Governor Paterson Delivers State of the State Address PDF Print E-mail
Friday, 08 January 2010 15:35
On Wednesday, January 6, Governor Paterson delivered his second State of the State address.   Although the details of the Governor’s plan remain to be seen, the two most prominent themes were reform and rebuilding.  Specifically, the Governor focused on ethics reform to bring fairness and openness to state government including the creation of an independent state ethics commission – and fiscal reform that would include a cap on the growth in state spending and the implementation of EmpireStat, a new program to track the progress of state agencies and to help make state government more accountable.  These reforms, under the Governor’s plan, would dovetail with plans to grow the state’s economy.  Such plans include a new Excelsior Jobs program to replace the struggling Empire Zones program, a Sustainable Neighborhoods Project to address the vacant housing stock in upstate New York, and movement toward a clean energy economy and a rebuilt manufacturing base. 

While there was little talk of New York’s local governments, the Governor did allude to the need for relief from both the growing property tax burden and state mandates which hinder municipal efforts to operate efficiently.  Aside from the spending cap proposal, the speech was light on details in this regard but it is expected that the release of the Executive Budget later this month will help municipal officials better understand whether and to what extent the State will do what is necessary to assist its local government partners in revitalizing New York’s economy.   
 
Relief is in Sight... PDF Print E-mail
Friday, 20 November 2009 11:06
The State Legislature passed, and the Governor signed into law, a bill containing several mandate relief initiatives that will generate savings at the local level and reduce the burden on New York’s taxpayers. 

The most significant provisions will finally allow local governments to be treated the same as private defendants when determining the impact of collateral source payments in tort claims for personal injury.  Specifically, the new law puts an end to the “windfall of double recoveries” to plaintiffs by allowing public employers to offset injury awards with payments from collateral sources, such as insurance.   

In addition, the new law (Chapter 494 of the Laws of 2009):
  • Increases the local competitive bidding threshold on public works contracts from $20,000 to $35,000.  (Note: the threshold for purchase contracts remains at $10,000);
  • Reduces the number of municipal entities, from 5 to 3, required to form cooperative health benefit plans, and requires insurers to provide claims data to municipal corporations;
  • Facilitates highway shared services agreements among municipalities and between municipalities and State agencies by eliminating certain restrictions regarding the types of services that may be shared as well as the term of such contracts; and
  • Authorizes the NYS Municipal Bond Bank Agency (MBBA) to purchase bonds issued by municipalities to provide for public improvements afforded by the American Recovery and Reinvestment Act of 2009, thereby reducing local borrowing costs.
Enactment of this law is clearly a positive first step toward providing local governments with the flexibility they need to better control costs and operate more efficiently. 
 
Governor Proposes Mid-Year Cut in AIM Funding PDF Print E-mail
Friday, 16 October 2009 14:07

Would Impact 18 Cities with Non-Calendar Fiscal Years

On October 15, Governor Paterson announced a two-year, $5 billion state deficit reduction plan.  As part of his proposal, local assistance payments remaining in the 2009-10 state fiscal year would be reduced by $1.3 billion.  For the 18 non-calendar fiscal year cities, their total AIM funding for SFY 09-10 would be reduced by 8% and withheld from scheduled payments in December and/or March.  In total, this would amount to a $66.7 million cut in AIM funding.  AIM (Aid and Incentives for Municipalities) is unrestricted state aid provided to all of New York’s cities, villages and towns. 

These proposed cuts, if enacted by the Legislature, would be a direct hit on New York's already overburdened property taxpayer, and come at the worst possible time for cities struggling with weakened economies, dwindling tax revenues, and sharply rising expenditures beyond their control (i.e., pension and health insurance costs).  Furthermore, there is a distinct possibility that the Executive Budget proposal, which will be released in January, will include AIM cuts for all cities and villages. Clearly, our state leaders must do what is necessary to get the state’s fiscal house in order.  However, shifting the state’s deficit onto New York’s property taxpayers cannot and should not be part of the solution. 


 
The Shifting Continues... PDF Print E-mail
Friday, 24 July 2009 14:23
As part of the 2009-10 State Budget, the State increased its assessment on regulated utility companies from one-third of 1% of gross intra-state revenues, to 2%.  In addition to New York State gas, electric, steam and water corporations and the Long Island Power Authority, the surcharge -- which is effective July 1, 2009 and will remain at the 2% level until March 31, 2014 -- applies to municipal electric and gas corporations. The revenue collected from this surcharge, estimated at $557 million annually, will be used to provide state general fund relief.  While this new assessment will have a direct impact on municipally-operated utilities, the surcharge will negatively affect all utility customers, including local governments and their residents, as a portion of it will appear as a new charge on consumer utility bills.    This is yet another example of the State shifting its fiscal problems onto the backs of local governments and their taxpayers.
 
Governor Signs Executive Order to Lower Property Taxes by Preventing Unfunded Mandates PDF Print E-mail
Tuesday, 28 April 2009 14:54
On April 27, Governor David A. Paterson took a significant step toward responding to what this Web site is all about – unfunded state mandates. Surrounded by local officials and representatives from the state’s municipal associations, including NYCOM, the Governor announced the issuance of an Executive Order that would require any legislation or regulation proposed by a state office or agency and containing a mandate, to include: the estimated cost to local governments (which shall be determined based on input obtained from local governments and local government associations); a cost-benefit analysis; and proposed sources of revenue to fund such mandate. This information must be provided to the Secretary to the Governor, the Counsel to the Governor, the Director of State Operations and the Director of the Division of Budget prior to the formalization of any proposal. The Executive Order also instructs state agencies to undertake a review of their current regulations and report on any proposed changes that would mitigate the impact of exiting mandates on local governments.

To view a copy of the Executive Order, click here. To view a copy of the accompanying press release, click here.

While this action taken by the Governor is a clear indication that he understands the impact state mandates have on local budgets and local taxpayers, it is imperative that the State Legislature have that same understanding if New York is going to make any real progress toward reducing its local property tax burden.
 
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