M.T.A. Increases Fares and Cuts Services

by William Neuman and Jennifer Lee

The board of the Metropolitan Transportation Authority voted on Wednesday morning to enact a series of fare hikes and service cutbacks needed to keep the transit system from going broke.

The vote was broken largely into three parts: fare hikes, toll increases and service cutbacks. After hearing from the public and the board members, the board approved each by a vote of 12 to 1.

M.T.A. Is Set to Approve Higher Fares and Service Cuts

by William Neuman

The base subway and bus fare in New York City would rise to $2.50, up from $2. A 30-day MetroCard would cost $103, up from $81. A monthly ticket on the Long Island Rail Road for a commuter who travels between Ronkonkoma and Pennsylvania Station would increase to $352, up from $278.

BALCONY FINDS COMMON GROUND BETWEEN NEW YORK BUSINESS AND LABOR

In 2006, after years of suffering through the increasingly frustrating battles of Albany wills between unions and corporations, Alan Lubin, Executive Vice President of NYSUT and Bruce Ventimiglia, Chairman of Saratoga Capital Management, got together to form BALCONY, the Business and Labor Coalition of New York, an organization that seeks common ground on public policy in New York State.

Read the entire write-up: Story

BALCONY Members Speak Out About the Business and Labor Coalition of New York

“BALCONY represents a new era in collaboration and cooperation between employers, who want to share their success with the people who labor on their behalf, and employees, who want their businesses to thrive in this challenging global economy. We seek common ground because we realize we are all in this together and when we work together, we have a far greater chance at achieving our mutual goals.”

Alan Lubin, BALCONY Co-Chairman & Executive Vice-President, NYSUT

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GOVERNOR PATERSON ANNOUNCES ENHANCEMENTS TO NEW YORK’S SMALL BUSINESS LENDING PROGRAMS

Governor David A. Paterson today announced the expansion of funding a critical economic development lending program aimed at the Small Business community. In response to the current economic climate and in support of the integral role that small business plays in the continuity and strength of our State’s economy, Governor Paterson directed Empire State Development (ESD) to increase funding to the Community Development Financial Institutions (CDFI) program by $2.5 million and authorized an $80,000 grant to the Regional Alliance of Small Contractors. Today’s announcement follows President Obama’s vow earlier this week to ease the financial burden of the nation’s small businesses through immediate action to revive frozen credit markets.

THIS TAX CREDIT SAVES JOBS

by William C. Thompson, Jr.

FROM “Law & Order” and “Sex and the City” TO “The French Connection” and “Do the Right Thing,” New York City has been the setting for some of the greatest TV shows and films ever produced. The movie and TV industry is one of the most vital to the city’s economy, employing 30,000 people directly and tens of thousands more in related fields. Capitalizing on this critical source of jobs and revenue, the state adopted a tax credit in 2004 to encourage more film and TV production here. Under competitive pressures from other locales, the state later expanded the tax credit on production costs from 10 percent to 30 percent. The number of shooting days in New York City jumped by 10,000 in a year. A recent Ernst & Young study showed that the expanded incentives created or retained 7,000 film-industry jobs and generated another 12,500 jobs from associated activity. That activity is expected to add some $2.6 billion to the state’s coffers by 2010, so last spring the state extended the tax credit through 2013. Unfortunately, in the current budget, the state hasn’t allotted enough funds to sustain this important program. Especially in the current downturn, we can’t afford to risk driving this important employment base out of our region. We’re all aware of our need to diversify our economy, which became perilously dependent on Wall Street in recent years. New York state and New York City are attractive to producers because of the concentration of actors and artists, our extensive transportation network and the diversity and geography of our neighborhoods. But these attributes themselves aren’t enough to secure our position as a pre-eminent location to film. No question, we risk losing productions if we eliminate this credit. In a bit of irony that should give us pause, the $100 million tax-incentive package lawmakers are considering now in California is known as the “Ugly Betty Production Credit,” after the TV production that relocated from Los Angeles to New York last year. We’re proud to have America Fererra and her colleagues filming on our streets, but without the New York state credit that brought the show to our city, it may cease production here. That would be a terrible shame. The TV shows and movies shot here create free advertising for local attractions. Research suggests that cities serving as locations for successful films benefited from a 54 percent increase in tourism over the following four years. And New York City has nurtured the work of countless artists whose work is inseparable from the city that inspired them: Spike Lee, Martin Scorsese, Sidney Lumet, Woody Allen. Without a firm commitment to film and TV in our city, we may well be stifling the dreams of other artists in the making. By every measure, the credit has benefited the city and state. We must move now to restore funds to the program so production can continue unimpeded. William C. Thompson, Jr. is New York City comptroller.

