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Adams Unveils a Rosy Election-Year Budget, Citing Lower Migrant Costs

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Adams Unveils a Rosy Election-Year Budget, Citing Lower Migrant Costs

When Mayor Eric Adams unveiled the final budget of his first (and possibly last) term in office on Thursday, there was no sign of proposed cuts to libraries in the $114.5 billion document, as there had been in years past.

There were no warnings that the surge of undocumented migrants to New York City would prompt budget cuts. There were no new big-ticket initiatives, as one might expect in an election year, with the mayor facing a battalion of well-funded challengers and a federal corruption trial that is set to begin just weeks before the Democratic primary in June.

Instead, the mayor offered a more optimistic budget blueprint, one filled with increasing revenues buoyed by surging business taxes and lower spending for a migrant influx that has slowed in recent months.

“I think it’s really underrated how well of a fiscal manager I have been for the city,” Mr. Adams said on Thursday. “We turned the city around,” he added.

During his budget address, Mr. Adams said his administration had “set the table for success” by managing expenses and spending strategically.

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The mayor’s budget projects spending some $2 billion less for asylum seeker services than originally projected through the 2026 fiscal year, an apparent byproduct of the outgoing Biden administration’s border restrictions and the city’s own efforts to pressure migrants to leave the shelter system.

The city says it has seen 28 straight weeks of declines in its census of asylum seekers.

The reduced spending projections on migrants also seem to acknowledge that the administration had been overstating its projected costs, as the city’s independent budget watchdog contended this month.

“Perhaps the biggest gimmick here is that $2.4 billion of the $2.7 billion that the mayor is claiming in savings is merely correcting for his past overbudgeting of asylum seeker costs, which the Independent Budget Office has highlighted,” Brad Lander, the New York City comptroller, said in a statement. Mr. Lander is running for mayor.

But the city also projects spending $550 million more this fiscal year on homeless shelter services unrelated to asylum seekers, and another $325 million on rental assistance, as the city’s conventional homeless population surges.

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On Thursday, the mayor attributed the rising homeless population to people migrating to New York City’s shelters from elsewhere in the United States.

Mr. Adams said there was “a substantial number of people” from outside New York coming to the city but that he wasn’t sure why.

The city projects budget gaps of $4.2 billion in the 2027 fiscal year and $5.4 billion in the 2028 fiscal year. The city is planning to put no additional money into reserves, even as the nonpartisan Citizens Budget Commission argues that the city is understating those upcoming budget gaps.

“The city chose not to take this opportunity to add to its reserves but should do so if revenues continue to exceed projections or spending is lower than expected,” Thomas DiNapoli, the New York State comptroller, said in a statement. “With the potential for significant policy changes at the federal level in the coming year that could affect city finances, this should be imperative.”

This proposed budget is Mr. Adams’s fourth, and the last before he mounts what appears to be an uphill bid to retain the mayoralty. Mr. Adams is facing trial on five federal corruption counts in April. His legal defense fund is in the red.

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The budget funds several relatively modest initiatives that the mayor announced in his State of the City address this month, including increasing homeless shelter capacity and building up to 100 beds with temporary, wraparound services for mentally ill patients who are transitioning out of hospital care and have no homes to go to.

The mayor’s budget proposal is negotiated with the City Council, and by June 30, it must pass a budget for the fiscal year beginning July 1.

“The investments in this plan simply do not meet the moment or match the scale of the needs of the city,” said Justin Brannan, the chair of the City Council’s Finance Committee. “New Yorkers are struggling, especially working families. They need the city to help them, help with the outrageous cost of child care and early childhood education, help by investing in an affordable CUNY, help them unwind in a safe, clean park and we’re not seeing any of that in this plan.”

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U.S. Drops Corruption Case Against New York’s Former Lieutenant Governor

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U.S. Drops Corruption Case Against New York’s Former Lieutenant Governor

Federal prosecutors in Manhattan told a judge on Friday that they would drop a bribery case against Brian A. Benjamin, New York’s former lieutenant governor, following the death of a key witness.

The decision lifts a cloud that has followed Mr. Benjamin, a Democrat, since April 2022 when the government first accused him of funneling state money to a real estate developer in exchange for campaign contributions. The charges, announced in a splashy news conference, forced Mr. Benjamin to resign and all but ended his political career.

The Supreme Court declined to dismiss the case in December, and it had appeared as if Mr. Benjamin might finally face trial.

But on Friday, prosecutors wrote to the judge overseeing the case, J. Paul Oetken, that they no longer saw a path to proving their allegations after the death of the developer, Gerald Migdol. Mr. Migdol had pleaded guilty to related charges and was cooperating with the government before he died in February.

“Based on a review of the evidence in the case, and in light of the death of cooperating witness and co-defendant Gerald Migdol,” the prosecutors wrote, “the government has determined that it can no longer prove, beyond a reasonable doubt, the charges in the indictment.”

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Mr. Benjamin had maintained his innocence, and in a statement, he thanked prosecutors for dismissing the case after what he called a “painful journey.” He said he had represented both his State Senate district and the state “with honor and integrity.”

