MAYOR ADAMS ANNOUNCES ACTIVATION OF CITY'S FIRST PUBLIC E-BIKE CHARGING SITE FOR DELIVERY WORKERS

 

First of Five Outdoor Charging Facilities Now Online at Manhattan’s Cooper Square, With Others to be Installed in Coming Weeks 

 

Pilot Will Allow Select Group of Delivery Workers to Safely Charge Lithium-Ion Batteries Outside of Residences

 

Effort Part of Administration’s “Charge Safe, Ride Safe” Plan to Support Safe E-Bike Use, Prevent Deadly Lithium-Ion Battery Fires

New York City Mayor Eric Adams, New York City Department of Transportation (DOT) Commissioner Ydanis Rodriguez, and New York City Economic Development Corporation (NYCEDC) President and CEO Andrew Kimball today activated the first of five public e-battery charging locations as part of the city’s new six-month pilot program to test safe, public charging of lithium-ion batteries by an initial group of 100 delivery workers. The first charging site is being located in Cooper Square in Manhattan's East Village and is a key component of the administration’s overall “Charge Safe, Ride Safe: New York City’s Electric Micromobility Action Plan” to support safe e-bike use and prevent deadly lithium-ion battery fires. New York City is among the first major cities in the United States to launch a public e-bike charging pilot program.

 

“We count on delivery workers for so much, and they should be able to count on us, too — whether that means fighting for fair pay or making their jobs and livelihoods safer,” said Mayor Adams. “This pilot program we’re kicking off today will give delivery workers the ability to access safe, accessible, outdoor battery-charging that will undoubtedly save lives, and we’re eager to expand this pilot even further. We know the incredible potential of e-bikes in our city and it’s on us to make e-bike use even safer.”

 

“Delivery workers, their families, and their neighbors deserve to be safe from battery fires,” said Deputy Mayor for Operations Meera Joshi. “Workers need on-street infrastructure for safe charging, and this pilot is an important step as we continue our work with the City Council to increase safety and worker protections in every aspect of the quickly-growing delivery market. Thank you to DOT, NYCEDC, DCWP and the Fire Department for making this possible.”

 

“E-bikes are critical tools for delivery workers to support our local economy. This pilot will offer convenient and safe charging options at public locations so that delivery workers do not have to charge their devices at home,” said DOT Commissioner Rodriguez. “We’re thrilled to launch this pilot and thank the mayor as well as our partners in labor for supporting this vision.” 

 

“Safe and accessible charging helps our delivery workers do their day-to-day jobs and contribute to the city's vibrant economy,” said NYCEDC President and CEO Kimball. “NYCEDC is thrilled to utilize our assets for this innovative program, including the Essex Market and Brooklyn Army Terminal — an emerging hub for climate innovation. We are excited to work with DOT on increasing pilot opportunities and look forward to seeing its positive impact at making sure delivery workers charge safe and ride safe."

 

“We know that micro-mobility devices powered by lithium-ion batteries are already in people’s homes,” said Fire Department of the City of New York (FDNY) Commissioner Laura Kavanagh. “In fact, a majority of deadly e-bike fires happen in residences. They are used daily by delivery workers and others to work and commute. We are grateful to partner with the DOT to give delivery workers a safe place to charge their devices. Fires caused by lithium-ion batteries are extremely dangerous and deadly, and we must continue to work together to tackle this public safety threat head on.”

 

“At the Department of Consumer and Worker Protection, we are committed to supporting and protecting the rights of our city’s delivery workers,” said New York City Department of Consumer and Worker Protection Commissioner Vilda Vera Mayuga. “Keeping New Yorkers safe from the dangers of uncertified lithium-ion batteries requires a coordinated, multiagency response, and we are proud of the work this administration has done to protect our city. Together, with our partners at the FDNY, we’ve worked to hold retailers accountable, issuing nearly 200 violations to businesses for selling uncertified devices and batteries. Thank you to the mayor and DOT for developing creative and safe charging options for our city’s delivery workers and e-bike users.”

 

Mayor Adams also today announced four other outdoor charging sites across Manhattan and Brooklyn, selected based on their high concentrations of e-bike delivery activity and delivery workers. Those locations — the Brooklyn Army Terminal in Sunset Park, Essex Market in the Lower East Side, Plaza De Las Americas in Washington Heights, and Willoughby and Jay Streets in Downtown Brooklyn — will have public e-battery charging locations installed and activated in the coming weeks.

 

DOT developed the pilot through the agency’s DOT Studio, a research and development partnership with NYCEDC and the urban tech growth hub Newlab. The announcement follows the release of the administration’s Green Economy Action Plan, a first-of-its-kind plan that outlines a roadmap to grow the city’s green economy — consisting of investments in jobs and sectors that will help the city combat climate change — and train and position New Yorkers, particularly those from environmentally-disadvantaged communities, to benefit from the nearly 400,000 projected ‘green-collar’ jobs in New York City by 2040.