GOVERNOR PATERSON, MAJORITY LEADER SMITH, SPEAKER SILVER REACH AGREEMENT TO ELIMINATE $1.3 BILLION IN PROPOSED TAX INCREASES FROM 2009-10 EXECUTIVE BUDGET

Federal Economic Recovery Funds to Help Everyday New Yorkers in Difficult Economic Climate

Governor David A. Paterson, Senate Majority Leader Malcolm Smith and Assembly Speaker Sheldon Silver today announced an agreement to eliminate $1.3 billion in tax increases included in the proposed 2009-10 Executive Budget. The agreement eliminates new taxes on common items, including previously tax-free goods and services such as clothing under $110, sugared drinks, digital downloads, cable and satellite television, manufacturers’ coupons, haircuts, manicures, concerts, movies, live theatre, health clubs, bowling, golf, skiing and others. Additionally, to help businesses and families in a struggling real estate market, a proposal to limit the sales tax exemption on capital construction improvements made to property is no longer advanced.

‘Say Yes’ gives Syracuse teen hope to meet college expenses

Nate Heffron, a senior at Corcoran High School in Syracuse

These are tumultuous economic times.

Every day brings news of more despair. So many millions of Americans are losing their jobs, their homes and their hopes to live the quality of life that they have been accustomed to. Lately, one can only view the world with pessimism.

Yet on Feb. 3, I received word of a gift, a blessing that refutes any prior belief that I, too, would become a victim of this recession. The message was my financial aid award notification from Syracuse University. The numbers were unbelievable.

The Say Yes to Education grant totaled nearly $36,000 for the 2009-10 academic year. That completely covers tuition and fees. I’m also expecting an allowance to cover the cost of books.

What is Say Yes to Education? The Say Yes to Education program allows graduates of Syracuse city public schools to attend college tuition-free. Students in the program must be accepted at a participating college. The college offers a package of financial aid and scholarships based on the student’s need and merit and cancels any remaining costs of tuition, books and fees. Currently, 17 private colleges are participating fully in the program. Another six private schools are offering aid limited by the applicant’s financial status. The Say Yes program also covers tuition for the first year at a New York state university college.

Despite a bleak and forbidding economy, this letter detailed the aid that would allow me take advantage of a quality college education, and prosper economically, even if the current situation continues to deteriorate.

I am constantly being reminded of the value of a college education. Through the words and lifestyles of friends, family and ordinary people alike, I can see that now is the time to ensure that I can control my future.

With a college degree, I will be a more significant asset to an employer, and I’ll almost certainly earn more than those with less education.

Of course, I still have to fulfill my end of the deal. I must complete my responsibilities — to stay focused and maintain my grades. I want to set an example as a member of the introductory class to have the opportunity of Say Yes at my disposal.

This means an intense amount of work that is still ahead of me. I am beginning to prepare mentally for the task on the horizon. I have to be ready to work harder than I have ever worked before.

The work will be rigorous, yet nothing less than what was always expected of me. This is my obligation, to my family, friends, school, city and country.

The weak economy raises the stakes, but it is also the best motivation for me to put forth an all-out effort and take advantage of this opportunity that only a few young people in this community have access to. This is truly a blessing.

Labor and Business groups unite against health care taxes

Albany-(March 9, 2009) The state’s leading labor and business organizations united today to oppose proposed health insurance taxes that would make coverage more expensive while doing nothing to reduce health care costs. The groups agreed that these taxes will increase health insurance costs and make it harder for employers and workers to afford coverage.

