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Adams’ fiscal legacy, his successor’s likely inheritance

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The New York State Financial Control Board raised concerns that Mayor Eric Adams' budget for fiscal year 2026 underestimated key expenses.

BORED MEETING: Mayor Eric Adams is leaving a financial predicament for his successor — who, as of now, is looking more and more like Zohran Mamdani.

A board of the state’s top fiscal authorities this morning slammed Adams’ $115.9 billion “Best Budget Ever” for rendering New York City unprepared for hard financial realities and looming federal clawbacks.

The New York State Financial Control Board, chaired by Gov. Kathy Hochul and tasked with overseeing the city’s fiscal planning, raised its concerns at a perilous moment for the city’s financial future. The Trump administration is looking to cut federal funding for expensive social services as the city is already facing its slowest jobs growth outside a recession in decades, per a New York Times report. But New York’s financial leaders, including State Comptroller Tom DiNapoli and City Comptroller Brad Lander, warned the city’s financial woes predate Trump’s second term.

“Instead of planning for uncertainty, the Adams Administration has continued the opaque fiscal practice of underbudgeting of key services like shelter, special education, rental assistance, and overtime,” Lander wrote in his report. “Our estimates suggest that the June Financial Plan underestimates expenditures by $5.15 billion annually. That is not fiscal discipline — it is fiscal denial.”

The Citizens Budget Commission, a watchdog group that generally advocates for more conservative budgeting, also worried that Adams has left New York City ill prepared to backfill massive federal funding cuts.

“Rather than wisely save resources, control spending, and focus on efficiency, the city drove up spending by 7 percent, continued to underbudget programs, and added unaffordable spending during the budget process,” said Ana Champeny, CBC vice president for research.

Still, the FCB broadly approved of Adams’ budgeting and determined the city was in compliance with its standards — once again avoiding the stricter state oversight that was first implemented during the city’s fiscal crisis 50 years ago.

Adams acknowledged that sweeping funding cuts could produce a financial shortfall the city would struggle to bridge. Still, he appeared confident he’d be leading the legal fight against the White House, a battle that would likely outlast his first term.

“If dollars related to individual grants are clawed back, we’ll make a determination about how to proceed,” said Adams. “Along with other impacted cities and states, we will keep fighting in the courts for every dollar that has been awarded to the city.”

For Lander, who’s winding down his final months as the city’s money manager after losing in the mayoral primary, the opportunity to once again criticize Adams’ fiscal management comes as he’s viewed as a top contender to join the Mamdani administration, should the Democratic nominee maintain his lead in the polls.

The democratic socialist is not exactly running on fiscal restraint, and his plans for new spending are complicated by the $4.2 billion gap that’s been left for the next fiscal year, according to the city comptroller’s office.

Mamdani has said he would defend against likely federal cuts by raising revenue, primarily by increasing taxes on corporations and the ultra-wealthy. But Mamdani’s plans for building housing and rehabbing schools likely undercount their costs, and his tax plan is likely to face serious opposition in Albany, as POLITICO has reported. Mamdani’s campaign declined to comment.

In his response to the bevy of concerns raised by the board, Adams kept his remarks brief, thanking the members for their “informative” comments. Amira McKee & Jeff Coltin

A guard told Rep. Dan Goldman he couldn’t enter a federal jail in Brooklyn on Wednesday morning.

LOCKED OUT: Rep. Dan Goldman said today the Trump administration is once again violating the law by blocking him from visiting a federal jail in Brooklyn where ICE is detaining immigrants.

“I have a very specific statutory right under the law,” he said. “It’s a blatant violation of the law. We are in court right now suing the Department of Homeland Security for that purpose.”

Goldman was referring to his right to conduct oversight visits wherever the Department of Homeland Security is housing immigrants.

The Democrat waited outside the front gate of the Metropolitan Detention Center for 45 minutes this morning. He requested a visit last Friday, he said, but a spokesperson for the Bureau of Prisons told him Tuesday night they wouldn’t be able to accommodate him, without providing a specific reason. He came anyway to make a point and speak to the press.

