FINANCE

NEW YORK — Mayor Eric Adams told state lawmakers Tuesday that New York City faces an unsustainable fiscal crisis driven by the asylum-seeker humanitarian emergency, requesting the state increase its financial commitment to cover at least 50 percent of migrant costs rather than the current 28 percent reimbursement rate. Testifying before joint Senate Finance and Assembly Ways and Means committees, Adams reported that NYC has provided care for 173,900 asylum-seekers over 22 months, with 107,000 (60 percent) helped toward self-sufficiency. The city currently has 66,000 asylum-seekers in care, receiving 2,500 to 4,000 new arrivals weekly. Adams said the city faces a $600 million fiscal year 2025 gap partly due to the state falling $400 million short of its one-third cost-sharing commitment on the $10.6 billion in total migrant costs. The mayor said NYC submitted $1.2 billion in invoices for asylum-seeker expenses but receives reimbursement for only 28 percent of submitted costs. The federal government has committed just $156 million, mostly unreceived. Adams said he made 10 trips to Washington seeking federal assistance but concluded "the federal cavalry was not coming to the rescue." Adams also sought state support for extending mayoral control of schools, noting that reading and math test scores have improved and outpaced the state under his administration. He requested authority to close illegal smoke shops within 30 days and proposed state partnership on housing policy, including potential property tax abatement for co-ops facing steep compliance costs under Local Law 97. Sen. Luis Sepúlveda, chair of the Senate Committee on Cities, pressed Adams on property tax reform, expressing his belief that the city will lose the pending Tax Equity Now case at the Court of Appeals. Sepúlveda urged the administration to prepare for compliance with a potential adverse ruling. Assemblyman Michael Reilly, ranking minority member on the Cities Committee, pressed Adams on whether he would issue an executive order suspending the city's sanctuary law to allow NYPD cooperation with federal ICE agents for individuals charged with felonies. Adams said the City Council passed the sanctuary law and would need to modify it, though he indicated his legal team is reviewing whether executive authority exists to cooperate with ICE on serious crimes. The hearing, held February 6 in Albany, was the eighth in a series of joint legislative budget hearings on the Governor's 2024-2025 Executive Budget proposal. NEW YORK CITY MAYOR ERIC ADAMS testified before the Senate Finance Committee on Tuesday regarding the 2024-2025 Executive Budget, defending his administration's handling of the migrant crisis while requesting increased state funding and calling for federal immigration reform. Adams told the committee that migrant and asylum-seeker services are costing the city $4.2 billion this year and will cost $4.9 billion next year. He outlined a pilot program using prepaid debit cards instead of food delivery services for 500 migrants, projecting $6.7 million in annual savings. The mayor said the city is bearing 70 percent of the migrant burden while the state was supposed to cover one-third under an agreement made in Albany. Sen. Simcha Felder (D-Brooklyn) engaged in a pointed exchange with Adams over the adequacy of the state's $2.4 billion supplemental aid commitment, noting that only $1.1 billion represents new funding. Budget Director Jacques Jiha clarified that the remainder was already budgeted for existing facilities. Sen. Andrew Borrello (R-Batavia) challenged Adams on sanctuary city policy, arguing it acts as a "welcome mat" and that the root cause of the crisis is federal border security failures. Adams countered that people come to New York because "we're the greatest city on the globe," not because of sanctuary status, and called for comprehensive federal immigration reform. On other issues, Adams faced criticism from Assemblymember Daniel Mamdani over the city's failure to meet state-mandated bus lane construction requirements—building only 12.9 miles of the required 20 miles in 2022 and 7.8 miles of the required 30 miles in 2023. Mamdani cited a Citizens Budget Commission report showing that a 15 percent increase in bus speeds would save the MTA $260 million annually. Sen. Brad Hoylman-Sigal (D-Manhattan) pressed Adams on planned $1.2 billion in budget cuts despite the state aid, asking whether all cuts would be restored. Adams said the city would continue efforts to prevent cuts but acknowledged "we're long out of the woods" on the fiscal crisis. On special education, Sen. Felder praised Adams' personal commitment to students with learning disabilities but urged action on a federal judge's order for 40 reforms. Adams said the administration added $490 million to special education but acknowledged the real need is about $1 billion. Adams also addressed retail theft, housing policy, cannabis enforcement, and social media's impact on youth mental health. The hearing reflected deep divisions between Republican and Democratic legislators on immigration policy while showing broad agreement on the need for more state and federal resources for the city. NEW YORK — NYC Mayor Eric Adams defended his administration's education record and federal immigration policy during a joint legislative hearing on the 2024-2025 executive budget, facing pointed questions from state lawmakers on mayoral control, the migrant crisis, and public safety. Adams cited dramatic improvements in school performance under mayoral control, noting the graduation