Politics on the Hudson

Howard Milstein, the wealthy New York City businessman, has been tapped by Gov. Andrew Cuomo to head the state’s Thruway Authority board, state officials confirmed.

Milstein was quietly nominated by Cuomo in early May to the post being vacated by current chairman, John Buono, whose term expired Jan. 1. The nomination was first reported this afternoon by the Buffalo News.

Milstein, 60, is the billionaire chairman of New York Private Bank & Trust and its operating bank, Emigrant Bank, and is a real estate investor.

The governor’s office confirmed the nomination, and a Senate spokesman said the nomination is scheduled to be voted on before session ends June 20.

Milstein and his wife, Abby, have been major campaign contributors to Democrats and Republicans—including each giving $50,000 to Cuomo’s campaign, records show.

The Cuomo adminstration has been eying changes at the Thruway Authority, which is run by executive director Michael Fleischer. Cuomo’s aides have recently suggested that the Thruway Authority could be combined with the state Department of Transportation.

The Thruway Authority manages the state’s 641-mile system and the state’s Erie Canal.

The Legislative Ethics Commission filed a “notice of reasonable cause” Tuesday against a lawmaker for just the second time since it was created in 2007, claiming Brooklyn Assemblyman William Boyland’s relationship with a hospital in his district may have violated the state’s ethics law.

Boyland, a Democrat, was charged along with Sen. Carl Kruger, D-Brooklyn, in federal court in March with two counts of conspiracy and one count of money laundering in connection with the alleged scheme. The U.S. Attorney’s Office claims the duo in March, saying they participated in bribes, kickbacks and influence peddling to drive state contracts to their various interests, including the Brookdale University Hospital.

The commission said Boyland “maintained a financial relationship” with the hospital “which constituted a substantial conflict of interest” for the Assemblyman.

Tuesday’s charge marks the first time the commission has acted against a sitting lawmaker, and its first action since filing a similar claim against already ousted (corrected) Sen. Hiram Monseratte, alleging that the senator solicited contributions to his legal defense fund from clients and lobbyists. Monseratte was previously ejected from the Senate by his colleagues after he was convicted of a misdemeanor following a domestic violence incident.

The Legislative Ethics Commission was established in 2007 in an attempt to beef up the state’s legislative ethics laws. It’s headed by Sen. Andrew Lanza, R-Staten Island, and Manhattan Assemblyman Daniel O’Donnell, a Democrat.

Gov. Andrew Cuomo has been pushing for an ethics overhaul for the Legislature, pushing for an independent panel to oversee lawmakers while blasting the current form of “self-policing” as ineffective at stops around the state.

NORCboyland-1

Assembly Real Property Taxation Committee chairwoman Sandy Galef, D-Ossining, Westchester County, responded to a protest outside her district office today by the New York State United Teachers union, saying her constituents support a property-tax cap.

“I have conducted a couple of polls throughout my Assembly District over the last three years, and in each of them, constituents overwhelmingly supported a property tax cap,” she said in a statement this afternoon. “Westchester County continues to be the county with the highest property taxes in the nation, and New York has one of the highest property taxes of any state in the nation.”

Galef had been leery of a tax cap for years and instead had supported a circuit breaker, which ties property taxes to household income but also comes with at least a $1 billion price tag. But Galef started supporting a property-tax cap back in 2008 during her re-election campaign.

“We must get control of our spending. I believe this property tax cap legislation is the first step to doing so,” Galef said, adding that the next step would be mandate relief for local governments and schools.

Galef is among suburban lawmakers who are expected to face resistance to a tax cap from schools, unions and local governments as legislators and Gov. Andrew Cuomo seek to pass a 2 percent tax cap before session ends June 20. Legislative leaders and Cuomo announced a tentative deal last week.

Earlier today, Comptroller Thomas DiNapoli dismissed the notion that the state pension fund’s investment in natural gas drilling and hydraulic fracturing operations poses a conflict of interest.

DiNapoli said there is a “total disconnect” between decision makers with the pension fund and the Department of Environmental Conservation, which is developing permitting guidelines for high-volume hydrofracking in the Marcellus Shale and other gas-rich formations.

