Office of the New York State Comptroller DiNapoli - This Week: New York Reverts to Negative Balance of Payments with Federal Government, Reflecting End of Pandemic-Era Aid

 

New York Reverts to Negative Balance of Payments with Federal Government, Reflecting End of Pandemic-Era Aid

With the historic, multi-year pandemic aid from the federal government mostly in the past, New York returned to a negative balance of payments with Washington for the first time since Federal Fiscal Year (FFY) 2019, according to a report by Comptroller DiNapoli. In FFY 2024, the state generated $353.5 billion in federal taxes and received $341.1 billion in federal spending. New York’s balance of payments amounted to a negative $12.4 billion. For every $1 in federal tax paid to Washington, the state received $0.97 in return, compared with a national level of $1.21.

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NYC Retail Recovery Uneven as Sales Increase, Job Growth Stalls

Retail spending in New York City bounced back quickly after the pandemic, but it has slowed and remains uneven, according to a report released by Comptroller DiNapoli. Clothing and food retailers saw modest employment gains, but other industries, especially furniture, electronics and general merchandise continue to shed jobs.

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Shareholder Proposal Presses Starbucks to Restore Independent Board Oversight of Labor Relations

Comptroller DiNapoli, New York City Comptroller Mark Levine and the Trillium Asset Management ESG Global Equity Fund have filed a shareholder proposal with Starbucks asking the Board of Directors to reestablish the Environmental, Partner, and Community Impact Committee — a standing committee of independent directors whose responsibilities would include overseeing policies and practices related to labor relations.

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Brothers Plead Guilty to Defrauding Medicaid

Comptroller DiNapoli, Albany County District Attorney Lee C. Kindlon, New York State Police Superintendent Steven G. James, and Acting Medicaid Inspector General Frank T. Walsh, Jr. announced that two brothers pleaded guilty to grand larceny in the second degree for using three Medicaid transportation companies to systematically defraud the program out of more than $1.6 million.

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Monterey Fire Department President and Daughter Indicted for Allegedly Stealing Department Funds

Comptroller DiNapoli, Schuyler County District Attorney Jeremy Hourihan, and New York State Police Superintendent Steven G. James announced that the president and interim treasurer of the Monterey Volunteer Fire Department and her daughter were indicted on charges of grand larceny in the third degree and official misconduct in relation to their alleged theft of $20,000 from the department.

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A G E N C Y   A U D I T S

• New York City Department of Citywide Administrative Services – Actions to Reduce Carbon Emissions From City Government Operations
• Department of Health – Medicaid Program: Oversight of Electronic Transmitter Identification Numbers
• Metropolitan Transportation Authority – Selected Aspects of the Metropolitan Transportation Authority Small Business Development Program
• Division of Criminal Justice Services – Oversight of Adult Probation Services
• Department of Labor – Labor Investigations in New York City (Follow-Up)

M U N I C I P A L   &   S C H O O L   A U D I T S

• Transparency of Fiscal Activities in Towns
• Big Indian-Oliverea Fire District – Board Oversight
• Broome County – Court and Trust
• City of Fulton – Clerk-Chamberlain’s Records and Reports
• Greene Central School District – Building Access
• Lawrence Union Free School District – Information Technology
• Town of Macedon – Ambulance Service Financial Operations
• Village of Moravia – Procurement
• City of Oneida – Bank and Receivable Control Account Reconciliations
• Town of Rotterdam – Transparency of Fiscal Activities
• Twin District Volunteer Fire Company – Credit Cards
• Town of Williamstown – Supervisor’s Records and Reports
• Woodhull Fire District – Financial Oversight

ALSO IN THE NEWS

• New York paid $12.4 billion more in federal taxes than it received in 2024

• DOJ talks major fraud conviction in Albany

• Getting domestic violence survivors access to help in New York

• State comptroller finds Albany’s budgets built on millions in unrealistic revenue