rate has climbed from 50% to 80% and the city is outpacing the state in reading and math. When pressed by Sen. Robert Jackson about a hearing where 60 people spoke against mayoral control, Adams countered that with nearly a million students in the system, the sample size was unrepresentative and that "the most passionate about being against something is normally those who come out the most." On immigration, Adams faced aggressive questioning from Republican Sen. Tom O'Mara and Assemblymember Tannousis over the city's sanctuary city status and the migrant crisis. Adams estimated the crisis will cost NYC $4 billion this year while the federal government has provided only $157 million in support. He rejected calls to reverse sanctuary city policy or deploy the National Guard to the southern border, arguing the federal government must solve the national crisis rather than cities bearing the burden. "I cannot solve a national crisis," Adams said. "The national government needs to solve that crisis." Sen. John Liu pressed Adams on how much of the requested $19 billion in additional borrowing authority would fund class size reduction, a decades-old problem now fully funded through Foundation Aid. Budget Director Jacques Jiha committed to providing detailed briefings on the allocation but did not immediately answer. Adams also fielded questions on Fair Fares expansion, 5G infrastructure, congestion pricing, and NYPD resources. He pledged to comply with state law requiring class size reduction and said the city has put $20 million into the $75 million annual Fair Fares program. The hearing, held before the joint Finance and Ways and Means committees, revealed significant disagreement between the Mayor and some lawmakers on immigration policy and education governance, while drawing praise from others for the administration's responsiveness. NEW YORK — New York City Mayor Eric Adams and five upstate mayors testified before the Joint Legislative Budget Committee on Tuesday, painting a stark picture of municipal fiscal crises driven by frozen state aid, expiring federal stimulus, and unfunded mandates. Mayor Adams defended the city's $2.4 billion spending on asylum seekers, arguing that migrants receive fewer benefits than long-term New Yorkers and that allowing them to work would be "a game-changer" for the city facing severe labor shortages. He also highlighted the loss of $900 million in federal stimulus funding, with $700 million specifically for education programs like 3-K and Summer Rising. But the most pointed testimony came from upstate mayors, who delivered a unified message: the state's 12-to-15-year freeze on Aid and Incentives for Municipalities (AIM) funding is crippling cities. Buffalo Mayor Byron Brown said AIM has not increased since 2012. Syracuse Mayor Ben Walsh noted it has been frozen for 15 years. Yonkers Mayor Mike Spano warned that health insurance costs alone will consume 6 percent of his city's property tax levy this year, while his city ranks 282nd statewide in per-pupil education funding despite having the state's highest cost of living. Rochester Mayor Malik Evans made perhaps the most urgent appeal, declaring that his city contains three of the state's five poorest zip codes and has a childhood poverty rate approaching 50 percent. He credited the state-funded Gun Violence Elimination program with reducing homicides by 34 percent and urged continued investment in prevention and workforce development. Sen. Liz Krueger, the Finance Committee chair, raised concerns about hospital closures, noting that if Mount Sinai Beth Israel closes, Bellevue estimates it will need $150 million more annually. She also pressed Adams on climate funding, noting the city plans to spend $829 million on climate adaptation but faces a $52 billion seawall bill. The hearing underscored a central tension in New York's budget: cities are losing federal support and state aid while facing rising costs for services, from snow removal to healthcare to education. The mayors' unified call for AIM restoration signals a likely flashpoint in budget negotiations. Five upstate mayors testified before a joint Senate-Assembly Finance Committee hearing on the 2024-2025 state budget on Tuesday, painting a stark picture of municipal infrastructure crises and calling for immediate state aid increases, particularly through reformed versions of the Aid and Incentives for Municipalities (AIM) program. Mayors from Buffalo, Rochester, Syracuse, Albany, and Yonkers detailed hundreds of millions of dollars in unfunded needs, from lead pipe replacement to water main breaks to school repairs. Mayor Byron Brown of Buffalo stated that replacing all lead lines in his city would cost approximately $500 million, while Mayor Mike Spano of Yonkers said his city alone needs $10 million just to create a list of 30,000 residents with lead pipes before addressing replacement. The mayors emphasized that infrastructure costs are accelerating due to climate change and aging systems. Mayor Malik Evans of Rochester described a catastrophic water main break two years ago that disrupted service to nearly half the city, and noted that extreme weather swings are straining critical infrastructure. On affordable housing, the mayors highlighted a paradox: restrictive inclusionary zoning policies and limited financing tools are preventing mixed-income development. Mayor Kathy Sheehan of Albany reported that after her city council raised affordable housing requirements, "I have not had a single market-rate project proposed in my city." Mayor Ben Walsh of Syracuse advocated for