Mayor Bloomberg Delivers 2012 State of the City Address – NYC: Capital of Innovation

The following is the text of Mayor Michael R. Bloomberg’s 2012 State of the City address as prepared for delivery at Morris High School in the Bronx.

“Thank you. Mayors Koch and Dinkins, Speaker Quinn and Minority Leader Oddo, Public Advocate De Blasio, Comptroller Liu, Borough Presidents, District Attorneys, members of the City Council and State Legislature, my fellow New Yorkers – it’s great to be in the Bronx.

“This is the birthplace of legends like Justice Sonia Sotomayor and the workplace of legends like Mariano Rivera. And it’s also the home of future superstars like every member of The Celia Cruz High School Latin Band, the PS 32 Chorus and the Keltic Dreams Irish Dancers. Weren’t they fantastic?

“In a city that is the ‘Capital of Innovation’ – this one borough has given us some of the world’s great authors, artists and architects, not to mention the pioneers of hip-hop and salsa.

“The Bronx has always been a borough of innovators and we can see it most recently in the students here at the Academy for Collaborative Studies, who built an award-winning robot. How about the Robot Club?

“It’s an honor to be introduced by a teacher like Ishmael Kamara, what an inspirational story, and by Borough President Ruben Diaz, Jr., who we’ve been glad to work with on so many projects. And it’s a pleasure to be here at Gouverneur Morris High School Campus.

“In case you don’t recall Senator Gouverneur Morris from American history class, he was a Founding Father from this section of the Bronx – hence ‘Morrisania’ – and he’s credited with drafting much of the U.S. Constitution, including the phrase that still defines the spirit of our great nation: We the people.

“That’s the spirit that has defined our work here in New York City over the past decade and allowed us to accomplish great things.

“For instance, in 2011, we said we’d fight to make marriage equality a reality across the state. And thanks to the leadership of Governor Cuomo and both parties of the Legislature, and the hard work of my Chief Policy Advisor John Feinblatt – we did. Today, New Yorkers are free to marry the person they love.

“In 2011, we said we’d work with the State to bring taxi service to all five boroughs. And again, thanks to the Governor and legislative leaders, especially Bronx Assemblyman Carl Heastie, and also David Yassky and Micah Lasher – we did.

“We said we’d launch a new East River ferry service, balance the budget and hold the line on taxes. And in partnership with Speaker Christine Quinn and the City Council – we did.

“We said we’d make New York City safer and healthier than ever and with Commissioners Kelly, Cassano, Farley and Sadik-Khan leading the way, we did.

In 2011, we had the lowest traffic fatalities in history, near record lows in crime and fire fatalities and life expectancy rates that are far surpassing the nation.

“We said we’d place a record number of New Yorkers in jobs and with Commissioner Rob Walsh leading our Small Business Services team, we did.

“We said we’d launch the most comprehensive effort to connect black and Latino young men to jobs and education, and thanks to Deputy Mayor Linda Gibbs and our commissioners, and the support we received from George Soros, we did.

“We said we’d seek to attract a world-class university to build a new science and engineering campus here – the brainchild of EDC President Seth Pinsky and Deputy Mayor Bob Steel – and we did.

“We said we’d open the new section of the High Line, break ground on the new Whitney Museum and complete the expansion of the Museum of the Moving Image, and because of the leadership of Commissioners Amanda Burden, Kate Levin and Katherine Oliver, we did.

“And we said we’d open the 9/11 Memorial in time for the 10th anniversary of the attacks, and thanks to a great American who served this country in World War II and has served our country and our city ever since – John Whitehead – we did.

“Thanks to all these leaders, and so many other members of the city’s outstanding workforce and all of our partners in the private sector. We accomplished big things in 2011 – but don’t worry: we have even bigger plans for 2012.

“The beginning of our agenda for the year ahead is actually rooted here, in the history of this school. Gouverneur Morris High was created out of the School Reform Law of 1896 – 116 years ago. When the reform law was being debated, there were protests, rallies, controversy. Sound familiar?

“Well, we are here today because the work of school reform – as difficult as it can be – is still far from done. And it is now more important than ever.

“Nine years ago this month, on Martin Luther King, Jr.’s birthday, I gave a speech outlining our plans to transform a badly broken school system. Back then, the graduation rate had been stuck at 50 percent or less for decades. Violent crime, social promotion, hiring based on political connections – they all plagued our schools. Parents had too few choices about where to send their children to school, and they had even less information about how a school was performing. And the worst part was many people had stopped believing that anything in our schools could get better.

“Well, I know you didn’t believe that. And we didn’t believe that either. Together, we took on the broken system, and by stressing accountability and innovation and ending social promotion, we’ve made real progress turning it around.

“Today, graduation rates are up 40 percent since 2005, versus just 8 percent in the rest of the state – the whole rest of New York State. And the biggest gains have been made by black and Hispanic students, whose graduation rates are up more than 50 percent. We’ve cut the dropout rate – and school crime – nearly in half.

“And we’ve given our parents far more information about their kids’ schools – and far more top-quality school choices. In fact, a recent study by the non-partisan Brookings Institution found that we now have the most effective school choice program of any large district in the country. That’s right – the most effective in the United States of America.

“By almost any measure, students are doing better and our school system is heading in the right direction. Of course, we still have a long way to go. No doubt about that. But today, tens of thousands of students who may have ended up on street corners or in prison if the old system had remained in place – are now in college or starting their careers.

“Just think about where we are today. Ten years ago, the graduation rate here at Morris High was only 27 percent. Now, two-thirds of students graduate in four years, and three-fourths graduate within six years.

“And I have to say, those students who persevere beyond four years – often while dealing with family obligations or language barriers – really deserve to be celebrated because their determination and drive, their hunger for a better life, makes their accomplishment even more impressive. We have some students with us today who are on track to graduate, and I’d like to ask them – and their teachers and administrators – to stand up.

“The success our students have achieved demonstrates the promise of education reform. But the unemployment in the neighborhood surrounding this school demonstrates the urgency of fulfilling that promise now for all students, in all schools throughout our city. Unemployment is higher in the Bronx than in any other borough. People here want to work, but jobs are hard to come by. And in too many cases where jobs do exist, they require skills and diplomas that put them out of reach for many people.

“For my generation, a high school diploma was often enough to get a good job and enter the middle class. Today, graduating from high school without the grades to go to college, or the skills to enter a trade, generally means, at best, a low-wage job with limited prospects.

“Or, for far too many, it means beginning a life of unemployment and crime. We just cannot allow that to happen. If you come from a middle class family, as I do, and if you believe that education is the ticket to the middle class, as I do, then there is no escaping the fact that we cannot accept failing schools. And we cannot accept excuses for inaction or delay.

“All across the city, we face that same challenge – the challenge of building a 21st century economy and building the 21st century public schools that can drive it. It is the challenge of our time, and how well we meet it will define the state of our city for generations to come. So today, I’d like to share with you the new strategies we will adopt in 2012 to meet that challenge, and they all center on making our schools, our economy and our government the most innovative in the world.

“Let’s start with our schools. The education reforms we’ve pioneered over the past decade – no matter what the naysayers say – have been widely adopted by school systems across the nation, but this year we’ll be putting our foot on the gas and picking up the pace.

“Because we have to be honest with ourselves: we have only climbed halfway up the mountain, and halfway isn’t good enough. We want all of our children to see the view from the top, to see the world of possibilities that stretch out before them.

“Now, getting there won’t be easy. The climb gets steeper the higher you go. But we cannot allow fear of what lies ahead to stop us, we cannot allow obstacles to slow us down, and we cannot allow those who prefer the comforts of the base camp to the exhilaration of the summit to hold us back. We have to charge ahead. Our children deserve to make it to the top of the mountain. And we owe it to them to help guide them there. Today, with Chancellor Dennis Walcott leading the way, we are setting off for the summit, a summit that no other big city in America has ever reached. But if any city can, it’s New York City.

