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A new twist: Hackers hold up the budget

With help from Shawn Ness

New from New York

Happening now:

  • A cyberattack roiled the state Capitol amid budget negotiations.
  • Republicans responded to the latest budget deals and its opaqueness.
  • City Hall is facing questions over a new, prominent hire.
  • A deal for a two-year extension of mayoral control is under new scrutiny.

DAYS THE BUDGET IS LATE: 17

The doors to the state Bill Drafting Commission at the state Capitol were closed Wednesday after a cyberattack impacted the state’s ability to print budget bills.

HACK A BUDGET: Hackers are holding the bill drafting commission ransom. Gov. Kathy Hochul says bills will be written by pre-Y2K computers. And the budget is 17 days late.

Count this as a new one to hold up a budget. And it was all the talk in the Capitol halls.

Will it significantly delay the budget? Is the threat serious to the state’s systems?

“There’s never a dull moment in Albany,” Senate Finance Chair Liz Krueger said as she walked to a closed door Democratic conference.

The state’s commission charged with drafting budget language was hit with a cyber attack in the “wee hours of the morning,” Hochul said.

The attackers appear to be demanding money to regain access to the system, but no dollar amount was specified. It’s believed the attack hit the commission’s email system hardest.

Earlier today, one legislative office received an email written in a Cyrillic language purporting to be from the commission with a draft bill document.

“It's a bit of Murphy's Law, where you think everything that could go wrong has already gone wrong and then this happens,” Buffalo state Sen. Sean Ryan said. “Hopefully it’s a temporary glitch.”

In the meantime, Hochul said the Legislature will have to use a “more antiquated system” from 1994 to write budget bills.

That 1994 system was what the Legislature used for most of the time it’s been online. It was replaced by a system that was created after Democrats assumed the majority in the state Senate in 2019.

The old system “was very antiquated,” said a person familiar with the Legislature’s technological infrastructure. “For something that important, you shouldn’t use 30 year-old technology.”

For now, the return to the old system seems to be working. The state’s Legislative tracking service was updated throughout the day to include new amendments to bills.

Cyberattacks have become a growing hazard for governments. In New York alone, attacks on critical online infrastructure rose by 53 percent between 2016 and 2022, a report by the state Comptroller’s Office found.

New York last dealt with a widespread cyberattack in January 2020 when multiple state agencies, including the Department of Motor Vehicles, were targeted.

With the state budget already 17 days late, lawmakers are hoping the attack will not cause further delay in passing a spending plan.

But that’s not the least of the Legislature’s worries: “The bigger problem is we haven’t finished negotiating the budget,” said Senate Deputy Leader Mike Gianaris. — Jason Beeferman, Bill Mahoney and Nick Reisman

The Republican Conference wants more transparency during budget negotiations instead of it just being

FOUR PEOPLE IN A HALLWAY: For the Democrats, budget negotiations are frequently three people in a room. But for Republicans, it’s a handful of lawmakers in a hallway talking to reporters.

Earlier today, GOP leaders took to the Capitol hallway to address the troubles around the looming budget deal — particularly the lack of openness in the process, which they are not a part of.

“Transparency is the number one [priority]. Instead of having three people in a room, I would use public hearings,” Assembly Minority Leader Will Barclay told reporters outside the LCA room earlier today. “I would use actual committee structure with Democrats and the majority, but include the minority … instead of having three people in a room.”

Members of the minority conference are typically not included in any of the budget negotiations and are usually unaware of what is in the budget until they have a physical copy in front of them.

“We need transparency. Our constituents want to know what’s in the budget before we vote on any budget bills,” Assemblymember Ed Ra, a Long Island Republican, said. — Shawn Ness

The hiring of former Giuliani aide Randy Mastro for legal counsel is receiving pushback from City Council.

RANDY ROADBLOCKS: The mayor’s bid to hire former Giuliani aide-turned high-profile attorney Randy Mastro as City Hall corporation counsel is already running into pushback at the City Council.

A tweak to the city’s charter, authorized by voters in a 2019 ballot initiative, gives lawmakers authority over who the mayor hires for the role.

And some members are taking issue with Mastro’s legal history: He worked for former New Jersey Gov. Chris Christie, petro-conglomerate Chevron and the Upper West Side neighborhood group that tried to get homeless New Yorkers booted from the Lucerne Hotel during the pandemic.

