In the News-New York State
State Budget Director to Agencies: Keep SFY2026 Spending Flat
The New York State Division of Budget sent the FY25-26 budget call letter to State agency heads this week, warning them to keep their funding requests flat for the upcoming budget cycle.
“While there is a growing consensus that the national economy is proceeding toward a ‘soft landing,’ New York’s status as the world’s financial capital makes it susceptible to a multitude of economic, geopolitical, and market risks,” State Budget Director Blake Washington wrote. “A thorough consideration of state commitments will allow the state to be better positioned to meet planned out-year spending growth, and in the event of an economic downturn, will lessen the need for potential reduction in critical services at a time when New Yorkers would otherwise be in most need of our support. To accomplish this, agency budget requests for State Fiscal Year SFY 2026 should not exceed the total SFY 2025 Enacted Budget agency funding levels, excluding one-time investments.”
In July, State Comptroller Thomas DiNapoli struck a similar tone, calling a reduction in the State out-year budget gap to $13.9 billion a “positive step” and cautioning policymakers to “maintain focus on managing with a long-term perspective…”
“…State finances will be challenged by many factors in the coming years, including concerning population and labor force trends, slowing projected economic growth, risks of revenue volatility related to the economy and looming federal and State tax policy decisions, and spending pressure from the largest State programs – Medicaid and School Aid,” Comptroller DiNapoli noted. “In this environment, State policymakers should maintain focus on managing with a long-term perspective, including ensuring the competitiveness of State tax policy, increasing transparency and use of data in budgeting, addressing spending pressure in Medicaid and School Aid, and reforming debt practices.”
Agency budgets are due no later than October 17, 2024.
Attorney General James & U.S. Attorney Peace Secure Over $17 Million From Home Health
Agencies for Cheating Workers and Defrauding Medicaid in a Landmark Wage Parity Agreement
New York Attorney General Letitia James and U.S. Attorney for the Eastern District of New York
Breon Peace this week announced agreements with two Brooklyn-based licensed home care services agencies (LHCSAs)–NAE Edison d/b/a Edison Home Health Care of New York, LLC and Assistcare Home Health Services, LLC d/b/a Preferred Home Healthcare of New York, LLC–for allegedly cheating more than 25,000 employees out of wages and benefits and defrauding Medicaid.
Under the Office of the Attorney General’s (OAG) settlement, Edison and Preferred will pay $7.5 million in unpaid wages to more than 25,000 current and former employees and pay $9.75 million to the Medicaid program. Edison and Preferred have also entered into an agreement with the United States Attorney’s Office for the Eastern District of New York (EDNY) to resolve federal Medicaid fraud liability. This settlement is the largest reached by OAG for violations of the Wage Parity Act to date.
The joint OAG and EDNY investigation found that Edison and Preferred failed to pay their home health aides the full benefits owed to them under the Wage Parity Act. Edison and Preferred used the wage parity funds required by law to benefit aides to instead purchase medical “stop loss” insurance, which is a
type of insurance that acts as a safety net for employers that are paying for their employees’ medical claims.
The joint investigation also revealed that individuals and entities related to Edison and Preferred received millions of dollars in dividend payments from this “stop loss” insurance. Edison and Preferred then continued to seek and receive payments from Medicaid for care performed by home health aides,
while falsely representing that they were in compliance with the Wage Parity Act.
In addition to repaying employees, Edison and Preferred revise company policies and procedures, train personnel on updated policies subject to OAG’s approval and regularly report staff wages and policy implementations to OAG for a period of three years. If Edison and Preferred fail to comply with these terms or properly compensate its aides, OAG has the authority to bring a civil action against the agency and demand additional damages.
New York State will receive $5.85 million of the stipulated Medicaid Program payment. The remaining $3.9 million will be paid to the federal government.
Laws of 2024
Chapter 335 – Sponsored by AM Zebrowski/Senator Ramos — Authorizes treatment of workers’ compensation injuries by an occupational therapy assistant and a physical therapist assistant.
