Archive for October, 2008

Governor calls for federal help

Paterson, testifying before House committee, says government must pass an economic stimulus package to provide financial relief to states

By Juliann Vachon

As New York faces mounting budget shortfalls and a national financial crisis, Gov. David A. Paterson called on Congress yesterday for immediate aid, saying the federal government should help states cope with widespread economic turmoil.

Testifying before the House Ways and Means Committee, Paterson urged Congress to urgently pass an economic stimulus package that pours fiscal relief directly into New York.

Paterson’s testimony came a day after he announced the state faces a $47-billion budget gap over the next four years – the largest in New York’s history. State legislators have already started making spending cuts, but Paterson said federal help is still needed to reverse budget shortfalls.

“We are cutting all we can and we will cut all that we are able to, but inevitably, the deficit is too voluminous for us to address,” Paterson said. “We feel that targeted, sensible action by the federal government could provide relief for us now.”

Democrats in Congress are considering a second stimulus package – but one more focused on government spending designed to create jobs and not on one-time tax rebate checks. President George W. Bush has been cool to the idea, so Democrats may have to wait until next year, and hope they’ll have Barack Obama in the White House to support the plan.

Another governor, Republican Mark Sanford of South Carolina, disagreed with Paterson at the hearing and pleaded with Congress to avoid another stimulus package.

“If we simply add more money at this time and in essence bail out what are in some cases unsustainable programs, I think that we end up with real problems down the road,” Sanford said.

But Paterson said New York deserves federal help because it “has been shortchanged for years when it comes to aid from Washington.” In 2007, the state sent $86.9 billion more in taxes to the federal government than it got back.

Speaking to committee chairman Rep. Charles Rangel (D-Harlem) and other members, Paterson ran through a list of initiatives needing federal aid, such as repairing infrastructure, boosting the food stamp program, extending emergency unemployment benefits and putting a moratorium on federal regulations that harm state budgets.

Paterson, in his written testimony, also blamed the federal government for allowing financial institutions to go unregulated to the point of near-collapse.

“States didn’t cause this crisis and we shouldn’t be left to deal with it alone,” he said. “A rescue package from the federal government will help soften the blow for average Americans.”

Lawmakers Mull Stimulus Investment in Infrastructure

House Transportation and Infrastructure Committee staff were expected Wednesday to start piecing together the infrastructure investment component of a pending stimulus package.

At the request of Speaker Nancy Pelosi , D-Calif., the panel held a hearing with three sets of witnesses ranging from governors to economists to transportation experts to discuss the plan to stimulate the economy with new infrastructure jobs.

Chairman James L. Oberstar , D-Minn., said the committee would then get to work on its section of the stimulus to be ready for when Congress returns for a ‘lame duck’ session Nov. 17.

The goal of the stimulus would be to invest money in projects all over the country that could be up and running within 120 days. The American Association of State and Highway Officials identified more than 3,000 such projects.

“These are jobs that cannot be outsourced to another country because the work must be done here in the United States on our roads, bridges, transit and rail systems, airports, waterways and wastewater treatments,” Oberstar said.

Governor Jon Corzine of New Jersey promised that his state would adhere strictly to funding prioritized projects outlined in the bill.

“We are going to this whether there is a stimulus or not,” Corzine said. “We can win against the winds.”

The tone of the first panel was one of cautious optimism — that the investments wouldn’t solve the current economic crisis, but could help speed its recovery.

Landmarks Vote Is a Victory for St. Vincent’s Hospital

By Glenn Collins

In an emotionally charged decision that some preservationists warned would set a precedent weakening protection for the city’s historic structures, the New York City Landmarks Preservation Commission voted 6 to 4 on Tuesday to approve the so-called hardship application of St. Vincent’s Hospital Manhattan.

GOVERNOR PATERSON CALLS ON CONGRESS TO INCLUDE STATES IN SHAPING REFORM AND OVERSIGHT OF THE RESCUE PLAN

Read the entire story: Economic Recovery 

Uninsured Young Adults Forum Report Released…

Daunting demographics, splintering private sectors and crippling costs stand in the way of a solution to the problems of gaining affordable health insurance for young adults in New York.

Providing health care for New York’s 800,000 uninsured young adults is costing hundreds of millions of dollars a year as youths are utilizing hospital emergency rooms as their primary care physicians. Furthermore, a profound human cost is incurred as the uninsured are vulnerable to potentially catastrophic medical hardships and consequently, economic difficulties. Young people have some of the greatest health needs, but have significantly reduced access to an adequate health system, instead they are faced to combat one that is structurally and fiscally stacked against them.

New York State and the federal government should give priority to developing an affordable choice for providing young adults with health insurance; unfortunately, this issue is clouded by the current uncertain economic times.

Those are some of the insights and conclusions of a special forum on Uninsured Young Adults in New York State organized by BALCONY, the Business and Labor Coalition of New York, and co-sponsored by NYU Wagner Alumni Association, the American Cancer Society, Demos, and Freelancers Union. The forum and public discussion about the lack of health insurance coverage for young adults (ages 19-29) was held October 14, 2008 at the NYU School of Law and drew an audience of more than 100 health care advocates, health care professionals, young adult workers, students, union members and benefit providers. The event featured five panel discussions, and a one-woman award winning performance, Hot Cripple, by Hogan Gorman

Read the full report (PDF file): Uninsured Young Adults Forum Report

Union leaders meet with governor

Session on savings draws some optimism amid budget problems.

By Rick Karlin

Leaders of three major state employee unions met with Gov. David Paterson on Tuesday for what was described as a freewheeling discussion of how the state can save money to deal with its growing budget deficit.