“New Yorkers did not elect the most progressive, diverse Democratic supermajority in Council history to rubber stamp a return to the Giuliani era,” progressive Council Member Tiffany Cabán, a lawyer, told POLITICO in a statement.

“Our city’s top lawyer should be a principled champion of justice, not a far-right-wing pal of sleazy crooks like Rudy Giuliani, Chris Christie, and billionaire real estate magnates. No way in hell I vote to confirm Randy Mastro.” — Jeff Coltin and Joe Anuta

EDUCATION PANEL DRAMA: Members of an oversight panel key to mayoral control of schools blasted city plans to place plainclothes security staff onstage at meetings.

The move is about ensuring members’ safety from other panel representatives and “unruly” audience members during “heat discussions” or areas of disagreement, Department of Education security director Mark Rampersant said in a virtual March 26 briefing obtained by POLITICO.

He also said they are sworn peace officers with the power to arrest “if there’s any physical contact by anyone.”

“They’re going to give you directions, such as get up and clear the stage, because we should not have to endure such … threatening behavior or concerning behavior,” Rampersant said, adding they will increase the number of school safety agents in the audience.

The decision is raising eyebrows among non-mayoral appointees.

Adams appoints 13 of the governing body’s 23 members.

“It feels very autocratic, and it feels like a strong-arm tactic to silence the public and those of us who are instruments of the public,” Jessamyn Lee, a Brooklyn parent representative, said.

At a March meeting, Tom Sheppard, a Bronx parent-elected member, questioned chair Gregory Faulkner’s decision to adjourn without letting members give final remarks. (Faulkner, a mayoral appointee, said it was late, and within his discretion).

Sheppard got up, and he — along with some of the audience — chanted, “End mayoral control.” After mayoral appointee Anita Garcia yelled and asked him to stop, he gave her the middle finger, according to Faulkner.

Sheppard declined to comment on his language, but said his actions were twisted to make him appear threatening. “All I want is for people to have a voice,” he said.

Representatives also condemned a proposed code of conduct penned by Faulkner that has been tabled from tonight’s meeting to May.

DOE spokesperson Nathaniel Styer said members of the public, elected leaders and 16 panel members requested a code of conduct “to encourage decorum and respect” and additional security due to recent incidents, including a representative “directing obscene gestures and language at another member.” Madina Touré

State Sen. Samra Brouk and Assemblymember Harry Bronson are making moves to help out creative arts therapists.

CREATIVE ARTS THERAPY: Two lawmakers are hoping to include creative arts therapy on the state’s Medicaid providers list to ensure the services are covered under commercial health insurance.

There are two bills that Assemblymember Harry Bronson and state Sen. Samra Brouk, chair of the Senate Committee on Mental Health, are focusing on.

One would ensure reimbursement for creative arts services by commercial insurance carriers. The other would require direct reimbursement to creative arts therapists under Medicaid.

“So why is this important? It's important because of access. If you can't pay for your care, then you don't have access to that care. It's also about access because in many of our communities, we have a desert of mental health professionals,” Bronson, a Rochester-area Democrat, said.

Brouk said that for a long while, many advocates had to convince lawmakers that there was a mental health crisis.

“The problem is with everyone on every floor of this Capitol that agrees with us that we are in a mental health crisis, that we are in a mental health care workforce shortage. We still don't have the courage to do the simple things that we know need to get done to be able to meet this moment,” Brouk, another Rochester lawmaker, said. — Shawn Ness

NEW YORK’S HISTORY: Hochul announced today the inclusion of 11 projects from Buffalo to New York City to the New York State Historic Preservation Awards.

The projects include a revitalization of a Newburgh neighborhood, a Buffalo candy shop’s restoration and a scholarship for the city’s Puerto Rican casitas.

“Historic preservation projects take an immense amount of time, resources and dedication,” Hochul said in a statement. “From Buffalo to New York City, the 11 projects we’re honoring this year all symbolize critical parts of our storied history in New York State.”

The preservation awards were created in 1980 by the Office of Parks, Recreation and Historic Preservation to commend local historical landmarks. — Shawn Ness

A POTENTIAL DOWNSTATE DEAL: Hochul and lawmakers are close on a deal to save SUNY’s Downstate Medical Center that would include a $300 million transformation fund coupled with $100 million in operating aid to cover its annual deficit, POLITICO reports.

