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POLITICO New York Playbook: CUOMO backpedals on city hits -- HORSE CARRIAGE deal -- HILLARY on Fallon

01/15/2016 07:40 AM EDT

By Azi Paybarah in Manhattan, Jimmy Vielkind in Albany, and Mike Allen in D.C., with Daniel Lippman

CUOMO SHIFTS TONE ON CUNY, MEDICAID - POLITICO New York's Jimmy Vielkind: In his second attempt to recast a media narrative that his proposed budget hurts New York City, Gov. Andrew Cuomo said in an interview that his proposals to shift costs to Mayor Bill de Blasio's books are actually a joint effort to reduce the "cost of bureaucracy" at the City University of New York and in the city's Medicaid program. "At the end of the day, what you'll see is it won't cost New York City a penny. But we will make joint streamlining policy, efficiency changes and that's what you're seeing signaled in this budget," Cuomo said in a telephone interview with NY1 anchor Cheryl Wills. "At the end of the day, there will be no cut to CUNY. I'm sure you want to see more funding for CUNY, but we have to find more efficiencies both in CUNY and the Medicaid system. ... That's what the mayor's interested in, and that's what I'm interested in, and these are jointly managed processes."

De Blasio, who has been quarreling openly with Cuomo for months, apparently has not been told that this is the plan. The Democratic mayor said Thursday at an event in Queens that Cuomo's proposal would be "debilitating" to programs that are already underway, like his recent decision to hire an additional 2,000 police officers. Several media outlets highlighted the cost shifts, including the Daily News. The tabloid's front page headline on Thursday morning was, "Hey Blaz, hope you played Powerball." Another headline said Cuomo's proposal was "Screw York City," and an editorial described the Democratic governor's proposal as "a big punch in the face."

-- Michael Grynbaum in the Times: "In a day of abrupt rhetorical shifts, the mayor and the governor, both Democrats, seemed to shift their positions from 24 hours earlier, when Mr. de Blasio praised Mr. Cuomo's budget plan and the governor suggested he was imposing fiscal discipline on the city." http://nyti.ms/233vEgC

-- Josh Dawsey and Mara Gay in the Journal: "By early evening ... Mr. Cuomo appeared to walk back at least the part of his proposals." http://on.wsj.com/233vKEZ

-- Ken Lovett and Erin Durkin in the News: "Score one for the mayor." http://nydn.us/233w2f0

-- The money Cuomo promised the Metropolitan Transportation Authority won't come until the end of its five-year capital plan. http://politi.co/233sqcN

WAKE-UP SCOOP - Gianaris for AG?: Laying the groundwork for a possible run for attorney general, State Sen. Mike Gianaris has reactivated a long-dormant campaign account and begun raising funds for a statewide campaign in 2018. Gianaris, a Queens legislator who leads the Democrats' efforts on the chamber floor and chairs their campaign committee, told POLITICO he would seek re-election to his seat in 2016 and remained committed to helping Democrats win the chamber majority. "My priority continues to be my commitment to bring a lasting Democratic majority to the state Senate, and that is where my focus lies. But it's always good to be prepared for the future," he said during a brief interview. The decision to start raising money now reflects the belief in Albany that Cuomo, a Democrat, will not seek a third term in 2018. (Cuomo has said he will run again, and is raising campaign cash.) It's expected Attorney General Eric Schneiderman, a Democrat, would mount a gubernatorial campaign if Cuomo decides not to, leaving the attorney general's seat open once again. Gianaris said he will not run in a primary against a current incumbent. http://politi.co/1KgzJ5A

THE NEWS RIGHT BEFORE MLK WEEKEND ...

HORSE DEAL -- POLITICO New York's Gloria Pazmino: After two years of behind-the-scenes negotiations, Mayor Bill de Blasio and the City Council have reached a deal on a bill that will remove carriage horses from city streets, move them into Central Park and drastically curb the industry.

The deal could end a battle between City Hall, animal rights groups and the union representing carriage drivers that began with de Blasio's campaign-trail promise to do away with the industry entirely his first year in office. The proposal - the result of aggressive negotiations this week - will cut the number of horses from 220 down to 75, with a remainder of 20 horses living off-site. As part of the deal, the horses will be moved from their current stables on the West Side of Manhattan to stables located near the Central Park 86th Street Transverse ... Sources confirmed the severance packages for carriage drivers have not yet been discussed, because the administration is likely to maintain the number of carriage medallions in an effort to preserve some jobs. http://goo.gl/RsCHJO

