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8/8/2019 The Make New York Work Plan - Full Version
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THE
MAKENEWYORKWORKPLAN
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KAPLOWITZ 2010 | RESTRUCTURING STATE GOVERNMENT
A Comprehensive Plan to Reduce Government Spending and Maximize Efficiency
I. REDUCE STATE SPENDING
New Yorkers can no longer afford to foot the bill for Albanys extravagant spending. For too
long, New Yorks budgets have put forth spending commitments that dramatically outpace
realistic revenue growth. Irresponsible debt practices and profligate spending, coupled with
significant job losses, have severely weakened our financial condition. Since the year 2000, state
spending has increased by over 80 percent, from $73.6 billion in SFY 2000-01 to $133.8 billion
in SFY 2010-11.1 Over the same period, state debt has risen to over $52 billion. The State faces
budget gaps of $30 billion over the next three years, even after closing a budget gap of
approximately $9 billion for the fiscal year beginning April 1, 2010. At the same time, many
localities face severe financial difficulties that will significantly impede their ability to provide
quality public services to our citizens.
These considerable fiscal challenges will require the states leaders to find creative and effective
solutions to reestablish a stable financial footing. A comprehensive and disciplined fiscal policy
will help the state reverse patterns of unsustainable spending, rising debt levels and structural
budgetary imbalances. Drawing on his experience as a financial planner, Mike Kaplowitz will
work hard to implement a series of effective budgetary controls that will finally impose a heavy
dose of financial discipline.
1 Office of the State Comptroller: Comprehensive Annual Financial Report2010, available athttp://www.osc.state.ny.us/finance/index.htm
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Impose a State Spending Cap
A statutory and constitutional spending cap is absolutely necessary to limit the excessive growth
in state spending that has gone unchecked for decades. Limiting spending growth in the State
Operating Fund to the rate of inflation will impose budgetary discipline both in times of
economic prosperity and decline, and force state lawmakers to confine budget priorities within
reasonable expense limits. This is a simple, non-partisan and consistent way to contain reckless
spending.
Freeze Public Sector Hiring and Salary Increases
New York State has one of the largest and fastest growing public sector workforces in the
country, yet the manner in which public services are delivered is sorely lacking in efficiency and
cost-effectiveness. With over 164,000 full-time employees across over 50 state agencies, the
state now spends more than $15 billion on salaries and non-personal services costs. This
represents a significant expense for the state and must be controlled. Contracts for 96 percent of
the State workforce must be renegotiated beginning April 1, 2011. As gubernatorial candidate
Andrew Cuomo has suggested, we must freeze salary increases for state workers for one year as
part of a short-term financial austerity plan.
Cut Down of the Use of Outside Consultants
In SFY 2008-09, at a time when the state was facing severe fiscal constraints, spending on
outside consultants, including support staff, rose to $2.9 billion; a $100 million increase from the
prior fiscal year. That is the equivalent of 23,329 full time consultants working for the state.
Based on reports filed with the New York State Comptroller, the state pays outside consultants
performing professional services an average of $160,719 each annually; 62 percent more than
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public employees doing similar work, including the cost of their benefits. By some estimates,
the state could save between $280 and $480 million annually by replacing about half of the
states expensive private consultants with employees already on the state payroll.2
As State Senator, Mike Kaplowitz would sponsor legislation directing the Division of Budget to
set consultant spending savings targets for each state agency. He would also work to institute a
freeze on new and renewed state agency consultant contracts over $100,000 until a cost-benefit
analysis is completed by the agency and a waiver is approved by the DOB.
Reduce Pension Costs
According to estimates by the Office of the State Comptroller, the cost of public pensions and
health benefits for active and retired public employees will grow from $1.3 billion in 1998-99 to
$6.2 billion in 2013-14 almost a 500 percent increase. Next to public health and education
spending, pension benefits are one of the most significant cost-drivers in the state budget. The
recent pension reforms creating a Tier V for new employees was a step in the right direction, but
did not go nearly far enough. We must re-evaluate what benefits the State provides and to
whom, including increasing employee contributions. We must also concentrate our efforts on
fighting the abuses of the pension system that have been uncovered, especially among employees
near retirement who manipulate overtime schedules to increase retirement benefits. A new Tier
VI would crack down on pension padding and overtime issues that drive up pension costs.
Fix Medicaid
The State of New York faces growing budget gaps in the next several years, and a chief source
of pressure on the State budget is the growth of Medicaid costs. In SFY 2009-10, Medicaid
2http://www.nyspef.org/fact_sheets/2010/reducestatespendingonconsultants.pdf
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spending State, federal, and local totaled over $50 billion, the equivalent of more than one-
third of the States All Funds budget. Between 2009-10 and 2013-14, this total is expected to
grow by 27 percent to $63.5 billion, an average annual increase of nearly seven percent. Over
the same period, the States share of Medicaid costs will increase much faster by 71 percent, an
average annual increase of nearly 18 percent because of the expiry of federal stimulus aid. 3 In
2014, because of the recently enacted federal health care reform law, increased numbers of New
Yorkers are projected to enroll in Medicaid, further increasing State costs. Worse, New York
State spends 69 percent more per beneficiary than the national average.4
The State cannot do an adequate job of managing the increasing number of enrollees and their
associated costs, let alone adjust to the changes contemplated by federal health care reform,
unless it changes the way in which Medicaid manages, delivers and pays for health care. A
fundamental restructuring would be driven by the following imperatives:
A) The State must do a much better job of controlling over-utilization of Medicaid services.
An important element of this is having the State take over responsibility for
administration of Medicaid from the counties. Once the State capped the counties
Medicaid costs, counties lost all incentive to control costs in the program.
B) The State must change the process by which Medicaid sets rates of reimbursement to
health care providers in order to increase the programs capacity to control costs and
improve outcomes.
3 These figures do not reflect the recent extension of the temporary FMAP increase through June, 2011.4 See Carol Kellerman, Citizens Budget Commission recommendations for the fiscal year 2009-10 budget to StateLegislators, (February 02, 2009).
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districts to reduce costs, including personnel costs which account for over 70 percent of school
district expenses.7 School district personnel costs have been growing at a rate of close to six
percent annually. Reducing that growth by half would enable school districts to save
approximately $1 billion annually, while freezing personnel costs would generate approximately
$2 billion in savings from projected growth rates.8
Establish a Statewide Care Coordination Plan for New Yorks Mentally Ill
Care Coordination is a method of strengthening the support networks for New Yorks mentally
ill population. While various baseline support programs are available to adults suffering from
mental illnesses, support networks that focus on long term care and patient stability are
inadequate, which can often result in repeated hospitalizations, incarcerations, homelessness and
potential injury to oneself or others. These negative consequences are not only detrimental to a
patients overall health, but are a serious drain on the states limited resources.
By assigning care coordinators to enrolled members, New Yorks mentally ill will have the
support and assistance of trained professionals who will, among other things:
A) Develop Individualized Service Plans (ISPs) to identify existing state services,
support programs and providers that will help patients in recovery, enhancing
wellness and satisfaction (the ISP is web-based and shared across state-supported
service programs to boost efficiency);
7 New York State Commission on Property Tax Relief,Final Report, (December 1, 2008) pg. 34, available athttp://www.cptr.state.ny.us/reports/CPTRFinalReport_20081201.pdf.8 This is based on the following calculation: Estimates of growth rates from 06-07 and 07-08 from the NYSCommission on Property Tax Reliefs Final Report (pg. 35); Total school spending is assumed to be about $50
billion. Three percent multiplied by 0.7 (for the percent of spending accounted for by personnel costs) producessavings of $1.05 billion on a $50 billion base spending level.
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B) Use best efforts to provide or arrange for desired services and support programs;
C) Ensure that services are being provided as identified by the ISP; and
D) Support the ISP as the single plan for service delivery.