The deal is expected to include a 16-member commission, appointed by state and local leaders, that would establish long-term plans for the hospital, according to state lawmakers. The money would stave off any closure or changes to the facility until June 30, 2025, said Brooklyn Assemblymember Brian Cunningham.

It’s a major win for United University Professions who joined forces with state Sen. Zellnor Myrie at the forefront of the fight against plans laid out by SUNY earlier in the year to relocate most of its services. Kowal said he is pleased with the deal that’s been reported and is hopeful the final agreement will include the commission.

“We welcome what appears to be a process for real planning that will result in an even better hospital with inpatient care and even better training for the next generation of health care professionals at the medical school,” Kowal told POLITICO. Katelyn Cordero 

MORE ON MAYORAL CONTROL: A deal has yet to be struck on whether the state budget will include an extension to mayoral control, and some lawmakers are upset about the issue being brought back into the budget process — rather than deliberated on by the Legislature after the budget is passed.

Assembly Education Chair Michael Benedetto said he is supportive of an extension for mayoral control, but believes the issue shouldn’t have been part of budget negotiations.

“We should continue [mayoral control] and stop playing games with the mayor and the school system in the City of New York,” Benedetto told POLITICO. “However, it’s the job of the Legislature to debate and enact mayoral control the way we see fit and not for the governor to put into the budget.”

During a radio appearance on WNYC’s Brian Lehrer Show, Hochul said they are close to striking a deal between the Legislature, the mayor’s office, education advocates and labor unions regarding an extension that would include accountability on the state’s class size mandate.

“I feel confident that it’ll meet the needs, and make sure that the law we passed two years ago that deals with class sizes … is being adhered to,” Hochul said. “And the mayor knows that. We are structuring a very complex deal here, but I think ultimately — is everybody happy? Never — but compromise is important, and I think we will get to a very good place.” — Katelyn Cordero

— Senate Majority Leader Chuck Schumer said he would end the Alejandro Mayorkas impeachment trial as soon as it begins. (State of Politics)

— State officials are encouraging more local communities to apply for a grant program designed to revitalize downtown areas. (Buffalo News)

— The man behind the wheel during the fatal stop of an NYPD officer said he had no idea his passenger would shoot an officer. (Newsday)

Columbia strife ensnares Hochul, Adams

With help from Shawn Ness

New from New York

Happening now:

  • Gov. Kathy Hochul visited Columbia University amid the rancor there.
  • A new bill aimed at curbing consumption of single-use plastic is being pushed on Earth Day
  • A dispatch from Columbia University amid the protests there.
  • And a report outside the trial of former President Donald Trump.

DAYS THE BUDGET IS LATE: It isn't! See you next year.

Pro-Palestinian protests continued at Columbia University on Monday as NYPD officer were stationed beyond the campus perimeter.

It’s the biggest political story in New York right now.

The protests at Columbia University have been on the front page of The New York Times, The New York Post and even President Joe Biden has weighed in.

But Gov. Kathy Hochul and Mayor Eric Adams may be powerless in their own backyard.

“The problem is there ain’t much they can do,” said Hank Sheinkopf, a New York political consultant who has advised candidates and politicians on Jewish issues.

Outside of Columbia’s campus today, dozens of NYPD cops stood behind barricades on the perimeter of Columbia’s campus. With zip ties on their waist, the officers stood ready for action.

But, this time, the police were kept at bay.

“Columbia University is a private institution on private property, which means the NYPD cannot have a presence on campus unless specifically requested by senior university officials,” Adams said in a statement late Sunday.

Just four days earlier, they had taken the rare step of arresting 113 students after Columbia President Minouche Shafik ushered the officers on campus. In his statement, the mayor also urged the university to communicate better with the police force.

Like Adams’ officers, Hochul was also in Morningside Heights today at Columbia, and she ventured inside to meet with the university’s president and Jewish students earlier today.

“People need to find their humanity,” she said in a video there posted to social media, condemning the acts of antisemitism on the campus while reaffirming her support for free expression.

But there wasn’t much she could do, either, even as some Republicans called for the National Guard to be sent in.

“It's an issue that's hard to place it at the feet of elected officials, and the reason is that they don't have any law enforcement power, like to stop rallies, because that would curb freedom of speech,” former Gov. David Paterson told Playbook.

