Good Morning from Federal Ha
ll (and Happy President’s Day)…
While President Trump celebrated President’s Day Weekend by taking a lap at Daytona 500 in the “Beast” (pictured below), State Legislators wrapped up Joint Budget Hearings last week and headed back to their districts. They will return to Albany February 24th. In the meantime, 30-Day Amendments to the Executive Budget Proposal are due February 20th. As Legislators prepare for re-election campaigns in the months to come, many also face tough questions in their districts on Bail Reform, the current Trusted Traveler 
morass, and other controversial issues stemming from last year’s “most productive” session ever. That leaves a burning question in Albany: how much will REALLY get done this year?
- Medicaid Redesign Team II—Last week was the beginning of work on MRT II—with the first meeting of the Team, a public forum (announced less than 24 hours in advance), and the announcement of the first
working group on Managed Long Term Care. We saw just how far the MRT II has to go in the short period of time before they have to make recommendations amounting to $2.5 billion in savings in about a month and a half. Legislators and the public again expressed deep frustrations at the lack of sunlight on the MRT, especially the lack of notice on the first public hearing. The Executive Chamber has taken the position that it HAS to get something done this year, but the clock is ticking. How ambitious the reforms will be remains to be seen.
working group on Managed Long Term Care. We saw just how far the MRT II has to go in the short period of time before they have to make recommendations amounting to $2.5 billion in savings in about a month and a half. Legislators and the public again expressed deep frustrations at the lack of sunlight on the MRT, - Adult Use Marijuana—Over the course of Cuomo’s tenure, he has continuously used negotiating leverage in the State Budget process to his advantage. It looks like he will be using a similar playbook on adult use marijuana this year. Governor Cuomo said last week: “Marijuana, if it’s not done in the budget, it’s because they say to me, we can’t do it.” The Governor put additional pressure on a handful of moderate members of the State Senate whom he does not think politically could vote for a standalone bill. He may be right on the politics but driving the budget process is also undoubtedly a strategic maneuver. Additionally, we have yet to see the amended version of the Legislature’s bill from Sponsors Senator Liz Krueger (D-Manhattan) and Assembly Majority Leader Crystal Peoples-Stokes (D-Buffalo) (pictured, left).
budget process is also undoubtedly a strategic maneuver. Additionally, we have yet to see the amended version of the Legislature’s bill from Sponsors Senator Liz Krueger (D-Manhattan) and Assembly Majority Leader Crystal Peoples-Stokes (D-Buffalo) (pictured, left). - Definition of Public Works—The Governor revived efforts to clarify the laws around prevailing wage for projects receiving public subsidies. The Executive Budget Language, similar to last year, is seen as a jumping off point for those discussions. What remains to be seen is if labor leaders in the Legislature, like Senate Labor Chair Jessica Ramos, and the Governor will be able to hash out and agree upon a palatable proposal by April 1. Senator Ramos and Rochester Area Assembly Member Harry Bronson also have a standalone bill in the Legislature they introduced last year. However, if this issue is not handled in the Budget, it is unlikely it will get done before the Legislature adjourns just after Memorial Day.
- Gestational Surrogacy—After a standalone bill to legalize gestational surrogacy (New York is one of only three states where it is currently illegal) failed at the end of session last year, gestational surrogacy is gaining steam in the Budget Process. Last week, the Governor announced the “Love Makes a Family” Campaign to drive the legislation in the Budget process. The Campaign includes the creation of a “Love Makes a Family” Council, as well as a petition where New Yorkers can endorse the Governor’s proposal.
- Foundation Aid—The conversation around the State’s “Foundation Aid” formula is becoming increasingly thorny. While the Alliance for Quality Education, and advocates like Senator Robert Jackson (D-Manhattan) (whose Campaign for Fiscal Equity lawsuit led to the court decision that prompted the creation of Foundation Aid in 2007) fight for the first “fully funded Foundation Aid since 2009,” moderates on Long Island have introduced legislation with a separate set of criteria that would help increase the share of dollars going to districts on the Island. Expect this issue continue to get trickier and trickier. f
funded Foundation Aid since 2009,”And finally, will the Executive Chamber and lawmakers find the long term solution to a growing deficit? Comptroller Tom DiNapoli’s Report on the Executive Budget last week raised significant concerns about transparency and accountability, including proposed statutory changes that could distort the reporting of revenue and spending in the state’s financial statements and allow the Executive to spend beyond the amounts approved by the legislature, and questions on the actual funding sources for expenditures in the new capital plans for the MTA and the DOT. Read the full report here.
We hope you enjoy the week away from Albany. Please let us know what you want to see us cover in the weeks to come!
— Jack O’Donnell
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