As a Westchester County Legislator, Mike Kaplowitz spearheaded the effort to establish
Westchesters first Care Coordination program under the countys Department of Community
Mental Health.9 Within its first year, the program significantly reduced patient stays in State
hospitals, days incarcerated, emergency room visits and rates of homelessness. The reduced
strain on secondary government services resulted in a fiscal savings of over $1 million in
Westchester County, from only 48 enrollees in the first year of the program.
As State Senator, Mike Kaplowitz would work collaboratively with officials from the New York
State Department of Mental Health to implement a statewide Care Coordination plan for the
more than 500,000 New Yorkers who are served by New Yorks mental healthcare system each
year. By expanding Westchesters successful model statewide, projected savings could exceed
$20,000,00010, and the long term health and wellness of our mentally ill population would be
dramatically improved.
9http://mentalhealth.westchestergov.com/index.php?option=com_content&task=view&id=808&Itemid=1450.10 This rough calculation aggregates Westchester Countys savings figures as a result of the Care Coordination
program ($1.1 million) as a function of the countys share of New York States overall population (4.86%). $1.1million/0.0486 = $22,633,745.
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II. RESTRUCTURING STATE GOVERNMENT TO MAXIMIZE EFFICIENCY
New Yorks State and local governments have become too big, too expensive, and too
ineffective. There are countless State agencies, boards, commissions, departments, councils,
divisions, offices, task forces and public authorities that collectively make up a slow, antiquated,
bureaucratic state government apparatus that continuously struggles to meet the needs of our
citizens with efficiency. New Yorks overlapping system of local government today consists of
more than 10,500 governmental entities, while the proliferation of special taxing jurisdictions
and other specialized administrative entities has needlessly disjointed service delivery at the local
level. This oversized and inefficient bureaucracy is not only duplicative and inefficient, but also
extraordinarily expensive.
Mike Kaplowitz will make it a priority to restructure and rightsize the existing bureaucratic mess
by:
A) Targeting structural waste and inefficiency in state government;
B) Reducing and consolidating the number of local governments and special taxing
jurisdictions throughout the state;
C) Consolidating New Yorks various economic development agencies;
D) Holding Industrial Development Agencies accountable; and
E) Continuing the effort to rein in New Yorks public authorities.
Reducing Structural Waste and Inefficiency
With the proliferation of state agencies, government is no longer operating as a single, integrated
unit working collaboratively and efficiently to accomplish the various public policy goals of the
State. Agencies have their own modes of organization and procedures, their own bureaucracy
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and their own constituencies who are extremely reluctant to change. Consider, for example, the
Department of Health. In just this one single agency, the Legislature has inserted at least 87
statutorily created administrative units, including 46 councils, 17 boards, 6 institutes, 6
committees, 5 facilities, 2 task forces, 2 advisory panels and a working group. In total, the
Executive Department now consists of at least 75 administrative units, almost all frozen in
statute.11
As State Senator, Mike Kaplowitz will carefully assess the performance and effectiveness of
every state entity and work to streamline their functions through the consolidation and leveraging
of shared resources. Eliminating this inefficiency and waste will save taxpayers hundreds of
millions of dollars.
Local Government Consolidation
Government at the local level in New York is rife with excessive redundancies, duplicative
service delivery and overlapping responsibilities. Currently, there are more than 10,500 local
governmental entities including 62 counties, 932 towns, 555 villages and more than 7,000
special districts all of which are imposing taxes and fees on struggling New York individuals
and families.12 Despite the important public services provided by many of these local
government entities, as a recent report from the Comptrollers Office explained, [o]ur municipal
structure is not only highly complex, [but] it no longer provides a rational differentiation based
on population densities and settlement patterns, as it did when the classifications were originally
11 Cuomo 2010, The New NY Agenda: A Plan for Action; pg. 66.12 There is no definitive study on how many local governments New York actually has. The Department of State, theOffice of the State Comptroller and most recently, the New York State Commission on Local GovernmentEfficiency and Competitiveness (known as the Lundine Commission) have arrived at different numbers. A survey
by the New York State Attorney Generals Office found 10,521 total local governments. A breakdown of thatnumber can be found at http://www.ag.ny.gov/bureaus/legislative/governmentconsolidation/govs.html.
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made.13 Moreover, New Yorks ballooning local government structure is responsible for much
of the high local tax burden that New Yorkers have been shouldering for too long.
The Government Reorganization and Citizen Empowerment Act, authored by Attorney General
Andrew Cuomo, was a critical first step in the states effort to eliminate legal barriers to
government mergers and empower citizens to reorganize their local governments by dissolving
or merging the many taxing layers that have contributed to New Yorks high local tax burden
(the highest in the country). To ensure that local governments and citizens maximize the
potential for efficiency and consolidation offered by this act, Mike Kaplowitz will work to
provide adequate financial incentives and reorganizational expertise to all local governments.
Additionally, he will continue efforts to eliminate remaining legal barriers to the integration and
merger of municipal services.
Consolidation of Economic Development Agencies
Currently, economic development efforts are balkanized across as many as 28 separate
agencies14 and hundreds of public entities with economic development missions, including over
600 local development corporations, 115 local industrial development agencies, 72 local Empire
Zone boards, 50 business improvement districts, 49 urban renewal agencies and community
development agencies and 10 regional planning councils.15
13 Office of the New York State Comptroller, Outdated Municipal Structures, available athttp://www.osc.state.ny.us/localgov/pubs/research/munistructures.pdf.14 See A.T. Kearney,Delivering on the Promise of New York State: A Strategy for Growth & Revitalization 12(2007) report prepared for Empire State Development, available at http://www.nycp.org/publications/2007 0717ATKearney report.pdf.15 Cuomo 2010, The New NY Agenda: A Plan for Action; pg. 97.
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This bloated economic development apparatus results in overlap, duplication and waste, and acts
as an entrenched impediment to giving the public the best service at the lowest cost. Mike
Kaplowitz, in working to better position New York State to lead our economic recovery, will
support legislation that consolidates the efforts and responsibilities of these disparate economic
development entities under the auspices of a single State Office of Economic Development.
Restore Accountability of Industrial Development Agencies (IDAs)
A pattern of poor performance and unfulfilled job creation promises by Industrial Development
Agencies (IDAs) and qualifying IDA-partner developers has become clear, suggesting that
broad-based reforms are urgently necessary to ensure that IDA subsidies fulfill their mission of
creating jobs and stimulating economic growth. Between the 116 IDAs currently operating in
New York State, nearly $400 million in annual tax exemptions are offered in support of local
economic development initiatives. But an analysis of the most recent data reported by IDAs to
the NYS Comptrollers Office indicates that New Yorkers are not getting their moneys worth.
IDAs provided $385 million in tax exemptions in 2005 which resulted in a net loss of $266
million in property taxes to local governments, including $136 million in lost revenue to school
boards.16
Subsidized projects only managed to deliver 36% of the total number of jobs promised,
and almost 70% of IDAs statewide subsidized companies that actually cut jobs.17
Because these benefits implicate the power of the State and come at the expense of the State and
local coffers, it is important to carefully monitor and control IDA operations to ensure that IDA-
supported projects deliver the benefits that their proponents promise. At a time when local
16 New York Office of the State Comptroller. IDAs Project Approval, Evaluation, and Monitoring Efforts. (2006)17 Ibid, pg. 5.
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municipalities and school districts are shouldering the burden of increasing costs associated with
Medicaid, pension obligations, schooling and an eroding tax base, it is crucial that taxpayers hold
IDAs and the projects they support accountable. Specific reforms that Mike Kaplowitz will
work to implement include:
A)Improved Standards for determining who receives IDA assistance. Current law does
not require IDAs to set basic standards for the projects that are subsidized and the
jobs that are created. Mike Kaplowitz will ensure that IDAs limit their subsidies to
projects that provide quality jobs and fair wages that will sustain New York families,
build our local economies, and make a positive impact on our communities and our
environment.