Chapter 337 – Sponsored by AM Rajkumar/Senator Scarcella-Spanton — Provides employment protections during the performance of state active duty by members of the National Guard.
Chapter 338 – Sponsored by AM Jackson/Senator Myrie — Adds gas to the list of vital services on which NYCHA is required to publish regular updates and requires NYCHA to coordinate and work expeditiously to restore service whenever it is required to be interrupted.
Chapter 356 – Sponsored by AM Weprin/Senator Breslin — Require insurers to notify insureds upon policy issuance, renewal, or amendment whether their policy includes supplemental spousal liability coverage or, if not, the availability of such coverage.
Chapter 369 – Sponsored by AM Burgos/Senator Mayer — Allows insurers to sell business interruption insurance that is not tied to physical damage, which businesses could purchase in the event of future pandemics or other events where there may not be physical damage to the property.
Chapter 382 – Sponsored by AM Burgos/Senator Sepulveda — Establishes the COVID-19 livery vehicle recovery act providing for a one-year window for renewals of for-hire vehicle licenses that expired between March 7, 2020 and September 12, 2022.
Chapter 412 – Sponsored by AM Bores/Senator Krueger — Allows Laduree, a French Pastry House with two Manhattan locations, an exemption, with an exemption to the licensing restrictions for on-premises alcohol consumption for certain manufacturers and wholesalers of alcoholic beverages.
Chapter 413 – Sponsored by AM Braunstein/Senator Sepulveda — Extends the effectiveness of certain provisions of the Coordinated Construction Act for lower Manhattan relating to joint bidding on contracts for public work projects.
Chapter 420 – Sponsored by AM Walker/Senator Cleare — Permits pregnant women to enroll in health insurance during a special enrollment period without penalty.
Chapter 422 – Sponsored by AM Solages/Senator Hoylman-Sigal — Requires individual, small group, large group, and Article 43 health insurance plans to cover outpatient use of pasteurized donor human milk (PDHM) for infants who are medically or physically unable to receive maternal breast milk or participate in breastfeeding or whose mother is medically or physically unable to produce maternal breast milk.
Chapter 423 – Sponsored by AM Vanel/Senator Comrie — Requires all advertisements for gambling and sports betting to include warnings about the potentially harmful and addictive effects of gambling.
Chapter 424 – Sponsored by AM Hunter/Senator Persaud — Require commercial health insurance coverage of screening and diagnostic imaging, including diagnostic mammograms, breast ultrasounds, or magnetic resonance imaging, recommended by nationally recognized clinical practice guidelines for the detection of breast cancer. The act shall take effect on January 1, 2026.
In the News-New York City
Comptroller DiNapoli: Unsafe Conditions, Questionable Spending Found at Affordable NYC Housing Complexes
Unsafe conditions and over $1 million dollars in questionable spending at three affordable housing complexes show a need for greater oversight of the Mitchell-Lama program by the New York City Department of Housing Preservation and Development (HPD), according to an audit released this week by New York State Comptroller Thomas DiNapoli.
Auditors found broken fire safety doors, mold, collapsed ceilings, and pest infestations among other unsafe conditions at developments in Manhattan, Queens, and Staten Island.
“Every New Yorker deserves safe and clean affordable housing,” Comptroller DiNapoli said. “The conditions identified in this audit are unacceptable. The city needs to do a much better job overseeing the Mitchell-Lama program and ensure funding for these buildings goes toward their maintenance.”
According to the Comptroller, the Mitchell-Lama program provides affordable rental and cooperative housing to middle-income families across the state. HPD oversees 93 Mitchell-Lama developments in the city with about 46,902 apartments. The city’s Housing Development Corporation (HDC) performs physical inspections of the developments, and HPD relies on HDC reports to determine whether developments are being maintained as required.
