Activism

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

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

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

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

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)

With help from Shawn Ness

New from New York

Happening now:

• Gov. Kathy Hochul may consider shorter extenders.
• A new parks attendance record thanks to the eclipse.
• Some advocates slept in the War Room.
• The Hochuls’ income in 2023 is out.

DAYS THE BUDGET IS LATE: 12

The state budget is stretching into its third week of tardiness. But there are ways the process can potentially move along: A stopgap spending bill that expires after 24 hours that could keep lawmakers in Albany and negotiating.

There’s no indication Hochul is on the verge of doing so after the current budget extender expires on Monday, and lawmakers have insisted they can reach a deal in the coming days.

Still, the idea has been at least discussed in the governor’s office, a person familiar with the conversations said.

The 24-hour tactic would be a change from Hochul’s current approach of sending budget extender bills that keep the state government funded largely timed to meeting state worker payroll each week.

Some lawmakers weren’t thrilled with the prospect — underscoring how a daily deadline could be seen as a provocative escalation in the delicate budget negotiations.

“It’s a public relations tactic that the governor should be above using,” Manhattan Democratic Assemblymember Danny O’Donnell said.

Nevertheless, some Democrats and Republicans believe such a move could help hasten the process, which has turned into a slog amid an impasse over housing policy.

“From my perspective, it’s time to get this budget done,” Hudson Valley Democratic Assemblymember Ken Zebrowski said. “Whatever moves this along, fine by me.”

Long Island Republican Assemblymember Ed Ra believes sending 24-hour extensions of spending could be an effective use of the governor’s considerable power over the budget process.

“It’s going to keep the members [in Albany], and it’s going to keep the discussion going and it’s hopefully going to move us to a conclusion,” he said.

And Bronx Assemblymember Kenny Burgos was also open to the idea: “If it’s a method which gets us to an agreeable situation, then it’s fine by me.”

Governors have leverage over lawmakers in the budget process.

In 2017, with a budget undone and a deadline about to be missed, then-Gov. Andrew Cuomo sent the Legislature a temporary spending plan that kept the state government funded for two months.

The strategy was meant to turn up the heat on lawmakers, who are not paid until a state budget is finalized. Lawmakers ultimately reached a deal days later.

New York’s top elected officials remain at odds over the details of a sweeping housing plan, which hit snags this week as dozens of Democrats in the Legislature vowed to vote down any budget that weakens tenant protections approved in 2019.

The deadlock has led to the third blown budget deadline in the last three years.

It was a discordant week at the state Capitol, with the state Senate and Assembly approving the fourth budget extension since the missed April 1 deadline on separate days while closed-door meetings between the governor and top lawmakers were held.

The state Assembly put the finishing touches on the extension measure this afternoon. With Hochul’s signature, the state government is funded until Monday.

There was a relaxed atmosphere in the Assembly chamber this afternoon as lawmakers were preparing to approve the extension bill. Some lawmakers brought their children to the chamber while others talked about their weekend plans.

For now, lawmakers have not been told definitively whether to remain in town for the weekend. — Nick Reisman and Jason Beeferman

WAR ROOM RALLY: After older adults and disabled New Yorkers spent a long night sleeping in the Capitol’s War Room, they gathered outside Hochul’s office today to protest a budget proposal to enlist a single company to handle payroll and other administrative tasks for New Yorkers who hire their own home care aides.

The New York Caring Majority, a coalition of health care advocacy groups, claim the proposal to replace hundreds of fiscal intermediaries — most of which are run by licensed home care agencies — with a single vendor under a no-bid contract would limit care options and delay payments to aides.

The consolidation is intended to reduce Medicaid spending under the consumer-directed personal assistance program, or CDPAP, which has ballooned from $6 billion in state and federal spending in 2021 to $9 billion in 2023.

“We are calling on Governor Hochul, the Assembly and Senate to work with the disability community to develop sensible and measured reforms to CDPAP in this year’s budget that target the real problems in the system and maintain the integrity of this invaluable program,” Lindsay Miller, executive director of the New York Association for Independent Living, said in a statement. — Shawn Ness and Maya Kaufman

THE FIRST FAMILY’S PAY: The Hochul family’s income soared to $1.9 million in 2023, thanks to $1.5 million First Gentleman William Hochul made from Delaware North.

William left the Buffalo-based hospitality company in August. But his pay more than doubled from the year prior — thanks to “a series of bonuses and other compensation” he received upon his departure.

While Hochul had been with the firm since 2016 and the governor set limits on her involvement in issues that impact its business, his role was widely scrutinized as the state got involved with issues like funding for a new Buffalo Bills stadium. He has been working at Manhattan law firm Davis Polk since January.

The governor made $250,000 from the state, a salary that’s set in law. — Bill Mahoney

MORE TIME: Supreme Court Justice Sonia Sotomayor this week granted former Lt. Gov. Brian Benjamin’s request for more time, reserving his right to appeal his federal bribery case to the highest court in the land.

The Harlem Democrat’s team is hoping the court uses his case to clarify government corruption under the law, but as Playbook reported Thursday, they want to wait to file until the court rules on another similar case. — Jeff Coltin

FORM-GATE LATEST: The mayor hit the airwaves this morning to defend a new policy requiring elected officials to obtain approval from City Hall’s intergovernmental affairs team before meeting with commissioners or high-level staff at agencies.

