DAYS THE BUDGET IS LATE: 28
WITH FRIENDS LIKE THESE: Mayor Zohran Mamdani and Council Speaker Julie Menin have been at odds over strategies to close New York City’s significant budget gap.
Mamdani insists the deficit can only be addressed by increasing taxes on millionaires and large corporations, while Menin believes it can be managed by reducing unnecessary municipal spending — a suggestion Mamdani previously dismissed as unrealistic.
A shift occurred today as both leaders united to urge Governor Kathy Hochul and state lawmakers to reduce a tax credit that mainly benefits millionaires. This move could generate $1 billion in new revenue for the city, a substantial aid in balancing its finances, according to Mamdani and Menin during a joint press conference.
“We are standing together today, we will stand together again,” Mamdani stated, alongside Menin at the City Hall Rotunda. “If we were to reduce this tax credit by just a quarter, as the speaker said, we would be talking about raising nearly $1 billion in additional revenue that would be critical in our city’s ability to balance this budget.”
However, Hochul, still dealing with a state budget delay, immediately dismissed the proposal, indicating it would not happen. She told reporters in Albany, “We’re not changing the PTET,” referring to the Pass-Through Entity Tax credit targeted for reform by Mamdani and Menin.
This rejection leaves Mamdani and Menin without a clear strategy to address the city’s budget shortfall and introduces a new element to the ongoing state budget negotiations, positioning Mamdani and Menin against Hochul.
This development poses a challenge for Hochul, who needs strong support from New York City for her reelection and risks a political rift with Mamdani’s left-leaning supporters.
Meanwhile, Mamdani and Menin have agreed to delay the release of the mayor’s executive budget plan until May 12, aligning with a deal reported by POLITICO. Originally due this Friday, they hope to finalize it once Albany’s fiscal situation is clearer, as state budget delays could leave gaps in the city’s financial plan.
Read the full story from Chris and Nick in POLITICO.
FROM CITY HALL
SHELTER MOVES: A man died by suicide after being abruptly relocated from a shelter during Mayor Mamdani’s initiative to close the dilapidated Bellevue intake center on East 30th Street in Manhattan.
Mamdani revealed the closure plan on March 5, prompting a swift effort to empty two East Village shelters and convert them into intake centers for homeless men and families. This action, based on expert advice, was due to the severe disrepair of the Bellevue site, according to Mamdani.
Advocates cautioned that these relocations could pose significant health risks if not carefully managed.
Steven Rosa, relocated from a shelter with behavioral health services to a hotel-turned-shelter in Brownsville, Brooklyn, seemingly fell through the cracks.
Rosa’s family shared with POLITICO that his depression worsened following the move, leading him to isolate in his hotel room. He was later found deceased in early April.
“We are saddened by this tragic loss, and our hearts are with this individual’s family and loved ones during this difficult time,” expressed a spokesperson for Comptroller Mark Levine’s office in response to the situation. “Our office had raised concerns with the City about the effect changes may have on New Yorkers. We are seeking to better understand the circumstances surrounding this tragedy.”
The Department of Social Services described Rosa’s passing as a “heartbreaking tragedy” but refrained from discussing specifics due to confidentiality.
“We continue to build on our efforts to assess potential risk factors — which might not be evident based on self-reported information and case history available to the agency — while strengthening connections to healthcare for all clients,” DSS spokesperson Neha Sharma noted.
The new intake centers were scheduled to open on May 1, but pending litigation may alter this timeline. — Maya Kaufman
HIGH STAKES: At 9:30 AM, a ribbon-cutting ceremony took place for New York City’s first full-fledged casino. The event featured a woman on stilts wearing candy stripes, Assemblymember Stacey Pheffer Amato in her lucky shoes, and Nas performing his 1996 hit, “If I Ruled the World,” with shoutouts to Resorts World.
Resorts World, located at the Aqueduct racetrack in Queens, is the first of three newly licensed casinos to offer live table games, marking the start of a significant expansion.
Proponents view this expansion as a major economic opportunity, adding a new resort and making the casino among the largest globally. The company has pledged $2 billion in community benefits, raising hopes among local leaders.
“I have to allude to the fact that we lost a 15-year-old, Jaden Pierre, in this community,” Borough President Donovan Richards said during the ceremony. “So these benefits are largely not just about benefits for this site, it’s about the lives that this site will save.”
Resorts World’s license was a surprise, awarded after a lengthy process, with licenses also granted to Bally’s in the Bronx and billionaire Mets owner Steve Cohen in December.
Amato, who led a community advisory board assessing local support for the casino, wore shoes adorned with baubles and fake diamonds during the process and again at the casino opening, which she frequents.
Speakers, including Richards and Council Member Ty Hankerson, expressed their support for the casino’s success despite not being gamblers themselves.
Adrienne Adams, a former Council Speaker running for lieutenant governor with Hochul, reflected on Resorts World’s proposal to build a gaming facility at Aqueduct 15 years ago during her time with the NAACP. She praised the company as an “amazing” community partner now held accountable for its commitments.
Genting, Resorts World’s Malaysian parent company, was represented by its chair KT Kim for the ceremony.
“Our planned expansion will bring a world-class integrated resort to this site, and when it is complete, New York will have something no other city in America can match,” Kim declared.
Local rapper Nas, also known as Nasir Jones, participated in the ribbon cutting, wearing a tuxedo and rolling the ceremonial first dice.
Despite a history of late or overbudget projects, Resorts World benefits from being operational years ahead of its competitors and committing a substantial portion of its revenue to the state. It outlasted other bidders, including developers seeking to establish casinos in Manhattan. Ironically, one of its older slot machine rooms is called Time Square Casino, making it the only such location in New York for the foreseeable future. – Ry Rivard
From the Capitol
CLIMATE TANGO CONTINUES: Discussions regarding potential changes to New York’s 2019 climate law are nearing a resolution. Governor Kathy Hochul’s recent proposal includes emission reduction regulations by 2028, with a flexible interim target in 2040 and maintaining the firm 2050 mandate.