flexible financing tools and noted that federal low-income housing tax credits actually prohibit mixing market-rate units with affordable housing. Senators pressed the mayors on specific funding needs and creative solutions. Sen. Rachel May asked about alternative approaches to AIM funding, noting that "every year the Governor shoots it down." Several legislators suggested rebranding AIM to overcome political obstacles. Sen. Martinez asked mayors to provide specific dollar figures rather than general requests for aid. The mayors also discussed gun violence prevention, with Mayor Evans describing preventative programs including workforce development and mental health supports in libraries and recreation centers. Sen. Samra Brouk referenced her office's report linking Rochester's underfunding to rising violence rates. The hearing underscored tensions between municipal needs and state budget constraints, with mayors emphasizing urgency while legislators sought concrete proposals and specific funding amounts. New York State legislators heard urgent pleas from five upstate mayors and New York City's comptroller on Tuesday for increased state funding and support to address a cascade of municipal crises, from asylum-seeker costs to crumbling infrastructure and inadequate education funding. At a joint legislative hearing on the 2024-2025 Executive Budget, mayors from Rochester, Buffalo, Syracuse, Albany, and Yonkers painted a stark picture of cities struggling with unfunded mandates and declining state aid. The most contentious issue centered on asylum-seekers: New York City has received over 170,000 asylum-seekers and has sent roughly 800 to Albany, a couple hundred to Rochester, and filled a 100-family hotel in Yonkers—all without advance notice or adequate state compensation, the mayors said. "New York City kind of sprung this on us without any plan, without any funding," Yonkers Mayor Mike Spano testified, noting the city lost tens of thousands in hotel occupancy tax revenue because NYC uses a tax exemption. But the asylum-seeker crisis was just one of several funding emergencies. Buffalo Mayor Byron Brown presented a bombshell claim: if the state had followed its original county sales tax distribution formula since 1986, Buffalo would have received an additional $1.2 billion. The formula was changed in 1985 as a temporary measure to help Erie County during a fiscal crisis—and was never adjusted. On lead service line replacement, Buffalo has replaced 3,000 lines but estimates 40,000 remain, at a cost of roughly $500 million. Rochester aims to replace all lines by 2030 but says current funding is "astronomical" and insufficient. The mayors also hammered the state on Aid and Incentives for Municipalities (AIM), which has been frozen for years. Albany Mayor Kathy Sheehan noted that if AIM had kept pace with inflation, it would be 32 percent higher. Spano calculated that if AIM had received just 2 percent annual increases—matching the state spending cap under former Governor Cuomo—Yonkers would have received an additional $25 million per year. Sen. Liz Krueger (D-Manhattan), the committee chair, suggested the Legislature work with mayors to redefine eight housing funding streams totaling $650 million to better serve upstate cities. "Maybe one of the things we can work with you on during the budget process is some redefinition of some of these programs," she said. NYC Comptroller Brad Lander testified separately, requesting state help on multiple fronts: restoring $130 million in Foundation Aid cuts, providing $250 million in emergency affordable housing preservation funds, and passing the CUNY Repair Act to require Columbia and NYU to pay more in property taxes (they currently receive $342 million in exemptions annually). On crime, Rochester Mayor Malik Evans reported success with the JEDS program targeting youth auto thieves, which produced a "precipitous decline" in repeat offenders after the city led the state in car thefts last year. Syracuse Mayor Ben Walsh and Spano discussed organized retail theft, with Spano noting that when word spread that shoplifting under $1,000 wouldn't be prosecuted, people began stealing exactly that amount. Sen. Andrew Rhoads (R-Batavia) pressed mayors on whether NYC is compensating them for asylum-seeker costs. "The city's dropping these individuals on your doorstep and is not giving you" funding, he said, highlighting that NYC received $1 billion in state funding last year and is seeking $2.4 billion more this year. The hearing underscored a fundamental tension: upstate cities say they are shouldering costs—from asylum-seekers to aging infrastructure—while state aid has stagnated or declined. Legislators signaled openness to working with mayors on solutions, but concrete commitments remained elusive as the budget process unfolds. NEW YORK — NYC Council Speaker Adrienne Adams and Comptroller Brad Lander testified before the State Senate Finance Committee on Tuesday regarding the Governor's 2024-2025 Executive Budget, presenting a detailed fiscal roadmap that emphasized housing, homelessness, education, and the ongoing migrant crisis as the city's most pressing budget challenges. Speaker Adams outlined the city's housing priorities, calling for state funding to eliminate barriers to development, including legislation to enable commercial-to-residential conversions and new financial incentive programs for affordable housing. She also requested state funding for rental assistance programs, warning that without StateFHEPS voucher support, the city faces an unfunded $198.8 million mandate. The