B) GreaterTransparency in the decision-making and reporting processes of IDAs to
provide the communities that are affected with the necessary information to advocate
for their needs, or raise concerns about negative impacts. Stronger reporting
requirements for subsidy recipients will also make it easier for communities to keep
track of a developers activities and evaluate their performance.
C) Stronger Accountability measures that will hold businesses accountable for their poor
performance in meeting job creation and economic development goals. By working to
institute clawback procedures, localities will be authorized to cancel, reduce or
recover a subsidy when the recipient fails to deliver the promised benefits or violates
its contractual obligations.
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Public AuthoritiesReform
New Yorks public authorities were originally created in 1921 to circumvent the Constitutional
requirement of voter approval of State debt.18 After decades of exponential growth, the State
now has several hundred public authorities created either by statute or as subsidiaries of other
authorities.19 Public authorities perform a multitude of services previously provided through
State agencies or local governments, including economic development, transportation
infrastructure development and housing.
Sadly, like the increasingly complex web of state agencies, public authorities have proliferated to
an extent that has compromised their effectiveness. Moreover, authorities are responsible for
approximately 93 percent of the States indebtedness (over $48 billion as of 2009).20 The
bloated size and inefficiency of public authorities, as well as their steep price tag, demand
reform.
As State Senator, Mike Kaplowitz will work to enhance existing reform efforts to increase
transparency, strengthen accountability measures, and improve debt management. Created
pursuant to the Public Authorities Reform Act of 2009, the independent Authorities Budget
Office (ABO) has collected, analyzed and disseminated to the public a plethora of information
on the finances and operations of state and local public authorities. With this influx of new
information, the Legislature is better positioned to exercise its oversight and enforcement powers
under state law to institute best management practices, streamline operations, boost efficiency,
and ensure that New Yorkers are getting their moneys worth.
18 See N.Y. Const. Art. 7, Sec. 11 (prohibiting the State from contracting a debt unless the debt shall be authorizedfor some single work or purpose by the people at a general election).19 Lynn Wilson and Clayton Eichelberger,New York State Public Authority Reform: Where We Have Come Fromand Where We Need to Go, 11 N.Y.S.B.A. Govt, Law and Policy Journal. 15-16 (2009).20 See Scott Fein, Introduction: Public Authority Reform, 11 N.Y.S.B.A. Govt, Law and Policy Journal; pg. 5(2009).
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Specific reforms include:
A) Statutory limit on the creation of subsidiaries within existing state or local public
authorities. Certain provisions of the 2009 Public Authorities Reform Act addressed the
excessive creation of subsidiaries, but stronger provisions are necessary to ensure that
any newly-created subsidiaries are absolutely necessary, and that their anticipated
purpose does not fall under the scope of the operational responsibilities of another
authority or existing state agency.
B) Lower the monetary threshold of authority contracts that must be approved by the State
Comptroller from $1 million to $500,000.
C) Institute an annual debt ceiling for public authorities. New state authority debt issued in
2009 alone amounted to over $17.7 billion. The state can no longer be expected to meet
the unsustainably high service payments on this debt.
III. BUDGET REFORMSNew York State is in dire need of a comprehensive reform plan to fix the States broken budget
process and give New Yorkers a fiscally responsible state spending plan. For decades, Albany
has ignored the need for wholesale changes to the budget process, instead opting for quick fix
gimmicks on the back of misguided assumptions. As State Senator, Mike Kaplowitz will work
to implement wholesale changes to the budget process, helping to establish a long-term,
sustainable financial planning model, stricter accounting principles, and stringent standards of
accountability for State-financed programs and services through the use of performance-based
budgeting (a budgeting concept that links funding decisions to program results).
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GAAP Budgeting
It is time for New York to shed its reliance on fiscal gimmickry and manipulation by requiring
both the Executive Budget and the Enacted Budget to be balanced according to Generally
Accepted Accounting Principles (instead of the current cash-basis accounting method), which
will fundamentally realign recurring spending with recurring revenue to restore fiscal stability.
Mike Kaplowitz will also insist on reforms that will mandate that allstate operating funds be
balanced each fiscal year, not merely the General fund.
Mandate an Annual Tax ExpenditureR
eport
This would require the Executive to submit to the Legislature an Annual Tax Expenditure
Report that would list a cost-benefit analysis of all of New Yorks 380-plus tax break programs,
so that we may focus our efforts on strengthening the programs that work, and ending the
programs which waste hundreds of millions of dollars in revenue.
Performance-Based Budgeting
In February 2009, thePew Center on the States issued a report on effective performance-driven
and data-based budgeting methods. According to the Pew Center, states that are successful in
such endeavors are those that combine short-term strategies to balance their budgets with long-
term fiscal and management investments to serve vital public needs and position themselves for
the future.21 In the same report, the Pew Center singled out New York as a state whose inability
to budget for performance is a weakness.
21 The Pew Center on the States, Trade-OffTime: How Four States Continue to Deliver, Feb. 2009.
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While some New York State agencies report program performance information in their strategic
plans, performance information does not appear to be well integrated in the decision-making
process [of the budget].22 For example, New York currently does not:
y Define clear, statewide outcome goals as part of a long-term strategic framework;
y Have a uniform system of soliciting performance information from agencies or programs;
y Give instructions on how to assemble such information; or
y Include performance information or connect funding determinations to performance
measures or targets in either the Governors proposed budget or the legislatures
appropriations bills.
New Yorks budget process is best described as incremental budgeting. In other words, an
agencys budget is primarily based on the amount it was allocated the previous year, although
broad economic or political changes (such as recessions or changes in administration) can result
in an agency requesting and/or receiving more or less than they did the year before. Incremental
budgeting has its advantages; it is a very stable process with few, if any, great changes in funding
from year to year. However, it often encourages wasteful or unnecessary spending to maintain
or increase allocations in future budgets, and creates no incentives to reduce costs. Over time,
budget allocations can disconnect from statewide priorities, leading to ineffective or relatively
low priority legacy programs getting more money than newer, more effective programs.
22 The Pew Center on the States, Government Performance Project: New York, 2008.
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New York can meet the standard of smart, effective, and transparent budgeting that has been set
by the best practices of other states by re-evaluating the way it budgets. New York should
consider adopting budgeting methods that:
A) Build a long-term strategic framework for the state, with clearly defined outcome goals;
B) Refocus agency missions and performance measures to chart progress toward those goals;
C) Use the information gathered to better inform the budget process, improve state program
performance, and engage the public.
In short, New York should consider adopting a system of performance-based budgeting.
Who Uses Performance-Based Budgeting?
The federal government adopted the Government Performance and Results Act (GPRA) in 1993,
a form of performance-budgeting which required all federal agencies to develop five-year
strategic plans setting out long-term goals and objectives and to submit annual performance
reports with their budget requests. A review of the GPRA by the General Accounting Office
(GAO) found that the act established a solid foundation of results-oriented performance
planning, measurement, and reporting in the federal government.23
A 2010 report by the Center
for American Progress notes, however, that in practice [the GPRA] has led more to the
preparation of reams of paper than clarity on the outcomes agencies are trying to achieve.24
President Obama has recognized these deficiencies and is addressing them by asking his
23 U.S. GAO, GPRA Has Established a Solid Foundation for Achieving Greater Results, Mar. 2004.24 Center for American Progress, Golden Goals for Government Performance, Feb. 2010.
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agencies to work towards and report on a targeted set of high-priority objectives, rather than just
producing a litany of agency activities.