 

Three companies — Swobbee, Popwheels, and Swiftmile — are providing charging infrastructure for the pilot. Swobbee and Popwheels are providing swappable battery systems, enabling participating e-bike users to swap a depleted, UL-certified e-bike battery for a fully-charged battery at designated outdoor battery cabinets. Swiftmile is providing a secure charging bike rack where participating e-bike users can lock up their bikes and charge while parked. The three technologies include fire safety features, ranging from automatic shutoff if a battery is overheating to fire suppression systems. The FDNY, a key partner in the pilot, reviewed product development and will also inspect each pilot location during installation and throughout the duration of the program.

 

Only participating delivery workers will be able to take part in the six-month pilot free of cost. In the coming days, DOT will sign as many as 100 delivery workers up to participate in the pilot program; during which the workers will provide continuous feedback about their experience with the charging technologies and hubs. Interested workers can fill out an Expression of Interest form or attend an onboarding event, including at Cooper Square on March 7, 2024 from 2:00 PM to 5:00 PM and at the Brooklyn Army Terminal on March 8, 2024 from 2:00 PM to 5:00 PM.

 

“Transportation options are essential in such a vibrant and busy city like New York,” said Colin Roche, chief executive officer, Swiftmile. “We're excited to partner with DOT and Newlab to showcase our U.S.-made e-bike charging stations. These stations will help some of the city’s 65,000 delivery workers safely charge their vehicles without worrying about the battery fire hazards that have been affecting New Yorkers. A crucial component of our charging technology is designed to identify overheating in e-bike batteries and automatically shut down if it detects an issue. We hope the outcome of the pilot will lead to much safer charging solutions for delivery workers and peace of mind to New Yorkers.”

“We’re excited about the launch of the city’s first e-battery charging hub that will provide our delivery workers with places for safe charging,” said Ken Podziba, CEO, Bike New York.  “Many of the risks associated with dangerous lithium-ion batteries are preventable and offering these public charging stations, with hopefully many more to come, is a big and innovative step in the right direction. We’d like to thank Mayor Adams, Commissioner Rodriguez, and EDC President Kimball for their leadership in helping to combat the crisis of deadly fires associated with faulty lithium-ion batteries by offering real solutions for our hard-working commercial cyclists.”

“Los Deliveristas Unidos supports this initiative led and implemented by the Department of Transportation,” said Alejandro Grajales, representative, Los Deliveristas Unidos. “Building e-bike micro mobility infrastructure like e-bike charging has been a priority for Los Deliveristas Unidos. This type of infrastructure is critical to enhancing safety for not just the delivery workforce but the entire community at large.”

“Our group has been waiting for this great project to begin that will provide charging stations for e-bike batteries,” said Sergio Solano, representative, New York City Food Delivery Movement. “We thank the DOT for giving us the opportunity to be involved in this pilot program and thank the city of New York for considering us as essential workers.”

  

Opioid Manufacturer Endo Health Solutions Inc. Agrees to Global Resolution of Criminal and Civil Investigations into Sales and Marketing of Branded Opioid Drug

 

United States Also Reaches Settlement with Endo International in Bankruptcy Case

Endo Health Solutions Inc. (EHSI), which is in bankruptcy, has agreed to resolve criminal and civil investigations related to the company’s sales and marketing of the opioid drug Opana ER with INTAC (Opana ER), the Justice Department announced today. The United States has also reached an agreement in Endo’s bankruptcy case to settle its monetary claims arising from the criminal and civil settlements, as well as additional tax and healthcare related claims. Under the bankruptcy agreement, the government will be paid up to $464.9 million over 10 years. EHSI’s entry into all of these agreements is subject to the approval of the U.S. Bankruptcy Court in the Southern District of New York.

Under the proposed criminal resolution, EHSI agreed to plead guilty in federal court in the Eastern District of Michigan to a one-count misdemeanor information charging it with violating the Federal Food, Drug and Cosmetic Act (FDCA) by introducing misbranded drugs into interstate commerce. The criminal resolution includes the second-largest set of criminal financial penalties ever levied against a pharmaceutical company, including a criminal fine of $1.086 billion and an additional $450 million in criminal forfeiture. The proposed resolution includes a corporate criminal release regarding conduct relating to the sale, marketing, and distribution of Opana ER, but does not release any individual criminal liability.

EHSI also has agreed to a civil settlement of $475.6 million to resolve its civil liability under the False Claims Act (FCA). The civil settlement will address alleged losses to federal healthcare programs that paid for Opana ER.

Endo International plc and several of its affiliates, including EHSI (together, Endo), commenced Chapter 11 bankruptcy proceedings in the Southern District of New York on Aug. 16, 2022. Today, the United States announced that it also reached an agreement to resolve all of its monetary claims against the debtors — including the claims arising from the criminal plea and civil settlement — in Endo’s bankruptcy cases. In addition to the criminal and civil settlement resolutions, the bankruptcy settlement provides payment for claims for unpaid taxes and for costs incurred by federal healthcare agencies to treat individuals harmed by Endo’s products.  As noted, under the bankruptcy agreement, the government will be paid up to $464.9 million over 10 years.  

