In the News New York State

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1 This Week in New York This Week In New York/Page 1 Covering New York State and City Government A Publication of Pitta Bishop Del Giorno & Giblin LLC November 7, 2014 Edition In the News New York State New York Commissioner Office of Children & Family Services Governor Andrew M. Cuomo announced today that he has appointed Roberto Velez as Commissioner of the Office of Children and Family Services, where Velez will oversee the regulation of more than 21,000 child care providers that care for up to 708,000 children in New York State. Mr. Velez is the former Commissioner of the New York City Department of Probation and Chief Judge to the New York City Office of Administrative Trials and Hearings. He most recently served as Vice President for Corporate Compliance and Counsel for Acacia Network, Inc., a Latino-based network of agencies offering health, housing and economic development services to New York City residents. In that capacity, he is responsible for overseeing all contract, real estate, employment, and litigations matters related to the organization. In addition, Velez serves as a legal advisor to the Acacia Board of Directors. In January 2002, Mayor Michael Bloomberg appointed Mr. Velez to serve as Chief Judge to the New York City Office of Administrative Trials and Hearings, where he supervised administrative law judges and oversaw a budget of $3.8 million. In 2008, he was appointed to serve as Chair of the Environmental Control Board. In that capacity, Mr. Velez supervised 200 hearing officers in five borough offices. Prior to serving at the Office of Administrative Trials and Hearings and the Environmental Control Board, he held multiple positions at the New York City Department of Probation, including Chief of Staff, General Counsel, and subsequently, Commissioner of the Department of Probation. Mr. Velez is a graduate of New York University School of Law and Columbia College.

2 In the News New York City This Week In New York/Page 2 FEMA Commits $1.6 Billion to Bolster Sandy-Damaged Public Hospitals Four HHC hospitals: Coney Island, Bellevue, Metropolitan, and Coler to Share Grants New York City has secured a commitment of at least $1.6 billion in funds from the Federal Emergency Management Agency (FEMA) to repair and protect the City s public hospitals damaged during Hurricane Sandy. The allocation will fund improvements at four New York City Health and Hospitals Corporation (HHC) facilities: Coney Island Hospital in Brooklyn, Bellevue Hospital Center in Manhattan, Metropolitan Hospital Center in Manhattan, and Coler Specialty Hospital on Roosevelt Island. Specifically, the package will include reimbursement for repairs Sandy-related damage and funds for mitigation projects that will protect the hospitals from the impact of future extreme weather. FEMA funds will cover: $923 million for Coney Island Hospital. The project includes construction of a resilient critical services building that will house an Emergency Department and medical services such as x-ray, CAT scan, MRI, pharmacy, and labs. Mechanical services, such as emergency power generators, heating and cooling systems, and water pumps will also be installed in the new building. The hospital will also build a new 1,720-foot flood wall that will protect critical services on the current part of the campus to the level of a 500-year flood. Coney Island Hospital was forced to close on October 30, 2012, after floodwaters severely damaging its emergency department, imaging services, and numerous public and administrative areas. Two days after the storm, the hospital opened a 24/7 urgent care center and a pharmacy distribution center. By the end of January 2013, they re-opened all primary care and most specialty clinics in their original space, re-opened some med-surgical beds and began receiving ambulances again. By February 2013, the hospital s Tower Building had re-opened, along with most of its inpatient beds and imaging and laboratory services. $376 million for Bellevue Hospital Center in Manhattan. FEMA funds will reimburse HHC for repairs and mitigation work partially completed. It will also fund a new 2,350-foot flood wall that will protect the campus to the 500-year flood level, new storm and sanitary drainage pumps, and new flood proof elevators for the hospital s main tower.

3 This Week In New York/Page 3 Bellevue Hospital was evacuated for the first time in its history on October 31, On November 19, 2012, Bellevue was able to re-open several primary care clinics, 24-hour walk-in urgent care, and outpatient pharmacy services. On December 10, 2012, the hospital re-opened its emergency department in a limited capacity and, two weeks later, began receiving ambulances for non-critical cases. On February 7, 2013, Bellevue fully restored all services, resuming its Level 1 Trauma Center status and opening all 828 inpatient beds. $120 million for Metropolitan Hospital Center in Manhattan. This project includes almost $7 million for electrical repairs and $109 million for a flood wall that will protect critical infrastructure on the campus to the 500-year flood level. $181 million for Coler Specialty Hospital on Roosevelt Island. FEMA will fund replacement of a generator that was destroyed, reimbursement for repairs already completed to the electrical system, and a flood wall that will protect critical parts of the campus to the 500-year flood level. The new funding supplements the $142 million HHC already received from FEMA for emergency stabilization measures, partial repairs, and temporary flood barriers. Study Shows NYC HHC Faces Significant Fiscal Challenges New York City Health & Hospitals Corporation (HHC) faces a growing deficit that could total almost $2 billion in 2018, according to a policy brief by the Citizens Budget Commission (CBC). Despite HHC's importance, its fiscal condition is troubled, according to Fiscal Challenges Facing the New York City Health and Hospitals Corporation" released this week. In fiscal year 2013, HHC ran a deficit of $668 million and although final numbers for fiscal year 2014 have not been released, the estimated deficit is $645 million. The imbalance between revenues and expenditures is expected to worsen from $702 million in fiscal year 2015 to $1.7 billion in fiscal year CBC also noted that HHC's cash resources are being depleted and absent an aggressive gapclosing plan its cash reserves will be exhausted in fiscal year "HHC has navigated financial difficulties since its inception," said Elizabeth Lynam, CBC's Vice President and Director of State Studies. "If it is to succeed in the rapidly changing healthcare landscape its operations must be modernized."