Virtually every state has adopted a requirement for some form of measuring agency or program
results, a crucial first step in implementing a system of performance-budgeting. New York is not
one of them. Most states have requirements for measuring performance that do not tie the
measurements to statewide goals or use the information for smarter budgeting. However, there
are a handful of states that lead the way in performance-budgeting best practices. Virginia has
an acclaimed system of legislating for results that includes a bipartisan and multi-branch
approach to setting statewide goals and publicizing progress towards those goals.
As State Senator, Mike Kaplowitz will make the design and implementation of a comprehensive
performance-based budgeting process a top priority. With a state budget exceeding $133 billion,
it is imperative that each budget allocation is thoroughly evaluated and measured against the
outcomes of that spending.
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KAPLOWITZ 2010 | TAX RELIEF &ECONOMIC DEVELOPMENT
Delivering MeaningfulTax Relief to New Yorks Individuals and Businesses
I. PROPERTY TAX RELIEF
Property taxes across New York State have reached unsustainably high levels, cutting deeply
into the bottom lines of individuals, families and businesses, and stunting our economic growth.
From 1998 to 2008, local property taxes in New York grew by 73 percent, more than twice the
rate of inflation in that period.
25
Excluding New York City, property taxes per capita are $1,634
73 percent above the national average.26 Closer to home, in absolute dollars, the level of
property taxes for an average household in Westchester County is ranked highest in the nation.27
Westchester and Putnam Counties are also both listed in the top ten highest taxed counties in the
nation as a percentage of household income.28 Whether it is property tax amounts, property tax
rates or property tax as a percentage of household income, residents in the 40th State Senate
district pay some of the highest property taxes in the country. What is worse, not only is this
property tax burden exceedingly high and rising quickly, but it is also increasingly unaffordable.
The growth rate in property tax levels far exceeds the growth rate of wages in New York. While
property taxes have increased by a total of approximately 54 percent since the year 2000, wages
have only risen by about 26 percent.29 This clearly underscores how unaffordable property tax
25 NYS Office of the State Comptroller,Financial Condition Report 2009, available athttp://www.osc.state.ny.us/finance/finreports/fcr09.pdf.26 NYS Commission on Property Tax Relief,Final Report 2008, available athttp://www.cptr.state.ny.us/reports/CPTRFinalReport_20081201.pdf27See Francesca Levy, Where Americans Pay Most in Property Taxes Forbes (January 15, 2010), available athttp://www.forbes.com/2010/01/15/propertytaxes-high-lifestyle-real-estate-counties-assessmenttaxes.html.28 NYS Commission on Property Tax Relief,Final Report 2008, pg. 22.29 Ibid, pg. 24.
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bills have become for the average New York family. Rising property taxes also create a
competitive disadvantage for New Yorks businesses, encouraging them to flee the state and
discouraging out-of-state businesses and new industries from locating here. Unsurprisingly, no
issue is more important to the residents of the Hudson Valley than reining in this unaffordable
tax burden.30
Victims of Unsustainable Property TaxLevels
y Low-Income Households the regressive nature of our property tax system unfairly
shackles low-income homeowners and renters; those among us with the lowest incomes
are most likely to pay the highest percentage of their income in property taxes.
y Seniors on FixedIncomes Many seniors, who made the decision to buy their house
perhaps decades ago, are now victimized by property tax bills that have practically
doubled every ten years. Those who are house rich, income limited face a
disproportionately high property tax burden.
y Small Businesses small businesses are extremely sensitive to overhead costs, and
property taxes represent a huge slice of these costs (whether directly, or indirectly
through rent). For many businesses, large and small, the property tax represents the
largest business tax (and, in contrast to the corporate franchise tax, property taxes must be
paid even when the business is losing money). Excessively high property taxes and sharp
30Important Note: New York is an average tax state when looking only at state taxes (i.e. it is only once we includelocal taxes that our overall tax rate becomes disproportionately high compared to other states). In fact, New Yorktaxes per $100 of personal income actually declined from $7.39 in 1977 to $7.01 in 2007. New Yorks state taxrank declined from 10th highest in 1977, to 21st highest in 2007. And finally, New Yorks tax burden as measured
by the ratio of state taxes to income was only one cent above the national average in 2007. See, 2010-11 ExecutiveBudget,Economic and Revenue Outlook, available athttp://publications.budget.state.ny.us/eBudget1011/ExecutiveBudget.html.
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increases from year to year greatly hamper the competitiveness of New Yorks business
community.
y Middle-Class Wage-Earners Individuals and families trying to get by on an average
wage, including our nurses, service workers, construction workers and first responders,
rarely see their incomes double in a decade. They are fortunate if their incomes rise 3 to
4 percent per year, while tax growth can equal over 7 percent per year.
y Young Families Young families and first-time home buyers are forced away from too
many homes in too many good school districts because they are unaffordable.
y New York State as a Whole Due in great part to New Yorks crushing tax burden, many
people are leaving the state to find better jobs or a lower cost of living elsewhere. This
further depletes New Yorks tax base a drives tax rates even higher for those residents
that remain, resulting in a negative feedback loop of economic stagnation and decline.
Reasons for New Yorks High Property Tax Burden
When evaluating New Yorks colossal property tax burden, it is important to note that school
property taxes represent the greatest share of the property tax levy. In fact, outside of New York
City, school property taxes amount to 62 percent of total property taxes.31 School district tax
levies are also increasing at a much swifter pace than the other categories of local taxation,
though it is unclear whether this growth is warranted. It is telling that property tax collection by
school districts rose 31.8 percent from 1993-2006, while student enrollment grew by only 4.8
31 Total property taxes have four components; school taxes (62 percent), county taxes (17 percent), municipal taxes(14 percent) and special district taxes (7 percent).
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percent over the same period.32 What is clear is that any comprehensive effort to provide New
York homeowners with meaningful property tax relief will require a close examination of the
factors driving our education spending to new heights each year.
New York spends more per student on primary and secondary education than any other state - an
estimated $18,768 per pupil in the 2008-09 school year.33 The growth in New Yorks education
spending is also comparatively high; New Yorks per pupil spending from 1999 to 2006
increased at a compound annual growth rate of 6.6 percent, substantially higher than the national
average of 4.8 percent.
Providing a world-class education to every student will continually be a top priority for state
lawmakers. But as Alan Lubin, former Executive Vice President of New York State United
Teachers, stated aptly, its not whether we pay for education; its whether we pay wisely for
education.
Local governments face cost pressures as well that drive up their portion of the property tax bill,
and this can be attributed to the complex web of 10,000-plus local government entities
throughout the state, all with separate and distinct taxing authority. It is no wonder property
taxes have increased unabated with such a superfluous arrangement. Unfunded mandates
imposed by the State have profound fiscal implications for local governments, and certain
contracting and procurement regulations unnecessarily impede local governments ability to
capture potential cost savings.
32 Nelson A. Rockefeller Institute of Government, The Property Tax in New York State Condition Report preparedfor the Education Finance Research Consortium, December 2008.33 This figure excludes school districts in New York City and the four other cities with dependent school districts.
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Reining in Education Spending
Controlling our education spending must be a central component of any long-term property tax
relief strategy. While New Yorkers remain committed to generously funding our childrens
education, we are also frustrated with government mandates that drive up costs. Some solutions
to mitigate unnecessary school costs include34:
y Permit schools to engage in shared transportation services and piggyback contracts -
this would allow school districts to share certain service contracts, such as private
transportation contracts for pupils outside of the district.
y Mandate Review Process increasing transparency and feedback in the Education
Departments proposed regulations so that local concerns are heard and fiscal impacts
more carefully considered.
y Pre-Kindergarten Flexibility provides flexibility in the use of pre-kindergarten funds
so that programs can use otherwise unspent money on needed expenses like pupil
transportation.
y Paperwork Reduction working with, and if needed, requiring the Education
Department to create an electronic filing system to eliminate duplicative requirements
that waste time, money and natural resources.
y Wicks Reform for School Districts Outdated contract requirements for public works
projects drive up costs and unnecessarily delay project completion. By repealing the
Wicks Law and relieving these administrative hurdles for school district construction
projects, $200 million in capital costs could be saved.