“The course we are charting involves five main steps – and let me briefly outline each.

“Step number one: since the single most important factor in a student’s progress is the effectiveness of the classroom teacher we are going to find new ways to attract, reward and retain great teachers.

“We already have thousands of great teachers – some of the best in the world. And I have enormous respect for the extraordinary personal investments they make in their students. Over the past ten years, we’ve worked hard to invest in them – by expanding professional development and raising their base salaries by 43 percent. A teacher hired in 2002 at a starting salary of $31,000 can now make $78,000, similar to what their peers in the suburbs make.

“This year, we’ll do more to attract great new teachers by helping them with their college loans. The burden of paying back college loans can sometimes lead top-level students to cross teaching off their list of possible careers. But we need their talents in our classrooms. Our kids need them.

“And so we are proposing to create an incentive to anyone who finishes college in the top tier of the class: come teach in our schools, and if you commit to stay, we’ll pay off up to $25,000 of your student loans. Our teachers deserve that, and so do our children.

“The marketplace keeps showing us that we have to be competitive if we’re going to attract the best and as everyone knows college loans have become a major issue for our young people. We expect the UFT will support the Department of Education in this effort. But if not, there are other ways to achieve it through the private sector. One way or another, we will attract those talented teachers.

“We’ll also work to retain the best teachers – by offering them a big raise. Today, we’re making an offer to all New York City teachers: If you are rated highly effective for two consecutive years we will hike your salary by $20,000 per year.

“Historically, teachers unions around the country have opposed rewarding great teaching through merit pay, but more and more teachers are asking why, and we’ve seen how well this can work in other cities. A recent article in the New York Times explained how cities with merit pay have found that rewarding great teachers keeps them from leaving the system. Again, our teachers deserve that. And so do our children.

“With an evaluation system now required by law, rewarding great teaching is an idea whose time has come. We hope the UFT will join us in this effort, because it’s the right thing to do for our schools and our teachers. Their excellence deserves to be rewarded and compensated.

“Now, how do we determine which teachers are highly effective?

“Well, that brings us to step number two in our journey to the mountaintop. And here again, we’re building on the work we’ve already done. Two years ago, we directed principals to adopt a more rigorous tenure evaluation system. It used to be that 97 percent of teachers got tenure as a matter of course. Many of them deserved it. But others did not. Tenure should be something that is earned – not automatically granted.

“And now, that is exactly what’s happening. Principals decide who should and should not get tenure with the school superintendent signing off.

“Last June, the percentage of teachers receiving tenure dropped from almost everyone receiving it – 97 percent, to about half who received it – 57 percent. That doesn’t mean the rest won’t earn it someday – we hope most will. We have a big investment in them. But we are raising the bar for teachers, just as we are for students.

“This year, we’ll do more to make sure every classroom has an effective teacher – and to remove those who don’t make the grade.

“Unfortunately, for all the changes we’ve made in our schools, evaluating teachers is one area where nothing has changed. Teachers continue to be rated simply as ‘satisfactory’ or ‘unsatisfactory.’ It’s a pass/fail system – with a 98 percent passing rate. Our students don’t have the luxury of being graded pass/fail. Neither do people in other professions, who have to make a living to feed their families. And neither should our teachers.

“The debate over teacher evaluations began when the Obama Administration rightly made them part of the Race to the Top grant competition. To qualify for the money, the State passed a law requiring districts to adopt teacher evaluation systems, but gave the unions veto authority. As Governor Cuomo recently said, the law hasn’t worked. Like many other districts around the state, we are at an impasse.

“And let’s be clear about what the stakes are: A recent study by Harvard and Columbia economists found that students with effective teachers are less likely to become pregnant, more likely to go to college and more likely to get higher-paying jobs. Nick Kristof has a column about it in today’s Times and I encourage everyone to read it. Great teachers make an enormous difference and ineffective teachers are hurting our students’ futures – we can’t allow that.

“We need to be able to identify those ineffective teachers and give them the support they need to grow. And if that doesn’t work, we need to be able move them out.

“A real evaluation system that is based on measurable improvement in student performance and principal assessment and allows us to make real changes is the only way we can do that.

“We have a model that works well in deciding tenure – and this should be exactly the same process. But when we tried to get approval for such a system for just 33 struggling schools – 33 out of 1,700 – the UFT insisted on provisions that would make it even harder to remove ineffective teachers. Not easier, but harder. As a result, those 33 schools lost $58 million in School Improvement Grants from the State. And if nothing changes, it could cost students in every borough hundreds of millions of dollars in federal Race to the Top funds.

“Well, I can tell you this: We’re not going to accept that. We’re not going to wait around while ineffective teachers remain in those schools.

“Under a school turnaround program already authorized by Federal and State law and consistent with a provision of the existing union contract, the City can form school-based committees to evaluate teachers on merit and replace up to 50 percent of the faculty.

“Under this process, the best teachers stay; the least effective go. And now, that is exactly what will happen.

“We plan to move forward with this approach for the 33 schools that should’ve gotten state grants. We believe that when we take this action, we will have fulfilled the State’s requirements and the schools will be eligible for the $58 million in funding.

“But this is about much more than the money. The students in those 33 schools deserve effective teachers. And so does every student in every school. Our 1.1 million school children can’t afford to wait. There is too much at stake.

“They are counting on us – and we will not let them down.

“Now, step number three in our journey involves continuing to give parents even more top-quality school choices.

“The four new schools here at the Morris campus are among the 500 new schools we’ve created over the past decade, including 139 new charter schools. This year, we’ll phase out another 25 schools and open smaller schools in the same buildings.

“All told, our goal is to open 100 new schools over the next two years – including 50 new charters. And we’ll do that by asking our most successful charter school operators to expedite their expansion plans, including the KIPP Academy and Success Academy networks.

“We’ll also begin recruiting high-performing charter school operators who have yet to come to New York. And I’m glad to announce today that one of the most successful, Rocketship, has just committed to opening schools here.

“Step number four in our journey will prepare students for what awaits them at the top: college and careers.

“Today, far too many of our graduates are leaving without the skills they need to succeed beyond high school. Not every student wants to go to college, nor is college right for everyone. But all students should leave prepared to succeed in the next phase of their lives.

“Over the past year, we’ve worked with the State to re-align the Regents exams with college readiness standards, and that will happen in the years ahead. But our students cannot wait.

“In the weeks ahead, we will make every public school student complete new study lessons and assignments in both Math and Literacy that involve the kind of critical thinking skills that are aligned to college readiness standard and we will share the results of their work with parents at parent-teacher conferences this March.

“We’ll also begin doing intensive college and career readiness work with 40 additional high schools as part of our Young Men’s Initiative. And the Department of Education will continue forming partnerships that expose our students to exciting career pathways.

“For instance, last September, we opened an innovative new school in partnership with IBM that focuses on computer science. It’s a six-year high school – grades 9 through 14, that’s right: 14 – so students graduate with a Regents degree and an associate’s degree and they also get a place in line for a job at IBM.

“It’s a new way of thinking about secondary school based on today’s economic realities.

“And now, thanks to support from CUNY, we plan to open three more schools using this same model including one right here in the Bronx. In addition, with support from venture capitalist Fred Wilson, this September we’ll open a Software Engineering Academy, the brainchild of one of our own teachers – Mike Zamansky from Stuyvesant High School. We’re honored to have both Fred and Mike with us today.

“The new school will be located in Union Square – home to a growing tech community that includes companies like Yelp and General Assembly. Those are the kinds of companies we want our students to work for, or to start.

“And to encourage the next generation of entrepreneurs in every field, we’ve launched a pilot program for 2,200 students who are developing business plans with other students around the world.

“Over the next two years, we’ll open at least a dozen new Career and Technical Education schools and programs aligned with trends in the global economy. Students will get out-of-school internships tailored around their coursework and interests. Now to do this, we need more private sector partners.