Paterson didn’t think there was anything he would’ve done particularly differently.

“What can they do? They can bloviate, which is what they're gonna do,” Sheinkopf added.

Reps. Adriano Espaillat, Jerrold Nadler, former Gov. Andrew Cuomo and Manhattan Borough President Mark Levine have all done that, posting statements on X on the matter.

Assemblymember Danny O’Donnell and state Sen. Cordell Cleare, whose districts include Columbia, have yet to comment.

Even if the protests are largely a political story, all eyes are on Shafik.

Earlier today, all of New York’s GOP House members signed a letter, penned by Rep. Elise Stefanik, calling on the Columbia president to resign.

“It is time for Columbia University to turn the page on this shameful chapter. This can only be done through the restoration of order and your prompt resignation,” the letter said.

“We, the undersigned members, urge you to step down immediately so that someone who will take action against this mob can step up to meet the moment this crisis demands.” — Jason Beeferman

Two lawmakers are advancing legislation that would significantly reduce the consumption of single-use plastics.

PLASTIC WASTE: New York lawmakers are expected to consider a bill in the coming weeks that would curb single-use plastic consumption.

The Packaging Reduction and Recycling Infrastructure Act, sponsored by state Sen. Pete Harckham and Assemblymember Deborah Glick, has environmental advocates coalescing around it on Earth Day today.

“As renewable energy and electric vehicles become more prevalent, fossil fuel companies are rapidly increasing plastic production — and plastic pollution — to pad their bottom lines,” Judith Enck, president of Beyond Plastics, said in a statement.

She also called on Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie to move the bill to the floor for a vote.

The goal would be to require companies to cover the cost of packaging waste while looking to reduce plastic packaging by 50 percent over 12 years — and yes, including individually wrapped cheese. — Shawn Ness

City lawmakers announced added funding for cultural and museum programs.

CULTURE CHANGE: City Hall and the City Council announced another rollback of the mayor’s budget cuts today.

Under the agreement, $22 million will be restored to the Department of Cultural Affairs over the next three fiscal years.

The bulk of the money, initially taken out of the budget as part of spending reductions announced last fall, will go toward 34 museums, zoos, botanic gardens and other cultural institutions that operate on city-owned land.

“Our people, arts, and culture are the heart and soul of New York City, and they are the cornerstone of our economic rebound,” the mayor said in a statement.

The funding restoration is part of a broader theme of Adams rolling back planned cuts in the wake of a bruising public opinion poll and revenue figures that have far outpaced City Hall’s projections — but have adhered more closely to prognostications from the Council, which has argued the reductions were never necessarily to begin with. — Joe Anuta

Trump on trial in New York

Opening statements kicked off in Donald Trump’s hush money trial.

TRUMP ON TRIAL: Opening statements wrapped up and the first witness took the stand today in former President Donald Trump’s criminal trial in Manhattan, where a newly sworn-in jury of his peers will consider charges that he falsified business records to hide hush money paid to an adult film star during his 2016 campaign.

“The defendant, Donald Trump, orchestrated a criminal scheme to corrupt the 2016 presidential election,” said Matthew Colangelo, senior counsel to Manhattan District Attorney Alvin Bragg, laying out the case his team will make in the coming weeks. “Then, he covered up that conspiracy in his business records by lying over and over and over again.”

Lead Trump defense lawyer Todd Blanche told the jury shortly afterward: “There’s nothing wrong with trying to influence the election. … It’s called democracy.”

Both attorneys mentioned a key witness in the case, former Trump fixer Michael Cohen. Colangelo preempted attacks on Cohen’s credibility, saying the defense seeks to undermine his testimony “precisely because it is so damning.” Blanche, meanwhile, said Cohen “has talked extensively about his desire to see President Trump go to prison.”

The first witness to take the stand, however, was David Pecker, the former publisher of the National Enquirer's parent company who once was close to Trump.

Pecker gave mostly biographical information before court adjourned for the day, but he is set to return Tuesday to discuss the tabloid’s role in the alleged “catch and kill” process that buried negative stories about Trump. — Emily Ngo

New York’s congressional GOP delegation sent a letter to Columbia President Minouche Shafik today accusing her of taking too long to order the NYPD to clear a pro-Palestinian encampment.