34 A more detailed discussion of potential cost savings to be realized in education can be found in the followingchapter entitled Restructuring State Government.
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ReducingLocal Government Costs
Governor Paterson proposed a four-year moratorium on unfunded legislative mandates as part of
his 2010-11 budget to help keep property taxes down and ease the burden on local governments
during an unprecedented fiscal crisis. The Governor also proposed long overdue reforms to the
Wicks Law to lift contracting restrictions that increase costs for school districts and property
taxpayers. In total, the Governor's mandate reform agenda included more than 100 mandate
reform initiatives that are expected to provide savings to local governments of nearly $1 billion
over the next three years, with the potential for billions of dollars in savings in future years.
Along with a series of statutory initiatives, many of the Governor's reforms are the result of the
Executive Order No.17 mandate review process led by his Office of Taxpayer Accountability.
As State Senator, Mike Kaplowitz would strongly consider these and other major reforms,
including:
y Pension Reform for Public Employees Pension systems are crippling states budgets
across the county, and New York is no exception. We need to reevaluate our benefits
system, and should seriously consider converting to a defined-contribution system and
modifying post-employment health benefits.
y Moratorium on Unfunded Mandates - Legislative proposals and proposed regulations
must undergo thorough fiscal impact analyses to ensure that they do not have a hidden
fiscal impact that will force local governments to bear a greater burden, and there must be
a transparent process that involves local governments in assessing legislative and
regulatory impacts. Right now the Governor has imposed an executive order that requires
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executive agencies to undergo an evaluation process in considering the fiscal impact of
proposed regulations; this does not affect the Legislature or Education Department or
Judiciary, and is only valid if the Executive Order is retained by the next governor.
y Increase ProcurementThresholds for Local Governments - Chap. 494 of 2009 permitted
the increasing of the public works contract competitive bidding threshold from $20,000
to $35,000. This threshold was not previously changed since the early 1990s, and
increasing the threshold for service and purchase contracts would provide localities with
more flexibility to use competitive bidding and save costs Mike Kaplowitz will build on
proposals to increase the public services threshold to $50,000 and doubling the purchase
contracts threshold to $20,000.
y Shared Services & Local Government Piggybacking - Chap. 494 of 2009 also permitted
localities to share some transportation maintenance costs with the State Department of
Transportation, and allowed the shared use of many public health officials. This concept
should be expanded to other fields where officials have overlapping roles in the same
regions, pooling resources and mitigating risk. Proposals include: shared, secure medical
facilities in mens and womens correctional facilities, allowing shared justice court
facilities, consolidation of local districts and justice courts, and consideration of whether
school administrators from smaller districts can assist other smaller schools or districts in
the same area.
y Permitting Electronic Court Appearances By expanding the electronic filing of legal
documents (such as pre-sentence investigations forms) and using teleconferences to make
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court appearances electronically, we can substantially reduce transportation and overtime
costs for corrections officers.
Alleviating County Government Tax Burden
County taxes represent approximately 17 percent of the overall property tax burden for
households, and finding cost efficiencies at the county level is also of vital importance in order to
successfully reduce the overall cost of government and deliver meaningful property tax relief.
One area of spending where considerable savings could be realized is in the Medicaid program.
Across the State, growing Medicaid costs continue to place significant pressure on local fiscal
conditions. In Westchester County alone, Medicaid costs are expected to rise from $204 million
to $222 million by 2013.35
Based on his experience in the Westchester County Legislature, Mike Kaplowitz understands the
challenges that counties face in administering the states bloated Medicaid system, and will be an
effective advocate for reform. The end-goal will be a full state takeover of the Medicaid
program to provide immediate cost relief to county governments, while at the same time allow
the state to streamline oversight and service delivery to better control costs. Alleviating this
significant cost driver will provide county governments with the fiscal relief needed to sustain
property tax reductions.
Property Tax Cap & Circuit Breaker
35http://www.westchestergov.com/pdfs/SOC2010_CEremarks.pdf
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While cost containment strategies at every level of local government (county, municipal and
school district) will allow for a more manageable property tax burden in the long term, relief is
needed immediately. In order to achieve short term relief, the State must simultaneously institute
a property tax cap to limit the growth in tax levies year over year and a circuit breaker model to
tie a households property tax burden to annual income.
In contrast to the types of relief already discussed, property tax caps seek to limit the aggregate
amount of property tax collected. A tax levy cap is the first of several steps in reining in
property tax increases. This would limit the amount by which the total property tax can increase
from year to year. According to theNationalTax Journal, which surveyed the continental 48
states in 2006, 43 states have some form of limitation on real property taxes. Twenty-nine states
have a tax levy cap, and at least 15 allow voters to lift, at least temporarily, or override, this
cap.36
As State Senator, Mike Kaplowitz would advocate for the implementation of a property tax levy
cap. The levy cap would be set at 120 percent of the consumer price index or 4 percent increase,
whichever is lower. This is the same formula that is applied to the current school district
contingency budget that goes into effect when school budgets fail to pass. This formula would
limit property tax increases to manageable levels and allow flexibility for inflation.
Despite the many virtues of a property tax levy cap, it only limits future growth and does nothing
to actually reduce tax rates down to manageable levels. This is why any tax cap must be
accompanied by a circuit breaker formula to directly tie property taxes to the adjusted annual
36Final Report, Commission on Property Tax Relief (2008); pg. 66.
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income of homeowners, not merely the value of their property. The fundamental premise of a
circuit breaker is to effectively target property tax relief to those homeowners who need it most.
Such a design can be accomplished by restoring and enhancing the STAR program and
incorporate a circuit breaker element. circuit breaker concept is not new - current Tax Law has a
low-income Real Property Tax Circuit Breaker for New Yorkers earning under $18,000.37
Nevertheless, this basic level of relief is not nearly substantial enough to provide the relief that is
needed, especially in the lower Hudson Valley.
Legislation is needed that will establish a circuit breaker in the form of a state personal income
tax credit.38 Specifically, Mike Kaplowitz's proposal would call for a tax credit against your
state personal income tax equivalent to 70 percent of the amount of your property tax bill that
exceeds a certain percentage of your annual income. This "certain percentage" varies depending
on your annual income. For example, If your annual gross income is $120k or less, once you
property tax bill exceeds 7 percent of your income, the circuit breaker activates and you would
receive a tax credit equivalent to 70% of the amount by which your tax bill exceeds that 7
percent value.
For example, let's assume your annual income is $67,000. Once your property tax bill exceeds
$4,690 (7% of your income), the circuit breaker activates. Now, for every dollar in property tax
you pay above $4,690, you will receive 70% back in the form of a state income tax credit. So, if
37 Bills have been introduced that would raise the income levels the Real Property Tax Circuit Breaker, includingS.4154 (Montgomery) and S.3728 (LaValle).38 Designing a circuit breaker as a tax credit on ones state personal income tax liability has the ancillary benefit ofstill exposing property taxpayers to the increases in their local tax levy each year, thereby leading them to considermore carefully their position on school budget increases and other local budget matters. If the credit was merelyapplied to their property tax bill, it would disguise the true tax increases from the homeowner, and would fail to givethat taxpayer and accurate picture of local spending growth.
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we assume your property tax bill is $11,500, you would get 70% of $6,810 ($11,500 - $4,690)
back. That's a tax credit of $4,767, and a savings of over 41 percent.
These principle recommendations will be very effective in controlling property tax levies and
delivering much needed relief to those families most in need. To summarize, these
recommendations include:
A) A property tax levy cap;
B) A restored and enhanced STAR program incorporating targeted tax relief via a circuit
breaker model; and
C) An aggressive cost containment strategy to reduce the cost-drivers that have steadily
increased expenses and the municipal, county and school district level.