Goldman as well as Reps. Adriano Espaillat and Nydia Velázquez were denied entry for an unannounced visit last week. DHS didn’t respond to a request for comment.

The visit today came a day after a federal judge ordered ICE to improve conditions for detained immigrants at 26 Federal Plaza in Manhattan — a site where Goldman and fellow members of Congress have also been blocked from visiting. With a nod to that, Goldman said congressional oversight is now more important than ever.

“What are they hiding?” said Goldman. “Now we know.” Jeff Coltin

Gov. Kathy Hochul says she will

HOCHUL’S GOT HIS BACK: Hochul hasn’t endorsed Mamdani even though he’s her party’s mayoral nominee, but she still found a way to show a little love.

As President Donald Trump escalates his attacks on the state lawmaker, Hochul insists she will be in Mamdani’s corner if he leads City Hall.

“He’s worked very hard with affordability front and center, something I believe in, and focusing on solutions,” the governor told NY1’s Bern Hogan. “If he becomes the next mayor, I will stand up and defend him against Donald Trump. You’re not going to come in and walk over our elected officials. So I’ll make it work. Trust us, NYPD, they know what they’re doing.”

Trump today once again lit into Mamdani, calling the 33-year-old democratic socialist “a communist.” On Monday, the president announced he would deploy the National Guard in Washington to address crime — and hinted that other big cities like New York could get the same treatment.

“I wish him well,” said Trump. “I may have to deal with him. I mean, it’s not even conceivable that could happen. Maybe he won’t win, but he won the primaries quite a bit. Shockingly, he won the primaries.”

Hochul has maintained an unusually steady working relationship with the Republican president. They have met twice in the Oval Office to discuss energy policy and the controversial congestion pricing toll program in Manhattan. Nick Reisman

Lt. Gov. Antonio Delgado called on Gov. Kathy Hochul to convene a special session to pass legislation to limit local law enforcement’s ability to collaborate with ICE.

DELGADO CALLS OUT GOV: Lt. Gov. Antonio Delgado took aim at Hochul today as he joined advocates at Foley Square to call for a special session in Albany to push back on the Trump administration.

“Don’t tell me that counties are acting as renegade counties, governor, when you have the ability to stop it, governor,” said Delgado. “Don’t tell me that we can’t close the loophole of making sure that ICE does not enter into agreements with the private prison industrial complex.”

In March, Hochul blasted “renegade” counties for signing agreements with ICE to detain undocumented immigrants.

Delgado appeared alongside state lawmakers, including state Sens. Julia Salazar and Jabari Brisport, at a rally organized by Citizen Action of New York, VOCAL NY and Make the Road New York. They called on Hochul to convene a special session to pass legislation to limit local law enforcement’s ability to collaborate with ICE and prohibit New York institutions from contracting with immigration detention centers.

The lieutenant governor, who’s running against Hochul in the Democratic primary, also took aim at the Democratic Party for not representing the working class.

“I’m so tired of my fellow Democrats talking about, ‘we’re worried about the rich leaving our state,’” he said. — Mona Zhang

BROOKLYN DODGERS: New York isn’t collecting millions of dollars in penalties from a real estate firm that hasn’t built promised housing at Atlantic Yards because the company threatened to sue them if they tried. (Gothamist)

PAY UP: Attorney General Letitia James sued the operator of Zelle, accusing the bank-owned payment platform of facilitating widespread fraud and failing to protect consumers. (POLITICO Pro)

CAUGHT ON CAMERA: Newly released footage shows New York correctional officers beating a man in custody as the system has seen two high-profile deaths in the last year. (NBC News)

Missed this morning’s New York Playbook? We forgive you. Read it here.

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Turkish Adams Donor Sentenced

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With help from Amira McKee

Erden Arkan, who pled guilty to a charge alleging that he worked with a Turkish government official to funnel illegal campaign contributions to Mayor Eric Adams, was sentenced to a year of probation today in Manhattan federal court.

THE FINAL STRAW? Construction executive Erden Arkan must not have friends in the Trump administration like Mayor Eric Adams does. So while the Department of Justice moved to dismiss the mayor’s case, the wheels of justice kept turning for Arkan.