-- Associated Press' Verena Dobnik and Jonathan Lemire: "As many as two-thirds of the approximately 200 horses working in the park would be permanently retired. The remaining ones would get a new home, a stable built within Central Park, a City Hall official not authorized to speak publicly about the negotiations told The Associated Press. The official told the AP the plan could be announced by Friday." http://goo.gl/1p1usT

-- WSJ's Josh Dawsey and Mara Gay: "Mayor Bill de Blasio vowed to ban the horses from the city when he was running for office in 2013. The agreement coming into focus falls well short of that promise, though it amounts to a reinvention of the horse-and-carriage business in the city. The number of carriage horses would decline from 220 to 95, with 75 horses permitted to work at any given time. ... No full-time drivers are expected to lose their jobs in the deal, a Teamsters Local 553 spokesman said Thursday." http://goo.gl/muzNXO

-- Related: City Hall's traffic / Uber report: "The study could be released as early as Friday, but it could be delayed yet again." -- Times' Emma Fitzsimmons: http://goo.gl/yHDQdl

QUOTE OF THE DAY: "This is a budget that really understands the problems and the priorities of New York City." -- Gov. Andrew Cuomo, on NY1.

BONUS QUOTE OF THE DAY: "[The cuts] are unprecedented and they are unfair to our city." -- Mayor Bill de Blasio, via WNYC's Brigid Bergin: http://goo.gl/DQRvPm

TABS -- Daily News: "DROP DEAD, TED: Hey Cruz: You don't like N.Y. values? Go back to Canada!" Bottom page headline: "Cuomo flip-flops on $800M city hit" -- earlier front page, with image of Cuomo holding a wad cash: "I WAS JUST KIDDIN' BLAZ!" ... SEE THEM: https://goo.gl/XnUk06

-- Post: "CRIME OF FASHION: Von Furstenberg: Von Furstenberg 'impostor scams' luxury penthouse" -- amNY: "THE NEXT STOPS: More overnight shutdowns for repairs coming this year; PLUS: Full Fastback schedule inside" -- Newsday: "GOP PRESIDENTIAL DEBATE: FIGHTING WORDS" -- Metro: "GIANT SMILES" -- Hamodia: "NYC Hit Badly by Cuomo's Budget, de Blasio Fights Back" and "De Blasio on Cusp of Possible Horse Carriage Deal" -- Epoch Times: "My Time with DAVID BOWIE"

LOCAL -- Queens Chronicle, northeast, with pics of de Blasio, and Council members Paul Vallone and Barry Grodenchik: "HEY, BIG $PENDER! Council members ask mayor to find some savings" -- QC, south: "THEY STILL DON'T WANT IT: CB9 slams bus lane project at hearing" -- QC, central: "THE DAY THE MUSIC DIED: City says no to multi-day Flushing Meadows festivals" -- Queens Tribune, with a pic of de Blasio: "THE DAY THE MUSIC DIED"

-- The Home Reporter: "R YOU KIDDING? Bay Ridge Avenue station one of 30 citywide to close for months for upgrade" -- The Brooklyn Spectator, with pic of Cuomo: "ON TRACK: Governor comes to Brooklyn to announce improvements coming to subway system" -- Chelsea Now: "AHV's Blasted as 'Rubber Stamp Permits"

FRONT PAGES -- NYT, 1-col. above the fold: "TRUMP AND CRUZ EXCHANGE TAUNTS AT G.O.P. DEBATE" -- WSJNY, 2-col. above the fold: "Mayor Promises To Fight Cuomo Budget Proposal" AND, 4-col. below the fold: "Deal Would Restrict Horses to Park"

TV TODAY: "In a CNBC exclusive interview, Andrew Ross Sorkin will sit down with Preet Bharara, U.S. Attorney for the Southern District of New York ... [today] at 1PM ET on CNBC's 'Power Lunch.'"

'CHILLING EFFECT ON CONSULTANT WORK' -- Cuomo-created ethics body may vastly expand oversight, POLITICO New York's Bill Mahoney: An advisory opinion that would expand the scope of individuals regulated by the Joint Commission on Public Ethics has gained support and inspired opposition from those already registered with the commission and those who might be.

The state's top ethics agency is seeking to require consultants and public relations professionals who are paid to influence the passage of legislation to disclose information about how much they're being paid and what bills they're attempting to pass or defeat. The proposal was first raised at a May meeting of the commission and has subsequently been subjected to public comment and amended. http://politi.co/232RJvR

PAY DAY FOR POLS -- De Blasio accepts salary hike recommendations but declines one this term -- POLITICO New York's Gloria Pazmino: With a deadline approaching, Mayor Bill de Blasio on Wednesday night told the City Council he is accepting recommendations made by the Quadrennial Advisory Commission to increase salaries for the city's elected officials. In his response, which de Blasio sent to Council Speaker Melissa Mark-Viverito via email at 11:49 p.m., just 11 minutes shy of a midnight deadline, the mayor said he would endorse the commission's recommendations, including a proposal to install reforms at the Council such as banning outside income and committee chairmanship bonuses.