II. ECONOMIC DEVELOPMENT
Tax relief will undoubtedly establish a more affordable living and working environment in New
York State over the medium and long term. But to create jobs and get people back to work in the
short term, a vigorous infrastructure development policy must be adopted. And here in the
Hudson Valley, the reconstruction of the Tappan Zee Bridge is a unique and promising
opportunity to refuel this regions economy.
As we await completion of the Draft Environmental Impact Statement for the Tappan Zee Bridge
reconstruction and expansion, Mike Kaplowitz intends to work with agency leaders to prepare
our institutional infrastructure so we can hit the ground running. We should be focusing on a
few major elements:
1) Diligently monitoring our use of resources and implementation of the study;
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2) Exploring legislative changes that could assist in financing a potentially $16 billion mega
project; and
3) Maximizing use of this mega-investment as an economic development tool.
Preparation
A few things are fairly certain at this point. The Alternatives Analysis determined that it is most
cost-effective to replace the entirebridge, and the bridge is going to be expanded. Aside from the
No Build alternative, all of the other potential alternatives being evaluated include bus rapid
transit (BRT) proposals. So, in considering financing and economic development initiatives,
we should be preparing for BRT and an expanded bridge in the area.39
Monitoring
Mike Kaplowitz will use the same approach in scrutinizing the public uses of funding that he has
employed throughout his legislative career. He will work with agency officials, comb through
budget documents, and highlight waste wherever it may be.
Financing
While proper design is paramount, the major issue confronting this project is how to complete
what is projected to be a potentially $16 billion venture. Legal consultants will be fully
exploring the potential options for financing a project of this size and releasing a report in the
upcoming months, but some options will clearly have to be considered:
39 As you will see in the appended Alternatives list, all of the alternatives (excluding the required No Buildalternative) contain some form of Bus Rapid Transit (BRT).
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y Alternative Delivery Systems Streamlining the current Design-Bid-Build system in
New York State, by sharing risk and using a private sector model - while securing the
public sector with sufficient performance specifications. This would include Design-
Build, Design-Build-Operate-Maintain, Design-Build-Lease models. Some public
authorities use some of these models right now.
y Public-Private Partnerships P3s are available on a case-by-case basis right now,
needing specific legislative grants of authority. We should be preparing legislation to
either expand this power for a particular agency/authority (like DOT or NYSTA), or
preparing a specific grant for prospective work on the Tappan Zee and other mega
projects.
y Expansion of Thruway Authority The Thruway Authority has the flexibility right
now to issue debt, has used a State Infrastructure Bank model in the past, has a
transportation infrastructure background, and operates the tolling on the bridge right now.
However, the Thruway Authority is too revenue-strapped and limited in its bonding
capital to support a project of this magnitude. It would need to be significantly
restructured or consolidated with other authorities to leverage existing levels of capital.
y Infrastructure Banks The state experimented with State Infrastructure Banks in
pursuit of previous federal transportation funding. However, this was a limited entry, and
would need to be drastically expanded to take on any elements of the bridge
reconstruction/expansion.
y Development Corporations There are a number of local economic development
entities involved already, but another consideration we could explore is a local
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development corporation, similar to the way the World Trade Center area has been re-
developed by the Lower Manhattan Development Corporation.
y Federal Funding The next 6-year transportation authorization remains uncertain. The
President has proposed a National Infrastructure Bank but has not elaborated on it, and
current financing initiatives like TIFIA are likely too limited in their present form to take
on this project.
Economic Development
In evaluating economic development opportunities and incentives, we should be considering the
constants in the EIS:
y Studying and Catering to the Appropriate Consumers
o Early phases of the construction will involve bridge and BRT expansion this
early phase should be focusing on the expanded group of construction workers
who will be rebuilding the area.
o Phase II of this redevelopment should be targeted to the BRT and auto commuters
using the bridge. Preliminary studies revealed that more users are actually
commuting from Rockland to Westchester than to Manhattan we should be
targeting our marketing at these commuters (initial development can actually be
more dispersed given the flexibility of these two transportation modes, rather than
creating an epicenter around a rail station).
o We should also be catering to the potentially 6 million residents entering in, and
should be analyzing these demographics. We also need to be exploring what
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employers are looking to move to this region, given the expanded transportation
capacity and location with this mega-region.
o Finally, we should be preparing for the entry of a rail commuter system, which
will expand the community to include the New York City market and rail
commuters.
Working with Community & Business Leaders A host of local and county leaders are
involved with this project, in addition to a number of urban planning and transit advocates. We
need to work with them to explore their ability to use their own capital financing (like the new
Build America Bonds through the Municipal Bond Bank Agency) on local public projects,
evaluate their economic development entities (exploring use of Empire Zones, Rockland &
Westchester IDAs, Economic Development Corporations) to maximize available capital.
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KAPLOWITZ 2010 | ENERGY &ENVIRONMENT POLICY
Establishing a Robust andInnovative Clean Energy Economy
III. PRODUCING,DELIVERING &USING ENERGY MORE EFFICIENTLY
Despite what some may think, energy efficiency and renewable energy are not merely issues of
reducing emissions and protecting our environment; it is also about strengthening our economy.
Our economic competitiveness will be greatly enhanced by investing heavily in green
technologies. New Yorkers pay nearly the highest energy costs in the nation. Residential
electricity rates were over 60 percent above the national average. Energy costs represent one of
the fastest growing overhead costs for small businesses, and compared with many industrialized
countries, the United States uses far more energy to produce the same unit of economic output.
This is an unnecessary burden on New York businesses that existing technologies could easily
help mitigate. Moreover, homeowners, who are already struggling with mounting property taxes
and mortgage payments, are facing a steep rise in utility bills this winter, sucking money out of
our economy that could otherwise boost consumer spending in the Hudson Valleys service
industry or help individuals and families pay down debt.
As State Senator, Mike Kaplowitz will make energy efficiency and renewable energy a focal
point of his economic and environmental policy. A comprehensive energy policy focusing on
efficiency and renewable energy sources will assure that New York has a reliable energy supply
while at the same time enabling the state to significantly reduce greenhouse gas (GHG)
emissions. Moreover, such a strategy will address the affordability concerns of residents and
businesses caused by rising energy bills, greatly improving the States economic
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competitiveness. Finally, advances in green technologies will reduce the health and
environmental risks associated with the production of energy in all sectors and improve the
States energy independence and fuel diversity by developing in-state energy supply resources.
Energy Efficiency
Energy efficiency mechanisms provide extraordinary value by meeting the States energy needs
in a cost-effective manner and by reducing energy bills, thereby making New York businesses
more competitive and allowing families to save money. They also help the State to achieve its
environmental goals by reducing emissions of greenhouse gases and other harmful pollutants,
improving quality of life throughout the state. Finally, energy efficiency resources increase
energy security by reducing exposure to supply disruptions and price volatility associated with
reliance on imported fossil fuels, particularly petroleum.
New Yorks Energy Efficiency Track Record
New York has been among the nations leaders in implementing market-based programs to
ensure that energy efficiency is developed, valued and recognized as a cost-effective alternative
to supply-side energy resources.
More than a decade ago, the Public Service Commission (PSC) instituted a System Benefits
Charge (SBC) to fund energy efficiency programs. The New York State Energy Research and
Development Authority (NYSERDA) has administered these funds to achieve more than 3,000
GWh in annual electricity reductions.40
40 NYSERDA. New York Energy $mart Program Evaluation and Status Report: Year Ending December 31, 2008. 2009.http://www.nyserda.org/publications/SBC%20March%202009%20Annual%20Report.pdf
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During this same time period, the New York Power Authority (NYPA) and the Long Island
Power Authority (LIPA) contributed an additional 2,000 GWh in annual electricity reductions.