“In recent weeks, many of our city’s leading corporate citizens have joined a new mentoring program for high school students called i-Mentor. It’s part of our innovative new effort with NYC Service to reduce school truancy.

“And now, I am issuing a second challenge to them – and to the leaders of our hospitals, hotels, nonprofits and small businesses of every kind, including our growing tech community: join us in this new effort to connect high school students to career paths. One of the companies that has already agreed to participate, I’m proud to say, is Bloomberg LP.

“I can tell you from personal experience how much an internship means. When I was in high school, I was lucky enough to get a job working at an electronics company. That job is the only reason I applied to Johns Hopkins University – and without it, I’m not sure where I’d be today.

“The fifth and final step of our journey to the educational mountaintop is making sure that when our children are ready to continue their education or training, they can afford to do it. This year, under a new partnership with the Obama Administration, we’ll be informed about which of our students hoping to attend college failed to apply for Federal financial aid – and we’ll help make sure they get their applications in.

“We’ll also help lead the charge for the New York State Dream Act, so children who were brought here illegally can apply for State-sponsored college loans, grants, and scholarships. We can’t blame them for being brought here as infants or teens. And since they are here to stay, it’s in New York City’s best interest to make sure they are able to become productive members of society.

“I took out loans to get through college, so I know how important that money is. And I believe that all of our students should be eligible for the financial aid they need to succeed. The five steps I just outlined aren’t about politics. They’re about children.
“When we sit down with the UFT, there are two groups in the room: the UFT and our school children – they are who we work for and we will. We have an obligation to stand up for their lives, their futures, their hopes and dreams. Their voice is the voice we listen to and I thought all of us should hear it today.

“Those are the leaders of tomorrow: the doctors, the lawyers, the mayors. They will lead the economy of tomorrow, if we give them the tools to do it and if we begin building that economy right here and now.

“That’s the second major challenge I’d like to address: making our economy a global capital of innovation for the 21st century. Last month, we took a big step toward re-defining our economic future by forming a historic partnership with Cornell University and The Technion – Israel Institute of Technology to build a new science and engineering campus on Roosevelt Island.

“Building the new campus will generate up to 20,000 construction jobs and 8,000 permanent jobs, not just for PhDs, but for building staff and office workers. Cornell and Technion will also create educational programs for 10,000 New York City students and 200 teachers annually – a partnership that will begin this fall.

“It’s going to be a transformative project – and today, we’re glad to be joined by the Dean of Computing and Information Science at Cornell, Daniel Huttenlocher and the Director General of the Technion, Dr. Avital Stein. As we work to create the jobs of tomorrow, we’ll also plan for and create the space that the companies of tomorrow will need to grow.

“In Lower Manhattan, we’ll work with Pat Foye and David Samson at the Port Authority to keep progress going on the new towers at the World Trade Center. On the far West Side, we’ll work with Related to continue bringing new jobs and housing. And we’ll complete the Signature Theater’s new home on 42nd Street.

“In the area around Grand Central, we’ll work with the City Council on a package of regulatory changes and incentives that will attract new investment, new companies and new jobs. To expand space for film and digital media companies, we’ll open a new incubator that will help us build on last year’s record success in film and television and continue to compete with Hollywood for post-production business.

“And we’ll launch a new non-profit called ‘Space Works’ that will create long-term affordable rehearsal and studio space for artists citywide, including on Governors Island.

“As we plan for future growth, we’ll also create the jobs New Yorkers need today.

“Here in the Bronx, the first wave of 2,000 construction workers will break ground on New York’s next great shopping destination: Eastchester’s $270 million ‘Mall at Bay Plaza.’ In Port Morris, Smith Electric Vehicles will open its first East Coast plant and more than 100 New Yorkers will go to work assembling zero-emission trucks and vans.

“A new supermarket, stores, offices and a new charter school will bring 200 new jobs to a long-vacant spot at the Bronx Hub on 149th Street. We’ll begin renovation work on the Bronx River Art Center, creating a new media center, photography studio and gallery.

“We’ll begin re-zoning East Fordham Road to allow for more private sector investment and explore economic development possibilities on Webster Avenue. To do that, we’re working with a group of neighbors we call the Bronx Quad: the New York Botanical Garden, the Bronx Zoo, Montefiore Medical Center and of course, the emerging basketball powerhouse, Fordham University.

“We’re also stepping up efforts to keep some 3,600 good-paying jobs where they belong – at the Hunts Point produce market. New Jersey is making a big pitch to lure the market away, but we’re fully committed to modernizing the market and keeping those jobs here.

“So today, in partnership with Council Speaker Christine Quinn, we’re adding another $25 million to what will now be the City’s $87 million commitment to re-building the market. And that’s not the only big news here in the Bronx.

“We’re also launching a new effort to bring jobs to the most talked-about empty building in the Bronx: The Kingsbridge Armory.

“In collaboration with Borough President Ruben Diaz, Jr., today, we are releasing a Request for Proposals for a new operator of the Armory. We’re putting aside our differences to do what’s best for the city. That’s what leadership is about. It’s not about a series of running arguments – it’s about getting things done.

“We’ve heard from a variety of interested parties, including those who want to develop it into recreational space. And we’re hopeful that the Kingsbridge Armory, vacant for some 15 years, will soon be transformed into a place that benefits the community and employs community members.

“In every borough in 2012, we’ll bring new jobs on line and make investments that will attract more visitors.

“In Queens, Jet Blue will open its new headquarters in Long Island City and an expansion of the Queens Museum of Art will double its size. On Staten Island, we’ll create a new blue-collar-friendly industrial business zone, we’ll redesign the zoo’s aquarium, and we’ll help break ground on a major apartment and retail development at the Homeport, creating more than 1,100 construction jobs.

“In Brooklyn, more good blue-collar jobs will come to the waterfront both in Sunset Park and at the Navy Yard. We’ll bring new jobs to Coney Island, with new rides and attractions. And we’ll open the new Barclays Center at Atlantic Yards – bringing big league sports back to the borough where they belong.

“These new attractions will also help bring even more tourists to our city – and last year we hit a record 50 million, but we can do even better.

“There are countless foreign tourists who seek to come to our city only to find it painfully difficult to secure a visa. That pain is not only hurting them – it is hurting us by costing us jobs. At a time when so many people are out of work, that’s just unacceptable.

“This year, we’ll work with Senators Schumer and Gillibrand to make it easier to get tourist visas, especially for those coming from growing markets like India, China and Brazil. Millions of people from around the world want to come here and spend money in our hotels, restaurants, stores and attractions. We shouldn’t stand in their way.

“Now, as we create these new jobs, we’ll also do more to help New Yorkers fill them. Last year, the City’s Workforce One Career Centers made a record 35,000 job placements. This year, we’ll help even more New Yorkers find work with four new Workforce One Centers, in all three public library systems.

“We’ll help more immigrants who are skilled professionals obtain the licenses and certifications they need to find work here in the city. We’ll create a new incubator that will offer foreign entrepreneurs the tools and legal support they need to develop their businesses here. And we’ll increase opportunity for the City’s minority- and women-owned businesses, so that those firms compete for and win more City contracts.

“Most important of all, we’re going to mount a major new effort to help the New Yorkers who’ve defended our nation’s freedoms find the jobs and housing they deserve.

“Today, there are some 9,000 unemployed veterans in our city. There’s no excuse for that. And that’s why this year, with the help of the Robin Hood Foundation, our Workforce One Centers will offer new services to connect veterans to jobs.

“We’ll also work with a property manager called Urban American to attract more private landlords to the rental discount programs they run for returning veterans. Our men and women in uniform have stood up for our country. Now it’s our duty to stand up for them.

“The cost of housing is something many New Yorkers struggle with. Since the national recession hit in 2007, the cost of living in New York City – like nearly everywhere else – has gone up. And not just housing, but food, transit and all the key parts of a family’s budget. But there’s one thing that in all fairness hasn’t gone up: the ability of those at the bottom of the economic ladder to pay for those essential needs.