Despite the recommendation, de Blasio has said he will decline to accept a raise this term but has left the door open for a salary increase in 2017 if he is re-elected. In the case of the City Council specifically, the panel's recommendations include a significant salary increase tied to the Council enacting several reforms, including eliminating the committee chairmanship bonuses known as "lulus" and banning outside income by making Council jobs full time. Now that the mayor has submitted his response, the Council will review it along with the Quadrennial's report and come up with their own recommendations. Following that, the Council is free to draft legislation to approve giving themselves a raise which must be enacted through local law. Both the commission's recommendations and the mayor's response are purely advisory and bear no power over what the Council could outline in their bill. http://politi.co/1nmdhTx

-- MORE MONEY, MORE PROBLEMS: Police union boss: 'abomination': The president of the Patrolmen's Benevolent Association blasted Mayor Bill de Blasio's administration and the City Council on Thursday for considering a recommendation that the city's elected officials be given pay raises. In a statement, Patrick Lynch, whose union represents the New York Police Department's rank-and-file officers, said it was an "abomination" that the administration and Council would consider pay raises for themselves after police officers were only given 1 percent raises for each of the next two years during arbitration. "A fifteen percent raise for the Mayor, 23% for Council members and a 37% raise for the speaker is an abomination and an insult to every police officer in this city who is expected to make do with two 1% raises," Lynch said in the statement. http://politi.co/1ZyEeon

SNEAK PEEK -- Sharpton, on media deal Charter, Time Warner Cable and Bright House Networks: "This agreement is another marker of progress that brings with it special resonance on Dr. King's birthday - together we are continuing to move closer to achieving his dream of equality in America. The MOU is strengthened by these diverse groups coming together with Charter to affirm their commitment to a future of greater inclusion and diversity. Far beyond just superficial statements, Charter is making concrete assurances to enhance multicultural leadership in corporate governance, their workforce, procurement, programming and community investment. The enactment of the agreement is contingent upon approval of Charter's merger with Time Warner Cable and Brighthouse - and for that reason we urge regulators to expedite this process." ... Related: MOU signing at 10 a.m. at the Sheraton in Manhattan.

MARK YOUR CALENDARS -- Mark-Viverito to deliver State of the City on Feb. 11 -- POLITICO New York's Gloria Pazmino: City Council Speaker Melissa Mark-Viverito will deliver her second State of the City address on Thursday, Feb. 11. According to an invitation obtained by POLITICO New York, the speaker will deliver the speech at the Samuel Gompers Career and Technical education high school in her Bronx district. Following tradition, Mark-Viverito did not deliver a speech during her first year in office in 2014. Last year, Mark-Viverito delivered her first State of the City speech in an East Harlem public housing community center, where she laid out a wide-ranging agenda on criminal justice, bail reform, investments for NYCHA and technology in public schools. http://politi.co/1Q9jDku

BROWNSVILLE RAPE CASE -- "DA stalls for time as Brooklyn gang rape case crumbles" -- Post's Jamie Schram, Emily Saul, Lorena Mongelli and Kevin Fasick: "The Brooklyn District Attorney's office is stalling for time in the crumbling case against five teens accused of gang rape - as the alleged victim's dad was questioned by police again on Thursday evening, law enforcement sources told The Post. Prosecutors had until Friday to secure a grand jury indictment, otherwise the teen suspects could be released without bail. But they won't make that deadline, so 17-year-old Onandi Brown was to be released from jail on Thursday, law enforcement sources said. The Brooklyn District Attorney's office is stalling for time in the crumbling case against five teens accused of gang rape - as the alleged victim's dad was questioned by police again on Thursday evening, law enforcement sources told The Post." http://nyp.st/1OlgFXC

BIRTHDAYS: Sam Schulz, senior editor at Politico States and an NBCUniversal alum ... ... Assemblyman Joe Lentol of Brooklyn ... pollster Mark Penn ... Lorraine Voles, VP of external relations at The George Washington University (h/t Jon Haber) ... WCBS City Hall reporter Rich Lamb ... Joe Coletti, business strategist in U.S. Municipal Finance at RBC Capital Markets, a former SVP of the NYC Economic Development Corporation and a vet of McCain N.H. and Ohio ... Connie Ress, associate commissioner of marketing & communications at the Mayor's Office of Media & Entertainment ... Kathleen Ehrlich, formerly of WNYC and currently across the pond as the the co-chair of the Online News Association's UK chapter ... SATURDAY: POLITICO New York reporter, and Wiki expert, Kelly Weill, turns 22 ... SUNDAY: Patrick Hedlund, reporter at DNAinfo.

