FY 2027 Executive Budget Hearing
Committee on Transportation and Infrastructure | Committee on Consumer and Worker Protection | Committee on Economic Development | Committee on Finance · May 29, 2026 · 5hrs 56m
Source: https://hearinghearings.nyc/hearings/committee-on-transportation-and-infrastructure-fy-2027-executive-budget-hearing/

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Good morning. Welcome to the New York City Council Executive Budget Hearing on the Committee on Finance, joint with the Committee on Transportation and Infrastructure, joint with the Committee on Economic Development and joint with the Committee on... sorry, there is Economic Development and... the other one.

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Consumer and Worker Protection. Apologies. At this time, no food or beverages are allowed in this room and please do not approach the dais. Thank you for your cooperation. Chairs, you may begin. Great. Thank you.

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Oh, I always forget to do that.

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Good morning and welcome to the fourth day of the Executive Budget Hearings. I am Council Member Linda Lee. Today's hearings will begin with the Department of Transportation, followed by the Department of Consumer and Worker Protection and the New York City Economic Development Corporation. So we have a very fun day ahead of us.

I am pleased to be joined by my colleagues who are here with us today, and also especially our Majority Leader Shaun Abreu, who is the Chair of the Committee on Transportation, and we have been joined by Council Members Juan, Restler, Lewis and Wong. I think that is it for now. Welcome to Commissioner Mike Flynn, you and your team. Thank you all for joining us today for today's hearing and answering our questions.

On May 1, 2026, the administration released the Executive Financial Plan for Fiscal Years 2026 to 2030, with a proposed Fiscal Year 2027 budget of $124.7 billion. The Department of Transportation's proposed Fiscal Year 2027 budget represents 1.3% of the administration's proposed Fiscal Year 2027 budget in the Executive Plan, and this is an increase of $78.4 million, or 5%, from what was originally budgeted in the preliminary plan. This increase results from several actions, including money added for several new needs, including funding for a Bus Action Plan that has additional City funding of $169 million and 70 headcount positions in Fiscal Year 2027, $30 million and 89 new positions in Fiscal Year 2028, $34 million and 103 positions in Fiscal Year 2029 and $35 million and 104 positions in Fiscal Year 2030.

There was also money added for cycling and micromobility, which includes City funding of $11.2 million and 45 positions in Fiscal Year 2027, $8.6 million and 52 positions in Fiscal Year 2028, growing to $22.8 million and 54 positions by Fiscal Year 2030. There were also several budget adjustments due to fuel costs. There was an addition of City funding that was baselined starting in Fiscal Year 2027 for heat, light and power costs related to the Staten Island Ferry. As of April 2026, the headcount is 647 less than their Fiscal Year 2026 budget headcount.

In the Council's preliminary budget response, the Council identified a few areas related to where the City could allocate additional resources that would provide either additional revenue or expense savings. The budget response called on the administration to reflect the annual expense savings of $5 million from re-estimates of underspending in the Bureau of Bridges. The Council also identified more than additional revenue from increased enforcement of truck violations, expansion of the red light camera program and renting space underneath the Brooklyn Bridge and collection of parking fines. My questions will largely focus on the automated enforcement unit, camera savings, red light camera revenue, vacancy reduction, Vision Zero and anticipated revenue from franchises. And I want to turn it over to my co-chair for this hearing, Majority Leader and Chair Shaun Abreu, for his opening statement. Thank you.

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Good morning and welcome to the Committee on Transportation and Infrastructure's joint hearing with the Committee on Finance on the Fiscal Year 2027 Executive Budget for the Department of Transportation. My name is Shaun Abreu and I chair the Committee on Transportation and Infrastructure. I want to begin by thanking the representatives from the New York City Department of Transportation for appearing before this committee, as well as my colleagues, advocates, labor representatives, community organizations and members of the public who continue to engage on transportation issues that affect millions of New Yorkers every single day. I have emphasized that effective and efficient transportation is vital for economic growth, social mobility and commerce. Transportation is not simply about moving people from one place to another. It is about economic opportunity, public safety, accessibility and quality of life in our City, whether New Yorkers are commuting to work, bringing their children to school, operating small businesses or accessing health care and essential services. They depend on a transportation system that is reliable, equitable and safe.

Today we will hear from the Department of Transportation on its Fiscal Year 2027 Executive Budget and its commitments as presented in the Executive Capital Plan for Fiscal Years 2026 to 2030. The Executive Capital Plan totals $13.8 billion, 3.7% less than the total for the same period presented in the preliminary capital plan. The department's planned commitments comprise 11.8% of the City's total Fiscal Year 2026 to 2030 capital plan.

At our preliminary budget hearing, we pressed DOT to adequately fund the Streets Plan, so as to meet its mandate. In this Executive Plan we see additional funding. At our preliminary hearing, we urged the administration to include more funding for public realm programs such as Open Streets so they can expand beyond their current levels. In this Executive Plan, we see additional funding. At our preliminary hearing, we beseeched the administration to include additional resources to help fill our potholes after this historic winter. In this Executive Plan we see additional funding. At the preliminary hearing, we implored the administration to include more funding to help reduce the alarming trend of longer waits for street light repairs. In this Executive Plan we see additional funding.

Is this funding going toward improving the specific problematic areas? Is it enough to accomplish all the basic and necessary functions the agency is supposed to carry out? I look forward to digging into those details today. As chair, I want the hearing to focus not only on accomplishments but also on accountability. New Yorkers deserve transparency regarding project timelines, funding decisions, agency coordination and measurable outcomes.

Communities across the City continue to raise concerns about dangerous intersections, traffic congestion, delayed street redesigns, accessibility barriers and the equitable distribution of transportation resources. These concerns require serious attention and concrete action. As Jacob Javits once said, a budget is not just a collection of numbers, but an expression of our values and aspirations. I look forward to better understanding how this year's Executive Budget can and will meet legal requirements and more effectively serve communities citywide.

Before we begin, I would like to thank Council staff for their hard work on preparing for this hearing. I want to acknowledge Ginger Paul, to my left, Principal Financial Analyst of the committee; Dan Croup, Assistant Director of the Finance Division; Cheema, Deputy Director of the Finance Division; Theodore Miller, Committee Counsel; Sarah Townsend, Committee Counsel; Kevin Kotowski; and John Brazil, Senior Policy Analyst. And of course my staff, including Lisa Quickly, my deputy. With that, I will pass it back to Chair Lee.

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In the future. We have also been joined by CM Epstein. Before we get started, just a couple of logistical things. As a reminder, I just wanted to let everyone know that for this year's Executive Budget, because the hearings are delayed and we need to scrunch everything into a shorter period of time, we are doing the

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public testimony all on one day, which should be fun, on June 10 beginning at 9:30 a.m. So public testimony is June 10 at 9:30 a.m. Join us, please, because we want to hear back from the public. We have been sending out emails and notifications, but if you guys could tell your folks that would be great as well. And now I will turn it over to Committee Counsel to swear in the witnesses for their

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Wonderful. Well, good morning and thanks so much, Chair Lee, Chair Abreu and members of the Committees on Transportation and Infrastructure and Finance.

Mike Flynn, Commissioner of the New York City Department of Transportation. I am joined today by First Deputy Commissioner Margaret Forjani, Acting Chief Administrative Officer Igor Yaroslav, Deputy Commissioner of Transportation Planning and Management Erik Beaten and Assistant Commissioner for Intergovernmental and Community Affairs Rick Rodriguez. Thank you for the opportunity to testify on behalf of Mayor Mamdani on DOT's Fiscal Year 2027 Executive Budget and Fiscal Year 2026 to 2035 Capital Plan.

As Mayor Mamdani announced, this Executive Budget puts forward a strong budget during a tough fiscal climate that is balanced while also protecting the daily services New Yorkers rely on. And I apologize if I go a little quickly because I know we are tight on time. This budget will support DOT's focus on our mission to provide for the safe, equitable and sustainable movement of people and goods and create public spaces that strengthen our communities. We appreciate the Mayor's continued investment in DOT, enabling us to maintain our infrastructure programs and essential operations to help all New Yorkers and millions of visitors move around our City. The Executive Budget advances the Mayor's commitment to make New York City transportation safer, more affordable and more reliable for working families through investments in street safety conditions, transit accessibility, freight mobility and public realm improvements. It continues to deliver core services New Yorkers depend on every day while maintaining strong fiscal stewardship. This budget supports the City's long-term economic vitality by investing in safer streets and faster buses, modernizing critical transportation assets and delivering capital projects efficiently and responsibly. It remains focused on achieving measurable results for New Yorkers across all five boroughs while supporting the administration's broader goals of affordability, accessibility, sustainability and operational excellence.

As I said, we are thinking big and being bold. Less than five months into this administration, DOT is moving with urgency and ambition to make our streetscape the envy of the world. We are advancing major projects, getting shovels in the ground and raising the bar for what New Yorkers should expect from their streets. Our commitment is simple: deliver transformational change that New Yorkers can see and feel. The Mamdani administration's partnership and the additional resources committed by this budget allow us to move faster and deliver at the highest level. Because at the center of this work are people. The infrastructure we build and maintain is ultimately about protecting and serving New Yorkers, making streets safer, buses faster, transportation more affordable and sustainable and public spaces more welcoming and accessible.

That is why we are scaling up protected bike lanes. It is why we are expanding protected bus lanes and bus priority. That is why we are creating more space for pedestrians and it is why we are working around the clock to improve the state of good repair and the safe operations of all of our assets with efficiency and technical rigor: roadways, sidewalks, bridges, traffic signals and streetlights and the Staten Island Ferry, among other things. We are putting people before politics and are laser focused on achieving the on-the-ground results that New Yorkers expect.

In my testimony I reviewed many of our accomplishments and ongoing work from previous years and highlighted our top priorities for my first year on the job. Today I provide updates on a few of those priorities and some of the key changes in our Executive Budget. Our Fiscal Year 2027 expense budget is $1.6 billion and you can see the more detailed breakdown in the chart in my testimony. Our Fiscal Year 2026 to 2035 capital plan is $33 billion and again you can see the detailed breakdown in my testimony. This budget provides funding to support critical and innovative operations that make New York safer and more livable.

The Mamdani administration is delighted to make these investments in bus riders, cyclists and pedestrians in this budget, which I will highlight a bit more in the testimony. These investments strengthen our vision to create a transportation system that provides safe, convenient and equitable mobility for all residents and visitors. Starting with fast buses: building on the Mayor's commitment to deliver faster, more reliable bus service and the down payment made in the preliminary budget, we are thrilled by the level of investment this Executive Budget makes in creating streets that are safer and better for all New Yorkers. This budget provides record levels of funding and resources for bus projects, demonstrating a clear commitment from the Mayor to expand faster, safer and more efficient mobility across the City. It adds nearly $17 million and 70 new positions in Fiscal Year 2027, growing to $35 million and 104 positions by Fiscal Year 2030, and an allocation of more than $300 million for future capital projects. For too long, critical infrastructure projects have lacked urgency and we are thrilled by the Mayor's financial and political investment to strengthen our transportation network. This investment is a commitment to improving New Yorkers' quality of life with reliable and efficient services that work.

Moving on to strengthening bike infrastructure: as we close out Bike Month, we are particularly excited by the investments announced to meet rapidly growing cycling trends. Each day more than 600,000 cycling trips are taken in New York City, which is up 64% from 2013. Under Vision Zero, we are using every tool available, from protected bike lanes to safer street designs, to deliver safety for all New Yorkers, no matter how they choose to travel. This budget provides the opportunity for DOT to meet the moment during this time of rapid change on our streets by adding more than $11 million and 45 new positions in Fiscal Year 2027 alone, growing to nearly $23 million and 54 positions by Fiscal Year 2030, and allocating nearly $100 million for future capital projects. Just as the Mayor challenged us to deliver faster, more reliable bus service, this investment challenges us to deliver more bike infrastructure across the five boroughs to ensure that cycling is a convenient and affordable choice available to New Yorkers in every neighborhood.

Just this week we announced the start of construction to complete the redesign of McGuinness Boulevard, which will deliver parking-protected bike lanes across the entire corridor from NYCHA Avenue to the Pulaski Bridge. With projects like these, New Yorkers are seeing real investment in real time to deliver safe streets for all New Yorkers.

Enhancing public spaces: as mentioned, safety is our top priority when determining design treatments and our public spaces are a critical transportation asset supporting social, economic and cultural exchange at the pedestrian level. This budget includes an additional $6.4 million...

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Baseline investments starting at FY27 into opportunity. This funding helps us meet the strong demand we are seeing from communities to keep these spaces safe, lively and welcoming, thereby enhancing quality of life for residents as well as retail sales for small businesses.

Expanding Sammy's Law: in March 2026, the Mayor and I committed to reducing the speed limit to 15 miles per hour at every eligible school location across the five boroughs. This announcement marked the largest expansion to date of the City's use of Sammy's Law, which will improve street safety for children and families. We know that lowering speed saves lives and that the announcement was just the beginning. So with a long-term goal of expanding school slow zones to all 2,300 eligible school locations citywide, this budget also invests in eight additional positions and $845,000 in baseline funding to expand the program that currently delivers approximately 80 school slow zones each year, accelerating critical safety improvements in communities across the City.

Speed Task Force: as the Mayor recently announced, we are advancing the City's commitment to faster, fair and more efficient development through the Streamlining Procedures to Expedite Equitable Development, or SPEED, initiative. What DOT is doing as our part to address these delays: the Mayor's investment for the SPEED initiative will add eight new positions, including transportation specialists, engineers, preservation experts and community coordinators, to strengthen our capacity to review projects efficiently while maintaining necessary compliance standards. All together, this investment provides baseline funding to help support critical housing, transportation and public infrastructure projects moving forward faster, more efficiently and with the urgency New Yorkers deserve. As the country continues to face a national shortage of engineers, we are also grateful for the Mamdani administration's investment to hire for essential roles like these.

On resurfacing and potholes: this past winter was unlike any other in recent memory, with the City seeing historic snowfall and record freezing temperatures. In return, New York City faced severe roadway conditions caused by repeat freeze-thaw cycles that created an extraordinary number of potholes across the five boroughs. In response, DOT launched an aggressive citywide pothole blitz, deploying crews around the clock to repair streets, restore safe driving conditions and respond quickly to communities impacted by deteriorating roadways. To cover baseline resurfacing needs, this budget adds $10 million starting in FY26, and the addition of nearly $3 million in FY26 to support critical emergency response efforts, covering the substantial costs associated with mobilizing the additional personnel, equipment, materials and roadway repair operations that potholes demand. Thanks to the hard work of our DOT crews, thousands of potholes were repaired across major corridors in neighborhoods and streets alike, helping to improve safety, reduce damage to vehicles and keep New Yorkers moving during one of the most challenging winter road seasons we have seen in recent years.

Illuminating: we are making historic investments in the safety, reliability and quality of life of our neighborhoods, and plan to start a $331.5 million citywide program to replace every first-generation LED light fixture across New York City. More than a decade ago, New York led the nation by converting nearly 385,000 streetlights to energy-efficient LED technology, dramatically improving visibility, reducing energy use and lowering emissions. Rather than relying on a costly and inefficient system that waits for lights to fail before responding to complaints, this initiative will launch a coordinated multi-year replacement program. It will upgrade fixtures neighborhood by neighborhood, block by block, so streets remain safely illuminated while reducing maintenance delays and long-term costs. With emerging technologies, the program will also modernize the City's streetlight network with new real-time monitoring technology that can immediately identify outages, diagnose problems remotely and dispatch crews more efficiently. We are a national leader in using sustainable street lighting and we look forward to a comprehensive installation process citywide.

On our savings program: the Executive Budget reflects efforts to identify efficiencies and responsibly manage taxpayer resources while maintaining critical transportation and street safety services. We achieved $6 million in FY27 in savings from lower-than-anticipated automated enforcement unit contract costs, reflecting careful management of program expenditures and operational needs. In addition, the agency identified $3 million in annual vacancy reductions beginning in FY27 through ongoing workforce and hiring management. Together, these initiatives demonstrate DOT's dual ability to not only contribute meaningfully to the City's fiscal strategy through technologies that increase revenue, but also strengthen our mission to advance street safety.

Finally, we are continuing to expand contracting opportunities for minority and women-owned business enterprises. In fiscal year 2026, we are on track to achieve record-breaking results, with $470 million already committed towards MWE participation, representing 33% of our contracted spending as a department. This significant progress is both a new achievement and also demonstrates our intentional efforts to create opportunities to build a resilient and diverse business ecosystem to strengthen communities citywide.

In conclusion, just five short months into the Mamdani administration, I am proud of the tremendous progress we have made. We have unlocked the energy, creativity and drive of this agency and its employees, quickly elevating our work and delivering results. All of this is a credit to the 6,000 employees at DOT who wake up each and every day determined to make our City better, and it is also a credit to the leadership of our Mayor. The investments Mayor Mamdani is making through this budget will serve as a catalyst for the work we do now and for many years to come. We will immediately put this new funding to good use, hiring staff, expanding our contract capacity and purchasing the supplies and equipment we need to scale up every facet of our work. As I said at the budget hearing, government is a big ship that takes time to turn. But as the agency that runs the Staten Island Ferry, we know a thing or two about that. We are moving the projects that were stuck in the pipeline, we are rapidly announcing new ones and, just as importantly, we are laying the groundwork for bigger and more impactful initiatives to save New Yorkers money, save time and save lives. In the months ahead, we will be rolling out big, holistic plans on everything from faster buses to safer streets, and these will be promises we keep because of the investments made in this budget and in the years ahead.

I want to thank the Council for its partnership and for the opportunity to testify today, and we now welcome any questions.

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Great. Thank you. Great timing. Okay, so really quickly, let us just dive in. For the automated enforcement unit camera savings, the plan as you mentioned includes a funding reduction of $6 million in FY27 with $4 million baseline starting in FY28. How were these savings determined and what is the revenue from the newer cameras?

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Thank you for your question, Chair. So we did a new procurement for the automated enforcement camera program and through careful negotiation and diligent project management with the vendor, we were able to bring down the costs. We now have more detail and visibility into the cost of the camera program and that is just going to bring in more dollars to the City.

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Okay, just out of curiosity, how

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many vendors applied? We will have to double check that and get back to you.

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Okay. And in October 2024, Governor Hochul signed into law the expansion of the existing red light camera program, allowing the City to quadruple the number of red light cameras from 150 to 600, marking the largest expansion of the program.

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And the Executive Plan includes funding over the five-year plan. What additional safety enhancements have been implemented or will be implemented within the communities where the additional cameras are in use?

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Just a point of clarification: it is 600 intersections rather than cameras. Okay, thank you.

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Thank you for that question. So regarding the red light camera expansion, to date we have 450 intersections covered by red light cameras and about 600 cameras, because of course at each intersection we can put a camera on both approaches. By the end of this year we will have all 600 intersections completed. Okay. I thought I felt a sneeze coming on. Okay. Does DOT have adequate funding for signage specific to the speed cameras? Yes, we do. Okay.

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I know this is a question that comes up a lot when we are looking at different boroughs, different parts of the City, thinking about equity. How does DOT decide when and where to move speed cameras? What are the criteria and metrics that you use to place them?

So DOT is, of course, a data-driven agency and all of the safety measures that we have, when we are siting speed cameras, we are looking at obviously the data on crashes and we are constantly recalibrating our streets to determine what is happening on them and where the cameras can be most effective.

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Okay. And then is it taken into consideration that some parts of the City... I think sometimes when we are looking at the data, there are some parts of the City that have more crashes, but it is also probably because those are transit desert areas where there are more cars being utilized versus other modes of transportation. So just wondering how that is factored in, in a place, for example, like Southeast Queens that has a very high number of red light and speed cameras versus somewhere in Midtown Manhattan.

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I think it is important to note to start that the vast majority of drivers, once they get one violation, it does not happen again. So I think in an ideal world, we would not get any revenue from these programs if everybody is following the law. As First Deputy Commissioner Joann said, we really try to follow the data and ultimately our north star is moving towards zero traffic fatalities.

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Yeah, no, that is definitely the goal and actually that leads to my next question. Because I think what happens is that usually drivers become familiar with where certain speed cameras are, and it is usually on some of the apps like Waze, for example, right? So it sort of notifies you, which is not a bad thing because it will help people to slow down. But if the new cameras get moved, how is the community notified? Is it done in different ways? Has DOT conducted any analysis specifically on equity, whether it is based on racial or economic data related to camera placements, which is sort of what I was

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getting at. So we are able to relocate the cameras. In terms of notifying the community, frankly, to be honest, the idea with all of our camera enforcement programs is not that you are aware that there is a camera in any given spot and you adjust your behavior. We want drivers to drive as if they need to comply with all of the rules and the laws, regardless of whether or not there is a camera. Maybe they should assume that there could be a camera everywhere, and that will better guide the behavior.

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Right, but have you specifically looked at racial and economic data in terms of where the cameras get placed?

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We have looked at that. I do not have any of that readily available right now. We did look at that, and it is good.

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The First Deputy said we can share it after, but we did look to make sure that they are not being either over or underserved in either low-income or non-white communities. We want, you know, we start with the data and in doing so place them where they are most needed, but then we did go back and double check to make sure they are not all in communities of color or not avoiding communities of color. We found that they really are distributed very evenly around the City based on the racial and economic makeup of the City, and that is part of why they are effective, I think, because they are not concentrated in certain communities but are really all over the City.

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Okay. I know some of my colleagues will probably have different opinions, but I will let them ask their questions on that. Going back to my original question, what additional safety enhancements... I know you spoke about the 450 intersections where the red light cameras have been placed, but what other additional safety enhancements have been implemented?

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Right, so I mean, you know, Vision Zero really drives so many of our investments and design decisions out on the street, and it has become a massive program. With this historic investment we are seeing in the current budget, it is going to grow even more. So we have a really broad toolbox and we follow the data. If it is a high-crash corridor or a specific intersection or a particular neighborhood, then depending on the context, whether it is a wide street or a narrow street, there are different kinds of traffic calming. It could be redesigning intersections, it could be speed humps, it could be adding or changing the traffic signals, stop signs, road diets, reallocating the space. It is a very broad toolbox.

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Okay. And then are the residents adequately informed about the programs or any changes, meaning in multiple languages and, of course, reaching out to the disabilities community, for example? How does that

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outreach look? We do very robust community engagement. We are always looking to improve upon it, but I think the agency has made really great strides in the last ten-plus years in engaging communities across multiple channels and multiple languages, whether it is pop-up outreach or larger-scale community workshops, online or social media. Just to add on, we have our street engagement teams that go into communities directly to meet community members where they are, and we use materials that are translated across the ten most frequently used languages in the City.

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Okay, great. In the Council's budget response, we noted that there were 211 red light cameras mounted around the City, which accounted for revenue of approximately $150,710 per camera. If the red light camera program were to be expanded to 1,325 intersections as contained in the state authorizing bill, additional revenue could be generated annually based on the fiscal year 2025 revenue numbers. Does DOT and the administration support expanding the red light camera program to the scale prescribed in the state authorizing legislation?

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Can you just say the front part one more time? I just want to make sure I have the details clearly.

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Yeah, so it is 211 red light cameras mounted currently with roughly that amount in revenue. So if you take that same sort of breakdown, if the program were to expand to 1,325 intersections as it was in the state authorizing bill...

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The state authorizing bill is only for 600 intersections. The 350 was the original negotiation point in the 2025 negotiations for the reauthorization. That reflected, I think, a percentage of all intersections, which is where that number came from, but we are only authorized up to 600 intersections.

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Okay, so given that it is 600, would that concurrently, in terms of the ratio of the amount of revenue generated, do you foresee that being the same sort of ratio of revenue that is being

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generated? Chair, just to highlight what the Commissioner said earlier: if we generated zero dollars in revenue, that would be a successful program. We are never looking at it as a revenue-based program. It is more about changing driver behavior.

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Agreed, but I think when we are looking for ways to generate revenue... I guess I am just not asking about the intent, but rather: do you foresee that if there are more red light cameras, there would be in theory more revenue?

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To speak at a high level, I think one of the things that we see is that in the initial period where installation happens, there is a spike, right? People are unfamiliar. But what we also see is that driver behavior improves. So I do not think we can say that the status quo number from your metrics there would be indicative of what we would see at a larger scale.

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Okay. I mean, yes, just for the record, I agree we want to change driver behavior. That is the ultimate goal, but I am just trying to get a sense, since it is a budget hearing, of where you think the numbers will land. Okay. What neighborhoods have seen the highest increase from camera revenue? We do not have that information with us today. Okay. What is the error rate? Sorry, what is the error rate for red light camera violations? Do you have that information?

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Sorry, what do you mean by that exactly? If there are, for example, a car that mistakenly received a violation, or there is a license plate issue... I am just trying to figure out if there are any errors and what that percentage would

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We have a very robust review process where we have a City employee reviewing each and every violation before it is issued. We have an extremely high rate — we do not receive them back in error — and we can get you the exact percentage. What is the process actually for the violation review? We have two employees in our Traffic Operations Division who have been carefully trained for all the different camera type violations to examine each and every video, obviously looking at it carefully, confirming if it is a red light, confirming that in fact the signal has changed where the vehicle is in the intersection. There is a very detailed protocol of how that evaluation is made and then that person certifies that it is a valid violation before it is issued.

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Okay, and so I think you are sort of answering my question, but for the record, have any cameras been removed because of technical problems or excessively false tickets? We would never get to the point of issuing a false ticket. If there is any technical problem with the camera, we would work with the vendor to bring that back online. But if there were any issue, we would not even consider those violations. Okay, perfect. And how often are yellow light timings reviewed and adjusted? How often is it calibrated or checked?

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Yes, I need to confirm that unless any of my colleagues...

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I know that some traffic lights have longer yellow light timings versus others, just wanted to see. We will have to get back to you on that. Okay. And have you done any studies about whether extending the yellow light duration reduces violations?

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So the yellow phase is set as basically a ratio of the speed limit. So whatever speed we expect drivers to be going, or that they should be going or staying under, that is what the timing is based on. So it should not really be a variable thing in terms of the results, if that makes sense.

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Okay. What engineering alternatives were considered besides enforcement cameras? I know that you explained some of them...

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Yeah, I do not think it is really... we do not approach it as an either/or. I think it is really all of the above, and I just really want to stress how effective automated enforcement has been and how we see it. But also that 96% of drivers do not get more than two violations. So we really, again from our vantage point, it is a safety tool and it is a very effective one. So we really appreciate the Council's partnership, also since we have to go back to the State every few years to get these programs reauthorized.

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Okay, so moving on to the process to obtain traffic calming measures, because I know that this is the case in my neighborhood as well, especially in the parts of southeast Queens in my district, where either around schools or in certain intersections there are very long stretches of streets between the avenues because it is a very long distance and people speed by.

In the situation where community members would like four-way stop signs, it seems like the process itself to get other traffic calming measures — aside from the cameras, right, whether it is a speed bump or four-way stop signs — seems like a very involved process to go through that many community members are not understanding, especially if they have the signatures from the streets in their neighborhoods to want to get something like this done. I know that usually DOT comes out and does a study and observes, but I think oftentimes the frustration is it is not during the times where kids get let out or where there are a lot of parents in one area, especially around the schools. So just wondering if you could walk us through the process to obtaining other traffic calming measures and what factors DOT considers.

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So I can start. Yeah, I think we certainly do not want the process to feel arduous. We have tried to create good pages on our website that explain these, but we are always open to feedback about how we can make it easier for the community to let us know what issues they are facing. The other point I would make is that we do try to approach these things holistically, so it is helpful for us to hear from the community what the issue is, what the challenge is, and then we can work with them to figure out what the right solutions might be — whether it be a speed hump, a stop sign, a traffic signal, or something else.

But if they want to request a specific tool, we do have processes for each of those. If someone requests a stop sign and we think it is not appropriate for a stop sign, we do not say, "Sorry, nothing we can do here." If we see speeding, then a speed hump might be appropriate or other traffic calming. We do try to take the concern and find the right treatment. We definitely hear about the times of day, and our signal engineers do go out and look at many times of day. It is also helpful when we get feedback. There was a location where it turned out that on summer Saturdays there was a big little league thing that goes on, and so our weekday check, which is usually the busiest time in the City, was not quite right. But because we heard about that traffic pattern we could go out and look differently. So the more information we get, the better we can be responsive to exactly what is going on there.

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Okay. And the new initiative that the Mayor had outlined — the speed initiative — is this something that would be included in terms of helping with the process of getting those things in place? Chair, do you mean the State law to stop super speeders, or...

(00:41:41)

No, no. The thing that was in your testimony — to speed up development, affordable housing and other sustainable development.

(00:41:49)

Yes, because I know that you were saying... well, in terms of the processes, your portion was to hire eight positions. So is that just for that alone? It is not for the other agencies, just...

(00:42:06)

Okay. And I know it is to help support critical housing, but it is also transportation and public infrastructure projects moving forward faster, so I just wanted to clarify if something like this could also be included in that or not.

(00:42:22)

So yes, it is just giving us more resources to basically do the traffic studies, which is sometimes on the critical path for these developments. It is one important step, so by having the resources we need on that team we will be able to process those reviews a lot faster.

(00:42:43)

Okay. And if this is sort of alluding to new developments, I would encourage that if this could be done overall it would be great too, in terms of just the overall processes. So I just want to make a note of that. In terms of vacancy reduction, the executive plan includes baseline funding of $3 million starting in fiscal year 2027 from 49 headcount positions. So what were these 49 positions that were eliminated and how will DOT be able to carry out the functions?