“In America, we want people to work – to set the alarm clock and punch the time clock. That’s why we incentivize work through programs like the Earned Income Tax Credit. You work, we help.

“The minimum wage is another way to help those who can only find jobs with entry-level wages by incentivize and reward work. Like the EITC, it helps those who are trying to help themselves. But setting the minimum wage is also a balancing act – setting it high enough so people can get by on it without having a negative economic impact.

“Right now, I believe, we are slightly out of balance. The genius of the free market is not always perfect. Two of our neighbors – Connecticut and Massachusetts – have raised their minimum wage above the Federal standard to address higher costs of living.

“And so while we would prefer the Federal government to act to keep us competitive, this year, we will join Speaker Shelly Silver in pushing for a responsible raise in the minimum wage.

“Our city just cannot afford to wait for Washington. Not when it comes to illegal guns, not when it comes to climate change, not when it comes to creating jobs and not when it comes to raising the minimum wage.

“Now, some economic studies have shown that raising the minimum wage can reduce youth employment. And so we’ll work to counter-act that by continuing to increase our Summer Youth Employment opportunities. And to really drive at the heart of the unemployment problem, we’ll go to the neighborhoods where the problem is worst, like here in the South Bronx, and in Central Brooklyn.

“We’ll launch a new effort to mobilize businesses, community groups, non-profits and City agencies to create new job opportunities in these communities. For instance, in partnership with the Young Men’s Initiative, we’ll develop opportunities for New Yorkers to ‘earn while they learn’ the skills required by the knowledge economy. We’ll also create incubators specifically to help low-income entrepreneurs get off the ground.

“If we can succeed in raising employment in the most distressed neighborhoods – and I believe we can – then we can not only improve people’s lives, we can not only improve the safety and stability of those neighborhoods, we can build on the work of the Center for Economic Opportunity in helping the next generation of residents break the cycle of poverty that has plagued those communities for too long.

“If ever there was a community that knows how powerful targeted city investments can be, it’s where we are today, the South Bronx.

“This area was once so burned out and abandoned that it was compared to Dresden after World War II. Today, the South Bronx is a poster child for urban revitalization, and one of the people who really deserves enormous credit for that is with us today: Mayor Ed Koch. Thank you, Ed.

“Mayor Koch showed that investment in affordable housing is a key element of a successful economic development agenda. Over the past decade, we’ve created or preserved 30,000 units of affordable housing here in the South Bronx alone and more than 150,000 units across the city.

“This year, we’ll take steps to bring more affordable housing to the Lower East Side around Delancey Street to a site that has sat largely vacant for a half-century. We’ll begin building new affordable housing and retail space on Livonia Avenue in East New York, at Hunter’s Point South in Queens, at Randolph Houses in Central Harlem and across the entire NYCHA system, we will significantly reduce the backlog of repairs that has resulted from sustained Federal budget cuts. This is a key part of our strategic plan to improve services to NYCHA’s residents and preserve public housing for generations to come.

“A NYCHA community will also be the site of one of our newest waterfront reclamation projects. Using land that now lies mostly vacant, we’ll begin working to create 2,300 units of housing, a waterfront park and a supermarket next door to the Astoria Houses on the East River.

“All across the city, we’ll continue reclaiming and revitalizing our waterfront. We’ll open Rockaway Park in Queens. We’ll complete the reconstruction of McCarren Pool in Williamsburg, and the first phase of Calvert Vaux Park in Bensonhurst and we’ll transform Pier 5 of Brooklyn Bridge Park into soccer fields and open space.

“Here in the South Bronx, we’ll begin construction of Soundview Park. And out in the harbor, we’ll continue transforming the island that time passed by, with 30 new acres of parkland that will make Governors Island one of the great waterfront destinations in the world.

“And across the city, we’ll join with AT&T to bring Wi-Fi service to a dozen city parks – so even if you’re enjoying a beautiful day, you can still work or study or play ‘Words with Friends.’

“Reclaiming the waterfront and wiring our parks are just two of the ways we’re re-orienting our city around the needs of people today, not the needs of people 30 years ago. And that brings us to the third and final major challenge I’d like to address: making our government the most innovative of any in the world.

“By creating an administration that empowers team members, takes risks and leads from the front, we’re already setting the standard in so many areas.

“When people around the world talk about the most innovative public policies, where the most cutting-edge policies and programs are taking shape, they talk about New York City. And in the year ahead, we’ll give them plenty more to talk about.

“To begin, we’ll continue using technology to keep our city safe. The NYPD’s counter-terrorism program will add more than 1,000 advanced cameras to sensitive areas deploy more License Plate Readers to bridges and tunnels and expand the use of radiation detectors that are wired to the Lower Manhattan Security Coordination Center, which can respond immediately to any questionable readings.

“Our first responders will begin sending real-time information over the city’s wireless network from an ambulance to an emergency room, saving precious seconds and likely saving lives.

“We’ll strongly support the Governor’s push to expand DNA collection, which will build on the 2006 law we helped pass. And we’ll launch a data analytics team that will use the latest technology to fight crime and poverty and to assist businesses and entrepreneurs.
“To get more people working on construction sites, we’ll streamline the inspection process, just as we’ve done for restaurants and retail shops, in partnership with Speaker Quinn. We’ve already opened an online hub for reviewing and approving digital construction plans. Now, we’re teaming up with the industry to form the Partnership to Build NYC, and together, we’ll strengthen safety and reduce waiting times for building inspections citywide.

“Our goal is ten days or less – and we’re not talking about cutting corners, we’re talking about cutting red tape. And we’ll also do that by streamlining City Planning’s review of land use applications. City government will get smarter so more New Yorkers can get to work.

“We’ll also make our city smarter and safer by deploying Traffic Enforcement Agents to safety hot spots at key intersections, doubling the number of 20 mile-per-hour zones for schools, and continuing adding more miles of protected bike lanes.

“Now, I realize the debate over bike lanes has sometimes been hot and heavy. But the reality is more and more New Yorkers are biking, and the more bike lanes we put in, the fewer deaths and serious injuries we have on our streets.

“This year, we’ll take steps to enforce the law requiring every delivery rider to have proper safety equipment and clothing that identifies the name of the business. At the same time, we’ll launch the largest bike share program of any city in the country. Those bikes will create another option for getting around town faster and easier, and so will new Select Bus Service in Brooklyn, which we’ll launch in partnership with MTA Chairman Joe Lhota.
“And, of course, another options will be the new Five Borough Taxi Cab that New Yorkers have been waiting decades for.

“Finally, if we’re going to be the most innovative city in the world, we also have to be the greenest, because that’s how you attract the most forward-looking individuals and companies. So today, we’re announcing the next phase in three key areas of our PlaNYC environmental and infrastructure agenda: recycling, clean energy and clean air.

“To begin, we’ll double the amount of residential waste we divert from landfills by 2017. By taking steps like increasing recycling in schools and streets and expanding our plastics recycling program, we’ll reduce our waste disposal costs by $50 million annually and help protect the environment.

“We’ll also become one of the first cities in the country to turn wastewater into renewable energy and we’ll explore the possibility of cleanly converting trash into renewable energy. To attack air pollution, we’ll overhaul the city’s air quality codes, green our building and zoning codes and accelerate our work with property owners to phase-out dirty heating oils. All of this work will help move us closer to our goal of having the cleanest air of any large city in America.

“Now, as ambitious as our agenda is for the year ahead, we’ll achieve it by continuing to do more with less. When I first took office, city government had 312,000 employees. Today we have 292,000 – a six percent cut. Yet in nearly every category, we are getting far better results than we did ten years ago.

“This year we will continue to keep head count down – but we will not sacrifice public safety or public integrity. We don’t tolerate misconduct or corruption anywhere, and we have the very highest standards for those we entrust to enforce the law. Our police force is the best in the world. And Commissioner Kelly has done an outstanding job making sure that New York’s Finest are also the most upstanding.