Auditors inspected three of these developments in 2023: Arverne/Nordeck in Queens, Arlington Terrace/North Shore on Staten Island, and York Hill in Manhattan. Hazardous or Unsafe Conditions Found include:
- Arverne/Nordeck: Collapsed ceilings and walls caused by severe water damage, black soot, exposed nails, mold, and peeling paint were found inside vacant apartments. Cracks were also observed in the foundation of one building as was a large hole in the residents’ courtyard.
- Arlington Terrace/North Shore: Collapsed and missing stairs, large holes and cracks in walls, peeling and chipped paint, water damage and leaks, exposed electrical wiring and pipes, mold, roach infestations, bird feces, broken sinks and cabinets, missing floor tiles, window guards and doorknobs were found inside vacant apartments and common areas. Unsafe building façade conditions were also observed.
- York Hill: Mold, water leaks, and rusting were found in apartments, and cracks, rust, and peeling paint on one building’s façade.
In addition, the audit found that HPD failed to adequately review the expenses at these developments.
Specifically, auditors found managing agents spent approximately $1.6 million that were either unrelated to normal operations or were inadequately supported with financial documentation. In addition, $620,000 in contracts did not have written HPD approval and/or had no evidence of competitive analysis or bidding.
In response, HPD disagreed with “certain descriptions and characterizations,” said funding was allocated to all three developments to address conditions prior to the audit, and that competitive bidding was not required for vendor contracts under $100,000.
Briefs
Port Workers Return to Work: International Longshoremen’s Association and the United States Maritime Alliance Agree to Tentative Deal on Wages
The Internal Longshoremen’s Association and the United States Maritime Alliance agreed on Thursday to a tentative deal on wages and have extended their existing contract through January 15th to provide time to negotiate a new contract. The agreement ends a strike at East Coast and Gulf Coast ports. Operations at 14 different ports were impacted, with approximately 50,000 of the union’s members on strike.
“The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues,” The ILA and the USMX said in a joint statement.
According to published reports, ILA wages will increase by 61.5% over six years under the tentative agreement.
State Office of Cannabis Management Delivers Three-Year Status Report to Legislature
The Office of Cannabis Management (OCM) delivered its three-year report to the State Legislature this week, providing a status update on the agency’s progress in realizing the goals of the 2021 Marihuana Regulation and Taxation Act (MRTA).
As of September 15, 2024, 8,414 applications have been submitted for
licensure for adult use licenses. The OCM and Cannabis Control Board have approved
1,342 licenses and provisionally approved 362 applications across the various
applicant types including adult-use retail dispensaries, cultivators, processors,
distributors and micro businesses Pending applications total 5,598.
As of September 2024, adult use retail sales revenue totaled $654 million. According to the report, the State’s commitment to shutting down unlicensed cannabis storefronts has led to a 50% increase in legal cannabis sales statewide and a 97% increase in sales among downstate retailers. As of September 27, per the report, there were 202 legal recreational adult-use dispensaries in New York State.
NY State of Health Announces Approval of State’s Innovation Waiver Amendment In Time for 2025 Enrollment Period
The State Department of Health’s NY State of Health, the State’s official health plan Marketplace, this week announced that the U.S. Department of Health and Human Services and the U.S. Department of the Treasury approved New York’s State Innovation Waiver amendment, cutting an estimated $307 million in out-of-pocket costs annually for over 117,000 New Yorkers.
The approved waiver amendment provides cost-sharing subsidies for enrollees with diabetes, who are pregnant or in their 12-month postpartum period, and all individuals and families with incomes up to 400 percent of the Federal Poverty Line (FPL) or $60,240 for an individual and $124,800 for a family of four.
The waiver’s amendment approval comes as New Yorkers are making their care choices for 2025. The Open Enrollment Period begins November 1 and ends January 31. If an individual enrolls by December 15, then coverage will start January 1, 2025. Otherwise, coverage will begin on February 1, 2025. In addition, beginning October 1, consumers can browse 2025 plan options on the Marketplace to prepare for Open Enrollment. The waiver amendment approval is effective from January 1, 2025, through December 31, 2028.