(00:43:11)

So I can say to start that the vacancy reduction was done in tandem with the ending of the 4-to-1 hiring policy. So while it is a reduction in sort of theoretical headcount, it is actually a lot more helpful for us to have real headcount that we can allocate based on the needs. So in the end this is really a net positive for us. We could talk more about the specifics if needed, but that is how we are looking at it.

(00:43:45)

Thank you, Commissioner. So we looked at all of our vacancies and looked at long-standing ones. There were a couple parts of the agency that just were not able to hire for a long time. So to the Commissioner's point, to enable hiring faster with the reduction of the 4-to-1 hiring freeze, we were going to take some vacancies down and hopefully that will help us speed up hiring for all the other positions that we need.

(00:44:09)

Okay. And is the entire Office of Sustainable Delivery being eliminated? If not, what positions remain and what will be the scope of the office? No, we are definitely keeping that function. I think we have rebranded it as a Sustainable Delivery Unit, as you mentioned. Still...

(00:44:25)

...a very important focus area for us to ensure delivery worker safety and safe behavior. We could talk more about the specific headcount, but basically we are focusing the group more on the policy and regulatory approach needed to get safer outcomes in the delivery space, versus an enforcement-forward approach.

(00:44:57)

Great. And I know that you mentioned this earlier with the contractor that you rebid for a lower cost. So are there other savings measures like that where you are looking at different consulting contracts or other areas? Because I know some of the agencies have not looked at some of their consulting contracts in years. So just wondering if you have done a review of that.

(00:45:20)

Thank you for the question, Chair. So we are constantly looking at all of our contracts, both professional services and engineering contracts, and seeing if there are efficiencies that could be made. For contracts already in place it is a little bit hard because the terms are set, but every time we rebid we look at ways to do it faster and better. And to the question you asked earlier, there were three vendors that bid on the enforcement contract and Mobility was the chosen one. Great.

(00:45:45)

And last question before I pass it off to the Chair: is DOT looking to use technology, training or deployment any differently to find efficiencies in its operations?

(00:45:54)

Absolutely. And this is an important priority for me, honestly. I think it is something that we do as a standard practice, but I really want to take a holistic look across the board at how we can improve our operations and efficiency, with technology being one critical piece of that. We are going to have folks whose role is specifically focused on efficiency and organizational excellence. Great. Thank you.

(00:46:23)

And just quickly, we have been joined by CM Justin Sanchez and CM Christopher Marte.

(00:46:28)

Thank you, Chair. This question is for Commissioner Flynn and Deputy Commissioner Flynn. Last year you testified under oath to this Committee that as it pertains to the cost of daylighting, $10,000 is a very round rule of thumb number for a single intersection. You further emphasized this cost per street block, saying the cost of hardened daylighting infrastructure comes at about $10,000 per location, which includes labor and regular maintenance. However, in that same hearing your submitted testimony to the Committee stated universal hardened daylighting would cost in the neighborhood of $3 billion. New York City has 40,000 intersections. At a cost of $10,000 per intersection, that comes to $400 million. Is this just a simple case of bad math or a huge disagreement you have with yourself?

(00:47:17)

So the $10,000 was per location, and an intersection has four corners. Each corner can have two sides that are daylighted. So I think that is the discrepancy — it is not per intersection, it is per location. Even if you... is $3 billion correct? Well, to answer that question: to get a full number you would multiply by eight. So again, these are round numbers, but that is how you get there.

(00:47:56)

Are you aware that the previous administration's own estimates for Int 1138, which called to daylight 1,000 intersections per year, included several large additional costs, including $8.7 million for hardened barrier materials, $1.2 million for personnel services including fringe to hire staff, $5.5 million for annual personnel services, $780,000 for guide rails and $120,000 for signage, $63,000 year one and $126,000 year two for the purchasing of new vehicles? That still only averages close to just $17,000 per intersection, Chair. So...

(00:48:43)

That is an average for one intersection. It does not scale up equally with every number. There are always...

(00:48:49)

...outliers. So to the point Deputy Commissioner was making, you cannot just take one intersection and extrapolate that universally. This is a rough estimate for Int 1138, which is 1,000 intersections per year. I think when you are picking a limited number of intersections you can intentionally look for ones that are more straightforward and cost less. When you are talking universally and doing it at every location in the City, you inherently have to do all the more complex ones. So as I said, it does not scale exactly the same way.

(00:49:29)

I think at the end of the day we are eager to sit down and work through the details, and if it is a matter of figuring out what the most accurate cost is, we are happy to be a partner in that.

(00:49:39)

I know you are committed, Commissioner, but I have to come after the Deputy Commissioner on his information from the past. You are a good boss. Thank you for coming to his defense. The previous administration, which was no friend of this policy, could only manage to inflate the cost to $17,000 per intersection. This is baffling, considering that if we apply this number to all 40,000 intersections in the City, the total cost is around 22% of that $3 billion number you and the administration cited. The previous administration had it right. Are you aware of that? So yeah, I think we...

(00:50:17)

...discussed it a little bit here, and as the Commissioner said, we are happy to get into more detail about what it costs and what it takes to do this work.

(00:50:23)

Are you aware that Hoboken was able to roll out daylighting en masse by starting with low-cost interventions...

(00:50:31)

...like paint and plastic delineators? We can start for as low as $1,500 per intersection. We regularly talk to all of our neighbors about what and how they do things and what they cost in different...

(00:50:45)

...locations. Are you also aware that Hoboken studied levels of interventions, including $2,000 to add some bike racks at...

(00:50:56)

...intersections? I cannot speak to familiarity with every piece.

(00:50:59)

I mean, this is information I am confident in, and it still comes nowhere near the cost that this administration is estimating. Last year at the daylighting hearing, a Council member mentioned that her office was told it would cost $10,000 to harden daylight an intersection, which agrees with the Council's analysis, and which she stated publicly for the record. Do you disagree with your own agency's analysis?

(00:51:28)

I am sorry, I was not totally following. We have said it is $10,000, right? That sounds the same. But I think it is difficult to get into some of these details without everything in front of us. We are more than happy to talk to you and make sure we are...

(00:51:48)

...all looking at the same thing. I am not done with the line of questioning, Council Member. Even if DOT just did unhardened universal daylighting at certain intersections, it only cost the City of Portland $700 to $800 to erect daylighting per intersection. I understand this administration agrees with prior administrations' extremely questionable claim that unhardened daylighting is more dangerous in certain situations, but can this administration commit $400 million to implement universal hardened daylighting in our City? Every New Yorker deserves to feel safe and be safe in the areas where we live and work and play. Our seniors and children deserve to cross our streets without fear and every New Yorker deserves better from their government. I remain disappointed with the resistance to this measure, but I am grateful that Commissioner Flynn has committed not only in public conversations but in private conversations that he is really committed to addressing this. Commissioner, I really, really am grateful for your leadership on this.

(00:52:48)

I am going to let the Council member ask questions on this specific issue when we transition to other topic areas.

(00:52:55)

Thank you, CM Abreu. I am a little frustrated. Okay, so why do not we just ask in simpler terms. Why do not you explain to us your calculations for how much intersections cost per intersection. What is the actual cost — not for intersections or four streets or four sidewalks, however way you want to put it — how much does each intersection cost to daylight? So again, we are happy to go through this with you in much more detail. Yes, let us go through it in detail now.

(00:53:29)

Okay. I am happy to go through it in much more detail when we have all the figures in front of us and can all be looking at the same sheet.

(00:53:34)

So you came to this hearing on the budget without the figures in front of you for...

(00:53:40)

...a budget hearing? It costs roughly $10,000 per location. So...

(00:53:44)

So part of what he is saying is that it is not $10,000 per location because he is defining location in a different way than the way that we define location.

(00:53:54)

What are the $10,000 for? Give...

(00:53:55)

...us a breakdown. So it is about $10,000 per location, which would be about $10 million for a thousand intersections.

(00:54:06)

Yes, we understand that, which is why we were outside with over a hundred advocates who have been calling year after year, because hundreds of people die due to lack of daylighting with cars turning at intersections. I know, Commissioner, you already know this because we have discussed this. Many people have discussed this with you before you took your position. We understand that it is going to be $10 million for a thousand intersections. So help us understand what you mean by location. Do you mean...

(00:54:35)

Location means four corners.

(00:54:37)

Gust to daylight. Maybe I can try to clarify. So every intersection — a typical intersection has four corners, right? There are two sides to each of those corners as the streets come together. So if you can visualize that, there are actually eight, as Commissioner Bratton said. There are eight potential places that you can do daylighting. So when we say we can daylight one corner or one intersection for $10,000, that is simply one part of the eight, and that may be inadequate in order to truly address safety at that intersection, depending on what our engineers feel would be beneficial there. That is why the $10,000 is oversimplifying the conversation. It would help, and I know we are trying to take care of some of this here, but if you have time at another time we would love to sit down with a plan of a few streets and go through that with you.

(00:55:32)

So I have a few follow-up questions for daylighting. Can you help me understand how you qualify what you deem as daylightable? Help me understand that. What are your qualifications to determine? Because we went from Mayor Mamdani — when he was not yet an Assembly Member, he stood with me when a six-year-old was mauled by a car in Astoria — Mamdani was at a daylighting rally and he demanded that we daylight every single intersection. He has been on record multiple times calling for universal daylighting. Now he has taken office and we are now hearing the opposite of that from you all. So we want to understand: what do you qualify as somewhere that should be daylit? Because you are saying that you no longer believe in universal daylighting, despite all of the times that the Mayor has gone on record

(00:56:20)

in support of universal daylighting. Thank you, Councilmember. I just want to be clear that we share the same goal of eliminating traffic fatalities, and we absolutely see daylighting as a key piece of that. We are all for figuring out and are eager to work with you and other partners to understand the most effective and fast way to expand the use of daylighting. I just want to be clear on the record about that.

(00:56:49)

Okay, so how do you evaluate well locations? Wrap up.

(00:56:55)

Daylighting. We try to focus on where it can be most effective. So generally that is where a driver would be able to make a legal turn — that is where daylighting can be most helpful. We want pedestrians to be visible and to be seen. So if you think about one-way streets, some corners are more helpful than others for daylighting, and that is what we would want to prioritize. Thank you.

(00:57:17)

All right, we are going to transition now to a few other topic areas: the Bus Action Plan. The executive plan includes additional City funding of $16.9 million and 70 new positions in fiscal year 2027, that grows to $35 million and four additional positions in fiscal year 2030 for the Bus Action Plan. How many miles of bus lanes will be built with this funding and how many will be new bus lanes? Thank you.

(00:57:41)

Chair, yeah, so we are thrilled with the level of investment. It is a historic level of investment. It is going to let us bring this program to a historic level of output. I do not have specific miles for this year because the program is a dynamic thing that we are developing and implementing. We are expecting a historic level of output this year, significantly more than prior years.

(00:58:05)

Okay, but do you know how much more that would be?

(00:58:08)

Unfortunately I do not have exact numbers, but I think it will be significantly more than what we are on

(00:58:15)

track for. All right, if you could share that information with us that would be greatly appreciated. On average, how much will each bus lane cost to install? Please be specific.

(00:58:28)

Might need a moment for that one. Take your time.

(00:58:31)

It does vary quite a bit. Just for example, the red paint is about $4 a square foot in round numbers, but different lengths of bus lane — if there are more intersections, then you do not have the red paint through the intersection. The costs are not the same for every mile in the City. So this is a tremendous investment that the City has given us. That is why we are planning it out street by street rather than just saying here is an average. We are going to use this money to build as many bus lanes as we possibly can. Thank you.

(00:59:07)

What is the scope of the new positions? Is hiring for the new positions happening now? Well, it is fiscal year 2027 funding, so as soon as we get the money we are going to move quickly to staff up as quickly as we can. Tell all your friends — we are going to need a lot of people. I see some folks in the audience here who are willing to apply for work. Not kidding. So we are definitely going to spread the word. Thank you. What is the scope for these new positions?

(00:59:37)

So one of the things that we did very thoughtfully, and that the Mayor funded, is that this

(00:59:44)

is not just more planners — people to think about where we should do bus lanes. It includes the engineers who design them, and it includes work throughout our operations. It includes people for new concrete elements and new people for signal timing changes and just all the things that go into making a bus lane successful. So we were very pleased that it is not just sort of starter money. It is really the money to plan and deliver the entire program.

Does any part of this funding go towards public engagement? How much, and what specific actions would be taken to engage the public? Public engagement is absolutely a key part of expanding any project, including bus lanes. Just as an example of that, as was mentioned before, we have our street ambassador on-street units that go out and meet people at bus stops and go business to business down corridors. As we are doing more of these projects, we want to make sure we are not just spreading that group more thinly and doing less outreach, but we are staffing up that group, for example, to be able to do the same amount or more outreach with each of the projects that we do.

(01:00:50)

As a percentage, how much of this funding is dedicated to the implementation of bus lanes?

(01:01:01)

Thank you for the question, Chair. So as the Deputy said, the bus lane work can be many different things. I would say on average it is probably about 50 to 70% that will be for the actual bus lanes, and there will be support for all of this work and the new needs as well. When you get the percentage, we would be grateful if you could share that

(01:01:26)

with us. How many new bus shelters will be installed this year, particularly in transit deserts and along high

(01:01:36)

ridership routes? So we are going to be installing around a hundred shelters this year, and thanks to the investment in the two years ahead as well. Great.

(01:01:46)

With this funding, will we be able to meet the 30 miles of bus lanes as mandated by Local Law 195?

(01:01:54)

As I mentioned, we are going to be working as hard as we can to deliver as many and as much output as we can with the new funding.

(01:02:04)

With respect to bus rapid transit: bus rapid transit is a high-capacity bus-based urban transit system designed to combine the speed and efficiency of rail transit with the flexibility and lower cost of buses. What factors does DOT consider when deciding to implement...

(01:02:20)

Thank you for the question, Chair. Yeah, we are really excited and we know there are things we can learn from other cities around the world and really take our bus priority efforts to the next level. We are really excited that Flatbush Avenue is in construction as we speak, which is really going to be one of the first on-the-ground examples of this type of approach. In the spirit of the question — I am trying to remember now — the question was around what factors does your agency consider when deciding to implement that, right? Thank

(01:02:51)

you. Yep. So certainly ridership, certainly bus speeds, but we also want to be looking forward and thinking about what is the potential. Folks have seen in the housing announcement — I guess it was yesterday or the day before — that the administration is looking to pair transit-oriented development and affordable housing with things like bus rapid transit or other rapid transit. So these are all factors that we consider. We also work closely with our partners at the MTA because they are also a big piece of this. A lot of the focus is on the street design and all that, but the other really important part is how the buses are run and making sure we can maximize the speeds and the throughput.

What process do we have in place at the moment for approvals? So we have a transit development unit that works, as the Commissioner said, in very close partnership with the MTA. As part of looking at a corridor, one of the things that they do is look at all the data, look at the street design and figure out where these higher levels of investment are appropriate. That is something that we have been starting to look at as part of the new bus plan and I think there will be more details as part of that.

(01:04:07)

Thank you. I also want to state for the record that my office has sent a letter, as well as other advocates who have sent a letter, in support of the bus rapid transit system along 125th Street, which would touch my district as well as other districts. Harlem is something that I support, but now the ball is in your court — that is where I will leave it. This is something that for us is very important to put on the record. I think it is a great place for thinking big and really making sure that Harlem gets the attention it deserves.

I will move over to cycling and micro-mobility. The executive plan adds funding for cycling and micro-mobility and includes $11.2 million and 45 new positions in fiscal year 2027, $8.6 million and 50 to 52 new positions in fiscal year 2028, reaching $22.8 million and 54 new positions by fiscal year 2030. What will this funding go towards and how many bike lanes will be installed because of this

(01:05:11)

funding? Sure. So in terms of what it goes towards, it is a little bit similar to what we talked about with the bus plan earlier, where it is both the planners and outreach specialists who can get the project moving, but it also really reinforces the operations around the agency in terms of our ability to deliver. So it includes money for concrete work and money for the markings program. Again, we want to be very committed to not just saying we are coming up with a lot of ideas but to really delivering them. On average, how much does it cost to install a bike lane?

(01:05:45)

We have that information.

(01:05:50)

There are definitely a lot of variables, I think as much or maybe in some ways even more than the bus lanes, because it depends on the specifics of the design of the bike lane, the concrete, traffic signal changes. So I am not sure if we have a rough range, but we can get back to you with the range. As the Commissioner said, it is a very wide range. A fully built-out greenway where we need to get a lot of capital money in this budget as well — the cost of that is very different from a painted on-street lane.

(01:06:22)

Yeah, if the agency could come up with some type of breakdown — cost per square foot for this type of bike lane versus that type of bike lane — just something for us to have as some baseline of how

(01:06:33)

this stuff gets priced. That will be very helpful for us and for members of the public. With this funding, will we be able to build out 50 protected bike lanes in fiscal year 2027? So again, I am not able to give an exact number yet, but it is a historic level of investment and therefore we are expecting a very substantial increase in the output of bike lanes compared to years past.

(01:07:06)

Yes, and increasing even more in the future years, right? I did not mention that earlier but part of it, of course, is once we get the funding in and as we hire up, as we expand these contracts and all the things it takes to build these, we are going to do as much as we can this year, but we also expect very significant growth in future years.

(01:07:24)

I am going to ask another set of questions, last question for now, and then I will come back for more. I have questions on the Knicks and the World Cup. This summer, the New York City region will play host to a round of group matches and the final match of the World Cup, and in a few weeks our very own New York Knicks will be playing in the NBA Finals. Has the administration outlined to DOT what their role will be in the upcoming World Cup and what does the scope of the involvement entail? Thank you.

(01:07:53)

Chair, yeah, we are really excited about the World Cup and also about the Knicks. Go Knicks! I think the Mayor has said, and I agree, that the World Cup presents an exciting opportunity not only to show our City off to the world, but to make sure that all New Yorkers benefit from these events. So that is kind of what DOT's role is. Number one, we are really trying to leverage these events — the World Cup in particular — to create opportunities for New Yorkers to celebrate and feel like they are a part of the World Cup, even if they are not going to see a match in person. There have been some announcements around that and there is more to come in the coming weeks around watch parties and that kind of stuff. I think also there was the announcement around the soccer streets that we are doing to engage school kids. Then the other side of it is obviously more like the traffic activity — making sure that it works smoothly and that we put our best foot forward for visitors, but also that it is not inconveniencing New Yorkers while all this stuff is happening. My colleagues could provide more details, but that is kind of our overall role.

(01:09:00)

Over a month ago, Streetsblog reported that there have been watch parties that had been canceled. Is that true? Or are there City events that have been scaled down by any chance?

(01:09:11)

Well, what I will say is, for myself, coming into this role and realizing that the World Cup was five or six months away — it is a lot. So a lot of these conversations and planning have been happening in a very dynamic, real-time way. Multiple agencies are involved and there are a lot of different pieces. So everything has been kind of dynamic, but we are excited with where we have landed. We think it is going to be a wonderful series of activities and events for

(01:09:40)

New Yorkers. Was the decision to scale down DOT's role, or is that a different agency?

(01:09:46)

There was no final set of events that was scaled down. As I said, it is a lot of conversations and planning that have been happening in real time.

(01:09:53)

All right, thank you. Great. Thank you. I just want to recognize we have been joined by CM Hanif and CM Morano on Zoom and also CM Brooks-Powers. As we go into member questions, we just want to remind colleagues to keep questions and responses concise because we want to make sure we get through everyone. Of course, if any members want to go for round two, let us know. We are going to start with CM Won, followed by CM Louis. Thank

(01:10:25)

you so much, Chair. So I want to break it down a little bit further. When it comes to a road intersection it is usually four corners, and you are repeatedly saying it is $10,000 for an intersection, but then you are saying that the intersection is a location and there are eight per intersection. So now you are redefining intersection, which we constantly feel like there is a lot of disagreement on. Then it is less than $3 billion even with that calculation as well — $3 billion. So in relation to the Mayor campaigning: are there new dollars added by this current administration for hardened daylighting? Yes or no? Because at the last budget hearing, you said that the only daylighting funding that you have is

(01:11:08)

a rollover from the Eric Adams administration. Well, I just want to start by saying that I apologize if there has been any miscommunication or misunderstanding around how we are defining or how we are laying out the costs. As I mentioned earlier, we are here in good faith to work with you to figure out the best pathway forward on daylighting.

(01:11:32)

Got it. You are asking about cost, Councilmember.

(01:11:37)

Yeah, has new funding been added by the Mamdani administration for daylighting? Because at the last hearing, the only amount of dollars for hardened daylighting was from the Eric Adams administration.

(01:11:48)

So are there any dollars added? So yeah, there was a tremendous amount of money added to our budget. It is primarily being called bus lanes and bike lanes. But as part of a lot of those projects we do include hardened daylighting as part of the safety treatment we bring to the corridor. For example, most of our protected bike lanes include hardened daylighting going down the corridor to make sure that there is visibility for turning vehicles to

(01:12:14)

be able to see cyclists.

(01:12:15)

So it is not called out as a separate line item, but the City is very much committed to and is funding the safety improvement.

(01:12:23)

What is the dollar amount that you are going to set aside for hardened daylighting in your new added budget?

(01:12:34)

Just to the point that the Deputy Commissioner was making, there is no line item and we are not looking at it as one piece. Every time we do a project we will make sure that if daylighting is an appropriate treatment,

(01:12:47)

then help me understand what the fixed street design elements are that you are looking at. Can you help us understand what the criteria is exactly so that we can understand your criteria for your evaluations of which locations will have hardened daylighting?

(01:13:03)

Sure. And I just want to start by saying that we are very confident in our ability with the budget that we have now to exceed the prior administration's level of output of hardened daylighting. As Deputy Commissioner Beaton said, the bike lanes, the bus lanes, all the other Vision Zero work we do. We are making hardened daylighting a standard part of our approach. The nuance is just that there are cases where we look at the crash data and there are other treatments in addition to daylighting that are sometimes even more effective. So we really value the flexibility to use daylighting and/or other approaches based on the situation.

(01:13:37)

So we would like to understand how many dollars are going to be spent for each fiscal year. Since you gave us a calculation of how much it will cost and return, we would like to understand how many intersections are in your budget for this fiscal year. I will turn it back over to the Chair, but I would like to come back for a second round of questions. Thank you.

(01:13:53)

Great. CM Louis, followed by CM Wong. Thank you, Chair, and good morning, Commissioner and the whole team. I have four questions, so I am going to just throw them out and then hopefully you will be able to respond. So the administration has made significant impact on investments and traffic...

(01:14:14)

operations. My first question targets traffic studies and federal design standards. Despite these significant investments made by the administration, many communities continue to experience year-long waits for traffic studies, signal timing reviews, stop sign requests and pedestrian safety improvements. I wanted to know how much of the increase in funding is dedicated specifically to traffic engineering staff, study capacity, and what is the current average timeline from community requests to final agency determination for those studies.

Also, given that New York City contributes significant local funding towards its transportation network, I wanted to know why the City continues to rely so heavily on federal standards specifically that many communities believe fail to reflect the realities of dense urban neighborhoods. I wanted to know how DOT is exploring alternatives to methodologies that better account for pedestrian activity, senior populations, schools, houses of worship and transit usage. That is still for traffic studies.

My last question is in regards to contractor accountability, utility costs and concerns regarding contractor street restorations that failed as completed, leaving residents with deteriorated roadways despite recent construction activity. So how many summonses or enforcement actions did DOT issue in fiscal year 2026 against utilities and contractors for defective street restorations? How much money did the City actually recover through those penalties, corrective work requirements and reimbursement? And is DOT seeking additional resources in the budget to strengthen this enforcement function? Thank you.

(01:16:30)

I know that was a lot. Thank you, Councilmember. Those are great questions. I will just speak briefly to one of the points and then maybe let the team chime in on some of them. Regarding federal standards, I definitely appreciate that point, and I think we would agree that cities are very different than rural areas or even suburban areas. We really do seek to maximize our flexibility in how we approach these things. It is also why we have a great partnership with organizations like NACTO, which advocates for cities' interests. So I just wanted to mention that. I think then there was the funding for traffic engineering staff and the utility question.

(01:17:10)

For traffic operations staff, we already have a robust team that looks at signals and other traffic devices. With this budget we are adding another 20 people as part of the bus and bike program. Those are dispersed citywide. They look at the whole entire city, and it is not like they are just going to focus on each distinct piece. They are going to continue to move all the pieces of the traffic operations forward. Thank you.

(01:17:45)

You packed a lot of good stuff in there. So I think first and foremost, what you are getting at is how can we be more responsive to communities. People believe they have a problem and we are taking too long to look into some of these things, like traffic signal studies, which we do agree is taking a long time, as well as the ability to then, if we find a traffic signal is warranted, put that in a contract. So we are working really hard to staff up in some of these areas and also to make sure we have more contracting capacity, which we should have this coming year.

But what I would like to urge Council members: as you see an issue, we want to get with you and your constituents on that issue. We have mobile speed camera units, for example. We can put those out if it falls within our criteria for that. We can look at some other measures for traffic calming, some things we can do in the short run. We can even look at a longer-term redesign if that is warranted. But we want to make sure you and your constituents know that is what we are here for. We will try to address those needs.

Then you mentioned the MUTCD, the Manual on Uniform Traffic Control Devices. That is something that we do need to comply with to retain a federal standard across the whole country. However, we are being proactive. As you mentioned, more pedestrian-focused warrants and things of that nature. We recently worked with the federal government in order to be able to use microsimulation in our studies, which is of course something new, and we were effective at getting that in. We would want to keep refining as we go forward. We look forward to that. Thank you.

(01:19:27)

We do have some quick inspection information. So the last full fiscal year, fiscal year 2025, we conducted 474,000 inspections of permitted work out in the streets. 88% of those inspections showed that they were in compliance and passed our inspection. How many were not in compliance? That would leave 12%. And that could be something like they are working outside of permitted hours, or a street cut was not properly backfilled, or something like that.

(01:20:05)

Thank you. I just want to recognize that we have been joined by CM Krishnan. And before we go to CM Wong, I just wanted to give a special shout out to the students in the balcony from PS 155. Thank you so much for being here today. I know you are from CM Rita Joseph's district, and I see her back there. Thank you so much for coming to observe how civic participation in City government works. So thank you. Okay, so CM Wong, followed by CM Epstein.

(01:20:38)

Thank you, Commissioner Flynn. At the last hearing I was asking about how we, as the Committee, can improve the safety of pedestrians from e-bike accidents. Unfortunately I have to talk about it again today, because yesterday at 8:30 there was an e-bike that had a head-on collision with a scooter on the Queensboro Bridge, and unfortunately both men were killed. I looked at the pictures and based upon what I saw, the bike involved was a Blade, which has a speed of up to 53 miles per hour. I asked this before and here I am again. What can we do as the Finance Committee, and what can you do as DOT, to enforce speed limits? And why are these high-speed scooters being allowed to be on the streets? Please talk about it.

(01:21:45)

Thank you so much for the question, Councilmember. I want to start by saying yesterday's crash was a tragedy and our hearts are with the victims, their families and loved ones. It is tough too, because pretty recently we were celebrating the opening of the south outer roadway on the bridge that separated pedestrians and cyclists. We do see that as a major step forward in safety for those cycling over the bridge. But nevertheless we clearly have work to do.

I know the NYPD investigation is ongoing, but based on the facts as we understand them, one of the riders was using a stand-up e-scooter capable of going over 50 miles per hour, which is very much illegal in New York City. I think it really underscores — and we hear it, and there is a lot of confusion, even for myself sometimes — there are so many different kinds of devices: throttle, stand-up, sit-down, all the different classes. To me, what it underscores is that these highest-speed devices are not appropriate for New York City streets, and by and large our laws reflect that. The question is, how do we get them off our streets? Because again, the stand-up scooter...

(01:23:11)

involved yesterday was not legal to begin with. So we work closely with NYPD and we have a good partnership, but clearly it underscores that as these devices proliferate, we really have even more work to do to get them off of our streets. That means educating consumers and businesses, but also just confiscating them. And if budget is an issue, please talk to this Finance Committee. How can we help? Because we just do not want to see any more of these fatalities. It is very unfortunate. We did not even want to have to talk about this again. Absolutely, we appreciate that. Do I have time for one more question? I will do round two. Thank you.

(01:23:53)

Okay, perfect. CM Epstein, followed by CM Restler.

(01:23:58)

Thank you, Chair. I will follow up with the Commissioner's questions around pedestrian safety. I know you said you do a lot of community engagement when you are making design changes. How committed are you to ensuring that the community board and local leaders' feedback is taken into consideration when making decisions and changes? Absolutely. We value the input that we get from elected officials, from community boards, and it is one of the important factors that we take into account. I really do appreciate that. Because if a community board says we do not want to do something and they elect to say we do not want to do something, it sounds like you should side with the local elected and the community board and their decisions.

(01:24:38)

So I hear from you, Commissioner... Well, I think at the end of the day we have an important mission to save New Yorkers' lives, and so we are balancing all different factors.