“To ensure that we maintain and strengthen that track record, we will increase the attorney staffing for the Commission to Combat Police Corruption, led by its chair Michael Armstrong, former counsel to the Knapp Commission.

“We’ll find ways to finance all of the initiatives I’ve outlined today, some of which come with very little cost, by continuing to make government more efficient and continuing to consolidate city operations.

“For instance, this year we’ll put three city-owned office buildings in Lower Manhattan up for sale. We expect will bring more than $100 million next year for our capital budget, $100 million in private sector tax revenue and cost savings over the next 20 years by converting public buildings to private buildings and it will bring new jobs and housing for the downtown community.

“We’ll also seek budget savings by doing everything we can to support Governor Cuomo in his push for mandate relief, including what has long been one of our top priorities: pension reform.

“New York City’s workforce is the finest in the world, and current city workers have earned their pensions. But we cannot afford to continue offering the same benefits to future workers. Right now, more than 12 percent of our budget is dedicated to pensions. That’s more than $8 billion that we’re not using to reduce our tax burden or to spend on salaries for teachers, police officers and firefighter, or on job creation or social services. Governor Cuomo is right to make pension reform a top priority and he’ll have our full support.

“It won’t be easy. None of this will be easy. But everything that I’ve talked about today we can complete or make meaningful progress on this year. We’ll work collaboratively with our partners in City government and in Albany to achieve great things – and pioneer new innovations. And that’s the way it should be.

“Because this is a city where the line between the possible and impossible is routinely erased, and where the arc of human fate is bent by ambition, ingenuity, and hard work. That has always been true here, but it has never been truer than it is today.

“The sense of possibility that leads us to pursue big dreams and high ideals, that is the essential spirit of our city and we see it every day.

“We see it in the immigrants who continue to come here and stay here to build a better life. We see it in the artists and entrepreneurs who spend every waking hour pursuing their passions. We see it in the parents who work like mad to give their children a better life.

“This spirit of promise and possibility is all around us – today, and every day. It’s in people like Christopher Gallant and Damian Brown, who founded the Bronx Brewery and now employs many people.

“It’s in educators like Joe Negron and David Levin of KIPP Academy, one of the country’s most successful charter schools, just 10 blocks south of here.

“It’s in housing leaders like Jonathan Rose and Adam Weinstein who helped build one the most environmentally advanced affordable housing developments in the nation, called Via Verde, on East 156th Street.

“It’s in all the people all across the five boroughs who do so much to make this the greatest city in the world. You want to know the State of the City? This is the state of our city. Never more full of promise and possibility. Because, in the words of Gouverneur Morris, there is nothing we the people can’t do. There is no mountain we cannot climb, no summit we cannot reach, if we the people decide to do it.

“Today, let us commit to one another that we will not stand still when our children need us to step forward. We will not deny the dreams of students – no matter where they live, or where they go to school or in what country they were born.

“We will not deny the desire that so many have to work in jobs that will allow them to build a better life for themselves and their families.

“And we will not deny the demands that every New Yorker has for safe streets free from the plague of gun violence and strong neighborhoods full of energy and life.
“Together, we the people will build our future, and we will not rest – not for one second – until we have fulfilled the promise and possibility of our great city for every single New Yorker. Thank you.”

BALCONY Members Comment on Gov. Cuomo’s 2012 State of the State

PEF President Ken Brynien:

“We agree with many items in the governor’s State of the State speech, but there are other points with which we do not agree.”

“We take exception to the governor targeting public-sector pensions and his proposal for a new retirement tier. The ability to attract good workers will be important if the governor seeks to pursue his ambitious agenda. The governor’s proposal for a new pension tier is like eating your seed corn. It may help you get by now, but you will starve later.”

“The governor stated that now is not the time to be squandering resources, we couldn’t agree more. The best ways to achieve efficiencies would be to reduce the number of unaccountable public authorities by merging them into state agencies. In addition, we need to eliminate the multiple layers of political patronage appointments that currently exist in virtually all state agencies and authorities. Finally, we need to reduce the use of high cost consultants and contractors that do work public employees can do better and for less.”

“If this is what the governor means by re-imagining state government, this is a framework we can work within.”

UFT President Michael Mulgrew:

“A bipartisan state commission on education is a very promising idea. Rather than do what New York City now does, which is to set its educational policy by a political agenda, the commission could look at the research about what really works in schools. The commission could also shine on management inefficiencies, like the fact that the New York City Department of Education promised to use three-quarters of a billion dollars in state money to reduce class size — and then let class sizes go up every year.”

CSEA President Danny Donohue:

“Gov. Andrew Cuomo presented a challenging vision of New York’s future and CSEA fully expects to be actively engaged in discussion and debate with the administration over the details.

I am frankly surprised that the Governor gave such high priority to a new pension tier with emphasis on immediate impact. A Tier V was only recently enacted and will not provide the state and localities with any significant savings for many years. A Tier VI would be no different and would only mean that working people would have to work longer, pay more and benefit less – hardly in keeping with the Governor’s goal of strengthening the middle class.

Finally, it was disappointing that the Governor’s appropriate recognition of first responders to the recent series of natural disasters seemed to focus on the uniformed services without real appreciation for the wide range of front line state and local government employees who were essential in New York’s addressing the emergency. Many of these workers put duty first to respond while their families faced risk and devastation. So many of these workers are at risk from state and local cutbacks and property tax capping.”

NYSUT President Dick Iannuzzi:

“As long-time advocates for our students, we would welcome the governor to work shoulder to shoulder with us in ensuring all children receive a quality public education. Teachers, in partnership with parents, have always been lobbyists for what children need. That historic advocacy has resulted in smaller class sizes, better technology, high standards for teacher effectiveness, anti-bullying legislation and hot lunches for children in poverty. Gov. Cuomo’s advocacy would be invaluable in jump-starting the current state bureaucracy, which certainly has been frustrating to teachers as we work to achieve meaningful change.

We applaud the governor for emphasizing the need to make sure no child goes hungry. As teachers we know that ending the achievement gap is a shared responsibility, and combating hunger is an important piece in making sure children are ready to learn.

Regarding the governor’s proposed commission, we don’t know enough about its mission or composition, so we don’t know whether to be anxious or excited, but we look forward to working with the commission to effect positive change.

We have a sound law for teacher evaluations in place, but we share the governor’s frustration when it comes to implementation. Teachers and administrators in local school districts are working hard to implement the evaluation law, but SED Commissioner King used intimidation tactics to derail what has been significant progress by dictatorially yanking much needed federal support from some of our struggling schools. We look to the governor to jump-start that progress once again in an inclusive approach.”

Governor Cuomo Outlines Plan to Continue Building a New New York by Growing the Economy, Reinventing State Government, and Advancing New York as a Progressive Leader

Read responses from BALCONY Members HERE

In Second State of the State Address, Governor Cuomo Outlines Agenda for 2012

Albany, NY (January 4, 2012)

Governor Andrew M. Cuomo today delivered his 2012 State of the State Address in which he outlined a comprehensive agenda that builds on the success of last year. The Governor launched a new economic development blueprint that invests billions of dollars in key public-private sector partnerships and rebuilding infrastructure to create thousands of new jobs across the state, proposed a reinvention of how government operates in order to get results for the people while protecting taxpayer dollars, and detailed a series of actions to strengthen New York’s legacy as the progressive capital of the nation.

“New York State is on the way to coming back stronger than ever before. By working together in a bipartisan manner and putting the people first, we have established the credibility to govern and to lead. Now we must build on what we have already accomplished to begin to undo decades of decline. We have big problems, but we are confronting them with big solutions. Now is the time to get to work, building a New New York together,” Governor Cuomo said.

An Economic Blueprint for New York

Governor Cuomo said, “Our challenge for 2012 is this: How does government spur job creation in a down economy while limiting spending and maintaining fiscal discipline? The answer is forging public-private partnerships that leverage state resources to generate billions of dollars in economic growth and create thousands of jobs.”