• Brothers admit to stealing more than $1.6M in Medicaid funds

• Beaver Dams mother, daughter indicted for allegedly stealing FD funds

• Why prediction markets might take a bite out of New York's tax revenue

Note: Some news links may require a paid subscription

P O S T   O F   T H E   W E E K

Attorney General James Joins Coalition Challenging Federal Rollback of Fuel Economy Standards

 

Despite Record-High Fuel Prices, Federal Administration Weakens Policy That Helps American Families Save on Gas

New York Attorney General Letitia James joined a coalition of 25 other states, counties, and cities in suing the National Highway Traffic Safety Administration (NHTSA) for rolling back critical money-saving fuel economy standards for vehicles. Earlier this week, the Trump administration sharply reduced efficiency standards for new vehicles, allowing new cars, vans, and pickup trucks to be even less fuel-efficient than they were at the end of the first Trump administration. Attorney General James and the coalition argue that by scaling back these standards, the administration is hurting consumers by depriving them of much-needed relief from rising gas prices and violating the law by refusing to set limits at the “maximum feasible” level. The coalition is asking the U.S. Court of Appeals for the District of Columbia to strike down the unlawful repeal.

“Piece by piece, this administration is attempting to dismantle the critical protections standing between the American people and climate disaster,” said Attorney General James. “Across the country, gas prices are skyrocketing and extreme weather is intensifying. There is no reason for the federal government to be giving handouts to big oil at the expense of American families, and we will keep fighting back to stop it.”

In 1975, during an energy crisis that caused gas prices to spike, Congress passed a law requiring NHTSA to set fuel economy standards for new vehicles at the “maximum feasible” level automakers can achieve in a given year. These corporate average fuel economy (CAFE) standards have historically reduced costs for American consumers by improving vehicles’ fuel efficiency and lowered gas prices by reducing fuel consumption. The standards have also helped protect the U.S. economy from global oil shocks and reduced pollution from tailpipes and refineries.

On Monday, the federal government announced a final rule to reverse progress made in recent years and drastically lower standards for carmakers. Under the new rule, vehicle manufacturers must produce cars with an average fuel efficiency of 34.9 miles per gallon by 2031 – a dramatic decrease from the over 50 miles per gallon goal previously set, and right around the level at which automakers are already functioning.

This new policy, which Attorney General James and the coalition called a “radical reinterpretation” of the law in their comment letter on the then-proposed rule, fundamentally misinterprets NHTSA’s statutory authority and illegally directs the agency to ignore the millions of electric vehicles already on the road when calculating fuel standards. Attorney General James and the coalition argue that ignoring a substantial portion of the nation’s vehicle fleet can only lead to a flawed, dramatically distorted analysis of the “maximum feasible” fuel economy levels, rendering the federal fuel-economy program effectively toothless and unable to protect consumers against rising gas prices or the ongoing global oil shock from the president’s war.

The coalition asserts that the administration is attempting to misrepresent its rule to the public, relying on flawed analyses of vehicle sales, fleet turnover, fuel savings, and vehicle safety to make a profoundly harmful and destructive policy look beneficial to society. The administration refuses to address the nearly $220 billion that Americans would have saved at the gas pump under the previous fuel economy standards – money that will instead benefit big oil companies. It also fails to consider the hundreds of billions of dollars in future damages from climate-driven disasters, arbitrarily projecting these costs at near-zero in its calculations.

In establishing these new standards, NHTSA even goes so far as to claim that the United States does not need to conserve energy at all. In fact, this is not the agency’s decision to make. Congress has already concluded that the nation needs to conserve energy and has directed NHTSA to act accordingly. Under the law, the agency has no legal authority to determine whether the nation should conserve energy; it must only calculate how much to conserve. In using this baseless assertion to justify its rule change, NHTSA is vastly overstepping its statutory authority. This claim also completely contradicts the president’s declaration of a nationwide energy crisis.

In this lawsuit, filed with the U.S. Court of Appeals for the First Circuit, the coalition alleges that NHTSA’s final rule is arbitrary and capricious and violates the Administrative Procedure Act and the Energy Policy and Conservation Act. 