(01:24:48)

Exactly. So we are talking about saving New Yorkers' lives and pedestrians, and I appreciate your listening to communities when issues come up like that. I know you mentioned expansion of bus lane pilots and I really appreciate you wanting to do that. It is really important to expand those bus pilots. Can you... in Lower Manhattan, I know we talked about Madison Avenue. I have talked a lot about the 14A bus. Are there any expansions potentially coming for Lower Manhattan at this point around bus lanes specifically? Yes, bus lanes speed up buses. This is something I have been working on for many, many years prior to coming to the Council. I am wondering if you have any proposed projects coming to Lower Manhattan. We will have the Faster Buses Action Plan coming out in the coming weeks and there will be a lot of big ideas in there. We are excited to share. We are excited to work with you and other partners to basically help flesh out what those projects look like. We are prioritizing routes based on ridership, bus speeds and things like that. I am not sure specifically about Lower Manhattan, but I am sure we have some ideas there. I would love that. And we talked about the Avenue A bus lane. I would love to see that expanded as we have talked about before.

(01:26:09)

I want to talk about charging infrastructure. We are talking about trying to be more involved in putting publicly available charging infrastructure in place. I have been asking for the last 10 years to have at least one publicly available charging station in Lower Manhattan somewhere. Can you commit to making publicly available chargers available in Lower Manhattan for people who want to convert to electric...

(01:26:33)

vehicles. Well, I will start by just reinforcing that absolutely, we are working across all the levers we have to try to expand charging. Starting with the point that we want to expand options for New Yorkers to walk, bike and take transit. But we know some folks have to travel by car at times, and we certainly want them to be using electric vehicles in those instances. So we are really taking an all-of-the-above approach to charging, and that includes on- and off-street level two and fast charging. One thing we are doing is trying to prioritize neighborhoods where we see a lot of for-hire vehicle drivers and taxi drivers living, and prioritize charging in those areas. But we are definitely rolling it out across the City and I can definitely commit to working with you to figure out the best places to put it in.

(01:27:23)

I would love to see at least one in Lower Manhattan, and I appreciate you working with me on that. I know I am out of time, so I will come back later. Thank you, Chair.

(01:27:36)

Thank you, Councilmember. Oh sorry, CM Restler, followed by CM Justin Sanchez. Is he here? Okay, we will see if he comes back.

(01:27:45)

Thank you so much, Chair Lee and Chair Brewer, for your leadership of this hearing, and thank you to the team for joining us today. I will say I generally feel that we have leadership at City Hall and leadership in the agency that have the right values and the right vision. I still think that there are areas where the bureaucracy within the agency is not working well, and I am really hoping that we are going to start to see tangible progress on those fronts in the weeks and months to come.

So I want to highlight a few of those areas in my questioning today. First up is pedestrian lighting. Last year we passed a local law requiring DOT to install pedestrian lighting on 300 commercial corridor blocks every year. The law takes effect January 1 of 2027. So has this fiscal year's budget added funding for this to comply with this legislation, and are you confident in your ability to be in compliance this coming year?

(01:28:48)

I can just start out and then maybe First Deputy Commissioner, do you want to speak about the pedestrian lighting? I just want to underscore that in so many of the conversations I have had since starting this job, it has really become clear how important lighting is to New Yorkers, to Council members and to communities. It is something that people really feel day to day. So it is something I can assure you I am very focused on — street lighting across the board. But maybe you want to speak to the pedestrian lighting...

(01:29:14)

specifically? Yes. And before I get into that, I also want to mention that we do have significant funding in our budget to replace the LEDs around the whole city, which will also include a component that will alert us if any given streetlight is out or needs attention. So we are very committed to this area, both keeping up with what we currently have and then making sure we have additional lighting. We are working through with OMB on how we are going to comply with the Council...

(01:29:44)

law. Just to be clear, there is no additional funding in the budget to comply with the law at this time. Do you have the funding to comply with the law? It is just a yes or no question. We are in active coordination with OMB and City Hall on all funding needs. But you have your executive budget. Do you have the funding to be able to comply or not? I just want a yes or no. We are in active coordination — that is not a yes or no. Could you please answer the question? We have a significant amount of funding for lighting and we are working to comply with the law. With the resources you have, can you comply with the law? That is exactly what we are evaluating, Council member. Why can you not answer that question if you know what the funding is in the executive budget?

(01:30:26)

It is just a number we are in the planning stages on. And as you noted, there is still more time. I just want to note the frustration in my voice, because A, you are not answering the question, and B, because whenever we have lighting needs across our district, the best case scenario is three or four years to address that. It is often much longer. We identify issues, residents say the streets are dark there, which leads to...

(01:30:48)

major safety conditions, which undermines how small businesses are doing in our community. And yet we see incredible slowness...

(01:30:57)

I am sure it is a different portion of the budget, but lighting-related: what is the average time right now from approval to installation of a new traffic light? It is a number of months. We do have more contracting capacity coming online. Do you track that? Is there a timeframe set for how long it takes once a traffic light is approved to install? What is the average time today?

(01:31:23)

It is about six...

(01:31:24)

months. Okay. We are getting estimates of even longer, but you understand how frustrating it is for folks in our community. We go to DOT, we say there are major safety issues at a corner, there are track crashes on the corner, people are dying at this corner. We finally get a study done, we finally get approval, and then it is six, eight, nine months before there is any change on the ground.

(01:31:41)

No, I hear your frustration, absolutely, CM, and I think I speak for everyone that we have no interest in things taking longer than they should. It is something we are very focused on. As the first deputy commissioner mentioned, some of it is tied up in contracts and we are really glad that we are going to have capacity coming online. I am just over time.

(01:32:02)

I did not even get to ask about outdoor dining and the morass that that is. But this is just my closing statement: we are all aligned. I am confident in the values, I am confident in the vision. There are components of the bureaucracy in this agency that are not working well and they need to be addressed. We need rigorous leadership and strong focus on fixing these issues or we are not going to see the improvements that we are all committed to seeing in this administration. Thank you.

(01:32:31)

Thank you, Councilman. Thank you, CM Selvena Brooks-Powers, followed by CM Krishnan. Oh, and I am sorry — we have been joined by CM Banks and also our Deputy Speaker. Thank you, Chairs, and thank you, Commissioner and Commissioners, for your testimony today. I am going to ask my questions. Let me know if you need me to repeat anything.

(01:32:54)

The executive plan includes an additional $16.9 million of City funding in fiscal year 27 for the Bus Action Plan. In 2025, DOT completed nearly 21 miles of protected bus lanes, short of the 30-mile requirement set by the New York City Streets Plan. With this additional funding in place for fiscal year 27, how many miles of protected bus lane does DOT plan to build in the upcoming fiscal year?

This executive budget also allocates an additional $3 million for a pothole blitz. We continue to see terrible road conditions in the 31st Council District. Can you share which roads in Southeast Queens and the Rockaway Peninsula DOT plans to repair with this additional funding? Can you also address Rockaway Beach Boulevard from Beach 62nd Street to Beach 73rd Street? These lights have been out for months now and cause a major public safety hazard for local residents.

And lastly, I am going to raise an email exchange that we had with Commissioner Garcia earlier regarding my district. There are persistent and dangerous pothole conditions at the parking lot entrance of the Rockaway YMCA on Beach 73rd Street. The current state of the entrance is unacceptable. The large potholes pose a significant risk of vehicle damage and potential physical injury to our youth and seniors who rely on it daily or who just cross that corridor, because we have had a number of crashes at that intersection as well. Could you please confirm if this location is currently on the list for repairs? It has also been indicated that coordination with another agency is needed to move forward, but we cannot wait any longer. Someone has to take the mantle on this. What is the timeline? I can repeat anything that needs to be repeated.

(01:35:08)

Thank you so much, CM. I will start at the top. You asked about the Bus Action Plan and bus mileage. One thing I also want to note is that the mileage is comprised of two pieces. There is the physical design work we do to create or upgrade bus lanes, busways and street design, and then there is also the automated camera enforcement. You mentioned the mileage from last year. Our bus program for this year is in active development, so I do not have an exact number, but what I can say is that it is a historic level of investment that we are seeing, and therefore we are expecting a historic level of output this year, significantly exceeding past years when it comes to mileage, and even more in future years in terms of output.

I think next you asked about the pothole blitz and generally paving conditions in Southeast Queens. I will take this...

(01:36:04)

I noted the location that you just provided at the entrance to the parking lot, so we will get out there in the next 24 to 48 hours and we will address that. You asked about pothole repair as a result of the funding. The funding is paying for all of those pothole blitzes that we had, where we addressed over a hundred thousand pothole conditions. But at this moment, in terms of 311 input for potholes, we have only a few hundred. We can keep up with potholes now that we have gotten through the worst of it. So in general, for you or for the whole Council or the public, any potholes — let us know. Call them into 311 and you can call us anytime and we will have them addressed very quickly. You also...

(01:36:49)

mentioned the lighting issue. As you know, since last year, our Borough Commissioner updated me a few days ago that we are doing everything we can to help the developer understand exactly what light fixtures need to get installed, to the extent that we are even going to provide one that they can use, and then they can purchase more to have them all rectified and replaced. I think it is pretty alarming how long it has taken, with coordination with sister agencies, on something that is a public safety matter — literally with lighting being completely out for such a duration of time. We are 100% available to assist in any way. Those streets do not belong to us, and that label is on our drives. There needs to be greater coordination because DOT is still responsible for the conditions of the street. I understand that because of the urban development that took place it is under a different jurisdiction right now, but there has to be coordination. It cannot continue to be finger pointing between the agencies.

(01:37:57)

No, I understand and I agree. So we are actually providing several light poles to them in order to really help them understand what has to happen. We will be on the ground with them at any moment that they need us out there to help figure out the problem. Great.

(01:38:13)

Thank you. CM Banks.

(01:38:17)

Thank you so much, Chairs. Good to see you all, Commissioner. I have a few questions for the DOT team. I apologize if this came up before, but as you all know we have been very close partners working together on the Open Streets program across the City, especially in Jackson Heights, where we have the most successful one in my non-biased opinion. I just want to get a sense of what funding you have allocated for the program, how you are envisioning the program overall across the City, and how you are envisioning prioritizing Open Streets with the new budget. Thank you.

(01:38:56)

Thank you, CM. So we are really glad that, thanks to the funding that was added to the budget, we are able to keep the baseline for Open Streets. We are also excited that — I guess we announced it last week — we announced the launch of the Open Streets season and we already have over 150 initial locations, which is about 20% more than where we were at this point last year...

(01:39:18)

and still more to come, so that is great. Our intention is really to keep the program growing and actually to keep thinking across the board with all of our open space and public realm initiatives about how we can support communities and how we can build in even better structures from an operations and maintenance standpoint. Great.

(01:39:40)

I am glad to hear that is a priority. I want to mention one thing as well. I appreciate you and your team, Commissioner, and the Deputy Mayor coming out to visit our Open Street. As you know, and as CM Long mentioned too, it was very, very tragic to read the story about what happened at the Queensboro Bridge with the bike and the scooter. My real concern, as you all know well, is that we can have similar incidents. We have had near misses and children hit by mopeds on our Open Street on 34th Avenue, which is very successful. I am very concerned about this conflict with mopeds that are taking over and creating a highway in a pedestrian space. What I would love to keep working on together is really looking at Northern Boulevard as a solution for mopeds, which are Class 3 motor vehicles — they belong with cars, not with people. I think to get the Open Street to be successful we need to really solve this moped situation in an effective way, and that involves looking at other places for micro-mobility uses and lanes. I hope to be able to work with you all on doing so.

(01:40:48)

Thank you, CM. I agree that we have seen more proliferation of these two-wheel devices and again, some are classified as e-bikes, and some, like you mentioned, actually should be in the road with motor vehicles. This is really an area of focus for us and we know it is very urgent for a lot of New Yorkers as well. So we are always happy to look at big ideas and figure out how to solve these things.

(01:41:13)

I look forward to that work together on Northern Boulevard. My last question is on Northern Boulevard. We have a bustling bus lane now, which has been very effective, and we appreciate all your work on that. The biggest problem we are seeing — and I see it myself — is that on the weekends at nighttime, so many cars are double parked and use it as a parking lot basically, for miles in front of all the bars there. The biggest issue there is enforcement. Can we work together to actually create an effective enforcement system to make sure that the bus-only lanes are for buses?

(01:41:50)

Absolutely. Managing our curbs and having streets that are efficient and work for everyone — that is really the next frontier and there is so much more we can be doing, which is why we created the Office of Curb Management in the agency. Certainly for the bus lane specifically, the automated camera enforcement and other tools we have — we also work closely with NYPD. The short answer is yes, we would love to partner on that and we will follow up on that too. Thank you.

(01:42:17)

Thank you, Chairs. Great. CM Banks, followed by the Deputy Speaker.

(01:42:22)

Thank you, Chair. Good to see you, Commissioner, and your team. Several streets within the Gateway area of my district, within the 42nd Council District, remain under the sole jurisdiction of... I am frustrated as well, because I have been in office for two and a half years and we have been getting the same response — that the transition is going to take place — and we are still waiting. When are we going to finally get something done? I believe the dates even go back five, six, seven, eight, ten years to my predecessor. We need some solid answers as to when you are going to transfer the streets over, because currently the streets have no alternate side parking, there are sanitation concerns, there is abandonment of cars back there, and officers are constantly getting calls and complaints to deal with those situations. We need you to act. We need not just talking — figure it out. We need something done. I cannot leave this meeting today and get the same response we got the last time we spoke. We need some type of action.

(01:43:44)

I hear you loud and clear, CM. Let me give you an update. The good news is that something is actually happening right now. They are fixing the streets to comply with standards. As you probably know, we were not going to be able to accept those streets into our ownership unless they were brought up to the proper standards. They are being fixed. We are talking about it a lot internally. If you like, we can get on a call and understand when that work will be done and exactly what the steps are for us to then take the streets into our ownership. We have been working closely to make sure that they are built in the way that we need them to be built, and I think it is finally moving in the right direction.

(01:44:37)

Is there more work to be done?

(01:44:41)

I believe the work has happened because... I believe this has been...

(01:44:45)

...completed. I would have to double check if it has been fully completed, because a portion of the work was actually in front of my office and it was badly needed. Also, when it comes to the actual signage, there are a lot of no-standing signs that have been placed throughout that particular area and residents are getting ticketed even though construction is done back there. That is another concern, another issue, because those are signs that should not be there. Folks should be able to park there without those types of barriers. So again, we are looking forward to working with you because residents are screaming at me every time, and I am going to scream at you.

(01:45:33)

Fair enough. Thank you. No problem. Thank you, Deputy Speaker.

(01:45:42)

Thank you. I know that the Chair asked some of these questions, but does DOT have a map of both red light and speed cameras showing where they are located?

(01:45:56)

We do not have a public map.

(01:45:58)

Although I know that a lot of the driving apps have one. Okay, so you have a map — it is just not public. But are you able to share that with...

(01:46:09)

...the Council? It is intentionally not shared because we do not want to give... I mean, not the public, but can you share it with the Council? I know the camera locations are not meant to be shared publicly. Can we follow up with you on that?

(01:46:24)

I know. Because multiple members of the Council have asked. And I know maybe you cannot put like a street corner, but can you at least share by zip code how many exist, if you cannot give the location? I do not understand why this is so difficult.

(01:46:45)

Sorry, it sounds like we are being difficult, CM. As I mentioned earlier, we do not want people to adjust their behavior. I know — I am not asking for the map to be shared publicly. I am asking if you can share it with the...

(01:46:59)

...Council. And to be honest with you, even internally we do not share it widely. Okay, so can you share how many speed cameras and red light cameras are located by zip...

(01:47:09)

...code? That does not have anything to do with the actual location. You could even share it by Council District.

(01:47:17)

So Council District 1 has 10 red light cameras and 10 speed cameras, for example.

(01:47:22)

Yes, Council. Definitely we can share some type of breakdown. Can you share the breakdown by the end of the day today?

(01:47:30)

I mean, we are kind of...

(01:47:33)

...up to our wits' end with this. Understood. Okay. And largely why I am asking that question — and I will get into more questions right now...

(01:47:41)

...is because many members feel like the cameras are disproportionately located in certain communities. We have heard that that is not the case, but because we have no actual data that can confirm it, it is kind of like hearsay at this point. So we would love to know where the cameras are across New York City to be able to say whether or not they are equitably distributed.

(01:48:10)

Of course. Understood, 100%. I think just given the time — I am not sure exactly what time it is on a Friday — we can try to get you something. I am just adding pressure, I feel you. Okay. The short-term racial equity goal was actually to review critical finding fee-based programs by 2028 for racial and ethnic disparities. So why was this selected as only a short-term goal and were any other short-term goals considered?

(01:48:49)

Because — so, as you can see the theme, right? If you have these fee-based programs like red lights, speed cameras, and then you yourself in the racial equity plan said that you are going to review these programs...

(01:49:01)

Right. You want to understand, you want some tangible information that supports your statement that they are not predominantly in one neighborhood. And then in your own racial equity plan that you submitted, you all said that you were going to review the fine and fee-based programs...

(01:49:21)

...and what do you mean by that? Do you mean just the automated enforcement programs or other things, maybe like outdoor dining? We do not have a whole lot of fine and fee-based programs, to be honest. Those that we do have — a lot of times the fees are stipulated in the legislation, or the fees are the same across the board irrespective of the neighborhood, or they may be graduated more based on where there is more demand, things like outdoor dining. So I mean, we do not have a lot of fine and fee-based programs, and many of those costs are already stipulated, so there is not a lot where we really have discretionary cost. I am not sure if that is answering...

(01:50:11)

...your question. We just wanted to know what the critical finding fee-based programs were, since that is what you all put in the racial equity plan. Okay. I will just ask one more question and come back for a second round. My understanding is that DOT has previously found no racial or ethnic disparities with respect to its automated enforcement programs as well as many other DOT programs. Were those previous assessments insufficient or inaccurate? Because it does not seem like anybody here today has any idea about the racial equity plan that you put forward. You all said that you wanted to review the fine-based programs as a means of determining whether or not there are any disparities across New York City. But previously DOT found none. So the question is: is it that what you may have assessed in the past was inaccurate, which is why you are now suggesting that this should be something to review?

(01:51:15)

I just want to understand again, and also based off of both community and Council members who have said repeatedly that they feel like the cameras specifically are located primarily in communities of color. So for every program, I think we want to continually be checking year after year that nothing is going astray and we are not enforcing or providing anything in a way that is hurting one community over another.

(01:51:46)

So if there seems like there is a contradiction there, it is just that we want to keep checking year after year.

(01:51:54)

Yeah, my understanding is that the previous assessments did not find disparities, but these programs are always changing and dynamic. So we do assess them on a regular basis. Absolutely.

(01:52:15)

Round two. If we could actually switch to two minutes because I know we are pressed for time. For round two we have CM Phil Wong and then Epstein. Thank you so much. So to pivot, I want to go back with Phil Wong. Through this rezoning the City committed to creating a new waterfront and open space under the Queensboro Bridge by 2031, including $79 million in capital funding.

(01:52:43)

On page three of the capital plan, all the funding has a planned commitment date of 2031. Did the start date of the project see any delays? Where is the funding for this project, and will this funding present any delays? So the City's commitment is to complete the new open space by 2031. Thank you.

(01:53:06)

Thank you for the question, Council member. First of all, I want to say that any movement in the capital plan does not signify any delay and we are moving fast on the commitments made in the rezoning. Given capital structures we have had to move some funding around, but we are working with our partners to make sure that it is moving as quickly as we promised in the points of agreement.

(01:53:25)

Is that a yes or a no? Is there any funding delays for the City or no funding delays?

(01:53:32)

There are no funding delays to open this park by 2031. There are no funding delays.

(01:53:36)

Okay. So we want to see this open by 2031. As part of the rezoning, the City made final commitments to safety and public realm improvement projects. One of them was $1.25 million for a comprehensive lighting study in Long Island City to be completed by 2026, $700,000 for an automated public toilet at Court Square to be completed by 2027, and $250,000 for a study of possible public ground improvements under the Queensboro Bridge ramps to be completed by 2027. Can you clarify whether the funding is committed to these projects in the executive budget?

(01:54:13)

We are fully funded for all the commitments made in the points of agreement for the rezoning and they are all moving forward as promised.

(01:54:18)

Okay. Do you know what page we can find these projects? We have been reading every single page and we could not find

(01:54:24)

it. I think you might be looking in the capital plan, but they are folded into some of our expense...

(01:54:29)

Okay. Thank you. Can I have one more question? Okay. On the timeline of these projects being funded, so we are seeing that you are saying on record that the timelines of the commitments will be met. The City also committed $30 million in pedestrian and cycling infrastructure improvements along the 44th Drive corridor and $13 million to create an intermodal hub at 21st Street Station, with designs for both projects beginning in 2028 to 2029. The capital funds for these projects run from June 2029 to June 2032. Can you clarify the start date for the capital funding of the 44th Drive corridor improvements? Does the funding timeline present any delays in the City's committed timeline to begin design in 2028? Do you expect any need for additional funding to complete these projects?

(01:55:20)

Thank you for the question, Council member. We are actively scoping the projects, which means that we are getting the package ready to transmit for them to start design.

(01:55:32)

So to your last question about additional funding, no, we feel that what was promised will be the accurate funding needed. We are in preliminary scoping for 44th Drive right now and then the Center of Vernon Boulevard project will follow after that.

(01:55:48)

Okay. Thank you so much for those answers. We are going to follow up in writing with all these questions on the details, especially on the waterfront greenway and everything else. We will also follow up for written criteria on how you calculate and evaluate what intersections qualify for treatment. Thank you so much to both chairs.

(01:56:05)

Council member, can I thank the chairs? Really quick answer, please.

(01:56:10)

One line answer. Does DOT travel around looking for potholes or does it rely entirely on 311 and complaints? We do look for potholes in the course of all of our work. They are called in by multiple operational staff.

(01:56:25)

Okay. Thank you. Next. I went to junior high school in Maspeth and that was 1979. One of the projects was to design the Grand Street Bridge because the City had plans for replacing it. Fast forward, we are now at 2026. I am glad to see that in this budget we have allocated for the reconstruction of the Grand Street Bridge over Newtown Creek. The question is, is this money already here? Because I went to a session a couple of days ago and they said it is federal funds, and my question is, is the money already in place or are you still waiting for it, and what is the timeline for the construction? Thank you.

(01:57:08)

Thank you for the question, Council member. We are fully funded for the Grand Street Bridge and it is projected to go to construction in 2029. It is clear for 2029. Thank you.

(01:57:23)

Thank you. 1979, that is when I was

(01:57:25)

born. Okay, Council member, followed by the Deputy Speaker.

(01:57:33)

Thank you. Is the capital plan for Broadway fully funded at this point? The redesign on Broadway in Manhattan.

(01:57:45)

Sorry, my understanding is that certain segments of it are funded and moving ahead as a capital project. You mean the full redesign? Yes, that is fully funded.

(01:58:02)

Does that include the new kiosks and publicly available water fountains?

(01:58:14)

Yeah, that is the plan. We talked about having a publicly accessible bathroom in there. Is that in the plan? Do you anticipate having a publicly available restroom? I am not sure, I would have to check and get back to you. Yeah, it is something, you know, obviously we talked about it. The Mayor has talked a lot about it, especially with Madison Square Park right there at the 23rd Street Flatiron area. We would really like to see a publicly available bathroom in that location. I hope that you commit to doing

(01:58:42)

that. Yeah, we understand this administration has been very committed to increasing access to public bathrooms and so we will just have to check on that specific

(01:58:48)

question. We are in active scoping, so this is the perfect time to have that conversation to make sure that the infrastructure is built for a public bathroom. Yeah, I want to flag for your team, I want to make sure since the capital is there, I want to make sure the capital is available to put that infrastructure in place, including the bathrooms and the water fountains and the bottle fillers and all the public amenities that we would need in that part of the City.

(01:59:10)

I will just mention on that topic because I know it is front of mind for many of us. On the public toilets, I believe the new program that the Mayor announced should be announcing a selected vendor very soon, so that program is going to be getting off the ground. Great. And that

(01:59:31)

selected vendor will determine where in the City, what boroughs, what neighborhoods will have them. Will DOT be working in some coordination with Parks to figure that out? Okay. With public input, right? Well, yeah, I think based on where we are hearing these kinds of needs. Thank you.

(01:59:52)

Thank you.

(01:59:53)

Chair, thank you. Deputy Speaker, thank you. Just really quickly, the streamlined procedures to expedite equitable development. Will travel demand responses be updated for recently rezoned neighborhoods like Jamaica?

(02:00:13)

Council member, could you just clarify? Travel demand responses?

(02:00:19)

Yeah. So the SPEED effort as I understand it is really looking at communities that are being upzoned, travel demand, et cetera. So what I want to know is

(02:00:28)

will you update any information for newly upzoned neighborhoods? Because this is a new thing going forward for this upcoming fiscal year, but there are neighborhoods that were recently rezoned. So I just want to understand, would it apply

(02:00:48)

to them? So the SPEED effort specifically is about rezonings and new developments. But we are also still committed to doing a very comprehensive traffic study of Jamaica to make sure that we understand exactly how traffic patterns

(02:01:02)

have changed. I was going to make sure, because we just rezoned and this effort is new, so I just want to make sure. The question is, are you going to also retroactively look at newly rezoned areas? Because we just rezoned last year.

(02:01:16)

So yes, we are studying that area. It is not part of the new funding, but it is part of the work that we do in the normal course of business.

(02:01:24)

Okay. Back to the racial equity plan. The desired outcome of one of DOT's goals is citywide equity in transportation infrastructure by building and implementing a comprehensive plan to serve 100% of underserved communities by 2030. This is a big goal, but it does seem very vague and unrealistic. I think a lot about my community in Southeast Queens, where we have a lot of sidewalks and curbs that contribute to a wide range of things like illegal dumping, flooding, et cetera. So how can DOT achieve this transportation equity goal in underserved neighborhoods by 2030 if, according to another one of its long-term goals, DOT does not expect to build meaningful relationships with those underserved communities until 2036? Essentially none of the indicators for this outcome relate to any new infrastructure investments that would be needed to achieve a citywide equity and transportation infrastructure goal. We just want to understand why there is a lack of indicators that match these critical aspects of the outcome. Thank you.

(02:02:34)

Council member, I really do want to underscore that transportation equity is central to what we are doing. I think the agency has made great strides, but it is going to be even more of a priority in this administration. We have brought on some new senior leadership and we have reorganized some of our offices to really create one group that can think holistically around long-term planning and how we embed equity in everything we are doing. We take it really seriously.

One thing we have done is, as part of the New York City Streets Plan, it established for the first time a City metric for how we measure transportation equity and how we identify underserved neighborhoods and invest in them. It is really translating into all of our programs where we are prioritizing our investments in those top-tier equity priority neighborhoods. I want to underscore that. I might have to get back to you specifically on the metrics in the racial equity plan and we are happy to do that.

(02:03:31)

I would love for you all to get back to me because we are doing a budget hearing now. If in your goals you set a goal for 100% of underserved communities by 2030 to have transportation infrastructure, to me all of those things carry a price. So we want to make sure that as we continue towards adoption, your agency's budget reflects the resources that can get you to your goal. I think based off of what we have received, it does not, and there are indicators that do not really match what you have put forward. So I hope that as you go towards finalizing your racial equity plan, you make the necessary adjustments to actually achieve your goal versus just writing some things on a piece of paper because they sounded good.

(02:04:31)

Thank you. Understood. Thank you.

(02:04:33)

Thank you. I am going to ask a question on behalf of CM Brooks-Powers, but this is

(02:04:38)

actually an issue I know is very important to myself as well as the Deputy Speaker and a number of other Council members. On the tractor-trailer overnight parking, on September 28, 2023, the Council passed a Bill that requires the City to create off-street parking for tractor-trailers, with that off-street parking to be in place by December 31, 2025, which has already passed. So just in the interest of time, where have you identified those commercial off-street parking lots? Can you also provide an update on the timeline as well as how much it is going to cost to build municipal lots? So where, how long, and the cost.

(02:05:33)

So yes, thank you for the question. We have been very aware of the issues with overnight truck parking and the new federal rules that have really put pressure on that. As you mentioned, we have been working with a lot of our sister agencies around the requirements of that law. For example, we looked at all the land that we own, which includes public parking lots as well as other pieces of land that we own, and we determined that we do not have space that is appropriate for use in that context. But we are working with our other sister agencies as they lead that effort.

At the same time, we recognized that this is a big problem and that is why we have been setting up on-street metered overnight truck parking in industrial districts where it belongs. That is why the Council passed another Bill really encouraging us to focus on those areas last year. We have been studying other appropriate areas around the City for where we can provide more of that overnight truck parking so that it is not showing up in places where it is not appropriate.

(02:06:37)

So that particular study is beyond DOT. We are still as an agency very invested and doing a lot of work to provide that overnight truck parking in appropriate places. How about other agencies and private parking lots? I know there have been parties interested in renting out their spaces. Have those conversations been going on? We have already passed the deadline, so I just wanted to get a sense of that.

(02:07:02)

Yeah, I think as long as the facilities work functionally, obviously the trucks need a lot of space to be able to maneuver and so that is a big part of the conversation. That is one of the limiting factors, but

(02:07:13)

as the Deputy Commissioner has said, those are active conversations. We are committed to trying to support this goal. I also bring it up every time I meet with the Trucking Association of New York or others and really underscore it because we know this is a big issue for communities.

