FINANCE

NEW YORK — Mayor Eric Adams told state lawmakers Wednesday that New York City faces a fiscal crisis if the Governor's 2023-2024 budget is enacted as proposed, warning that cost-shifts and cuts totaling more than $1 billion annually would force the city to make "difficult choices" on schools, transit, and services. Testifying before joint fiscal committees of the Legislature, Adams highlighted three areas of particular concern: a proposed $526 million annual increase in MTA contributions (rising to $540 million yearly thereafter); a $343 million Medicaid cut; and the potential $1 billion cost of expanding the charter school cap. He also emphasized the asylum-seeker crisis, with the city expecting to spend $4 billion by mid-2024, and said state and federal support falls far short of need. "We are at the breaking point," Adams said, noting the city already contributes $2.4 billion annually to the MTA and receives zero Aid to Municipalities while other localities receive their share. The mayor praised Governor Hochul's budget for investments in affordable housing, public safety, and mental health, and expressed support for several proposals including basement apartment legalization and office-to-housing conversion. But he argued the burden of funding state obligations should not fall on New York City alone. State senators raised pointed questions about fairness. Sen. Robert Jackson noted that New York City is the only municipality required to pay the locality share of Medicaid and questioned whether the city is "the Federal Reserve Bank." Sen. John C. Liu opposed the charter cap expansion and noted that the Legislature has already provided $600 million in additional Foundation Aid, with another $600 million coming this year. Assemblyman Edward Braunstein pressed Adams on whether the city should share some burden of the MTA's $600 million deficit for 2023, $1.2 billion for 2024, and $1.6 billion for 2026. Adams countered that the state's one-time $300 million contribution pales compared to the permanent $540 million annual cost-shift to the city. Other mayors from Syracuse, Yonkers, Rochester, and Albany also testified, though details of their testimony were not included in the hearing record. The hearing was the eighth in a series of joint fiscal committee hearings on the Governor's proposed budget. NEW YORK — Mayor Eric Adams faced intense questioning from state legislators on Wednesday over New York City's fiscal crisis, driven largely by the migrant influx and what he characterized as unfair cost-shifts from the state budget. Testifying before a joint legislative committee on the 2023-2024 executive budget, Adams warned that the city faces a $4 billion budget gap and will hit a fiscal cliff in 2025 without relief. The Mayor's most pointed criticism centered on proposed MTA funding requirements. Budget Director Jacques Jiha detailed that the state is asking the city to pay an additional $500 million annually in perpetuity for Fair Fares, paratransit, and Student MetroCards—services historically shared across the MTA region. "The city is the only locality around the entire region that is asked to contribute half a billion dollars in perpetuity," Jiha testified. City residents already contribute 68.5 percent of all MTA revenues while the city pays $2.3 billion annually, Adams noted. Adams also highlighted the migrant crisis burden. The city has absorbed nearly 47,000 asylum-seekers and over 11,000 children in its school system, yet has received no federal financial assistance despite a year of crisis response. "What we're doing in New York City is not being done anywhere else in the country," Adams said, citing meals, healthcare, education, and mental health support provided to migrants. Senators raised concerns across multiple policy areas. Sen. Rachel May (D-Syracuse) sought partnership on waste reduction and watershed protection, citing threats from PFOS contamination. Sen. Leroy Comrie (D-Queens), chair of the Corporations Committee, pledged to work with the Mayor on alternative MTA revenue sources, opposing the proposed cost-shift. Sen. Cleare (D-Manhattan) raised alarm over the exodus of nearly 200,000 Black residents from the city over the past decade, questioning whether the Mayor's housing plan adequately addresses racial equity and displacement. On public safety, Chief Counsel Brendan McGuire presented data showing that 9,000 extreme recidivists—just 8 percent of all defendants arrested in 2022—were responsible for 56 percent of felony burglaries and over 30 percent of assaults and robberies. These offenders are eight times more likely to fail to appear in court. Assemblyman Carroll pressed Adams on literacy education, urging him to ban "3-Cueing" curricula and support evidence-based literacy instruction. Adams pledged partnership, saying "evidence-based must be the way we must go." Sen. Martinez, chair of Local Governments, sought to clarify rumors that the city was considering Nassau Coliseum for migrant housing. Adams denied the proposal had reached his