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ISSUES and
POLICIES AFFECTING
the FUTURE of NEW YORK
DEBT CEILING
DEAL COULD HIT NYS VERY HARD:
U.S. FUNDS MAKE UP 37% OF NYS REVENUE
by Frank Mauro, Executive Director, Fiscal
Policy Institute
The debt ceiling deal adopted today by the US Senate averted
what could have been an epic disaster, but it sets into motion a
process that is virtually certain to hit state and local government
budgets very hard. This process will be intense and it will
require all who are concerned with the stability and adequacy of state
and local public services to become even more engaged in the federal
budget and policy processes than they have been in recent years.
On average, it is estimated that federal funds account for
about one-third of state budgets. For New York State, over the
course of the last decade, that share has ranged from a low of 30.2% in
2007-08 and a high of 38.2% in 2002-03. During the most recently
completed state fiscal year, which ended on March 31, 2011, federal
funds accounted for 37% of New York's state government revenues.
A table with this data for the period from 1999-2000 through 2010-2011
is attached.
Besides representing a significant share of state budgets,
another important characteristic of federal aid to the states involves
the fact that this aid has increased as a share of state budgets in bad
times and decreased as a share of state budgets in good times. (See the attached
graph) This is due in part to the way in which many federal
safety net programs work but it is also a tribute to the work that led
to the enactment of important "state fiscal relief" packages
in 2003 and 2009. The "automatic stabilizer" aspect of
the American federal system is not as strong as it used to be. It
was greatly diminished, for example, by the conversion of Aid to
Families With Dependent Children (AFDC) to a block grant (Temporary
Assistance for Needy Families or TANF). And it would be undercut
much more if any of the balanced budget amendments and/or spending cap
proposals that are currently being debated at the federal level are
adopted.
(click the image or here for an
enlargement of the chart)
Click here for Federal Aid Trends
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DEAL AVOIDS DEFAULT BUT SETS NATION ON DISTURBING POLICY
COURSE
By Robert Greenstein, President, CBPP
The new debt ceiling agreement will achieve the essential goal
of avoiding a potentially catastrophic default in the days ahead. But
to say that the deal is likely to lead to highly unbalanced results
would be an understatement. The deal places the nation on a disturbing
policy course and sets what may become important precedents that are
cause for serious concern.
Click here to read the full article: CBPP
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U.S. Chamber,
AFL-CIO Urge INFRASTRUCTURE BANK
Bi-Partisan Kerry, Hutchison, Warner BUILD Act
Creates Jobs, Strengthens Competitiveness
WASHINGTON, D.C. - Senators John Kerry
(D-Mass.), Chairman of the Foreign Relations Committee, Kay
Bailey Hutchison (R-Texas), Ranking Member of the
Commerce, Science, and Transportation Committee, and Mark
R. Warner (D-Va.), Member of the Banking, Housing and
Urban Affairs Committee, announced legislation to create an
infrastructure bank that would help close America's widening
infrastructure funding gap, create millions of American jobs in the
next decade, and make the United States more competitive in the 21st
century.
U.S. Chamber of Commerce President and CEO
Thomas J. Donohue and AFL-CIO
President Richard Trumka, who also attended the event,
underscored the unique coalition of business and labor uniting around
this initiative.
Read the entire press release: BANK
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NEW YORK'S HIGHEST COURT TO DECIDE KEY MARTIN
ACT ISSUE
New York's Martin Act permits the Attorney General to prosecute
fraud and deception in connection with the sale of stocks and other
securities. New York's Court of Appeals (the state's highest court) has
ruled that the Attorney General is the only person who may sue under
the Martin Act. Thus, investors may not bring suits for Martin Act
violations.
Click here to read the entire article: MARTIN ACT
BI-PARTISAN LEGISLATION TO REFORM THE MARTIN
ACT
Bill to Bring Accountability To Wall Street
The Institutional Investor Recovery Act, A.6060/S.4497, sponsored by Assemblyman
Rory Lancman (D-Queens) and Senate Deputy Majority
Leader Tom Libous (R-Binghamton), reforms the Martin Act to
allow pension funds to bring actions for damages resulting from
violations of the state's securities laws. The legislation has
been widely covered as an antidote to the complete failure to
hold Wall Street accountable for the financial meltdown of 2008 (the
issue was laid out by Assemblyman Lancman in a Bloomberg News Op-Ed, Wall Street's Sheriff Needs Many More Deputies).
A wide array of organizations are supporting the legislation,
including New York State Comptroller Tom DiNapoli, New York
City Comptroller John C. Liu, BALCONY, and the New York
State AFL-CIO.
"It's been nearly three years after Wall Street sent us
into the greatest recession since the great depression, and almost none
of the wrongdoers have been held accountable or any victims made
whole," said Assemblyman Lancman "New York needs to give its
investors the means to recover some of the tens of billions of dollars
loss caused by these financial shenanigans."
