RECOVERY BUDGET: MAYOR DE BLASIO, SPEAKER JOHNSON, AND CITY COUNCIL REACH AGREEMENT ON THE FISCAL YEAR 2022 ADOPTED BUDGET

 

The Recovery Budget is a radical investment in working families that builds on strong reserves

 Mayor Bill de Blasio, City Council Speaker Corey Johnson, Council Finance Chair Daniel Dromm and members of the City Council today announced an agreement on the Recovery Budget, an on-time balanced City budget for Fiscal Year 2022 (FY22). The foundation for the $98.7 billion Recovery Budget is the strategic investment of stimulus funds that will drive New York City’s economic comeback and build a recovery for all of us.

 

"The Recovery Budget is a radical investment in working families. It will drive economic growth in every neighborhood, all while building on strong reserves and investing stimulus funds aggressively to put the pandemic behind us, once and for all,” said Mayor Bill de Blasio. “This budget is a historic investment in New York City and it’s exactly how we will achieve a recovery for all of us.”

 

The Recovery Budget meets five core goals: finishing the fight against COVID-19, building on strong reserves, boosting economic growth in every neighborhood, delivering an academic and emotional recovery for every student, and keeping all communities safe.

 

Finishing the COVID Fight

 

A recovery for all of us begins with fighting the COVID-19 pandemic. The City has spent more than $8 billion in the fight against COVID-19, administering over 9.2 million vaccination doses. The City’s aggressive and equity-driven grassroots vaccination campaign has driven down COVID cases, hospitalizations, and deaths to the lowest levels since the pandemic began. The Recovery Budget includes funding to finish the fight against COVID and strengthen the City’s public health infrastructure in the long-term.

 

In this Recovery Budget, the administration promoted public health by expanding the grassroots vaccination campaign and making investments to establish New York City as the public health capital of the world. That mission includes support for LifeSci NYC, a billion-dollar commitment over the next decade to create an estimated 40,000 jobs in this fast-growing sector.  

 

Building on Strong Reserves

 

Before New York City became the epicenter of the COVID-19 outbreak, the City had maintained record levels of budget reserves that were needed in the midst of the pandemic induced financial crisis to help balance the budget, prevent layoffs, and avoid disastrous cuts to critical programs and services. In Adoption the administration partnered with the City Council to add $500 million to the City’s first-ever Rainy Day Fund, which now holds nearly $1 billion. With $2.8 billion in reserves added since June, total reserves in FY22 are now $5.1 billion, with $3.8 billion in the Retiree Health Benefits Trust, $993 million in the Rainy Day Fund, and $300 million in the General Reserve. At their highest, NYC reserves totaled $6.1 billion at the peak of the economic cycle in Fiscal Year 2020.

 

The de Blasio administration has remained focused on strong fiscal management and savings, even when revenues were strong. The Adopted Budget achieves $4.0 billion in savings over Fiscal Years 2021 (FY21) and 2022 since last June – the second largest two-year savings total at Budget Adoption of this administration.  

 

Tax revenues exceeded expectations in FY21 by $2.1 billion, driven by personal income tax and corporate tax receipts. The tax revenue forecast for FY22 remains unchanged from the Executive Budget.  

 

Boosting Economic Growth

 

The Recovery Budget drives an economic recovery for all of us, boosting growth in every neighborhood.  The previously announced Executive Budget made a $30 million investment – the largest in city history – to promote tourism. It also offered direct support for small businesses, including grants, low-interest loans and commercial lease legal assistance. The New Deal-inspired City Cleanup Corps (CCC) is on pace to hire 10,000 New Yorkers this summer to clean and beautify our city. All of these investments are already driving economic growth.  

 

The Adopted Budget deepens these investments in economic growth by committing $11 million to NYC Business Quick Start, a program that will help slash red tape and help guide small businesses through City regulations.  