desk, emphasizing the need for a statewide decompression strategy rather than placing the burden solely on New York City. NEW YORK — Mayor Eric Adams faced pointed questioning from state legislators on Wednesday over the city's budget crisis, with particular scrutiny focused on how the state is calculating its financial obligations to New York City for migrant shelter costs and MTA funding. During a joint legislative hearing on the 2023-2024 executive budget, Senate Finance Committee Chair Liz Krueger challenged the administration's math on state reimbursements, suggesting the state is providing far less than the promised 29 percent of shelter costs. "I think we're giving you much less," Krueger told the mayor, requesting detailed analysis of the true percentage. Budget Director Jiha acknowledged the city faces a $3 billion budget gap after the state's $1 billion migrant shelter proposal, with only two months to balance fiscal years 2023 and 2024. Adams argued forcefully that MTA funding should be a statewide responsibility, not borne primarily by New York City. "It is unbelievable for the New York City electeds to be told that we're going to take a half a billion dollars out of only New York City's budget," he said. "MTA is a statewide obligation." The hearing also revealed significant challenges in social services. Assemblywoman Catalina Cruz González-Rojas cited data showing that only 60 percent of SNAP food stamp applications were processed within the required 30-day window in fiscal year 2022, down from 92 percent in the previous administration. The city received 50,000 SNAP applications in October 2022 alone, a 60 percent increase from October 2019. Adams acknowledged the problem was "unacceptable" and blamed antiquated processing methods, saying his administration is implementing technology upgrades and recruiting staff. He noted the city has approximately 27,000 vacant jobs while some areas face double-digit unemployment. On public safety, Adams reported the city has removed 7,000 guns from streets and decreased shootings and homicides by double digits. Deputy Mayor Wright described a comprehensive gun violence strategy targeting six precincts that account for 30 percent of the city's gun violence, predominantly in the Bronx and Brooklyn. Assemblyman Mamdani pressed Adams on rent stabilization, asking whether he would freeze rents as his predecessor did in 2015, 2016, 2020, and 2021. Adams declined, saying he appoints board members to act independently and does not interfere with their decisions. The hearing also touched on charter school expansion, with Krueger noting the governor's proposal would cost the city $1.3 billion annually, and on infrastructure needs including sewer system upgrades and flood mitigation. NEW YORK — Major city mayors testified before the joint Senate and Assembly Finance committees on Wednesday, presenting their 2023-2024 budget priorities and expressing concerns about healthcare costs, public safety, housing shortages, and inadequate state aid. New York City Mayor Eric Adams faced pointed questioning from Chairwoman Weinstein about the city's plan to shift retirees to Medicare Advantage plans, with some facing additional monthly costs of $191. Adams said the city remains committed to finding healthcare savings without reducing benefits, noting that two RFPs are currently under review and negotiations with unions continue. He emphasized his commitment to retirees, stating: "I'm a retired cop, and I'm not going to do anything that's going to endanger the ability of those who are on a fixed income." Syracuse Mayor Ben Walsh reported significant progress, noting the city's population is growing for the first time in 70 years, driven by Micron's major investment. Walsh outlined priorities including violence interruption, affordable housing through a new Housing Trust Fund, and Vision Zero traffic safety initiatives. He reported that overall crime rose 10 percent in 2022, though homicides fell 38 percent. Walsh also addressed the contentious housing compact proposal, saying Syracuse would exceed any requirements but expressing reservations about mandates versus incentives. He noted that over 50 percent of Syracuse's land is off the tax rolls, creating a burden on municipal services. Yonkers Mayor Mike Spano highlighted a 15 percent healthcare cost increase totaling $26 million—representing 6 percent of property taxes, triple the state's 2 percent cap. He requested a $100 million block grant for school repairs and advocated for full gaming at Yonkers Raceway, requesting that the $19.5 million in host community aid be maintained as a floor. Rochester Mayor Malik Evans emphasized gun violence as the city's greatest challenge while highlighting private investment, including General Motors' $68 million manufacturing facility announcement. He requested increased AIM aid, unchanged since 2012 at $88.2 million, and $48 million annually for lead pipe replacement to achieve a lead-free city by 2030. Evans noted that three of the five poorest zip codes in New