BALCONY Supports Higher New York State $10 Minimum Wage Proposal of Fiscal Policy Institute

BALCONY today (Monday) announced its support for a phased-in $10 an hour minimum wage for New York State workers as proposed by the Fiscal Policy Institute (FPI) in a report released today: The Case for Raising the Minimum Wage. (FULL REPORT)

“New York State needs a minimum wage that helps families who are struggling to make ends meet,” stated Alan Lubin and Robert Hayes, BALCONY co- chairs. “During the current economic upheaval it is time for our state to provide a wage floor that is realistic. Mayor Bloomberg, Governor Cuomo and Speaker Silver all agree that people cannot live on $7.25 an hour. BALCONY supports a $10 an hour phased-in minimum wage which will result in additional consumer spending that, according to FPI, will create more than 25,000 jobs.”

“This new $10 minimum wage proposal is a common sense approach which both business and labor can and should support,” concluded Lubin. He noted that more than 1.6 million New Yorkers would see their hourly wages increase to $10 an hour over three years. According to FPI, most of the workers who would be directly affected by a higher minimum wage work in retail. 88% of the workers are adults and 12% teenagers.

Mark Jaffe, President of the Greater New York Chamber of Commerce and a BALCONY member, has indicated that he supports a raise in the minimum wage as well.

“CITIZENS’ COMMITTEE FOR AN EFFECTIVE CONSTITUTION” LAUNCHES GROUNDBREAKING BI-PARTISAN REFORM COALITION THAT SEEKS TO RESTORE NEW YORK’S REPUTATION AS AN EFFECTIVE STATE GOVERNMENT

Committee, led by New Roosevelt Founder Bill Samuels, Minority Leader Brian Kolb, and Constitutional Scholar SUNY Professor Gerald Benjamin, will advance public discussion of the State Constitution and serve as non-partisan platform for how to best reform the constitution and create effective change on issues including campaign finance reform and redistricting; Announces statewide Law School scholarship essay competition focusing on constitutional issues

ALBANY, NY – New Yorkers deserve a more effective State Constitution, a more effective state government, a more effective civic process and a more effective economy.

These are the goals of a groundbreaking, bi-partisan reform coalition – “Citizens’ Committee for an Effective Constitution” (CCEC) – which launched itself online earlier today. CCEC seeks to bring together over time recognized leaders and experts from the worlds of nonprofit/good government advocacy, private sector leadership and public service, academia and scholarly research to advance serious public discussion of issues pertaining to New York’s State Constitution, state government, economy and public policy.

CCEC has one goal: Restoring New York State’s reputation as the national economic and public policy leader by discussing and debating State Constitutional provisions that have contributed to statewide dysfunction, an underperforming economy and the loss of trust by New Yorkers in their state government and the men and women serving in it.

In order to develop and advance with creative solutions to these problems, CCEC’s multi-year effort seeks to engender informed discussion, lively debate and purposeful action that transcends traditional political and ideological labels, and advance changes to the State Constitution that will produce a more democratic, responsive, and effective state government. CCEC will focus on State Constitutional change and advance a non-partisan, informed conversation on public policies.

The launch of CCEC, first reported by Associated Press Albany Capitol Editor Michael Gormley, was carried this weekend in articles and analysis for statewide print, web and broadcast media and new media outlets including the Associated Press; Niagara Gazette; Daily Gazette; Democrat and Chronicle; Post-Standard; Saratogian; LoHud.com; Journal News; Poughkeepsie Journal; Staten Island Advance; Long Island Press; News 10; Empire Page and Twitter. CCEC also was covered in select New Jersey and Vermont AP media outlets.

The Committee also aims to create a meaningful dialogue around the best methods to reform the State Constitution, whether through a Constitutional Convention or an Amendment-by-Amendment approach.

The three principals of CCEC are: Bill Samuels, Chairman of New Roosevelt and the New Roosevelt Foundation; New York State Assembly Minority Leader Brian M. Kolb (R,I,C-Canandaigua); and Dr. Gerald Benjamin, Associate Vice President for Regional Engagement and Director of the Center for Research, Regional Education and Outreach (CRREO) at SUNY New Paltz.

CCEC went live today with an interactive on-line platform – http://effectiveny.org – to serve as a free, 24-hour accessible informational clearinghouse for journalists, elected officials, scholars, policy advocates, citizen activists, interest groups and, most importantly, any New Yorker who wants to learn more about New York State government while affecting real and lasting change in the public arena.

Samuels, a leading good government activist and thinker in New York, said, “I have joined with Leader Kolb and Professor Benjamin, two of the state’s most thoughtful leaders on constitutional change, in this effort because we each believe that New York State should have the best and most effective state government in the nation. One of the fundamental hurdles to achieving that goal is to improve a state constitution that is outmoded and, in some cases, stands in the way of our elected leaders from doing the right thing on a particular policy issue. We want to help educate New Yorkers on how the constitution plays a role in our everyday lives and to spark a discussion on how we can best improve it.”

Leader Kolb said, “Nearly three years ago, I launched a grassroots, non-partisan effort to convene a ‘People’s Constitutional Convention’ aimed at empowering New Yorkers to make the types of fiscal and governmental changes our state government genuinely needed – changes like a State spending cap, term limits, independent redistricting, and initiative and referendum – but Albany’s broken status quo kept blocking. Today, State government has seen glimpses of reform, but New York still has miles to go before we have made good on the promise to taxpayers of a smaller, smarter, less costly and more effective government.