4 This Week In New York/Page 4 The policy brief analyzes HHC's current financial plan and highlights four major challenges: Designing and Implementing Expenditure Controls - In September 2009, HHC embarked on a restructuring effort with 39 cost-saving initiatives totaling more than $300 million in anticipated annual savings. HHC reports achieving $230 million in savings from these initiatives in fiscal year 2013, but some proposed changes, such as the privatization of outpatient dialysis services, have not been achieved. CBC noted that HHC has identified $90 million in additional specific cost containment actions for the current fiscal year. However, its financial plan assumes another $200 million in savings in the current fiscal year and savings growing to $400 million annually in fiscal year According to CBC, to realize savings of that magnitude HHC will need to intensify its efforts to make service delivery more efficient and reduce unneeded hospital capacity. Effectively Managing MetroPlus - MetroPlus is a Medicaid managed care plan operated by HHC with annual revenues of $2.2 billion. According to CBC, the recent growth in MetroPlus revenue is due largely to its enrollment growth, which more than doubled to 467,823 from 2005 to This growth can be attributed to expanded Medicaid eligibility and State policies mandating managed care among those eligible. CBC recommended that MetroPlus should seek to retain more of its members' utilization at HHC facilities, primarily by attracting patients to in-house providers because of their high quality relative to others and their proximity to member residences. Adequately Financing Care for the Uninsured The CBC found that the federal Affordable Care Act increased the insured population, and decreased the cost of uncompensated care for HHC and other hospitals. However, an estimated 700,000 New Yorkers will still be left uninsured. Given its mission, HHC will likely continue to play a major role in caring for the uninsured. The fiscal strategies to support this mission include retaining current sources and promoting an equitable division of responsibility for the uninsured between HHC and the voluntary sector. CBC suggested that HHC advocate for available State tax exemptions and funding sources conditioned on greater participation by voluntary hospitals in caring for the uninsured. Creating a rational financial relationship with the City of New York CBC recommended that HHC and municipal leaders develop more rational and stable guidelines for funding HHC. Possibilities include capitated payments for the uninsured that reflect the cost of providing care and incentive payments for implementing care management models. "HHC is an enormously important resource for New York," said CBC President Carol Kellermann. "Restructuring its services to stabilize its financial condition should be a top priority for State and local leaders."

5 This Week In New York/Page 5 Briefs SUNY Seeks 17.5% Budget Increase The SUNY Board of Trustees this week approved seeking a 17.5% state aid increase for the fiscal year that starts April 1. The $300 million increase would fund negotiated salary increases, as well as advance new programs and services, and add nearly $33 million in more aid for the state s 30 community colleges college officials said. The board also approved a tuition increase of $300. The request comes after the State Division of Budget last month ordered other state agencies to keep their budgets flat for the next fiscal year. According to published reports, SUNY Chancellor Nancy Zimpher is also seeking a raise. This issue was not discussed at the Board of Trustees meeting. New York Gaming Facility Location Board to Meet on Monday The NY Gaming Facility Location Board will meet on Monday, November 10 th to privately discuss the applications from the 16 bidders seeking to operate the State s first casino. According to the Gaming Commission, no decision or announcement regarding casino gaming facility license recommendations is anticipated at this meeting. Long Island Association President and CEO Kevin Law chairs Facility Location Board. Other members of the Board are former NYC Comptroller William Thompson, attorney Dennis Glazer, Hofstra University President Stuart Rabinowitz, and former gubernatorial advisor Paul Francis. The Gaming Facility Location Board has employed the services of Taft, Stettinius & Hollister LLP to provide analysis of the gaming industry and assist with the comprehensive review and evaluation of the applications. The consultant has subcontracted with financial advisory firm Christiansen Capital Advisors, investment bank Houlihan Lokey, and gaming facility consultant Macomber International, Inc. Women s Equality Line on the Ballot The Women's Equality Party surpassed the 50,000 votes required to secure an automatic spot on the ballot, according to unofficial returns from the Board of Elections. With 99.6 percent of precincts reporting, the Women's Equality Party had 50,876 votes for Governor on its line. Based on the preliminary figures, the Stop Common Core party came up short in its effort to secure a ballot spot. The party had 49,545 votes on Election Day. Official results are pending.