York State are in Rochester. A common theme across all testimony was the strain of unfunded mandates and inadequate state aid. Multiple mayors cited the need for increased AIM funding and expressed concerns about healthcare cost escalation. The hearing underscored tensions between state housing policy goals and local control, with mayors generally supportive of addressing housing shortages but cautious about state mandates. Three upstate mayors testified before the New York State Senate Finance Committee on February 15, 2023, making urgent pleas for increased state aid and permanent funding mechanisms to address poverty, violence, and housing crises in their cities. Rochester Mayor Malik Evans presented stark data on his city's poverty emergency, noting that Rochester contains 5 of the state's 25 poorest zip codes and 3 of the top 5 poorest nationally—a crisis he directly linked to the city's historically high homicide rates. Evans called for increased Aid to Municipalities (AIM) funding to expand youth employment programs year-round, arguing that employment keeps young people out of trouble during critical afternoon hours. Albany Mayor Kathy Sheehan requested permanent Capital City funding tied to the tax cap, emphasizing that only 36% of Albany's property is taxable due to state-owned nontaxable land, and advocated for regional approaches to affordable housing that don't concentrate poverty in formerly redlined neighborhoods. Yonkers Mayor Mike Spano noted his city has built over 12,500 housing units since 2012 but stressed that AIM funding has remained flat since 2011 despite a 30% increase in revenues flowing to the state. All three mayors supported the Governor's housing growth targets but urged incentive-based approaches rather than punitive zoning overrides. A key tension emerged around AIM funding: Assemblyman Thiele proposed linking AIM increases to housing target compliance, suggesting a $210 million boost (25-30% increase) to compensate for cost-of-living adjustments since 2009. Senators Cooney and Brouk signaled strong support for Rochester's needs, while Sen. May, chair of the Upstate Cities Committee, pressed on code enforcement capacity and regional equity in housing policy, noting that only 1% of urbanized land in the Syracuse area is zoned for multi-family housing. The hearing underscored a fundamental fiscal imbalance: upstate cities are bearing disproportionate burdens of poverty and violence while state aid mechanisms have stagnated, forcing mayors to choose between basic services and preventative investments. New York State legislators heard sharp criticism of the Governor's 2023-2024 Executive Budget from local officials and New York City leaders on Wednesday, with testimony focusing on inadequate funding for asylum-seekers, education inequities, and unsustainable cost-shifts to municipalities. NYC Council Speaker Adrienne Adams and Comptroller Brad Lander warned that the budget would cost the city nearly $1 billion annually in subsequent fiscal years through a combination of cost-shifts and revenue reductions. Most significantly, they said the Governor's $1 billion commitment to asylum-seeker shelter services only reimburses 29 cents on every dollar, while the city is on pace to spend approximately $4 billion over two years. Lander called the proposal to shift $526 million in mass transit costs to the city "both unfair and unsustainable," noting that no other county served by the MTA faces similar demands. Upstate mayors testified to persistent funding inequities. Yonkers Mayor Mike Spano said proposed changes to use 2020 Census data instead of 2000 data in education funding formulas would bring his city $13 million, though he noted that 75 percent of Yonkers children live at or below the poverty line despite the county's high median income. Rochester Mayor Malik Evans stated that three of the state's five poorest zip codes are in his city and requested AIM funding parity with peer cities, describing the adjustment as "a rounding error" that would not require taking resources from other communities. Sen. Liz Krueger raised concerns about proposed cuts to FMAP funding for counties, which would indirectly impact cities' ability to provide mental health services. Multiple mayors highlighted the mental health crisis, with Albany Mayor Kathy Sheehan describing an incident where city workers saved a woman's life after finding her attempting suicide on city streets. Assemblyman Ari Brown identified what he called "the white elephant in the room"—the Governor's housing density compact includes only $250 million for infrastructure statewide, which he said would "barely do a couple of cities, let alone the entire state." Comptroller Lander opposed the proposal to add 85 new charter schools and 20 "zombie charters," estimating the cost at $1.2 billion in additional tuition assistance and lease payments. Assemblyman Ed Braunstein questioned the basement apartment legalization proposal, asking why state law changes are needed when the city could legalize them now, and