 

The Recovery Budget also includes the Juneteenth Economic Justice Plan to build generational wealth and tackle the racial wealth gap by:

• Expanding NYC Kids Rise with Universal NYC Baby Bonds, a program that gives every kindergartner a college savings account with at least $100 this September ($15M in FY22)
• Establishing four-year CUNY Scholarships at full scale for Black and low-income students ($4M in FY22)
• Providing paid internships in science, business, public health, and the green economy for students at Medgar Evers College to pair academic pursuits with an opportunity to make change and help our city recover ($500,000 in FY22)  

 

Lastly, As New York City recovers from the COVID recession and grapples with an evolving economy, the Recovery Budget will help hundreds of CUNY students and graduates advance toward career success--while boosting the short- and long-term outlook of our City’s economy:

• CUNY Career Initiative: The Department of Small Business Services will work with CUNY and a set of industry partners to deliver short-term training in high-demand fields leading to job placement for approximately 1,000 New Yorkers ($6.5M in FY22)
• Advanced Manufacturing Career Collective (AMCC): AMCC will create a pipeline of skilled, diverse talent into advanced manufacturing careers through educational and work-based learning experiences. The effort will engage and train an estimated 400 students in year one, scaling up to support over 1,000 New Yorkers annually. AMCC will also strengthen the overall ecosystem of MWBEs focused on advanced manufacturing ($4M in FY22)

 

Driving Academic Recovery 

This Recovery Budget makes crucial investments in New York City’s public schools to support students’ academic and social emotional needs as they recover from the impacts of the pandemic.  

This year, the administration established a path to universal free 3-K for All by fall 2023, expanded early childhood special education and Restorative Justice for Social Emotional Learning in middle and high schools, and strengthened special education services.

To support students and families over the summer, the administration launched Summer Rising – the first-ever summer program for all New York students in grades K-12 who wish to participate. This program will lay the groundwork for a full reopening this fall, providing students with a comprehensive summer experience that includes rigorous academics, social emotional supports, and fun enrichment programming. 

Also, the administration is launching the Universal Academic Recovery Plan, a bold, rigorous framework that will guide school communities and support student achievement during the 2021-22 school year and beyond.    

Building Recovery through Public Safety

Since last June, the administration has added more than $44 million to expand Cure Violence and the Crisis Management System. The NYPD has re-deployed an additional 200 officers performing administrative functions to the field full time, specifically assigned to high violence commands.  

In the Adopted Budget, the administration has made targeted investments to break the cycle of incarceration and reduce gun violence. This budget uses housing and employment as an anti-violence measure. That effort includes:

• Creating the Precision Employment Initiative to hire 1,000 people this summer in Mott Haven, Brownsville and South Jamaica who are most at-risk– violence prevention via employment and support services. ($24M in FY22)
• Providing reentry housing with healthcare and employment counseling for justice involved New Yorkers returning to the community ($57M in FY22)
• Expanding “Jails to Jobs” to provide more formerly incarcerated individuals, including those on State parole, with transitional employment ($6.6M in FY22)
• Providing peer mentorship for incarcerated individuals and those who are reentering with Crisis Management System Credible Messengers ($5M in FY22)
• Expanding the CMS-based Hospital Violence Intervention Program into new hospital locations to support victims of violence and their family and networks ($6M in FY22)
• Expanding CMS Services in the 40th and 44^th Precincts in the Bronx and providing additional CMS supports ($6M in FY22)

 

This is in addition to mental health and public safety investments from the Executive Budget including: expanding mental health crisis response citywide, expanding mobile treatment teams, community-based hate crime prevention and investments in the Advanced Peace program.  

 

Governor Cuomo Directs State Agencies to Prepare Emergency Assets as Strong Thunderstorms Are Expected to Impact New York State

 

Damaging Winds, Heavy Rain and Lightning Forecast to Impact Several Areas Across the State Today

Temperatures Will Cool Down but Threat of More Thunderstorms Will Persist on Thursday

 Governor Andrew M. Cuomo today directed State agencies to prepare emergency response assets as strong thunderstorms are forecast to move across the state Wednesday afternoon, bringing with them the potential for damaging winds, difficult travel conditions, localized flooding, and isolated power outages. Heavy rain and frequent lightning are also possible with these storms. Temperatures will continue to push into the 90s on Wednesday as the storms move across the state. Governor Cuomo urged New Yorkers to prepare for potentially hazardous weather and stay tuned to local forecasts for updated conditions.