“I am proud to partner in this unprecedented bi-partisan reform effort with my good friend and fellow Canandaigua native Bill Samuels – one New York’s strongest and most passionate voices for good government – and Dr. Gerald Benjamin, the preeminent expert, author and scholar on New York State government and our State Constitution. The purpose of our effort is to dust off the State Constitution, advance the cause of real Constitutional change and demonstrate how such changes could make a real difference for real New Yorkers. Our goal is a more effective State Constitution that leads to more jobs, a stronger economy and true government reform so New York State can reclaim its rightful role as national leader.”

Dr. Gerald Benjamin, Director of CRREO at SUNY New Paltz said, “Almost all New Yorkers know there is a national constitution. Far fewer know there is a State Constitution. Most of us only begin to pay attention to the state constitution when an issue comes up that involves it – like gambling. We want our project to generate a broad understanding of the crucial role the State Constitution plays in how we are governed in NYS. In this time in which government reform is a front burner issue, we want to facilitate a lively, on-going debate about this core document, to remove it from the background and make it a focal point of New Yorkers’ discussion about how our state is governed, and how our government might best be redesigned to serve its people.”

As part of its educational commitment, CCEC is also sponsoring a $1,000 scholarship essay competition. The contest, managed by SUNY in direct collaboration with CCEC, is open to law students and focuses on state constitutional issues.

While any Constitutional issue can be chosen, a focus on campaign finance, redistricting or any of the topics on the home page are of special interest to CCEC. Essays selected as the strongest will be presented at a statewide conference on State Constitutional change where authors of the best will be awarded cash scholarship prizes of $1,000. To be eligible for the scholarship, essays must be between 5,000-7,500 words in length.

A panel of subject matter experts and academics will evaluate the essay submissions, and select the best papers to be presented at a daylong conference, to be held the Albany Law School in collaboration with its Local Government Law Center. Authors of essays delivered at the conference that are selected as best will not only appear on CCEC’s website, but will be eligible for an award of a $1,000 cash prize.

Dr. Benjamin, one the foremost academic authorities on the New York State Constitution, will lead an on-going discussion of constitutional issues among professors and other experts in his “Professor’s Corner.” Topics already include Casino Gambling, Constitutional Change, Convention, Elections, Ethics, Property Tax Reform and Vacancies. CCEC encourages professors and experts around the state to reach out to the Committee to participate in the discussion.

CCEC’s on-line platform features analysis of public policy issues their direct applicability and specific reference in the State Constitution. Thirty-nine policy issues are in development including the following:

• Campaign Finance Reform;
• Redistricting: Includes the subcategories “Population Deviation,” “Standards for Localities,” “Number of State Senators” and “Counting Prisoners”;
• Constitutional Change: Amendment process versus a Constitutional Convention;
• Constitutional Amendments;
• Constitutional Convention;
• Casino Gambling;
• State Budget;
• Initiative and Referendum;
• Recall of Public Officials;
• Election Administration;
• Filling of Vacancies;
• State Spending Cap;
• Unfunded Mandates; and
• Property Tax Reform

Each public policy issue section includes:

• Fast Facts, which enables the reader to get up to speed quickly on a particular policy issue and its constitutional history;
• Point/Counterpoint, which allows debate between proponents on either side of the issue on how to best address its constitutional ramifications as well as links to news articles, editorial and opinion pieces that have appeared in local media outlets and blogs across the state.
• News and Opinions Pieces covering each issue culled from newspapers and blogs across the state;
• Other States, section allowing readers to compare and contrast how other state constitutions address similar policy issues;
• Links to Relevant Legislative Amendments, that have been proposed in the New York legislature to address a particular policy issue;

More about the CCEC team

Bill Samuels, New Roosevelt Chairman

Bill Samuels, an innovative political thinker and social activist, has a lifetime of experience as a CEO, and high tech entrepreneur. Currently, Bill is managing Director of Carlyle Capital Group, the Executive Chairman of Resonant Software, a software technology company in San Francisco and the Hills Treatment Center in Los Angeles, a facility dedicated to helping people overcome addiction. http://www.newrooseveltinitiative.com/about-bill
Raised in Canandaigua, Bill’s family and political roots are deeply anchored in upstate New York. His father ran for Governor with Mario Cuomo as his Lieutenant Governor in 1974. Upon graduating MIT and Harvard Law School, Bill made the decision to engage in socially responsible businesses, turning down a job on Wall Street to start an education company dedicated to training entry-level workers who lacked the skills to get and keep a job.
Bill was one of 15 national plaintiffs in 1968 that sued the Democratic National Committee to open the Presidential Primary process. This lawsuit played a role in how the national presidential primaries have been run since 1972. In 1969, he helped start a public interest organization, Council on Economic Priorities, which made public companies’ policies on the environment, women & minority achievement, South African and tobacco concerns, labor safety and all corporate disclosure of outside financial donations and investments.
Bill was active in the movement against the Vietnam War playing a lead role in raising money to finance the 1971 Vietnam Veterans Against the War March on Washington.

After the 2000 Census, he helped finance the lawsuit challenging the constitutionality of New York’s notoriously gerrymandered redistricting plan. In the 2004 Presidential campaign, many Democrats were outraged by the huge influx of “independent” money into campaigns with the “swiftboating” against John Kerry. Bill produced a documentary to set the record straight, “Going Upriver: The Long War of John Kerry.”