(02:07:27)

If you can follow up with the timeline that would be great. My last question is just around whether you coordinate with NYPD regarding illegal truck parking

(02:07:38)

enforcement. Yes, we work with them very closely. We have worked with them to do blitzes in particular in areas where we get these complaints and we try to work with them to go back over a period of time so that it is not just a one-time effort and then it goes away. We really try to focus it for a while. Then we work with the Trucking Association and others to provide information on where it is legal, because we do understand that there is a need and we want to make sure that we are doing both the enforcement and providing alternatives. Okay, great. Thank

(02:08:06)

you. Thank you. Last set of questions. Oh, I think I see my former staff in the audience. Milo, how are you doing? Nice to see you. I am going to turn to just a few questions. Resurfacing Fifth Avenue: the executive plan includes additional City funds of $453,000 in fiscal year 2026 only to resurface Fifth Avenue. What will this funding be used for? Please be specific. So ahead of the capital project that is happening on Fifth Avenue, we wanted to make sure that the surface has a good riding surface ahead of FIFA and other events. That is why there was specific funding added in expense for resurfacing the avenue. If it is just resurfacing, why is this not capital-eligible? Resurfacing by itself is capital-eligible, Chair, but because the capital project is coming up, we did not want to affect the capital eligibility of the larger Fifth Avenue project. If we paved it with capital funds, it would basically preclude us from coming back to do the capital streetscape project for a certain amount of time and we did not want to preclude that. Okay. Regarding public realm City funding, was a baseline established starting in fiscal year 2027 for public realm programs? Will this funding just be used to support open streets at its current level or will it be used to expand the program?

(02:09:28)

Yes. So first we are very grateful that the funding was baselined. So we are not going to have to re-gear it anymore, not certainly what is coming up. So I think that is a really important investment for us to be able to plan. As the Commissioner said earlier, we do see the program growing. It is bigger at this point this year than it was last year and it is not constrained by the money. We have always been able to do whatever has been needed, even if we have to move some money around internally. So we are committed to growing the program and not just from a money perspective but providing programming where it is needed. We were working a lot on process to make sure that partners get paid much faster. I think the money and the long-term planning enable us to be able to do much more in terms of working closely with those partners. So fair to say it is expanding. Yeah, we do not turn anyone away because of money. What are their plaza

(02:10:18)

programs will receive funding,

(02:10:24)

if any? So we are committed to expanding our plaza program and we have an applicant-based process for that every year. As part of that we have our plaza equity funds, or our public space equity funds, because it goes beyond plazas now.

(02:10:39)

And so we want to make sure that whoever has an idea for a plaza we can work with them, whether to test it short-term as an open street, whether to eventually build it capitally, to provide ongoing maintenance support. This is something we are very committed to as an agency.

And my last question is on street lights. In fiscal 2025 it took an average of 5.3 calendar days to repair street lights, which is a 20.5% increase from 4.4 days in fiscal 2024 and 76% slower than the three days in fiscal 2021. It takes a kind of 22 calendar days on average to repair arc lights, which is 17.6% slower than the 18.7 days in fiscal 2024 and 45.7% slower than the 50.1 days in fiscal 2021. The MMR indicates that delays were due to weather-related outages and coordination issues with utilities during underground infrastructure work. No explanation of the continued performance decline was included. The Executive Plan has an additional investment in fiscal 2026 only for streetlight maintenance. What will this money go towards? Is this money going towards already existing contracts for streetlight maintenance?

(02:11:50)

Yes it is. So this funding is going toward already existing contracts with the vendors. What it sounds like... I am a

(02:11:53)

little concerned about that. With this money, will this money be directly used to... we met with them this week on various issues. We are

(02:12:08)

constantly talking with them. But what is happening with our street lighting system is that overall it is pretty aged, and whenever we have a Con Ed issue, oftentimes it has something to do with the underground conduit needing to be replaced, and that is not just changing a bulb but it is more than a quick repair. So you are raising a valid issue. It is something that we are working on both internally with our contractors and with Con Ed. I mean, between now and adoption is there some way

(02:12:36)

to add resources to focus in on increasing the coordination? Because it is something that we hear time and again, and this is a basic and essential function of the department. If this funding is not being used to coordinate with Con Ed, then I have to ask what is being done differently, because the current contracts and systems of operation in place do not seem to be working well. So the coordination is not something that we need funding for. Again, it kind of comes back to the physical plant, the infrastructure itself. We are also looking at advancing some capital projects for larger areas in each borough where we know that the street lighting infrastructure is old and needs to be replaced in order to be reliable. But that is kind of the area that we are looking toward in the future. And my last question is: is there additional money in the budget for updated street lighting?

(02:13:35)

Yes, there is. We received $331 million in order to replace every LED in the City and then also to provide sensors in every street light that will give us real-time information on the functioning of that street light.

(02:13:48)

Thank you very much, Commissioner. Thank you. Okay, I think we are actually done for this portion of the Department of Transportation hearing. So thank you so much, Commissioner. I just want to give a special shout-out — you have an amazing First Deputy Commissioner, Margaret, who is very helpful to a lot of us and has been. So thank you so much. Just wanted to give you a shout-out, but not that I do not like the rest of you guys, but you know what I mean. Thank you so much everyone. Thank you, Council Members.

(02:14:18)

Okay, and we are going to roll right into what is next. So we are just going to take a moment to transition. Keep it down, please. Quiet, please. We are about to resume. Please have a seat. Please. Thank you very much for your kind cooperation. Can I start?

(02:21:59)

Yeah. Oh, we are good. Okay.

(02:22:04)

Hello. Good afternoon everyone and welcome to the second fiscal year 2027 Executive Budget hearing for the day, focusing on the Department of Consumer and Worker Protection. Council Member Lee, I am joined by our Speaker, Speaker Menin, as well as Council Member Harvey Epstein, Chair of the Committee on Consumer and Worker Protection. I would like to recognize we have been joined by Deputy Speaker Williams, Council Member Wong and Pierina Sanchez and Council Member Schulman.

So welcome to our Commissioner, Sam Levin, and your team. Thank you all for joining us today to answer our questions. On May 12, 2026, the administration released the Executive Financial Plan for fiscal years 2026 to 2030 with a proposed fiscal year 2027 budget. The Department of Consumer and Worker Protection's proposed fiscal year 2027 budget represents less than 1% of the administration's proposed fiscal year 2027 budget in the Executive Plan, and this is an increase of approximately 5% from the fiscal year 2027 Preliminary Plan. This increase results from several actions, mostly from the significant and sustained increase of 77 positions in fiscal year 2027, increasing to 181 positions in fiscal year 2029. As of April 2026, budget headcount was 85 more than their fiscal year 2026. But headcount aside, the Mayor announced plans to double the budget in order to strengthen worker protections and enforcement. In addition, the agency has a 19.3% vacancy rate that makes it difficult to meet its operational demands.

We were pleased to see that these additional funds were partially included in the plan. My questions will largely focus on the Mayor's campaign promise where he pledged to double the agency's budget, the re-estimation of the financial literacy expansion and the savings that we are seeing from discontinuing the cloud migration program.

(02:24:15)

Now at this time I will turn it over to Speaker Menin for her remarks. Thank you so much, Chair Lee, and I really want to thank our Finance Chair for her great work on holding these hearings. I want to thank our Consumer and Worker Protection Chair, Harvey Epstein, for his terrific work on chairing this committee. I want to thank you, Commissioner, and your team for being here, and to all the advocates that have taken time to participate in this budget process.

This hearing in particular is very meaningful to me as I had the honor of serving as Commissioner of this agency and as Chair of this committee, and I have garnered a very deep appreciation over the many years for the dedicated public servants who carry out this work each and every day. But those experiences also reinforce the importance of rigorous oversight and responsible fiscal management. Our responsibility today is to ensure that the fiscal year 2027 budget adequately equips the agency to meet its mission while delivering transparency, efficiency and measurable outcomes for New Yorkers.

The Mayor pledged to double the budget during his campaign, recognizing that the agency needs greater funding to be successful. However, in the Executive Budget the Mayor pledged an additional $3.7 million, bringing the agency's total fiscal year 2027 funding under his proposal. We in the Council have consistently warned that insufficient funding could hamper the ability to investigate complaints and enforce local laws. To ensure that the agency has the staffing and operational capacity needed to carry out responsibilities assigned through local laws, the Council has called for $32 million for the agency.

I understand certainly that behind every single line in the budget there is a real impact on our communities. As we review the budget, the Council will closely examine whether the proposed investments are sufficient to meet current and future needs, whether resources are being allocated equitably and whether the agency has the staffing, infrastructure and operational support necessary to succeed. In particular, I am concerned about whether the department has sufficient staffing for its wide range of oversight and enforcement responsibilities, particularly on newer items that stem from Council-initiated laws covering for-hire legal driver deactivation, security guard minimum wages, protected time off, delivery worker laws and other items.

I just want to say the Council has passed so many important bills in this regard, and so we really want to make sure that the agency then has the proper resources to enforce them. Because we have done all this work to pass these laws, but if we do not have the resources to enforce them we are not really getting the results that we need. We will also be looking carefully at how the administration plans to address ongoing challenges, improve service delivery and ensure that taxpayer dollars are being spent effectively and responsibly. New Yorkers deserve a government that is responsive, accountable and capable of meeting the moment. Today's hearing is an important opportunity to assess where progress is being made, where gaps remain and where additional actions may be necessary in the future. I look forward to a productive discussion and working collaboratively to ensure that this agency has all the tools and support needed to serve the people of the City. I am now going to turn it over to Chair Epstein for his remarks.

(02:27:55)

I wanted to thank you, Chair Lee, and the Speaker for your leadership on these issues. I do not know — especially Speaker Menin — your familiarity with these issues both as the Commissioner and the Chair of this committee is really invaluable. I wanted to thank the Commissioner for joining us today to talk about the Consumer and Worker Protection budget for this upcoming fiscal year. As we have heard already, the questions we are going to be talking about are around the additional positions that you are hiring, the needs that the agency will have to ensure that it is fully funded to make sure that the workers and the consumers in New York get the support that they need. We really want to

(02:28:33)

hear about the increased numbers of active workers under consumer protection laws, as the Speaker mentioned, and whether the proposed budget will ensure that they have enough staffing in place to make sure we follow through on those needs. My personal history, as well as the Speaker's, means we were really uniquely able to understand these concerns and see this history for New Yorkers.

I do want to thank Commissioner Levin for being here, your Deputy Commissioner Elizabeth Logan, Chief of Staff Karl Ortiz and General Counsel for being here today. We really look forward to this active conversation over the next few weeks to figure out what our goals are together, to ensure that the committee and the staff and the Speaker and the Council make sure we have enough resources to ensure that you are getting done what New Yorkers need. I want to thank my team, the legislative division — Cyrus Wayne, Natalie Melter — my staff, Jackson Fisher, Jenna... and the finance division, Glenn Lee, Daniel Groh and Shima... who really put this together to make sure that we have a successful hearing. Chair Lee, I turn it back over to

(02:29:42)

the Chair. Great. I also want to recognize we have been joined by Council Member Morano on Zoom as well as Justin Sanchez. So before we get started, really quickly, I just wanted to announce some logistics. As you all know if you have heard me speak at other hearings, because of the crunch in time for Executive Budget hearings we are going to do public testimony all on one day — June 10, starting at 9:30 a.m. So please join us that day. We are going to try to make it as productive as we can. Executive Budget hearings for the public testimony portions: Wednesday, June 10, starting at 9:30 a.m. So please make sure to let folks know. With that, I will turn it over to

(02:30:56)

Thank you, Speaker Menin, Chair Epstein and members of the Committee on Consumer and Worker Protection. I am Sam Levin, Commissioner of the Department of Consumer and Worker Protection. Today I am joined by our General Counsel Michael Tiger, our Chief of Staff Carlos Ortiz and our Deputy Commissioner of the Office of Labor Policy and Standards, Elizabeth Wagoner.

Thank you for the opportunity to be here today before this Committee to testify on the work of our agency and our Executive Budget for Fiscal Year 2027. As the nation's leading municipal enforcement agency charged with delivering economic justice, we leverage our authority to bring New Yorkers real economic relief and protect them from predatory, deceptive and unconscionable practices that violate their rights as consumers and as workers. This includes pioneering cutting-edge protections such as the City's Consumer Protection Law, Protected Time Off Law, Fair Workweek Law and delivery worker laws, including the minimum pay rate for delivery workers. Through licensing more than 45,000 businesses across over 45 industries, we ensure a level playing field for responsible small businesses that are integral to New York City's vibrant communities. We also provide essential services such as free tax preparation for individuals and families, as well as tax prep services for self-employed workers and small businesses, and one-on-one financial counseling to ensure New Yorkers keep more of what they earn and can plan for their futures.

Though it has been just shy of six months under my tenure, it has been a privilege to serve as the Commissioner of an agency that champions millions of consumers, workers and families across the City day after day. I will provide the Committee with an overview of the Executive Budget for Fiscal Year 2027, the work of our agency and our path forward in continuing to build a fairer and more affordable City for all New Yorkers under Mayor Mamdani's administration.

Starting with our budget for Fiscal Year 2027: the Executive Budget is approximately $... with an active headcount of 400 and an authorized headcount of 561, the highest authorized headcount our agency has ever had. This is due in no small part to the immense support and recognition of our agency's work by our Mayor. Mayor Mamdani's Executive Budget represents the single greatest investment in consumer and worker rights in history. All told, we will be receiving a total of 181 new lines in personnel services by Fiscal Year 2029. The breakdown is as follows: in Fiscal Year 2027 we will receive 77 lines in personnel services; in Fiscal Year 2028 we will receive 76 lines and $7.3 million in personnel services; and in Fiscal Year 2029 we will receive 28 lines and the remaining personnel services. The new lines we will be receiving in Fiscal Year 2027 will be strategically deployed to immediately begin implementation of major new laws and much-needed standard protections for New Yorkers.

Moving on to the important work we do: it has been just shy of six months since the start of my tenure and I am beyond proud of what this agency has already accomplished under the Mamdani administration. Our team has been at the forefront of the administration implementing cutting-edge new mandates, aggressively pursuing new protections and securing victory after victory for the people of New York. These range from our expanded delivery worker laws, including a minimum pay rate for grocery delivery workers, an expanded Protected Time Off Law and soon-to-come deactivation protections for key workforces, and more licenses for City street vendors. I also want to be sure to emphasize Chair Epstein's much-needed legislation to address the student loan debt crisis in our City. Local Law 84 will be expanding our critical financial counseling and services network by providing student loan debt services, which will be essential for New Yorkers.

In addition to the new laws and requirements, we have also taken more proactive and innovative steps to strengthen protections for those who make our City run. Earlier this year, under the Mayor's Executive Orders, we adopted the strongest prohibition on hotel fees in the United States. This rule protects both New Yorkers traveling outside the City and those visiting our City from unexpected and costly fees, with projected savings of up to $35 million a year for New Yorkers and up to $31 million a year for visitors. We also proposed rules to ensure that consumers can easily cancel automatic renewals and subscriptions. Our click-to-cancel rule is estimated to save New Yorkers up to $62.5 million a year, according to an analysis by the Roosevelt Institute. Lastly, we finalized the Shield Rule, a debt collection rule that provides New Yorkers with the nation's strongest protections against debt collector harassment.

In addition to expanded protections under our rules, we also released a benchmarking report on a data-driven enforcement strategy for New York City's Protected Time Off Law, leading and guiding the nation in education and compliance on a cornerstone workplace right. This work to further New Yorkers' rights will only continue as we proactively leverage our authority to pursue an ambitious agenda delivering on the Mayor's vision. While we have been working to implement the protections afforded to New Yorkers, we have also been fighting harder than ever before to vigorously enforce our laws, cracking down on predatory corporate practices to hold bad actors accountable. We started 2026 by launching a robust compliance...

(02:36:44)

...sending notices to various industries, reminding them of their obligations under the law and the repercussions that arise from non-compliance. This past year we exposed Uber and DoorDash for deceptive design tricks that made it harder for consumers to tip delivery workers, driving down worker pay by more than half a billion dollars in New York City alone. We have shown major corporations that there are consequences for violating our laws and we are actively seeking millions in penalties and restitution from numerous predatory businesses for exploiting and cheating New Yorkers.

These efforts span across our work delivering real results for consumers, workers and small businesses alike. For example, we secured $5 million from delivery apps for violations of minimum pay rate and more than half a million dollars for freelancers ripped off by production companies. We announced a one-and-a-half-million-dollar settlement with Dunkin' and Taco Bell franchisees for violations of the Fair Workweek Law, securing economic justice and fairness for more than 760 workers. We took legal action against predatory businesses like Extra Space, Radiant Solar and Nansen Recovery Corporation, seeking over tens of millions of dollars in penalties for deceptive and illegal schemes to raise costs for New Yorkers. We also went after major employment agencies, including CMP, Golden Rose and Delaney's, winning almost $1 million in restitution for individuals who faced exploitation in violation of their rights by these businesses. We announced a settlement of more than $875,000 with Hungry Panda for violating New York City's fee cap law and charging small immigrant-owned restaurants thousands of dollars in illegal fees — the first action our agency has ever brought under this authority. Most recently, the Mayor announced our action against Honda of the Bronx, a used car dealer engaging in widespread deceptive practices.

All of this work is a clear reminder that under this administration, there is zero tolerance for companies that violate the law and that we will fight to bring justice to the New Yorkers that face abuses. The numbers speak for themselves: within the Mayor's first 100 days we had already secured nearly $10 million for New Yorkers, and that number is only growing as we continue to deliver economic justice to consumers, workers and small businesses across our City.

This is just the beginning of a transformative era and we look forward to continuing a relentless fight to bring accountability, affordability and economic justice to the people of New York. I thank you for the opportunity to testify today and for your commitment to championing consumers, workers and families in this new era of economic justice for all New Yorkers. I would again like to express my gratitude to Mayor Mamdani, to Chair Epstein, to the Speaker, to Chair Epstein and members of this Committee and to all of our partners in this room for their steadfast advocacy on our agency's behalf. It really means the world. We are eager to continue our success delivering millions in real economic relief to countless New Yorkers and advancing Mayor Mamdani's agenda for a fairer, more affordable New York City. I look forward to answering your questions.

(02:40:04)

OK, great. Thank you very much. We appreciate the testimony today. I want to get a little bit more into the headcount because I know you mentioned it, and I think our finance team had some concerns about that assertion, because it is our understanding that last year in terms of where the budget was — both headcount and overall amount — it actually was higher last year. So we sort of want to get into those numbers. I am sure the Chair will get into that as well. Do you have any comments on that?

(02:40:39)

Sure, and I am happy to explain that, Madam Speaker. Last year's budget was — you might say — inflated by the inclusion of the Summer Contract City Residents program. That was budgeted at $12 million for Fiscal Year 2026. Under the current plan, we are eliminating that program for City residents effective in Fiscal Year 2027. So that is going to reduce $12 million, and then $14 million in Fiscal Year 2027, $16 million in Fiscal Year 2028, and we are plowing that money into our enforcement work. If you look at our route-to-budget for enforcement, it is growing significantly.

(02:41:14)

Okay. I guess what we want to get clarity on is: you mentioned in your opening statement the highest authorized headcount of 561, but your active headcount is 409, which is lower than 417 this past year. So we want to understand that.

(02:41:33)

Thank you, Madam Speaker. We do have a vacancy rate of 16% right now, so we have a lot of hiring to do in Fiscal Year 2027. We have vacancies to fill and we have 77 new lines to hire. I can tell you that if you go onto our website right now, we have jobs posted. We are already actively engaging in hiring. I would note to the Speaker that our authorized headcount for Fiscal Year 2026 was 483, but obviously with the Mayor's investment for this fiscal year and moving into Fiscal Year 2029, we are looking at an overall 40% increase in the headcount of the agency.

(02:42:06)

And how quickly do you think you are going to be hiring?

(02:42:07)

We think we are going to be on pace to hire. I do not have a month-by-month breakdown, Madam Speaker, but we are going to be on pace to both close our current vacancies and hire the 77 through Fiscal Year 2027. We are already moving.

(02:42:21)

So the Council, as you know, is calling on the administration to allocate an additional $32 million to the budget to meet the needs of the numerous pieces of critical legislation on consumer and worker protection that the Council has passed in recent years. Do you feel that this additional funding would be sufficient to appropriately carry out the agency's mission?

(02:42:41)

Well, I have not had a chance to look at the details of the Council's proposal. I learned about it today. I greatly appreciate the vote of confidence that you have placed in the agency. I know you have a particular affection for the agency. With respect to the Executive Budget, which I have looked at, we feel confident that with respect to the laws that the Council passed — the new mandates as you reference, Madam Speaker, for our agency — the 181 headcount that the Executive Budget authorized will be sufficient to meet our needs.

(02:43:23)

OK. Well, let me just, before I move on from that — so you are saying that you do not need any additional funding beyond what is in the Executive Budget?

(02:43:30)

We always welcome more resources generally, and I know that the Council is considering new laws that would put new responsibilities on us. We will have follow-up conversations about new needs there, but with respect to the Bills the Council has passed that are already being implemented, we worked really closely with City Hall and we feel we have what we need.

(02:43:53)

OK. Earned Safe and Sick Leave time — so I want to talk a little bit about that. You issued compliance warnings to roughly 56,000 New York City employers following the implementation of the Earned Safe and Sick Time amendments. What percentage of those employers have achieved compliance and what enforcement actions have been taken against those that have not?

(02:44:14)

I appreciate the question. We take a lot of pride in that warning process. I am going to turn things over to my colleague to share a little more, but the goal of that was not to open investigations of all of those thousands of businesses. It is twofold. One, we wanted to make sure businesses understood their obligations. I do not believe in gotcha enforcement. I believe in making sure businesses understand their obligations and workers understand their rights. That was the goal there. But also we wanted to make sure businesses knew that...

(02:44:40)

...we were watching. Given the high volume of complaints over the years we have gotten about this, I wanted businesses to know that we took violations really seriously. That is why we followed up with warnings. That is why we followed up with enforcement.

(02:44:53)

With respect to the number in compliance, I do not think we have investigated every one of those businesses, but I will turn things over to my Deputy Commissioner to share more.

(02:45:03)

Sure. That is echoing everything the Commissioner said. To generate that list, we are looking at all of the restaurants in the City, which obviously is information that the agency maintains, and you know this historically can be a high-violation industry. All of our past targets going back years and years and years — every company we have ever investigated in the past also got a letter like that. As we hear from workers as the year goes on, we will be able to look and see: did this company get a notice of the new laws? There is absolutely no excuse not to be in compliance with the law.

And what type of outreach is the agency doing, particularly for small businesses that might not be aware of the new requirements? How do we make sure that they are aware? What kind of outreach is happening in that regard?

(02:45:53)

This is a key priority for me. I spoke to the National Supermarket Association yesterday about this. We hold online seminars for small businesses. We are also educating workers, but business education is key. Our Deputy Commissioner for External Affairs is here and we can add more on these efforts.

(02:46:09)

Thank you. As a matter of fact, I think education is a core component of how the Commissioner wants to approach our work. As the Commissioner mentioned, we do not play gotcha with our laws. We want to make sure we are engaging with folks in an honest discussion. Besides these webinars and what we call "know your obligations" events with business associations and representatives, we also engage in direct outreach to businesses both through our community affairs team and our enforcement team, which offers what we call educational inspections where they offer any new business a free educational inspection to help them understand what their obligations are. We reach thousands of businesses through these efforts across the calendar year and it is something we are looking to build upon.

(02:46:53)

And how many staff do you have dedicated to enforcement around this topic? I am going to kick that to our Deputy Commissioner.

(02:47:01)

We actually have our investigators, attorneys and data scientists in the Office of Labor Policy and Standards. Not including the new lines we have just received, we have 54 people working on all of our laws. The biggest area of work for us is our threefold: Paid Safe and Sick Time, which we are now calling the Protected Time Off Law, the Fair Workweek Law and the delivery worker laws.

Moving to a new topic: the FARE Act and housing affordability.

(02:47:41)

So since the FARE Act took effect on June 11, 2025, the agency has received over 1,400 complaints related to illegal broker fees, but it appears only 50 summonses to real estate brokers, landlords or property managers have been filed, which equates to roughly 3.5% of total complaints. Can you explain why that is the case?

(02:48:05)

I am happy to address that. I will say briefly that since the FARE Act was enacted, we are now up to 73 summonses, $27,000 in penalties awarded by OATH and $15,000 awarded in restitution. But there is still a gap, as you recognize. The basis for that is twofold, and our General Counsel can add more on this one. Sometimes — often — we will get complaints from folks who were not actually charged a broker fee, or maybe their friend told them they were charged a broker fee, or they were subject to an attempted charge. We will follow up. We will not always be able to follow up and actually reach that broker. So part of it is just general awareness of the FARE Act, and we are very proud of our outreach campaign on that. Part of it also is just the OATH process. A lot of these cases are moving through the process and you are seeing the number of recoveries for consumers steadily rising. My colleague might want to add to that.

(02:48:55)

No, that is absolutely what we took when this law came on board. We took it very seriously and prioritized. I think just to note this new investment that the Commissioner is talking about by the Mamdani administration is definitely something we are going to use for the Fair Fares Act and other rental issues. The issues that arose during the Mayor's rental ripoff hearings are definitely a topic that we are going to use when we get these new lines on board to redouble our efforts, especially for the Fair Fares. Okay. I want to

(02:49:27)

switch gears to financial counseling, and then I am going to pass it over to Charlie. So the percentage of financial counseling clients achieving a financial goal within their first year dropped from 21.1% in fiscal year 25 to just 17.3% in fiscal year 26, which is the lowest rate in at least three years and well below the agency's directional target to improve this figure. The number of clients served also fell by 6%. Given the administration's stated affordability agenda, what does the fiscal year 2027 executive budget include specifically for this program and what is driving the declining outcome rates?

(02:50:13)

Yeah, well, let me start by saying empowerment centers serve thousands of New Yorkers every year with respect to the outcomes on the MMR. The timeframe was short, into a year. Many of our clients are looking for longer term financial help where we just do not have data, so not all of the benefits that our clients in the financial empowerment centers realize come through in that data because it is a longer term estimate. As a general matter, though, I completely agree. We want to get more New Yorkers using our financial empowerment centers. We have capacity. We have wonderful partners all over New York City. We want people getting in. Many of our staff have used these counselors and gotten outstanding results. We want more New Yorkers to benefit. In terms of the budget, I do not know if you have that handy for financial empowerment. We are targeting an increase. It is going to be in fiscal year 26. It is $4.

(02:51:10)

8 million. I would also appreciate the Commissioner's point about our staff using our services. We are very proud of the financial empowerment centers. We have even had commissioners who have gone through our financial empowerment centers. And since absorption, we have increased our savings for New Yorkers and we helped reduce debt by $135 million, so it is a fundamental program for the agency.

(02:51:33)

Okay. All right, thank you. I am going to turn it back over to

(02:51:36)

Charlie. Actually, perfect segue. So the budget reflects savings of $2 million in fiscal year 26 from a re-estimation of the Office of Financial Literacy expansion. Can you clarify which planned programs or expansions are being delayed and what the revised realistic timeline looks like?

(02:51:51)

Yeah, absolutely. This was purely a function, Madam Chair, of background checks for vendors taking longer than we thought they would. So we have the exact same goal as we did a year ago, serving every school district by the end of fiscal year 29. We have had to delay the expansion by a little bit due to essentially a ministerial matter.

(02:52:17)

Okay. And what is the estimated revised timeline? I think it is actually the same for reaching the goal of every school district. The end goal is the same, but it is just the middle part that is shifting. Okay. And the budget reflects savings of $5,000 in fiscal year 27 from discontinuing the agency's cloud migration project. I just wanted to know what the rationale was for it and does the agency have a plan to modernize its

(02:52:41)

technology going forward. Oh, absolutely. And this actually reflects that attempt to modernize. One of the things we heard loud and clear from OMB and our outstanding admin division is that our IT division takes this really seriously. As we are insourcing more of our services and bringing functions in house, we canceled a very expensive contract with a service provider, replacing it with boots on the ground in the building, which we think is going to deliver better services for less money.

(02:53:11)

Okay, perfect. And bringing it in house staffing-wise, what does that look like? I believe it is not even very many people. We are going to have nine new folks for our IT division, and that is going to be transformational, we believe, in our ability to modernize our IT infrastructure.

(02:53:30)

Okay, perfect, great. And I am going to stop there. I would love for members to ask more questions, but I am turning it over.

(02:53:37)

Oh, yes, I am sorry. We have also been recognized by CM Aldo Ball, a Council Member on Zoom and CM De La Rosa. With that, I will pass it off to Chair Stevens.

(02:53:49)

Thank you, Commissioner. Thank you all for being here and for the time you put into these issues we care so much about. At the preliminary hearing, we talked a lot about the wait time that people had. When someone had an issue, it would take them six months before they would even hear from someone. The investigations would take potentially a year. Based on the funding that is being proposed in the executive budget, what would a New Yorker who works at McDonald's and feels like they are not getting their schedules appropriately, and there are concerns around that, experience?

(02:54:24)

The wait time for an ordinary New Yorker is going to depend, of course, on how much information we get and whether we just have to work by violation. I think the deeper problem that you are absolutely right to highlight is what you also said, which is a six month backlog of enforcement. What that means is that folks who had their wages stolen — in some cases the employers who stole them are sitting on that money while workers are being left holding the bag. Our goal, and more than our goal, we believe we are now equipped, thanks to the Mayor's investment, to take that six month backlog and reduce it to zero. I want to turn things over to our Deputy Commissioner to say more about that.

