Adams vs. Hochul's budget proposal — trouble in paradise?

By ANNA GRONEWOLD, SALLY GOLDENBERG and ELEONORA FRANCICA

02/07/2023 07:30 AM EST

Gov. Kathy Hochul’s state budget proposal is testing the limits of New York City Mayor Eric Adams’ public affection for his ally in Albany.

Adams’ budget office prepared a memo raising concerns about a bevy of unfunded mandates in the $227 billion spending plan Hochul rolled out last week. The missive — which was obtained by POLITICO and has not yet been reported — also laid out a perceived shortfall in state aid for tens of thousands of asylum seekers entering the five boroughs.

All told, the state plan would benefit the city this year by $168 million, but cost the Adams administration $461 million next year and $1.34 billion in fiscal 2025, according to the memo.

“In terms of policy, the governor’s proposed budget incorporates many of the mayor’s priorities,” the memo reads. “However, financially, the governor’s executive budget contains few city priorities and poses significant challenges to the city if enacted as written, particularly because the city’s financial position has already been strained by the migrant crisis.”

For starters, the city Office of Management and Budget calculated that the state is providing insufficient funding for the more than 44,000 South and Central Americans seeking shelter in New York City. The state’s $1 billion commitment over two years only amounts to 29 percent of shelter costs. Adams is estimating spending $4.2 billion on asylum seekers by the end of fiscal 2024. Hochul’s team said she is using a standard funding formula to determine the adequate contribution for sheltering migrants.

The memo also projects the city will spend $1 billion on Hochul’s proposal to lift the charter school cap, $250 million or so related to her authorization of so-called zombie charters and $1.3 billion on required class size reductions. While city officials are calling these education measures unfunded mandates, Hochul’s team is arguing she has provided record-high education aid to the city.

And, of course, Adams continues to oppose a push for him to cough up more than $500 million annually to the cash-strapped Metropolitan Transportation Authority — money Hochul’s reps say would directly benefit city straphangers.

While mayors and governors typically spar over budgets, Adams’ fractured relationship with legislative leaders leaves him more dependent on Hochul to further his agenda in Albany this year.

He is planning to testify about the spending plan during a visit to the state capital on Feb. 15 for the local government joint legislative hearing.

IT’S TUESDAY and the budget hearing on public protection in Albany starts at 9:30 a.m.

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