These energy reductions have saved consumers billions of dollars in electricity and fuel costs.
Other State agencies, including the Division of Housing and Community Renewal (DHCR), also
administer successful energy efficiency programs. Moreover, New Yorks Energy Conservation
Construction Code (ECCC) has been in place since 1979, and both this Code and State appliance
standards have been periodically updated.
Energy Efficiency Potential
Opportunities for electricity end-use efficiency in New York are extensive and inexpensive when
compared with available supply options.41 Results of a recent study estimate the States
achievable potential through 2015 to be about 26,000 GWh, representing a reduction of
approximately 14 percent from the forecast of electricity demand in 2015.42 In addition,
improved building codes and appliance standards could provide a reduction of an additional
11,000 GWh (5.7 percent) from the forecasted electricity use.43
It is estimated that programs that would capture this achievable potential would cost $7.2 billion
in 2008 dollars over seven years, or an approximate average annual program portfolio budget of
$1.0 billion. However, net benefits to the New York economy would total $12.8 billion ($20.8
billion in total statewide benefits and $8.0 billion in societal costs). Therefore, the benefit-cost
41 Optimal Energy Inc., Energy Efficiency and Renewable Energy Resource Development Potential in New York State. It wasfound that only one out of every seven kWh of cost-effective, achievable electric energy efficiency savings opportunitieswithin New York was being realized. The study predicted that realizing even one-third of this potential would yield over $6.2billion in net benefits to New Yorkers by 2022.42 Ibid.43 This reflects changes to residential and commercial building codes, as well as federal appliance and equipmentstandards that have either already passed (but not yet taken effect), or are considered likely to take effect during the nextten years.
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ratio of various energy efficiency measures is estimated to be 2.60, which means that the New
York economy would capture approximately $2.60 in benefits for every dollar invested in
efficiency.44
Much remains to be done to overcome remaining impediments to achieving the States cost-
effective energy potential, and as State Senator, Mike Kaplowitz will work hard to capture the
economic savings presented by energy efficiency mechanisms. For instance, although many
energy efficiency measures pay for themselves in a few years or less, for some customers with
limited access to capital, the need for upfront investment remains a significant barrier to adoption
of cost-effective energy efficiency measures. Therefore, ensuring that every ratepayer has access
to the financing that is needed to make efficient upgrades is both critical and cost effective.
44 Optimal Energy, Inc. Achievable Electric Efficiency Potential in New York State. 2008.
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Smart Grid Technology
One of the most effective ways to capture efficiency gains is through the widespread deployment
of smart grid technology. Smart grid technologies will increase the efficiency of the states
electric system through expanded demand response programs and real-time pricing rate
structures. With the installment of smart meters in homes throughout the Hudson Valley,
people will be given real-time price signals that will help them alter their energy usage habits to
become more efficient power users. By monetizing the savings that people could realize by
making certain changes in their behavior, we can help individuals and families lower their utility
bills and indirectly protect our environment as well.
In light of the significant efficiency gains that can be realized with this technology, if elected,
Mike Kaplowitz will be sponsoring legislation that would create a smart electric meter pilot
program for the Hudson Valley with the aim of deploying smart meters in 50,000 homes,
increasing efficiency and lowering utility bills across the region. Homeowners who purchase a
smart meter will be awarded a 10 percent cash grant.
In addition to Mikes smart meter pilot program, he will also work to provide local businesses
with a 30 percent tax credit (or 10 percent cash grant) for investments in manufacturing facilities
that focus on the development of green technologies.
These proposals will kick-start jobs creation in a 21
st
century industry and provide common
sense solutions that will put money back into the pockets of hardworking homeowners.
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KAPLOWITZ 2010 | SUPPORTING &EMPOWERING WOMEN
Promoting Social & Economic Equality for All
IV. SUPPORTING WOMEN IN THE WORKPLACE
New York has a long history of hardworking women who, from farms to factories to corporate
offices, have helped create, drive and sustain New Yorks economy. Yet women in New York
still on average make only 84 cents for every dollar earned by a man. Closing the wage gap and
ensuring women are paid fairly is of critical importance as New York continues its great effort to
ensure fairness in the workplace.
Pay Equity policies are important tools to eliminate a pervasive type of gender discrimination in
the workplace and to close the gender-based wage gap. Specifically, it remedies biased pay
scales that devalue the skills, responsibilities and other features of jobs performed primarily by
women. By revaluing traditionally undervalued features of female occupations and eliminating
bias, Pay Equity will increase the earnings of underpaid, female-dominated jobs and the workers
in those jobs, thereby narrowing the gender wage gap.
Mike Kaplowitz will advocate passionately for working women throughout the state to finally
close the wage gap and ensure all hardworking New Yorkers a fair wage for a days work.
y Supporting and Strengthening the Fair Pay Act It is time to take real steps to end the
unfair treatment of New Yorks working women. By prohibiting wage discrimination
and increasing transparency, victims can determine when they are being discriminated
against, and we can prevent it from continuing. Fair Pay legislation provides the State
and its citizens with better legal tools to be paid fairly for what they do. Women also
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deserve a partner who will follow up on the recommendations and conclusions of the
Department of Labor regarding wage inequities to ensure that employers understand their
obligations and abide by them.
Other priorities to ensure gender equality in the workplace include:
y Prohibiting discrimination in the workplace We need to ensure that women are not
discriminated against at the interview table either, and need to reduce work-related
harassment and incidents that diminish productivity and self-confidence.
y Supporting our working families Its time to start exploring creative ways to make
paid family leave and paid sick leave available for New Yorks entire workforce - men
and women.
State of the Law:
Despite federal and state civil protections in place, women still make only 84 cents to every
dollar that men make in New York. Assemblywoman Johns Fair Pay Act (A. 3911) would ban
discrimination against employees on the basis of sex, race and/or national origin and the
practice of compensating employees in equivalent jobs differently, or by compensating
equivalent jobs disproportionately when they are occupied by a particular gender or race.
Importantly, this legislation also stipulates that an independent arbiter would be empowered to
carefully examine wages in different positions and setting guidance (a party would not know
they were being discriminated against unless they knew about salary discrepancies and market
rates for equivalent positions).
While this bill represents an important first step, it can be strengthened in a number of ways by:
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y Clarifying prohibitions on labor organizations to provide better guidance as to what
conduct during collective bargaining negotiations would constitute discrimination;
y Clarifying and expanding the whistleblower protections in particular, defining adverse
actions or [discriminatory behavior] so that retaliatory action by employers against
those employees who attempt to assert their rights or draw attention to incidents of wage
discrimination is prohibited.
y Instituting a separate right of action for the Attorney Generals Civil Rights Bureau to
pursue wage discrimination cases, especially those involving fields dominated by a
particular sex or race.