(02:55:01)

That is right. In the metrics that we took that led to the development of the ultimate number, that is explicitly what we are looking at — what would it take to bring it down to zero. We believe we will be able to achieve that.

(02:55:16)

And so how many investigators are you planning to hire?

(02:55:20)

It is going to be happening over a period of years, but we have 10 vacancies posted today for everyone here.

(02:55:30)

Okay, everyone watching this hearing, please go online to find the job and apply. The civil service exam is also open right now and closes on June 23, so we are looking to get it done very quickly and bring new people on. If you could help circulate that information, I am happy to put out an e-blast to let people know. So if you send that over to my team, we are happy to spread the word. Our pleasure.

(02:55:53)

Thank you, Chair. We blasted our job postings out yesterday to all elected offices, so we can make sure we re-up that again. Thank you. There are also consumer protection investigator positions with the same civil service deadline, for all of you watching at home.

(02:56:07)

Okay, so 10 investigators is going to get you to zero wait time?

(02:56:13)

10 will not, but obviously there are resources coming each year and so this is really pacing us at a rate that will allow us to hire up and absorb new people. Of course, if we have the ability to move faster and bring on more, and we are seeing that there would be a benefit to the backlog, we will be working with our partners to show them those metrics and move forward.

(02:56:42)

So I just wanted to know — we are not getting to zero in the fall. People are still waiting six months to even speak to someone. That is what we were told, even if they submitted their documents. When are we going to get to a place where someone would be able to get to a short wait time? Are we talking about 2029? Are we talking about 2030?

(02:57:14)

It is very hard to say, but I would love to try to achieve that within a year. We are going to have to see how it goes. If I may make two points, Chair — one, just to be clear, our worker protection division is getting 10 investigators this year, but that is part of a total of 29 new folks, which I do not know what percentage that is for the division, but it is massive. I think it is almost a doubling of our

(02:57:40)

investigation capacity. So just to be clear, how many investigators do you have now? You are going to get 10 and you will double the number of

(02:57:46)

investigators. But there are also attorneys and some clerical staff. I do not

(02:57:49)

know. I believe we have 11 investigators now, so adding 10 more is almost doubling it.

(02:57:54)

And then you are going to get some lawyers too, I assume?

(02:58:00)

Supervising investigators, which also increases capacity on that team, and lawyers as well.

(02:58:04)

And so how many supervisors, how many lawyers?

(02:58:10)

Starting off with a total staff of 54 before this addition, and then we will have 29 additional afterwards.

(02:58:23)

10 investigators, a couple of supervisors, and then we have got... let me see if I can do this. Okay, we have got 10 lawyers, a couple of supervisors, and there are going to be data scientists doing data analysis for the team.

(02:58:43)

So we use our data analytics team on our class-wide cases under all of our laws to take employer data and identify precisely and count each violation that each worker in the class experienced. And so in active litigation cases, how many do you have for your current legal team?

(02:59:08)

Most of our enforcement work is pre-litigation. And so we have a number of large class cases that attorneys are handling in various stages of the process, whether that is in the data analytics process or in the settlement negotiations process. Could you give me a general number? How many cases are in court?

(02:59:40)

How many cases are in negotiations? I am sure you have that number somewhere.

(02:59:46)

We would have to follow up with you to give you a precise number. I can say today that it is several dozen, but we can definitely get you those breakdowns. I would appreciate

(02:59:54)

that. I am concerned about the backlog. I know the Commissioner and you are deeply committed to this work — you would not be doing it otherwise. To say that maybe in a year we might be in a better position is a little concerning to me because this is a priority for all of us. I am wondering if you had more resources and staffed up sooner — like instead of hiring 10 investigators you hired 15 — obviously that backlog would reduce quicker.

(03:00:27)

That is a fair statement. One point I would make, and I will now turn it over to the Deputy Commissioner — we are such a lean agency that the same folks who are doing those investigations are interviewing candidates, and they are going to be spending a lot of the summer both full steam ahead on their cases and full steam ahead on interviewing. They are going to keep interviewing through the rest of the year. The reality is that new lines are a wonderful problem to have, but you can only bring so many people on board. We really designed this carefully and OMB would not have authorized

(03:01:10)

that headcount if we did not show them in granular detail that we had the capacity. We have had conversations about what additional capacity would mean in hiring, but I just want to say that there are operational limits on how many folks we can bring on. We could hire a million people tomorrow but we would not actually be able to close the backlog tomorrow.

(03:01:33)

That is right. Just in terms of the resources to train people, this is the right number to be able to absorb new staff, to have them learn and follow our procedures for investigations and to ultimately continue delivering the high level of service that we offer workers.

(03:01:53)

If you choose one industry — we have heard from delivery workers that every day 200 to 300 people are coming to them with issues and they do not have the capacity to handle it. So how do we support them to ensure that they have a frontline person to limit the number of cases that are coming to you? Do you have resources in the budget to help organizations like that who are really on the front line? We do have resources in the budget to make sure that we have the staff to meet those needs. We are also working very closely with outside partners to make sure that there is an orderly process and that people know their rights. Do you want to talk a little bit about the activation and implementation?

(03:02:40)

Sure. Just to first say, all of our community partners do extraordinary work. They are a critical part of the worker protection infrastructure. I definitely want to see them continue to be supported to do that work so that they can continue to refer us cases and so that we can continue to refer them cases on matters outside of our jurisdiction. It is really critical. We will continue to work with organizations who are working with workers to make sure they are able to get delivery workers to us so that we can pursue deactivation

(03:03:17)

matters for them. So you have no money in the budget to subcontract them to do this work? Is that what I hear you saying?

(03:03:26)

We do not manage those contracts. That runs through... Carlos should speak to this.

(03:03:32)

That is correct. The money that we were allocated was for personnel services and to increase the agency's capacity. I recognize your point and am in full agreement that over the past 10 years the agency has had a historic underinvestment. That is why we are incredibly excited about what the Mayor has done, obviously with the support of the Council and our allies that you are bringing up in this conversation, Chair, to bring us to a place where we can meet our mandates and hopefully grow even further as new mandates come.

(03:03:57)

I mean, I do think about street vendors and they do not always come to us right away.

(03:04:03)

They need an organization like the Street Vendor Project to figure out what is an appropriate case to bring to us. They have those relationships. It would be great to see funding from the agency. We know we are going to have to enforce these laws, but these are really culturally competent organizations who are on the ground and are able to figure out what should come to us and what should not. Should there not be resources from your agency going

(03:04:29)

directly to them? Well, I would say, Chair, that that partnership exists and will only grow. We plan to work closely with the Street Vendor Project and our new Executive Director for Street Vendors as well, to go directly to street vendors and to go to the places where they are vending to ensure that they understand what services and licenses are available through the agency. That is our job. Our current allocation is what it is and again we look forward to having these conversations if we are going to need more resources

(03:04:53)

eventually. Yeah, I appreciate that. Maurice is up, but

(03:04:57)

Carlos needs resources to do this work. I think... no, thank you.

(03:05:01)

Thank you. Sorry, I was out. I would not disagree. I have had conversations directly with other organizations. I know that they have conversations directly with the Council themselves over discretionary funding. So I understand that those avenues are available too. I am going to speak to our budget and our resources and what we have been allocated. I would just add to that

(03:05:19)

that we do not give money to those organizations directly. What I will say, though, is that I really believe that it is symbiotic in a way. We are working closely, for example, with the Street Vendor Project to get the word out this summer about getting off the wait list and getting a license. That is going to provide a real value proposition for the Street Vendor Project to all the vendors. Similarly, with the Worker Justice Project, they are going to work with their members to explain to them the deactivation protections. We are going to work with them. I think the more that we partner closely with these organizations, the more that they are going to be able to offer value to their members. I hope that creates a virtuous cycle where these organizations gain more visibility and reach and that we can do the same.

(03:06:07)

Commissioner, I could not agree more with that statement. I just would say that I know we have colleagues with questions, but I would love to see if there is a way we can get them direct funding to do that work. I have heard directly from all of them — whether it is the Worker Justice Project like you mentioned or the Street Vendor Project we just talked about — there are more members coming to them than they have resources to handle. While you will be the agency empowered to protect their members as well as all the consumers out there, there are not as many resources that they can turn to to be able to do this work. We would love to see the administration play a vital role in getting those resources to them.

(03:06:52)

I hear you on that. To be clear, I think I speak for everyone here — we could not do our job, we could not do the work of protection we have done without partners like them. I totally believe in the vital role these organizations play.

(03:07:07)

And with that, I will pass it over to Charlie. Great.

(03:07:11)

I just also want to recognize we have been joined by CM Ariola online and CM Tiffany Cabán. Come on in.

(03:07:17)

Hello. So we are going to start with the Deputy Speaker, followed by CM Banks.

(03:07:23)

Thank you. Hello. I just have a macro question around racial equity. So how does the agency define equitable enforcement and what metrics does the agency use to determine whether enforcement practices are being applied fairly across

(03:07:37)

communities? I would make two points because I think this is a critically important issue. First is that we know that some of the worst economic abuses are targeted at New Yorkers of color, Black and primarily Black and Brown New Yorkers and immigrant New Yorkers. That is why I am fully committed not only to continuing to vigorously enforce our laws but making sure that our enforcement actually reflects where abuses are happening throughout our City. There have been studies, not in New York but nationwide, that consumers of color, for example, are less likely to report violations to government agencies. What does that mean? It means that is not acceptable. My commitment is to make sure we are serving everyone in New York City, especially those being harmed the most by these abuses. That is why we take so much pride in our outreach efforts. We are aiming to do two events a day, more than 700 events every year. We go to every borough, every community, and what I say to every group is: if you do not feel comfortable filing a complaint with the government, you can go to Worker Justice Project. You can go to

(03:08:47)

Make the Road, go to another group, file a complaint with us. It is critical that we not only sit in our downtown office waiting for complaints but that we go out into the community and make sure that we are serving people who are most targeted by economic predation.

So back to the racial equity plans, though — what goals has the agency put forward that matches what you just said? Well, a key goal, and this came up in the CORE report that came out very recently, is on empowering youth financial empowerment. The fact of the matter is we are at the beginning of summer. We know that a lot of young New Yorkers are going to have their first jobs and they are instantly going to be targets for predatory actors who are going to try to separate them from their paychecks. One of the points that was made by CORE was that the agency should really step up its financial empowerment work, especially its youth financial empowerment work, including a partnership with Kids Rise. I could not agree more with that. We are never going to have the resources to take down every bad actor, even with the Council's generous proposal this morning. So that is why I think it is really important to empower people. In-school banking, which was another CORE recommendation, is something we are implementing. Financial empowerment — we are going to reach every school district by the end of fiscal year 2029. So I thought the CORE report was right on point in terms of our goals and how we are going to meet them over the years to come.

(03:10:14)

And just to go back to equitable enforcement — because you answered that question by primarily talking about workers, but what about businesses? Has the agency conducted any geographical or demographic analysis of where violations, inspections and enforcement actions are concentrated citywide? That is what I am talking about.

(03:10:41)

I apologize. Because I think about budget equity at a budget hearing, what I want to know, and I am always interested in, is where is the City also generating revenue.

(03:10:50)

Are you only generating revenue in certain communities over others? That is sort of the source of my first question, coupled with the other one about whether you have any demographic analysis of where violations are occurring across New York City. I do not have it at my

(03:11:07)

fingertips. I do believe we have pretty good analyses of where we are seeing violations throughout the City, but I also want to be clear about what I said earlier. I do not believe in gotcha enforcement, especially with small businesses. We have seen an exodus of small businesses last year under the final year of the Adams administration. We are really trying to reverse that. I was very proud that the general counsel team returned more than half a million dollars to immigrant-owned small businesses — the first enforcement action in our history to do that — who were ripped off by Hungry Panda delivery. So I am happy to get you additional data on where our enforcement is concentrated.

And I would love that. I asked a similar question — if you do have a map of where you are primarily finding certain violations across New York City, that would be helpful. Thank you. I am happy to see what we can get you on that. I think we do have that. We will follow up. Okay, great. Council Member

(03:12:06)

Banks. Thank you. Commissioner, to you and your team — when it comes to Local Law 168, which went into effect on May 27th just recently, which requires tax preparers to provide consumers with itemized fee disclosures before and after services are rendered, I want to know what steps the agency has taken to educate preparers and consumers about these new requirements to ensure compliance with the law.

(03:12:42)

We take this incredibly seriously. We see so much predation in the tax prep space. It is one reason why we were so aggressive this year in promoting our free tax prep and doing a warning blitz — I think the first in our history — to every licensed tax provider in this City, that we are looking out for violations. Do you want to share more

(03:12:59)

on our implementation? No, I mean, there is a very important topic and something that we always have our ear to the ground on. We had a case against Rocket Tax last year. We are always looking for compliance and for new targets. One of the great things we have is a consumer services unit that is our ear to the ground for all consumer complaints. We look at the trends both in terms of potential targets — and this is in tax prep and all our categories — like individual businesses that we see are repeat violators of the laws and rules we enforce, and what are the new scams that we did not even know about but people on the street are telling us. So we

(03:13:42)

always encourage people to go directly to our website and file complaints. That is really the grist for how we determine how we are going to direct our enforcement. Let me just get my questions out, then you can chime in on the next one if you want.

(03:13:59)

While tax season is technically over, many New Yorkers continue to file extensions and amendments on their returns and utilize tax preparation services throughout the year. Has the agency already done consumer outreach regarding Local Law 168, and if so, what has the outreach looked like and what lessons has the agency learned thus far?

(03:14:27)

I am going to ask Carlos to describe a little bit of some of the specific outreach. But if I just make a brief

(03:14:31)

point — public service announcement for everyone: our New York City free tax prep service serves over a hundred thousand New Yorkers every year, no fees, no fines, nothing. Free tax help is available year

(03:14:44)

round, but there is a large percentage of folks who do not take advantage. Absolutely.

(03:14:48)

Come on over. Yes, and

(03:14:51)

Carlos was going to mention that we are updating our educational materials for businesses as well, and we should be distributing those soon so they can understand the obligations of the law.

(03:15:00)

Okay. And then on the educational materials — we are hoping that they are obviously multilingual. You talked about the public awareness campaigns. What partnerships are you going to be forming to ensure that both consumers and tax preparers understand their rights and the requirements of Local Law 168?

(03:15:23)

Traditionally, our model is based on deep ties with local community-based organizations, being plugged into their regular membership and the convenience of community members. So I think we are going to activate those again. Typically throughout the tax season we hit hundreds of events to help educate consumers, and that even starts before the tax season. So I think we are going to plug into similar approaches and also work with business associations and their representatives. I think that has been a trusted model for us.

(03:15:50)

And what will compliance monitoring look like for Local Law 168? What enforcement tools are available to address violations and has the agency identified any implementation challenges that require additional staffing, resources or legislative changes moving forward?

(03:16:09)

I think we have, in part thanks to the law and the investment by the Mayor, strong authority and capacity to take these on. One technique we have done in the past is sweeps, where we do a broad check, precisely for the reason you said — most New Yorkers are still using private preparers and many of them are breaking the law. When we do a sweep we are sending a message that we are looking across the marketplace. There are two ways we can conduct this. We have a field enforcement division

(03:16:37)

where people are out on the street every day, as we are speaking, going to businesses making sure they are complying with consumer-facing laws and rules of the City. So we have people doing rounds on tax preparers and we have sweeps of those, making sure that tax preparers are complying with the specific laws and rules that they need to comply with. We have lawyers back in the office who are looking at those complaints, like I mentioned before, Council Members, saying which businesses should we be taking a deeper look into. Okay,

(03:17:09)

well, thank you for your responses and looking forward to continuing to work with you. Thank you. We have CM Pierina Ana Sanchez followed by CM Krishnan.

(03:17:17)

Thank you, Chair, and good morning. First, I just want to start by expressing how exciting it is to see the agency's trajectory these last six months. I think any mayor or any executive, a commissioner like you, when they win office, coming in with a track record of success but also an ambitious vision for the agency and a readiness to roll up your sleeves with the team that is there — I just want to congratulate you on everything that you all are doing together for New Yorkers.

I am going to do the thing where I ask all my questions up front and then hope that there is time for a response. Okay, we will take notes. Thank you. So to start — I mean, I am biased, you are one of my favorite agencies, do not tell anyone. You have just been such a fantastic partner on reforming the street vending system in New York City. Special shout out to Carlos back there. We have really reframed this problem together in New York City and I appreciate it.

So my first question is: while I was very happy to see significant investments for the implementation of street vending reform, I remain concerned that the piece around processing 10,500 new general vendor licenses is still too low. I understand that there are six new staff that are going to be added for fiscal year 2027, so I just want to understand the plans for processing these new applications per Local Law 54 with this staffing. The new licenses that are being made available in January — January will be the first increase to the general vendor caps since 1979. So the questions are: when the new waitlist opens, how will the agency prioritize the new general vendor licenses? Do you have a sense of the criteria the agency will be using and how can we ensure that licenses are getting to the hands of the street vendors who have been waiting for decades?

The third question on street vending is outreach. The Chair touched on this a bit regarding the Street Vendor Project and our partners on the ground, but my question is whether there is any dedicated staff within the agency across the 189 lines that you mentioned in your opening specifically for outreach.

And then, as you know, Commissioner, I am ecstatic about the click-to-cancel rule and the momentum the agency has on this policy. I speak for myself and I know many New Yorkers who are just so incredibly annoyed by companies that make it impossible to leave subscriptions, that harass you even after you are gone, and really trap New Yorkers into subscriptions that they do not need. So just a status update on where we are with the proposed rules and is there any staffing associated with implementation of that new rule. Thank you. Okay, thank you — with seconds to spare.

(03:20:21)

Great. I am going to run through each one and we will see how I do. Carlos can back me up. All right — licensing staffing. We are confident we have the capacity in our licensing division to hit the ground running this summer on getting the general vendor licenses out the door. We have an extremely efficient licensing division and I will just say the average wait time is 4 minutes when you are in the office, four days for processing. Typically about 90% of our licenses are now applied for online. We recognize many street vendors are going to prefer the in-person option and that is why we asked for and received 60 new lines. We are going to be able to meet those needs and continue, I think, the best licensing service in the City to our businesses and our newest licensees.

With respect to the waitlist and how to prioritize: we are going to be releasing rules on that in a couple of weeks. I can say as a general matter, Council Member, we will start with the 9,000 folks who are already on the wait list, which was closed in 2016. Once we process those applications we will move on to creating a new wait list and we will start processing those applications. We are going to put out the rule soon, but my commitment is to make sure this process is predictable, people understand it, and people know that even if they do not get a license in the first tranche they know where they are in line. That is really important to us.

With respect to outreach, we really want to go big this summer and Carlos will be able to add to this. I know we are meeting with you in a couple of days about this. We have been working with the Street Vendor Project and the Office of Street Vending with Small Business Services. We know that this is a community not used to being helped by the City — usually when they interact with City officials it is police or other enforcement. We want to reach out to our street vendors with licenses and with information on how to obtain licenses. So we are dedicating staff to that.

Last but not least, we are incredibly excited about the click-to-cancel rule. It is a proposal right now and we are the first city in America to propose a rule like this. We are very excited about it. We received a lot of comments — I do not know the exact number, but one of the most interesting comments came from the Roosevelt Institute, which estimated that this could save New Yorkers up to $260 million every year. That is the scale of tricks and traps we are facing. The next step will be making a decision about whether to adopt the rule and make it final. Do you want to add a little bit to the outreach

(03:23:00)

portion? Yes, thank you, Commissioner. I think we are already developing plans for how to meet vendors where they are, including by identifying high-traffic areas where vendors are conducting their business activity. Our community affairs team is six members right now but they burn a lot of shoe leather. I personally believe they are the best outreach team in the City. Our overall licensing division often contributes as well to helping out on outreach initiatives. So I think we plan to be out there extensively over the course of the summer, also working with agency partners to make sure that we have boots on the ground to accomplish our goals.

(03:23:35)

Thank you. There you go. Thank you, Chair.

(03:23:39)

Okay. Next we have CM Krishnan, followed by Council Member...

(03:23:42)

Thank you, Chair, Commissioner and the whole team. Thank you all so much for all your great work and your leadership. It is great to see all that you are doing at the department together. Deputy Commissioner, first up — and shout out to Carlos Ortiz, also a constituent in Jackson Heights — so I appreciate you all paying close attention to the issues there, from street vendors to taxicab drivers and everything else.

I just have a quick question. As you know, we have talked a bit about having the resources that you all need for the new legislation that we have passed. I just want to make sure — we have talked a lot about street vendor implementation, very glad to hear that. I know, Commissioner, we have spoken a bunch about the taxi driver deactivation bill that we passed and how important that is. So I just want to make sure you all feel that you have what you need for the number of cases that will come in during the look-back period and how that will be managed. Do you feel good with what you have got to unveil that?

(03:24:39)

I do come from ever. I really appreciate the question. I think it was probably a carryover from the last hearing we had. My biggest concern actually going into the summer is how we are going to make sure we can meet the Council's mandate on the outstanding bill they championed on for-hire vehicles and then later in the year, at the end of the year, delivery worker deactivation. I do feel confident. The team is working very hard to put an infrastructure in place. We are going to see what the volume is. If it spikes much higher than we think, we might have to revisit it. But at this point, based on our projections of staffing, we do have confidence.

(03:25:14)

We can meet those needs. Great. And can you say a bit more about whether it is going to be new staff, inside staff, attorneys hired that would be focused on this in particular? What would that staffing look like? Let me turn that over to our...

(03:25:29)

Person in charge of that? Sure. Right now we are very focused on rulemaking and being sure we can get a rule out that lays out some of the key requirements for how apps are required to handle their various obligations under this law. We are looking to staff this law the way we have successfully enforced many of our other laws, with investigators trained to do the initial intake work who often are able to successfully resolve the case without attorney involvement, and then moving to attorneys when that is not possible. We believe that we are going to be able to start successfully handling those...

(03:26:16)

Cases. Very glad to hear it. Commissioner, I would just say in any ways that we can partner together to get the word out in districts where there is obviously a high driver resident population, partner with us, my office, with NYIAD — happy to find any ways to get the word out there. We would love to do that. We are eager to get the word out. NYIAD has been a great partner on this and we would love to work with you further.

(03:26:41)

Absolutely. Thanks for your leadership. I know Carlos will follow up separately on a couple of quality of life issues in the district as well. We wanted to adopt a... so appreciate your partnership there. Thank you. Thank you, Councilmember. Thanks.

(03:26:50)

Thank you, CM Wong, followed by Council Member...

(03:26:52)

Carbon. Thank you. In my district there is a big problem of unlicensed tow trucks. The problem is this: whenever there is an accident, the police are no longer required to show up at the scene. So we have these tow trucks that pop out of nowhere, quite often with fake plates, and with a combination of coercion and threats they are able to convince many of these drivers to let their cars be towed away. The drivers do not know that they were fake, unlicensed, or operating with fake licenses. So it is only my fifth month at the job and I am hearing over a dozen of these complaints that their cars got towed away to some back-alley shop and they are being extorted for hundreds of thousands of dollars in storage fees and repairs that they did not expect. So can you talk about what is being done and how your increasing headcount could step up enforcement of checking their licenses?

(03:28:09)

Thank you. I am very happy that the Councilmember raised this. I am going to frame it up and then turn it over to our General Counsel to talk about our enforcement, including our recent enforcement action against one of these unlicensed companies. Let me just start by saying this is a huge problem across the City — a big, big problem in Queens. One thing I really want to stress is we always want to educate consumers about this. We want to educate New Yorkers to use licensed tow providers. But one thing I always say to people is it is not on consumers to get this right. You have just been in a car accident. Your car just broke down. You cannot realistically expect people to go to DOT.gov and check if their tow provider is licensed. My big focus is on making sure these unlicensed tow companies are held accountable. The onus has to be on the tow companies to stop operating illegally on our streets, not on consumers to do their own due diligence when they are in some of the hardest moments of their lives.

(03:29:05)

Yeah, we take this very seriously. This is one of our core license categories that we get the most complaints about — not just about unlicensed activity. In fact, often it is from licensed actors who are overcharging. The Council has very wisely set very strict limits on how much can be charged during what is a precarious time for consumers, as the Commissioner was alluding to and as you are referencing. So we look through those complaints, we choose which ones are generating the most complaints and we focus our enforcement in that direction. We filed a case against Instant Recovery, as the Commissioner alluded to in his opening testimony. We always have several major open tow investigations ongoing. As far as unlicensed activity, that is a little trickier because it is out on the street in real time. That is something that we are partnering with the New York Police Department on to figure out what the best next steps are. I will say it is very important if you are getting complaints from constituents — we are all ears. There are a lot of different avenues that you can approach. Individuals, you know, despite what the Commissioner said, can always go to DOT.gov. But...

(03:30:17)

You and your staff — Carlos, my team — we always want to hear what the companies are, because individual names with individual facts on the ground will always help sharpen our investigations. Yeah, I will reach out and share the list with you based on the information I collected from my constituent complaints. Great. Thank you. Thank you.

(03:30:40)

Thank you, Councilmember Carbon, followed by Council Member Urdaneta. Thank you.

(03:30:46)

Hello. You guys are my favorite agency. I do not need to couch it — my colleague over there can tell everybody. Also, thank you. I will tell everybody now. I stand by it, whatever. Also glad to see that you had Amazon cough up close to ten million in unpaid tickets. I was happy to see that. I am not going to be surprised that I want to ask about the Delivery Protection Act and sort of what that will cost moving forward. I know I heard testimony that you feel good about your ability to enforce the many laws that we have already passed and the ones that are coming into effect. But we want to do more. I think we share the same ambition in being able to do more. We also know that there is just so much that we get in return in terms of raising revenue and putting money back in. So at the hearing on the Delivery Protection Act, you testified that you support the Bill. Do you feel ready, should it pass, to enforce the licensing process and requirements that would come along with that? Do you have, with the numbers that you have, enough to enforce that Bill? Or where do you need more?

(03:32:00)

We enthusiastically support the Bill. Just yesterday we were discussing before this hearing a Supreme Court case around a company that tried to force last-mile delivery workers into... excuse me... arbitration. This was in another state, but it just shows the scale of the...

(03:32:18)

Worker exploitation we see all over the United States. Your Bill would put a stop to that in New York City. With respect to the lines we would need to enforce it, I believe we estimated we would need 19 lines. That was not included in the executive budget. Okay. It still has not passed because we want it to pass soon. So it sounds like we need to find some more money. Yes. Okay, that...

(03:32:38)

Sounds good. I also want to ask — again, we share the goal of being as ambitious as possible. You are very good at what you do. I know that there may be limits on what you can say about potential legislation or legislation that has not even come before you yet. But what do you see as other potential areas of expanded regulation that you are currently concerned with? To give you a not-so-surprising example, would you support expanding what is already a successful fair workweek law? Would you have the resources to do that or do you need more?

Well, without commenting on any specific bills, of course, since we are talking generally — look, I think it is absolutely a problem, especially with the advent of algorithmic scheduling, where AI algorithms are deciding without any regard to the fact that workers have real lives and have families. When people need to be on a shift, it is not fair to tell a parent the morning of that they have to show up to work. We have nation-leading protections for retail and for fast food. What I love about the protections in New York City is that it does not matter what the algorithm spits out. At the end of the day, if you are a fast food worker you get two weeks notice. If you are a retail worker, you get 72 hours notice. I would be very interested in having conversations with you and with the rest of the administration about expanding those rights to other industries. There is no reason workers should have to toil at the mercy of an algorithm that takes no account of the full lives they lead. Thanks. So...

(03:34:14)

Yeah, you need more money — that is the takeaway. All right, thank you, Councilmember.

(03:34:20)

Urdaneta. Thank you, Chair. I just want to echo what everyone else has said — you are certainly a lean, mean fighting machine. I do have a question about community outreach and outreach to businesses and to workers. Are you expanding staffing? And given all the new laws and consumer laws, do you have enough capacity to educate consumers, workers and businesses on what their obligations are and what their rights are?

(03:35:11)

I appreciate the question. I will turn it over to our Deputy Commissioner for External Affairs.

(03:35:17)

Thank you, Commissioner. Every year we hit about 600 outreach events. I think this year we are aiming to hit about 762. We were doing that through our expansions toward the end of last year and our Community Affairs team, but also we are receiving an allocation of three additional positions under the new needs that we received from the administration. We have also improved our ability to connect with New Yorkers through social media, digital media and press. We want to follow the direction of our Commissioner in making sure that New York City workers, consumers and small businesses understand the role of this agency and how we can serve them, and we only want to make that grow over the years.

(03:36:06)

I have a question about security guard compensation. The new local law requires private sector security guard employers to meet government contract wage standards. What outreach is being conducted to ensure that employers are aware of the law?

(03:36:31)

I appreciate the question, Councilmember. We were very proud as an administration to support this Bill, to support the Council override. Not only is this going to be a critical milestone for security guards, but it is going to open the door to other potential efforts by the City to raise private sector minimum wages. The minimum wage portion of the law takes effect, I believe, January 1. Our plan is to partner closely with 32BJ to make sure — I know they are going to be very active in getting the word out. We want to work with them closely to get the word out. We are going to be enforcing the law aggressively to make sure that even if workers might not know, we will have partners out there who can make sure that violations are brought to our attention so we can hold those employers accountable.

(03:37:22)

And do you have a sense of how many security guard employers will fall under the law? Sorry, do you have an idea of how many security guard employers fall under the law?