expressing concerns about circumventing the Multiple Dwellings Law's safety requirements. The hearing, held by the Senate Finance Committee and Assembly Ways and Means Committee, reflected broader tensions over how the state budget distributes resources between New York City and upstate municipalities, and between state and local governments. NEW YORK — New York City's top elected officials clashed with state budget proposals during a joint legislative hearing Wednesday, with Comptroller Brad Lander and City Council Speaker Corey Johnson expressing deep reservations about several key provisions of the 2023-2024 Executive Budget while seeking greater local input on fiscal decisions. The hearing before the Senate Finance Committee revealed significant disagreement over MTA funding, property tax policy, and housing initiatives. Comptroller Lander directly opposed the Governor's proposed MTA fare increase from $2.75 to $3, which would generate $245 million annually, calling instead for alternative revenue sources. Speaker Adams echoed that opposition, stating he would support finding the funding "anywhere we can find it elsewhere." On MTA funding more broadly, Lander proposed a compromise: directing New York City's share of casino revenue to the MTA rather than imposing new costs on the city. Both officials indicated they could "live with" that approach, though it would require the state to find additional revenue elsewhere. The officials also expressed skepticism about several housing proposals. Lander cautioned that the Governor's commercial-to-residential conversion initiative, while better than nothing, would likely result in "very few buildings" actually converting due to high costs and structural challenges. He suggested a tear-down model would be more effective. Both officials opposed a blanket four-year extension of 421-a tax abatement deadlines, with Lander arguing that most applicants simply rushed to file before the deadline rather than facing genuine hardship. On property tax reform, Lander detailed significant inequities in the system, noting that rental properties are taxed approximately 30 percent higher than condos built on the same site. He advocated for reducing the base rental property tax rate to incentivize new affordable housing construction and reviving Mitchell-Lama-style cooperative homeownership programs. Speaker Adams emphasized the need for the City Council to have a seat at the table when the state makes decisions about tax incentives and abatements affecting city finances. "We just would really appreciate being at the table and being a part of the conversation," he said. Assembly members raised concerns about speed camera expansion, basement apartment legalization costs (estimated at over $100,000 per unit), and youth employment programs. Lander supported escalating penalties for the most dangerous drivers rather than simply extracting revenue, and backed expanded summer youth employment programs. The hearing underscored tensions between state and local government over fiscal responsibility, with city officials seeking both greater autonomy and alternative funding mechanisms rather than accepting proposed cost-shifts and revenue increases. Local government officials delivered sharp criticism of Governor Hochul's 2023-2024 Executive Budget during a joint legislative hearing on Wednesday, focusing particular fire on a proposed $625 million federal Medicaid savings intercept they characterized as the largest cost-shift to local taxpayers in recent memory. Steve Acquario, representing the New York Association of Counties, testified that the Governor's plan to redirect federal Medicaid funds currently shared with counties and New York City would cost local governments $280 million and the city $345 million effective April 1, 2023—mid-fiscal year. He warned the four-year cost would reach $2.5 billion to $2.9 billion, potentially resulting in property tax increases of 7 to 14 percent by 2027. Acquario argued the proposal violates a 20-year precedent of sharing enhanced federal Medicaid matches proportionally with localities and contradicts the intent of the 2011 Medicaid statutory cap designed to protect property taxpayers. "The state is choosing to raise the counties' Medicaid cap," Acquario said, characterizing the move as an administrative action that bypasses legislative authority. "This is devolving into the old days of property taxpayers paying more and more of Medicaid. We thought we were beyond this." Peter Baynes of the New York Conference of Mayors, representing 62 cities and 530 villages, opposed the Governor's housing compact proposal as an "unprecedented intrusion" on local home-rule authority. While acknowledging the housing crisis, Baynes argued the state-mandated approach would add litigation and delay rather than solve the problem. He advocated instead for a collaborative, incentive-based approach, noting that two-thirds of his members have already pursued housing growth over the past decade. Baynes also highlighted that Aid and Incentives