SECRET SOCIETY -- "Young Republicans in New York: It's a Very Old Club but a Small One," by John Surico in the Times : "Interviews with a dozen or so members of the club, the oldest Young Republicans chapter in the country, made it clear that being so outnumbered can pose serious challenges. Some believe that they have ruined job interviews by disclosing their Republican leanings; others said they lie about their political beliefs to avoid confrontation. Out of fear of retribution in their industries, several members refused to be interviewed or would give only their first name." http://nyti.ms/1RpyGrC

MEDIA MORNING -- Full list of finalists for National Magazine Awards, announced yesterday http://bit.ly/1RK2vU9

INSIDE SILVER'S JURY ROOM - Zack Fink in City & State: "'When all 12 jurors walked into the room it was split roughly in half between those who felt Silver was guilty and those who did not,' Jane, a juror whose real name is not Jane, recounted. If instructions were followed, it was the first time the 12 jurors had ever discussed the case. They wrote out each of the seven counts on a large whiteboard in the center of the room, and methodically went around the rectangular table taking input from every juror on each count. After about an hour and half of convincing and cajoling, a woman since identified as Arleen Phillips and another male juror were the only holdouts who did not believe Silver was guilty. The male juror, since identified as Bronx taxi driver Kenneth Graham, said little. And according to Jane, 'no one really took him seriously.' Graham later claimed he had not questioned Silver's guilt. But as the consensus in the room was building to convict, Phillips refused to acquiesce. And she quickly became the focus of the group's ire. 'It was getting noisy,' Jane said. 'Two jurors seemed to be ganging up on her. One of the jurors kept raising her voice.' After going around the room again, Phillips shut down. She put on her sunglasses and simply stopped engaging with the other jurors. At about 12:40 p.m. she passed her first note to Judge Valerie Caproni." http://bit.ly/233uwcE

WHERE'S LEE ZELDIN? - New York Post's Marisa Schultz: "Freshman Rep. Lee Zeldin has positioned himself as a foreign policy firebrand with his tough talk on taking out ISIS. But Zeldin has skipped out from his assignment as a member of the House Foreign Affairs Committee, which is charged with dealing with national security foreign policy. A review by The Post found the Long Island Republican missed more than half of full committee hearings last year. His attendance record is worse - absent 67 percent of time - when looking at full committee and subcommittee hearings focused just on ISIS and the Syrian crisis - issues Zeldin regularly lectures about on cable news." http://nyp.st/233xgqv

EATING IN ALBANY - Times Union critic Steve Barnes: "The area's biggest restaurant group, Clifton Park-based Mazzone Hospitality, will be reopening the restaurant space in the center of the Empire State Plaza that for many years was called Sign of the Tree. It has been empty since its last operator, LoPorto's Restaurant in Troy, walked away in 2005." http://bit.ly/233soSt

ON THE MENU-"Danny Meyer closes in on events deal at 28 Liberty St.," by Post's Lois Weiss: "Famed restaurateur Danny Meyer is close to a deal to run a new events space at the top of 28 Liberty St., The Post has learned. Meyer is the force behind the Union Square Cafe, Gramercy Tavern and The Modern, among others. He also owns Union Square Events, which is poised to become the operator for the yet-to-be named space on the 60th floor of the former One Chase Manhattan Building. ... The restaurant won't be open to the public but will serve as a catering and events space and supply victuals to the office tenants." http://nyp.st/1PePkUu

PAYBACK-"Goldman Sachs to pay $5B fine for RMBS activities," by Real Deal's Rey Mashayekhi: "Investment banking giant Goldman Sachs is set to pay more than $5 billion to settle civil claims tied to the firm's securitization, underwriting and sale of residential mortgage-backed securities in the lead-up to the global financial crisis. The Battery Park City-based institution will pay nearly $2.4 billion in civil monetary penalties, as well as $875 million in cash payments and $1.8 billion in consumer relief, for its RMBS practices between 2005 and 2007, it said in a statement Thursday. ... The consumer relief will include principal forgiveness for underwater homeowners and distressed borrowers, as well as financing for housing construction and support for debt restructuring and foreclosure prevention, Goldman said The deal - agreed in principle and still subject to final approval - will resolve both "actual and potential" claims against the bank by the U.S. Department of Justice, the attorneys general of New York and Illinois, the National Credit Union Administration and the Federal Home Loan Banks of Chicago and Seattle." http://bit.ly/1PeMSgA

