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7 Takeaways From New York’s $175 Billion Budget 7 Takeaways From New York’s $175 Billion Budget
(about 13 hours later)
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ALBANY — After months of frenzied lobbying, bitter infighting, late-night bill drafting and secretive negotiating, New York’s $175 billion state budget is finally here.ALBANY — After months of frenzied lobbying, bitter infighting, late-night bill drafting and secretive negotiating, New York’s $175 billion state budget is finally here.
You could call it the budget of progressive priorities. It’s the first budget in a decade to be negotiated between all Democrats — Gov. Andrew M. Cuomo and the Democrat-led State Senate and Assembly — and it will turn many long-neglected liberal priorities into reality.You could call it the budget of progressive priorities. It’s the first budget in a decade to be negotiated between all Democrats — Gov. Andrew M. Cuomo and the Democrat-led State Senate and Assembly — and it will turn many long-neglected liberal priorities into reality.
But you could also call it the budget of compromises. Even as activists cheered the inclusion of certain issues, they also said some measures did not go far enough, or delivered on certain promises in name only.But you could also call it the budget of compromises. Even as activists cheered the inclusion of certain issues, they also said some measures did not go far enough, or delivered on certain promises in name only.
Here’s your guide to the deals that will shape life in New York this year and beyond.Here’s your guide to the deals that will shape life in New York this year and beyond.
The idea of charging drivers of vehicles that enter the busiest parts of Manhattan had been around for decades. But lawmakers from outside Manhattan always shot it down, worrying that their constituents would pay a price without reaping benefits.The idea of charging drivers of vehicles that enter the busiest parts of Manhattan had been around for decades. But lawmakers from outside Manhattan always shot it down, worrying that their constituents would pay a price without reaping benefits.
But now the subway crisis has reached a tipping point.But now the subway crisis has reached a tipping point.
Mr. Cuomo, who has been hammered by political opponents over the transit system that he controls, made congestion pricing a must-have in negotiations. Democrats campaigned on a promise to fix the subways, and even many legislators from outside Manhattan rallied behind the plan as a way to help the Metropolitan Transportation Authority.Mr. Cuomo, who has been hammered by political opponents over the transit system that he controls, made congestion pricing a must-have in negotiations. Democrats campaigned on a promise to fix the subways, and even many legislators from outside Manhattan rallied behind the plan as a way to help the Metropolitan Transportation Authority.
“We’re at the point where the Assembly members understand the need to fund the M.T.A.,” Carl E. Heastie, the Assembly speaker, said last week.“We’re at the point where the Assembly members understand the need to fund the M.T.A.,” Carl E. Heastie, the Assembly speaker, said last week.
Even Mayor Bill de Blasio, who had pushed instead for a tax on the wealthy, agreed that congestion pricing was the only viable way forward.Even Mayor Bill de Blasio, who had pushed instead for a tax on the wealthy, agreed that congestion pricing was the only viable way forward.
New York City will become the first city in the country to introduce congestion pricing.New York City will become the first city in the country to introduce congestion pricing.
The pieces seemed to be in place this year for legalizing recreational marijuana. Mr. Cuomo, who had long been skeptical of what he called a gateway drug, finally announced his support for legalization in December. And Mr. Cuomo is known for getting what he wants in Albany.The pieces seemed to be in place this year for legalizing recreational marijuana. Mr. Cuomo, who had long been skeptical of what he called a gateway drug, finally announced his support for legalization in December. And Mr. Cuomo is known for getting what he wants in Albany.
But it quickly became clear that people had wildly different visions for legalization.But it quickly became clear that people had wildly different visions for legalization.
Well-financed medical marijuana companies wanted a stake. So did progressive black lawmakers, who opposed any bill that did not guarantee returns for their communities. Some suburban legislators did not want legalization at all — they worried about public safety and health effects.Well-financed medical marijuana companies wanted a stake. So did progressive black lawmakers, who opposed any bill that did not guarantee returns for their communities. Some suburban legislators did not want legalization at all — they worried about public safety and health effects.
Even though activists made a huge last-minute push — hundreds of people walked through the Capitol last week, chanting loudly for legalized marijuana — it was ultimately not included in the budget.Even though activists made a huge last-minute push — hundreds of people walked through the Capitol last week, chanting loudly for legalized marijuana — it was ultimately not included in the budget.
There’s still a chance that it could be passed separately in the remaining months of session. But it may be harder to force a vote without a looming budget deadline. And while there’s always next year, 2020 is an election year and few lawmakers are keen on taking controversial votes while up for re-election.There’s still a chance that it could be passed separately in the remaining months of session. But it may be harder to force a vote without a looming budget deadline. And while there’s always next year, 2020 is an election year and few lawmakers are keen on taking controversial votes while up for re-election.