(03:37:36)

I once knew that number. I do not have it right now. It has been a while, but we will get back to you if that is okay. I think the proxy... I am sure 32BJ... I think the proxy...

(03:37:52)

The union represented about 70,000 workers, last number I checked. But I think this is something that as we implement the law we will ensure that we have a full understanding of the universe of the industry. Okay. Thank you.

(03:38:04)

Okay, great. Thank you. I am going to pass it back to the Chair.

(03:38:07)

Thank you all. So, just so I am clear: Labor and Policy Standards is getting 29 positions and General Counsel is getting 20 positions. I believe it is 29 for Labor and Policy and 20 for General Counsel. Thank you.

(03:38:26)

20 for General Counsel. Do you want to go through the division breakdown? And what jobs are they? Are they lawyers, paralegals, investigators, researchers? Sure. So it is 20 for... I think lawyers only? No, no, no — lawyers and investigators in the first...

(03:38:46)

Fiscal year. It is lawyers and investigators in the first fiscal year. In outer fiscal years there will be additional clerical support staff. So how many lawyers, how many investigators?

(03:38:56)

The current plan is, of those 20, 17 lawyers at different levels of seniority — 17 lawyers, some supervisors. I assume that is the mix. And then three investigators. Yes. And you think...

(03:39:09)

That is an appropriate mix?

(03:39:13)

Yeah, I think based on... I think this really gives us a chance to thrive as we move forward.

(03:39:17)

What we are seeing — and this is not surprising — is we are taking on bigger firms like Extra Space, a publicly traded firm. These are serious companies with serious lawyers and we need to be sure that in settlement negotiations, if they do not go well, we can take them to court.

(03:39:31)

Right. For that we simply need to...

(03:39:33)

Lawyer up. We need to lawyer up. Okay.

(03:39:38)

Okay. And then you do not have a projection because you just want to see how the staffing goes? I am sorry, can you say that again?

(03:39:48)

You have 20 for this year, but you do not have projections for what you are going to do next year?

(03:39:52)

I think we do have a sense. I am a little hesitant because obviously as the year progresses there will be decisions made that may shift some staffing around. So I think we do have a general sense. I do not think that is necessarily ready to share right now because I do not want to...

(03:40:08)

Yeah, I appreciate that. Okay. And then the Office of Labor Policy and Standards — you said what, 29?

(03:40:15)

29. 11 lawyers, 10 investigators and eight data scientists. That includes the supervisory staff in each category.

(03:40:26)

Great. And you think both sections of the department are going to get you to a sufficient place to deal with any backlog and all these future issues that are coming forward? You know, we have 10,000 potential Uber and Lyft deactivations coming...

(03:40:45)

Down the pike. We have 2,000 new potential street vendor licenses, not to mention laundry workers, not to mention security guards, not to mention every other thing that we are going to do. And there will be, as Council Member Erica mentioned, last mile — there are things that might be coming forward. I want to be clear: do you think there will not be a backlog when consumers and workers are coming to your office? We are not going to tell them to wait six months. We are staffed out — that is our projection at this point, Chair. I will say that those numbers I just read off are for fiscal year 2027. There are additional infusions for fiscal year 2028 and further in fiscal year 2029.

(03:41:35)

But again, we are going to be continuously evaluating this. If the Delivery Protection Act passes — I hope it does — we are going to have additional needs. Lines are going to be monitored. The student loan marketplace may need additional positions there. So we are going to be monitoring this. We could see a big spike — an unexpected spike. We have already seen an increase in worker complaints in fiscal year 2026 that is going to make it harder to close the backlog. But again, we have accounted for that in this budget. We have to be monitoring our complaints as we will be, and we have to be monitoring our backlog as we are, and of course monitoring the new laws that are coming online.

Can you just keep us updated? I mean, obviously I am pushing to give you more money, so there you go. But I would just be concerned that we get past the budget and then we see in the summer and the fall that you have hired up and there is still a backlog — in other words, there is a backlog because you have hired up new people who are still in training. So I am just concerned: can we get ongoing updates on where staffing is, making sure that if there is a six-month backlog it has been reduced to three months? Certainly. The goal again is to see that backlog fall. It is a little bit like going uphill because the complaints are rising, so we need to hire faster than the complaints are rising and deal with the backlog. With respect to certain laws, the deactivation cases you mentioned — there is going to be a look-back period. So the thousands of workers who were deactivated over the last six or seven years are going to be able to have those deactivations revisited. We made the best projection we could based on the numbers we see now and that is going to change to some degree in a couple of months. We are happy to keep you updated.

(03:43:24)

That I would appreciate that. Yes, Chair. I just want to echo that we have other periods in the budgetary cycle like the plan where we can always come back and discuss more with the new needs. Thank you. And so regarding delivery services like Instacart, you know, you gave them a temporary exemption for minimum wage payments through July 2026. Are you prepared to ensure full compliance with that? And transportation delivery apps will be as well?

(03:43:58)

Yes, absolutely. So we are getting reports from Instacart. We are already monitoring their wage payments, their work time, trip time and on-call time. And just for the record, it is not a full exception, right? They are required to pay the full minimum pay rate for all trip time and will be required soon to pay for all on-call time as well.

(03:44:19)

Well, and what kind of staffing do you think that is going to require on your behalf? I mean, luckily...

(03:44:24)

In this area, you know, it is already part of laws that we are enforcing on the minimum pay rate. So we already have structures in place to analyze the reports that we get from apps, and so that fits in neatly with work that we are already doing to monitor Uber, to monitor DoorDash, and we are already doing that with Instacart too, because...

(03:44:47)

You do not expect a flood over the summer of new...

(03:44:51)

Complaints. You never know when you are going to get a flood. I mean, an app can change a certain procedure in a way that confuses workers, whether or not it is legal. But one of the benefits of the structure of these laws is that we are able to watch and get the data reporting from the apps on a monthly basis, so that we are not only relying on complaints from workers but also able to watch and identify issues through those reports. So, you know, with the new street vendor licenses, there are going to be some penalties associated with that, and I know mostly yes.

(03:45:26)

And who is going to be doing enforcement, and what role do you think you are going to play in coordination on that level of enforcement? And what role do you think you play in the new licensing scheme on the enforcement side?

(03:45:43)

Our real role is to stand side by side with the street vendors and help bring them out of the shadows and into the New York economy with licenses. So certainly I can see a role for us educating people, along with Council Members who I know are interested in this. But in terms of day-to-day enforcement, for example, the sanitation code, we are going to leave that to Health.

I am worried about people not knowing, right? So I am worried about your role in ensuring that the small businesses understand how to avoid enforcement issues. Not to speak against my district or some people in my community, but I can see someone not liking a new vendor on some street corner and calling every day, and I want to make sure those vendors do not get to a place where they could have enforcement issues.

Well, if someone does not have a license that would be our responsibility, but again our goal, the reason our administration reversed the last administration to endorse the bill, is we want people to get licenses. We want small businesses to thrive. So again, we have a statutory responsibility to make sure folks are licensed, but at the end of the day the orientation of our agency is squarely on the side of the street vendors who the Council decided, and we agree, it is long overdue that they get licenses.

(03:47:17)

And Chair, I would mention as well, I think a lot of the resources that you are talking about, the Division of Consumer Services is actually revamping their website to include a lot of education materials that has included feedback from individual agencies like the SBS, to ensure that vendors understand some of the rules of the road, including mapping that is out there as well as plain language descriptions of their restrictions on the street.

(03:47:44)

Yeah, you know, as I mentioned earlier, I will flag again that this kind of outreach will be critical to avoid these common enforcement issues. I would love to see the administration commit some of those resources to these organizations who are going to help prevent people from getting these fines and fees and being affected by...

(03:48:06)

Enforcement. Absolutely. And I am happy to go with you to your district, to some of the local vendors, to get the word...

(03:48:13)

Out. And in a moment we will schedule that. I am happy to do it. Chair, certainly heard on this issue regarding funding, so we will make sure to raise that with our colleagues at OMB in City...

(03:48:23)

Hall. Yeah, so I just want to go back to junk fees. What are you seeing now on junk fees based on the executive order? Where are you seeing violations? How are those moving forward? Are you...

(03:48:34)

Seeing a spike? Since we are paying more attention to it, I think... let me put it this way. I think in the past, you know, we looked at different categories: employment agencies, immigration services providers, et cetera, et cetera. Now...

(03:48:50)

We are sort of creating a new category in the way we are thinking about it: who are charging unlawful fees. So we did a warning blitz with employment agencies. We did a warning blitz with used car dealers. We did a warning blitz with immigration service providers. We did the warning blitz with hotels.

(03:49:06)

And I can tell you now, we also co-chair the joint task force. We just held a meeting yesterday on this with other agencies, and I do not want to get ahead of the Mayor or other agencies. I can tell you other agencies are doing a really thoughtful job of identifying junk fees that, frankly, we would not necessarily have visibility into. But because... I will not name any department, strike that, our sister agencies have deep visibility into and understanding of their authorities. I am very, very optimistic about the trajectory on this. We are working very hard both on enforcement and rulemaking, and I think Mike wants to add some more.

(03:49:41)

Yeah, just some additional color on that, Chair and Council Members. As the Commissioner alluded to, this has been sort...

(03:49:48)

Of not always labeled as a junk fee, but core to our work over the last several years. We have brought cases recently over the last 18 months against licensed employment agencies for charging illegal advance fees. What are those? Those are just junk fees by another name. Similarly, we have great laws passed by this Council, supplemented by our rules on financing disclosures and what can be charged by used car dealerships, which we call second-hand automobile dealers.

(03:50:22)

And we are constantly bringing cases where that is a core part of the investigation. We actually have a major trial ongoing right now at the Office of Administrative Trials against a major dealer, Victory Mitsubishi. As the Commissioner alluded to, the hotel junk fee rule: we are monitoring the complaints. While we are talking about consumer complaints, please give us complaints. We are filing our first summons under that rule imminently. So this is something that we are always looking at. We have always looked at this traditionally, and it has been very helpful to name this exact sort of concept and to really focus our work. Let me just underscore the executive order is very helpful in doing that, and also looking forward to the different types of junk fees and pricing violations that now exist. It really transcends just narrowly defined junk fees, but the ideas that we have been talking about regarding surveillance pricing and dynamic pricing, these are the new generation of how consumers are harmed on a day-to-day basis. And so we...

(03:51:24)

Have a hearing coming up in a couple of weeks. We have our ear to the ground on that. So we are looking for trends, and this commitment by the administration to this type of issue, junk pricing, these are things that we are going to dedicate resources to now in a way that is really going to result in dividends for New Yorkers.

(03:51:50)

Yeah, I appreciate that, and hopefully you have the resources you need to be doing that work. So it sounds like you have moved forward with not extending their contract to do student loan work in our City for general New Yorkers, for City residents. You are continuing the program for City employees. Then who is picking up that support to ensure City residents who have student loans... anyone on the desk, anyone who has got student loans, how are people going to be able to access the services? What kind of outreach are you doing in communities to make sure people are aware of this...

(03:52:26)

Issue? This is a very high priority for us. I think I have been having conversations with our folks every day, or almost every day, on this for weeks now, especially our financial empowerment folks. A number of points. First, our Financial Empowerment Centers are not only trained on student loans but also on credit card debt, auto debt and all manners of debt. One push we are really going to make this summer, so to speak, is pushing more New Yorkers into our Financial Empowerment Centers. We do have one-on-one personalized in-person services, and our financial counselors can take a holistic look at New Yorkers' financial health, not just student loans but credit card debt, medical debt, et cetera, to put people on a firmer path forward.

We are also working to make sure that there is no abrupt disruption to people's accounts. We want to make sure that people continue to be served into the summer and that we can then transition them into vital services. But the fact of the matter, and this is why I think Int 277 was so critical, is we are facing a huge cliff in New York City with the Trump administration's reckless and callous treatment of student loan borrowers. It is critical that we redouble our efforts to get the word out around the resources that the City has available. That is something our outreach team is working very hard on.

(03:53:53)

Such a critical issue. We work with partners in the State. I have talked to you in the past. We are planning to do... stay tuned on that, about making sure we are reaching those most likely to face default now. So we have had meetings with EDCAP at the State. I think in a very wise move they significantly expanded funding for EDCAP to expand those services. EDCAP to us is not a rival at all, it is a complement. I really think this requires an all-hands-on-deck response by the City and the State, because the federal government is not here to help. It is here to make people's lives worse.

(03:54:29)

I appreciate that. I know we have talked about this before and we would love to partner in doing those kinds of outreach events, whether they go to Financial Empowerment Centers or some of our offices. It is just about getting the word out, and I hope that we can start doing that in the next few weeks. Absolutely. I think I have had conversations already about that.

And the last thing I wanted to talk about is docket judgments, and I am wondering how many cases there are with docketed judgments for workers. What does that look like? Is that being successful? Are people getting their money back? Is the docketing power and authority working for the agency?

(03:55:09)

My table of contents was taken, so it is taking me a minute. Do you want to jump in on this? The docket power we very rarely need to use. We have a very, very high rate of collection in the Office of Labor Policy and Standards on our worker protection cases. This is in part because virtually all of our cases settle, and they settle with very strong terms to ensure that companies actually pay. We require companies to sign a confession of judgment in almost all of our settlements, and always when there is a payment plan, and so that ensures we are able to obtain the money for workers. So do you have any cases where...

(03:55:52)

You have had to docket judgments? We have, and have had some success in actually collecting them. I am hesitating only because some even come from before that law went into effect. I mean, I think this is an important tool. Thank you for, in your prior role, sort of leading the charge to get docketing authority. I think it has not come up all that often, but it is valuable when it has.

(03:56:24)

All right. Well, I want to thank you, and Chair, I am finished with my questions. Thank you.

(03:56:29)

Okay. And with that, I think we are done with this portion of this hearing. So thank you so much, Commissioner, and to everyone on your team. We are just going to take a couple of minutes to transition over. Thank you.

(03:56:43)

Thank you very much. Thanks to the Council. Okay, good...

(04:05:20)

Afternoon, everyone, and welcome to the third Fiscal Year 2027 Executive Budget hearing for the day, focusing on the New York City Economic Development Corporation. I am CM Linda Lee. I am pleased to be joined by our Speaker, Julie Menin, as well as Chair Maloney, Chair of the Committee on Economic Development. We have been joined today by our Deputy Speaker, CM Brewer, CM Thomas-Henry, and I think that is it for now.

So welcome to our Interim President Jeannie Pack and to your team. I just have to say this for the record: sister from another mister. As a fellow Korean, it is very nice. We do not see this often, where there are Korean American women especially who are in positions like this. So I am very happy to see you in this role. I just wanted to say that.

(04:06:09)

Thank you so much. Likewise.

(04:06:13)

Thank you all for joining us today to answer our questions. On May 12, 2026, the administration released the Executive Financial Plan for Fiscal Years 2026 through 2030, with a proposed Fiscal Year 2027 budget of $124.7 billion. The Economic Development Corporation's proposed Fiscal Year 2027 budget represents less than 0.1% of the administration's proposed Fiscal Year 2027 budget in the Executive Plan, although EDC manages a large portfolio of assets on behalf of the City which generate revenue not captured in the funding passed through the Department of Small Business Services. This is an increase of 979% from what was originally budgeted in the Fiscal Year 2027 Preliminary Plan. This increase results from several actions but is driven primarily by the addition of $20 million for the City-backed insurance program and the rollover of $7.1 million for the Cannabis Impact Fund.

As one of the primary drivers of economic growth in our City, now is a critical time to ensure that we are maximizing return from programs that generate tax revenue so that we are able to provide the many critical services that our agencies undertake, and that we are developing initiatives to help address the affordability crisis New Yorkers are facing. I commend the administration on the inclusion of the City-backed insurance program, as we have long heard from affordable housing developers and advocates about the barrier that rising insurance costs have created on developing more and maintaining existing affordable housing developments.

We are excited to hear more about the vision of this program and how the funding included in this plan will play into the Mayor's broader housing plan. Now I want to turn it over to Speaker Menin for her opening remarks.

(04:08:03)

Thank you so much, Shirley, and I want to thank Charlie and Chair Maloney for conducting this important hearing. Good morning to Interim President Pack, and I want to thank you and the rest of the staff for being here. This afternoon is a key player in fostering economic growth, developing workforces and improving the sustainability of our City. It holds a vital role in ensuring that these many benefits are spread equitably across all of our communities.

I do want to say at the outset that I have been speaking about this for several months and am concerned about the job loss that is happening in our City. The fact that we have lost about 27,000 jobs compared to the job growth that we have seen each and every year in the prior four years is something that has to be addressed, and it is something that we are deeply concerned about today.

I want to explore some of the key allocations that are included in the Executive Budget and Capital Commitment Plan. As you know, the administration has also included $70 million for the program to create a system of publicly funded grocery stores. I do want to be clear that the Council absolutely agrees that grocery prices are too expensive and we must lower the price of groceries. It is one of the many reasons why we have introduced Bills to ban dynamic pricing around grocery prices as well as surveillance pricing, so that is something that we are very committed to today.

We want to hear from the administration about how the impacts of this specific proposal would impact bodegas and other small grocery stores that are in close proximity to the planned new stores, so we want to understand that impact as well as the impact on workers at those businesses, so we can better understand and ensure that bodegas, grocery stores and workers at those stores are not adversely impacted.

In addition, I am looking forward to learning about how the addition of a hundred million dollars over the next three fiscal years for the City-backed insurance program will help to reduce property and liability insurance premiums, which is something that we have been very focused on in the Council on the insurance angle and our new insurance accountability office. So we want to understand the impact on affordable and rent stabilized housing, and we are looking forward to hearing your testimony in that regard.

So once again, I want to thank the chairs for their leadership and the team for being here, and we look forward to a very productive hearing. Let me pass it back to our Finance Chair.

Great. Thank you, and I will pass it to Chair Maloney.

(04:10:43)

Thank you. I am honored to chair the Council's Committee on Economic Development and to be joined by our Finance Chair Lee as well as Speaker Menin for this important conversation. We are going to be hearing today from the Interim President on the Fiscal Year 2027 Executive Budget, including the Executive Capital Commitment Plan, as we move towards budget adoption. It is important that growing innovation sectors, delivering sustainable communities and strengthening the City's future economy remain priorities. This committee looks forward to discussing how the Executive Budget is going to advance those goals and how the investments will translate into tangible benefits for New Yorkers.

The largest investment included in this plan is for the City-backed insurance program, increasing to $40 million in 2028 and 2029, totaling $100 million over three years. For too long, affordable housing developers and providers have been constricted by rising insurance costs, with insurance premiums having more than doubled since 2017. So this investment targets one of the highest operating costs for developers and comes at a critical time.

We look forward to hearing more details about the program and how it will be structured to drive premiums down. The Executive Capital Commitment Plan covers Fiscal Years 2026 to 2030 and includes $3.5 billion — that is a 16.8% decrease from the Fiscal Year 2027 Preliminary Capital Commitment Plan we discussed. That plan has a ten-year commitment and includes only a small increase from the preliminary plan, so this change reflects the stretching of funds that were originally allocated within the next five years out to the ten-year plan. We are interested in hearing why these timelines have changed and whether any critical projects that the funds support, like Hunts Point Produce Market or the Inwood Greenway, will be impacted by those changes.

Third, the plan includes $30 million allocated for City-backed grocery stores. Since our first hearing, two of the five sites have now been identified, and we would like a lot more detail on how these stores will operate, the criteria for site selection, the timeline for getting these up and running and how they will balance minimizing taxpayer subsidy while delivering on the promise of making essential household groceries more affordable.

(04:13:24)

I want to thank Interim President Jenny Pack for being here as well as Chief of Staff Jennifer Montalvo as well as the rest of the staff for coming here and testifying. I want to thank everyone who has been incredibly responsive to our many requests. We would not have

(04:13:41)

been able to analyze the City's budget at such a detailed level without that partnership, so I commend your leadership in this interim period. I also want to thank the finance staff — Spencer Kun, Hector German, Daniel Group, Memory Dev, Chima Bob — for their work preparing for this hearing, and the committee staff — Alex Pauline, William Hong and others — for their support, as well as my own staff that put in a lot of effort: Sophie Saldano and Calvary Cut, for all their hard work to prepare. I will now defer back to the Finance Chair.

Thank you. Before we begin the testimony, I just wanted to remind everyone that for this year's budget hearings we are doing all the public testimony on the same day, on Wednesday, June 10, beginning at 9:30, so please make sure to sign up for the public testimony portion, which again is Wednesday, June 10, beginning at 9:30. I will now turn it over to Brian Scarfo, our committee counsel, who I would also love to thank for all of his hard work sitting here and keeping me in check.

(04:15:08)

Thank you very much. Good afternoon, Speaker Menin, Chair Maloney and members of the Economic Development and Finance Committees. Well, we are back here again and I am still here. My name is Jeanne Pack and I continue to serve as Interim President of New York City Economic Development Corporation as well as the Chief Financial Officer. I am here with my Chief of Staff Jennifer Montalvo, and I would just like to again say that in the two months since I last testified before you at the preliminary budget hearing, we have continued advancing our work to make the City more affordable and livable. Together with the Mayor and Deputy Mayor Julie Su, we are reimagining economic development with a focus on economic growth that both expands the economic pie for all New Yorkers and ensures the pie includes and elevates working people who have previously and historically been left behind.

Before I jump into our projects, I want to zoom out quickly and give a sense of where our economy is. Despite continued national and international headwinds, New York City's economy remains resilient. Labor force participation is at an all-time high. Real estate and citywide vacancies continue to improve. Venture capital investment in our City reached its strongest quarter in five years. The City continues to attract more college graduates, with one in four New York City residents between the ages of 18 and 34.

Yet we know we are continuing to face real challenges as well as the increasing pressure of affordability. We know that far too many New Yorkers feel the City they love is becoming more and more unaffordable. For this reason, we take a forward-looking approach to economic growth and development. We will continue to use every tool in our toolbox to build a more economically just New York City.

Today I will use my time to share a handful of updates on work that has seen significant progress. These initiatives are advancing mayoral priorities on affordability and represent major wins for the City and working people.

On public groceries: Mayor Mamdani has been clear that the working people of this City should be able to afford the basic needs and services this City has to offer, and that includes healthy food and groceries. Today, as a result of rising costs of rent, gas, bills and food, more and more New Yorkers cannot afford everyday healthy groceries. Making sure working people can buy fresh, affordable groceries is a key part of the Mayor's affordability agenda.

We have been working closely with the administration on the public groceries initiative to increase access to fresh, healthy food at a price New Yorkers can afford. That work has continued and intensified and has led to two major announcements to date with concrete milestones toward realizing this vision.

I stood with the Mayor in East Harlem as he announced La Marqueta as the first site for groceries, as one of the City's six public markets operated by La Marqueta. It supports more than 20 small businesses and 120 workers, including community organizations. This future Manhattan site for La Marqueta will further benefit the East Harlem community by offering affordable food to working New Yorkers. The 9,000 square foot store will be constructed from the ground up with significant community outreach and input. In short, it reflects the diversity of the diverse cultures of El Barrio and is expected to open in 2029.

Just last Monday, I joined the Mayor again, this time in Hunts Point in the Bronx, to announce a second grocery store. This one will be at the Peninsula, the redeveloped site of the former Spofford Juvenile Detention Center. It is leading the transformation of the site into a campus of dignified living — a place where working New Yorkers can afford to live, work and play. The Peninsula development includes 740 units of 100% affordable housing, a child care center, 30,000 square feet for commercial and light industrial businesses providing good-paying jobs, and over 50,000 square feet for community, cultural and recreational open space. With this new grocery store, residents will now have access to healthy, affordable food right in their backyard. This 20,000 square foot store will be the first groceries site to open, expected by the end of 2027.

Along with the Peninsula, the Mayor also announced an online portal for private property owners to recommend sites for future grocery stores in Brooklyn, Queens and Staten Island. The portal will support early identification and screening of potential sites and inform next steps and timelines for the three other grocery store locations.

I am incredibly proud of the work on the groceries initiative. This is what public investment should look like — making sure that benefits and the prosperity of our City reach working people who need it most.

Beyond our long-term stewardship and advancement of the sites where these two stores will be located, our team has been working tirelessly to develop this initiative and ensure that the basic needs of working people and families are met.

On public restrooms: I shared that we had released a request for modular restrooms across the City to expand access to public bathrooms, one of the Mayor's first 100-day commitments. This $4 million program will make sure that more New Yorkers will have more access to public bathrooms. Bathrooms are basic public infrastructure and access to them should be easier. We anticipate an update on that soon.

On housing: we view housing production as essential economic infrastructure. Affordable housing enables workers and New Yorkers to live near jobs, to raise their families, build roots in the community. It supports economic mobility and underpins neighborhood vitality across the five boroughs.

But today New York City is facing an existential affordability and housing crisis. As the Mayor has said, New York cannot remain a City of opportunity if the people who make this City run are priced out of it. We are advancing affordable housing development across the City, and that includes going after the structural costs that are driving up the price of housing. Insurance is one of them. With the price of insurance tripling since 2017, we announced the first City-backed insurance program to help New Yorkers stay in their homes, give building owners the support they need to make repairs and make building affordable housing more affordable. The insurance program will reduce the cost of property and liability

(04:22:21)

insurance for affordable and rent stabilized housing. We are partnering with HTC to develop and execute the insurance program, which aims to issue new insurance policies for 20,000 units of housing next year and 100,000 homes by 2030. Additionally, the City expects a 5.27 times return measured in capital subsidy savings. Lower insurance costs help to increase property-level income, which supports larger property-level loans and reduces the subsidy capital required in new construction and preservation deals. This program uses the City's purchasing power to lower insurance premiums for affordable housing and rent stabilized apartments, helping our investments reach more New Yorkers. It is a key part of the City's housing plan.

On the World Cup: in just 13 days our City will welcome the world for the 2026 World Cup. As I am sure you have all seen, the Mayor has been making a number of announcements to activate our City during the 39-day tournament, ensuring working people, New Yorkers and tourists alike can experience all that the five boroughs have to offer. We will play a big role, from free fan fests, watch parties and fan zones at our public markets and on our biggest campuses — including the already announced Staten Island University Hospital Community Park and more locations to be announced very soon — to the "Dress the City" campaign that will show off host cities' soccer jerseys, inspiring New Yorkers to get into the game. We are working tirelessly to ensure the World Cup kicks goals for working people this summer.

I know some of you are very excited, and I hope you all get the chance to see the five wrapped ferries which we unveiled last week, each with borough-specific wrapping showcasing the energy, diversity and pride of our City. They will be on our harbor this summer as part of the World Cup festivities. The World Cup is a tremendous opportunity for us to promote New York City as a place to live, visit and conduct business. As I said, this is a rare moment to show a global audience of tourists, companies, investors and delegations that there is no better place to do business than New York City.

As I mentioned, these are just a couple of the most notable highlights across all of our work. We are proud of our partnership with the City Council to improve the lives of our neighbors, increase affordability, expand opportunity and ensure New York City remains a global hub of business, culture and innovation. I want to thank you for the opportunity to speak with you today and we welcome any questions you have. Thank you.

(04:25:01)

Really quickly, I want to recognize that we have been joined by CM Riley, CM Morano on Zoom, CM Gennaro and CM Epstein, and Speaker Menin. Go ahead with your question.

(04:25:14)

Thank you. Okay. Thank you very much for the testimony. I really want to start with something that I referred to in my opening statement, which is that I am deeply concerned about the job loss in New York City from the past year. In this testimony I did not hear anything about job creation at all. What is the plan to focus on job creation and job retention? It is not only about the City...

(04:25:46)

That question — we understand the headwinds that are happening nationally and globally and your city is affected as all the other major cities in the United States. But we do know that New York City is resilient, and from 9/11 to the financial crisis to coming out of COVID, it has proven to be an incredibly resilient city, primarily because this is New York City and we have the best talent in the world and the greatest infrastructure.

We are comforted by a few statistics that I will share with you. We have an economic group that puts out a monthly snapshot. It came out today, so hopefully you will be able to see it. But a couple of things: our labor participation is at an all-time high, our commercial leases have had the highest two consecutive quarters since 2019, investments are the highest since 2021, our unemployment rate is fairly low at 5.6%, although by borough it is higher at 7.3%, so that is something that we are committed to looking at and addressing. Tourism and transit ridership are all doing well.

And why is that? We have the top talent and top destination. We have over a million college students and recent college graduates, which are an incredible pool. New York City has actually increased jobs by 28,000 to 5,000 since 2026 year to date. So this is more than other comparable metros such as Miami and Boston, which have actually had job losses, while New York City has increased jobs. This is on par with Dallas, so we are not doing worse than Dallas. We are doing about the same as some other cities, but we are doing a lot better in terms of jobs compared to our comparable cities.

We believe in New York City as an innovation economy. We have a dedicated business development group that works closely with business generators and people who are interested in coming, as well as businesses that are thinking of growing here in New York City. We want to retain companies. As you said, we want to retain companies, so committing to 10,000 jobs in the World Trade Center and doubling their size — these are all great commitments and it is proof that New York City is a great place to...

(04:28:16)

Thrive. Okay. I just have a couple of responses on that, because you referred to 9/11 and after. Certainly after 9/11 I served for many years on the board of the Lower Manhattan Development Corporation. We launched specific programs to retain businesses, and that is why many businesses ended up staying in Lower Manhattan and moving to Lower Manhattan. My concern is that, particularly with what is happening around increased job displacement, if we do not put plans in place right now to retain companies here and to also attract new companies, I am very concerned about that.