The Turkish-American co-owner of KSK Construction Group was given a light sentence of one year probation today in Manhattan federal court. He’ll also pay a $9,500 fine and $18,000 in restitution after pleading guilty in January to giving 10 employees $1,250 each to donate to Adams’ campaign.

But even while accepting that he broke New York City campaign finance laws, Arkan’s lawyer Jonathan Rosen presented him as a victim of “an unprecedented act of prosecutorial discretion,” suggesting that federal prosecutors with the Southern District of New York wanted to salvage some sort of a win following the tumult and rounds of resignations over the dismissal of Adams’ case.

Rosen also suggested Arkan’s case never should have been brought in federal court in the first place, arguing he was “targeted… to serve some greater end in a bureaucratic power struggle over the Adams case.”

While an official from the Turkish consulate helped coordinate Arkan’s May 2021 fundraising event for Adams, Rosen said that Arkan “never had any knowledge of foreign interference” alleged by federal prosecutors. He maintained that neither the Adams campaign nor the Turkish consulate knew about Arkan’s straw donor scheme, which he’d cooked up himself.

Judge Dale Ho dismissed the arguments. While he conceded “it is true that there is some incongruency between the government’s handling of Mr. Arkan’s case and Mayor Adams’ case,” he was firm that “there is not a shred of evidence in the record” indicating that the prosecutors acted wrongly prosecuting Arkan.

Another related case hasn’t been resolved yet. Former Adams aide Mohamed Bahi pleaded guilty Tuesday to helping to organize a separate straw donor scheme for Adams’ 2021 campaign.

While Adams himself hasn’t been accused of coordinating straw donations, the practice has been a serious problem for his campaign. Adams’ old friend Dwayne Montgomery pleaded guilty last year along with other co-conspirators to giving Adams illegal donations, and THE CITY has reported on numerous examples of more apparent straw donations to Adams.

Rep. Dan Goldman, a former federal prosecutor, told Playbook earlier this week that this wasn’t an ideal outcome for Adams’ case.

“As a prosecutor, I never liked when, ultimately, the only people held accountable for their crimes were the lower level people,” he said. “But under the circumstances, when you’ve charged someone and there’s a legitimate reason to charge that person, the right thing to do is to finish off the case.” — Jeff Coltin

A bill introduced in the Assembly would require movie theaters to display the actual start time of a film.

LET’S ALL GO TO THE (ASSEMBLY) LOBBY: New York moviegoers might soon have an easier time skipping the increasingly lengthy block of advertisements and trailers shown before the film starts, if a bill introduced this week becomes law.

Assemblymember Clyde Vanel wants to require theaters to display the time a movie actually starts when promoting showings or selling tickets. His proposal comes as movies increasingly start as much as half an hour after the advertised time.

“For the consumer, this can have a real monetary and social impact,” he wrote in his memo accompanying the bill. “Consumers not only may leave obligations earlier than they needed to in order to see the motion picture, but they may also consume their snacks purchased at the theater prior to the movie beginning.”

“There is no justification for deceiving consumers,” he wrote, especially since moviegoers “cannot bring their own snacks to eat if they consumed their purchased snacks within the extremely long 30-minute preview period.”

The bill would not apply to broadcasts of the Assembly session — where starting within half an hour of the scheduled time would be a major improvement. — Bill Mahoney

Queens Borough President Donovan Richards promised to help Zohran Mamdani turn out Black voters in November.

NO ‘SHOOK ONES’: Queens Borough President Donovan Richards pledged today to help turn out Black voters for Zohran Mamdani in November, evoking both Martin Luther King Jr. and Mobb Deep in his enthusiastic endorsement.

The Democratic mayoral nominee’s policies — including a rent freeze and free and fast buses — are common sense, not socialism, Richards said in the borough that he and Mamdani both call home. Richmond Hill, Queens was the last stop of Mamdani’s “Five Boroughs Against Trump” tour.