“Companies that profit from the opioid abuse epidemic by misrepresenting the safety of their opioid products and using reckless marketing tactics to increase sales threaten the health and safety of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “With today’s announcement of a criminal guilty plea and a substantial civil settlement, the Justice Department re-affirms its commitment to holding accountable those whose illegal conduct contributed to the opioid crisis.”

“Chapter 11 is an important tool for businesses to preserve value for their stakeholders. Bankruptcy protections are not a free pass to evade responsibility for criminal misconduct, civil fraud, or taxes,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s settlement ensures that Endo takes responsibility for its past misconduct, pays its federal debts, helps abate the nation’s opioid crisis by funding evidence-based treatment programs at the state and local level and distributes payments to individuals harmed by the opioid epidemic.”

“Combating the opioid epidemic remains a top public health priority for the Food and Drug Administration (FDA),” said Director Patrizia Cavazzoni, M.D. of FDA’s Center for Drug Evaluation and Research. “This case demonstrates FDA and the Justice Department’s commitment to work collaboratively to hold drug manufacturers accountable if they fail to share accurate information with health care professionals about the risks and benefits of opioids.”

“The metrics of the opioid crisis are staggering. When companies do not provide accurate information about the safety and abuse potential of their products, they put patients at risk of abuse and addiction,” said Associate Commissioner Michael Rogers of FDA’s Regulatory Affairs. “Such conduct will not be tolerated, and we will aggressively pursue and bring to justice those who endanger the public health in this manner.”

One important condition in the resolution is that Endo would cease to operate in its current form and would not emerge from the bankruptcy. Moreover, as part of its resolution with the opioid claimants, Endo’s affiliates have agreed to a Voluntary Operating Injunction that restrains opioid marketing and sales and requires Endo to turn over millions of documents related to its role in the opioid crisis for publication in a public online archive.

The Criminal Plea

As part of the plea, EHSI will admit that from April 2012 through May 2013, certain EHSI sales representatives marketed Opana ER to prescribers by touting Opana ER’s purported abuse deterrence, tamper resistance, and/or crush resistance, despite a lack of clinical data supporting those claims. According to the plea agreement, certain EHSI sales managers were aware that the sales representatives were making claims of purported abuse deterrence, tamper resistance, and/or crush resistance during sales calls, including hitting demonstration “blister packs” of non-medicated sample pills with hammers and conducting other demonstrations to convey the message that Opana ER was, in fact, crush proof and tamper resistant. The approved labeling for Opana ER did not provide adequate information for healthcare providers to safely prescribe Opana ER for use as an opioid that is abuse deterrent. According to the plea agreement, EHSI was responsible for the misbranding of Opana ER by marketing the drug with a label that failed to include adequate directions for its claimed abuse deterrence use, in violation of the FDCA.

EHSI voluntarily withdrew Opana ER from the market in 2017.

The Civil Settlement

The civil settlement announced today resolves allegations that, from 2011 to 2017, EHSI used a marketing scheme that targeted healthcare providers that EHSI knew were prescribing Opana ER for non-medically accepted indications. Aware that fewer than 10% of Opana ER prescribers wrote more than half of all Opana ER prescriptions, EHSI allegedly sought to increase its revenue from Opana ER prescriptions by focusing its marketing on those healthcare providers who prescribed the highest levels of opioids in general and Opana ER in particular. When EHSI employees raised concerns about targeting prescribers believed to be engaged in abuse, diversion or pill mill prescribing, EHSI allegedly ignored or minimized such concerns and continued to directly market Opana ER to such prescribers.

The allegations resolved by the civil settlement relating to EHSI’s marketing activities include that in 2015, after marketing the reformulated Opana ER for years, EHSI sought to further increase prescriptions by partnering with a consulting company to “pull[] all the levers” it could “to drive incremental growth” of Opana ER prescriptions. In what it termed a “sales force blitz,” EHSI allegedly added 3,000 priority targets to its sales representatives’ call lists, with nearly all of these priority targets chosen because they prescribed a high volume of opioids in general or Opana ER in particular. EHSI allegedly used sales goals and contests to ensure that its sales representatives targeted these outlier prescribers, including prescribers who previously had been excluded from EHSI’s call lists as posing risks of abuse and diversion.

The Bankruptcy Resolution

As part of Endo’s bankruptcy plan, a group of Endo’s secured lenders will purchase Endo’s assets and operate the business under a new corporate structure. Under the bankruptcy agreement negotiated by the United States to resolve its claims against Endo, this new business will pay the United States $364.9 million over 10 years, which can be prepaid at $200 million on the bankruptcy plan’s effective date, plus up to an additional $100 million contingent on the business performance of the new company.

The bankruptcy agreement resolves multiple federal claims against Endo, including the claims arising from the criminal and civil settlements, as well as tax claims and the claims of various federal healthcare agencies. The settlement agreement further precludes the new company from acquiring any unused tax credits or other beneficial tax attributes of Endo. Additionally, the new company will fund voluntary trusts in settlement of opioid-related claims against Endo, including public trusts that will pay over $450 million to state, municipal and Tribal entities to help fund programs to abate the opioid crisis. The department will credit up to $450 million of such payments against the agreed forfeiture amount.

