Full Breakdown
Mayor Mamdani’s Administration Terminates Cornerstone Day Care Contract
6/28/2026, 9:12:44 PM
Core Event: Contract Non-Renewal and Alleged Financial Misconduct
In May 2026, the New York City Department of Education (DOE) notified Jasmine Ray, operator of the Cornerstone Day Care Center in Brooklyn, that the department would not renew the center’s $933,000 annual contract when it expires at the end of June. The decision followed findings that the center had failed to pay rent for up to two years and that Ray received an $80,000 consulting fee from the facility while simultaneously holding a $160,000-a-year city position. DOE officials also asserted that Ray retained the title of executive director in violation of a city-issued waiver that limited her involvement to ten hours per week.
Background & Context: Dual Roles and Conflict-of-Interest Waiver
Ray, who was the romantic partner of former Mayor Eric Adams, was granted a waiver by the city’s Conflicts of Interest Board under Adams’ administration. The waiver permitted her to occupy two publicly funded positions—the day-care executive directorship and the role of New York City’s first director of the Mayor’s Office of Sports, Wellness and Recreation—provided she limited her day-care duties to ten hours weekly and relinquished the executive-director title. DOE’s review concluded that Ray continued to hold the title and that her compensation at Cornerstone increased, suggesting a breach of the waiver’s terms.
Key Figures & Organizations
- Jasmine Ray – Operator of Cornerstone Day Care Center; former director of the Mayor’s Office of Sports, Wellness and Recreation.
- Eric Adams – Former New York City mayor; granted the conflict-of-interest waiver.
- Zohran Mamdani – Current New York City mayor; his administration enacted the contract termination.
- New York City Department of Education – Issued the non-renewal notice.
- Conflicts of Interest Board – Approved the waiver limiting Ray’s dual employment.
- Elisheba Lewi – DOE chief procurement officer; authored the March 31 letter citing the consulting fee.
Timeline of Developments
- 2017 – Ray begins employment at Cornerstone Day Care Center.
- [Date unspecified] – Adams administration grants waiver allowing Ray’s dual roles.
- [Date unspecified] – Ray appointed director of the Mayor’s Office of Sports, Wellness and Recreation, earning $160,000 annually.
- March 31, 2026 – Lewi sends a letter stating the center “charged D.O.E. a substantial sum for Ms. Ray’s consulting services.”
- May 2026 – DOE informs Ray that the $933,000 contract will not be renewed.
- June 30, 2026 – Contract expiration; termination takes effect.
Financial Data & Contract Details
- Annual DOE contract with Cornerstone: $933,000.
- Consulting fee paid to Ray by the center: $80,000.
- Salary for Ray’s city role: $160,000 per year.
- Waiver-imposed work limit at Cornerstone: 10 hours per week.
- Unpaid rent alleged for up to two years; exact amount undisclosed.
Official Statements & Responses
DOE procurement chief Elisheba Lewi wrote that the center “charged D.O.E. a substantial sum for Ms. Ray’s consulting services.” The department also indicated that Ray’s continued executive-director title and increased compensation violated the waiver’s conditions. Mayor Mamdani’s administration cited these findings as the basis for ending the contract, emphasizing adherence to city ethics rules.
Criticism & Opposition
The DOE’s assessment has been framed as a critique of Ray’s simultaneous public-sector employment and private-sector compensation. Observers within the department argued that the waiver’s restrictions were not upheld, raising concerns about potential conflicts of interest and the appropriate use of taxpayer funds.
Conflicting Reports & Gaps
The sources do not disclose the precise amount of unpaid rent or the total “substantial sum” referenced in Lewi’s letter. Ray’s own response to the allegations is absent, leaving a gap in the record regarding her perspective on the waiver compliance and financial transactions.
Verbatim Quotes
- “charged D.O.E. a substantial sum for Ms. Ray’s consulting services.” — Elisheba Lewi, DOE Chief Procurement Officer
What’s Next
With the contract terminated, Cornerstone Day Care Center will lose its $933,000 DOE funding after June 2026. The city’s ethics office may pursue further review of Ray’s dual employment and any additional contracts that involve similar conflict-of-interest arrangements. Ongoing monitoring by the Conflicts of Interest Board is expected to ensure compliance across other city-funded programs.