As a result of the vast fortunes sunk into empty television advertising by national political campaigns Bill saw both party identification and voting plunge. In an effort to stem the tide and reinvigorate the Democratic Party Bill founded the Blue Tiger Democrats in 2004 as an innovative grassroots research organization in Michigan and New York that studied how to use civic engagement to reconnect the Democratic Party to its communities between election cycles. In June of 2006, Blue Tiger Democrats published an illustrated history of party politics with a focus on campaign finance, particularly how the anti-war and civil rights activism that opened the political party systems to the voters had the unintended consequences of empowering money.

In the 2008 elections, Bill served as Finance Chairman for the New York Democratic Senate Campaign Committee, leading to Democrats gaining control of the State Senate for the first time in decades. In this role, Bill saw up close the corrosive influence of special interest money on elections.

Recognizing the kind of fundamental structural change that is needed, Bill launched the New Roosevelt, a multi-year campaign to achieve change around “Five Pillars of Reform” including a focus on New York’s campaign finance rules: highlighting the need for public financing, lowered contribution limits with closure of loopholes that have otherwise rendered them useless, and improved enforcement, so that our State Legislature can regain the integrity, functionality and common sense the voters are demanding.

New Roosevelt built from scratch a field organization totally devoted to Albany reform. An office was opened in the Bronx and New Roosevelts executed a targeted field operation that ousted disgraced Democratic State Senator Pedro Espada.

Bill joined the 99% as a leading voice fighting the repeal of the millionaire’s tax in favor of an overhaul of the New York’s existing tax structure for one that is progressive where all New Yorkers can pay their fair share in order to support the infrastructure that business needs to thrive and grow local jobs. Bill remains focused on making the New York a leading state on key issues like campaign finance so that it can once again serve as a national example.

Bill is one of 10 children — eight sisters and one brother — and is married to Marie Samuels and has a 15-year-old daughter, Kitty. Common Cause recently recognized Bill honoring him with the Democracy in Action Award for outstanding commitment to government accountability.

Brian Kolb, New York State Assembly Minority Leader

Brian Kolb was first elected to represent New York State’s 129th Assembly District when a special election was held in February 2000 and was overwhelmingly re-elected in 2000, 2002, 2004, 2006, 2008 and 2010. On April 6, 2009, he was unanimously elected Minority Leader by his colleagues. Assemblyman Kolb’s district includes Cayuga, Cortland, Onondaga, Ontario, and Seneca Counties.

Brian’s legislative priorities include reducing taxes, improving the quality of education, fostering job creation, providing sound health care and reforming state government. He is dedicated to ensuring that residents and businesses throughout the district receive effective, responsive constituent service and timely assistance with state government inquiries. Brian’s principal goal is to be easily accessible and approachable to the people he represents. In a short time, he has gained a reputation for hard work, producing results and being very active in his district with a down-to-earth, straight-talking approach.

Assemblyman Kolb possesses a wealth of valuable private sector experience acquired as a business consultant, entrepreneur and chief operating officer of a variety of small and large technology based businesses. He is the former president of Refractron Technologies and a co-founder of the North American Filter Corporation.

Brian has demonstrated a strong commitment to education throughout both his personal life and his professional career. He currently serves as an Adjunct Professor of Adult and Graduate Education at Roberts Wesleyan College, where his students have twice selected him Outstanding Faculty Member. He is a former Chairman of the Finger Lakes Community College Foundation and is a former member of the Honeoye Central School Board and the Finger Lakes Community College Board of Trustees. Brian earned high honors while completing his Master of Science and Bachelor of Science Degrees at Roberts Wesleyan College.

Community involvement and public service have been hallmarks of Assemblyman Kolb’s background. He is currently a member of the Honeoye Chapter of the Sons of the American Legion, Ontario Charities Classic Board of Directors, member of the Ontario ARC Advisory Board, Honorary Board Member of Finger Lakes HealthQuest Foundation, a member of Merrill Hose Fire Company in Canandaigua, a member of the New York Farm Bureau, and is a Notary Public.

Brian previously served as Supervisor for the Town of Richmond, Chairman of Leadership Rochester’s Board of Directors, and as a member of the Ontario County Revolving Loan Fund Committee, the Ontario County Board of Supervisors and the New York State Public Authorities Control Board.

Mr. Kolb is a member of the National Conference of State Legislators (NCSL), the American Legislative Exchange Council (ALEC), the Heartland Institute’s Board of Legislative Advisors, the National Association for the Advancement of Colored People (NAACP), the National Rifle Association (NRA), the Shooters’ Committee On Political Education (SCOPE), the American Irish Legislators Society and the Knights of Columbus.

Brian lives in Canandaigua with his wife Lauren and has three grown children, sons Britton and Clayton, daughter Kylie, and one grandson, Everett.

Dr. Gerald Benjamin, Associate Vice President for Regional Engagement and Director of the Center for Research, Regional Education and Outreach (CRREO) at SUNY New Paltz

Gerald Benjamin joined the faculty at SUNY New Paltz in 1968 as an Assistant Professor of Political Science. He achieved the University’s highest rank in 2002 when he was appointed Distinguished Professor by the SUNY Board of Trustees. He has served as Chair of the Department of Political Science, Presiding Officer of the faculty and (for twelve years beginning in 1996) Dean of the College of Liberal Arts and Sciences.

Today, Benjamin is Associate Vice President for Regional Engagement and Director of the Center for Research, Regional Education and Outreach (CRREO) at SUNY New Paltz. CRREO is the principal locus of the college’s efforts to raise its level of engagement within communities, governments, not-for-profits and businesses across the Hudson Valley. It seeks to conduct research on regional topics; encourage faculty to build regionally based service activity into their scholarship and teaching; create and direct institutes and programs to meet regional needs; and offer conferences and programs on matters of regional interest.