One of the most striking outcomes of last year’s election was the number of incumbents who were unseated, in spite of deeper pockets and, in many cases, party support.One of the most striking outcomes of last year’s election was the number of incumbents who were unseated, in spite of deeper pockets and, in many cases, party support.
The challengers who replaced them vowed to push for a small-donor matching system, which would elevate the voices of everyday New Yorkers over megadonors, and could encourage more upsets in the future.The challengers who replaced them vowed to push for a small-donor matching system, which would elevate the voices of everyday New Yorkers over megadonors, and could encourage more upsets in the future.
That predictably unnerved some longtime politicians. After all, why would anyone want to change a system that had allowed them to win? Mr. Heastie said earlier this month that he wasn’t sure he had the votes to push through public financing.That predictably unnerved some longtime politicians. After all, why would anyone want to change a system that had allowed them to win? Mr. Heastie said earlier this month that he wasn’t sure he had the votes to push through public financing.
Hence the compromise: The budget guarantees a small-donor match system but leaves the details to a newly created commission, which would determine key details like the ratio of the match and contribution limits.Hence the compromise: The budget guarantees a small-donor match system but leaves the details to a newly created commission, which would determine key details like the ratio of the match and contribution limits.
The commission could create a program like New York City’s, which matches donations 6 to 1. That would make New York the first state in the nation to have an active, robust matching program. Or it could create a toothless program that effectively keeps the old system in place.The commission could create a program like New York City’s, which matches donations 6 to 1. That would make New York the first state in the nation to have an active, robust matching program. Or it could create a toothless program that effectively keeps the old system in place.
"It's possible the commission could create a successful program," said Jessica Wisneski, co-director of Citizen Action of New York, a grass roots group. Or, she said, "It could be a cynical attempt to kill reform.""It's possible the commission could create a successful program," said Jessica Wisneski, co-director of Citizen Action of New York, a grass roots group. Or, she said, "It could be a cynical attempt to kill reform."
After the billionaire, Kenneth C. Griffin, bought a $238 million penthouse in Manhattan — the most anyone had ever paid for a home in the United States — simmering anger around income inequality turned into sudden momentum for a pied-à-terre tax, which would tax ultraluxury second homes above $5 million. After Kenneth C. Griffin, a hedge fund billionaire, bought a $238 million penthouse in Manhattan — the most anyone had ever paid for a home in the United States — simmering anger around income inequality turned into sudden momentum for a pied-à-terre tax, which would tax ultraluxury second homes above $5 million.
But the powerful real estate industry, which has funded many officials’ campaigns, sprang into action. They especially opposed the recurring nature of the tax, which developers warned would devastate the high-end market. Tax experts also said that the proposal would be difficult to implement on top of the city’s antiquated property tax system.But the powerful real estate industry, which has funded many officials’ campaigns, sprang into action. They especially opposed the recurring nature of the tax, which developers warned would devastate the high-end market. Tax experts also said that the proposal would be difficult to implement on top of the city’s antiquated property tax system.
So a compromise emerged, yet again: Instead of a recurring pied-à-terre tax, the state will raise the so-called “mansion tax” and the real-estate transfer tax on multimillion-dollar properties. Those taxes will be one-time fees and raise a combined $365 million.So a compromise emerged, yet again: Instead of a recurring pied-à-terre tax, the state will raise the so-called “mansion tax” and the real-estate transfer tax on multimillion-dollar properties. Those taxes will be one-time fees and raise a combined $365 million.
That’s less than some people had predicted a pied-à-terre tax would raise. But it also sends a clear message that those who can afford to pay will be expected to do so.That’s less than some people had predicted a pied-à-terre tax would raise. But it also sends a clear message that those who can afford to pay will be expected to do so.
In other words, real estate showed again that it has power in Albany. But maybe less than before.In other words, real estate showed again that it has power in Albany. But maybe less than before.
Mr. Heastie, the first black Assembly speaker in state history, memorably said in January that he would have “been a failure as a black man if we did not reform the criminal justice system.” On Sunday, he could celebrate some major changes.Mr. Heastie, the first black Assembly speaker in state history, memorably said in January that he would have “been a failure as a black man if we did not reform the criminal justice system.” On Sunday, he could celebrate some major changes.
While cash bail will not be abolished entirely, as some had wanted, it will end for all but certain violent felonies. Mr. Cuomo’s office estimated that 90 percent of people charged with a crime would no longer be jailed before trial.While cash bail will not be abolished entirely, as some had wanted, it will end for all but certain violent felonies. Mr. Cuomo’s office estimated that 90 percent of people charged with a crime would no longer be jailed before trial.