Attorney General James joins in filing this lawsuit with the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawai‘i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia, as well as the Cities of New York and Chicago, and the Cities and Counties of Denver and San Francisco.

Senator Julia Salazar - Next Week's Free Tenant Support

 

BROOKLYN MAN INDICTED FOR MURDER IN FATAL STABBING

 

Alleged Attack on Two Male Victims Was Unprovoked

Bronx District Attorney Darcel D. Clark announced that a Brooklyn man has been indicted on Murder and other related charges for allegedly stabbing two men in a random attack, killing one of them. 

District Attorney Clark said, “In a shocking and unprovoked attack, this defendant allegedly stabbed two men he did not know multiple times. Sadly, one of the victims died from his injuries. We will get justice for this innocent victim and his grieving loved ones.” 

District Attorney Clark said that defendant Jeffrey Jorge, 37, of Brooklyn, was arraigned on September 29, 2026, on second-degree Murder, first-degree Manslaughter and Attempted Murder in the second-degree by Bronx Supreme Court Justice Pamela Goldsmith. Remand is continued. He is due back in court on November 17, 2026.

According to the investigation, on August 26, 2026, at approximately 3 p.m., the defendant approached two men who were standing in front of 2012 Davidson Avenue. Without provocation or warning, Jorge allegedly stabbed both men multiple times. Paramedics rushed the victims to the hospital, where 33-year-old Rashaun Shettlewood died from his injuries. The other victim suffered non-life-threatening wounds. The two victims did not know Jorge.

District Attorney Clark thanked NYPD Detective Carolyn Daley and NYPD Detective Michael Simpson from Bronx Homicide Squad for their work in the investigation.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty in a court of law.

Career Criminal Sentenced to 10 Years in Federal Prison for Possession with Intent to Distribute Meth

Case Is Part of the Homeland Security Task Force Initiative

A Fairview, Oregon, man was sentenced to federal prison for possession with intent to distribute methamphetamine.

Matthew Moultrie, 41, was sentenced to 10 years in federal prison and 4 years’ supervised release.

“Mr. Moultrie showed a complete disregard for the law by trafficking deadly drugs while armed, despite a prior drug conviction and repeated encounters with law enforcement,” said Robert A. Saccone, Special Agent in Charge, DEA Seattle Field Division. “This sentence holds him accountable and sends a clear message that DEA and our Homeland Security Task Force partners will work tirelessly to protect our communities. Through Fentanyl Free America, we are disrupting the fentanyl supply chain, reducing the availability of synthetic opioids, and saving American lives.”

“Removing drugs and guns from our streets is vital to protecting Oregon’s communities. When offenders repeatedly threaten public safety, we have a duty to hold them accountable,” said U.S. Attorney Scott E. Bradford for the District of Oregon. “This sentence reflects the serious harm Mr. Moultrie has caused—and the danger he would have continued to pose—to Oregonians.”

According to court documents, the investigation began when Drug Enforcement Administration (DEA) agents saw a courier from a Mexican drug trafficking organization (DTO) get in Moultrie’s car for an apparent drug transaction. The agents then stopped and searched Moultrie’s car and found about 220 grams of fentanyl, 65 grams of meth, and a gun.

Later, DEA agents and Multnomah County Sheriff’s Office (MCSO) deputies found Moultrie as he exited a motel room. Moultrie admitted to possessing a handgun and a half-pound of meth. Agents found 386 grams of meth, 5 grams of fentanyl, and two guns in his motel room.

Due to Moultrie’s criminal history, he is a career offender. His criminal history includes drug trafficking and firearms offenses.

On January 7, 2026, Moultrie pled guilty to possession with intent to distribute methamphetamine.

U.S. Attorney Scott E. Bradford for the District of Oregon made the announcement.

This case was investigated by the DEA, Multnomah County Sheriff’s Office, Oregon State Police and Clackamas County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Lewis S. Burkhart.