Benjamin was director of the Center for the New York State and Local Government Studies at SUNY’s Rockefeller Institute of Government in Albany (1993-1995). Later he was appointed by Governor Mario Cuomo as Research Director of the Temporary State Commission on Constitutional Revision. He also was Principal Research Advisor to the New York City Charter Revision Commission that brought about extensive structural changes in that city’s government.

Between 2004 and 2006, Benjamin chaired the Ulster County Charter Commission. The work of this commission resulted in approval at the polls of the county’s first charter, which goes into effect in January of 2009. In 2007, Benjamin was appointed by Governor Spitzer to the State Commission on Local Government Efficiency and Competitiveness that this past April proposed wide-reaching reforms in local government in New York State.

Between 1981 and 1993, Gerald Benjamin was an elected member of the Ulster County legislature. He served in legislative leadership as both Majority Leader (1985-91) and Chairman (1991-93). Ulster County during this time had no elected executive; the legislative chairman was therefore the County’s Chief Elected Officer. Ulster County during Dr. Benjamin’s tenure had a budget of $165 million and more than 1,300 employees.
Benjamin earned a B.A. with distinction from St. Lawrence University. His Masters (1967) and Doctoral (1970) degrees in Political Science are from Columbia University.

More about the Citizens’ Committee for an Effective Constitution (CCEC)

The Citizens’ Committee for an Effective Constitution is a project of the New Roosevelt Foundation, Inc., a New York State Not-for-Profit, founded by Bill Samuels, that has filed for 501(c)(3) status.

DiNapoli: Replacing Defined Benefit Pension With 401(K)-Style Plan ‘Unacceptable’

State Comptroller Tom DiNapoli has issued an aggressive defense of the current pension system and – without getting into specifics – slammed Gov. Andrew Cuomo’s proposal to offer a 401(k)-style defined contribution plan as part of his Tier 6 proposal, calling the change “unacceptable” and “extreme.”

DiNapoli’s comments came at a forum sponsored by the National Public Pension Coalition at the National Press Club in Washington, D.C. on January 19, 2012.

According to a copy of the comptroller’s prepared remarks sent out by his press office, DiNapoli decried the “coordinated, sustained attacks by anti-pension advocates” that he says have “falsely cast public pensions as costly, unsustainable giveaways that are bankrupting states and localities.”

The following is the National Public Pension Coalition Press Briefing:

Happy to be here to set the record straight.

Coordinated, sustained attacks by anti‐pension advocates have falsely cast public pensions as costly, unsustainable giveaways that are bankrupting states and localities.

While some state and local plans have become significantly underfunded in recent years, this has been caused by the shortsighted past practices of their sponsoring governments.

Most state pension plans are sustainable for the long term.

The New York Common Retirement Fund is among the best‐funded and best run in America.

Annual return of 14.6% for our fiscal year 2010‐11 that ended March 31st. Fund now has fiscal year audited assets totaling $146.5 billion, the highest since the global meltdown of 2008‐09.

Even with extraordinary market volatility and the tepid recovery from the Great Recession, we remain more than ready to meet our current and future obligations.

A number of key institutional factors have buoyed our retirement system since its establishment.

Decade after decade, we have required state and local governments to make their payments to the Fund. Unlike some states that have skipped their annual payments ‐ sometimes for years – New York State has never missed a payment.

Our conservative actuarial method continues to ensure that we will always be well‐funded. Importantly, we follow this method scrupulously rather than take short cuts in difficult times.

A recurring theme in the attacks on public pension systems is that they’re “unaffordable” and that rising pension bills are eating up state and local budgets.
While contribution rates are rising, we need to put this into perspective.

According to The Center for Retirement Research at Boston College, pension contributions from state employers amount to 3.8% of state and local spending, on average. New York, the number is 2.4% of state operating funds.

The vast majority of benefits are paid by investments. Over the past 20 years, 83 cents of every dollar in benefits paid to New York retirees have come from investment returns, not employee or employer contributions (national average: 68%)

One of the myths promoted in recent attacks on public pension funds is that they are bloated with retirees making six figure pensions. Here are the facts for New York State:

Less than one‐half of 1% of our 385,000 retirees receive pensions exceeding $100,000.
The average annual New York State pension, excluding police and fire, is $19,151.
76% of our retirees receive less than $30,000 a year.

Efforts to reform or restructure state pension funds continue across the country. 39 states have made significant revisions to their pension plans in the past 18 months, including New York.

Items like the level of pension contributions and how to control overtime abuse are acceptable areas for discussion and debate. What I think is unacceptable is promoting the more extreme change of replacing DB plans with 401k’s.

401k’s were never intended to take the place of pensions. They were designed to be savings vehicles to supplement pensions and social security income. And overall, in their relatively short history, they have proven to be woefully inadequate for those who rely on them for their primary retirement income.
According to Boston College’s Center for Retirement Research, 401k plans lost a collective $1 trillion during the Great Recession.

We’ve all heard the desperate stories over the past three years of retirees whose 401k nosedived and were forced to find minimum wage jobs just to survive ‐ and who now will have to continue to work indefinitely.

If the human cost isn’t enough of a reason to be wary of moving to 401k’s here’s some more:

DB plans cost 46% less than individual 401k style savings accounts, for several reasons:

Individuals investing their own 401k pay significantly higher fees, and earn significantly lower rates of return.