In their own statement, Mr. Benjamin’s lawyers called the government’s move a “vindication.” They said it was “a timely reminder of the Rev. Dr. Martin Luther King Jr.’s famous words: ‘The arc of the moral universe is long, but it bends toward justice.’”

The lawyers — Barry H Berke, Dani R. James and Darren LaVerne of Gibson Dunn — had met privately with prosecutors from the U.S. attorney’s office for the Southern District of New York on Monday, according to Mr. Berke and Ms. James. They asked the officials to drop the case, and to do so before the current administration left office.

A spokesman for the Southern District declined to speak about the case.

Mr. Benjamin, 48, had been considered a rising star when Gov. Kathy Hochul picked him from the State Senate to become her lieutenant governor in August 2021. The selection made him her No. 2, and gave Mr. Benjamin a platform to advance his own political ambitions.

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The federal indictment changed all that. Prosecutors charged that Mr. Benjamin had used his State Senate office to secure a $50,000 grant for a Harlem nonprofit run by Mr. Migdol. In exchange, Mr. Migdol helped arrange thousands of dollars in illegal contributions to Mr. Benjamin’s campaigns, prosecutors said.

Mr. Benjamin has suggested in recent years that he might be interested in re-entering public life if his legal case was cleared. But it was not immediately clear if he had plans to do so.

Jonah E. Bromwich and Jeffery C. Mays contributed reporting.

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Overtures to Trump Put Mayor Adams on a Political Tightrope

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Overtures to Trump Put Mayor Adams on a Political Tightrope

When Mayor Eric Adams descended into Palm Beach Thursday night to meet with President-elect Donald J. Trump, he said he just wanted to advance New York City’s interests.

But the context was impossible to ignore: Mr. Adams, facing a federal corruption trial in April and the possibility of prison time, was going to visit the one person in the United States who was capable of pardoning him and who had indicated a potential interest in doing so.

The taxpayer-funded journey to Florida came with substantial political intrigue. For Mr. Trump, a Republican, the meeting could give him leverage in New York City, a place that is typically hostile to him and his party. For the mayor, a Democrat, the visit carried more peril.

Mr. Adams’s poll numbers are in the tank. He is facing several credible primary challengers. And his overtures to Mr. Trump risk damaging whatever hopes the mayor still has of winning a second term in City Hall this year.

“The politics are clearly unhelpful,” said Howard Wolfson, a political strategist for Michael R. Bloomberg, the former mayor. “But the politics are not driving the trip. The politics are clearly subsidiary to the desire to stay out of jail.”

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In effect, Mr. Adams is stymied by an apparent conflict of interest that voters have no easy to way to disentangle.

In September, Mr. Adams was indicted on five federal charges of corruption, including bribery, wire fraud and solicitation of contributions from foreign nationals. He pleaded not guilty and has consistently argued, without evidence, that he is the victim of a Biden administration conspiracy to punish him for criticizing the outgoing president’s immigration policies.

In recent weeks, a federal grand jury has heard additional evidence against him, which could signal new charges are coming.

He is scheduled to go on trial in April, just weeks before the Democratic primary for mayor. If a jury finds Mr. Adams guilty, he faces prison time. In 2021, the City Council overwhelmingly passed a law that bars anyone with a felony conviction for public corruption from holding office. The law is being challenged in court.

This fall, Mr. Trump, who was convicted of 34 felonies in May, indicated he felt a kinship with Mr. Adams: “We were persecuted, Eric,” Mr. Trump said at the Alfred E. Smith Memorial Foundation Dinner.

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Starting on Monday, after he is sworn in, Mr. Trump will have the power to pardon the mayor. Mr. Adams has said he may even attend the inaugural festivities in Washington, though his team had not confirmed any plans to travel.

New York City and its 8.3 million residents also have a lot at stake. The federal government sends billions of dollars to New York City every year for education, housing, child care and hospitals. More than 400,000 undocumented immigrants call the city home. As the mayor of America’s largest metropolis, Mr. Adams has a natural interest in developing a working relationship with the man poised to govern the nation.

In a statement Friday evening, Mr. Adams said he and the president-elect had discussed issues of importance to New Yorkers, including manufacturing jobs in the Bronx and the cease-fire agreement between Israel and Hamas.

“To be clear, we did not discuss my legal case, and those who suggest the mayor of the largest city in the nation shouldn’t meet with the incoming president to discuss our city’s priorities because of inaccurate speculation or because we’re from different parties clearly care more about politics than people,” Mr. Adams said.

The political problem for the mayor is that voters have no way of knowing if he is in Palm Beach to advocate for the city or for himself, said Basil Smikle, a professor at Columbia University’s School of Professional Studies and a Democratic political strategist.

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No city officials traveled with Mr. Adams. Voters, Mr. Smikle continued, might reasonably ask: “What did he promise to Donald Trump to get pardoned? Did he sell the city out politically or policy wise?”

