Monday, March 28, 2011

Flavored Malt Beverages Under Attack

The attack on alcoholic drinks young people like continues in the New York Senate, as a proposal (SB 4221) from Sen. Jeff Klein to limit the sale of flavored malt beverages to liquor stores was introduced on Wednesday. This change in venue is allegedly predicated on the fact that flavored malt beverages (FMBs) are “marketed” to and primarily used by people between the ages of 14 to 25.
The bill’s memo suggests that shifting FMBs out of grocery and convenience stores will limit the underage people that purchase them, on the basis that you can only enter a liquor store if you’re 21.
Klein also argues that this proposal could be a revenue raiser for the state, as FMBs currently qualify as beer and thus have a lower excise tax rate than the higher rate for liquor.
The bill would apply to any beverages with a combination of 6 percent alcohol by volume and one percent sugar that also include fruit flavor additives. It would be implemented 180 days after it shall become law so that convenience and grocery stores can liquidate their supplies.

New Count for NYC Please

The release of last week's census data for New York City has some officials from the area calling foul about what they consider under reporting of growth from 2000 to 2010. State Senator Malcolm Smith, D-Queens, joined that chorus on Sunday with a statement in favor of a new count.
"I support Senator Schumer's request for an investigation into the U.S. Census count and I will support Mayor Bloomberg's lawsuit against the U.S. Census if he chooses to file one," said Smith.
"For the U.S. Census numbers to suggest that the Borough has only seen a .1 percent population increase over the last decade is nothing short of ridiculous, and an insult to the thousands of people who have relocated to Queens and made it their home."
He noted that Queens is the 10th most populated county in the entire nation and characterized it as an area of growth over the last ten years.
Below is a video of State Senator Mike Gianaris, D-Queens, calling for a recount with other legislative leaders from the city.

Sunday, March 27, 2011

Skelos on the Budget

Senator Dean Skelos had this to statement about the state's three-way budget agreement:

"This budget agreement keeps our Senate Republican commitment to reduce spending, cut taxes and empower the private sector to create jobs, and will begin to put New York on the path to fiscal recovery. By working together to reach consensus on a responsible spending plan that eliminates a $10 billion deficit without raising taxes, we have tightened our belt and protected middle-class families in every region of this State. I am particularly pleased with Governor Cuomo's commitment to making UB2020 a reality, which will bring jobs and hope to Western New York, as well as improvements to the other university centers, which are important priorities of our Senate Republican conference. Today's developments ensure we are moving full speed ahead to an on-time budget."


Nothing in here about the governor's win on the regional economic development councils or the prison closures.

Reforms in NY Budget

The three-way budget agreement was announced on Sunday afternoon. Below are a series of policy reforms included in the proposal that were touted by Gov. Andrew Cuomo's office.


Policy reforms in the 2011-2012 budget include:
• •Changing Permanent Law and Provides 2-Year Appropriations and Caps for Education and Medicaid: Education will be increased at a rate of personal income growth next year – roughly 4 percent. Medicaid will be increased at a rate tied to healthcare CPI which is roughly 4 percent. Together, these actions reduce next year's deficit from about $15 billion to about $2 billion and change decades-old practice of overspending.

• •Redesigning the Medicaid System: The budget includes a global cap on State Medicaid expenditures of approximately $15 billion and implementation of the majority of recommendations by the Medicaid Redesign Team (MRT) to redesign and restructure the Medicaid program to be more efficient and get better results for patients. There are reallocations within the MRT cap that reduce some areas while targeting increases to others. Among the notable changes: the cap on medical malpractice is not included and EPIC is increased by $22 million. The MRT reduction of $2.8 billion and the overall spending cap to the state will be enforced by the Department of Health's "superpower" provision, whereby the commissioner has authority to make reductions during the year to enforce the cap.
• •Creating Regional Economic Development Councils: The budget establishes 10 Regional Economic Development Councils, chaired by Lieutenant Governor Robert Duffy. These councils will create a region-based approach to allocate economic development funds to speed up the creation of jobs. They will act as one-stop shop for all State-supported economic development and business assistance programs in each region, and will be supported with $130 million in capital that is reprogrammed from existing resources.
• •Creating the Recharge NY Power Program: Recharge New York will enhance and make permanent the current Power for Jobs Program that will significantly boost the state's economy by creating and maintaining hundreds of thousands of jobs. Recharge New York will improve upon the existing program by opening it to new participants and allocating a blend of stable, low-cost hydropower and market power for use by businesses that seek to grow and create jobs in New York state.
• •Authorizing the SAGE Commission: The budget authorizes Governor Cuomo's Spending and Government Efficiency (SAGE) Commission to reduce the number of agencies, authorities, and commissions by 20 percent. Currently, the consolidation of Parole and Corrections will save $16.8 million, the merging of NYSTAR into Department of Economic Development will save $1.9 million, and the merging of Consumer Protection into the Department of State will save $500,000.
• •Creating the Department of Financial Services: The budget merges the state's Banking and Insurance Departments into a new Department of Financial Services.
• •Authorizing Governor to Close Prisons: The state will eliminate 3,700 prison beds throughout New York at the sole discretion of the administration in consultation with the Legislature.
• •UB 2020: The Governor has also agreed to hold a summit with stakeholders to discuss how to make UB 2020 a reality.
• •Reforming the Juvenile Justice System: The budget includes significant reforms of the state's juvenile justice system by encouraging greater use of community-based alternatives, downsizing the state juvenile facilities system by more than 30 percent, and investing resources into enhanced services for juveniles that remain in OCFS custody.
• •Creating New Education Performance and Efficiency Grants: The budget enacts initiatives Governor Cuomo proposed to make districts more efficient and improve student performance. Funds totaling $500 million will be awarded competitively to districts that demonstrate significant improvements in student performance and to districts that undertake long term structural changes to reduce costs and improve efficiency. The budget also restores $270 million in education related funding.
• •Improving the Excelsior Jobs Program: As proposed in the executive budget, the budget strengthens the Excelsior Jobs Program, which was created in 2010 to provide job creation and investment tax credit incentives to businesses in targeted industries.