Individuals must base their asset allocation on their age and whether they are nearing or in retirement, while a defined benefit plan bases its allocation on market conditions.

Individuals must save at a rate that ensures that their funds will last well into their nineties. In contrast, large institutional plans like ours have assets based on the average mortality of its members.

Moving from DB’s to 401K savings accounts would be bad for our economy as well.

The money spent by retirees collecting pensions has a stabilizing impact on the economy.

For instance, 77% of New York retirees continue to live in New York State – and the retirement benefits we pay out to them continue to be recycled into our state’s economy, constituting an estimated $6.5 billion in spending, $9.5 billion in economic activity, and $1.3 billion in property taxes paid. We can extrapolate the New York experience across the nation.

As Executive Director of the National Institute on Retirement Security (NIRS) Diane Oakley said in her July testimony before the Senate Health, Education, Labor & Pensions Committee:

“Pensions are a ‘high five’ for the U.S economy: investing $5.35 trillion in assets for the future, keeping some 5 million retired Americans out of poverty, supporting 5.3 million American jobs, and delivering retirement income at nearly 50% lower cost than individual defined contribution retirement accounts.”
Moving from DB’s to 401K’s would undermine retirement security for even more Americans and add even more uncertainty to our economy.
For all the focus on the current cost of public pensions, the erosion of basic retirement security for working Americans has the potential to be a far more significant long term problem for our nation.

Retirement security is becoming a thing of the past for too many in America.

The number of private sector employees in large and medium sized businesses who have a defined pension benefit has declined from 84% in 1980 to 30% in 2010.

As a result of this erosion in pensions, a growing number of Americans risk retiring with a substantially lower standard of living – or not retiring at all.
This year, the first of 79 million baby boomers turned 65, and the Center for Retirement Research at Boston College reports that up to 45% of them ‐ about 34 million men and women – are at risk of not being able to maintain their living standards in retirement.
The problem will only grow in the future. A recent study found that the number of Americans living past 90 will grow from 1.9 million today to more than 9 million by 2050.

We can’t afford to walk away from this problem or leave it for someone else to deal with.

In his speech in Kansas last month, President Obama gave voice to the urgency of advancing national policy to preserve the middle class – the backbone of American society.

He was right in his emphasis. We must include “retirement security” as an earned right for middle class Americans.

That’s why I am calling on President Obama to convene a National Commission to address the decline of retirement security.

First, we must do no harm. The Commission must develop strategies to assure the continued viability of solid, well‐funded defined benefit plans and identify strategies to restore the finances of plans that have fallen into disrepair.

Second, the Commission must focus on the longer‐term problem of the erosion of retirement security. And it must start its work from the simple premise that we need to ensure that people are able to support themselves when they’re no longer able to work.

The Commission’s membership should draw from representatives from labor, business, government employers, the fiduciary community, accountants and actuaries, and academia.

We must change the perception of pensions being viewed primarily as a liability and a cost to taxpayers – to what they really are: a pre‐funding of a legitimate, looming government liability and societal obligation.

If people can’t support themselves in retirement and in old age, taxpayers will foot 100% of these future costs. From a fiscal standpoint, the responsible thing to do is to prefund these costs now.

And as we tackle this issue, we need to remember that much of what we’re confronting today is the continued fallout from the market losses of 08‐09. While there was a policy decision made to pump trillions of dollars into the financial system to shore it up, there was not a policy decision made to shore up and rescue pension plans in the same way.

If that had happened, we might not be having this discussion today.

With the gridlock in Washington and the lack of resources, this type of federal intervention for pensions today is unlikely. However, at the very least, instead of joining the race to the bottom to dismantle pension systems, this is the time to preserve pension plans that are proven to work, help those that need fixing, and tackle the larger question of what can be done for those not covered by pensions.

This must become a national discussion and a national priority.

Americans’ retirement security is eroding by the day. Solutions will need years to take hold. Failure to act now will make the problem worse for future retirees, and will leave the full financial burden to future taxpayers.

Some will argue that we can’t afford to deal with this challenge. I would argue that we can’t afford not to.

Without a long term public policy strategy on pensions, we risk condemning an increasing percentage of future generations of hardworking Americans to poverty in their senior years.

We can’t allow that to happen.

Raising New York’s Minimum Wage Will Boost the State Economy

1.6 million low-wage workers would benefit; 25,000 jobs created

Raising New York’s minimum wage will boost the economy, helping 1.6 million low-wage
workers and creating 25,000 jobs, according to a new report from the Fiscal Policy Institute (FPI). Currently, New York’s minimum wage is the same as the federal $7.25 an hour. There hasn’t been a substantial increase in New York’s minimum in five years, although it rose by 10 cents in July 2009, when the last step of an increase in the federal minimum took effect.

“This is the right time to begin a phased increase in New York’s minimum wage,” said James
Parrott, FPI Deputy Director and Chief Economist and one of the authors of the new report. “Too many New York workers work hard and play by the rules but are just not paid enough to make ends meet. The recession has made it much harder for many low- and middle-wage workers to get a pay hike. Given that much of the projected job growth will be in low-wage jobs, it is essential that New York update its wage floor.”

“Our lowest-paid workers need a pay raise, and a boost will not only promote economic recovery but will help ensure that the benefits of the recovery are more broadly shared,” Parrott added. Earlier FPI reports show that New York’s economic growth over the past twenty years has been extremely polarized and that the average worker has not been sharing in the productivity growth their labors have achieved. New York State’s income distribution is the most polarized of all the states, and the disparities in living standards have grown even sharper due to the recession.