· New York Will Build the Largest Convention Center in the Nation: To build on New York’s strength as an international tourist destination, Governor Cuomo proposed a project to build the largest convention center in the country at the Aqueduct Race Track venue in New York City. The 3.8 million square foot convention center would accommodate the nation’s largest events, drive demand for hotel rooms and restaurant meals, and create new tourism revenues. The project would be a $4 billion private investment that is estimated to generate tens of thousands of jobs and create new economic activity throughout the state.

· Master Plan for the Jacob Javits Site: With plans for a new convention center in New York City, the Governor called for a master plan for the Jacob Javits site to create a mixed use facility and revitalize New York City’s West Side with 18 acres of planned development. The plan would follow the successful Battery Park City model and involve more than $2 billion in estimated private sector development funds to create a new 21st century neighborhood on the West Side.

· $1 Billion Economic Development Package for Buffalo: Buffalo is the third poorest city in the nation with 28% of its residents living in poverty and chronically high unemployment. To combat this, the Governor announced that New York State will offer national and global industries up to $1 billion in multi-year economic development incentives to come to Buffalo. By inviting large investments in growth industries- similar to those which made the Capital Region into a world-class center for nanotechnology innovation and the home of major semiconductor manufacturers- the Governor’s plan for Buffalo is designed to create thousands of jobs and spur at least $5 billion in new investment and economic activity.

· A Second Round of Regional Economic Development Awards: Building on the success of the Regional Economic Development Councils, Governor Cuomo announced that New York will keep the momentum going with a $200 million second competitive round of regional economic development awards in 2012. The Councils have transformed the state’s economic development approach from a top-down model to a bottom-up, community-based one. The second round of awards will allow each region to continue creating its own economic destiny. In addition, the New York Open for Business campaign will step up its efforts to market New York to the world as a place to invest and will expand its promotion tourism by highlighting regional treasures like the Adirondacks, Catskills, wine country, and Long Island beaches.

· A Comprehensive Approach to Casino Gaming: Recognizing that New York is losing tax revenue, tourism dollars and jobs to neighboring states, Governor Cuomo announced that he will support a constitutional amendment to allow gaming in New York State. An estimated $1 billion in economic activity could be generated from gaming in New York State.

· The New York Works Fund and Task Force: To help create private sector jobs and rebuild New York’s infrastructure, Governor Cuomo announced the creation of the New York Works Fund and Task Force to coordinate and leverage capital investment- twenty private sector dollars to every public dollar- and put thousands of New Yorkers to work. The fund will support projects to improve or replace more than 100 bridges including the Tappan Zee, repair work to 2,000 miles of roadways, upgrades to 90 municipal water systems, improvements to 48 state parks and historic sites, and repair work to 114 flood control projects and dams.

· An “Energy Highway” System to Power New York’s Economic Growth: To ensure a cost efficient and reliable supply of power is available to fuel the state’s economic growth, the Governor announced a plan to build a private sector funded $2 billion “Energy Highway” system that will tap into the generation capacity and renewable energy potential in Upstate and Western NY to bring low-cost power to meet the tremendous energy needs in Downstate New York. The plan also calls for the repowering of old and dirty plants to stop pollution in urban neighborhoods.

· Invest in Solar While Protecting Ratepayers: Noting that New York is a national leader in cost-effective, renewable energy production, Governor Cuomo announced that his administration will launch the NY-Sun Initiative to expand solar energy production in the state while keeping costs under control to protect the ratepayer. NY-Sun will help increase competitive procurement of large, commercial-sized solar projects and expand rebate programs for residential and commercial small-to-medium systems. The program will strengthen the state’s energy sector, and is designed to quadruple annual development of solar by 2013.

· Expedite On-Bill Financing for Consumer Energy Efficiency Upgrades: Governor Cuomo announced that On-Bill financing, a statewide program that allows consumers to retrofit their homes with energy efficient upgrades and pay for the cost on their monthly energy bill, will be offered to homeowners beginning in January 2012. On-Bill financing was scheduled to go live in June, but an agreement between the state and utilities expedited the start, allowing for new jobs to be produced immediately and benefits to be delivered to 40,000 homes across the state.

· Master Plan for Energy Efficiency in State Facilities: To promote energy efficiency, save taxpayer money, create jobs, and reduce pollution, Governor Cuomo announced that the State has developed a master plan for accelerating energy-saving improvements in state facilities. The plan is designed to save millions of dollars through new economical energy efficiency measures and would come at no cost to the state as the upfront investment would be repaid from the energy savings. The program will create thousands of high skilled jobs and reduce lifecycle greenhouse gas emissions by 8.1 million metric tons.

· Farm-NY: Strengthening New York’s Agriculture Sector: Recognizing that agriculture contributes billions of dollars to New York’s economy, Governor Cuomo announced a series of measures to support farmers and help the agricultural industry grow. To improve access to low interest loans that will assist farmers with infrastructure upgrades, the New York State Linked Deposit Program will be expanded to provide farmers in any part of the state with capital at affordable interest rates. Noting that 1.5 million New Yorkers live in areas with limited supermarket access, the Governor called for expanding the successful FreshConnect farmers’ market program to provide more residents with healthy, New York-grown food. In addition, the Governor called for the creation of large-scale distribution hubs strategically located across the state to improve promotion of produce grown by New York farmers.

A Reimagined Government

Governor Cuomo said, “To tackle this ambitious agenda, we need a government that can make it happen. This is not a question of tinkering around the edges. We need a government that performs better and costs less.”

· Long Term Commitment to Fiscal Discipline: Recognizing that the State is more competitive when taxes are reduced, Governor Cuomo called for holding the line on spending this year and closing the remaining $2 billion budget deficit with no new taxes or fees.

· Mandate Relief: Noting that by next year, pension costs for schools, state, and local governments will have increased more than 100% since 2009, Governor Cuomo called for reform to the pension system and the creation of a Tier VI retirement plan. The Governor announced that he will ask the joint Legislative and Executive Mandate Relief Council to hold public hearings and issue a package of recommendations to be voted on this legislative session.

Transforming Public Education: New York spends more money on education than any other state, yet places 38th in graduation rates. To reform the state’s education system, Governor Cuomo announced that he will appoint a bipartisan education commission to work with the Legislature to recommend reforms in key areas including teacher accountability, student achievement, and management efficiency.

· Redesigning New York’s Emergency Management System: The destructiveness of Hurricane Irene and Tropical Storm Lee revealed limitations in the state’s emergency response operations, including breakdowns in communications and transportation, as well as inadequacies in deployment of personnel. In an effort to build the best state emergency operation in the country and prepare New York for future emergency situations, Governor Cuomo called for a new statewide network of municipal and regional emergency responders. The network will improve statewide communications and help ensure that resources can be deployed effectively in emergency situations.

A New York Vision for a Progressive Future

Governor Cuomo said, “New York has a long and proud history as the progressive capital of the nation. It’s a legacy that we reestablished last year. We must build on our success this year.”

· Foreclosure Prevention Assistance: The financial crisis has taken a serious toll on homeowners across New York State, with many forced out of their homes and others facing foreclosure, Governor Cuomo announced that the Department of Financial Services will create a Foreclosure Relief Unit to provide counseling and mediation services to help New Yorkers stay in their homes.

· Creating a Tenant Protection Unit: To better protect tenants and ensure the tough rent regulations enacted in 2011 are properly enforced, Governor Cuomo announced that New York State Homes and Community Renewal will create a Tenant Protection Unit to investigate fraud and prosecute landlords who fail to maintain essential services.

· A Continued Commitment to Minority and Women-Owned Businesses: To build on last year’s efforts to expand economic opportunities for minority and women owned business enterprises (MWBEs), Governor Cuomo announced new measures to continue support for MWBEs. With credit access difficulties hindering the competitiveness of many MWBEs, New York will extend credit to give MWBE contractors the backing they need to succeed. The program will support at least $200 million in contracting for MWBE firms.