"With high heat and humidity continuing to impact the entire state, we are also facing the threat of severe storms Wednesday that could bring heavy rain and high winds," Governor Cuomo said. "State agencies are on alert and ready to assist local partners if needed, and I'm encouraging New Yorkers to take the time to monitor local forecasts and help ensure loved ones are prepared as well."

Humid weather is expected Wednesday with scattered thunderstorms, mainly during the afternoon, which could produce damaging winds and heavy rainfall.  Ponding of water on roadways and standing water in low lying and poor drainage areas is possible.  Before the storms develop, temperatures are expected to reach highs in the lower 90s, and heat indexes will reach the mid-90s up to 100 in some areas.  Cooler weather is expected Thursday into the weekend with potential isolated thunderstorms and showers each day as a cold front will stall just south of the state.  Several heat advisories remain in effect for much of the state and additional advisories may be issued today before cooler temperatures arrive Thursday.

New Yorkers can view weather alerts in their area by visiting the National Weather Service website here.

186 Days and Counting - 'Happy Pride Everyone'

 

I am at Destination Tomorrow on East 149th Street in the Bronx presenting the founder and executive director Sean Coleman with a Proclamation. As the mayor of New York City with 186 days to go I have Proclaimed June 29, 2021 as Destination Tomorrow Day. 

The entertainment put on here was regal, and I'm just going to be floating on air while I am here, Let's hope there are no shooting here in the Bronx today, so I can make it out alive. I wanted to take Wednesday off, but those pesky reporters aren't going to let me. 

49th Precinct Council June Meeting

 

Presumptive Democratic Primary and November general election winner Marjorie Velazquez, 49th Pct. Council President Joe Thompson, Deputy Inspector Andrew Natiw, Detective Jay Sturdivant, 49th Pct. New Vice-President Hazel Mura, and Secretary Grace Lovag.

The 49th Precinct Council June meeting was one of the best attended meetings in years. this was a live in person meeting held at the Pines on Bronxdale Avenue. Tables and chairs were set up for about fifty people, but extra chair had to be brought in for the almost double that amount of attendees. 

The meeting opened with President Joe Thompson going over the agenda, and asking for prayers for longtime member, and former Vice-President Silvio Mazzella who could not attend the meeting. The Cop of the Month Award went to Police Officer Juan Sanchez, and Deputy Inspector Andrew Natiw, gave a not so nice report on rising crime in the precinct, but still lower than the Bronx or entire city. Elections for three vacant seats and other non-contested races were held, with Hazel Mura becoming the new Vice-President Elio Morales the new treasurer, and Andrea Siegal retaining her seat.

When the speakers list, followed by community reports were given there were an above average number of complaints for fireworks, loud music, other quality of life issues, and a question as to why the 49th Precinct was not attending Community Board 11 District Service Cabinet meetings, and full CB 11 monthly meetings. DI Natiw answered by saying he does not get invited to the Community board meeting by the District Manager. National Night Out Tuesday August 3rd was mentioned by President Thompson. 

Governor Cuomo Updates New Yorkers on State's Progress Combating COVID-19

 

Statewide 7-Day Average Positivity is 0.39%

42,477 Vaccine Doses Administered Over Last 24 Hours

362 Patient Hospitalizations Statewide

3 COVID-19 Deaths Statewide Yesterday

 Governor Andrew M. Cuomo today updated New Yorkers on the state's progress combating COVID-19.

"New York State is getting closer to defeating the COVID-19 pandemic for good every single day, but vaccinations remain key to our success and we need New Yorkers to step up and take the shot," Governor Cuomo said. "We're continuing to offer exciting incentives to people who take the vaccine across the state, and I encourage New Yorkers to take advantage of those opportunities. Getting vaccinated protects your friends, family and community, so everyone who hasn't taken the shot yet should do so today."