“Count me in as a democratic socialist if it means that everyday New Yorkers will be able to afford this city,” Richards said, adding that civil rights icon King “was called a socialist and communist as well” and referencing hip-hoppers Mobb Deep by boasting that there are no “shook ones” in the borough, a reference to the group’s hit song. Richards had previewed his endorsement of Mamdani a day earlier.

One of Mamdani’s biggest weak spots electorally has been politically moderate Black voters in areas like southeast Queens. And while he now has Richards as a surrogate, Queens Democratic Party leader Rep. Greg Meeks has yet to endorse him. (A Meeks spokesperson did not respond today to a query on whether the House member plans to meet with Mamdani.)

Mamdani’s support in the primary was stronger in parts of the city that are heavily gentrified. Southeast Queens includes neighborhoods that have resisted being priced out.

Mamdani acknowledged the critical balance between creating homes for new residents without pushing out longer-term residents.

“One of the many things I appreciate about the borough president is how he has been able to chart a course of building more housing (though) not at the expense of displacing those who already live there,” he said. Emily Ngo

SEX WORK DEBATE: Andrew Cuomo went on the offensive today over Mamdani’s past support for state legislation that would decriminalize sex work in New York.

The former governor said in a statement that he spent years fighting iterations of the bill over concerns it would lead to an increase in sex trafficking and exploitation of vulnerable New Yorkers.

“Mark my words: This is the real world and if passed, this legislation will open the floodgates,” Cuomo said in the statement. “Mamdani may not remember the bad old days of New York City, where Times Square was seedy and crime infested and New Yorkers knew which neighborhoods to avoid at all costs. We do, and no one should be eager to return to that era.”

Cuomo’s stance was backed by Sonia Ossorio, executive director at National Organization for Women New York City. Ossorio has previously criticized Mamdani’s position on decriminalization.

“Full decriminalization doesn’t protect vulnerable people — it expands a market that thrives on exploitation, human trafficking, and crime in our neighborhoods,” she said in a statement.

Mamdani twice co-sponsored a bill that would decriminalize sex work and clear past arrest records related to prostitution while still allowing law enforcement to go after trafficking operations.

Campaign spokesperson Dora Pekec declined to say whether Mamdani still supports the concept and whether he would advocate for the legislation from City Hall if elected. But she noted that the Democratic nominee has pledged additional resources to assist victims of prostitution and sex trafficking.

“While Andrew Cuomo is only interested in ‘governing’ behind a phone screen, Zohran is committed to genuine public safety, including combatting sex trafficking,” Pekec said in a statement that referenced a new department Mamdani plans to create. “His Department of Community Safety will invest $40 million towards victims services including for programs like Safe Horizon, for which funding has been cut in past budgets.”

The issue of whether to decriminalize sex work has been the subject of heated debate over the years. Organizations like DecrimNY, a coalition of sex workers and various organizations aligned with the decriminalization movement, argue the changes would make sex workers safer by allowing them to report violence or unsafe working conditions to authorities without fear of arrest while delivering more autonomy to consenting adults. — Joe Anuta 

A new legal challenge seeks to block regulators from enforcing a new interpretation of school distance requirements in the state’s cannabis legalization law.

CANNABIS REGULATORS SUED AGAIN: A dozen cannabis dispensary licensees are suing the state over a flip-flop on the cannabis agency’s interpretation of the state’s 2021 legalization law.

“The consequences are staggering. Petitioners’ investments, often more than a million dollars, are now at risk” the petition reads. “Their livelihoods are being threatened.”

The petitioners are licensed under the Conditional Adult-use Retail Dispensary (CAURD) and Social and Economic Equity (SEE) licensing programs, which prioritize entrepreneurs with past cannabis convictions, women and minorities.

The legal challenge seeks to block regulators from enforcing a new interpretation of school distance requirements in the state’s cannabis legalization law, which would force licensees out of their dispensary locations that had been previously approved by the agency.

Agency about-face: Earlier this month, the Office of Cannabis Management notified more than 100 licensees that their dispensary locations could be impacted due to the agency’s misinterpretation of state law.