This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Portland comprises agents and officers from FBI, HSI, DEA, USMS, IRS-CI, ATF, USPIS, CBP, TSA, U.S. Coast Guard, Oregon Air, Army National Guard Counterdrug program, and Oregon-Idaho HIDTA with prosecution being led by the United States Attorney’s Office for the District of Oregon.

The Oregon-Idaho HIDTA program is an Office of National Drug Control Policy sponsored counterdrug grant program that coordinates with and provides funding resources to multi-agency drug enforcement initiatives.

 Drugs seized during the investigation.

Firearm seized from the defendant.

Seized drugs and firearm.

D.A. Bragg Announces Sentencing Of Joseph Morros For Fatal Shooting Of Tykeem Berry Outside Inwood Bodega

 

Manhattan District Attorney Alvin L. Bragg, Jr., announced the prison sentence of JOSEPH MORROS, 31, to 25 years-to-life in state prison for fatally shooting 30-year-old Tykeem Berry outside an Inwood bodega on December 15, 2022. On July 28, 2026, a New York State Supreme Court jury convicted MORROS on one count of Murder in the Second Degree and two counts of Criminal Possession of a Weapon in the Second Degree.

“Joseph Morros was sentenced to significant prison time for murdering Tykeem Berry – a young father who was out with his child – with gunfire that endangered the lives of customers and bystanders alike,” said District Attorney Bragg. “Mr. Berry’s life should never have been taken in such a cruel and abrupt way, leaving his family mourning their devastating and irreversible loss. We remain committed to driving down gun violence so no family has to endure the pain Mr. Berry’s loved ones have experienced.”

As proven at trial, on December 15, 2022, at approximately 4:00 p.m., Mr. Berry entered a bodega at the corner of Thayer Street and Nagle Avenue with his 10-year-old daughter. Shortly afterward, MORROS entered and began arguing with Mr. Berry. MORROS pulled out a gun during the confrontation. MORROS then exited the bodega, yelling for Mr. Berry to come outside and threatening him, before running back inside while pointing the gun at him. Mr. Berry began rushing at MORROS and as he was pushing him outside, MORROS fired the gun, striking Mr. Berry.

Mr. Berry collapsed in front of the bodega. He was transported to a hospital, where he was pronounced dead.

MORROS fled the scene and was arrested on December 19, 2022.

Assistant D.A.s Christine Keenan (Senior Trial Counsel) and Ashley Maldonado De La Fuente handled the prosecution of this case under the supervision of Assistant D.A. Nicole Blumberg (Chief of Trial Bureau 40) and Executive Assistant D.A. Lisa DelPizzo (Chief of the Trial Division). Investigative Analyst Patrick Sullivan, Trial Preparation Assistant Ava Kaufman and former Trial Preparation Assistant Troy McLean provided invaluable assistance in the case.

D.A. Bragg thanked the New York City Police Department (NYPD), particularly Detective James Marcinek, Detective Kevin Balsam and P.O. Joshua Elsasser.

Permits Filed for 3565 3rd Avenue in Morrisania, The Bronx

 

Permits have been filed for a nine-story mixed-use building at 3565 3rd Avenue in Morrisania, The Bronx. Located between East 168th and East 169th Streets, the through lot is also addressed as 1256 Washington Avenue. The nearest transit is the Freeman Street subway station, served by the 2 and 5 trains. Steven Westreich of Westorchard Management is listed as the owner behind the applications.

The proposed 96-foot-tall development will yield 174645 square feet, with 160,177 square feet designated for residential space and 14,468 square feet for community facility space. The building will have 286 residences, most likely rentals based on the average unit scope of 560 square feet. The concrete-based structure will also have a cellar, a 30-foot-long rear yard, and 94 open parking spaces.

Charles Mallea of Glass Architecture DPC is listed as the architect of record.

Demolition permits were filed last month for the single-story structure on the site. An estimated completion date has not been announced.