 

Today's data is summarized briefly below:

• Test Results Reported - 54,196
• Total Positive - 275
• Percent Positive - 0.51%
• 7-Day Average Percent Positive - 0.39%
• Patient Hospitalization - 362 (+16)
• Patients Newly Admitted - 53
• Patients in ICU - 91 (+2)
• Patients in ICU with Intubation - 42 (+0)
• Total Discharges - 184,783 (+38)
• Deaths - 3
• Total Deaths - 42,967
• Total vaccine doses administered - 21,088,810
• Total vaccine doses administered over past 24 hours - 42,477
• Total vaccine doses administered over past 7 days - 438,518
• Percent of New Yorkers ages 18 and older with at least one vaccine dose - 69.3%
• Percent of New Yorkers ages 18 and older with completed vaccine series - 63.7%
• Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 71.9%
• Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 65.1%
• Percent of all New Yorkers with at least one vaccine dose - 57.5%
• Percent of all New Yorkers with completed vaccine series - 52.6%
• Percent of all New Yorkers with at least one vaccine dose (CDC) - 59.7%
• Percent of all New Yorkers with completed vaccine series (CDC) - 53.7%

State Senator Gustavo Rivera - Marijuana in NY: Preparing for Licensing

 

Dear Neighbor,

Last night, I hosted the first event in my virtual workshop series, Marijuana in New York. This was the Preparing for Licensing edition, featuring Drug Policy Alliance and Women Grow. If you want to watch the recording you can head to my Facebook page or watch it on Youtube.

Attorney General James’ Statement at Commencement of Trial Against Various Opioid Manufacturers and Distributors

 

 New York Attorney General Letitia James today released the following statement at the commencement of the trial against multiple opioid manufacturers and distributors in Suffolk County State Supreme Court:

“The eyes of the world are on New York today as we prepare to lay bare the callous and deadly pattern of misconduct these companies perpetrated as they dealt dangerous and addictive opioids across our state. Thousands of New Yorkers have died and hundreds of thousands more have been ensnared by addiction, leaving a trail of destruction in tragedy through countless families and communities in every corner of New York. For more than two decades, the opioid epidemic has wreaked havoc on New Yorkers and Americans across the nation, but, today, the dangerous and deadly actions that led us here will no longer be kept quiet. As we fight to put an end to these companies’ unlawful conduct and hold them accountable for the consequences, we recognize no amount of money will ever compensate for the pain and destruction we have collectively experienced, but we hope to push every dollar possible into preventing any future devastation — by investing in prevention, education, and treatment programs. As always, our goal remains getting funds into communities devastated by opioids as quickly as possible.”

In March 2019, Attorney General James filed the nation’s most extensive lawsuit to hold accountable the various manufacturers and distributors responsible for the opioid epidemic. The defendants in the suit included Purdue Pharma, its affiliates, and the Sackler family; Janssen Pharmaceuticals and its affiliates (including its parent company Johnson & Johnson); Mallinckrodt LLC and its affiliates; Endo Health Solutions and its affiliates; Teva Pharmaceuticals USA, Inc. and its affiliates; and Allergan Finance, LLC and its affiliates. The distributors named in the complaint are McKesson Corporation, Cardinal Health Inc., Amerisource Bergen Drug Corporation, and Rochester Drug Cooperative Inc.

The cases against Purdue Pharma (and subsequently the Sackler family), Mallinckrodt, and Rochester Drug Cooperative are all now moving separately through U.S. Bankruptcy Court.

Owner And Principal Of Investment Firm Found Guilty Of Insider Trading And Investment Fraud Scheme

 

 Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that, following a two-week trial presided over by U.S. District Judge Edgardo Ramos, and approximately one hour of deliberations, DONALD BLAKSTAD, the owner and principal of a California-based investment firm, was found guilty on all counts for committing insider trading and a securities offering fraud scheme.  BLAKSTAD’s offenses yielded more than $7 million in criminal profits. 