Senate Finance to Consider Power Authority Nominee

The nomination of John S. Dyson, as the trustee of the Power Authority of the
State of New York will be considered by the Senate Finance Committee on Monday, after the committee previously put off addressing his nomination last week.
Currently, Dyson is Chairman of Millbrook Capital Management, Inc., which is an investment firm whose activities include managing private equity investments and a stock investment fund. Prior to that he was the chairman of New York City's Council of Economic Advisors. Dyson's experience with the power authority includes a 6 year stint as its Chairman from 1979 to 1985.
Upon announcing Dyson to the post, Cuomo contended that Dyson had deep knowledge of energy issues and understood economic development. He said, "New Yorkers can have confidence that with John on the team, energy delivery and allocation will be in good hands."
Below is a video of Dyson being questioned before the Senate Energy and Telecommunications Committee on Tuesday, which advanced the nomination to the Finance Committee.

Ball Blasts NY Dream Act

In response to a proposal in the state legislature that would resurrect most of the provisions of the failed federal Dream Act, Republican Senator Greg Ball has characterized it as a major victory for terrorists.
Ball, who is Chairman of the Senate Homeland Security, Veterans and Military Affairs Committee, issued a statement on Thursday where he laid out the alleged security risks of the bill (SB 4179), which he labled as “a national security nightmare that should formally be renamed the ‘Terrorist Empowerment Act’.”
He argues that some requirements placed on DMV employees as the result of this bill would make it necessary for them to become experts at verifying every national identity card or voter card in the world.
Seizing on the driver's license portion of the proposal, which was a major controversy for former Gov. Elliot Spitzer, Ball said it would provide illegal identity documents to potential terrorists. "This is not about immigration; this is about security," he said.
Ball explained how the 19 terrorists responsible for 9/11 used over 300 fake IDs that were made with driver’s licenses and other documents.
In his statement, Ball did not address issues of financial aid, employment opportunities and health insurance coverage that are offered as incentives in the bill. Additionally, on Capital Tonight, Democratic Senator Dan Squadron laughed off Ball's rhetoric about the bill. All of this is probably a moot point, though, because the Dream Act will go nowhere in the Republican controlled Senate.

Saturday, March 26, 2011

Pennies for Parks

The question of "paper or plastic" will be replaced by one penny or no penny if a proposal in the New York Legislature becomes law. A proposal in the senate (SB 4277) from Democrat Jose Serrano and from Democrat Steve Englebright in the Assembly (AB 6272), would impose a one penny tax on single use carryout plastic bags to help fund state parks and historic sites.
The idea behind these bills is that the under-funded state park systems would benefit from an additional source of revenue for capital expenditures, which could be realized by charging a one cent per bag tax. Their bill memo's argue that the state park system's are already in need of funds, which justifies this nominal fee.
This proposal has the strong support of the Open Space Institute, which is looking for any source of revenue in the wake of the $17 million in proposed cuts by Gov. Andrew Cuomo's budget. Erik Kulleseid, the director of the Alliance for New York State Parks, projected that the tax could generate $60 million a year and deter people from using plastic bags that end up littering landfills.

Friday, March 25, 2011

LaValle Wants Nuclear Disaster Plan

In the wake of recent concerns about nuclear safety, both abroad and in New York, Republican Senator Ken LaValle has introduced a bill (SB 4258) that would authorize the state Emergency Management Office to undertake a review of existing disaster plans for nuclear power plants in New York and then develop site specific disaster preparedness plans.
LaValle's bill argues that the threat to the nuclear power plants is greater than ever before, with a clear probability that nuclear power plants could be subject to a terrorist attack or damage from natural disaster. His memo alleges that existing disaster plans are not adequate, as they fail to prepare for a terrorist attack.
Strangely enough, though, this bill doesn't seem to focus on seismic risk, which was the danger that Cuomo's stressed during a recent press conference.
This proposal has been floated by LaValle in the past, but with no progress. The same is true in the Assembly, where the bill has been carried by Assembly Member Fred Thiele.