In addition to the criminal and civil claims described above, the Internal Revenue Service (IRS) filed substantial tax claims in the bankruptcy proceeding against Endo based on ongoing audits. These audits concerned, among other things, Endo’s valuation of assets it transferred to foreign affiliates and its payment of a large loan pre-payment penalty to a foreign affiliate for which it sought a tax deduction. A substantial majority of these payments were entitled to priority over Endo’s other unsecured claims.

Finally, HHS’s Centers for Medicare and Medicaid Services (CMS), HHS’s Indian Health Service and the Department of Veterans Affairs (VA) asserted claims in the bankruptcy proceeding against Endo for the costs these programs incurred in providing medical care to treat individuals who suffer from opioid-use disorder as a result of their use of Opana ER and other opioids manufactured and sold by Endo. CMS has also filed a claim to recover costs it incurred based on beneficiaries’ use of other Endo products, including transvaginal mesh and ranitidine.

When Endo filed for bankruptcy in August 2022, it proposed to sell substantially all of its assets in a manner that contravened key requirements of the Bankruptcy Code. Endo’s original proposal would have provided virtually no recovery to the federal government on account of its claims, while improperly paying several other creditor groups on account of their claims, even though they were entitled to lower or equal priority as certain government claims. The current bankruptcy settlement was achieved after the government objected to the proposed sale in Bankruptcy Court. Through this settlement, the government has ensured both that it is compensated for its claims and that Endo does not run afoul of the Bankruptcy Code by paying only certain of its creditors or violating the Bankruptcy Code’s priority scheme.

“The opioid crisis remains a public health emergency nationwide, and those impacted are at the forefront of our work,” said the Honorable Christi A. Grimm, HHS Inspector General. “The HHS Office of Inspector General (HHS-OIG) is staunchly committed to protecting the millions of people served by federal healthcare programs from schemes such as this, while also striving to ensure they have access to necessary treatment.” 

“The misbranding of opioids negatively impacts the integrity of TRICARE, the military’s healthcare system relied on by more than nine million service members, retirees and their families,” said the Honorable Robert P. Storch, Department of Defense Inspector General. “Today’s settlement demonstrates the ongoing commitment of the Defense Criminal Investigative Service and its law enforcement partners to promote accountability and transparency throughout the pharmaceutical industry and prosecute those who put profits ahead of patient welfare. The delivery of quality healthcare is too important to let a single dollar go to waste.”

“Veterans and their families expect and deserve the highest quality health care delivered in a safe and accountable setting. False or misleading claims about potentially dangerous drugs put veterans’ care at risk,” said the Honorable Michael J. Missal, VA Inspector General. “The VA Office of Inspector General is committed to working with our law enforcement partners to ensure the safety of those who entrust their health care to the providers and staff at VA’s 1,300 medical facilities.”

“Protecting the health and safety of Federal employees, annuitants, and their families is a top priority for OPM OIG,” said Special Agent in Charge Derek M. Holt of the Office of Personnel Management Office of Inspector General (OPM-OIG). “Today’s criminal and civil resolutions demonstrate the exemplary work of our investigative staff, law enforcement partners, and colleagues at the Justice Department in holding manufacturers accountable for actions that contribute to the opioid epidemic.”

The criminal investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, HHS-OIG, Food and Drug Administration Office of Criminal Investigations, VA Office of Inspector General, OPM-OIG, Defense Criminal Investigative Service and Amtrak Office of Inspector General.

The criminal matter was handled by Assistant Director Gabriel H. Scannapieco and Trial Attorneys Ben Cornfeld and Tara M. Shinnick of the Civil Division’s Consumer Protection Branch.

The civil investigation and settlement were handled by Senior Trial Counsel Christopher Terranova and Assistant Director Natalie Waites of the Civil Division’s Commercial Litigation Branch, Fraud Section and Matthew Feeley, Deputy Chief & Healthcare Fraud Coordinator for the Southern District of Florida, with assistance from the HHS Office of General Counsel and Office of Counsel to the Inspector General.

The Endo bankruptcy case is being handled by Assistant U.S. Attorneys Jean-David Barnea, Peter Aronoff and Tara Schwartz for the Southern District of New York and Assistant Directors Mary Schmergel and Kevin VanLandingham of the Civil Division’s Commercial Litigation Branch, Corporate/Financial Litigation Section.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the Civil Fraud Section and its enforcement efforts, visit www.justice.gov/civil/fraud-section.

Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).

Except to the extent that EHSI’s admissions are part of its criminal resolution, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.

View the agreements here, here, and here.

Attorney General James Takes Action to Stop Discrimination Against Transgender Americans

 

AG James Joins Coalition of 18 Attorneys General Calling on Colorado Supreme Court to Side with Transgender Customer Suing Masterpiece Cakeshop for Discrimination

New York Attorney General Letitia James joined a multistate coalition of 18 attorneys general urging the Colorado Supreme Court to affirm a lower court’s ruling that a Colorado baker violated the state’s antidiscrimination law when he denied service to a transgender customer. Jack Phillips and his bakery, Masterpiece Cakeshop, which was previously the subject of a United States Supreme Court decision about its refusal to bake a wedding cake for a same-sex couple, refused to provide a cake for a transgender customer upon learning the cake would be used to celebrate her transition. The coalition of attorneys general filed an amicus brief with the Colorado Supreme Court calling on the Court to uphold a lower court’s ruling in favor of the customer, Autumn Scardina, who sued Masterpiece Cakeshop for discrimination. 