Prosecutors will also be forced to reveal possibly exculpatory evidence to the defense far earlier in the discovery process, and speedy trials will be guaranteed.Prosecutors will also be forced to reveal possibly exculpatory evidence to the defense far earlier in the discovery process, and speedy trials will be guaranteed.
These are all major victories for advocacy groups and public defenders, who have noted that New York’s discovery laws had previously ranked fourth worst in the nation. Rebecca Brown, director of policy at the Innocence Project, called Sunday’s package “transformational.”These are all major victories for advocacy groups and public defenders, who have noted that New York’s discovery laws had previously ranked fourth worst in the nation. Rebecca Brown, director of policy at the Innocence Project, called Sunday’s package “transformational.”
When it comes to describing how Mr. Cuomo felt about the sudden collapse of the plan to bring Amazon to New York City, rage might seem too gentle.When it comes to describing how Mr. Cuomo felt about the sudden collapse of the plan to bring Amazon to New York City, rage might seem too gentle.
He called the deal’s opponents “ignorant” and “superficial.” He blasted them as politically motivated and insincere. He even suggested that the Senate Democrats had engaged in a form of “government corruption” by nominating a vocal opponent of the deal, Senator Michael Gianaris of Queens, to a board with possible veto power over it.He called the deal’s opponents “ignorant” and “superficial.” He blasted them as politically motivated and insincere. He even suggested that the Senate Democrats had engaged in a form of “government corruption” by nominating a vocal opponent of the deal, Senator Michael Gianaris of Queens, to a board with possible veto power over it.
And he continued to make his anger known on Sunday, through a provision of the state budget that gives him “full discretion to immediately remove” a member of the board that Mr. Gianaris was nominated for, if the governor found that member was “acting, or threatening to act,” in any way that went beyond just fiscal analysis.And he continued to make his anger known on Sunday, through a provision of the state budget that gives him “full discretion to immediately remove” a member of the board that Mr. Gianaris was nominated for, if the governor found that member was “acting, or threatening to act,” in any way that went beyond just fiscal analysis.
“It was never, ‘You come and you use your political wisdom.’ There was a very limited legal role,” Mr. Cuomo said on Sunday. “And a person who is acting outside their legal role should not be in that role.”“It was never, ‘You come and you use your political wisdom.’ There was a very limited legal role,” Mr. Cuomo said on Sunday. “And a person who is acting outside their legal role should not be in that role.”
Everyone (except perhaps the Republicans) was declaring victory on Sunday. And to a certain extent, everyone could.Everyone (except perhaps the Republicans) was declaring victory on Sunday. And to a certain extent, everyone could.
Mr. Cuomo could claim victory on almost every priority he had outlined in his State of the State budget in January. He got a permanent property tax cap, a (limited) plan to publicly finance campaigns and bail reform. He could also tout another timely budget, a special point of pride.Mr. Cuomo could claim victory on almost every priority he had outlined in his State of the State budget in January. He got a permanent property tax cap, a (limited) plan to publicly finance campaigns and bail reform. He could also tout another timely budget, a special point of pride.
The Senate and Assembly majorities could credibly claim to have made those policies possible, after years of being waylaid by a Republican-led Senate. They also were most likely not upset by the $10,000 pay raise that comes with a timely budget (though what “timely” means is a matter of some debate.)The Senate and Assembly majorities could credibly claim to have made those policies possible, after years of being waylaid by a Republican-led Senate. They also were most likely not upset by the $10,000 pay raise that comes with a timely budget (though what “timely” means is a matter of some debate.)
Liberal activists, who had spent the frenzied last week of the budget negotiations pacing the Capitol’s halls, meeting with legislators and hosting raucous rallies, could point to concrete outcomes.Liberal activists, who had spent the frenzied last week of the budget negotiations pacing the Capitol’s halls, meeting with legislators and hosting raucous rallies, could point to concrete outcomes.
But Albany’s longtime power brokers didn’t leave empty-handed either. They successfully talked legislators out of the pied-à-terre, and a fully formulated public financing program. Full-fledged ethics reforms to address pay-to-play scandals and strengthen freedom-of-information laws went unaddressed.But Albany’s longtime power brokers didn’t leave empty-handed either. They successfully talked legislators out of the pied-à-terre, and a fully formulated public financing program. Full-fledged ethics reforms to address pay-to-play scandals and strengthen freedom-of-information laws went unaddressed.
“It’s a mixed bag,” said Susan Lerner, the executive director of Common Cause New York, a government reform group. “A more open, lengthier process probably would have given us a stronger result.“It’s a mixed bag,” said Susan Lerner, the executive director of Common Cause New York, a government reform group. “A more open, lengthier process probably would have given us a stronger result.
“But I don’t want to undercut the fact that we’re at least talking about these things and at least moving some reforms.”“But I don’t want to undercut the fact that we’re at least talking about these things and at least moving some reforms.”