6 This Week In New York/Page 6 Three Toys Inducted Into Toy Hall of Fame Bubbles, Little Green Army Men, and the Rubik s Cube were inducted into the National Toy Hall of Fame in Rochester, according to published reports. The Strong Museum of Play announced that the three toys beat out other finalists that included: American Girl Dolls, Fisher Price Little People, My Little Pony, Operation, Paper Airplanes, Pots and Pans, Slip N Slide, the Hess truck and Teenage Mutant Ninja Turtles. Last year, the rubber duck and chess were the 52nd and 53rd toys added to the list. The first class was inducted in 1998 and included Legos, Marbles, the Erector Set, Play Doh, Frisbee, Barbie, Monopoly, Crayola Crayons, Tinkertoys, Etch A Sketch, the Teddy Bear, and Duncan Yo-Yo. Save the Date: January 7, 2015 Opening of the 2015 Legislative Session Annual State of the State Address Master of Ceremonies: Featured Speaker: Attendees: Newly-Elected Lieutenant Governor Kathy Hochul Governor Andrew M. Cuomo 32 Republican State Senators 31 Democratic State Senators 106 Democratic Assemblymembers 44 Republican Assemblymembers State Attorney General Eric Schneiderman State Comptroller Thomas DiNapoli Legislation Signed by the Mayor Intro. 82-A, Sponsored by Council Member Lancman-Requires vehicles licensed by the Taxi and Limousine Commission to post signs informing passengers about the penalties for assaulting a driver including the maximum penalty of 25 years in jail.

7 This Week In New York/Page 7 Intro. 403-A, Sponsored by Council Member Reynoso-Requires the Department of Education to report information on school guidance counselors and social workers each year, helping to ensure all students have access to quality guidance services at their schools. This information will include the number of guidance counselors, the ratio of guidance counselors and social workers to students, the number of guidance counselors who work in more than one school, the number of guidance counselors and social workers providing services due to an Individualized Education Program (IEP), and other metrics related to school guidance. Intro. 438, Sponsored by Council Member Ferreras-Formally establishes the West Shore Industrial Business Improvement District on Staten Island. This BID will provide support to local businesses like sanitation and maintenance, signage and streetscape improvements, and security services. NYC Paid-Sick-Leave Fines The New York City Department of Consumer Affairs will soon be issuing fines to five companies for violating the City s paid-sick-leave law, according to published reports. The five violators have been accused of retaliating against employees for utilizing the benefit. Previously, the agency had received 245 complaints, all of which were mediated without fines. Of the 245 complaints, 35% were against professional services employers; 18% were against retail businesses; 13% were against health care companies; 9% were against restaurants; 6% were against manufacturers; and 4% were against hotels/hospitality businesses. The majority of complaints involved employers failing to notify workers about the law. About 10% alleged retaliation against workers who took paid sick time. Coming Up New York State Thursday November 13th Mental Illness in Correctional Settings Assembly Standing Committees on Correction and Mental Health Legislative Office Building, Roosevelt Hearing Room C, 2 nd Floor, Albany, 10 a.m. New York City Monday November 10th Subcommittee on Zoning and Franchises, 250 Broadway-Committee Rm, 16 th fl, 9:30 a.m. Subcommittee on Landmarks, Public Siting, and Maritime Uses, 250 Broadway, 16 th fl, 11 a.m.

8 This Week In New York/Page 8 Committee on Health, City Hall Council Chambers, 1 p.m. Int in relation to amending sex designation on birth records. Int in relation to reporting and an advisory board on gender marker change requirement. Committees on General Welfare and Veterans, City Hall Committee Rm, 1 p.m. T Oversight: Ending Veteran Homelessness and Hunger in New York City. Res Resolution calling upon the New York State Legislature to pass and the Governor to sign A7259-A, which would require a study regarding homeless female veterans in New York. Wednesday November 12th Committee on Land Use, City Hall Committee Rm, 11 a.m. Committee on Waterfronts, 250 Broadway Committee Rm, 16 th fl, 1 p.m. T Oversight - One-Stop Permitting for Waterfront Projects Committees on Public Safety and Fire and Criminal Justice Services, City Hall Council Chambers, 1 p.m. T Oversight - Examining New York City's Emergency Planning & Preparedness for Terrorist Attacks. Thursday November 13th Committee on Finance, City Hall Committee Rm, 10 a.m. Int in relation to authorizing an increase in the amount to be expended annually in the Fordham Road business improvement district, extension of the Fordham Road business improvement district, and amending the district plan of the Fordham Road business improvement district to change the method of assessment upon which the district charge is based. City Council Stated Meeting, City Hall Council Chambers, 1:30 p.m.

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