Senate Majority Leader Andrea Stewart-Cousins commented, “It is certainly better than it was,” on Tuesday. “We’re trying to work on an entire package. … It is a huge push to make sure that we do not lose ground that we should not cede while we are waiting for the promulgation” of the regulations.
Stewart-Cousins mentioned that rebates to assist New Yorkers with high energy bills and proposals to accelerate solar investments are part of the discussions.
Hochul’s proposal includes a controversial accounting change sought by the governor that would require less aggressive fossil fuel reduction, especially for natural gas, according to sources familiar with the agreement.
Despite opposition from some Democratic lawmakers and environmental groups like Food and Water Watch and New York Communities for Change, who are urging a no vote on any budget altering the climate law, discussions continue.
“I don’t really understand why we have to compromise so much when the entire environmental advocacy community is saying that’s a bad idea,” said Democratic Assemblymember Linda Rosenthal. “We passed the climate law. We don’t want to roll it back so dramatically.”
Hochul did not provide cost estimates for her proposal’s impact on businesses and households, expressing concerns about the abrupt implementation costs of a cap-and-trade program to meet the 2030 climate law deadline.
Her proposal aims to extend the timeline, potentially nullifying the target and related lawsuits from environmental advocates. While Hochul initially supported “cap and invest” in 2023, she has reconsidered the program.
“I don’t know if there will be cap and invest,” Hochul stated. “If there’s cap and invest, is it capped cap and invest? Is it set at a certain number? All that is unknown right now. All I know is that to give some breathing room for New York families and business I have to have a longer runway.”
The current discussions indicate that cap and invest would be part of the 2028 regulations, according to those familiar with the talks. — Marie J. French
HOOD IN THE HOOD: Madison County Sheriff Todd Hood has pledged to be an active lieutenant governor if elected alongside Bruce Blakeman in the upcoming election.
“I’m definitely not a sit-in-the-office kind of guy,” Hood stated.
In recent decades, views on the lieutenant governor’s role have varied, with some seeing it as supportive of the governor and others as an independent office. Hood aligns with the former, aiming to assist Blakeman in reducing taxes and heating costs.
Hood participated in the NY Sheriffs’ Association lobby day at the Capitol and criticized Hochul’s plan to ban 287(g) cooperation agreements with ICE, arguing that “cutting off communication between agencies makes everyone less safe and reverses post-9/11 progress.”
Like his running mate, Hood has adopted a tough-on-crime stance.
“There are tons of false allegations against police,” Hood commented on a Hochul-backed plan to allow New Yorkers to sue ICE agents for rights violations. “That’s what I’ve seen the most of in my career, are lies.”
He also downplayed the controversy surrounding the deaths of Renee Good and Alex Pretti by federal agents, suggesting Good used her vehicle as “a deadly instrument” and describing Pretti’s situation as “bad things.” — Bill Mahoney
RFK JR. BEWARE: The state Assembly is countering federal policy changes to vaccine recommendations with a package of six bills aimed at strengthening state immunization laws.
The legislation addresses efforts by Health and Human Services Secretary Robert F. Kennedy Jr. to alter federal vaccine guidelines.
The package allows the state Department of Health to recommend vaccine schedules for New Yorkers using established medical standards and considering recommendations from the American Academy of Family Physicians, an independent professional association. Previously, the state relied on the federal Advisory Committee on Immunization Practices, which Kennedy attempted to overhaul before a judge blocked his appointments.
“Vaccines are foundational to public health and have long been a trusted and effective bulwark against harmful and deadly diseases, especially for our most vulnerable populations,” Speaker Carl Heastie stated. “New York will stand on the side of proven science as attacks on lifesaving immunizations continue from the federal administration place our residents at risk. This legislation puts the health and well-being of New Yorkers first and ensures that these vital resources remain accessible for our communities.”
The package also includes mandates for college students to be vaccinated against Hepatitis B, immunization requirements for children at summer camps, and health insurance coverage for vaccines without cost-sharing.
An additional measure provides liability protections for healthcare providers administering vaccines according to state and local guidance, crucial if actions contradict federal guidelines. — Katelyn Cordero
CAR WARS: Governor Hochul is examining how car insurance companies set premiums, addressing a significant issue in ongoing state budget negotiations.
“Yes, we are looking closely at how insurance companies set their rates and what criteria they use,” Hochul told reporters Tuesday. “So there’s two sides of the equation. One is I want to make sure that some of the drivers of why we have such high insurance premiums in the state are addressed, but also the insurance companies, we’re taking a close look at their practices as well.”
POLITICO reported Monday that Hochul and state lawmakers have discussed addressing so-called flex increases that car insurance companies use to raise premiums.
Read more from POLITICO Pro’s Nick Reisman here.
IN OTHER NEWS
— NEVER THE SAME: Timothy Brown, the man police beat in a Brooklyn liquor store, which went viral on social media, is suing New York City for $100 million in damages, saying he will never recover from the incident. (Gothamist)
— NEW PROTOCOLS: The New York Police Department has stalled or rejected policy changes recommended by the Department of Investigations regarding its controversial gang-database, which critics argue is used to target Black and Hispanic youth. (THE CITY)
— GETTING PERSONAL: Citadel CEO Ken Griffin will meet with Hochul to discuss New York City’s direction following a quarrel with Mamdani after the mayor announced a proposed new tax on pricey second-homes in front of the billionaire’s Manhattan penthouse. (Bloomberg)
Missed this morning’s New York Playbook? We forgive you. Read it here.