Report Calls for Penn Station Expansion to Increase Train Service
A new report commissioned by Amtrak, New Jersey Transit, and the Metropolitan Transportation Authority asserts that Penn Station must expand its footprint to increase train capacity to meet the Gateway Project targets. Currently, Penn Station is capable of handling 24 trains per hour.
The expected capacity of the Northeast Corridor line after completion of the new Hudson River tunnel between Manhattan and New Jersey is 48 trains per hour. The report assessed a total of four plans: two different plans for “through-running” by consolidating New Jersey Transit and Long Island Railroad services and two different plans to build additional platforms below the existing station to determine if any of the options could support the 48 trains per hour benchmark. The report concluded that the “through-running” options would only expand the station’s capacity to 40 trains per hour and constructing a new set of tracks beneath the existing ones is unfeasible.
According to published reports, both New York and New Jersey enacted legislation to provide for southern expansion to be included in the Gateway Program, pending an agreement between both states and Amtrak.
Mayor Adams to Nominate Muriel Goode-Trufant to Serve as
New York City’s Corporation Counsel
New York City Mayor Eric Adams this week announced his intention to nominate Muriel GoodeTrufant as the city’s next corporation counsel. Goode-Trufant has more than 30 years of experience in the New York City Department of Law, where she has served as acting corporation counsel since this summer.
As corporation counsel, Goode-Trufant will lead the New York City Department of Law, which is primarily responsible for providing legal representation to the City of New York — for the Mayor’s Office, the Public Advocate’s Office, the Comptroller’s Office, city agencies, and the City Council — in all affirmative and defensive civil litigation.
Goode-Trufant will replace Judge Sylvia Hinds-Radix, who stepped down from her post at the end of May. She began her career at the New York City Department of Law in 1991 as an attorney in the General Litigation Division where she held numerous roles, including assistant chief of the division. She later became the agency’s Equal Employment Opportunity officer and rose to the position of chief in the Special Federal Litigation Division. Goode-Trufant became the Law Department’s managing attorney in 2015 and first assistant corporation counsel in 2023. She is a graduate of Temple University School of Law and the University of Pennsylvania.
Under the City Charter, the nominee for corporation counsel must be confirmed by the City Council.
Mayor Adams withdrew his initial nomination of Randy Masto as Corporation Counsel in September following a hearing by the City Council.
In addition, on Wednesday Mayor Adams appointed Allison Stoddart as City Hall’s chief counsel, effective immediately. Stoddart has served as chief of staff in the Office of the Chief Counsel since the start of the Adams administration. She is a graduate of Johns Hopkins University and Boston College Law School.
NYC Has Completed the Transition of Heavy-Duty and Off-Road Vehicles to Renewable Diesel
The Adams Administration this week announced that 100 percent of the city’s 12,500 heavy-duty and off-road vehicles have completed the transition to renewable diesel, making New York City the first major East Coast city to implement this green technology at such a large scale.
Since the start of the transition in September 2023, renewable diesel has replaced more than 12 million gallons of fossil diesel and has been used to power the city’s fleet of garbage trucks, ambulances, work trucks, and emergency generators, according to the Mayor.
“In September 2023, the City of New York became the first city to transition to renewable diesel on the East Coast of the United States,” said DCAS Deputy Commissioner and New York City Chief Fleet Officer Keith Kerman. “Mayor Adams set a goal for all agencies to switch out their dirty fossil diesel at in-house fuel sites, and we got it done. All agencies are now reducing carbon and tailpipe emissions with cleaner renewable diesel, helping DCAS meet our 50 percent greenhouse gas reduction target by 2025. In fact, this winter, all DSNY trucks used renewable diesel exclusively during the cold and snow season. New York City stands ready to electrify these vehicles when there are market solutions, and we are collaborating with vehicle manufacturers to fast-track a robust electric vehicle market.”
