantry. At noon at City Hall, Mark-Vivierito will hold an ethnic and community media roundtable. And in the evening, Mark-Viverito and Deputy Mayor Alicia Glen will appear on NY1's Inside City Hall to discuss the East Harlem rezoning.
On Tuesday at 1:30 p.m., "Acting Brooklyn District Attorney Eric Gonzalez, together with Federal, State and City partners, to announce conclusion of major long-term investigation."
On Tuesday at 2 p.m. at P.S. 315 in Brooklyn, "Deputy Mayor Buery, City officials, and Warby Parker co-founders and co-CEOs visit vision screenings at Brooklyn elementary school to highlight the Community Schools vision screening program and make an announcement about the expansion of the partnership with Warby Parker to provide free eyeglasses to all 227 Community Schools."
At the City Council on Tuesday:
--The Committee on Public Housing will meet at 10 a.m. for an oversight hearing regarding the “DOI investigation into lead-based paint conditions at NYCHA apartments.” Public Advocate Letitia James will participate in the hearing.
--The Committee on Parks and Recreation will meet at 10 a.m. to discuss proposed laws relating to “cleaning park playground equipment after the spraying of pesticides” and “reporting on park capital expenditures.”
At the State Legislature on Tuesday:
--The Assembly Standing Committees on Governmental Operations, Labor, and Small Business, and the Assembly Subcommittee on Oversight of MWBEs, will meet jointly at 11 a.m. in Albany to “examine the MWBE program, the 2016 MWBE Disparity Study, including its Workforce Study and the potential implementation of recommendations, through the input of program participants.”
--The Assembly Standing Committee on Tourism, Parks, Arts, and Sports Development will hold a public hearing at 11 a.m. in Albany to “review the impact and effectiveness of the New York State Council on the Arts (NYSCA) grants awarded throughout the State.”
--The Assembly Standing Committee on Education will meet at noon in Albany for a public hearing regarding “the education of students at private schools in New York State.”
--The Senate Standing Committee on Energy and Telecommunications will hold a public hearing at 10 a.m. at 250 Broadway in Manhattan to “gain insight on the logistics of the NY Prize Program, including timeframes, cost, and efficacy of the program.”
At 8:30 a.m. Tuesday, the District Attorneys for each borough except for Queens will convene at the Town and Village Synagogue in the East Village to discuss how they are attempting to divert mentally ill people and substance abusers away from the criminal justice system. The discussion is sponsored by the Greenburger Center for Social and Criminal Justice, Metro IAF, and the New York Daily News. Alyssa Katz of the Daily News editorial board and Greenburger Center Executive Director Cheryl Roberts will co-moderate.
Public Advocate Letitia James will be among those who attend The Nation Institute's Gala on Tuesday evening.
Comptroller Scott Stringer will host his annual Jewish Heritage Celebration on Tuesday night.
At 7 p.m. Tuesday, Mayor de Blasio will hold a town hall meeting at the Belle Harbor School in Belle Harbor, Queens, with City Council Member Eric Ulrich, Queens Borough President Melinda Katz, U.S. Rep Gregory Meeks, and Assemblymember Stacey Pheffer Amato.
Wednesday
At the City Council on Wednesday:
--The Committee on Rules, Privileges, and Elections will meet at 10 a.m. to discuss the nominations of Anne Holford-Smith to the Landmarks Preservation Commission, and Alameda Sky Chapman to the Youth Board.
--The Committee on Technology will meet at 1 p.m. for an oversight hearing regarding “MODA’s data and verification plan.”
--The Committee on Juvenile Justice will meet at 1 p.m. for an oversight hearing regarding “DYFJ’s efforts in the implementation of raising the age of criminal responsibility.”
The New York Housing Conference and the National Housing Conference will host its 44th Annual Awards program at the Sheraton Times Square on Wednesday. Prior to the awards ceremony, there will be several panel discussions on the state of housing in New York. At 9 a.m., there will be a discussion on the potential impacts of HUD policy shifts, with NYCHA CEO Shola Olatoye, HPD Commissioner Maria Torres-Springer, HUD Region II Administrator Lynne Patton, and NYS Homes and Community Renewal Commissioner RuthAnne Visnaukas. Other panels will gather leaders in government, business, and advocacy to discuss issues such as updates to the city & state housing plan, the homelessness crisis, federal tax reform, and disaster recovery.