“Denying service to someone simply because of who they are is illegal discrimination, plain and simple,” said Attorney General James. “Allowing this kind of behavior would undermine our nation’s fundamental values of freedom and equality, and set a dangerous precedent. I am proud to stand with my fellow attorneys general against this blatant transphobic discrimination.” 

The case originated in 2018 when Autumn Scardina called Masterpiece Cakeshop to order a plain pink cake with blue frosting. When Scardina revealed that the cake was meant to celebrate her transition in addition to her birthday, she was told that the bakery would not make the cake “because of the message.” Scardina sued Masterpiece Cakeshop in state court alleging violations of Colorado’s public accommodations law, which protects individuals from discrimination on the basis of race, sexual orientation, religion, sex, and other protected characteristics. The court ruled in favor of Scardina, and the Colorado Court of Appeals affirmed the decision, noting that Phillips, the owner of Masterpiece Cakeshop, objected to making the cake only after he learned of Scardina’s intended use for it, and that Phillips did not believe the cake itself expressed any inherent message. In October 2023, the Colorado Supreme Court agreed to hear the case. 

In the amicus brief filed with the Colorado Supreme Court, Attorney General James and the coalition of attorneys general argued that state public accommodation laws banning public businesses from denying services based on protected characteristics like race, religion, gender identity, and disability status are an important part of preventing discrimination. The brief noted that the United States Supreme Court has long recognized that these laws serve states’ interests in protecting their residents. 

The coalition further emphasized that the kind of discrimination practiced by Masterpiece Cakeshop’s owner is particularly harmful, not only to the individuals to whom they deny service, but to the broader economy. A segregated market denies Americans — particularly those in marginalized communities — equal access to the goods and services they need, undermining the promise of a free and equal society. It also encourages stigmatization and isolation of the victims of discrimination, increasing risks to their physical and mental health. As the coalition noted, LGBTQ+ Americans are much more likely to be bullied, harassed, and attacked in hate crimes, and that discrimination has severe negative health impacts on LGBTQ+ people, including increased rates of mental health disorders and suicide attempts, especially for young people. Notably, civil rights laws that protect LGBTQ+ Americans have been shown to decrease these health risks. The coalition’s brief concluded by cautioning that a ruling in favor of Masterpiece Cakeshop would expose transgender and other marginalized people to a broad array of discrimination from public businesses. 

Attorney General James has been a national leader in the fight to protect LGBTQ+ individuals from discrimination. In May 2023, Attorney General James led a coalition of 12 attorneys general in support of robust anti-discrimination protections for transgender students at the federal level. In April 2023, Attorney General James led a coalition of 18 attorneys general to support a student challenging a West Virginia law banning transgender students from participating on sports teams consistent with their gender identity. In December 2022, Attorney General James led a coalition of 16 attorneys general to support equal access to gender-affirming care in West Virginia. In November 2022, Attorney General James led a coalition of 17 attorneys general to support transgender students seeking to participate in sex-segregated school sports consistent with their gender identity in Indiana. In 2021, Attorney General James successfully prevented a New York wedding photographer from discriminating against LGBTQ+ couples. Attorney General James has led coalitions of attorneys general to challenge policies prohibiting transgender students from using bathrooms that correspond with their gender identity in Indiana, Florida, and Virginia.

Joining Attorney General James in filing the brief are the attorneys general of Connecticut, Delaware, Hawai‘i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and the District of Columbia. 

Comptroller Analysis Reviews Mayor’s Preliminary Budget Impacts to City Services

 

Finds shortsighted cuts to CUNY, libraries, alternatives-to-incarceration; key agencies (HPD, Sanitation, Parks) facing critical challenges; and stronger budget discipline needed in areas of long-term overspending including uniformed overtime and claims

Ahead of the City Council’s FY 2025 Preliminary Budget hearings, New York City Comptroller Brad Lander released an analysis of the Mayor’s budget cuts and their impact on City services. The report, The Bottom Lines, identifies areas where short-sighted programmatic cuts and longer-term agency budget and staffing reductions have resulted in measurable declines in critical service to New Yorkers. The report also identifies areas where the City can better manage budgeting and spending — uniformed overtime, crash claims and Carter cases.  

“Despite last week’s announcement cancelling the third round of PEGs this fiscal year, the Mayor’s preliminary budget cuts CUNY, libraries, cultural institutions, and vital re-entry programs that keep New Yorkers safe, and it fails to address critical challenges facing our Housing, Sanitation, and Parks Departments,” said Comptroller Brad Lander. “A better way to address our fiscal challenges is to confront long-term areas of overspending, like uniformed overtime, crash claims, and Carter cases.”   