speaker noted that over 100,000 students in temporary housing are straining school resources and called for Foundation Aid formula adjustments to reflect current inflation rates rather than historical averages. Comptroller Lander provided detailed fiscal analysis, noting that migrant numbers have peaked at 69,000 and currently stand at 67,000, with uncertainty about future trends. He supported the Governor's proposed $12 billion TFA bond increase over two years—less than the mayor's $19.6 billion request—while emphasizing the need to maintain debt service below 15 percent of the operating budget. Lander outlined a comprehensive property tax reform plan that would establish uniform tax rates across neighborhoods, addressing what he called a fundamental fairness issue where South Bronx residents pay three to four times the effective tax rate of affluent areas. The comptroller also disclosed that the city spent $432 million on a contract with DocGo, a medical staffing company with no asylum-seeker experience, through emergency procurement procedures. He defended a $53 million pilot program providing prepaid cards to migrants, characterizing it as a cost-effective alternative to institutional food services. Senator Sepúlveda pressed both officials on property tax reform, expressing frustration with the lack of concrete action despite years of advocacy. He also questioned the prepaid card program's effectiveness. Senator Weik challenged the apparent contradiction between the city's claims of fiscal distress and its spending on migrant services, asking pointedly where the $53 million was coming from and receiving confirmation it came from taxpayer dollars. Assemblyman Braunstein focused on education funding, noting the city faces a $700 million loss in stimulus funding and questioning whether state increases were being used to offset city contributions. He also discussed the 3-K program, which costs $760 million in FY '24 and is expected to drop to $509 million in FY '25 due to federal stimulus expiration. The hearing underscored persistent tensions between state and city over cost-sharing, with NYC officials seeking greater state support for housing, education, and asylum-seeker services while legislators questioned whether the city was adequately prioritizing these investments with existing resources. NEW YORK CITY OFFICIALS AND UPSTATE MAYORS CLASH WITH LAWMAKERS OVER BUDGET PRIORITIES AT JOINT LEGISLATIVE HEARING New York City Comptroller Brad Lander and Council Speaker Adrienne Adams faced pointed questioning from state senators over the city's $4 billion spending on migrant services and its impact on core municipal services, during a joint Senate-Assembly Finance Committee hearing on the 2024-2025 executive budget on Tuesday. Sen. Rhoads pressed Lander on the city's projected $5 billion deficit for the following fiscal year, arguing that massive migrant spending was driving cuts to NYPD, FDNY, and libraries—including closing libraries on Sundays. Lander countered that the current fiscal year and preliminary FY25 budgets are balanced, and that without the right-to-shelter law, "we would have tens of thousands of people sleeping on the streets of our city." The comptroller also highlighted contract oversight improvements, including revocation of blanket prior approvals and quarterly reporting on emergency procurements. He cited a problematic hotel contractor arrangement where the vendor receives $170 per night per room regardless of actual hotel cost, creating perverse incentives. On housing affordability, Lander criticized the 421-a tax exemption program, noting that 130 percent AMI rental units created in the last four years were only affordable to the wealthiest 25 percent of city residents, yet still received full 35-year tax exemptions. He advocated for targeted vouchers for vulnerable populations instead. Meanwhile, Chairwoman Lois Krueger raised concerns about cumulative property tax abatements for housing and energy upgrades, questioning whether the city and state have adequately analyzed the fiscal impact of these incentives. Upstate mayors, represented by New York State Conference of Mayors Executive Director Barbara Van Epps, made a unified plea for restoration of AIM (Aid and Incentives for Municipalities) funding, eliminated 15 years ago. Van Epps noted that costs have risen 43 percent since AIM's elimination, and mayors are willing to accept a 10-15 percent increase tied to specific priorities like public safety or housing. She also flagged concerns about proposed cuts to CHIPS ($60 million) and Touring Routes ($40 million) programs. The hearing underscored deep tensions between city and state priorities, with lawmakers grappling with competing demands for migrant services, municipal aid, CUNY funding, and infrastructure investment. Local government officials testified before the New York State Legislature's joint Finance Committee hearing on February 6, 2024, urging lawmakers to restore funding cuts and address long-standing unfunded mandates in the Governor's 2024-2025 Executive Budget. Steven Acquario, executive director of the New York Association of Counties, requested $625 million in Medicaid funds that were intercepted by the state in 2023, funds previously dedicated to county governments for services to vulnerable populations. He also warned that expanding the number of Supreme Court judges without a fiscal plan would cost counties an estimated $240 million. Acquario noted that counties collectively send $6 billion annually to the state from local taxes for Medicaid alone, and spend $14 