The Many Benefits of Fair Pay:
y Pay Equity Reduces State and Local Taxes: By ensuring that both men and women are
earning fair, livable wages in return for their hard work, financial security is provided to
more and more New Yorkers, reducing the demand for state-supported social services
and relieving strain on an already overburdened safety net.
y Pay Equity Presents Minimal Implementation Costs: Based on experiences in other
states, effective pay equity programs can be implemented with minimal costs. In
Minnesota, the state spent only 3.7 percent of its payroll budget over a four-year period,
decreasing the wage gap among its 30,000 employees by six to eight percent. The state of
Washington implemented its pay equity plan over a ten-year period, resulting in
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increased pay for women in the lowest job classes by about ten percent. The total cost to
the state was only 2.6 percent of payroll.45
y Pay Equity Expands the Middle Class and Reduces Poverty: By cracking down on
occupational and wage discrimination across a broad spectrum of jobs and industries, pay
equity will support our efforts to reduce poverty levels among the working poor and offer
countless hardworking middle class families greater economic security.
y Pay Equity Boosts Business Performance and Productivity: Fair pay for employees
can lead to greater productivity by raising morale among workers who are confident that
they will receive fair pay for their work. By compensating workers for the fair value of
their work, pay equity can help businesses recruit and retain the best-qualified workers
y Pay Equity Supports Working Minorities and Increases the Diversity of New Yorks
Workforce: Across jobs typically dominated by people of color, workers earn
approximately 66% of white men earn, but with pay equity, that disparity would decrease
substantially, and people of color would earn approximately 94 percent of what white
men earn.46
y Pay Equity Strengthens our Economic Recovery: A recent report by the Global
Markets Institute highlighted the fact that improved gender equality and greater buying
power among women will benefit important sectors of our economy, including food,
45http://www.pay-equity.org/info-Q&A-Act.html46Stone, Pamela and Arielle Kuperberg. 2005. Anti-Discrimination vs. Anti-Poverty? A Comparison of Pay Equityand Living Wage Reforms.Journal of Women, Politics & Policy 27:23-29.
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healthcare, education, childcare, apparel, consumer durables and financial services.47
Spending driven by women is expected to support the development of human capital,
which will fuel economic growth in the years ahead. At the same time, economic growth
should continue to bolster gender equality, creating a virtuous cycle of growing equality
and wealth for our communities.
V. ENDING VIOLENCE AGAINST WOMEN &REFORMING FAMILY LAW
Despite meaningful strides in public awareness, high rates of violence against women persist in
New York. Of highest concern is the rate of violence against our young women one study
examining New Yorks high school students found that 16 percent had already experienced
sexual violence at some point in their life, and more than half of those who had dated had
experienced some form of physical violence from their partners.48 This prevalence of violence
has a tremendously negative impact on the physical and mental health of too many New York
women, and jeopardizes our economic security and public safety.
Mike Kaplowitz is committed to ending violence against women in all its forms and carrying on
the good work that our Democratic majority began, including:
y Continuing and monitoring reforms of the order protection system until every
domestic violence or sexual violence survivor is fully protected. These efforts will
complement recent accomplishments at the state and local level.
47 Global Markets Institute: The Power of the Purse Gender Equality and Middle Class Spending(2009), availableathttp://www2.goldmansachs.com/ideas/demographic-change/power-of-purse-doc.pdf.48NYC Alliance Partners and Peers: Sexual and Dating Violence Among NYC Youth (2008), available athttp://www.svfreenyc.org/research_par_3.html.
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y Continuing to update antiquated divorce and maintenance laws to ensure fairness
and prevent financially weaker spouses from being taken advantage of during prolonged
litigation or being force to settle for the wrong reasons.
y Prohibiting employment or housing discrimination against domestic violence
survivors.
y Combating dating violence, particularly teen dating violence, through prevention and
awareness programs, including creation of a Teen Dating Violence & Bullying Task
Force.
y Establishing mechanisms for domestic violence and stalking survivors to protect their
new locations from abusers, including an address confidentiality program.
y Reviewing policies regarding sex offenderregistries to ensure that they are effectively
protecting our communities.
State of the Law:
y The Order of Protection System in New York has been modified by a number common
sense proposals this year, including allowing for an extended time period to have orders
of protection issued (Chap. 325 of Laws of 2010), clarifying the law on dismissing
protection orders based on temporal considerations, recognizing the long-term pattern of
abuse and difficulty of litigating domestic violence (Chap. 341 of Laws of 2010),
permitting electronic transmittal of orders of protection statewide (Chap. 261 of Laws of
2010), and a law that clarifies that peace officers and police officers can serve orders of
protection during any legal stage (Chap. 446 of Laws of 2010). I will work with
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survivors advocates and criminal justice officials to track the progress and
implementation of these critical reforms.
y Chapter 371 of the laws of 2010 established responsible guidelines for the courts to
follow in distributing post-marital income during divorce proceedings. This legislation
allows low-income spouses to establish their right to maintenance during the interim
period between the initial filing and the granting of the divorce, a critical period of
transition, rather than having to undergo lengthy litigation to secure this right. However,
it does not address maintenance issues that may arise after the divorce is finalized. We
await the findings of the Law Review Commission that was directed to study and make
recommendations regarding post-divorce maintenance laws.
y The Governor vetoed the Senates housing discrimination legislation (S-5999A), which
would prohibit housing discrimination against domestic violence survivors. I will work
with legislative and criminal justice leaders to formulate a rationally-tailored definition of
survivors so that we can ensure access to safe, affordable housing.
y The Governor also vetoed an update to the previous years bill prohibiting employment
discrimination against domestic violence survivors (S-6000A). This expansion of the law
would require employers to make reasonable accommodations to permit survivors to use
their leave or to take unpaid leave to address the variety of medical, family and legal
matters associated with domestic violence. The veto was again based on the definition of
domestic violence survivor; I am committed to working with my colleagues to put
together a definition that is appropriate in scope and fully consistent with existing law.
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y Currently, requirements that survivors use their actual addresses for many state programs
means that their abusers can find their new addresses through public records searches.
Another vetoed bill (S-7379) would direct creation of an address confidentiality program
whereby domestic violence survivors could have mail delivered to an address designated
by the secretary of state, who would then forward the mail to the survivors actual
addresses. Though vetoed due to fiscal concerns, protecting domestic violence survivors
is the sort of activity that saves the State resources. Similar to our reevaluation of the
IOLA system of funding civil legal services, we should explore mechanisms to fund this
initiative as well. Perhaps the Governors IT in-sourcing program will generate
administrative efficiencies and provide adequate technical staff to perform this
programming.
The Staggering Scope of Violence against Women in New York
y Violence against women in NY is damaging thousands of women mentally, physically,
economically, and emotionally, costing millions in associated damages and killing New
Yorks economic productivity.
o In Westchester County, there were nearly 2,500 incidents of domestic violence
involving assault, sexual assault, and violations of protection orders last year.49
o In Putnam County, there were 165 incidents of domestic violence, more than half
of which were violations of protective orders in the last year.50
49 http://criminaljustice.state.ny.us/crimnet/ojsa/domesticviolence/westchester.pdf50 http://criminaljustice.state.ny.us/crimnet/ojsa/domesticviolence/putnam.pdf
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o In Dutchess County, there were over 1,200 incidents of domestic violence last
year.51
o In New York City, nearly half of all fatal violence against women (44%) was
confirmed to be the result of Intimate Partner Violence.52
Teen Violence
y Since 1999, physical dating violence reported by public high school females in NYC has
risen almost 50%. High school survey data indicate that reported physical dating
violence increased from 7.1% in 1999 to 10.6% in 2005.53
y About one in three high school students have been or will be involved in an abusive
relationship.54
y Forty percent of teenage girls aged 14 to 17 say they know someone their age who has
been hit or beaten by a boyfriend.55
y Over 16% of New York City high school students reported experiencing sexual violence
at some point in their lives.56
Costs
The New York State Office for the Prevention of Domestic Violence reported that nearly 30,000
individuals were denied shelter in New York facilities, 16,000 of which were children. 57
51 http://criminaljustice.state.ny.us/crimnet/ojsa/domesticviolence/dutchess.pdf52 http://www.nyc.gov/html/doh/downloads/pdf/public/ipv-08.pdf53 http://www.nyc.gov/html/doh/downloads/pdf/public/ipv-08.pdf54 http://www.acadv.org/dating.html#statistics55 http://www.acadv.org/dating.html#statistics56 NYC Alliance Partners and Peers: Sexual and Dating Violence Among NYC Youth (2008), available athttp://www.svfreenyc.org/research_par_3.html.
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o The most common reason for denial was that the facility was at capacity.
y Over 335,000 domestic violence and sexual as