GOVERNMENT RELATIONS

Battle for State Senate Control Rages On

The battle for control of the NYS Senate continues as absentee ballots are counted in two unresolved races. In the 41st SD, incumbent Sen. Steve Saland (R) still trails Democrat Terry 

Gipson. In the 46th SD, Republican George Amedore and Democrat Cecilia Tkaczyk have taken turns gaining narrow leads 

as the count unfolds. Tkaczyk led by 139 votes entering the paper ballot count. Brooklyn Democratic Senator-Elect Simcha Felder's decision to vote with the GOP gives them 31 votes to the Democrats' 30. The GOP needs a victory by Saland or Amedore to get to the 32 required to control the chamber. Otherwise, they would need to cultivate at least one other non-GOP senator to side with them. Democrats must win both races, and retain the four-member Independent Democrats Caucus. The IDC, chaired by Senator Jeff Klein (D-Bronx, who also ran on the GOP line this year) voted with the GOP this session but has not declared its allegiance for 2013.  If the GOP keeps control, Majority Leader Dean Skelos (Nassau County) would presumably retain his position. Among those mentioned for the job if Democrats gain control: Senators Michael Gianaris (Queens, who chaired the Senate Democrats' campaign committee), Andrea Stewart-Cousins (Yonkers), Adriano Espaillat (Upper Manhattan), Kevin Parker (Brooklyn) and current Democratic Leader John Sampson (Brooklyn).  

Did you know:  Since World War II, Democrats have only controlled the State Senate in 1965, then again for most of the 2009-2010 session, interrupted briefly when dissident Democrats switched their support to the GOP. Republicans won back the Majority in 2010.    

Special Session in Albany "Highly Unlikely"

The uncertainty of who will control the State Senate makes it "highly unlikely" the Legislature will hold a special session in 2012. The Governor doesn't believe one is needed to address the worsening budget deficit impacted by Superstorm Sandy, since there must first be a decision in Washington on federal aid and none is likely by year end. Meanwhile, The Buffalo News says it's the responsibility of Congress to increase FEMA's budget and help New York.

Obama, Cuomo & Bloomberg Strategize On "Sandy" Federal Relief

President Obama, Governor Cuomo and NYC Mayor Bloomberg used their time together during the President's visit to storm-damaged communities to strategize on how to convince Congress to approve billions of dollars for post-Sandy relief. The President advised the Governor to incorporate as many states as possible into a funding request, so as to make it acceptable to a larger percentage of Congress.

New York community banks: what impact has "Sandy" had on your local banking operations and communities? E-mail Steve Rice at stever@ibanys.net 

Community Banks: Support TAG Extension, Oppose CU Power Grab to Increase Their Business Lending
With only weeks left in the lame duck congressional session, community banks are focused on extending full FDIC coverage of non-interest-bearing transaction accounts (TAG) beyond its Dec. 31 expiration. We must also stay vigilant in blocking a campaign from the credit union lobby to expand its business-lending authority. The National Association of Federal Credit Unions wants Congress to combine an increase in the credit union member-business-lending cap with an extension of TAG. ICBA and IBANYS strongly oppose an increase in the cap, and strongly support an extension of TAG coverage -- and, will not accept linking a temporary TAG extension with a permanent increase in the credit union business-lending cap. (The credit unions' proposal would more than double the congressionally imposed cap to 27.5%, and new loans made by credit unions under the higher cap would displace loans made by taxpaying banks.)  We encourage New York community bankers to urge their local congressional representatives to extend the TAG coverage, and oppose an increase in the tax-exempt credit unions' member-business-lending authority.