· Additional SUNY Challenge Grants: For years, SUNY has been the great equalizer for the middle class by allowing New Yorkers from working families to gain a quality education. To build on last year’s efforts to rebuild SUNY through bringing together academic excellence and economic development, the Governor announced that program to allow SUNY’s 60 campuses to compete for three $20 million challenge grants. The grants will continue the Governor’s work to build SUNY institutions into leading centers of excellence, innovation, and job creation.

· No Child Should Go to Bed Hungry in New York: With 1 in 6 children in New York State living in homes without enough food on the table, Governor Cuomo declared that no child should go hungry in New York State and his administration will do all it can to prevent it. Thirty percent of New Yorkers who are eligible for food stamps do not receive them, leaving over $2 billion in federal funds unclaimed every year. To help these New Yorkers, the Governor announced that his administration will seek to increase participation in food stamp programs by reducing barriers including fingerprinting for working families, and work to eliminate the stigma associated with the hunger assistance programs.

· Create an All-Crimes DNA Database: To better protect New Yorkers and improve the state’s criminal justice system, Governor Cuomo announced that he will propose legislation to create a databank to obtain DNA from all convicted criminal defendants that are found guilty of any felony or Penal Law misdemeanor. Currently, DNA is only collected from those convicted of less than half the crimes on the books in New York. The DNA databank as it currently exists has provided leads in over 2,700 convictions and led to 27 exonerations of the wrongfully accused. Under the legislation the Governor will propose, DNA will be key to exonerating the innocent, convicting the guilty, and protecting New Yorkers in a fair and cost-effective way.

· Establish a Tax Reform and Fairness Commission: Continuing efforts that began at the end of 2011 to reform the state tax code to boost job creation and improve fairness, Governor Cuomo announced the creation of the Tax Reform and Fairness Commission to propose additional, long-term changes to corporate, sales, and personal income tax systems, and to find ways to close tax loopholes, promote efficiency in administration, improve New York’s business climate, and enhance collection as well as enforcement.

· Implement Campaign Finance Reform: Governor Cuomo called for comprehensive reform of the state’s campaign finance system to make sure that all New Yorkers have an equal voice in the political process. New York ranks 48th in the nation in voter turnout and a smaller percentage of New York residents contribute to candidates to state office than anywhere else in the nation. The Governor called for a better campaign finance system that system that includes matched contributions and lower contribution limits, and increase enforcement at the Board of Elections.

· Create an Office for New Americans: To ensure that New York remains a land of opportunity for all, Governor Cuomo announced that his administration will create an Office of New Americans to assist legal permanent residents who come to New York State. The office will provide a variety of services, including helping those with high-skills training and experience obtain the licenses and credentials they need to earn their way; helping those with limited formal education receive access to adult education and job training; and helping new legal permanent residents navigate the path to citizenship. It will also encourage entrepreneurship and take steps to protect new Americans as they transition to full participation in New York’s communities.

· Train Leaders for a New New York: To help address the state’s human capital crisis, Governor Cuomo announced that his administration will launch the New New York Leaders Initiative to create opportunities for the state’s next generation to dedicate their careers to public service. The first component of the initiative, the Student Intern Program, will assign students to a particular branch of government to provide hands-on experience for interns to interact with government leaders and policy makers. The second component, the Empire State Fellows Program, will be a full-time leadership training program that will prepare the next generation of talented professionals who are members of underrepresented groups for careers as state policy makers. The New NY Leaders Initiative is designed to renew the connection between young people and the state and ensure that state government is diverse, talented, and prepared to lead the way for decades to come.

· Protect Reproductive Rights: To continue to vigorously protect a woman’s right to choose, Governor Cuomo pledged to fight for passage of the Reproductive Health Act. The Act protects the fundamental right of reproductive freedom and ensures that the rights of individuals to make difficult and personal health care decisions are preserved.

Read the entire State of the State address here: State of the State

NYS Fair Tax Code Reform: Responses

From Comptroller Tom DiNapoli:

There are major issues facing New York State. Governor Cuomo, Speaker Silver and Majority Leader Skelos have put forth a framework for tackling some of those issues. While movement on these issues is welcome, it is critical that we spend within our means and prioritize our growing capital needs while creating jobs and addressing the tax code. Let’s not repeat the mistakes of the past. I will analyze the details as the specifics of the agreement are made public.

From NYSUT:

Today’s three-way agreement to re-shape the state’s tax code enables New York to begin the process of creating jobs, helping flood-ravaged communities and reversing years of cuts to education and health care, New York State United Teachers said.

“This agreement provides the revenue that will make it possible for New York state to begin restoring cuts that have so burdened our schools and campuses. Clearly, more is needed and we look forward to a state budget that reflects how revenue is allocated,” said NYSUT President Richard C. Iannuzzi. “New Yorkers want to see a greater investment in their public schools, higher education and health care facilities. Investments in infrastructure, job creation and economic development all reflect a commitment to growing New York’s economy, which benefits all of us. Today’s agreement gets us closer to the New York we all want.”

NYSUT Executive Vice President Andrew Pallotta said: “NYSUT has consistently championed a more progressive, more equitable tax structure to provide the revenues needed for quality public schools and public higher education. New Yorkers believe the wealthiest among us should do their fair share in supporting services all residents need, and this agreement is a welcome development.” He praised state leaders for providing middle-class tax relief, while committing to funding training and job development for inner city youth, as well as relief for flood-ravaged regions of the state.

“Today’s a good day, but more needs to be done,” Pallotta added. “We will continue working with the governor and Legislature to ensure the next state budget meets the needs of our students, from those in pre-K to those pursuing their doctorates.”

From Gregory Floyd, president of Teamster Local 237:

“There is no cavalry coming from Washington to rescue us. In fact, those hooves you hear in the background and that cloud of dust you see on the horizon just may be the posse! With unemployment and poverty levels at their highest in 30 years, enough is enough. We must take matters into our own hands. That is why I applaud Governor Cuomo and our legislative leaders for this innovative plan which paves the way for our union pension fund investments to help put New Yorkers back to work while getting a return on our investments and improving our State’s infrastructure.”

From UFT President Michael Mulgrew:

“I want to thank Governor Cuomo for his leadership in crafting a wide-ranging solution to the state’s budget problems. The agreement worked out among the Governor, Speaker Silver and Majority Leader Skelos – a stark contrast with the political deadlock in Washington — will bring more fairness to the state tax code and help ensure that children in our public schools will begin to see restorations from the devastating education cuts of recent years.”

From CSEA President Danny Donohue:

“The tax rate reform agreement put forward by Governor Cuomo and the legislative leaders recognizes the importance of fairness in stimulating New York’s economy and boosting confidence in our government. The agreement will produce practical benefits for all New Yorkers, but especially working people.

The governor and both houses of the legislature deserve a lot of credit for working cooperatively to address the challenges in front of us. Their actions will keep New Yorkers working and help put more people back to work. They also demonstrate that government can work for the good of the people.”

BALCONY APPLAUDS PROGRESS ON NEW YORK STATE FAIR TAXATION

BALCONY APPLAUDS PROGRESS ON NEW YORK STATE FAIR TAXATION

For Release Tuesday December 6th

BALCONY, the Business and Labor Coalition of New York, today (Tuesday) commended the New York State Legislature and Governor Andrew Cuomo for reaching an agreement on a fair tax code reform for New York State. BALCONY urged immediate passage by the New York State Assembly and Senate.

The new plan provides the shared sacrifice by all New Yorkers in order to rebuild the New York economy for businesses, workers, seniors and children.

BALCONY agrees with Governor Cuomo that New York State is in a dire fiscal situation and that we must address an immediate revenue shortfall of at least $350 million and a $3-$5 billion revenue shortfall next year.

The business and labor representatives of BALCONY supported the New York State surcharge on higher income New Yorkers in 2009. At the same time, since our inception BALCONY has supported a more progressive tax system for New York and we are pleased to see the Governor and Legislature move decisively in that direction.