U.S. Attorney Audrey Strauss said:  “As a unanimous jury found, Donald Blakstad used his connections to a company insider to gather inside information that he and his associates then traded on, raking in more than $6 million in illegal profits.  In addition, Blakstad defrauded investor clients out of more $1 million, funds he purported would be invested but he instead misappropriated, in some cases for personal expenses.  Now Donald Blakstad awaits sentencing for his crimes.”

According to the allegations contained in the Indictment and the evidence presented at trial:

BLAKSTAD was a stock trader and the owner and principal of an investment fund known as Midcontinental Petroleum Inc. (“Midcontinental Petroleum”), which purported to be in the business of soliciting investments in the energy industry.  Martha Bustos was a former certified public accountant who worked in the finance department at Illumina, Inc. (“Illumina”), a San Diego-based biotechnology company whose securities trade on NASDAQ.  By virtue of her employment at Illumina, Bustos had access to material nonpublic information about Illumina’s financial condition, including its earnings. 

On several occasions, from 2016 through 2018, BLAKSTAD obtained inside information about Illumina’s financial condition from Bustos before Illumina publicly announced its earnings and financial results.  As BLAKSTAD knew, Bustos owed a duty to keep inside information about Illumina confidential. 

BLAKSTAD, aware of Bustos’s breach of duty to Illumina, used this inside information to make profitable trades in Illumina securities shortly before Illumina’s earnings announcements.  At times, BLAKSTAD tipped his associates so that they could trade Illumina stock and options based on the inside information.  At other times, in order to avoid detection, BLAKSTAD arranged for his associates to purchase Illumina securities for BLAKSTAD’s benefit in accounts controlled by his associates. 

Following the public announcement of Illumina’s earnings, BLAKSTAD and his associates sold the Illumina securities at a significant profit, sometimes exceeding more than 2,000 percent.  In total, BLAKSTAD and his associates made more than $6 million in profits from purchasing and selling Illumina securities. 

In addition, from at least in or about 2015 through at least in or about 2019, BLAKSTAD devised and operated a securities offering fraud to fraudulently obtain more than a $1 million from a number of investors.  BLAKSTAD fraudulently induced victim investors to make up-front, lump-sum investments for securities issued by Midcontinental Petroleum, which funds BLAKSTAD then misappropriated, in substantial part. 

To facilitate the scheme, BLAKSTAD made false and misleading representations to investor victims regarding how their investment funds would be utilized.  During the scheme, at BLAKSTAD’s direction, victims transmitted their funds, including by wire transfer, into bank accounts that were controlled by BLAKSTAD.  Once he obtained these investor funds, BLAKSTAD did not use them for the purposes he had represented to investors.  Instead, BLAKSTAD diverted a substantial portion of victims’ funds to himself and to co-conspirators.  For example, BLAKSTAD used the funds to pay for a variety of personal expenses and for purposes that were unrelated to the business of Midcontinental Petroleum. 

BLAKSTAD also made a series of false and misleading statements to victims designed to avoid detection, perpetuate the scheme, and keep the victim funds he received as a result of the fraud.   

BLAKSTAD, 62, of San Diego, California, was convicted on all counts of the Indictment.  He was convicted of one count of conspiracy to commit securities fraud, two counts of securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud for his participation in the insider trading scheme.  He was also convicted of one count of conspiracy to commit securities fraud and wire fraud and one count of wire fraud for his participation in the securities offering fraud scheme.  The securities fraud counts and the conspiracy to commit wire fraud count each carry a maximum sentence of 20 years in prison.  The conspiracy to commit securities fraud and the conspiracy to commit securities fraud and wire fraud counts each carry a maximum term of five years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.

BLAKSTAD is scheduled to be sentenced before Judge Ramos, who presided over the trial, on October 28, 2021, at 11:00 a.m. 

Bustos pled guilty in June 2019 for her participation in the insider trading scheme.  Bustos, who is cooperating with the Government, has yet to be sentenced.

Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation.  Ms. Strauss also thanked the Securities and Exchange Commission, which brought a separate civil action.