GOVERNMENT RELATIONS

Sandy's Impact on 2012-13 State Budget

Hurricane Sandy closed Wall Street for two days, and likely caused billions of dollars' worth of damage. The tax revenue from Wall Street once accounted for 20% of the state's budget, and still accounts for 14%. With NYC playing such a pivotal role in the State's economy, how will this impact the already shaky bottom line? State Comptroller DiNapoli's office said it's too early to determine how much was lost in terms of revenue and productivity. However, New York is already projecting a $1 billion state deficit for 2013-2014, and the Comptroller warned last week the State isn't meeting its projected targets for tax revenue, having fallen about $213 million short in the first six months of the fiscal year.

...and, on the Elections

At least one competitive NYS Senate race could be impacted by Sandy. Parts of the 15^th SD in Queens suffered significant damage.  Democratic Sen. Joe Addabbo faces a strong challenge from GOP NYC Councilman Eric Ulrich. The race could play a key role in the eventual balance of power in the Senate in 2013, and is one of the tightest and most expensive Senate races in the state. If voters are confused about where to vote, or focused more on storm recovery than voting, it could have an unpredictable impact. Meanwhile, on Long Island, elections officials must decide if polling sites in Nassau and Suffolk Counties will be operable by Election Day. Competitive races on L.I., include the 1^st CD (Democratic Congressman Tim Bishop vs. GOP challenger Randy Altschuler), and the 4th NYS Senate District, where GOP Assemblyman Phil Boyle and Democrat Rick Montano battle to succeed retiring State Senator Owen Johnson. The GOP must maintain its hold on L.I. to keeping the majority in the Senate. 

Thousands Sign Basel III Petition to Exempt Community Banks  Nearly 15,000 community bankers and supporters have signed an ICBA petition asking regulators to exempt community banks from the proposed Basel III capital regulations. The Basel III rules were designed to apply only to the largest banks, yet the proposed rules would impose the regulations on banks of all sizes. Meanwhile, bi-partisan concern is growing in Congress, and national and local media have begun to focus on the issue. For information on the petition, comment letters and other efforts taken by the industry, including IBANYS, throughout 2012 visit ICBA's advocacy page.  

Federal Regulators Announce Hurricane Sandy Relief Efforts  The OCC, Federal Reserve and FDIC,  recognizing the serious impact of Hurricane Sandy on customers and operations of many financial institutions, and will provide regulatory assistance to affected institutions subject to their supervision. Read more.