Late last year, the Adams Administration announced a requirement that agencies submit plans for the three Programs to Eliminate the Gap (PEGs), each totaling about five percent of city spending, as well as restrictions on contractual spending and a citywide hiring freeze in order to address significant budget deficits. While the City since rolled back some of the cuts (scaling-back the PEG in January, and cancelling the upcoming April PEG), the vast majority of the cuts from the first two rounds of PEGs remain in the Preliminary Budget.  

The Bottom Lines reviews the impacts:  

Shortsighted Programmatic Cuts 

• CUNY: Over the past two years, the City has reduced its annual funding for CUNY’s community colleges by $95 million.​ Cuts will hit colleges unevenly; 9 institutions unable to achieve budget targets began making midyear cuts ranging from eliminated programming, increased class sizes, or further reductions in faculty and staff.
• Libraries: Libraries provide New Yorkers with critical access to knowledge, resources, high-quality internet, and programming. ​The Library system’s overall budget accounts for just 0.4% of the City’s total expense budget. As a result of the 5% cut in the operating subsidy given to Library systems, saving a meager $24 million for the City, neighborhood libraries across the city have had to close on Saturday or Sunday, eliminating 7-day service where is previously existed. Rising library card registrations show an increased demand for library services, but budget cuts are forcing libraries to close their doors more days of the week.
• Alternatives to Incarceration & Detention: The Office of Criminal Justice (OCJ) manages alternatives to incarceration (ATI) and alternatives to detention (ATD) programs, which maintain and improve a fair and equitable justice system while reducing the City’s jail population. OCJ will be cut Alternatives to Incarceration programming by 12% and Supervised Release by 11%. Re-Entry Services will see an immediate 25% reduction. These cuts total $27.8 million in the next fiscal year.​
• Students in Temporary Housing: 13% of students in public schools live in temporary housing. As the Department of Education (DOE) faces the expiration of federal COVID stimulus funds, these cuts impact students in temporary housing. 

• • Community Coordinator positions will disappear with a $12 million cut ($9 million in expiring stimulus funding, $3 million in unallocated city dollars) as an additional 175 new shelters, HERRCs, and respite centers have opened.  
  • $77 million (both expiring stimulus funding and non-baselined city money) in community school funding, representing 155 programs — was not included in the FY25 preliminary budget. 

Agencies Facing Critical Challenges 

• Housing and Preservation Development: ​The HPD budget has been reduced by 7%. To effectively tackle the City’s affordable housing crisis, the City must ensure HPD has additional resources to clear the backlog of affordable housing projects, develop and train new staff, and expand the City’s social housing footprint. ​Read more about these challenges in Building Blocks of Change.
• Sanitation: DSNY cancelled or reduced many critical programs, including community & home organics collection, supplemental litter basket service, lot cleaning and planning for the future of solid waste. 500 positions are eliminated due to hiring freezes and service reductions. ​Current cuts to DSNY’s composting and litter basket programs threaten to worsen the cleanliness of city streets, undermine rat mitigation efforts, and stymie the progress made toward increasing organics diversion putting the City’s 0x30 goals directly at risk. ​
• Parks: While Parks saved the most through hiring freezes and vacancy reductions, Parks also permanently eliminated some programming including life-saving swim classes. In total, Parks loses over 650 jobs. Parks may suffer from maintenance issues, reduced hours and closed facilities, and cutbacks on programs which could drive down New Yorkers’ access to and use of parks. ​ 

Instead of these cuts and critical challenges to agencies, the report identifies areas where the City can drive down longstanding cost overruns. Better management of uniformed overtime, crash claims, and Carter cases provide real opportunities for the City to save dollars without diminishing services.  

 Stronger Budget Discipline Required 

• Uniformed Overtime: Uniformed agencies, particularly the Police Department, routinely spend far more money for overtime than agreed to by the Mayor and Council in the budget. For example, the Comptroller projected in December that the city was underbudgeting Uniformed Overtime by $600 million including $450 million by the NYPD.​ Much of the overspending is for planned events. Read more in Overtime Overview.
• Crash Claims: Payouts for crash claims sharply rose over a decade; the total payout for crashes nearly doubled from $89 million to $174 million comparing 2014 to 2023, and the average payout rose from $150,000 to $300,000. A 20% reduction in the claims budget entirely covers the cuts libraries faced in the most recent budget. Read more in Wreckless Spending.
• Carter Cases: Money paid to settle due process claims for students with disabilities to receive legally mandated services where DOE has failed to do so grew from $131 million in 2012 to over $1 billion in 2023. ​Educational Services, covering professionals like speech, behavioral & physical therapists, contributed most significantly to the growth of cost from just $33 million in 2012 to $480 million in 2023. Often parents must find private providers because DOE does not provide enough specialists, especially in lower income, Black & Hispanic districts and DOE is required to pay for services that are often many times the cost of city employee rates.​ Read more in Course Correction. 

Read the report The Bottom Lines here.  

