Office of the New York State Comptroller DiNapoli - State Budget Faces Growing Budget Gaps, Growing Risks

 

State Comptroller DiNapoli Releases

Executive Budget Report

In his annual report assessing the proposed Executive Budget, Comptroller DiNapoli identifies risks and concerns that underscore the importance of taking action to address the trajectory of state spending and improve the state’s structural imbalance, while continuing to bolster the state’s rainy day reserves. Cumulative outyear budget gaps projected by the Division of Budget have increased to a total of $27.3 billion through State Fiscal Year 2028-29 and state spending is projected to rise at a rate that outpaces revenues.

“Uncertainty over federal funding and the ending of federal pandemic aid creates an urgent need to strengthen the state’s fiscal position,” DiNapoli said. “Federal funding provides the backbone of the safety net and funds for a wide array of essential services including health care, education, transportation and clean water programs. Potential cuts or significant policy changes in Washington may have a large impact on the state’s finances and on New Yorkers’ quality of life. Preserving state services and maintaining long-term budget balance will require a careful examination of the state’s spending trajectory on major programs in ways that do not harm services, but ensures their long-term fiscal viability.”

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Thousands of State Computers and Other IT Devices Unaccounted for or Stored With Lax Security

The state’s Office of Information Technology Services’ lax inventory records have led to thousands of computers and other costly information technology equipment being unaccounted for, and the agency destroys new and barely used devices rather than donating or selling them, according to an audit released by Comptroller DiNapoli.

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Former Avon Police Chief Pleads Guilty to Stealing Federal Funds

U.S. Attorney Trini E. Ross announced that the former Avon Police Chief pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to theft of funds related to a federal program, which carries a maximum penalty of 10 years in prison, and a fine of $250,000.

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Former West Carthage Treasurer Charged With Stealing Thousands of Dollars From the Village

The former Deputy Clerk-Treasurer of the Village of West Carthage was arraigned  for allegedly stealing over $3,000 from the village, Comptroller DiNapoli, Jefferson County District Attorney Kristyna Mills and New York State Police Superintendent Steven G. James announced.

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Municipal & School Audits

• Cuddebackville Fire District
• Town of Clifton Park
• Town of Trenton
• City of Auburn
• Town of Woodbury
• City of Norwich
• Town of Penfield

Audits

• Homes and Community Renewal
• Department of Health
• Department of Labor
• State University of New York
• Department of Health
• Office of Addiction Services and Supports

ALSO IN THE NEWS THIS WEEK

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• Child care deserts persist in upstate, according to state comp­troller’s report
  
  
• Former Avon police chief pleads guilty after stealing nearly $7k from Avon CSD
  
  
• Former West Carthage treasurer charged with stealing from village payroll
  
  
• Comptroller: State improperly paid $16.2 million in Medicaid claims

Post of the Week
Thomas P. DiNapoli

MAYOR ADAMS, DEP, HPD, AND PARKS ANNOUNCE NEXT STEPS ON DEVELOPMENT THAT WILL PROVIDE HUNDREDS OF CRITCALLY-NEEDED AFFORDABLE HOUSING UNITS, DEVELOP STATE-OF-THE-ART RECREATION CENTER

 

Request for Proposals Outline Bold, Multi-Agency Vision to Transform Underutilized Site in Hudson Square Neighborhood Into Mixed-Use Development 

  

Announced in Mayor Adams’ Fourth State of the City Address, Project Part of Ambitious “Manhattan Plan” That Will Add 100,000 New Homes in Borough Over Next Decade  

New York City Mayor Eric Adams, New York City Department of Environmental Protection (DEP) Commissioner Rohit T. Aggarwala, New York City Department of Housing Preservation and Development (HPD) Commissioner Adolfo Carrion Jr., and New York City Department of Parks and Recreation (NYC Parks) Commissioner Sue Donoghue announced the next steps with the 388 Hudson development that will result in a combination of hundreds of more affordable housing units for New Yorkers and a new, state-of-the-art recreation center for local residents in Lower Manhattan. The city is releasing a Request for Proposals (RFP) to advance a bold, multi-agency vision to transform an underutilized site in the Hudson Square neighborhood into a vibrant, community-focused mixed-use development. The 388 Hudson Street development is a component of Mayor Adams’ “Manhattan Plan,” first announced in his fourth State of the City address last month. The Manhattan Plan will include the Adams administration’s Midtown South Mixed-Use Plan, Gansevoort Square, public sites, and more to unlock opportunities to create 100,000 new homes in the borough, bringing the total number of homes in Manhattan to 1 million over the next decade. 

  

“To be the best city to raise a family, we need to build neighborhoods that have everything a family needs — starting with accessible public space and affordable housing,” said Mayor Adams. “388 Hudson highlights our administration’s bold, forward-looking version to transform our city into a ‘City of Yes for Families.’ With critically, needed affordable housing, a state-of-the-art recreation center, and a new public plaza, we are transforming Hudson Square into a model neighborhood that will be replicated throughout our city.” 

