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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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He wants Muslims out of the U.S., and he’s Blakeman’s opener

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Tennessee Republican Rep. Andy Ogles will be receiving an award at the Metropolitan Republican Club's annual gala.

THE ISLAMAPHOBE & BLAKEMAN: As Nassau County Executive, Republican Bruce Blakeman has welcomed Muslim residents with open arms.

He’s eaten at their Ramadan Iftar dinners, appointed the first Muslim chaplain to the county’s police force and talked about the value of Muslims as Nassau County county residents and Americans.

But as he tries to win a statewide race for governor, Blakeman is now aligning himself with a leader of the anti-Muslim faction of the national GOP — and he’s not responding to questions about it.

On Friday night, Blakeman will appear with Rep. Andy Ogles — the Tennessee Republican who has led the effort in Washington to “denaturalize” and “deport” Mayor Zohran Mamdani — at the Metropolitan Republican Club’s annual gala.

“Muslims don’t belong in American society,” Ogles has said. He’s also called Mamdani “Little Muhammad” and claimed that “denaturalizations and deportations are the only way to save the Big Apple.”

Blakeman’s team declined to comment on Ogles’ past statements or the gubernatorial candidate’s upcoming appearance with the House member.

Blakeman will deliver the gala’s keynote speech, and Ogles will be honored with the club’s Ronald Reagan Award for the Advancement of Individual Liberty. Also on the list of featured attendees are former Mayor Rudy Giuliani, Council Member Vickie Paladino and former Nassau County Bridge Authority Commissioner and pro-Israel influencer Emily Austin. Tickets start at $321.

The event’s host, the Metropolitan Republican Club, is often seen as the more mainstream counterpart to the city’s far-right New York Young Republican Club. The statewide New York State Young Republicans disbanded last year after POLITICO uncovered a trove of racist, homophobic and antisemitic chats involving members of the organization and other Young Republican groups around the country.

Ogles spoke at the New York Young Republican Club’s gala in December, where he said “naturalized illegal immigrants are polluting our politics” and “the new right must have courage to deport them,” a reference to his call for Mamdani’s deportation.

Husein Yatabarry, executive director of the Muslim Community Network, told Playbook remarks like Ogles’ can have a “huge impact” on the state’s roughly 1.7 million Muslim residents as they consider whether to engage in state politics.

“It’s sad to see that a lot of politicians are leaning into xenophobia and Islamaphobia and not looking at Muslims as part of their community’s fabric, but looking at Muslims as a way to get the most rude and heinous people behind you as a candidate,” Yatabarry said.

Ogles, who wrote a letter to the Department of Justice in October asking for Mamdani to be denaturalized, did not respond to a request for comment. He faces his own political battle this year, as a Democratic mayor has found fundraising success while hoping to topple Ogles in his deep-red district. Federal authorities are also reportedly investigating Ogles for potential campaign finance violations.

On the campaign trail, Blakeman often touts his strong electoral performances in purple Nassau County when speaking of his electability statewide. He easily won reelection last year in what was otherwise a bleak year for Republicans in New York.

But his Friday night appearance won’t be the first time he’ll find himself alongside figures from the extreme corners of the GOP. Blakeman was the keynote speaker at an event honoring John Eastman, an attorney who was disbarred in California last week for his efforts to overturn the 2020 election. When Blakeman’s running mate, Madison County Sheriff Todd Hood, spoke at a Buffalo-area political club led by a man who called Mamdani “vermin,” the Nassau County executive didn’t seem to mind.

“Mayor Mamdani is a disgrace,” Blakeman said in a statement at the time. “He is anti-American, antisemitic, and anti-Cop.” Jason Beeferman

FROM THE CAMPAIGN TRAIL

House Majority PAC did not announce any investments for advertisement in New York City as Democrats guard Reps. Tom Suozzi and Laura Gillen seats.

PAC IT UP: House Democrats’ biggest super PAC touted its “largest early investment” in the organization’s history, with a notable omission — New York.

House Majority PAC’s announcement earlier today of an initial $272 million spend on advertisements includes zilch in the notoriously expensive New York City media market, where Democrats are protecting Reps. Tom Suozzi and Laura Gillen on Long Island and attempting to flip Rep. Mike Lawler’s seat just north of the city in NY-17.

Democrats, fear not. Money is on the way, according to HMP.

“Today’s initial reservations prioritize markets where rates increase significantly and there will be more reservations to come,” the super PAC’s communications director CJ Warnke said in a statement. “HMP plans to invest heavily to flip districts like NJ-07 and NY-17.” (The NYC media market covers Republican Rep. Tom Kean in New Jersey’s 7th District as well.)

National Democratic groups are working from a much smaller electoral map in New York after flipping four seats two years ago. Last cycle, HMP’s initial reserve included $16 million in New York City and $5 million in markets further upstate.

Meanwhile, the Congressional Leadership Fund — the House GOP’s main super PAC — on Thursday also released its initial advertising reservations, which the group similarly described as its “largest ever.” That $153 million investment includes $18.6 million in New York City. CLF also said it is putting money into Albany ($2.1 million), Binghamton ($1.8 million) and Syracuse ($658,000), markets that cover Democratic Rep. Josh Riley’s district — another seat that Republicans have their eye on.

