06/06/2008
Gov. Paterson: "Enough is enough: We have to implement a property tax cap now"
Gov. David Paterson accepted the report of the New York State Property Tax Commission, led by Nassau County Executive Tom Suozzi, which called for a property tax cap, limiting the growth of property taxes to 4 percent or 120 percent of the consumer price index (CPI), whichever is lower. Paterson not only strongly endorsed the property tax cap proposal, but indicated he will propose legislation to enact it. The commission's report also calls for mandate relief and other cost containment measures for school districts.
NFIB/New York was briefed by the commission and governor's staff on the report, and was included in the governor's press announcement on its contents.
NFIB/New York State Director Mike Elmendorf said, "Today's report by the Property Tax Cap Commission, outlining a realistic, achievable and effective plan to cap the growth of property taxes which have been sapping our competitiveness and driving people from their businesses and homes, is welcome news.New York's highest-in-the-nation property tax burden is a key reason why we also have the second-highest cost of doing business in the country. This staggering tax burden is a double-whammy for small business owners, who get hit by the tax man at their business and in their homes. That's why 83 percent of small business owners recently polled strongly supported a property tax cap -- and why NFIB will be fighting for its enactment."
As previously reported, Assembly Speaker Sheldon Silver has signaled his opposition to a property tax cap -- which is also opposed by big labor, public employee unions, the teachers' union and the anti-business "Working Families Party." NFIB/New York has already called upon the Speaker to give the property tax cap proposal the hearing and up-or-down vote it -- and New York's overburdened taxpayers -- deserve. That call takes on added meaning today with the commission's report and with Gov. Paterson joining the battle.
Fighting for a property tax cap will continue to be a top priority for NFIB/New York -- and we will likely be calling on you to make your voice heard to the legislature on this critical issue.
Help NFIB defeat paid family leave, again!
Last year, with your help, NFIB/New York led the fight to stop former Gov. Eliot Spitzer's paid family leave mandate, which would create the right to up to 12 weeks of paid family leave for employees in New York -- regardless of the size of their employer. In our most recent member ballot, 92 percent of NFIB/New York members voiced their opposition to this proposal.
Despite our success last year, big labor and the "Working Families Party" are making a major push to enact this new job-killing mandate in these final weeks of the legislative session.
NFIB/New York is once again fighting hard against this damaging proposal that would have a very negative impact on small business, and we need your help! This legislation would mandate up to 12 weeks of paid family leave. This leave would be provided by changing New York's Temporary Disability Insurance (TDI) to include non-disability related leave for family reasons. Unlike the federal Family and Medical Leave Act, this law would apply to businesses of all sizes -- there would be no exemption for small business.
Small business would be saddled with the significant costs and burdens involved with replacing or covering for an employee who may be gone for as long as three months. The long-term absence of key employees can be crippling. This plan would also impose significant costs on employees in terms of tracking and reporting leave, administering new statutory provisions and notifying employees of the new law.
A paid family leave mandate will be one more threat to the viability of small businesses in New York -- which already has the second highest cost of doing business in the nation. The governor and Legislature should be taking steps to lessen the costs and burdens placed on business in New York -- not adding to them.
It is critical that you contact the governor and your legislator to voice your opposition to this dangerous proposal. Voice your opposition.
NFIB fights for repeal of unfair, anti-competitive Wicks Law "reform" provisions
We have come out in support of legislation (S.8321/A.11397), introduced by Sen. George Winner and Assemblyman Robin Schimminger, which would correct a costly, harmful and substantially unfair provision that was included in a flawed Wicks Law "reform" package previously enacted into law.
Wicks Law "reform" included in the budget allows state agencies, authorities, school districts or local governments to require the use of project labor agreements (PLAs) for projects exempted from the separate contractor requirements of the Wicks Law and imposes other requirements. This language was the same as included in separate Wicks Law reform legislation that we ended up opposing last year.
PLAs are problematic for several reasons. First, there is significant evidence to suggest that they themselves add to the cost of public works projects, and would thus undo the very savings intended through reform of the Wicks Law. One study indicated that the use of PLAs increased the cost of public construction projects by as much as 20 percent. Replacing one provision of the law that adds to the costs of public projects with another runs counter to the whole purpose of Wicks Law reform -- providing relief for New York's overburdened taxpayers.
Perhaps even more troubling, PLAs would also pose a potentially insurmountable barrier to small businesses participation in such public projects. Many small firms are open shops, and the requirements of PLAs would at best impose significant costs and disadvantages on these small businesses, and would essentially prevent them entirely from being able to participate in such projects. NFIB members have long opposed PLAs, which are anti-competitive and unfairly disadvantage open shops. The message of requiring PLAs is clear: Small business need not apply.