  

“This Hudson Square and West Village project is about making sure New York City works for everyone, everywhere,” said HPD Commissioner Carrion. “This area has almost no affordable housing, and we’re changing that by building homes that working people, families, and older adults can actually afford. At the same time, we’re bringing back space for the community to gather, stay active, and build connections by creating a top-tier recreation center. 388 Hudson is exactly how we develop a more inclusive and livable city.” 

 

“DEP is proud to partner with HPD and NYC Parks in reimagining this site to meet the needs of the neighborhood,” said DEP Commissioner Aggarwala. “This project will deliver much-needed affordable housing, recreation facilities, and public open space to the community. DEP is honored to play a role in revitalizing this corner of Hudson Square for New Yorkers.”  

  

“By combining affordable housing with a brand-new recreation center, this visionary project at 388 Hudson Street exemplifies how we can create a more affordable, equitable, and connected New York City,” said NYC Parks Commissioner Donoghue. “We’re not only addressing the urgent need for housing but also building a new recreation center where families can prioritize health, wellness, and community without added financial stress. This first-of-its-kind development reflects our commitment to ensuring that all New Yorkers, regardless of income, have access to the resources and opportunities they need to thrive. We’re proud to work alongside our partners at HPD to bring this transformative project to life.” 

  

The 388 Hudson mixed-use development is on the northern portion of a DEP-owned lot in the Hudson Square neighborhood, located at the southeast corner of the intersection of Hudson Street and Clarkson Street. Separately, the southern portion of the lot is currently in design with NYC Parks, DEP, and the Hudson Square Business Improvement District to build a new, public plaza with greenery, seating, and community gathering space. Currently zoned for manufacturing, the future mixed-use development site will undergo a rezoning to unlock its potential for residential use — maximizing affordable housing opportunities and dedicating significant space of approximately 45,000 gross square feet to the recreation center, which will span the cellar, first, second, and third floors of the new building. The recreation center will include an indoor pool, gymnasium, and a variety of other amenities and programming to provide recreation, as well as health and wellness opportunities year-round for community members of all ages and abilities. NYC Parks’ recreation center will be a distinct operating unit within the residential building, with dedicated street front access for recreation center members that will be separate from the residential entrance to the building.  

  

City agencies led a robust community engagement process that culminated with the creation of a Community Visioning Report that was released in April 2024. The community visioning process included both in-person and virtual workshops, tabling events around the neighborhood, and meetings with the community board and other stakeholders. Over 500 community members answered the project questionnaire and largely responded by asking for a modern, multi-story indoor recreational facility with the potential to offer amenities and programming that have been unavailable at the nearby Tony Dapolito Recreation Center, which had been closed due to the building’s condition. In response to the community’s vision, HPD and NYC Parks are now seeking proposals that will address that need by advancing the new, state-of-the-art recreation center. Throughout the process, the community will have an opportunity to provide input on recreation center programming through a community input meeting once a development team is awarded and on board. 

  

This RFP is open to all interested developers, from February 14, 2025, until May 9, 2025. Development teams responding to the RFP are strongly encouraged to consult the Community Visioning Report in preparing their submissions. RFP submissions will be evaluated on the quality and feasibility of the proposals in addition to how well they respond to the community’s vision. For specific details on requirements, evaluation criteria and how to participate, candidates should refer to the 388 Hudson Street RFP. 

  

The 388 Hudson project is part of the Adams administration’s commitment to creating more affordable housing on publicly-owned land. Thanks to a multi-agency effort, Mayor Adams recently celebrated surpassing the city's ambitious "24 in 24" plan to advance 24 affordable housing projects on public sites in 2024, ultimately creating or preserving over 13,000 units of housing. Delivering on a key promise in Mayor Adams' 2024 State of the City address, the city advanced 26 projects across all five boroughs in 2024 as the city continues to face a generational housing crisis and 1.4 percent rental vacancy rate. 

  

Under Mayor Adams’ leadership, the city is fulfilling additional 2024 State of the City housings commitments, including by creating the Tenant Protection Cabinet to coordinate across agencies to better serve tenants. The city has also taken several steps to cut red tape and speed up the delivery of much-needed housing, including through the “Green Fast Track for Housing,” a streamlined environmental review process for qualifying small- and medium-sized housing projects; the “Office Conversion Accelerator,” an interagency effort to guide buildings that wish to convert through city bureaucracy; and other initiatives of the Building and Land Use Approval Streamlining Taskforce.   

  

Mayor Adams had made historic investments toward creating affordable housing and ensuring more New Yorkers have a place to call home over the last three years. In June 2024, City Hall and the City Council agreed on an on-time, balanced, and fiscally-responsible $112.4 billion Fiscal Year (FY) 2025 Adopted Budget that invests $2 billion in capital funds across FY25 and FY26 to HPD and the New York City Housing Authority’s capital budgets. In total, the Adams administration has committed a record $26 billion in housing capital in the current 10-year plan as the city faces a generational housing crisis. In July 2024, Mayor Adams announced back-to-back record breaking fiscal years in both creating and connecting New Yorkers to affordable housing. Earlier this month, Mayor Adams celebrated another back-to-back record-breaking calendar year for producing critically-needed affordable housing across the five boroughs as the city faces a generational housing crisis. Last spring, the city celebrated the largest 100 percent affordable housing project in 40 years with the Willets Point transformation.  