Eighteen states, from Florida to Washington, Maine to Arizona, and the District of Columbia
already have minimum wage levels above $7.25. The state of Washington leads the nation with a $9.04 an hour minimum, followed by Oregon at $8.80 and Vermont at $8.46. These three states and five others also have built an automatic annual increase into their minimum wage systems so that the wage floor regularly adjusts to consumer price increases.

The FPI report makes the case that New York’s minimum wage should be raised to a level that is slightly above the three-person federal poverty threshold, arguing that for nearly two decades (1962-1979) New York’s annualized minimum wage value averaged 108 percent of the three person poverty level. This would mean an increase in three annual steps to reach $10.00 an hour in 2014. Once that standard is achieved, the FPI report urges that New York’s minimum wage be indexed to consumer prices so that its purchasing power keeps up with rising costs in the future.

The report notes that almost all low-wage workers who stand to benefit from an increase in the minimum wage work in retail trade, food services and other local service businesses that do not compete with businesses in other states. Raising the wage floor across the board will not put any individual business at a competitive disadvantage. The retail sector will be affected the most. More than one third of retail workers would benefit, and one in every four workers affected will come from retail. Large retailers with 500 employees or more will be affected the most since they pay wages that average nearly 25 percent less than smaller retailers.

In its detailed analysis of the characteristics of workers who stand to benefit from a minimum wage increase, FPI finds that women and black and Hispanic workers will disproportionately benefit since they are more likely to be low-wage workers. About one in every six workers in New York City and in other parts of the state will benefit from a minimum wage hike.

Ninety percent of those benefiting will be adults, with teenagers accounting for only 10 percent. Low-income families with children stand to benefit significantly since 54 percent of family earnings in families with a low-wage worker and children are earned by the low-wage worker. In all, 1.1 million children in New York live in families where a worker will see higher wages due to a minimum wage hike.

The report estimates that the increased purchasing power of low-wage workers will pump much needed demand into local businesses and communities and will create roughly 25,000 new jobs in New York State over three years.

The new report is available HERE.

New York State Democrats will propose hike in state minimum wage to $8.50 an hour

Speaker Sheldon Silver confirms automatic increases will be part of proposal

by Kenneth Lovett

Assembly Speaker Sheldon Silver will unveil a plan on Monday to increase the state’s minimum wage from $7.25 to $8.50 an hour.

Assembly Democrats Monday will propose a hike in the minimum wage to $8.50 an hour, the Daily News has learned.

The plan also will include a provision for automatic increases going forward that are tied to inflation, according to sources.

The state’s current minimum wage is $7.25 an hour. It has been increased five times since 2000–the last time in 2009, when it automatically went up a dime-an-hour to meet the federal rate.

Raising it to $8.50 an hour would give New York one of the highest rates in the country, only behind such states as Oregon and Washington.

Supporters say it is needed because salaries for low-wage earners have not kept up in recent years with rising consumer costs, while businesses warn it could further hurt a battered economy.

Assembly Speaker Sheldon Silver wouldn’t provide specifics, but confirmed to he News that his majority would unveil its plan on Monday at the Capitol.

Silver, who first raised the idea on Jan. 4 in a speech just before Gov. Cuomo’s state-of-the-state address, said at the time an increase would affect 14% of the workforce, or 1.2 million people.

He called an increase the top priority this year for the Assembly Dems.

“Frankly, it is absurd to expect anyone – let alone a working family – to afford the cost of living today and be able to invest in their future on a salary of $7.25 an hour; or $15,000 a year,” Silver said at the time.

Cuomo last week had expressed openness to an increase this year.

He said he has long supported minimum wage increases, but held off taking a position on one this year until a specific plan is proposed.

Senate Republicans are considered the greatest obstacle.

They have long opposed hikes to the minimum wage, saying it hurts job growth.
On Sunday, Senate GOP spokesman Scott Reif didn’t take a position.

“Senate Republicans will continue to promote policies that encourage job growth and make New York a more business-friendly state, just as we did last year partnering with Gov. Cuomo,” Reif said.

Mayor Bloomberg, a big-time backer of Senate Republicans, has said he supports a minimum wage hike.

Stuart Appelbaum, president of the Retail, Wholesale and Department Store Union, hailed any hike to worker wages, calling it “an important step forward.”

“The way there can be an economic recovery is to put more money into the hands of the people who have very little,” Appelbaum said. “Every penny they get they are going to spend. It comes back to the economy.”

But many business groups have argued it would lead to job losses and make New York less competitive with neighboring states.

Eighteen states, including Massachusetts and Connecticut, currently have higher minimum wage rates than new York.

Catherine Abate and Robert Hayes selected as new BALCONY Co– Chairs-Join Alan Lubin to lead the Business and Labor Coalition of New York.

      

For Immediate Release: January 25, 2012

The Business and Labor Coalition of New York (BALCONY) announced today (Wednesday) that Catherine Abate, President/CEO of Community Healthcare Network, and Robert Hayes, Senior VP of Universal American, have been named new BALCONY co-chairs. They join Alan Lubin, former Senior Executive Vice President of the New York State United Teachers (NYSUT), to lead the coalition in 2012.

“Catherine Abate and Robert Hayes have strong commitments to improving the economy and social well being of New York State,” Mr. Lubin, founder and labor co-chair of BALCONY, said. “We look forward to their leadership as BALCONY continues to find common ground between business and labor on the public policy debate in our state.”