“The pension fund has nothing to do with any decision that DEC will make as the regulator in this area,” DiNapoli said on WCNY’s The Capitol Pressroom this morning. “There’s absolutely no connection between the pension fund and DEC on any of this, so any suggestion that New York may move in this direction as a way to help the pension fund—there’s a total disconnect in terms of any decisions.”

High-volume fracking has been on hold in New York since the review was launched in July 2008. Gas companies have touted the large amount of domestic fuel locked in the Marcellus as a job creator and a major step toward energy independence, while environmentalists point to several high-profile accidents and say the hydrofracking process can damage the air, land and water.

A review by Gannett’s Albany Bureau earlier this month showed the $140 billion pension fund, of which DiNapoli is the sole trustee, has more than $1 billion tied up in companies that have are currently involved with hydrofracking, including $72 million in natural-gas giant Chesapeake Energy Corp. and $145 million in Schlumberger Ltd, a company specializing in hydrofracking and oilfield services.

DiNapoli said his office does not take an official position on gas drilling and hydrofracking, but said he is concerned about making sure the companies are using safe practices and have sturdy emergency plans in order to protect the pension fund’s investment. The Comptroller’s Office has been in on a number of shareholder resolutions urging companies to detail their risk mitigation measures and the environmental impact of their operations.

“Some of those companies that we invest with have been involved with gas exploration and extraction, and some of them are starting to look at some of the new technologies that obviously from a New York prospective have become very controversial,” DiNapoli said. “So our interest is with companies that we invest in—in any sector, but given the focus on the issue of fracking, as we call it—we’re particularly sensitive to those concerns.

The comptroller also touched on a new partnership between his office and Attorney General Eric Schneiderman, which would allow the attorney general to prosecute public integrity cases.

DiNapoli said the agreement would be “complementary” to Gov. Andrew Cuomo’s push for stronger ethics laws in the state Legislature.

“I think the governor has been very clear that we are at a time when more needs to be done to deal with the issue of ethics and integrity and corruption in our society and government at all levels,” DiNapoli said. “This helps to advance that agenda.”

Courtesy of Attorney General Eric Schneiderman’s office, you can view a copy of his soon-to-be-filed lawsuit against the federal government below.

Schneiderman delivered an ultimatum to the U.S. Army Corps of Engineers in April, telling them to launch a study within 30 days or face a lawsuit.

The attorney general’s office contends the feds are obligated under law to undertake such a study because several agencies are part of the Delaware River Basin Commission, which is currently constructing rules for natural gas drilling within the river’s watershed.

You can read more about the lawsuit here, and here’s a copy of the complaint…

DRBC Complaint (Final)[1]

A bill before the Assembly Racing and Wagering Committee tomorrow would remove all the towns in Ulster County, except the town of Wawarsing, from consideration for a Native American casino in the Catskills.

After 9/11, the state under then-Gov. George Pataki agreed to allow three Indian casinos in the Catskills and in western New York to raise revenue for the state. The deal also included allowing racetracks to get video lottery terminals.

All the facilities have opened except for any in the Catskills.

But a bill sponsored by Assemblyman Kevin Cahill, D-Kingston, Ulster County, would remove most of Ulster County from consideration for any casino development, arguing that the people there don’t want it. The current law allows for casinos in Ulster and Sullivan counties.

The measure has repeatedly passed the Assembly, but has died in the Senate.

The bill reads:

Since the enactment of that law several towns and villages including Gardiner, Marbletown, New Paltz, Plattekill, Saugerties, Shandaken and Woodstock have all adopted
resolutions stating their opposition to casino gambling. If the recently announced agreement to construct a casino in Sullivan County is allowed to move forward, the Governor would still have the authority to negotiate up to two more casinos in the Catskills.

The current law does not require the Governor to seek the approval of the counties prior to entering into an agreement. This bill is necessary to assure the residents of Ulster, outside of the Town of Wawarsing, that a casino will not be approved prior to the passage of new authorizing legislation.

Rep.-elect Kathy Hochul will be sworn in as New York’s 26th Congressional District representative Wednesday afternoon, according to a spokesman for House Speaker John Boehner.

The ceremony on the House floor will be held between 2 p.m. and 2:30 p.m. followed by a mock swearing-in where Hochul will pose with family members for photos.