I am concerned around media and entertainment, where you have job loss to other states. We are seeing in the financial sector that there are now more jobs in the financial sector in the state of Texas than there are in New York. That is truly shocking. We used to have triple the number not that long ago. So again, I am just urging us to start putting in place those plans to make sure that we are fully prepared to retain these businesses and to attract new businesses.

The last thing I will mention is that you talked about tourism. The tourism numbers are not great. We know that Broadway year to year is down, hotel occupancy year to year is down. So we see all the warning signs and it is incumbent upon us as government to put plans in place to deal with that.

(04:29:49)

Yes, we appreciate that. We appreciate your observations there and we are working hard every day. Again, I think we have a dedicated business development team. We also have an innovations and industry sector group that focuses on innovation. New York City, while it has its stable businesses such as finance and tech, is also an innovation economy. So we want to make sure that we are growing the next generation of companies and we are doing that, especially with green economy tech, life science, et cetera.

So we are committed to growing that. Also, I think what is really clear to us is that we want to make sure that these are good-paying jobs and that they are accessible to people who normally do not have access to these jobs. Part of that is through a lot of programs that we have, like the Founding Founder Fellowship. We also have a lot of industrial and related construction programs that ensure that small businesses and other people who have not been part of these large...

(04:30:48)

...construction jobs. Waterfront Pathways is another program that we have that makes sure our maritime work addresses a lot of new companies coming into the industry, because industries are always constantly changing. So we are focused on that.

I guess the other piece of this is the affordability piece. Part of economic growth is ensuring that the people that live and work here can afford New York City, that they stay here and that they are not going to leave New York City because it is too expensive. So we are very focused on that part of it.

(04:31:22)

And let me just be clear — we totally agree with that. We are all in on building more affordable housing. It is one of the reasons we announced our small lots program to build 35,000 new units of housing.

(04:31:34)

And that sort of gets to this issue. I know there are several topics that we all want to ask about. On the affordable groceries plan, I want to be clear: as I said in my testimony, we completely agree that grocery prices are extremely high and that we have to figure out what we can do about that. Which is why we are very focused on funding food pantries, very focused on funding a number of organizations that are currently doing a lot of work in the space in New York. As I mentioned, we are focused on banning surveillance pricing and dynamic pricing. So we are getting to the root causes across the City that are causing rising prices. We are focused on creating an insurance accountability office to lower insurance costs for small businesses, grocery stores and others that are again paying four to five times the national average on insurance.

So I guess one of the questions I have about the administration's plan is: how were the two sites selected, and how many competing businesses — grocery stores, bodegas — are in the surrounding areas of the two sites that have been selected?

(04:32:39)

Yeah. So we appreciate all that you are doing to help with food affordability. It is a crisis here in New York City. This is just one lever that we are using to reach the same goal, which is making food more affordable. The City grocery store is focused on fresh, healthy foods and everyday groceries being affordable. It is going to be a regular grocery store, but we are not going to discount everything. So we are focused on fresh, healthy foods and everyday groceries.

How we selected the sites: we prioritized public sites first and foremost. So we did an inventory of all the public sites. We also wanted to make sure that, by the City's measure, the area did not have enough grocery stores per capita — there is a specific measure for that. We also wanted to make sure that it was going to be able to be constructed and come online fairly quickly, not taking a decade. So we are committed to opening all five stores by the end of 2029, with the first one opening by the end of 2027.

The first site that we announced, which will be opened by 2029, is La Marqueta. That is a City site and if you have been up there, it has a public market there. It is like an eight-block site which has all different uses. It is being renovated and reimagined, and one part of it is an empty lot that was going to be a farmer's market. City dollars were going to go into that to convert it to a farmer's market, and through our discussions we realized that this would be a great place for a grocery store. So that is a ground-up construction, which is why it is not going to be open until 2029.

The Peninsula site, as you know, is the former site of a juvenile detention center. It is a development that the City has been working on for some time. It is going to have 740 units of housing, a lot of it family housing. It is in three phases and we are pretty much through phase one, about to launch phase two. Phase three, which is not going to happen for several years, was going to have a grocery store — it was required to have a grocery store. So there is a shortage of grocery stores up there and there are not really any grocery stores really close by. So we decided that we are going to accelerate that grocery store that was going to be constructed in phase three and bring it forward. It was also a space that was ready to be fitted out into a store — sort of poised as a perfect location and structure for a grocery store. So we selected that one as the second site that we announced, but it would be the first one to open by the end of 2027. How much are the groceries going to cost?

(04:35:31)

Well, the grocery — you mean...

(04:35:32)

In terms of the discount. Yeah. Okay, so how are we doing this: in the summer we are going to put out a request for a third-party operator — a City grocery operator — and through that structure they will be operating a grocery store like a normal grocery store. We are going to have a core basket of goods that will be discounted. What we are offering the operator is the City paying the tenant fit-out, so a substantial cost that the grocery operator would normally have to pay. They are not going to pay rent and they are not going to pay property tax. So we are going to ensure that that subsidy directly goes to the food affordability of those core baskets. Then we are going to work out all the details once the request for proposals comes out. You will see some of the details and then there will be ongoing negotiations with the City operator.

It might be a couple of questions: what are the basket of goods that will be covered, what is included in that? So we are still working that up, but the focus is fresh, healthy foods and everyday groceries — so milk, meat, chicken, eggs and produce, given that.

(04:36:41)

I understand the concept that they are not going to have to pay rent and they will have reduced costs. But given that they are not going to be able to volume purchase the way other grocery stores are able to, how will they — as a government-run store — be able to drive the costs down on the purchasing side? So these are going to be City...

(04:36:59)

These are going to be third-party operators that already have grocery stores if they run them. So whatever model they have to operate, they will still be operating through that model. It is not going to be like a separate market.

(04:37:11)

Understood. And then how many New Yorkers will they be able to reach? In other words, for the Hunts Point and La Marqueta sites, what is the estimated reach of each of their respective...

(04:37:26)

Stores. Sorry, can you say that again? Yes. For the Hunts Point and La Marqueta sites, what is the reach that is estimated — how many New Yorkers are going to be able to shop there and purchase a basket of goods? What is the actual reach?

Yeah, we are not going to limit it. It is going to be like a regular grocery store, so people can come and shop. It will be people from the neighborhood as well as people who are coming from other places. We want to increase the foot traffic because, as you said, we want the neighborhood to thrive through the New York City grocery store being located there. And what is the plan for the preexisting...

(04:38:09)

...bodegas that are in the area, small grocery stores that have been there for years? How is this going to support those businesses so they are not driven out of business?

(04:38:18)

Yeah. So as I mentioned, we did select neighborhoods that really had a shortage of groceries by City standards, because part of the goal is food affordability...

(04:38:33)

...as well as food accessibility. So before we announced the grocery store a few months ago, we did reach out to the Bodega Association and the National Supermarket Association to inform them of our initial plan. Once each site has been announced — La Marqueta and now Peninsula — we have met with the bodega owners in the area and we will continue to do so. The same thing is happening with Peninsula and we will continue to do that during the development of the grocery store initiative, when it opens and throughout the operation. So we really want to work with the bodega owners.

I would say again, this is a real grocery store, but the core basket of goods is going to be set and limited. It is not really overlapping with some of the stuff that the bodega owners offer. Some of the largest profit items we are not going to have discounted. So we are hoping that we can even direct traffic to bodega owners with more foot traffic, because there is not going to be as much of an overlap as people might think.

(04:39:49)

Okay. Other members have a bunch of questions on that, so I am going to move topics to City-backed insurance. I just want to better understand, because we are very interested in the issue of insurance and lowering insurance costs. This is incredibly important. As I mentioned in the opening statement, we are creating an insurance accountability office to try to drive down the price of insurance, whether it be for homeowners, renters or small businesses. So my understanding is that the insurance program that was announced will be run and managed by... Can you explain what the benefit is in having someone administer the contract but not managing the program? Yeah, thank you for...

(04:40:31)

...that question. This has been a program that we have been working on with HDC for actually a few years now, and so we are really excited that this is now happening and funded. The relationship is a sort of joint effort and we are working very closely with HDC because they have the housing stock and they are building housing. HDC is the financing arm for affordable housing and is involved because we have a lot of investment and transactional expertise through our Strategic Investments Group. So this is kind of what they do every day and it was a really good synergy. So we are actually going to be doing the transacting and executing of the insurance program and...

(04:41:21)

What methodology is being utilized to determine the appropriate funding levels for the program? So the $100 million has been allocated. It is going to be rolled out and scaled up starting at $20 million, then $40 million and $40 million in the subsequent years. We think that is going to provide about 20,000 units in the first year and over about 100,000 by 2030.

(04:41:48)

We are also hoping that the City is going to be like an investor and we are hoping it might attract other investors so we can scale that up as time goes on. So it is going to be an insurance provider, but that does not mean it is a closed investment. We are hoping other investments come in so we can scale it up. Okay?

(04:42:09)

I have two last questions and then I am going to pass it over to the next member.

(04:42:14)

So for the program, how was it determined that the program would be able to provide assistance for 20,000 homes by 2027 and 100,000 by 2030?

(04:42:26)

I can get back to you on the actual calculation, but the idea is that insurance costs have ballooned like 22 to 30% over the last few years. We analyzed it and it is largely due to overhead and profit. Also, the City has the lowest cost of capital, so all those things combined allow us to offer lower premiums. So we estimated that it can cover 20,000 units and then 100,000. What it will also do is provide savings of five to seven times for HPD, because it is going to be less costly to build affordable housing and you will need less City subsidy for...

(04:43:12)

...those.

(04:43:12)

Sites. Okay. And then lastly, the program is only funded through fiscal 2029. So what happens to homes that are covered under the insurance program after that time?

(04:43:25)

So this is like an investment, so it will continue on. Again, we are hoping that through this investment we will attract others and just scale up. But it is not like it is going to be depleted. It is serving there as like a... the principle is not being used. Okay. And in fact, we are hoping there is going to be some return. Okay. Thank you.

(04:43:51)

I will pass it over to Charlie. Great. Thank you, Speaker. Really quickly, just going into some of the savings — because I know that in the fiscal year 2027 executive plan it included savings of about... over the next four years. This is largely, I think, from the termination of a marketing contract in favor of doing the work in-house versus externally. A lot of the marketing contract, I believe, was focused on business attraction and development through programs such as REAP, which is the Relocation and Employment Assistance Program, and RACE, which is the Relocation Assistance Credit for Employees. These programs can help attract businesses and employees through relocation incentives and...

(04:44:35)

So I just wanted to know who was it contracted with, and if in-house, are you hiring additional staff to do that, and why did it determine that the marketing work could be done in-house versus externally?

(04:44:51)

Thanks for that question. I think, you know, we have a whole marketing team and a business development team, and so I think we thought that the expertise from the marketing contract that we had, we sort of understood what we needed to do and we can bring it in-house. We also have, like, a lot of... as everyone is, you know, relying more on social media, so there is a lot of activity already on LinkedIn especially, and other avenues to get the word out there. But in terms of those specific incentives, we have very targeted outreach through our business development team for companies that have shown interest, or companies that we have partnerships with, these generators that are generating interest in bringing businesses to New York City.

(04:45:37)

Okay, so I am assuming most of that is going to be towards staffing. Is any advertising included? I am saying most of it is probably going to staffing, I am assuming. Are there any ad buys? And also I am assuming multiple languages, hopefully, because we know...

(04:45:51)

Our small businesses in New York are very diverse in terms of the languages spoken, so a lot of it is going to be in-house. We do still have a marketing budget, and we do buy specific ads through LinkedIn, or paid LinkedIn posts I guess, to reach a larger audience. And I think specifically, I will have to get back to you about the multiple languages. But we appreciate that. I think that is a great idea.

(04:46:22)

No, only because, just from my former work in the nonprofit sector, language is very important and key, and I know that there is a lot of, you know, for example, even local media that a lot of folks pay attention to, to spread the word through their friends and family networks that way, to say, hey, there is this program out there. So I just...

(04:46:40)

Wanted to put that out there. Yeah, that is great. Thank you.

(04:46:44)

A May 2024 report on recovery patterns of growth and the changing economy showed that at the time New York State had over 183,000 small businesses, more than ever before, and showed substantial recovery from the drop seen during COVID. And over the last two years, economies have changed...

(04:47:04)

Drastically on the local, national and global levels. So do you track the number of small businesses located in the City? If not, is that something that the corporation is willing to track? And if yes, what is the current number of small businesses and what are the trends that you are seeing?

(04:47:20)

I will have to get back to you on whether we track those small businesses, and if we do not, we can look into tracking them. We do work very closely with... as well as we are very focused on small business, they are sort of the backbone of the economy here, and they provide good, well-paying jobs for people. What we do is we have programs to promote and support small businesses, but we also use our assets to tenant out specifically for small businesses. So, for example, Brooklyn Army Terminal — many of those are small business or manufacturing and industrial companies.

(04:48:02)

And we are very focused on ensuring that we provide them tenancy space. Great. And just my last question is around revenue. Do you conduct any analysis on the efficacy of incentive programs like GRACE and REAP on tax revenue for the City? We do track, I think, the usage. I have to get back to you exactly. But we do track, sort of, we look backwards and say, like, how many companies used REAP, where they put those companies, to see if people are using it and what they are using it for, and where it is successful or not. Yes, we have a strategy group that does all of that analysis.

(04:48:44)

Okay. And have you considered expanding the same marketing and business attraction for these programs? So we were involved in sort of advising City Hall on potential incentive programs, and so we will continue to play that role. We have not done it recently, but we continue to play that role.

(04:49:03)

Okay. And then do the businesses tend to be smaller or larger in size that benefit from REAP? I think...

(04:49:10)

It is smaller to medium, smaller too, but okay, I think it is on a case by case basis. Okay. The main City-funded subsidy, for example, for Amazon, the REAP program, would have cost the City up to 1.4...

(04:49:24)

Billion. And that is the projection. Yeah. Since REAP is an as-of-right program, the City would not have had the authority to limit or condition the use of this tax break by Amazon or any other large company. So does thinking about an open-ended tax break like that... is that why you are looking into that, or any of the other programs?

(04:49:45)

I think we provide the statistics and look at it. When we offer that up, it is not in our sort of decision-making power to decide on that, but we do analyze it and provide... you know, as you know, we have IDEA, which is a discretionary tax incentive program. So we really look at those very specifically and analyze those to see that it is making sense for the communities and the City. No, that is great. I love data. So anything you guys have to inform that would be wonderful. We would be happy to share, and I will get back to you on the size of the companies because I might have...

(04:50:19)

Not really sure. I think it varies. Okay, perfect. Chair Maloney, I am passing it over to you. Excellent.

(04:50:26)

Thank you so much. Thank you for your testimony and for the work that you have been carrying forward over the past several months. We spoke about some of the economic trends and the importance of investment in programs like GRACE and REAP that are helping to bring businesses and keep employers here in New York. How are you looking at market uncertainty and thinking about new programs in this economic environment to address some of the concerns that Speaker Menin raised about creating jobs here in New York?

(04:51:06)

Yeah, I think, you know, as I said, we have a group that looks at it and sees how effective they are, and again, who is using it, where they are going, et cetera, what types of industries. So we can provide that as a resource. We do not make the policy decisions on these as-of-right incentives. We focus on the discretionary benefits that we provide, which are significant and meaningful. So with the savings that are directed just at the marketing, the actual programs are not expected to be decreased. Correct. Great. And just...

(04:51:52)

Having been an alum, I cannot overstate how important it is to have those intentional strategic investments in programs that are trying to create jobs here in New York. I appreciate hearing about everything you have been doing over the past couple of months as the interim president. But I wanted to at least touch on the fact that we do not have a permanent president. Last year, the former president Kimble announced he was going to be departing, and we are now almost six months in, and I am wondering... I know I have full confidence in the abilities of the acting leadership, but as we are talking about long-term economic growth, how are you able to plan for those multi-year conversations without the formal authority of being deemed the president?

(04:52:48)

Yes, thank you. We appreciate that question. Yes, it has been a few months now, and it has really been a privilege of a lifetime. I did not expect to serve in this role, and it has been an experience I have had... it has been a real pleasure. It has been a great experience for me to work with all the teams. As you know, it is an incredibly talented group of individuals that have such enormous specialties and such a diverse number of... I have also really been able to work closely with Deputy Mayor Julie Su and her team, as well as the Mayor. So we really have not stopped. We have completely moved forward, not only in our everyday work of managing 224 assets and 60 million square feet and all of the programs that we have in terms of innovation industries and workforce development.

Our whole capital team... I mean, I could go on. But we have also done a tremendous amount for the Mayor's new initiatives, such as the modular bathrooms and groceries, which is an incredible initiative that has really pulled together everything great about estate transactions, strategy and asset management. So it is... we have not stopped, we continue to move forward, and ultimately the president is the Mayor's decision, and so we look forward to his decision.

(04:54:26)

Have you received a timeline? I have not, no. No. It is all business. We just do business and...

(04:54:34)

How regularly...

(04:54:36)

Are you receiving direction from Deputy Mayor Su or from the administration? We work closely with Deputy Mayor Su. We are constantly working with her multiple times a week. We have meetings and ongoing conversations, and the Mayor has also been very involved in the grocery store initiatives. So we work with him directly as well. Do you have any sense...

(04:54:54)

Of the cause for delays?

(04:54:59)

And is it impacting day-to-...

(04:55:00)

Day morale at all? I think, again, it is an incredibly special group of people that are really committed to the work that they are doing. Everyone is staying focused and really trying to move forward. In fact, everyone is so passionate about what they are working on that they just continue moving forward at the speed that they have normally done.

(04:55:26)

While we are all eager to see this position filled... but you also seem so... I want to move on to what was already mentioned, the City-backed insurance on the expense side. This is the biggest shift from the preliminary budget to now, and I am encouraged by it. I have actually got it printed out, the block-by-block plan. And housing affordability is a top priority of the Council as well. So I appreciate the...

(04:55:54)

Effort to address one of the highest costs, which is insurance. When we are talking about the criteria for which homes are going to receive insurance through the City-backed insurance program, what is the selection criteria?

(04:56:09)

Yeah, thank you. That is an important question. We thought about this a lot. If you look at the pool of affordable homes, whether there are new affordable homes or existing stock, we did not want to have the best-performing, so to speak, and we did not want to be the insurer of last resort. We want to sort of take the middle block, so let us call it the middle 60%. That is where we are... that is the stock that we will be insuring.

(04:56:37)

And so we will be looking at the portfolio and sort of their pipeline for bringing affordable housing, and they will direct us in terms of what... but that is the criteria. It is sort of the middle group. And so how will limiting participation to that kind of subset of owners impact the...

(04:56:58)

Overall risk pool? So that is why we are picking that sort of middle selection, because we are not taking on any extra risk. What we are doing is we are offering this lower cost because we are not having the overhead and the profit and the cost of capital that the insurance companies have. So it is not about taking on more risk. It is just about doing it more efficiently because the City does not have the same situation as these private...

(04:57:30)

Insurers. The report, and you mentioned this before, how we hope that this is going to reverse cost trends and then ultimately subsidize the insurance program. I am just wondering if you could speak a little bit more to how...

(04:57:44)

This will reverse cost trends. So we are hoping that this sort of sets a standard, and becomes... what we are really hoping is that it is going to be able to leverage other investors to be part of this insurance solution. Also, we expect that it is going to help reduce the subsidy needed to bring on housing, which will allow us to bring more housing. So, for example, about 500 to 700 million in savings brings about an additional 2,000 units of affordable housing.

(04:58:23)

So in the case that there were something like a Hurricane Sandy, which caused billions of dollars in damage, would the City be liable for claims relating to those types of damages? Or if it is, you know, any damage related to the distress of the building, just to understand...

(04:58:40)

The operations. Yeah, thank you for that. That is an important question. We are going to look to the reinsurance market. This is typically what insurance providers do — they reinsure sort of certain... yeah, like certain risks. And so we are going to tap into the reinsurance market for those catastrophic sorts of... we have not made the decision exactly, but that is an option for us for that very reason.

(04:59:06)

The question comes at trying to secure the City from potentially, as you said, having higher risk for, you know, a budget deficit down the line if an event were to happen in the...

(04:59:16)

City. Exactly, and that is where the reinsurance market I think can be really effective. So we are going to be looking into that.

(04:59:25)

That is part of the whole plan for the insurance program. My last question on the insurance is: the executive plan includes 20 million in FY27 and then 40 million following. Does that include the costs for staffing and operating the programs?

(04:59:46)

Yes, we are going to have a third-party operator, so there will be a minimal cost for that operator. So that will be included in the hundred million.

(04:59:58)

And would that operator be responsible for conducting inspections and determining risk at each of the sites? Yeah, there is going to...

(05:00:05)

Be, you know, there is going to be an actuary who is going to help us sort of assess the risk. So that has been procured and then we will have to work out the actual agreement. But it is not like the City is going to be assessing the risks for these housing units — it is going to be experts. Great, thank you. I had one...

(05:00:27)

Question on the five-year versus the ten-year capital plan that I alluded to in my opening remarks, and then I am going to turn to CM Thomas Henry. The five-year capital plan decreased over 700 million in the executive budget, while the ten-year plan remained unchanged, and I am wondering if you can speak to why a substantial amount of funding was extended out, and any impacts on the sequencing of some of the projects that are really important.

(05:00:56)

Yes, thank you. So this is a normal, regular exercise that OMB has each agency do for the capital ten-year capital plan, and they need to smooth out or stretch out the capital costs across each of the years. So the projects that were selected either did not need to be in the timeline that they were, so they were able to stretch it out, or it is a very fluid capital plan. So if we need it, we can always pull that money forward. It is not set in stone, so it is very flexible. But in terms of just putting out the plan, they needed to smooth it out, and they do this with all the agencies.

(05:01:39)

So there is no impact on the timeline of completion of those major projects?

(05:01:44)

Like it is going to delay it in any way?

(05:01:45)

Great. And also no projects are being prioritized over others, or no shifts on that front? No. If it is needed, then...

(05:01:54)

We can sort of move it as it needs to be moved.

(05:01:56)

Thank you. And now turning to CM Thomas Henry. Thank you, Chair.

(05:02:03)

So I have been doing a series of business tours, and I had the privilege of visiting a few cannabis businesses. So in the executive budget, it rolls over from fiscal year 2026 to fiscal year 2027 for the cannabis impact fund, because no loans were distributed this fiscal year as the program transitioned. While I appreciate the expansion of eligibility, what specific challenges caused the delay, and what assurances can you provide that these funds will reach businesses expeditiously in FY27?

(05:02:38)

Yes, thank you. So we structured the cannabis loan fund into two phases. The first phase was about... there were about 200 or so businesses that had these licenses. They were some sort of justice-involved individuals who were the owners, and we provided 14 loans. About 80 applied. Phase two is sort of expanding like this, and the cap on that loan was about a hundred thousand. We have expanded phase two to 540 businesses that are eligible, and so far we have had about 60 apply. Again, it is a rolling sort of application. The size of those loans is 500,000, so there are higher loan amounts. We are expecting that we are going to be providing loans starting in the fall of this year and through about 2028, so it is going to be sort of an ongoing program. We are estimating and projecting about 26 loans will be given out on that.

(05:03:43)

And how is tracking where the dollars go geographically? Like, can you provide data on whether communities that were most impacted by cannabis enforcement, including communities of color, specifically in Queens, Brooklyn and the Bronx, are receiving a proportional share of those? We can provide that information for...

(05:04:01)

Your office. Yeah. The RISE...

(05:04:05)

Program. So the executive budget includes additional funding for the RISE program, which helps businesses adapt innovative, climate-resilient technology. How is it ensuring that small businesses in climate-vulnerable neighborhoods like Corona and East Elmhurst in my district are aware of and able to access these resources, particularly those that lack the capacity to navigate complex application processes? And kind of piggybacking on what the Council member said...

(05:04:33)

Language barrier often times. Yes. So this is a federally funded program and the information of how the program is implemented — I will have to get back to you on that because I am not exactly sure how it is implemented.

(05:04:50)

Okay, for small businesses — but I know it is for small businesses to promote climate resilience. I am chair, if it is okay. I do want to act before my time expires. CM Epstein had to leave but had a question. Do you mind if I ask his question before I go?

(05:05:06)

Sure, go ahead. Innovation East?

(05:05:09)

Innovation East was approved in 2025. Is DOT looking at this project at all? Okay, I am sorry. I said — Innovation East? Yes. Was approved in 2025. Again, this is CM Epstein's question. They have... is DOT looking at that project, and if you are looking at it, is it the same plan or have any alterations been made to the plan?

(05:05:38)

There are no alterations to the plan, but you are still looking at it? We are moving forward with it? Yes, thank you. Okay.

(05:05:54)

CM Brewer.

(05:05:55)

Thank you very much. On the insurance, I mean...

(05:05:57)

Maybe Russ and... and now John Crotty. They have the MILF program. Why are we not just using that, which is supposed to be for affordable housing? I think we believe that having it be City-backed creates efficiencies that the private sector cannot create, cannot benefit from, which is the overhead and the profit margin as well as the cost of capital. I think Milford did have a program but it was not successful. So we came in and came up with the solution with City capital.

(05:06:33)

Okay. I would like to hear more about that City tax levy. Sorry, not at all. I want to hear more about that from John.

But the other question I have is just in terms of AI. I know you heard about it from the Speaker. I am supportive generally, but I know that the person who is doing the most is David Greenfield, who has a large nonprofit working with people who are trying to get food, and he trains every single Friday. He has a massive training for his employees on AI, mandated. So my question is, what are we doing as a City to try to do something similar so that people are part of a solution and not left behind?

Yeah, I think this is something that we are keeping a close look at. We do have some programs, probably not on the scale that would be incredibly impactful, but we do have some library programs that are educating people and getting to communities through the libraries. We have programs that are helping some small businesses learn about AI and how it impacts their businesses. So we are doing some of that, but it is something that we need to keep a close watch on. It is dynamic. So you do not have any training money to do what David Greenfield is doing for Met Council?

(05:07:47)

We do not have that right now.

(05:07:48)

Okay. In terms of the specific John Street lots, what are you doing about that?

(05:07:57)

Yes. So we would be a close partner with South Street Seaport and we are always looking to help them with any opportunities or issues that they have, so we will continue to work with them. They need a lot. Yeah, we will be talking to them about it. We have not worked with them on that particular issue, but we would have a very good relationship with them and we constantly help them with the opportunities there.

(05:08:21)

Okay. And then the same thing with Pier 15 — why do we need Pier 19? What is going on with the piers and the South Street Seaport? I will have to get back to you on Pier 19. Okay, we do not like Pier 19 and want to keep Pier 15 and Pier 16, because that helps the South Street Seaport Museum. That is the historic area. It is not meant to be something else.

(05:08:41)

I understand. I am not going to give up on the South Street Seaport. It would not be there if I had not fought for it and I will continue.

(05:08:48)

The Bloomingdale Library — that is your project? Yes. But we would like it to be on City-owned land. Why cannot it be 100% affordable?

(05:09:00)

So if it is 100% affordable, it would be in the pipeline, which we would like to get it away from. So part of the strategy to bring housing online faster is using the mixed income model, so we can cross-subsidize. I am familiar with the implications. And as you know, there are only certain areas where this kind of works, and this is one of those areas, and it is important for us to bring housing stock online fast. As you know, there is a real housing shortage. So the decision was made that this was going to be the approach. All right, next — it is not going to... there will be other issues that come up, so it may not happen as fast as you think. And then at some point, get back to me about my beach. Yes, there was a study that was done in 2015 and we are continuing to look at it. The study came back that we were not ready for it, but we will continue to look at it. I want to be able to go to the water, you know that. Okay. Thank you. I can go on...

(05:10:03)

...and on, but I will stop. Okay. I just had a really quick question on behalf of CM Paladino, who was watching online, just in terms of the grocery stores. I will ask them all at once. I think you actually answered some of these, but for the record I just wanted to note her questions. She was asking about the prices and what they are going to be, which I know you said were certain percentages. Then, are you going to be carrying name brands? If not, what can we expect to see on the shelves? Are people going to have the amount of options that we have in our grocery stores now? I think you sort of answered that question, but if you could again just for the record.

(05:10:49)

Yeah, a lot of that is going to be worked out when we have the third party grocery operator, but basically how we envision it is that it is going to be like a regular grocery store with a core basket being discounted and mostly focused on fresh foods, healthy foods and everyday groceries. It is not going to overlap entirely — there are going to be items in bodegas that are not going to be there, and store items that are not going to be in those, but they can still get them elsewhere in the local supermarkets.

(05:11:19)

Say that again. So in other words, there is going to be some overlap in items, but a lot of them — because they are mostly focused on fresh items and healthy foods — a lot of it is... in other words, the local stores and bodegas are still going to be carrying things that the supermarket will not.

(05:11:35)

Yes. So there would be things that it would just not be offering — groceries that are big and that bodegas do well, like water, tickets, certain products, alcohol, things like that. But we will only be discounting a core basket, and as we understand it, the highly profitable items for bodegas are not going to be discounted.

(05:12:00)

Okay, perfect.

(05:12:00)

I used to buy live chickens at that location. I do not want to tell you what happened to them after I purchased them, but at that location. Thank you very much. And then just really quickly...