BUSINESSES AND UNIONS JOIN TO OPPOSE PATERSON $1 PER HEALTH CARE CLAIM SURCHARGE

“Governor David Paterson’s $1 Health Care Claim Surcharge goes in the opposite direction of the Obama Administration’s Health Care for All Campaign, and will hurt union members, small businesses, and taxpayers,” charged a coalition led by the New York State AFL-CIO and BALCONY.

The broad based coalition of unions, insurers, businesses, and third party administrators (TPAs) called on the Governor to “Deep Six” his surcharge plan and urged all those who submit health care claims to

 call Paterson at (877) 255-9417

immediately and protest. Click here for the NYS AFL-CIO action flyer.

The Third Party Administrator Claims Handling Tax is a $1 tax fee proposed by the Paterson Administration in the 2009-2010 New York State Budget for every medical, dental, or vision claim or prescription drug benefit over $20. The New York State Budget must be approved by the New York State Assembly and State Senate and signed into law by Governor Paterson by April 1, 2009.

Art Wilcox, Public Employee Director of the New York State AFL-CIO, stated that the provisions of the tax which will cost union members at least $63 million in 2009, and more than $120 million in 2010. Wilcox indicated that the tax would be even higher than the original estimate since it does not include any prescription drug purchase and refill. Wilcox further reports that the total health insurance new taxes in the Paterson budget, including the Covered Lives Assessments approved in the Deficit Reduction Plan, is nearly half a billion dollars.

At an emergency meeting in New York City on Thursday March 5th, more than forty  BALCONY members, union leaders, fund administrators, health care insurance representatives (including the New York Health Plan Association), third party administrators, pharmacy benefit managers, dental providers, and investment advisors, agreed that the Paterson Health Care Claims Tax would have dire consequences on working families and union members.

“The administration has almost a half billion dollar per year hidden and concealed taxes on health insurance participants. The $1 Health Care Claim Surcharge and other taxes are totally counterproductive to the spirit of President Obama’s plans for Affordable Health Care for All,” stated BALCONY Co-Chair Alan Lubin, Executive Vice President of NYSUT. “We must not balance the state budget on the backs of working men and women.”

Albany Lobbyist Richard Winsten, of Meyer Suozzi, English & Klein, who represents many labor/management and other self-insured union benefit funds, to oppose the Governor’s TPA tax plan stated, “Union members and self-insured funds will be adversely impacted by the ill-conceived proposal which must be rescinded by the governor and or killed by the legislature.”

According to one estimate provided by Lucas Paul of SEIU Local 32BJ Health Fund, each member of his union would be forced to pay a tax of least $140 more per year, totaling more than $2.1 million for the entire 32BJ union membership.

The following are the proposed charges and assessments and their estimated effect on 32BJ after an analysis of the 32BJ Health Fund in 2009. Read the SEIU Local 32BJ memo.

A representative of the insurance industry who also opposes this measure encouraged BALCONY members to organize against it, because the opposition can only be successful if it becomes widespread, and its reasons well understood. Other TPAs in attendance suggested that such a tax, applicable even to out-of-state claims if the TPA is based in New York, would drive these businesses to neighboring states.

The alternative, favored by the New York State AFL-CIO, to the Paterson $1 Health Care Claim Surcharge is to tax businesses that refuse to provide health care for their employees, instead of piling additional fees upon those that are already complying with the widely-felt mandate for affordable health care for all that has become a centerpiece of the Obama Administration.

There was widespread agreement in the room that alternatives to the Governor’s plan must close the existing shortfall. The “uncovered lives” tax is the most equitable way to accomplish this, and pushes New York State closer to its desired goal, the provision of affordable health care for each and every citizen.

BALCONY, the Business and Labor Coalition of New York, represents more than 1000 businesses, labor unions, trade associations, non profits, and advocacy organizations. BALCONY is a public policy coalition which seeks common ground on key issues in New York.