Hochul, a Democrat who won a special election last week in which the top voter issue became the Republican plan to overhaul Medicare, will begin serving the same day the House takes up fiscal 2012 appropriations bills.

The first one on the floor Wednesday will be the Homeland Security Department spending bill. Later this week the House will take up spending bills for military construction and for the Department of Veterans Affairs and related agencies.

Hochul  is taking over the suite in the Longworth House Office Building occupied by former Republican Rep. Chris Lee until his resignation in February. She also will occupy the two district offices in the Buffalo suburb of Williamsville and the Rochester suburb of Greece.

State Attorney General Eric Schneiderman announced today he will sue the federal government to try to force a study of the potential impacts of hydraulic fracturing in the Delaware River basin.

Schneiderman delivered an ultimatum to the U.S. Army Corps of Engineers in April, telling them to launch a study within 30 days or face a lawsuit.

The attorney general’s office contends the feds are obligated under law to undertake such a study because several agencies are part of the Delaware River Basin Commission, which is currently constructing rules for natural gas drilling within the river’s watershed.

“Before any decisions on drilling are made, it is our responsibility to follow the facts and understand the public health and safety effects posed by potential natural gas development,” Schneiderman said in a statement. “The federal government has an obligation to undertake the necessary studies, and as I made clear last month, this office will compel it to do so.”

In a letter sent to Schneiderman and obtained last week by Gannett’s Albany Bureau, U.S. Army Corps of Engineers Division Commander Peter DeLuca said he disagrees with the attorney general’s assessment. DeLuca contends that since the federal government is only one of five entities in the Delaware River Basin Commission – along with New York, Pennsylvania, Delaware and New Jersey – it is not subject to the National Environmental Policy Act as Schneiderman claims.

Several federal agencies participate as part of the commission, with the Army Corps playing a lead role.

The Delaware River basin includes portions of Broome, Delaware, Chenango and Ulster Counties, as well as a large chunk of the New York City watershed. It sits above the gas-rich Marcellus Shale formation.

The commission is currently drafting rules for natural gas drilling and hydraulic fracturing, a process involving the injection of millions of gallons of chemical-laced water to break up shale formations, within the river basin. A public comment period on a draft set regulations wrapped up earlier this year.

The lawsuit will be filed in federal court in Brooklyn, according to Schneiderman’s office.

The United Federation of Teachers is joining a number of unions in support of legalizing same-sex marriage in New York.

The UFT, which has about 200,000 members in New York City, called today for the passage of the legislation before the legislative session ends June 20. Other unions have also endorsed the bill, including 32BJ, CWA District 1 and 1199 SEIU.

“Our union prides itself on a diverse membership and as a champion of equality we believe that it is time for all New Yorkers to be treated equally,” said Michael Mulgrew, UFT president. “This is a civil-rights issue and we are calling on New York State’s Legislature to pass marriage equality legislation and give all New Yorkers the right to marry the person they love.”

Updated: NYSUT also back same-sex marriage. Here’s the letter the union sent to Ross Levi, executive director of the Empire State Pride Agenda.

Sen. Lee Zeldin, a freshman Republican from Suffolk County, has a new website today that includes a petition to get Albany to repeal the payroll tax for the 12 counties in the Metropolitan Transportation Authority region in the New York City area.

The payroll tax, implemented in 2009, puts a tax on businesses, schools, local governments and nonprofit groups in the MTA region, including Westchester, Putnam and Dutchess counties.

“I campaigned for office with an important purpose and promise,” Zeldin said in a statement. “My commitment has been to hold the MTA’s feet to the fire on behalf of the taxpayers of the 3rd Senate District. I will continue to shine a light on all of the ways the MTA can do more with less. My promise is not to rest until the legislature takes action to repeal the payroll tax.”

Zeldin recently wrote to Democratic Gov. Andrew Cuomo to seek to repeal the tax and asked Comptroller Thomas DiNapoli to audit the MTA. Cuomo has suggested he’s open to find ways to repeal the tax, but hasn’t actively pursued it since he came into office in January.

Zeldin said he plans to introduce legislation that would call for a multi-year phase out of the payroll tax, which brings in about $1.3 billion a year.