LATE-NIGHT BEST - JIMMY FALLON gives Hillary a mock job interview for president: "How did you hear about the position?" Hillary: "Fourth grade social studies." ... Jimmy: "What are your strengths?" Hillary : "I'm tenacious, determined, I've gotten results." Jimmy: "Can you type?" Hillary: "I can, in a pinch." Jimmy: "Are you a one-finger typer or a two-handed?" Hillary: "On a real keyboard, I can actually type with more than one finger, but on an iPhone, it's hard, I gotta tell you, I'm still struggling. You know what I really get annoyed by? Their spellcheck takes the word I'm trying to type and totally throws it out and puts something else in that has no meaning whatsoever and then I have to start all over."

JIMMY : "Let's not veer off the questions, Hillary. Again, we're interviewing you for this job. It's good for a stand-up comedian maybe, but not for this job." Hillary: "Well you've got to have a little bit of that, don't you think, Mr Fallon?" Jimmy: "You're chatty, Hillary. You're a little chatty Cathy ... Lastly, is there an email address we can reach you?" Hillary laughs: "You can follow me on Snapchat." 3-min. video http://bit.ly/1OSL4hA

PIC OF THE DAY - SPOTTED by a tipster at US Customs at JFK: The Industrial & Commercial Bank of China (owned by the Chinese government) has an entire room of ad, which reads, "¥es, $ure. This is our answer for your RMB needs. Your Global Partner. Your Reliable Bank. ICBC". The pic http://bit.ly/202qUVZ

Our emailer writes: "From a PR point of view this is not effective at all, first of all consider the economic environment ... A lot of foreign investment is pulling offshore, taking large sums of USD with them away from China. Yuan is cheap and volatile at the beginning of 2016. ... Also how many of these people entering into the U.S. border actually care for storing Yuan? ... [S]omeone who's preparing the budget for this campaign could be making big bucks."

ZONE DEFENSE: "Candidates for Charles Rangel's Seat Pan Bill de Blasio's Affordable Housing Plan," by Observer's Will Bredderman: "Three candidates competing for the soon-to-be-vacant seat of retiring Congressman Charles Rangel trashed Mayor Bill de Blasio's affordable housing plan at a debate tonight-all of them arguing that most of the new units produced would still be out of the price range of the district's constituents.

"Former Assemblyman Adam Clayton Powell IV, sitting Assemblyman Guillermo Linares and Obama and Clinton administration veteran Clyde Williams took turns kicking the mayor's proposed citywide rezoning plan at the Uptown Community Democrats candidate forum in Washington Heights. Mr. de Blasio's mandatory inclusionary housing proposal would obligate all developers to include below-market apartments in new projects, either 25 percent for those earning an average of $46,600 for a family of three, or 30 percent for tenants making $62,000 for a three-member household." http://goo.gl/1yLdQO

IN THE HEAT OF THE NIGHT-"De Blasio administration backs raising minimum for heat at night," by POLITICO New York's David Giambusso: "A city housing official testified in support of a bill that would raise the minimum temperature for residential apartments at night during a hearing Thursday before the Committee for Housing and Buildings. 'Intro 722-A would eliminate the outside temperature as a determinant for the provision of a minimum indoor temperature,' Vito Mustaciuolo, deputy commissioner for enforcement and neighborhood services at the Department of Housing Preservation and Development, said in prepared testimony. 'HPD strongly supports this modification, because the outside temperature requirement presents enforcement challenges.' Currently, buildings are required to keep the heat at 55 degrees, but the use of the minimum is tied to the outside temperature. This makes it difficult for inspectors to issue violations, Mustaciuolo said. The bill would make the minimum temperature mandatory between October and May, regardless of the temperature outside." http://politi.co/1P3rLUC

THE HOME TEAMS -- POLITICO New York's Howard Megdal: Tom Coughlin turned down the Eagles, sparing Giants fans everywhere some awkward moments.

-- NYCFC grabbed Jack Harrison in the MLS Superdraft Thursday, a midfielder they coveted (but who overlaps with most of their best players positionally). The Red Bulls didn't draft until pick 18, with all the winning they did last season, and selected defender Justin Bilyeu.

-- The day ahead: It's the NWSL's turn to draft, and Sky Blue FC picks third. The Nets host the Blazers. In New Rochelle, it's an epic mid-major men's basketball clash, with Iona facing Monmouth.

#UpstateAmerica: Here's a list of the best places in New York to see a bald eagle this winter. http://on.ny.gov/1ldy75P

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