NFIB members have also supported the concept of Wicks Law reform as a means to decrease the cost of public projects, thereby easing our state's oppressive tax burden, especially at the local level. However, the PLA provision so runs counter to that intent and creates such an unfair and unmanageable standard for small business that it compelled us to oppose the Wicks Law "reform" that was enacted.
This legislation would correct that imbalance, rightly re-open the door for small business participation in public projects, and allow for significant savings of millions of dollars in the cost of public projects. We are joining with others in the business community and construction industry to make the case for the Legislature to right the wrong created by these provisions.
Gov. Paterson takes additional steps to reign in spending
Continuing his push for fiscal restraint, Gov. David Paterson announced the "Program to Eliminate the Gap" (PEG) to monitor spending cuts across the agencies -- and make it easier for the public to keep track as well.
Paterson has called for across the board spending reductions of 3.35 percent for all agencies.
The PEG initiative will establish a process for agencies to achieving targeting spending reductions and improve their efficiency and cost-effectiveness. It will also generate an online report on agencies' plans to achieve savings and their progress toward them. It also creates an oversight board to monitor the agencies' spending reductions, empowered to take action where necessary.
This latest action is just one more indication that Gov. Paterson is serious about tightening state government's purse strings in meaningful ways -- and that's good news for New York's taxpayers.
NFIB backs bill to scrutinize unfair public/private competition
NFIB/New York has thrown its support behind legislation (S.6835B/A.10123A), introduced by Sen. Jim Seward and Assemblywoman RoAnn Destito, which would create a blue ribbon commission to study the issue of competition between public and privately owned outdoor recreational facilities such as golf courses, ski centers and campgrounds.
New York is home to some of the country's most outstanding and beautiful venues for outdoor recreation. While these facilities are both public and private, in many ways the public facilities operate at a significant advantage over privately owned facilities, which already contend with the second highest cost of doing business in the nation.
For instance, public facilities do not pay property taxes. Privately owned facilities do, struggling with the highest property tax burden in the country. Public facilities are also able to purchase goods, services, utilities and employee benefits at much lower rates which are unavailable to private businesses. For those public facilities which operate at a deficit, their operating losses are covered by government. Private facilities operating at a loss simply go out of business.
The problem goes beyond private facilities being placed in unfair competition with publicly owned facilities. As taxpayers, these private facilities are underwriting the very competitors who are hacking away at their bottom lines.
Privately owned outdoor recreational facilities are important tourist attractions, preserve open space, pay taxes and employ thousands of people across our state. Like all businesses, they face the challenges of an already adverse business climate in New York. However, the added difficulty of competition with taxpayer-financed facilities raises fundamental issues of fairness and for many owners of such businesses has forced them to question whether they can continue to exist.
This is why NFIB supports this legislation to establish a commission charged with studying the competition that exists between public and private outdoor recreational facilities, with an eye toward leveling the playing field.
We are hopeful this legislation will move in the busy final weeks of the session, and will keep you informed of its progress along with the many other bills we are tracking which could impact your business.
NFIB/New York state director elected to "NY Tort Reform Now" board of directors
NY Tort Reform Now, a broad-based coalition of business, professional and local government leaders united to fight for reform of New York's onerous tort system, has elected NFIB/New York State Director Mike Elmendorf to its board of directors.
New York's tort system and resulting lawsuit abuse drive up our state's second highest in the nation cost of doing business, contribute to our worst in the country property tax burden, increase costs for and reduce access to healthcare and push up costs for homeowners and builders.
NY Tort Reform Now is committed to changing that, standing up to the trial lawyers and pushing for common-sense reform of our tort system to make New York more competitive.
Jillian Blacha joins NFIB/New York as member support manager
Amsterdam native Jillian Blacha has joined your NFIB/New York team as member support manager.
Jillian comes to us from the New York State Senate, where she most recently served in the Office of Constituent Relations. Prior to that, she was communications associate and assistant to the press secretary to Senate Majority Leader Joseph L. Bruno. She is a graduate of the College of Saint Rose.
As member support manager, Jillian will coordinate member our outreach, grassroots and activism efforts, and also serves as a point of contact and resource for you with any questions you might have about NFIB. She can be reached at 518-434-1262 or by e-mail at Jillian.Blacha@nfib.org.
Please join us in welcoming Jillian aboard!
Empire Center launches effort to keep tabs on public payroll costs
The Manhattan Institute's Empire Center has created a new Web site to shine light on the costs associated with public employee contracts and benefits, and how they impact New York's high tax burden and cost of doing business. The Web site will be updated daily and promises to be a valuable resource for those interested in keeping track of how our money is being spent.