  

Further, the Adams administration is using every tool available to address the city’s housing crisis. Mayor Adams announced multiple new tools, including a $4 million state grant, to help New York City homeowners create accessory dwelling units that will not only help them to afford to remain in the communities they call home, but also to build generational wealth for their families. In August 2023, Mayor Adams announced the issuance of Executive Order 43, requiring city agencies to review their city-owned and controlled land for potential housing development sites.  

  

Mayor Adams and members of his administration also successfully advocated for new tools in the 2024 New York state budget that will spur the creation of urgently-needed housing. These tools include a new tax incentive for multifamily rental construction, a tax incentive program to encourage office conversions to create more affordable units, lifting the arbitrary “floor-to-area ratio” cap that held back affordable housing production in certain high-demand areas of the city, and the ability to create a pilot program to legalize and make safe basement apartments.    

  

Governor Hochul Warns Consumers of E-zpass Text Message Scam

Reports of Consumers Receiving SMS Text Messages Being Presented as an Attempt To Collect Tolls

View Real Examples of Messages Received by Consumers

Governor Kathy Hochul is warning New York consumers of E-ZPass text message scams. Consumers have reported receiving SMS text messages attempting to collect tolls. These fake texts are often sent from an international number and request the consumer to reply with "Y" to receive a link and contain an unofficial website. Consumers should be aware that E-ZPass or Tolls by Mail will never send a text or email requesting sensitive personal information such as credit card, birthday, Social Security number or other personally identifiable information.

“Public safety is my top priority, which is why I’m urging New Yorkers to take caution against senseless scammers sending fake E-ZPass text messages in an attempt to collect money for fake, unpaid tolls,” Governor Hochul said. “Consumers should know that E-ZPass, or Tolls by Mail, will never send a text or email requesting personal, sensitive information.”

If you are unsure about a message you received, call E-ZPass directly at 1-800-333-8655 or Tolls by Mail at 1-844-826-8400. You may also directly access the official websites from your browser at: EZPassNY.com and TollsByMailNY.com.

If you receive a fraudulent or suspicious SMS text message of any kind and have questions, you can contact the New York Department of State’s Division of Consumer Protection Consumer Assistance Helpline at 1-800-697-1220, Monday to Friday from 8:30am to 4:30pm; excluding State Holidays. Consumer fraud complaints may also be filed at any time with the Federal Trade Commission at reportfraud.ftc.gov.

Secretary of State Walter T. Mosley said, “Scammers are getting smarter, and by using new technologies and tactics their messages may look legitimate. It’s important for consumers to know the warning signs that a message may be a scam attempt and what actions to take if they do receive a fraudulent message. I encourage all New Yorkers to follow our tips from the Division of Consumer Protection and remain extra cautious when receiving any message from an unknown sender.”

Tips to follow if you or someone you know receives a fraudulent SMS text message:

• Don’t reply to text messages from unknown numbers. It could lead to a scam. Be wary of unsolicited messages from unknown senders that request personal information or payments and don’t respond to the message.
• Don’t click on any links in the message or attempt to access a website through the text.
• Delete and report the message using your phone’s “report junk” option. Forward unwanted texts to 7726 (SPAM) and unwanted emails to your email provider. Use the reporting features that are built into devices or email platforms. Reporting suspicious phishing messages is one of the most efficient methods for protecting you as it helps identify new or trending phishing attacks.
• Block the sender’s email address or phone number.
• Remember, it’s always better to be cautious. If you’re unsure of the legitimacy of a message, avoid engaging with the sender.

Clicking a link from a fraudulent text message puts your personal information and money at risk. Scammers may be able to:

• Install ransomware or other programs in your device that can spy on your online activity or hold your device hostage by encrypting your data and demanding payment to unscramble it.
• Gain access to your personal or sensitive information — including passwords, credit card numbers, banking PINs, etc. This information can be used to take out loans or credit cards in your name or perform other fraudulent financial transactions.

About the New York State Division of Consumer Protection

Follow the New York Department of State on Facebook, X and Instagram and check in every Tuesday for more practical tips that educate and empower New York consumers on a variety of topics. Sign up to receive consumer alerts directly to your email or phone here.

The New York State Division of Consumer Protection provides voluntary mediation between a consumer and a business when a consumer has been unsuccessful at reaching a resolution on their own. The Consumer Assistance Helpline 1-800-697-1220 is available Monday to Friday from 8:30am to 4:30pm, excluding State Holidays, and consumer complaints can be filed at any time at www.dos.ny.gov/consumerprotection. The Division can also be reached via X at @NYSConsumer or Facebook.