Ms. Abate is a former New York State Senator from Manhattan (1994-1998) and was Commissioner of the New York City Departments of Correction and Probation in the Dinkins administration. Since 1999, she has been President/ CEO of the Community Healthcare Network, a group of 12 Federally Qualified Health Centers in underserved communities across New York City. She will serve as the non-profit co-chair of BALCONY.

“I am impressed with BALCONY’s commitment to providing health care for all New Yorkers,” Ms. Abate said. “I will seek to add my voice to those who believe everyone in New York has the right to quality and affordable health care.”

Robert Hayes, an attorney, has been Universal American’s senior vice president for health quality since 2009. He led the Coalition for the Homeless from 1979 to 1989 and was president and general counsel of the Medicare Rights Center. Hayes also served as Associate attorney at Sullivan & Cromwell and was Special Counsel at O’Melveny & Meyers. Mr. Hayes is a MacArthur Foundation fellow. He will be BALCONY’s business co-chair.

“BALCONY advocates for the diverse needs of our state and that we must work together to create jobs and a sound economy. I am pleased with the opportunity to serve with Catherine Abate and Alan Lubin to help BALCONY grow and have a positive impact,” Mr. Hayes said.

Mr. Hayes and Ms. Abate replace BALCONY co–founder and business co-chair Bruce Ventimiglia, who had been the business co-chair since BALCONY was formed in 2006. Mr. Ventimiglia is relocating to Arizona, where he will continue to serve as the Chairman, President and Chief Executive Officer of Saratoga Capital Management, LLC.

“Bruce was instrumental in the launch and success of BALCONY as he brought the business common sense and common ground approach to our coalition, he will be sorely missed” Mr. Lubin said.

“I am delighted that I had the opportunity to serve BALCONY. BALCONY has worked, and will continue to work, diligently to develop solutions for the major issues that New Yorkers and our fellow Americans are confronted with. It has been a pleasure to serve with my fellow Co-Chair, Alan Lubin, BALCONY’s Director, Lou Gordon, and the BALCONY staff. Alan and I were able to find common ground between business and labor and proposed solutions for many key issues; and, while Alan and I didn’t always see eye-to-eye on issues, Alan approached all of the issues we worked on together with passion, sincerity and integrity. Lou, I am certain, will continue to work tirelessly to build bridges between business and labor to help move the great state of New York forward. I wish Catherine and Robert much success in their new BALCONY roles; they are eminently qualified for their new positions. Finally, I will leave New York with many wonderful memories that have been accumulated over my 21 years here. I look forward to supporting BALCONY from beautiful Arizona, and I wish my fellow New Yorkers peace, prosperity and good health,” Mr. Ventimiglia stated.

BALCONY represents more than 1,000 businesses, non-profits and labor unions seeking common ground in the public policy debate in New York State. BALCONY makes no campaign contributions nor endorses any candidates.

UFT Ad Slams Bloomberg’s Record on Education

UFT Blasts Bloomberg On Teacher Evaluations

BY Celeste Katz

The city teachers union is blasting Mayor Bloomberg’s education record in a television attack ad that’s airing amid the tense standoff over teacher evaluations.

(Click HERE for the Ad)

Our Ben Chapman reports:

More than eight million viewers are expected to see the union’s 30-second spot, which pulls no punches in its critique of the mayor’s education reforms.

“Ten years as Mayor, and Mike Bloomberg still doesn’t get it,” begins the narrator’s criticism of Bloomberg’s record on schools, starting with his appointment of Cathie Black as schools chancellor.

“Fudged education test scores, closing schools, parents shut out of the process,” the somber voice continues, over a montage of photos of city students.

The ad — which doesn’t specifically mention the evaluation controversy — finishes with a harsh message to the mayor, who hasn’t been on speaking terms with the teachers union since Dec. 30, when city officials walked away from talks on instructor evaluations.

“If you really want to do right by our kids, you’ll work with teachers and parents and stop playing politics with our schools,” the voice says.

City officials hit back at the union’s $1 million ad, calling it a “political stunt” that distracts the public from the real issue of teacher evaluations.

“The Mayor, Governor, and State Education Department are working collaboratively to implement a rigorous teacher evaluation system,” said Bloomberg spokeswoman Lauren Passalacqua, adding: “It’s a shame that the UFT continues to block accountability measures that will help students.”

The city stands to lose nearly $60 million in federal aid for 33 failing schools because city officials and the union were unable to reach a deal on instructor evaluations.

At the state level, the lack of a comprehensive evaluation system for teachers and principals threatens nearly $1 billion in federal education money.

Despite signs of a thaw at Monday’s legislative hearing on Gov. Cuomo’s education budget, on Tuesday city union and education officials said they still had not met to discuss the issue.

Public Pensions Are Not the Enemy by NYAFL-CIO President Mario Cilento

Public pensions are not the enemy
So why does Gov. Cuomo’s plan vilify middle class retirement security?

By Mario Cilento / NEW YORK DAILY NEWS
Published: Wednesday, January 25 2012, 4:24 AM

We hear all the time about exorbitant public-sector pensions, which leads many to believe mistakenly that retired nurses, firefighters, teachers and others are wealthy. We don’t hear that the average benefit for a member in the largest plan in New York — the New York State and Local Retirement System — is $19,000 a year, or that 76% of these pensions are less than $30,000 a year.