for Municipalities (AIM) funding has remained flat for 14 years despite a $7 billion increase in overall state spending. He urged the Legislature to restore general-purpose aid to local governments, noting that the Governor's budget merely continues existing programs without meaningful increases. Senate Finance Committee Chair Liz Krueger signaled strong support for the local government position on the Medicaid intercept, stating "I'm on your side of this" and suggesting the Legislature seek written clarification from the congressional delegation on their intent for the federal funds. She also questioned whether the state should do more to address $1.8 billion in annual tax exemptions granted by Industrial Development Authorities. Sen. Robert Martinez, chair of the Senate's Local Government Committee, pressed for details on how counties would balance budgets without service cuts if the Medicaid intercept proceeds, requesting preliminary impact estimates by county. Acquario provided figures showing impacts ranging from $2 million in Clinton County to $31 million in Suffolk County. Assemblymember Helene Weinstein's colleague Thiele engaged in detailed discussion about alternative housing incentive structures, proposing a subset AIM program tied to housing production targets as a middle ground between the Governor's mandate and the status quo. He raised concerns about the proposal's failure to address county sanitary codes and infrastructure needs, noting that not all zoning regulations are exclusionary—some protect water quality or preserve farmland. Local government officials sharply criticized the Hochul administration's 2023-2024 Executive Budget during a joint legislative Finance Committee hearing Wednesday, warning of cascading financial crises and opposing the Governor's housing mandate as unworkable. Steve Acquario of the New York State Association of Counties detailed a $625 million cut in enhanced Medicaid payments to counties, compounded by an additional $1.2 billion owed from seven years of unreconciled federal revenue sharing. He also cited $65-85 million in new costs from increased public defender hourly rates. "It's raise taxes or cut services," Acquario said. "And cutting services or raising taxes is two things that local governments don't want to do. It's a dangerous thing to be doing right now." Peter Baynes of the New York Conference of Mayors opposed the Governor's housing compact and transit-oriented development mandate as a one-size-fits-all approach that ignores local infrastructure capacity. He cited a Westchester municipality that would see a 30 percent increase in housing stock but lacks water, sewer, and emergency services capacity to support it. "I just don't think the state can have a blanket approach to all those communities," Baynes said, advocating instead for state assistance with zoning and financial incentives. Sen. Tom O'Mara (R), the committee's ranking member, engaged extensively on the Medicaid cuts, questioning what services counties could eliminate given 20 years of prior reductions. He characterized the housing mandate as "another attack on local government, local control that is the wrong direction." Sen. Rachel May (D) challenged the notion that preserving "community character" isn't code for exclusion, noting that in Syracuse, only 1 percent of land allows multifamily housing by right. She advocated for zoning reform but questioned whether state mandates or community-driven change would be more effective. Dustin Czarny of the Election Commissioners Association requested $10 million in capital funding and $10 million in Aid to Localities for county election boards, citing aging equipment—some precinct scanners are 15 years old—and staffing needs for new voter registration deadlines. He noted New York is one of fewer than 20 states without annual dedicated election funding. The hearing underscored tensions between state housing policy goals and local government capacity, with officials requesting increased state support rather than mandates. NEW YORK STATE SENATE FINANCE COMMITTEE HEARS TESTIMONY ON 2023-2024 BUDGET; CAMPAIGN FINANCE REFORM, ELECTION FUNDING DOMINATE DISCUSSION The New York State Senate Finance Committee held a joint legislative hearing on February 15, 2023, examining the 2023-2024 Executive Budget with particular focus on local government, elections administration, and campaign finance reform. Advocates for the state's newly launched Public Campaign Finance Program (PCFP) urged lawmakers to fully fund the initiative, arguing it is essential to counter the outsized influence of wealthy donors. Karen Wharton of the Fair Elections for New York Coalition cited data showing that in 2022, the 200 largest donors in New York gave nearly as much money to state candidates as 200,000 smaller donors who gave $250 or less. "If money talks, 200 people have a greater voice in our elections than 200,000," Wharton testified. "That is not democracy. That's a rigged system." Marina Pino of the Brennan Center for Justice testified that