At 11 a.m. Wednesday in Albany, the Assembly Standing Committee on Aging will meet for a public hearing to “explore the ways in which community-based non-medical services and programs provide cost-effective supports to seniors living in their homes and neighborhoods and look at new approaches to delivering these services.”
Also at 11 a.m. Wednesday in Albany, the Assembly Standing Committee on Veterans' Affairs will meet on “Budget and programs for veterans related to monies in support of veteran-to-veteran programs.”
At 6 p.m. Wednesday, City Council Speaker Melissa Mark-Viverito will deliver the keynote address at “The Future of DACA” at Columbia’s SIPA International Affairs Building.
At 6:30 p.m. Wednesday, City Council Member Andy King will deliver the keynote address at the Bronx Neighborhood Housing Services “Winter Wonderland Gala” at Eastwood Manor in Pelham Gardens, Bronx. The keynote will be titled “The Future of Affordable Housing in the Bronx.”
Thursday
At the City Council on Thursday:
--The Committee on Land Use will meet at 11 a.m.
--The Committee on Education will meet at 1 p.m. for an oversight hearing regarding “diversity in New York City schools.”
At 8:30 a.m. Thursday, City & State will host “Disaster Management,” part of its “Front Page Roundtable Series,” at the 3 West Club in Midtown. The panels, consisting of leaders in business, government, advocacy, and media, will discuss disaster preparedness and management in the wake of recent natural disasters and terrorist attacks.
At 5 p.m. Thursday, protesters will gather outside Verizon stores as part of a nationwide protest against the Trump administration’s plans to end net neutrality.
At 6 p.m. Thursday, the Manhattan Chamber of Commerce will announce its new chair at its 2017 Annual Open Meeting.
At 6 p.m. Thursday, Citizen Action NY will host its 2017 Progressive Leadership Awards at DC 1707 in Midtown. Honorees include Mujahid Farid of the Release Aging People in Prison Campaign, the New York State Nurses Association, Youth Leaders at Make the Road NY, and political strategist and CNN commentator Angela Rye.
At 7:30 p.m. Thursday, Mayor de Blasio will hold a town hall meeting at the Julia Richmond Education Complex on the Upper East Side with City Council Member Ben Kallos, U.S. Rep Carolyn Maloney, State Senator Liz Krueger, and Assemblymember Rebecca Seawright.
Friday and the weekend
Mayor de Blasio is expected to make his weekly Friday morning appearance on WNYC's The Brian Lehrer Show at 10 a.m.
At 11 a.m. Saturday, Easy Elections NY will kick off its 2018 campaign to make it easier to vote in state elections at the First Presbyterian Church of Albany.
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Have events or topics for us to include in an upcoming Week Ahead in New York Politics? E-mail Gotham Gazette executive editor Ben Max any time: This email address is being protected from spambots. You need JavaScript enabled to view it. (please use "For Week Ahead" as email subject).
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by Ben Brachfeld and Ben Max
@GothamGazette
What's The Data Point? Episode 21 -- $26 billion, with Martha Stark [You can download What's The [Data] Point? wherever you get your podcasts, including on iTunes]
The property tax system in New York is complex and controversial. New York City will take in $26 billion in property taxes this year from resident and business property owners -- the largest single source of revenue that funds New York City government. But there are significant inequities in the system and there has been talk of reform for decades, but nothing has been done. While Mayor de Blasio has promised action in his second term, a group has formed to sue the city and state to compel them into changing the system. Martha Stark is a former New York City finance commissioner who is working with the group, Tax Equity Now, and she joined the podcast to discuss the system, its problems, the lawsuit, and possible solutions.
Listen to the conversation and let us know what you think: Ben Max of GG (@TweetBenMax), Carol Kellerman of CBC (@cbcny), and guest Martha Stark. Listen below or download wherever you get your podcasts!
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by Ben Max, Gotham Gazette
@tweetBenMax @GothamGazette