To date, over 70 percent of the city’s fleet — more than 21,000 fleet units — now use sustainable fuels, including electric, hybrid electric, solar, and biofuel vehicles.
NYS Fall Foliage Report
Gorgeous peak foliage will be arriving throughout most of the Adirondacks this weekend, as well as in many parts of the Catskills, while leaves in other parts of the state will generally range from just changing to midpoint of change. This is according to the field reports from more than 85 volunteer observers for the Empire State Development Division of Tourism’s I LOVE NY program.
Coming Up
New York State
Monday, October 7th
Meeting of the Board of Regents, Regents Office – 89 Washington Ave, 9 a.m.
Tuesday, October 8th
Joint Public Hearing: Assembly Standing Committee on Economic Development, Job Creation, Commerce and Industry, Hamilton Hearing Room B, LOB 2nd Floor, 10 a.m. Meeting of the Board of Regents, Regents Room – 89 Washington Ave, 10:30 a.m.
Wednesday, October 9th
Public Hearing: Assembly Standing Committee on Children and Families, Hamilton Hearing Room B, LOB 2 nd Floor, 11 a.m.
Thursday, October 10th
Cannabis Control Board Meeting, Empire State Plaza Concourse, Meeting Room 5, 1 p.m.
New York City
Tuesday, October 8th
Subcommittee on Landmarks, Public Sitings and Dispositions, Committee Room – City Hall, 11 a.m.
Subcommittee on Zoning and Franchises, Committee Room – City Hall, 12 p.m.
Wednesday, October 9th
Committee on Consumer and Worker Protection, Committee Room – City Hall, 10 a.m.
Committee on Women and Gender Equity, Council Chamber – City Hall, 10 a.m.
Committee on General Welfare, Council Chamber – City Hall, 10 a.m.
Committee on Land Use, 250 Broadway – Hearing Room, 16th Floor, 11 a.m.
Committee on Rules, Privileges and Elections, 250 Broadway – Committee Room, 14th Floor, 1 p.m.
Thursday, October 10th
Committee on Finance, Committee Room – City Hall, 10:30 a.m.
City Council Stated Meeting, Council Chambers – City Hall, 1:30 p.m.
Disclaimer: The materials in this This Week in New York report are provided for informational purposes only and are not intended to be a comprehensive review of legislative or governmental or political developments, to create a client-consultant/lobbyist relationship, or to provide consulting, lobbying or political advice. Readers are cautioned not to attempt to solve specific problems on the basis of information contained in this This Week in New York. If consulting, lobbying or government relations advice is required, please consult a professional expert in such matters.
The information contained herein, does not necessarily reflect the opinions of Pitta Bishop & Del Giorno LLC, or any of its members or employees or its clients. Neither Pitta Bishop & Del Giorno LLC, nor its members or employees make any warranty, expressed or implied, and assume no legal liability with respect to the information in this report, and do not guarantee that the information is accurate, complete, useful or current. Accordingly, Pitta Bishop & Del Giorno LLC is not responsible for any claimed damages resulting from any alleged error, inaccuracy, or omission. This communication may be considered an advertisement or solicitation. To request that copies of this publication be sent to a new address or fax number, to unsubscribe, or to comment on its contents, please contact Theresa Cosgrove at tcosgrove@pittabishop.com or at (518) 449-3320.
To Our Clients: If you have any questions regarding any of the matters addressed in this newsletter, or regarding any legislative, government relations or political or consulting or related issues in general, please contact the Pitta Bishop & Del Giorno LLC professional with whom you usually work.
This Week in New York is a publication of Pitta Bishop & Del Giorno LLC.
120 Broadway, 28th Floor
New York, New York 10271
Telephone (212) 652-3890
Facsimile (212) 652-3891
111 Washington Avenue, St. 401
Albany, New York 12210
Telephone (518) 449-3320
Facsimile (518) 449-5812
1220 19th Street NW, St. 600
Washington, D.C. 20036
Telephone (202) 964-4753