COLUMBIA PRESIDENT UNDER FIRE: Columbia President Minouche Shafik is increasingly facing calls for her resignation as the encampment of pro-Palestinian students entered its sixth day.

New York’s congressional Republican delegation — led by Rep. Elise Stefanik — who called for Shafik to step down yesterday — sent a letter to Shafik today accusing her of taking too long to order the NYPD to clear the encampment. Shafik last week instructed the police to enter campus, and officers arrested over 100 people.

The lawmakers expressed dismay over the fact that the encampment was “shockingly” allowed to reassemble and that the NYPD has not been allowed to come back. The representatives blasted Shafik over a “continued lax enforcement of policy” as well as incidents of “despicable antisemitic harassment.”

“While the rot is systemic, the responsibility rests squarely on your shoulders,” the lawmakers wrote. “It is time for Columbia University to turn the page on this shameful chapter. This can only be done through the restoration of order and your prompt resignation.” — Madina Touré and Irie Sentner 

NYSERDA president Doreen Harris joined Albany-area politicians to discuss the investments into solar energy for low-income communities.

MAJOR WIND WOES: New York’s offshore wind aspirations suffered a big blow last week as the state announced three projects and two major new factories aren’t moving forward. The projects were relying on a new, larger turbine promised by GE Vernova, which pivoted to focus on a smaller, more proven technology.

The three offshore wind projects — two of which were expected to be fully operational by 2030 — would have provided 6.6 percent of the electricity New York needs in 2030.

With the cancellations, New York only has less than 57 percent of the forecasted 2030 load under contract or operational. That’s even less than what the state touted in 2022. Now it’s uncertain whether the three projects can be revived in the short term or whether other developers will try to fill the gaping void.

The irony of GE’s troubles was that it was supposed to be a panacea for the offshore wind industry’s supply chain issues. The company proposed building two factories along the Hudson River in the Albany area to make blades and nacelles — the inner guts of the turbine that transform the energy from the spinning blades into electricity.

But GE couldn’t deliver the larger turbine, so the company wanted the three wind developers to buy more smaller turbines. That blew up the balance sheet for the wind projects because each extra turbine would require massive underwater foundations, more labor and availability of specialized ships, which are already scarce.

“New York was clearly swinging for the fences here in trying to secure a really marquee manufacturing facility,” said Fred Zalcman, head of the New York Offshore Wind Association. “The bids were so tethered to the GE turbine play that when that aspect of the project fell apart, it really had some significant ripple effects.” — Marie J. French and Ry Rivard

SOLAR FOR ALL, EVEN THE RESERVOIRS: New York will get nearly $250 million to expand access to solar energy for low-income residents. NYSERDA got the grant — the largest for a single state — on Monday from the Environmental Protection Agency.

“That’s going to help us on the low-income deployment side which is really good,” said NYSERDA president and CEO Doreen Harris.

NYSERDA had applied for $400 million. Final agreements between NYSERDA and the federal government are expected by the summer, after which the authority will work on details of implementing the funding over five years.

Some of the money will go to New York City to support a program aimed at providing solar to 5,000 households. Support for affordable housing is also planned. About half of the funding was expected to go toward single-family residential homes, according to NYSERDA staff’s presentation to the authority’s board last year.

Harris on Monday — Earth Day — also highlighted progress on a municipally-owned floating solar array in Cohoes at a reservoir there.

She joined by Cohoes officials, interim Department of Environmental Conservation Commissioner Sean Mahar, Rep. Paul Tonko and Assemblymember John McDonald at the “groundbreaking” for the project that has been years in the making. The 3.2 megawatt solar project will eliminate the city’s $500,000 annual electricity costs, said Cohoes Mayor Brian Keeler.

Officials touted the project — which will cost about $8 million and get more than $7.4 million in state, federal and utility support — as an example for other local governments across the state and the nation. “Sometimes the solutions you’re looking for are right next door,” McDonald said. — Marie J. French

— Most New Yorkers believe former President Donald Trump’s trial is legitimate. (State of Politics)

— Drivers are getting creative in fare and toll evasion on the Thruway. (LoHud)

Facing a record housing shortage, New York Democrats finally took action to address the problem. (POLITICO)

All Talk Marge

Like David, I’m still not clear that we have a satisfying explanation of just why the last week on Capitol...

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