There is no doubt that state and local governments face difficult budgetary decisions, which has fairly brought all spending under greater scrutiny. But some corporations and their messengers have tried to capitalize on the pressure created by the short-term economic crisis to advocate for the permanent decimation of benefits in the public sector. They seek to complete the rollback of pensions and the shift to insufficient 401(k)s that has already taken place in the private sector — driving a stake in the heart of the defined benefit pension as we know it.

This is audacious, considering that corporate greed and misconduct caused the collapse of the economy, the budget crisis and billions in pension losses in the first place.

Now, even though it will not produce any savings to help address the current budget deficit, Gov. Cuomo’s executive budget includes a new pension tier with an “optional” 401(k).

In reality, there is no option in this plan, as the new tier would obliterate the defined benefit plan, slashing payouts and making employee contributions unaffordable. The new defined benefit “option” would require employees to work longer, pay up to double in base employee contributions and pay even more if the stock market declines — all to get less in their pension. What sense does that make?

The 90 years that the state has been providing pension benefits demonstrate that the system works. Pensions are long-term vehicles that should not be overhauled with every change in the political wind.

It’s not as though public employee unions are resisting any and all change. They did their part and agreed to a new pension tier just two years ago that is projected to save $35 billion over 30 years. This is on top of wage freezes, furloughs, increased health contributions and layoffs.

But where they draw the line — as well they should — is in eviscerating retirement security entirely.

Far too many workers have learned the hard way that a 401(k) is not the answer to long-term economic security. Such retirement plans place all the risk on the shoulders of workers. If Wall Street collapses when they retire, they’re simply out of luck.

There’s another problem: cost. I don’t doubt the ability of working men and women to decide how to successfully invest their retirement savings — provided they can afford professional assistance. They’ll have to add that burden to the cost of rent, utilities and prescriptions.

A financially secure retirement is slipping away from the American worker. According to the National Retirement Risk Index, a project of the Center for Retirement Research at Boston College, more than half of American workers are at risk of not being able to maintain their standard of living in retirement. This retirement insecurity comes at a time when the number of people with pensions has declined, particularly in the private sector, with 401(k)s becoming many workers’ sole retirement savings vehicle.

Yet, although data from multiple sources indicate that 401(k)s are inadequate, their stranglehold continues in the private sector — and that dominance is used as the rationale for reducing public-sector pensions. It’s a race to the bottom that’s inappropriate and unconscionable.

Cilento is president of the New York State AFL-CIO, the largest state labor movement in the country, representing 2.5 million workers in 3,000 union affiliates throughout the state.

Read more: http://www.nydailynews.com/opinion/public-pensions-enemy-article-1.1011290#ixzz1kV7jn7pL

News Release: NYSUT recognizes budget strong points; hits proposed tie to evaluations

ALBANY, NY – New York State United Teachers today said it shares the commitment of the governor and Legislature to improve the efficiency and performance of public schools. However, the union said three consecutive years of decreasing education budgets — including last year’s $1.3 billion cut — and the looming tax cap are making that job difficult, forcing districts to increase class sizes; chop course offerings; and eliminate 20,000 teacher and staff positions.

NYSUT credited the governor and Legislature for taking decisive action to close the state’s budget deficit and to begin restoring fairness to the state’s tax code. The state’s largest union, however, said other portions of the 2012-13 budget — including $250 million for competitive grants and tying districts’ state aid increases to completion of teacher and principal evaluation plans — are problematic.

“They create a level of uncertainty that, when combined with the tax cap, make it very difficult for districts to plan their own budgets and provide the programs and courses our students need,” said NYSUT President Richard C. Iannuzzi.

NYSUT Executive Vice President Andrew Pallotta, in testimony before the Senate Finance and Assembly Ways and Means committees today, said the budget’s proposal to strip out $250 million for competitive grants would leave only a 2.9 percent average overall increase, with many districts getting less. Because the performance grants would be released in the 2012-13 school year, it’s unlikely that districts could plan for and use the funding during the 2012-13 school year.

“Simply put, an over-reliance on competitive grants undermines the state’s ability to meets its moral and constitutional obligations to provide a sound, basic education to every child,” Pallotta said. “Without significant additional aid, and a reasonable adjustment to the tax cap for costs beyond the control of districts, many schools will continue to lack funding for current programs. That hurts students, and our efforts to end the achievement gap.”

Pallotta also criticized a new Tier 6 proposal, which he called a “funding scheme that would force new employees to shoulder more financial burden in lean times, with the hopes of recouping that lost income in good times.”

“Those are our students, the next generation of teachers, nurses and first responders, and we don’t want to see their retirement security destroyed,” Pallotta said.
He said the governor’s pension plan comes only two years after NYSUT and other unions agreed to save the state and localities $35 billion over the next generation through creation of a Tier 5.

Pallotta said that, while the governor promoted Tier 6 as “only for new hires, the unborn,” it would actually undermine the retirement security of current retirees and those in other tiers by diverting dollars into 401-k plans, thus jeopardizing the long-term stability of the pension fund.

Pallotta also urged the joint fiscal committees to restore funding for teacher centers, which provide essential professional development and were a key part of New York’s Race to the Top application. He also noted that New York libraries are currently funded at $79 million – or at 1994 levels.

NYSUT, the state’s largest union, represents some 600,000 classroom teachers and other school employees; faculty and other professionals at the state’s community colleges, State University of New York and City University of New York, and other education and health professionals. NYSUT is affiliated with the American Federation of Teachers, National Education Association and AFL-CIO.

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