the Executive Budget meets the Public Campaign Finance Board's request for $14.5 million in administrative costs but urged lawmakers to provide additional funding beyond the Governor's proposed $25 million for matching funds. She cited data analysis showing the program could increase the financial power of small donors six-fold in legislative elections, from 11 percent of all donations to 67 percent. Election officials testified about critical infrastructure needs. Dustin Czarny, representing the New York State Association of Election Commissioners, warned that election equipment is aging dangerously, with some precinct scanners now 15 years old despite a typical lifespan of 10 years. He stated commissioners across the state are requesting additional funding for both personnel and equipment upgrades. Assemblyman Jacobson proposed $20 million in additional state funding—$10 million for personnel and $10 million for equipment—distributed to counties based on enrollment. Sen. Walczyk raised concerns about campaign finance fraud, specifically referencing Lieutenant Governor Benjamin's indictment on campaign finance bribery charges, and pressed testifiers on what policies should prevent such abuse. Testifiers responded that the PCFP includes safeguards such as candidate liaisons and well-trained agency staff to ensure compliance. The hearing also addressed contentious issues including voter identification requirements, with Sen. Rhoads challenging the position against voter ID and citing a personal example of a dead person voting in his election district. Czarny countered that voter ID has shown harmful impacts on elderly and college-age voters and that New York has very little voter fraud. Daniel Serota, representing the Nassau County Village Officials Association, strongly opposed Governor Hochul's housing plan (Parts F and G of bills S4006 and A3006), arguing it poses an unprecedented threat to local government by requiring mandatory rezoning of tens of thousands of acres without proper public hearings or community input. He requested the housing proposal be excluded from budget negotiations. The Riders Alliance testified in support of an additional $300 million in transit funding to increase bus and train frequency, arguing it would boost ridership by approximately 15 percent and improve safety for riders and transit workers. NEW YORK — A joint Assembly-Senate budget hearing on local government revealed sharp divisions over the Governor's housing density proposal and MTA funding, with local officials warning of infrastructure collapse and state lawmakers questioning whether the state should subsidize downstate transit. Funmi Akinnawonu of Immigrant ARC opened testimony by requesting $55 million to implement the Access to Representation Act, which would guarantee legal counsel for immigrants in deportation proceedings. She cited stark disparities in outcomes: immigrants with attorneys are 10.5 times more likely to avoid deportation than those without representation, and 60 percent of immigrants with lawyers win their cases compared to 17 percent without counsel. The organization also requested $35 million for immigration legal services and $10 million for rapid response services for newly arrived migrants. Mayor Serota of Brookville, representing 64 Nassau County villages, mounted a forceful challenge to the Governor's proposal to allow 50 units per acre near transit stations. He warned that North Shore communities lack sewers and face a water crisis, with contaminated wells and insufficient water supply even during normal conditions. "We don't have sewers in the majority of the areas where we live," Serota testified, arguing the proposal would devastate quality of life and bypass environmental review requirements. Sen. Rhoads amplified these concerns with detailed calculations showing the proposal would result in 1.25 million housing units around 50 Nassau County train stations alone, potentially doubling the county's population. He questioned whether the proposal should be removed from the budget process entirely. On transit funding, Mr. Pearlstein of the Riders Alliance requested $300 million above the Governor's proposed $892.2 million for the MTA, arguing the system needs $1.2 billion annually from the state. He attributed ridership decline to work-from-home patterns rather than safety concerns and said increasing service 50 percent would add 15 percent more riders. Sen. Walczyk, representing a rural upstate district, challenged the equity of the request, noting the Governor proposed only $642 million for DOT statewide. "Is it fair for upstate New York to bail out the MTA?" he asked. Pearlstein countered that downstate sends money upstate on balance and that different entities have different needs. The hearing, held Feb. 15 before the joint Finance Committee, revealed tensions between local control and state housing goals, and between regional equity and transit system needs. The committee indicated it would continue deliberations on these issues beyond the budget process.