The licensees are asking the court to annul the agency’s new interpretation of the law, declare their locations compliant and block the state from taking any enforcement actions against them over the school distance requirement.

A spokesperson for the OCM said that the office does not comment on pending litigation.

The agency is proposing a legislative fix that would allow licensees to remain in their locations, but emphasized on its website that passing such legislation “is not a guarantee.” The state is also creating an $15 million applicant relief fund for up to $250,000 per applicant to help find new locations. — Mona Zhang

26 FED PLAZA: As fewer immigrants show up for their court hearings, arrests at 26 Federal Plaza’s immigration courthouses are nearing a standstill. (THE CITY)

GOV. CLEMENCY: Hochul pardoned a Laotian immigrant Friday to stop his deportation. (The New York Times)

CUT THE CHECK: Progressive Democrats in the New York Legislature are decrying Hochul’s $2 billion rebate program as fiscally irresponsible amid looming federal cuts. (Gothamist)

Missed this morning’s New York Playbook? We forgive you. Read it here.

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White House officials turn up the heat on Indiana redistricting

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Pressure is mounting on Republicans in Indiana to take up redistricting ahead of the midterms, with both White House officials privately pressuring lawmakers and a mysterious group urging voters to call their elected officials in support of it.

White House Intergovernmental Affairs Director Alex Meyer in his personal capacity has called several lawmakers in the state pressing them to redistrict, according to a person familiar with the calls granted anonymity to discuss them.

One lawmaker said to have received a call declined to comment.

The White House is also inviting Indiana Republicans to a meeting in Washington, according to invitations reviewed by Blue Light News. More than four dozen — including the state House speaker and Senate president — have agreed to attend and two have declined, according to a Republican close to the White House.

The White House did not immediately respond to a request for comment.

The calls are part of its broader strategy to use redistricting in order to gain an advantage in the midterms and help Republicans cling to their small House majority.

It’s not just the White House that’s amping up the pressure. MAGA faithfuls, like influencer Charlie Kirk, have also been telling Indiana lawmakers to get on board. In a recent post on X, Kirk asked if Indiana state officials are “going to ignore President Trump, the majority of their voters, and the GOP Grassroots across the country by REFUSING to redistrict Indiana’s Congressional Seats? Let’s hope they are better than that!”

At the same time, a recent robocall received by a Blue Light News reporter living in Indiana accuses Democratic Govs. Gavin Newsom of California and Kathy Hochul of New York of using redistricting with a goal of “ending the Trump presidency” and urges listeners to call GOP state Rep. David Hall and tell him to back the effort.

“We can stop these radicals by doing our own redistricting here in Indiana,” the call said.

The call went to residents of the district of Republican State Rep. Danny Lopez, who came out against redistricting. The narrator identifies the call as paid for by Forward America. There is little public information about the group.

Lopez declined to comment.

The intensive public and private pressure comes as Newsom pushes forward with his plan to offset the potential five-seat gain for Republicans in Texas. The Texas state legislature has been at a standstill since Democratic lawmakers left to prevent the state House from reaching quorum to pass the map. Abbott called a second special session on Friday, and Democratic lawmakers have indicated they are willing to return soon.

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Texas Gov. Greg Abbott immediately calls second special session for redistricting

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Texas Gov. Greg Abbott immediately called another special session to pass a new congressional map, after the first attempt failed due to Texas Democrats leaving the state to deny Republicans the ability to carve out additional GOP seats.

The second special will begin just two hours after the first special wrapped, at noon central time on Friday. Texas Democrats left the state nearly two weeks ago in protest of the redraw, which GOP leaders are pursuing at the request of President Donald Trump.

Abbott’s proclamation was largely the same as the first one, which lays out 19 agenda items, including redistricting and disaster relief for Central Texas flood victims.

“Delinquent House Democrats ran away from their responsibility to pass crucial legislation to benefit the lives of Texans,” the Republican governor said in a statement. “We will not back down from this fight. That’s why I am calling them back today to finish the job.”

Most Texas Democrats on the lam are stationed in Illinois but the stalemate appears to be winding down, with the House Democratic Caucus setting conditions for their return.

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