billion total for state-mandated programs and services. Gerry Geist, executive director of the Association of Towns, made an emotional plea for the first Aid and Incentives for Municipalities (AIM) increase in 15 years, arguing that towns operating under a tax cap face rising costs for salaries, pensions, and services. He emphasized that 85 percent of roads statewide are maintained by towns, which now stretch maintenance cycles from every 10 years to every 20 years due to lack of funding. Geist also requested restoration of CHIPS (Consolidated Highway Improvement Program) funding, which he said the Governor's budget cuts despite claiming it remains flat. Barbara Van Epps, president of the New York Conference of Mayors and Municipal Officials, expressed concern that the state's rationale for denying AIM increases—that local governments are in strong financial footing—penalizes municipalities for responsible fiscal management. She noted that ARPA funds have expired and sales tax revenue is flattening. Van Epps supported the Governor's proposals on short-term rental taxation and in rem foreclosure relief, and urged making permanent the authority for fire departments and ambulance services to charge nonresidents for services, which is set to sunset. Sen. Rachel May pressed testifiers on how they plan to address concentrated poverty, noting Syracuse ranks second nationally for child poverty and that only 1 percent of buildable land outside Syracuse in Onondaga County is zoned for multifamily housing. Testifiers responded that comprehensive planning involving infrastructure, education, and incentives—rather than state zoning mandates—could address the issue. Sen. John Rhoads, a former county legislator and volunteer firefighter, asked testifiers to identify their three most significant unfunded mandates. Acquario cited Medicaid, child welfare, preschool special education, Early Intervention, indigent defense, and the safety net program as top burdens on counties. Assemblyman Fred Thiele signaled openness to creative solutions on AIM, suggesting a possible phase-in approach similar to Foundation Aid increases. He also flagged the shared-services program elimination, noting that projects already in the pipeline should receive committed funding. NEW YORK — Local government officials and election administrators testified before the Joint Legislative Finance Committee on Tuesday, urging lawmakers to fully fund critical infrastructure and election administration needs in the 2024-2025 state budget, while warning of mounting unfunded mandates threatening municipal operations. Representatives from the state's towns, villages, and counties painted a dire picture of fiscal strain, with Justice Courts, town clerk offices, and building departments operating without adequate state support despite rising costs. The Association of Towns, Association of Villages, and Association of Counties collectively warned that prevailing wage expansions, low procurement thresholds, and insufficient CHIPS road repair funding are creating unsustainable burdens. "It's really, truly an unfunded mandate because we don't get a lot of money to basically represent the state in running those court systems," said Gerry Geist of the Association of Towns, referring to Justice Courts. The CHIPS program emerged as a particular flashpoint, with local officials emphasizing its critical importance to towns with limited budgets. Steve Acquario of the Association of Counties called CHIPS "the most successful program that encompasses the 1,605 local governments in the history of the state" and urged lawmakers to double its funding. Sen. Tom O'Mara (R-58th District) demonstrated strong support for CHIPS, noting that many towns in his district rely entirely on CHIPS funding for road maintenance. "I don't see any more fairly distributed program in the state," he said, praising the program's per-lane-mile allocation formula. On elections, the New York State Election Commissioners Association requested $10 million in additional Aid to Localities funding to hire temporary workers for the 2024 presidential election, which will bring a surge in voters returning to in-person voting after 2020's mail-heavy turnout. The association also applauded Governor Hochul's $14 million allocation for replacing aging electronic poll books, which will no longer be supported by Apple's iOS 18. Election advocates and the Brennan Center for Justice testified strongly in support of the Governor's $114.5 million allocation for the Public Campaign Finance Program, citing data showing that 200 of New York's wealthiest residents contributed $16 million to 2022 state elections, while over 200,000 New Yorkers donating $250 or less contributed $13 million. Joanna Zdanys of the Brennan Center called the program "the strongest response we've seen enacted anywhere in the country to counter the distorting influence of unlimited wealth in our politics." The League of Women Voters requested a minimum of $10 million in additional funding for county boards of elections to handle the increased workload of the 2024 election cycle, noting that misinformation and threats to election workers have increased significantly since 2020. Sen. May raised concerns about ballot access, questioning whether petitioning requirements remain practical and suggesting lawmakers consider alternative methods such as filing fees or online petitioning. He also criticized a county legislature's decision to spend six figures challenging the law moving county and town elections to even years, calling it a poor use of taxpayer money.