Governor Hochul, Majority Leader Stewart-Cousins and Speaker Heastie Announce Appointments to New York State's Commission to Study Reparations and Racial Justice

Governor Kathy Hochul, Senate Majority Leader Andrea Stewart-Cousins and Speaker Carl Heastie today announced their appointments to the Community Commission on Reparations Remedies. The Commission, formed through legislation signed in December 2023, acknowledges the horrific injustice of slavery and is tasked with examining the legacy of slavery, subsequent discrimination against people of African descent, and the impact these forces continue to have in the present day.

“As Americans, we have a solemn responsibility to reckon with our history and that includes understanding the painful legacy of slavery in New York,” Governor Hochul said. “We have assembled an extraordinary group of highly-qualified individuals to serve on the new Commission, and will review their final recommendations.”

Majority Leader Andrea Stewart-Cousins said, “The formation of the Commission to Study Reparations and Racial Justice represents not only an acknowledgment of the past but also a commitment to rectifying long-standing injustices. I am honored to appoint Dr. Darrick Hamilton, renowned economist and scholar; Dr. Seanelle Hawkins, a leader in community advocacy and engagement; and Linda Tarrant-Reid, an accomplished historian and activist, as our appointees. Their diverse expertise and profound commitment to justice make them invaluable to our mission. This initiative is more than a historical examination; it is a bold stride towards a fairer and more equitable New York. I am confident in their ability to perform their duties exceptionally on behalf of New Yorkers.”

Speaker Carl Heastie said, “I am honored to appoint Dr. Ron Daniels, Lurie Daniel Favors and Rev. Dr. Deborah D. Jenkins to the New York State Community Commission on Reparations Remedies. I have full faith in them and their fellow members of the commission as they take on the responsibility of examining our state’s history of slavery and how its legacy continues to impact the lives of Black New Yorkers today. I look forward to their report as we remain committed to dismantling centuries of racial, economic and institutional injustices across our state.”

Jennifer Jones Austin is the CEO and Executive Director of FPWA, an anti-poverty policy and advocacy nonprofit with 170 member organizations; its work is centered on economic opportunity and upward mobility. She is a radio host, an author, and public speaker, and sits on the board of many organizations including the National Action Network, the Fordham University Feerick Center for Social Justice, the Center for Law, Brain and Behavior at Harvard University, and the NYC Board of Correction for which she is Chair. Ms. Jones Austin is the chairperson and a commissioner of the NYC Racial Justice Commission, the first commission of its kind in the nation tasked with targeting and dismantling structural and institutional racism across the city. Ms. Jones Austin is also a member of The African American Task Force for Vaccine Equity and Education, which is dedicated to helping overcome their inequitable barriers Black communities face during the rollout of the Covid-19 vaccine; and she was a co-sponsor of the New York Police Department Reform and Reinvention Collaborative to end racialized policing and the criminalization of poverty. Ms. Jones Austin previously co-chaired the Mayoral Transition for Bill de Blasio and the NYC Procurement Policy Board. Ms. Jones Austin is an appointee selected by Governor Hochul.

Timothy R. Hogues serves as the Commissioner for the Department of Civil Service and President of the Civil Service Commission. He was nominated by Governor Kathy Hochul to serve in these roles in April 2022 and unanimously confirmed by the New York State Senate in June 2022. Prior to joining the Department of Civil Service, Commissioner Hogues served as the Personnel Commissioner for Erie County where he was responsible for overseeing services provided to over more than 130 appointing authorities and approximately 24,000 employees countywide through the implementation and maintenance of services that support and facilitate the recruiting, selection, hiring, development, and retention of local government and school district employees in accordance with Civil Service Laws and Regulations. Commissioner Hogues began this role after being appointed by Erie County Executive Mark Poloncarz in 2019. Commissioner Hogues is a proud graduate of University of Buffalo where he graduated with a B.A. in Business Administration and Management. Mr. Hogues is an appointee selected by Governor Hochul.

Linda Brown-Robinson is the Immediate Past President of the Syracuse Onondaga NAACP. A born and raised proud New Yorker and a native of Mt. Vernon, Linda’s activism first took hold upon relocating to upstate New York in 1968, where she joined a number of boards. She recalls that one of her first impactful boards was then known as the “Community Folk Art Gallery.” A former Board Member of FOCUS Greater Syracuse, and past member of the Executive Committee for the Onondaga County Democratic Committee, Ms. Brown-Robinson currently serves on the Democratic 5th Ward Committee. Ms. Brown-Robinson is a 2021 InterFaith Leadership Award recipient and was recently appointed as the NYS NAACP Western Region Director, where she oversees 11 Upstate NAACP Branches. Ms. Brown-Robinson is an appointee selected by Governor Hochul.

Darrick Hamilton, Ph.D. is a university professor, the Henry Cohen Professor of Economics and Urban Policy, and the founding director of the Institute on Race, Power and Political Economy at The New School. Dr. Hamilton served as a member of the economic committee of the Biden-Sanders Unity Task Force and he was a surrogate and advisor for the Bernie Sanders presidential campaign. He has advised numerous other leading Members of Congress, as well as various 2020 presidential candidates. Dr. Hamilton holds a Ph.D from the University of North Carolina, Chapel Hill, and a BA from Oberlin College. Dr. Hamilton is an appointee selected by Majority Leader Stewart-Cousins.