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BALCONY ENDORSES NYS INSURANCE EXCHANGE BILL
BUT STILL WAITING FOR NYS SENATE ACTION
On June 23, 2011, the Assembly passed the Governor's Program
Bill, which would create the New York Health Benefit Exchange, a public
benefit corporation that will serve as a marketplace for the purchase
and sale of qualified health plans in the State of New York.
Federal Health Care
Reform Q&A
The Bill is awaiting
action in the State Senate.
BALCONY Director Lou Gordon endorses the creation of Health Exchanges,
stating, "Our BALCONY members owners of small
businesses, labor unions and advocacy groups have long been in favor of
providing health insurance and care to their employees and
members. In a BALCONY survey more than 80% of
small business owners in New York State indicated that they would offer
health insurance to their employees if they could. New York's small
businesses need to help their workers stay healthy and the insurance
exchanges will provide cost conscious health insurance policies."
On July 11th, the Department of Health and Human Services
proposed a set of regulations for the new Affordable Insurance
Exchanges created by the Affordable Care Act. According to the
proposal, each state will determine how its exchange is set up.
However, all plans must be approved by Health and Human Services before
being implemented. Not included in the released proposal are the
actual federal requirements for exchanges or how the federal government
will maintain the exchanges, raising concerns about how these exchanges
will manage costs.
HHS Patient Protection and Affordable Care Act
Proposed Rules
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NYSUT HAILS THE STATE'S
APPROVAL OF NYSUT'S TEACHER EVALUATION RUBRIC
July 19, 2011
New York State United Teachers welcomed the State Education Department's
inclusion of a NYSUT Innovation Initiative model in its list of
approved rubrics for the new teacher evaluation system. The rubric was
designed by teams of teachers and administrators working in
collaboration. Districts and their local unions from across the
state will choose a rubric from that list in developing their system of
evaluating teachers.
"Once again, collaboration among stakeholders and an
emphasis on the excellent work of practitioners results in the highest
standards that will ultimately lead to student success," said NYSUT
President Richard C. Iannuzzi.
Innovative Initiative
Rubic
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BALCONY ENDORSES THE PASSING
OF THE FREELANCER PAYMENT PROTECTION ACT
The Freelancer Payment Protection Act, which passed the New York State Assembly on
June 20, championed by BALCONY coalition members,The
Freelancers Union, will require the Department of Labor to
protect independent contractors from nonpayment the same way it
protects traditional employees. In 2009, unpaid wages cost New York
freelancers $4.7 billion according to the Freelancers Union.
The Freelancers Union issued the following remarks in
response: "After months of reaching out to legislators about
the Freelancer Payment
Protection Act (S4129/A6698) through in-district meetings, a lobby
day in Albany, and hundreds of calls and emails, the New York State
Assembly passed our bill! This is a historic victory for freelancers
and something that all involved members should be proud of."
Sara Horowitz,
Founder & CEO Freelancers Union
"Protecting Freelancers and assuring payment for work
performed is an important protection for the thousands of New York's
freelance workers. Many of these folks perform valuable work in good
faith for companies, unions, non-profits, and small businesses. Their
invoices should be paid in a timely manner and not be withheld
unreasonably," stated Lou Gordon, BALCONY
director. "We urge passage of this bill by the New York State
Legislature!"
The Senate version of the bill, sponsored by
Daniel Squadron, D-Brooklyn; Marty Golden,
R-Brooklyn; and Andrew Lanza, R-Staten Island, is scheduled to be presented this Fall.
View the FPPA bill
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BALCONY ENDORSES THE NEW
POWER BILL LEGISLATION AS AN INVESTMENT TO CREATE MORE POWER IN NEW
YORK
The Power NY Act of 2011 will encourage investment in clean power
plants, afford communities more opportunities to meaningfully
participate in the siting process, and expand opportunities for
homeowners and businesses to invest in energy efficiency under the
"Green Jobs/Green New York" program.
An Investment to
Create More Power in New York.
On the passage of The Power NY Act on June 24 BALCONY coalition
member
Arthur Kremer, Chairman of NY AREA stated, "A new power plant siting law has
been New York AREA's top legislative priority since 2003 when we were
founded. It will effectively streamline the siting process to
bring new sources of power that will attract billions of investment
dollars to New York State.
http://www.area-alliance.org/index.htm
"It's going to advance the cause of energy efficiency by
making it easier for people to finance energy retrofits to their homes,
whether it's their windows or caulking or insulation," said Dan
Hendricks, spokesman for New York League of
Conservation Voters.
The legislation is also tied to a new provision in the state's
Green Jobs program that would allow homeowners to finance energy
improvements to their homes through their local utility bill.
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