There was little political risk for Mr. Trump in the meeting. Following an election in which he made some of his biggest gains among Black and Latino voters, a prominent Black ally like Mr. Adams could help bolster the president-elect’s support in communities where he still remains broadly unpopular.

There could, however, be some risk in giving Mr. Adams a pardon. The mayor’s political fortunes seem troubled regardless of whether Mr. Trump intervenes, and his popularity in New York City may not be strong enough for Mr. Trump to benefit from helping him.

Some of Mr. Trump’s Republican supporters are upset by the nature of the corruption charges against Mr. Adams, and as the president-elect prepares to grant pardons to an untold number of his supporters who participated in the Capitol riot on Jan. 6, 2021, giving one to Mr. Adams may be a bridge too far.

A spokesman for Mr. Trump did not immediately respond to a request for comment. But advisers to the president-elect have previously said they see Mr. Adams’s situation as reinforcing Mr. Trump’s own narrative that he was a victim of the so-called deep state.

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Mr. Trump has also never stopped being fixated on his hometown. And he has not always made conventional political choices.

Some New York City voters are unlikely to look kindly upon a trip to visit Mr. Trump in Florida that was only added to the mayor’s public schedule after The New York Times reported that it was happening. The mayor’s opponents quickly cast it as an obvious act of obeisance that could be damaging to Mr. Adams’s political brand.

When he was elected, Mr. Adams frequently referred to his own “swagger,” a characteristic that he said would help propel New York out of the pandemic’s doldrums. With his taste for nightlife, he sought to send the message that his town was back because he was in charge.

A short flight to Florida could undermine that.

No New Yorker wants to see their mayor kiss the ring,” Mr. Smikle said. “We’re not that kind of city. We’re the greatest city in the world. People come to us. We don’t go to them. If you’re going down to Mar a Lago to kiss the ring, what happened to that swagger that you talked about?”

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Even with record low poll numbers, Mr. Adams still has support among his base of Black voters, some of whom question whether he is being treated fairly by federal prosecutors. A New York Times/Siena College poll in late October found that while only 26 percent of New York City voters approved of the mayor’s job performance, that number rose to 41 percent among Black voters.

An adviser to the mayor argued that a pardon would not necessarily prove to be Mr. Adams’s political death knell, provided it occurred relatively quickly, and that Mr. Adams could spend the months before the primary reminding voters why they elected him the first time.

Even if Mr. Adams were to lose some voters because of their distaste for Mr. Trump, the adviser said, he stood to pick up votes from the Latino, Asian and Orthodox Jewish communities, where Mr. Trump has some support.

If Mr. Adams is putting his status as the Democratic mayor of New York City at risk, he has other options.

For a period of time in the 1990s, Mr. Adams was a registered Republican. He could theoretically run as a Republican again. But there is no guarantee he would win in a city where registered Democrats outnumber Republicans by six to one. Some New York Republicans have thrown cold water on the idea that they would welcome Mr. Adams into their fold, and he has maintained that he will run for re-election as a Democrat.

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Still, like most things in modern Republican politics, Mr. Trump could single-handedly scramble those positions.

Mr. Adams could also abandon the mayoralty altogether and chart a new political destiny for himself as a Black MAGA Republican.

The Rev. Al Sharpton, a prominent ally of the mayor’s who has stood by him despite his indictment and a flurry of resignations from his administration, recently warned Mr. Adams, in an interview with Politico, that a pardon could seriously damage his political career.

Before Mr. Adams met with Mr. Trump, he had a text exchange with Mr. Sharpton, the reverend said. Mr. Sharpton said he warned the mayor that Mr. Trump would try to manipulate him for his own purposes.

“I told him I’m concerned that he could misuse you to cover some of his biased policies,” Mr. Sharpton said.

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“With his base, he could explain a lot of things,” Mr. Sharpton continued, referring to Mr. Adams. “What he can’t control is what Trump is going to do. And if he’s identified with that, how do you disassociate with that?”

Nicholas Fandos contributed reporting.

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New York City Bus Crashes Near Bronx Overpass, Dangling Above Roadway

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New York City Bus Crashes Near Bronx Overpass, Dangling Above Roadway

A New York City bus driver missed a turn and crashed through a low stone wall near an overpass on Friday morning, bringing the vehicle to a stop with its front end hanging over the road below, the police said. There were no injuries.

A Fire Department spokesman said the driver had been the sole occupant.

At about 8:40 a.m., the driver of the BxM1 bus, an express commuter bus that travels between Riverdale, in the Bronx, and Midtown Manhattan, missed a turn at Independence Avenue and Kappock Street in the Spuyten Duyvil section of the Bronx. He lost control of the vehicle, which “skidded over the stone wall,” the police said. “The front portion of the bus is hanging over the road.”

The bus was traveling southbound on the west service road of the Henry Hudson Parkway, which connects the Bronx and Manhattan, the police said. Rubble from the damaged wall tumbled onto the road below the overpass, photographs from local media sites showed.

Firefighters and emergency law enforcement personnel responded to the scene, which caused a stir on a local social media site.

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The Metropolitan Transportation Authority, which operates public transit in New York City, rerouted buses along the route.

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