Thursday, March 24, 2011

Census Data Shows Taxes Are Too High?

The coalition of businesses represented by Unshackle Upstate are treating the state's census data as proof that the state needs a tax cap and mandate relief.
"Unfortunately, the 2010 Census data published today shows what Unshackle Upstate has been talking since our creation in 2006 – that Albany's policies have made Upstate New York a less hospitable place to live, work, raise a family and create jobs. And people are voting with their feet," said Brian Sampson, executive director of Unshackle Upstate.
He suggested that the state needs to duplicate the effort in the mid-1970s that took place in New York City to save their future. Sampson said, "Now it's time for today's elected officials to do the same for Upstate New York. Our leaders in Albany must take swift action to enact a 2-percent property tax cap and provide our local governments and schools with real mandate relief."
The property tax cap has already passed the Senate at the 2 percent rate, but has not been addressed by the Assembly.
"By taking action on these critical measure, we can make Upstate New York a place where people want to raise their families and grow their businesses," concluded Sampson.

Krueger Offers Amendments to Senate's Budget Office Bill

Depending on the commotion of the budget process, the Senate is likely to address the creation of a Legislative Budget Office on Monday, which has Democratic Sen. Liz Krueger raising some serious concerns in a letter to Majority Leader Dean Skelos.
In a letter from Tuesday, Krueger expanded on some of the concerns she had espoused earlier that day during a Senate Finance Committee.
During the committee she highlighted the fact that the proposed LBO (SB 4006) was a variation of a proposal she had advanced for years. Additionally, she noted that there could be some constitutional concerns with the bill, because it provides 20 percent of its funding with money from the Division of the Budget.This constitutional concern was echoed by an internal memorandum from the governor's office and by Blair Horner of NYPIRG.
Krueger also stressed language in the bill that was missing, which would allow the Legislature to unilaterally "declare" the budget balanced, instead of relying on generally accepted accounting principles.
In her letter to Skelos, Krueger expanded on her concerns that the LBO wouldn't actually comply with GAAP at all, which is why she endorsed the idea of an independent review board model to ensure certain standards. This proposal (SB 414) was suggested earlier in the year by Krueger, in addition to a bill (SB 445) that would ensure the budget office protected the rights of the minority party.
Strangely enough, though, Krueger voted for the proposal in the Finance Committee, with only Democratic Sen. Bill Perkins not voting aye, as he chose to vote without recommendation.
(Additional reporting by StateWatch reporter Tim Atkins)

Millionaire's Tax a Possibility After the Budget

As Assembly Speaker Sheldon Silver remained relatively mum on Thursday morning about the possibility of a millionaire's tax in the final budget, it appeared to be officially killed when Senate Majority Leader Dean Skelos, R-Rockville Centre, emphatically denied its future existence.
This "read my lips" approach from Skelos comes in the wake of a proposal (SB 4171) from Republican Sen. John Bonacic, which would institute a genuine millionaire's tax for the next two years and provide property tax relief, and remarks from two Republican Senators, including local Senator Roy McDonald, suggesting that they were open to the millionaire's tax.
By Thursday afternoon, Michael Veitch, McDonald's spokesman, had clarified the Senator's position. He said McDonald is not currently considering the millionaire's tax as part of the budget or considering the proposal from Sen. Bonacic. He added that this stance was not the product of any internal pressure from the conference that he was aware of and argued that McDonald's position has remained constant.
“He is an open-minded legislator, so it is something he would consider after the budget is done,” said Veitch.
This is a far cry from the rigid stance of Sen. Hugh Farley, R-Niskayuna, who objected to the Bonacic plan in its theoretical stages.
The proposal from Bonacic and the possibility that it might have some Republican support, has drawn the attention of the Alliance for Quality Education, which is a loud supporter of the millionaire's tax.
"Senator Bonacic stepped to the plate and did the right thing by joining the State Assembly in support of millionaires and billionaires paying they fair share to help fund schools, I believe that privately many of his Republican colleagues agree with him," said Billy Easton, the executive director of AQE.
It remains unclear how the Assembly and Senate versions of the budget will rectify their stark disagreement about how to proceed on the millionaire's tax.

Fed Govt's Nightmare is New York's Dream

A version of the federal government's controversial Dream Act was introduced (SB 4179) on Tuesday into the New York Senate by Democrat Bill Perkins.
The bill provide illegal aliens who entered the country before the age of 16, and have demonstrated a commitment to education public service and strong morals, to have access to financial aid, employment opportunities and health insurance coverage.
There are currently no co-sponsors for this bill, which was very controversial in the federal government and is unlikely to gain any traction in the Republican controlled Senate. No previous version of this proposal exists in the state legislature during the last two year. This proposal is now in the Senate Finance Committee.