Last cycle, CLF’s initial reservation included $20 million in New York City and $8 million in markets elsewhere in the state.

“House Majority PAC isn’t even spending one dollar to defend vulnerable Dem members Tom Suozzi, Laura Gillen, Josh Riley & [New Jersey Rep.] Nellie Pou,” CLF spokesperson Lydia Hall said in a statement. “They’ve given up on these incumbents while funding other offensive fantasies across the country.” Madison Fernandez

From the Capitol

The Trump administration's executive order reclassifies state-licensed medical marijuana as less dangerous.

SCHRÖDINGER’S CANNABIS: New York’s beleaguered medical cannabis program can breathe a sigh of relief today after the Trump administration rescheduled medical cannabis through an executive order. Overnight, they went from dealing in a Schedule I, federally illegal substance to one that has a pathway to federal regulation under Schedule III.

What does this do for New York’s medical cannabis producers? First off, they will no longer be subject to an onerous federal tax code that barred them from taking typical business deductions like employee salaries. And starting next week, they’ll be able to register with the Drug Enforcement Administration — a dramatic shift for an industry that was viewed by the federal government as illegal drug traffickers.

The cannabis industry in New York and beyond is cheering the move as normalizing medical use of the substance. While the order doesn’t immediately change the status of the state’s adult-use market, where anyone at least 21 years old can legally shop, it does signal that the administration will likely take steps to do so this summer.

Beyond that is where things get a little murky. “There are a lot more questions coming out of this order than there are answers,” said Katie Neer, a cannabis regulatory lawyer who represents the New York Medical Cannabis Industry Association.

It could make it easier for the cannabis industry to access financial services, though that remains to be seen. And it could draw more capital to New York’s medical cannabis operators, where there are 10 licensees that are not yet operational. It could also enable New York’s medical cannabis operators, who are under one of the strictest programs in the nation, to export their products.

“It creates a market across the world for New York’s pharmaceutical [cannabis] products … to be exported internationally,” said Adam Goers, senior vice president of corporate affairs for New York medical cannabis operator Columbia Care. In terms of interstate commerce? “We’ll see how that plays out.”

New York’s medical cannabis program launched in January 2016 with 10 licensed operators. Eight of those are still operational, and the state issued licenses to 11 new medical operators more recently.

For now, even as they welcome the federal shift, cannabis companies will be tasked with figuring out the confusing legal complexities moving forward. Some of New York’s medical marijuana businesses also sell products in the adult-use market, which creates a quandary when it comes to figuring out their taxes, and more.

“It’s Schrödinger’s cannabis, right?” said Mike Feldman, general counsel of Nabis, a cannabis distributor in New York. “It is sitting in a warehouse, and it is both Schedule I and Schedule III at the same time.” — Mona Zhang

TRAIN TROUBLES — A dispute between Amtrak and New York’s Metropolitan Transportation Authority threatens the full rollout of new Acela trains, Amtrak said in a lawsuit that represents the latest transit dispute between President Donald Trump’s and Gov. Kathy Hochul’s administrations.

The suit, filed in Manhattan federal court, asks a judge to order Metro-North to give Amtrak access to the tracks, Blue Light News Pro reports.

Amtrak said Metro-North is blocking its ability to test new trains because of a dispute between the two railways over liability for damage to an overhead power line that Metro-North blames on one of Amtrak’s NextGen Acela trains.

In a statement, MTA suggested Amtrak is trying to distract from another ongoing dispute where MTA says Amtrak is holding up expansion of commuter service to Penn Station.

In the lawsuit, Amtrak reveals an issue with its new Acela trains tangling with MTA infrastructure near a bridge in Westport, Connecticut during previous tests. Similar infrastructure problems — involving the interaction between overhead power lines and a train pole that draws energy from them — caused massive delays for commuters in New Jersey two summers ago. The Garden State and Amtrak were able to work through their issues; this lawsuit against New York suggests a broken relationship between Amtrak and Empire State officials. — Ry Rivard

IN OTHER NEWS

BILLIONAIRE BLUES: Citadel CEO Ken Griffin suggested the hedge fund might halt its planned New York City expansion after Mamdani filmed a video at his Manhattan penthouse to announce a new tax on second-homes worth over $5 million. (The Wall Street Journal)

DELAY NOW, PAY LATER: Mamdani’s team presented Hochul’s administration with a plan to delay pension fund payments in an effort to save at least $1 billion as New York City faces a multibillion-dollar budget gap. (The New York Times)

ZONE OF INTEREST: Unions are meeting with Mamdani’s administration to push for a veto of the buffer zone bill, which keeps protesters away from schools and educational facilities, as the mayor’s decision deadline nears. (THE CITY)

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

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Hakeem Jeffries finally gets a signature win

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Hakeem Jeffries finally gets a signature win

Allies say the House Democratic leader’s redistricting counteroffensive showed he’s worthy of stepping into Nancy Pelosi’s shoes…
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Oversight members split over whether to pardon Ghislaine Maxwell, committee chair says

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Oversight members split over whether to pardon Ghislaine Maxwell, committee chair says

The only convicted associate of Jeffrey Epstein has said she would testify to Congress if granted clemency — a power held solely by the president…
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