Linda Tarrant-Reid is an author, historian, freelance journalist, photographer and community activist. Although most of her career has been focused on literary pursuits, she is currently administrating grow! Eat, a project to grow fresh produce to distribute free-of-charge to the food insecure in Westchester County. The initiative is a program of The Lincoln Park Conservancy, of which Ms. Tarrant-Reid is the Executive Director. Ms. Tarrant-Reid Linda graduated from Hampton Institute (now Hampton University) in Virginia with a BA in English. Ms. Tarrant-Reid is an appointee selected by Majority Leader Stewart-Cousins.

Seanelle Hawkins serves as the President and Chief Executive Officer of the Urban League of Rochester, an affiliate of the National Urban League. Dr. Hawkins is an expert in community engagement and cultural change, advocacy, transitional and permanent supportive housing, fiscal stewardship, strategic planning, and staff development. Her nonprofit executive leadership includes over 20 years in various executive leadership roles for nonprofits and program consultancies in New York and Washington, DC. She also serves as an adjunct professor at St. John Fisher College in its doctoral program of Executive Leadership. A native of Brooklyn, NY, Dr. Hawkins received her bachelor’s degree from Syracuse University, master’s in strategic leadership at Roberts Wesleyan College, and her Doctorate of Education from the Executive Leadership Program at St. John Fisher College. Dr. Hawkins is an appointee selected by Majority Leader Stewart-Cousins.

Dr. Ron Daniels is Founder and President of the Institute of the Black World 21st Century (IBW), a progressive, African centered, action-oriented Resource Center dedicated to empowering people of African descent and marginalized communities. As the administrator for the National African American Reparations Commission (NAARC), IBW has emerged as a leading organization within the U.S. and global reparations movements. Dr. Daniels serves as the Convener of NAARC. Dr. Daniels holds a BA in History from Youngstown State University, an MA in Political Science from the Rockefeller School of Public Affairs in Albany, New York and a Doctor of Philosophy in Africana Studies from the Union Institute and University in Cincinnati. Dr. Daniels is a Distinguished Lecturer Emeritus at York College, City University of New York where he taught courses in Political Science. Dr. Daniels is an appointee selected by Speaker Heastie.

Lurie Daniel Favors, Esq. is the Executive Director at the Center for Law and Social Justice at Medgar Evers College. She is an author, activist and attorney with a long-standing commitment to racial and social justice. Ms. Daniel Favors earned her JD from New York University, where she was a Root-Tilden-Kern public interest scholar. Ms. Daniel Favors graduated from Pennsylvania State University with a BA in African and African American Studies, with a Minor in Spanish Language. She hosts the Lurie Daniel Favors Show on Sirius XM’s Urban View Network, a national, daily talk show that tackles issues of race, gender, culture, politics and the law. Ms. Daniel Favors is an appointee selected by Speaker Heastie.

Rev. Dr. Deborah D. Jenkins is Founding Pastor of Faith @Work Christian Church, Coop City, sustaining the ministry for almost 19 years with over 30 years of youth development experience which began as a Child Protective Services Caseworker, expanding to co-founding the Knowledge Development Center which provided quality afterschool services to Black and Latino males which included the New York Newsday Stock Market Game and other empowerment programming. Dr. Jenkins currently serves as NYPD Clergy Liaison in the 45th Precinct with a purpose to bridge the gap between community and law enforcement and works as an adjunct professor at John Jay College in the Public Administration Department. Dr. Jenkins earned her BA from Herbert H. Lehman College, her MA in Policy and Administration from Brooklyn College and her MDiv and DMin from New York Theological Seminary. Dr. Jenkins is an appointee selected by Speaker Heastie.

Legislation S.1163A/A.7691, passed by the Legislature and signed by Governor Hochul in 2023 acknowledges the significant role the institution of slavery played in the establishment and history of New York. The legislation established the community commission on reparations remedies, composed of nine members who are especially qualified to serve by virtue of their expertise, education, training, or lived experience in the fields of African or American studies, the criminal legal system, human rights, civil rights, reparations organizations and other relevant fields.

Prior to the American Revolution, there were more enslaved Africans in New York City than in any other city except Charleston, South Carolina, and the population of enslaved Africans accounted for 20 percent of New York’s population, while 40 percent of colonial New York households owned enslaved Africans. This was an integral part of the development of the State of New York, and the consequences of the institution of slavery – and subsequently, discrimination and systemic racism borne of that institution – can still be observed today.

The commission is tasked with examining the legacy of slavery and its lingering negative effects on people currently living in the State of New York, with the goal of issuing a report comprised of recommendations for appropriate action to address these longstanding inequities. In the process of compiling recommendations, the commission will hold public hearings to solicit input from stakeholders. This written report of findings and recommendations must be submitted to the temporary president of the senate, the speaker of the assembly, the minority leaders of the senate and the assembly, and the Governor of the State of New York no later than one year after the date of the first meeting of the commission.