(05:12:12)

How will you be keeping prices down if they are name brand? I am assuming it is because of the tax breaks and incentives that are going to go back into lowering the cost, but if you could clarify that.

(05:12:26)

Yes. So again, the tenant putting out the grocery store — we are going to have them pay for that. They are not going to pay for rent or for property taxes. And because it is City-controlled, we are going to ensure that that subsidy, so to speak for lack of a better word, is going to go directly into the discounted basket.

(05:12:45)

Okay, great. And her last question was just — and I think the Speaker actually asked a...

(05:12:50)

...very similar question — about whether you are taking into consideration the mom and pop stores around the neighborhoods and partnering with them. Yes. So we have had extensive outreach once a site has been announced and we can continue to do so. It does not stop once we open the grocery store. We will still have engagement throughout the operations. It is going to be an ongoing relationship.

(05:13:11)

Okay, perfect. And would that... did you want to ask more questions before we...? I just want to talk about life sciences. I am really impressed with your program that works with young people who are getting into the business — great program. I know West Strategy runs it. So my question is, is there a cut to life sciences in terms of what you are doing? How do you see that as a growing industry and bringing — hopefully — people who are from CUNY or other backgrounds who would not necessarily be getting in? How are you looking at that?

(05:13:42)

Yeah. So I think you are referring to the life science internship program, which is a very... we are going into our tenth year. So we are super excited about that and we have it this summer. We continue to have life science programs as well, both in terms of capital that we have invested, but also workforce development, including the life science internship program. We also have benefits that we have allocated specifically for life science companies, and our team is open for business for life science companies to come in.

(05:14:15)

So was there a cut to the budget for life sciences or is it maintained the same? There...

(05:14:20)

...has not been a cut as such. We had a life science expansion fund that was part of our Chief Savings Officer savings for fiscal year 2026, but we still have $500,000 that was specific. Again, as you know, it does not get a lot of City tax levy. So for us to find something was really hard. But we are re-strategizing about that fund anyway because it had been an investment fund and we only gave out two loans and so we are trying to rethink that. We still have $500,000. We thought about that cut — not cutting the internship programs. We also have SPARC coming, which is a huge life science campus as you know, and we are going to be putting on a program for East 73rd this summer, so I hope you will look forward to that. Then phase two of SPARC, which will have a lot of commercial life science space after East 73rd. Okay.

(05:15:18)

And then just quickly, how do you work with CUNY or anybody else? We are all saying CUNY should be the bedrock to help get the Speaker's workforce, et cetera. So how do you work — obviously other agencies work with them — but how does your agency work with CUNY?

(05:15:37)

Yeah, we have a lot of partnerships with CUNY, including the life science internship program because that is a feeder. There are a lot of other similar programs like that where we access CUNY students. But for example, SPARC — we are working very, very closely with CUNY because that is going to be their campus. So our team meets with them like every single week to make sure that that campus is meeting their needs. So that is the main program that you work with CUNY. Yeah, we have all the programs, but that is the largest one right now. All right, thank you.

(05:16:07)

Okay, great. Sorry, just for the record, we were joined earlier by CM Banks and CM Justin Sanchez. I am passing it back to you, Chair Maloney. Thank...

(05:16:17)

...you. I want to turn back to the questions about grocery stores that were alluded to earlier by a few of my colleagues and reiterate how important addressing food insecurity in our City is, especially with SNAP cuts. Through this budget process we have seen so many organizations asking for funding to fill in that gap. I wanted to go back to the site selection, particularly for La Marqueta, where it sounds like the two criteria are: one, whether or not it is a public site that you already have access to, and two, if it is a food desert. Are those the two primary criteria for deciding the locations?

(05:16:59)

One other part of it is that it can be built and online before 2029, so it is sort of development-ready. La Marqueta, I believe, has multiple full service supermarkets that are within one mile from the location. The definition of a food desert is 500 people living more than one mile away from a supermarket. So I just wanted to speak to whether there could have been a higher-need area to prioritize as the first market. Why are we choosing that location?

(05:17:37)

We balanced a bunch of things. From the measure of enough grocery stores for a neighborhood, it did rank quite low. So for the per capita that lives up there, it is a very dense neighborhood. It did qualify. And the construction timeline for that site will be 2029. Yes. I want to...

(05:18:08)

...also talk about some of the alternative programs to address the issue of food security. So there is FRESH, which provides tax and zoning incentives for private supermarkets. There is Groceries to Go, which gives a 50% discount for fresh produce. Of course there is the traditional food pantry. Have we looked, as a City government, at these alternative options and also how far $30 million would go through these other avenues?

(05:18:43)

Yes. So these are all complementary programs. They do serve different purposes. I can go through the FRESH program if you want, because that is one. But the idea of the grocery stores is that it is City-controlled, so the subsidy that we are providing — through the tenant not paying rent and no property tax — by the third party operator is going to go directly, because we control it, to the affordability of the core basket. We also want to create pleasant, dignified places to shop and good paying jobs for the workers there.

(05:19:19)

So all that combined, it is one sort of effort to create food affordability, access and accessibility throughout the City. It sounds like it is not the only solution — all the other ones that you have mentioned are also working together to sort of meet those goals, having different priorities and levers. And of the $30 million for La Marqueta build-out, that is just the construction, not the actual operation. Is that right?

(05:19:50)

Correct. But again, the operation is going to be done by the third party operators. So we are giving the subsidy for that ground-up construction to the operator to pass on the subsidy...

(05:20:03)

...for the core basket.

(05:20:08)

Most models, if not all...

(05:20:09)

...models for public grocery stores in the United States operate at a deficit. So there is of course the capital expenditure to get the grocery store up and running, but then what is the projection of the ongoing costs? Are we expecting these will turn a profit? Will the rent and tax abatements allow it to continue without needing further capital assistance? If you could just speak to the economics once the grocery store is up and running.

(05:20:37)

Yeah, again, these are being worked out this summer, but the goal is for this to be self-sustaining operations with the subsidies that I spoke about. We are going to look at exactly how the subsidies are going to be structured. The core basket is the key thing that we really care about. One of the priorities we care about is that there are meaningful savings — not only meaningful savings for these core baskets, but that they are stable. Because as you know, the...

(05:21:14)

...price of food fluctuates. So we want people to be able to budget. They are going to know when they go to the grocery store how much the eggs are, how much the milk is, how much the bread is, so they can budget each week and manage their finances that way.

(05:21:28)

And it sounds like the stores will be open to all New Yorkers? Yes. So what...

(05:21:32)

...is to prevent a higher income shopper from clearing out all the subsidized groceries?

(05:21:40)

Everyone is welcome to shop there.

(05:21:44)

And will... I suppose, is there a pro forma about how these grocery stores will remain profitable or revenue neutral?

(05:21:53)

Not required — again, we are still working that out. When we put out the operator RFP, you will see some of...

(05:22:03)

...that information. Will it include a benchmark for these grocery stores? Yeah. I mean, the key to that is that we are requiring them to ensure that the food is affordable for the core basket, as well as that they have good paying jobs and it is a good experience. Will it be a requirement that they are self-sustaining?

(05:22:30)

We are going to still work out exactly how the subsidy is going to work, because we have to ensure that these are sort of long-term viable and that the subsidy is meaningful for New Yorkers.

(05:22:41)

And one of the other things I want to look at is just the history of other public grocery stores in the United States. Have you all looked at those examples? What are we doing differently here to make this pilot more successful?

(05:22:58)

I do not know all the models, but I know the team has looked at them. I think one of the key things is that we are looking at a core basket — we are not offering everything. Although it is going to be a regular grocery store, we are having a third party operator who has experience in running grocery stores to manage all the things that are important to run a grocery store, including inventory, purchasing, et cetera. So those are the things that we made sure we were incorporating so that they would be successful. The examples I saw show a cost of... for 250 stores globally through the Defense Commissary Agency, it was per year in federal appropriations for zero revenue. Another one in St. Paul had zero competition nearby but was still a $4,400,000 federal subsidy.

(05:23:56)

With respect, I guess what I am getting at is the operations of this, particularly if we are putting forward a really large capital investment. We want it to be a sustainable solution. Yes, that is the commissary model.

(05:24:11)

So we did look at that model. We are not basing our groceries on the commissary model. Again, everything in that store is discounted. So this is a smaller subset of groceries. It will be a core basket on the 30 million for the 9,000 square foot...

(05:24:31)

Build out roughly four times the cost of standard New York City retail construction. Can you speak a bit more about why we expect it to be so expensive?

(05:24:43)

So this is a ground-up construction on an empty lot under the railway there, and this is part of an entire reimagining of what, eight blocks. So the team looked at it very closely and the budget did allocate that amount for City capital. So this is a more complex site than others.

(05:25:07)

Correct. For a pilot, did we look at taking on a less complex site that would be, you know...

(05:25:16)

So many sites — it is hard to even explain how many sites we looked at. Again, the criteria was multi-point criteria, which was all the things we talked about: making sure it was in an area the City measured as not having enough food accessibility, that it was dense, that it had transportation, and that it could be brought online by 2029. A lot of the City sites and developments are not going to be available by 2029. So that was really important because we want to get these up and running.

(05:25:48)

Did you look at leasing

(05:25:51)

existing grocery stores? So we have a private site portal that is open right now for Brooklyn, Queens and Staten Island. We encourage private owners to fill out the form to submit their property, and it can be a former grocery store, of course. We are open to it, but again, each store is going to have its own look and feel, so we want to make sure it is uniform across the five stores. We will still have some input.

(05:26:27)

And on that — the original plan was 70 million for all five boroughs, with 30 million going to La Marqueta. How are we going to get to five stores with that

(05:26:40)

budget allocation? So the Peninsula, for example, is a tenant fit-out, so it is not a ground-up construction. We anticipate that with this private site portal we will also have sites that are sort of ready to go and already built out in terms of the base infrastructure.

(05:27:04)

Those are all my questions on grocery stores. Back to... sorry, can I just have some follow-up? So when you say third-party vendors are going to be bidding on the service, which type of groups are you talking about? Like, who would be...

(05:27:21)

viable? Current grocery store operators. Current grocery store operators. Okay.

(05:27:25)

So, like, Food Bazaar or whoever it is could also bid on those to operate. Okay.

(05:27:35)

Because I do have a couple of friends that are in that sort of industry, and they were saying that the build-out cost compared to what they would pay is more. Obviously there are different reasons for that, but that is why they were wondering how this is going to sort of compete with some of their stores that are in the communities. I do not know if they are necessarily right next to La Marqueta or some of the other ones, but I think there were some concerns that they had expressed about that in terms of how this would impact the local grocery store community. So I just wanted to reiterate that point — I think there is that sort of concern out there, especially when you look at the cost. I just wanted to uplift that point. Understood.

(05:28:26)

Yeah, thank you. Okay, sorry. Before we go into more questions, I think CM Shanel Thomas-Henry has questions.

(05:28:35)

Henry's questions, right? Yes.

(05:28:36)

Okay, thank you, Chair. New York City Ferry — the Mayor recently announced that the ferry would be increasing weekend trip frequency, opening additional summer routes and offering reservable seats. Will anything be changing during the World Cup or over the summer? No. Okay. And does the reserved seat option come with an additional cost to the passenger?

(05:29:04)

That is the Rocket, but that has always been more than the regular.

(05:29:09)

Very pass... okay, that is a specific service. I would add to that that it is increased service, but also we are going to be using larger vessels, so we want to make sure that we are really accommodating the greater excitement over the summer. Okay. And is there any funding for increased frequency or new routes? I am just going to plug

(05:29:29)

Willets Point, for instance. So Willets Point — we are studying Willets Point as a ferry stop for our Ferry Forward vision plan report, and we made that commitment to the Borough President as well as some other community members. So we will get back to you on the outcome of that.

(05:29:54)

Will any service be available during this increased frequency since there is a Fan Fest in that vicinity? There is nowhere to

(05:30:02)

land or dock. So we can only offer service where we already have a landing. We cannot just increase service to places where we do not already have a landing. Got it. Do you have any

(05:30:12)

idea of the cost to actually build a

(05:30:16)

landing there? I think it is site by site, and so that is what we are going to study. Got it.

(05:30:23)

How were the Fan Fest activities and locations

(05:30:28)

determined? So we worked closely with the World Cup organizers and City Hall through the World Cup office to determine those. I think it was about maximum benefit. Cost was also a consideration, but we are

(05:30:41)

also having some activities on our own sites, and those are the public markets as well as our largest campuses. So we will be having watch parties and Fan Fests and cultural and community programs.

Housing — so we know housing is a priority across the board. We had a wonderful tour of Willets Point today.

(05:31:01)

On 20 acres we are able to plan out for 2,500 units of affordable housing, the school, the soccer stadium, the lighting. There are an additional 40 acres on that site. Yes. What do you think

(05:31:13)

it would take to get the City to take a closer look at that immediately for future development? Yeah, thank you for that. We are really excited about everything that is going on at Willets Point related to the housing — 2,400 units, the soccer stadium, the school, the public realm, et cetera. Phase three has not been budgeted for, as you know, or contemplated. There are a lot of private owners on that site, so we would have to figure that out, but we are happy to open that discussion with you. It is sort of a long-term, as you know...

(05:31:47)

Phase one, phase two — two decades. So

(05:31:50)

we are basically... we will not take that

(05:31:53)

long. Yeah, we are happy — I mean, it is a phenomenal project, phenomenal development. We are happy to have more continued conversations. For phase three, I just have one more question on public markets.

(05:32:06)

La Marqueta, for example — what is the process to look at two additional public markets in other districts? Just so you understand,

(05:32:16)

these markets have existed for a very long time and we have taken over the management of them.

(05:32:21)

We did not create these markets on our own. Okay. But I think, you know, again, we are happy to have any conversations if you are interested in exploring that option for your district. Definitely am. Thank you.

(05:32:38)

Right. And of course, CM Maloney, I had one more question on retail

(05:32:46)

markets. There are three existing retail markets that you operate. Is

(05:32:50)

that right? Retail markets, public markets — we actually operate six, but we directly manage

(05:32:57)

three. And those operate at a loss right now, I believe, in fiscal year 2025. Correct.

(05:33:04)

So that included no direct subsidy to the food in those markets and was still operating at a loss? Yes. So

(05:33:12)

can you speak to the differences in design between those retail markets and the public grocery stores, and how we will minimize the operating subsidies in these new

(05:33:24)

grocery stores? Yeah, these are very different. They are both food-related, but these are very different. They are about small businesses — diverse businesses, culturally relevant businesses for that neighborhood — and sort of bringing these foods and these vendors there. As you know, it is a kind of community place for people in the neighborhood to go. A lot of the tenants that we have in those assets are not market rate. We want to support these small businesses. We want to support these communities. That is what the public markets are. Groceries is not about supporting small businesses — it is about running a grocery store and bringing food affordability. It is a very different

(05:34:05)

model. And can you speak to the affordability of the products in the existing retail markets, if there is any subsidy, and how those are going to compare to the prices in the New York City grocery

(05:34:15)

stores? So how we operate the public markets is that we give discounted rent to the tenants — the people who have their food markets in the public markets — and that is how we support the small businesses and what they are doing. We do not monitor their pricing. We just provide discounted tenant rates for them.

(05:34:41)

So it sounds like those are more about creating jobs for small businesses and less about food security.

(05:34:47)

Exactly. Well, it is also about bringing those small businesses — the culturally relevant ones from the neighborhood — and La Marqueta has a whole spillover of stalls there. So it is important for the neighborhood and it is like a nice gathering area.

(05:35:03)

Thank you. So switching gears — I want to talk about the World Cup since my colleague brought it up, and acknowledge a lot of the great work that has been done since our prior hearing. I was on one of the ferries with the rap boroughs and loved that experience, and the cultural map and a lot of the efforts to get small businesses included in tourist activities while they are here.

I did want to circle back on some of the questions we had about the contract with the host committee. My understanding from our prior hearings is this is on a reimbursement basis and I can see how those funds are being spent. At the time we did not have a lot of details, so I am wondering if you could give us a little bit more of a breakdown on how the 20 million is distributed and how it is being spent by the host committee, and then the additional 15 million that had not been planned. Yes. So the 20 million

(05:36:04)

has already been spent, and that was for a lot of the planning on transportation and logistics for the cultural side and to plan for all the activity that is happening right now. The 15 million is being spent now and the scope of services there is really for these Fan Fests and these villages, as well as for marketing — like dressing the City. You will see so much going on, dressing the City for the World Cup, and also for community and cultural programming across the five boroughs.

(05:36:45)

I also want to commend the administration for making it more affordable to go to the Cup — the work to reduce the cost of entry and also including bus service at a lower cost. Part of that was securing a thousand tickets at $50. The news outlets say that this did not come at any cost to taxpayers and was released directly from the host committee, so I just wanted to get your comment on the record on that.

(05:37:15)

Yes, that is right, and that is not part of the 15 million that is coming through EDC.

(05:37:21)

And on the ferries — we see there is an additional 38 million across fiscal years 2029 to 2031 to support reconstruction of the 34th Street ferry landing. Is that considered critical to improving safety for passengers and operators? Is that correct? Yes. The

(05:37:40)

34th Street landing has always been a popular landing and it has been very crowded in terms of safety and accommodation. A recent ferry optimization has increased — the way we have optimized how the boats go from station to station has increased the need for greater capacity at that site. So that is what it will be

(05:38:06)

addressing. Do you know the scope of the work and the timeline for the reconstruction?

(05:38:15)

Not yet. We will get back to

(05:38:16)

you. And will the work be conducted during low ridership months to reduce disruption?

(05:38:24)

We are going to stage it so that it causes the least disruption, but we will get back to you on the specifics on that.

(05:38:31)

Sure. And a follow-up we can cover then is: will riders be able to continue utilizing the stop during construction? Yes, we are

(05:38:39)

not going to close the stop.

(05:38:41)

Okay, great. And will there be any impact on ferry ridership or revenue levels

(05:38:46)

during construction? We hope not, because we are going to try to stage it accordingly. We do not want to impact ridership — ridership is incredibly important for us. But we are also hoping that with the completion of the

(05:38:58)

construction, that will increase ridership because there will be more people able to queue there.

(05:39:03)

Thank you. And on the cost side, do you have any information you can share on ridership trends? I know ridership is up, I believe, but also the per-passenger subsidy that we expect for this

(05:39:14)

year. Yeah. So ridership was at an all-time high. We have had a little bit of a hit because of the terrible cold winter that we had — I do not know if you recall, we had to stop service a couple of days because of ice. But ridership is still very high. It is a really beloved, very popular way for people to get from place to place and we want to continue to be that way.

The Rocket has become more and more popular as well. So we are really excited about how the ferry has done. The per-passenger subsidy is about $8.03, and it is lower than any other ferry passenger subsidy across the country, as well as the Long Island Rail Road or Metro-North. So we are really proud of that. It is down 30% since the start of the ferry. We have worked really hard to make sure that the per-passenger subsidy has gone down and we are running the ferry in a financially efficient way.

Do we expect the shifting cost of fuel to have an impact on that per-passenger subsidy or an increase in cost this coming summer in particular?

(05:40:32)

Yeah, we do have a fuel hedging strategy, so some of that we have hedged and mitigated, but I will have to get back to you on exactly the impact.

(05:40:46)

One of the questions I have is, I believe in fiscal year 2025 there was an operating deficit of roughly 15 million. Is that correct? An operating deficit of

(05:40:58)

the ferry? So the ferry technically runs at a deficit and it is subsidized by additional other revenue. Some of our rental revenue that we get from some of the assets that we manage directly goes to subsidize the ferry. I do not know if that is what you are referring to. So there is not a deficit because we subsidize prior to tapping into... you are referring to that, but again, this subsidy is there as a stable source of revenue. It is part of our maritime assets and our 42nd Street assets that subsidize the ferry — the revenue that we get from those rental properties goes to subsidize the ferry.

(05:41:57)

So the deficit is basically the subsidy, but we do not have an additional deficit over that. Okay. Is there an effort to look at increasing New York City Ferry revenues to help decrease that subsidy?

(05:42:10)

We are always looking to increase the financial efficiency of the ferry. Increased ridership and other ways like Wi-Fi sponsorship, et cetera — those are other ways for us to increase ferry revenue. Ultimately, all transit is subsidized and so we are realistic in understanding that it is such a beloved form of transit for New Yorkers that it will require a subsidy.

Earlier this year I know there were efforts to acquire a corporate sponsor. Did you receive any submissions or proposals from private entities to be a corporate sponsor and sort of help with that

(05:42:57)

revenue? Yeah. So we are always looking for that. We did receive some submissions that did not have a maximum benefit for what they were offering, and so we decided not to go with any of those submissions.

(05:43:17)

And have you received revenue from various sponsors in the past and if so, how much? We have received some sponsorship

(05:43:24)

inside the ferries, et cetera, and it is about $300,000. In fiscal year 2025 it was about $300,000.

(05:43:30)

And is that continuing? Yes,

(05:43:36)

yes.

(05:43:37)

My last question is around AI and tech. In January 2025 there was the Artificial Intelligence Advantage report that recognized New York City as the applied AI capital of the world, with 40,000 AI-ready workers and active investors in over 2,000 startups. Do you have an updated figure on how we are performing in terms of readiness?

(05:44:09)

We will have to get back to you on that. I do not have that right now. Okay,

(05:44:13)

great. And as a follow-up, I would love to hear what steps we took to accomplish some of the priorities that were outlined in that report around fostering new business creation and partnerships to build this ecosystem, developing a diverse AI-ready workforce to power the future economy, and positioning New York as a global leader for applied AI. So I would love to follow up on the key steps taken to achieve the priorities outlined in your report, any programming to train workforces on the development of AI-ready skills, and any City funds being deployed to bolster the AI workforce or help develop related

(05:44:59)

businesses. So we will get back to you on that. Thank

(05:45:01)

you. Thank you. Back to the...

(05:45:04)

Chair: Thank you, and a hearing would not be complete without CM Restler. So I am going to toss it to him and then I just have a couple last questions after. You are good to go.

(05:45:16)

Thank you, Chair, for making me laugh and for doing such a great job leading these hearings. It is great to join you and Tara Maloney. Thank you to the team for being here as well. I will say one nice thing first... what? I do not do that at every hearing. I am very grateful to Jennifer Son and some of her colleagues for joining us in DUMBO recently to try to help us better manage tourism in the neighborhood, and DOT's willingness to be a creative partner and go outside of what might be its traditional roles to try and help address needs and issues in our community is appreciated. Some other City agencies that were asked to help declined. So we appreciate you stepping up and working with us, and I really want to thank you for that.

(05:46:05)

We love Jennifer Son as well. She is great and she has really done... I have been really appreciative.

(05:46:11)

The other thing I will say, just to put a marker down: I am deeply concerned about jobs in New York City. As I look across my district on the waterfront in Brooklyn, downtown Brooklyn, the office market is just incredibly weak and we need to be developing new economic development strategies to revitalize downtown Brooklyn and DUMBO, where we have buildings that are 80% vacant right now. So we are working on a white paper ourselves with some expert help, but really want to make this a priority opportunity in the months to come, where we try to ensure that our communities are really dynamic 24/7 live-work communities. They are just filling out the live part right now.

On to my topic of choice, maybe my favorite issue to raise with my friends at DOT: Stop the Chop. I know you are surprised. We have a mayor who has committed his support for stopping the chop, and we would love to start to see the elimination of non-essential helicopter travel from the City's helipads. Last year, the Ryder Cup was in Long Island, I think, and we had helicopters going... excuse me, I do not follow golf. But I did experience it because there were helicopters leaving every five minutes from the City's helipads, going very low over our community and making it impossible for people to have a conversation outside on the street, on their stoop, in their backyard. Are we expecting similar amounts of extremely disruptive helicopter travel for the World Cup?

(05:47:54)

So the World Cup is eight games here. We have two heliports in Midtown and then the Downtown Skyport. The Midtown one has special permits, so it can only be open for certain hours. The Downtown one, we have worked very closely with community members to reduce those hours, and so I am just...

(05:48:18)

...aware of the changes that have been made, and they have really not helped in my community, where we continue to get an enormous...

(05:48:24)

...amount of incoming, where people struggle in Brooklyn Bridge Park, they struggle just to be in their own property because of the extreme noise that is created by helicopters. So yes, the Downtown Skyport is a public heliport. So we cannot simply not allow people to land and take off. But we can regulate the type of travel that is happening from the heliport. You do not need to allow folks to go to the Hamptons or go on helicopter rides. You do not need to allow tourism trips from there. I certainly have no problem with people taking a helicopter if they need to for health reasons, or if there is some sort of public benefit like news helicopters or NYPD helicopters. But the idea that we pollute our environment — it is the equivalent of 40 cars idling on the street, one helicopter above ground — and then create such extreme noise that people cannot have conversations, so that the top one tenth of one percent can get to the Hamptons faster... I find that deeply offensive. So I strongly support the banning of all non-essential helicopter travel from the heliports that you all control. I am trying to understand: can we do anything to limit the helicopter activity for the World Cup, and are there other ways of limiting these types of really egregious and disruptive helicopter activity...

(05:49:49)

...from your helipads? This is not entirely your purview, but I would say that just looking ahead, we hear your...

(05:49:56)

...concerns. Just looking ahead, we are looking at eVTOLs. Hopefully the eVTOLs... and I do not know if anyone came to our demonstration, but they are very, very quiet. I have not flown in one, but I saw them on the East Side not too long ago with some of my friends. You know, Watcher and Powers and others were out there.

(05:50:20)

What? So were you out there? No, no, she could not make it. The Chair missed it. But I am glad to hear that they are quieter and they are better for the environment. If that all works, God bless. I do not have any objection. But what I do have an objection to is the status quo and our insistence on maintaining it and allowing these incredibly disruptive helicopters to pollute and disrupt our communities every day. I think it is really bad policy and I think we are favoring the extreme elite at the expense of everybody else, and I think we should stop it. I think we should discontinue this helicopter activity immediately, and once the eVTOLs are ready, bring them in and let the rich people travel around that way. Understood? Thank you.

(05:51:03)

Thank you. Really quickly, a couple of follow-ups. Earlier, you mentioned the grocery store site submission form is open for applications. So how are you planning on incentivizing private owners to possibly use their sites, or if they have properties or if they have land, how would you incentivize them to apply?

(05:51:24)

So we are getting the word out there, so please help us get the word out there. We are doing a big marketing campaign, so we have had quite a lot of... you can see how many people have gone on and looked at it. It just opened, so we are still gathering information. But that is how we are getting the word out, just by marketing and also direct emails, because we know a lot of these property owners and brokers, to ensure that the word is getting out there.

Perfect, and just my last...

(05:51:59)

...question, because I would be remiss coming from the nonprofit sector without bringing up the capital projects that run through from the nonprofit perspective. Because I think we got awarded City funds in — I say "we" because I still feel like I am part of the nonprofit community — got awarded funding in 2018, and they literally, I think, just got there like a month ago, right? And so when I think about the fact that these organizations need the space and the renovation and the funding to provide services to the community, not for a for-profit benefit or reason, plus the costs... if we are talking about savings and costs, the fact that all that time has passed, the costs keep going up but the funding has not. What ends up happening is the scope of work has to continually decrease, and it is just a drain on the nonprofit organizations where they have to take out high-interest loans, so the total cost of the projects ends up costing the City more.

So I am just wondering from your perspective, if there are ways... I get that there are regulations and processes that need to happen and checks and balances. But back when I was still at my organization, DOT was great in the sense that the staffers we were working with felt really bad for us, because a lot of it was not on us. We were submitting all the paperwork. It is just that the process itself is so cumbersome a lot of times. So I am just wondering from your perspective if there are ways that we can look at perhaps not forgoing regulation but also streamlining some of it, so that it does not take as long for these groups to get their funding. I just wanted to get your thoughts on that.

(05:53:51)

That is through our funding agreements, which is a fantastic group and they work really closely, as you said, with the nonprofits and applicants. I think nonprofits really want to go through us because we take that very tailored approach and we try to move things along very quickly. There are very strict rules with these grants. It is on a reimbursement basis. There is so much paperwork as you can imagine that has to go through, and I will be candid: there is a lot of process. But yes, we recognize that it can be a hardship for nonprofits. DOT has a lot of capital projects that we do on behalf of our assets as well as parks and libraries, and so we are not in a dissimilar situation. We really work hard to build a very close relationship so we can move these as fast as we possibly can. But as you can imagine, it is a process with limited staff on their side. We will continue to look at that and try to make sure that we understand the burden on our nonprofits. And if there is any sort...

(05:54:59)

...of task force or group internally that can look at this periodically, I think that would be great. Because I just cannot tell you how badly I feel, because these organizations are just trying to do good work on the ground and then they get stuck with all this paperwork and cannot do things. I ended up having to be a professional fundraiser and event planner because I had so many... and it is like, okay, we just did a capital campaign and then we are doing another one, and the community is like, "Didn't we just submit? Can we just give you guys donations for the capital campaign?" And I am like, yeah, but there are all these extra costs. So I would love to have that feedback.

(05:55:41)

We would be happy to work on that. Okay, perfect. And I think Damon... does anyone have any other questions?

(05:55:50)

Yeah, yeah, the resources that you have... more. Okay.

(05:55:57)

Well, if you think of any, we can always submit after and then ask...

(05:55:59)

...for follow-up. So...

(05:56:00)

And I think with that we are done. What are we on, day four of hearings? So I can gavel out. But thank you so much. Thank you.