Union leaders say they are cautiously optimistic after the meeting, in which the governor did not broach the issue of layoffs or of reopening labor contracts.

“It was actually a very productive, beneficial meeting,” said Kenneth Brynien, president of the Public Employees Federation, which attended the meeting along with reprsentatives from the Civil Service Employees Association and the Organization of Management/Confidential Employees.

“The governor is really trying to find ways to fix the crisis we are in,” added Brynien.

“It was actually a very productive, beneficial meeting,” added Stephen Madarasz, spokesman for CSEA.

Among the cost-saving suggestions: increased telecommuting, which could allow heat and light savings in some buildings and cutbacks on the use of outside consultants. Union members have long complained the state spends too much on consultants rather than having employees perform some tasks, although others have said consultants can provide flexibility.

Regardless of the outcome, Brynien said he was heartened by what he viewed as Paterson’s apparent willingness to look at all and any cost savings.

“He used the phrase, ‘There are no sacred cows,’ ” Brynien said.

Paterson’s office is also fielded visits from advocacy and other interest groups who, as a special Nov. 18 legislative session is approaches, are anxious to avoid cuts to their programs.

Paterson has said the current year’s deficit could hit $2 billion, and next year’s could hit $10 billion.

Comptroller Revises Job Forecast Downward

by Patrick McGeehan

Expecting a national recession to compound the effects of the Wall Street crisis, the New York City comptroller’s office is now forecasting that the city will lose 165,000 private-sector jobs over the next two years.

That would be almost twice as many as the comptroller’s office had projected three months ago, when it said that about 85,000 jobs would be lost. The difference, according to the comptroller, William C. Thompson Jr., is that the nation has slipped into a general recession with effects that will spread far beyond the financial services sector and across the whole city economy.

About one-fifth of those lost jobs, about 35,000, will come in investment banking and other financial services, according to the revised forecast. The previous projection was for a loss of 25,000 jobs in financial services, or almost one-third of the expected total.

The financial-services sector has had one of the biggest declines this year, while some sectors — including construction and tourism-related businesses — continued to add jobs through the summer. But the comptroller’s new forecast envisions significant cutbacks in those fields as a recession lingers and the cutbacks on Wall Street ripple outward.

“Some of this is a combination of the financial-market downturn, the credit crunch that’s having an effect on small businesses and the rest of the nation finally catching up with New York,” Mr. Thompson said. “While this is perhaps more abrupt than the last recession, we don’t think it’s going to be as prolonged.”

Mr. Thompson also said he expected that the rebounding dollar would lead to a reduction in tourism here. “Tourism has been up because the euro has been so strong, but in the last few weeks you’ve seen the euro tumble against the dollar,” he said.

The projected losses would amount to about 5 percent of all private-sector jobs in the city, but they would not be as great as in the last recession. In the downturn that lasted from 2001 into 2003, the city lost about 235,000 jobs, according to data from the federal Bureau of Labor Statistics.

Ronnie Lowenstein, director of the New York City Independent Budget Office, said her office had not updated its forecast of the city economy since the financial crisis worsened this fall. But she said she agreed with the view that the national recession would weigh heavily on a local economy, already beset by the devastation of its leading industry.

“We’re facing a problem that’s both cyclical and structural,” Ms. Lowenstein said. “We’re going to be affected by the U.S. downturn but there are going to be long-term changes in the financial sector that are going to affect us well beyond this recession. It’s likely that those structural changes will be accompanied by a smaller financial-activities sector than we’ve seen in recent years.”

New York City Construction Spending Forecast to Reach $33.8 Billion in 2008 and $93 Billion over Three Years, According to New York Building Congress Construction Outlook

Continued Strength May Be Seen in all Building Sectors Through 2009;
Economic Downturn Creates Uncertainty for 2010 and Beyond

NEW YORK, October 14, 2008 – For the second time this decade, New York City’s construction industry has proven its resilience while helping to bolster a struggling local economy, according to New York City Construction Outlook 2008-2010, an annual forecast and analysis prepared by the New York Building Congress. The report was released today at a Construction Industry Forum featuring New York City Planning Commission Chair Amanda M. Burden and New York City Economic Development Corporation President Seth W. Pinsky.

800,000 Uninsured Young Adults in New York

October 14th Forum Will Discuss Health Care Crisis and the Solutions

There is a time bomb silently ticking in New York State, a potential crisis that seems to have escaped the notice of many of our political leaders and social planners. In New York State alone, there are approximately 800,000 young adults between the ages of 19 and 29 without health insurance. These individuals hold jobs in environments such as fast-food franchises, small businesses and freelance work.

The Business and Labor Coalition of New York BALCONY, in partnership with the American Cancer Society, Demos, Freelancers Union, and the NYU Wagner Alumni Association, is sponsoring a forum on this pressing issue by providing an in-depth examination of the financial and medical consequences of the majority of our young workers not having health insurance. This forum will be held on Tuesday, October 14, 2008 at the NYU School of Law in the Greenberg Room, First Floor, 40 Washington Square South, Manhattan. It will run from 8:30 AM to 12:30 PM and feature a wide array of health care experts. The public is invited.

To register for the Forum please go to the BALCONY website www.balconynewyork.com

and register via the Demos on line platform www.demos.org,

see: Demos Events October 14, 2008 , Uninsured Young Adults in New York.

Paterson wants union help in cutting costs

ALBANY — Gov. David Paterson, already wrestling with a potential $8 billion budget deficit next year, said today he plans to meet with union leaders later this month and has not ruled out layoffs of state workers as a potential cost-cutting measure.