“We need to make sure that we're not being duplicative, and [make] sure that if there are other electeds in that area that want the same issue addressed, we bring everyone together,” Adams said on PIX 11.

Yet the new mandate — which applies to members of Congress, the attorney general and even the governor’s office — has been received poorly.

Public Advocate Jumaane Williams sent a letter to the mayor’s office today saying he would be ignoring the new procedure.

“This policy as designed will stymie vital interaction between government partners — preventing public service on behalf of New Yorkers in order to service a seeming need of this administration to exert further control over all government operations,” he wrote.

The form has also caused a multi-day dustup with members of the City Council at a time when the mayor needs them to approve a major administration initiative several months down the road.

On Thursday, the mayor introduced a sweeping land-use policy that would increase development across the city — a complex initiative that will require heaps of political capital to win over Council members ahead of a final vote.

Not only does irking members with additional bureaucratic barriers sap some of that capital, but the rollout reflects poorly on the administration’s ability to navigate the 51-member body.

The Council speaker — who has instructed her members to ignore the edict — said Thursday she was never told about the new protocol by the mayor’s team. (She learned about it from Playbook’s own Jeff Coltin.)

This morning, the mayor explained that faux pas by saying the policy had not actually been put in place and was leaked prematurely.

Yet by the time Adrienne Adams learned of the fiat, multiple members had already been directed to fill out the form after contacting city agencies.

“It is certainly not the way to get stuff done for people in the city of New York,” the Council speaker said Thursday. — Joe Anuta

SETTLEMENT STEPS: Implementing the terms of the right-to-shelter settlement will take time, but the city is making progress in its agreement with homeless advocates, a top Adams aide told reporters today.

As part of the stipulation, the so-called waiting rooms where migrants dozed on the floor or sitting up while they waited days and weeks in anticipation of their next shelter assignment have to close. One has closed, two remain open, Deputy Mayor Anne Williams-Isom said.

And the administration is also working on notices for migrants who may not receive additional stays in city shelters unless they prove “extenuating circumstances” — another part of the settlement — as well as training staff and creating a resource guide, she said.

“The system’s not going to turn over right away,” Williams-Isom said. “It’s going to take us a couple of days, a couple of weeks to make sure that we get that right.” — Emily Ngo

TOURISM RECORD ECLIPSED: Nearly one million people visited New York state parks from Saturday to Tuesday — a record for that stretch — and state campgrounds entirely booked for the night of the eclipse.

The state’s transportation department also saw a significant increase in vehicle traffic, and electric vehicles charged up for about twice as many miles as they did the week before.

Hochul was one of 45,000 visitors to see the eclipse at Niagara Falls State Park, but there was one notable absence in the park: Erie County Executive Mark Poloncarz, a self-described astronomy enthusiast, fled to the clearer skies of Ashtabula, Ohio for the event. — Jason Beeferman

OH, RATS: New York City’s Department of Health and Mental Hygiene is warning of a continued increase in cases of leptospirosis, a bacterial infection primarily associated with rat urine, according to an advisory sent today to health care providers.

Six cases have been reported so far this year, and 24 people were diagnosed with the disease in 2023 — more than the total number of cases reported to the Health Department in any prior year.

The city saw an average of just three cases annually between 2001 and 2020. The number has since continued to trend upwards, with most locally acquired cases reported in warmer and wetter months when the bacteria that cause the infection can more easily survive.

Symptoms may include fever, headache, vomiting, diarrhea and jaundice, the department’s advisory states. If not treated, the disease can lead to kidney failure, meningitis and liver damage. There have been six deaths among the 98 locally acquired cases of leptospirosis reported in the city from 2001 to 2023. — Maya Kaufman

DECEPTIVE ADS: Attorney General Tish James announced that her office secured over $1 million in penalties and refunds from Northwell Health, the state’s largest healthcare provider.

The company misled New Yorkers by billing residents for emergency room visits when all they had received was Covid-19 test kits, she said.

“During a time of great stress at the height of the pandemic, Northwell Health caused more worry and frustration for New Yorkers who were sent emergency room bills for simply taking a Covid-19 test,” James said in a statement.

Northwell owes more than $400,000 in refunds to about 2,000 patients, as well as $650,000 in penalties to the state.

“Northwell has cooperated fully with the Office of the New York State Attorney General throughout this investigation and voluntarily entered an agreement to settle the matter without admitting to any wrongdoing,” according to a statement from Barbara Osborn, Northwell’s vice president of public relations.

The statement also said that they voluntarily refunded patients who went to the testing sites and made out-of-pocket payments, totaling nearly $82,000.

The investigation was launched after James’ office received complaints that they had received emergency room bills after getting a Covid test. The investigation found that three separate locations posted signs in March of 2020 and 2021 for testing sites. — Shawn Ness

— City schools are urging superintendents to fight for mayoral control. (POLITICO Pro)

— A homeless man stole a FDNY fireboat, but he didn’t know how to start the engine. Instead he simply floated down the Hudson River. (Daily News)

— Michael Cohen talked about Donald Trump’s hush money case ahead of the trial starting Monday. (POLITICO)