The new tax reform code will spur economic growth by both individuals and corporations. Lowering taxes on small businesses and moderate income families will help stimulate economic activity and spending.

The urgency to reform the tax code is made even more necessary due to the failure of the Congressional “Super Committee” to reach a consensus on tax policy. Washington’s gridlock could cost New York State more than $5 billion in Federal funding over the next ten years. A more progressive tax system in New York State will help fill the gap in the loss of those federal funds. We need strong business so that New Yorkers can keep their jobs and be provided with the vital services which our residents need.

We urge all parties in New York State to enact the comprehensive tax package that will benefit all New Yorkers.

BALCONY is co-chaired by Alan Lubin, the former NYSUT Executive Vice President and Bruce Ventimiglia, Chairman of Saratoga Capital Management.

BALCONY represents more than 1000 New York State Business, labor unions, non profit advocacy organization seeking common ground between Business and Labor in public policy debate in New York State. BALCONY is a 501 c(4) non-profit, non-partisan organization.

For more information contact: Lou Gordon (212) 219-7777

GOVERNOR CUOMO, MAJORITY LEADER SKELOS & SPEAKER SILVER ANNOUNCE COMPREHENSIVE PLANS TO CREATE JOBS AND GROW THE ECONOMY

GOVERNOR CUOMO, MAJORITY LEADER SKELOS & SPEAKER SILVER ANNOUNCE COMPREHENSIVE PLANS TO CREATE JOBS AND GROW THE ECONOMY

Governor Andrew M. Cuomo, Senate Majority Leader Dean Skelos and Assembly Speaker Sheldon Silver today announced that they have reached a proposed three-way agreement on legislative and executive proposals to create jobs and cut taxes for middle class New Yorkers. The agreement includes support for a comprehensive New York Works Agenda that will create thousands of jobs with new investments in New York’s infrastructure, passing a fair tax reform plan that achieves the first major restructuring of the tax code in decades resulting in a tax cut for 4.4 million middle class New Yorkers taxpayers, approving $50 million in additional relief for areas devastated by recent floods, and reducing the MTA payroll tax to provide relief for small businesses. The leaders will now present the agreement to their members for approval.

“Our state government has come together in a bipartisan manner to create jobs, grow our economy and, at the same time enact a fair tax plan that cuts taxes for the middle class,” Governor Cuomo said. “We are investing in projects that will restore our state’s infrastructure and put thousands of people to work. We are cutting taxes on middle class New Yorkers and small businesses, which will inject nearly $1 billion into our economy. We are targeting new tax credits to hire inner city youth and reduce unemployment in some of the poorest areas of our state, as well as providing direct aid to communities struggling to recover in the wake of this year’s severe storms. This would be lowest tax rate for middle class families in 58 years. This job-creating economic plan defies the political gridlock that has paralyzed Washington and shows that we can make government work for the people of this State once again. I commend Majority Leader Skelos and Assembly Speaker Silver for their partnership in our effort together to create jobs for New Yorkers and put our state’s economy on a path for growth.”

“This year, working in a bipartisan manner, we’ve accomplished some very important things for the people of this State – - including eliminating a $10 billion deficit, bringing spending under control and capping property taxes,” Majority Leader Skelos said. “This comprehensive plan will reduce the tax rate for middle class families to their lowest levels in more than fifty years, create thousands of new private sector jobs, and begin to turn our economy around. I am pleased that this proposed agreement realizes long-held Senate Republican priorities like cutting the corporate franchise tax for manufacturers, reducing the job-killing MTA payroll tax for small businesses, eliminating New York’s stealth tax by indexing tax brackets and deductions, and building our reserves, along with providing additional flood relief to support job growth in devastated communities. I am looking forward to presenting this framework agreement to the members of our conference tomorrow and hearing their feedback.”

“Assembly Democrats share the Governor’s belief that we need to restore fairness and equity to our tax system – someone who makes $50,000 should not be paying the same tax rate as someone making $5 million,” Speaker Sheldon Silver said. “With Governor Cuomo’s leadership, we have forged a bipartisan plan that is fair to all New Yorkers and will help build a brighter economic future for this State. I am submitting to my conference a proposal that will provide $2 billion in revenue for the people of New York in each of the next three years by creating a more progressive tax structure, coupled with a significant middle class tax cut. I will recommend that they give it favorable consideration. I congratulate the Governor for helping to forge this comprehensive plan to revitalize New York State’s economy.”

The Governor’s New York Works Agenda will create tens of thousands of jobs through a $1 billion targeted and accelerated investment in key infrastructure projects around the state including roads, bridges, parks, energy and water projects. The NY Works Agenda also includes pursuing a comprehensive gaming plan and enacting a new tax credit to incentive the hiring of inner city youth.

The Governor and the legislative leaders have agreed to tax code reforms including a temporary restructuring of current tax brackets to reduce taxes for 4.4 million middle-class New Yorkers. The Governor is also establishing a commission to examine a comprehensive overhaul of the state’s entire tax code that will make it simpler and fairer for all taxpayers and to create economic growth in the state.

In addition to these agreements, the Governor and legislative leaders announced a new round of flood relief, including a $50 million grant program for at businesses and counties impacted by Hurricane Irene and Tropical Storm Lee. The plan also includes a job retention tax credit for businesses impacted by a natural disaster during the last year. Finally, the Governor and legislative leaders announced that the MTA payroll tax will be reduced for small businesses.

The details of the proposed agreement are as follows:

The New York Works Agenda

New York Works Infrastructure Fund: Creating Jobs by Rebuilding New York

The Governor and the legislative leaders have agreed to a plan creating New York’s first infrastructure fund to inject over $1 billion in job creating investment. The accelerated state funding will leverage $10 billion in direct capital investment to create thousands of direct jobs by rebuilding roads and bridges; parks, dams and flood control projects; upgrading water systems and educational facilities; and investing in energy efficient improvements to commercial and residential buildings. The plan will focus on projects that support regional Economic Development Plans in the transportation, energy, environment and public facilities sectors. The accelerated infrastructure fund investment is within the state’s debt ceiling.

Specific investments undertaken by the New York Works Infrastructure Fund include replacing deficient state and local bridges in every region of the state, rehabilitating dams and flood control infrastructure, renovating parks, rebuilding water systems, conducting energy retrofits on homes, farms, businesses, and schools, as well as accelerating major SUNY and CUNY projects.

The Governor and the legislative leaders agreed on proposing legislation that will permit the New York Works Infrastructure Fund to bid the design and construction of infrastructure projects as a single contract, reducing costs and improving construction time. Passage of “Design-Build” legislation would shave 9 – 12 months from the construction time of major infrastructure projects. The Fund would also streamline permitting and regulatory approvals for infrastructure projects and procurements and consolidate activities across agencies and authorities.

Financing for the infrastructure fund would be provided through advancing capital investment and the creation of a public/private infrastructure fund. $700 million in state capital investments would be front loaded to increase job and economic impact by moving up capital projects planned for 2013 to 2012 wherever possible. An additional $300 million from the Port Authority would be directed towards funding for infrastructure projects in New York City. A new public/private infrastructure fund would raise up to $1 billion from pension funds and private investment.

Gaming Agreement

The Leaders expressed support to work with the Governor and request support from their respective majorities to put a constitutional amendment up for a vote.

Inner City Youth Employment Program and Tax Credit

The Governor and the legislative leaders agreed to create an inner-city youth employment program and a $25 million tax credit for employers who hire unemployed youth between 16 and 24 years of age over the first six months of 2012. The program and credit would be available to employers in businesses such as clean energy, healthcare, advanced manufacturing and conservation. Eligible employers would receive up to $3,000 for a six month training period and an additional $1,000 if they retained their workers for an additional six months.

Nearly $37 million in funding will be provided to critical jobs programs for inner city youth. This includes $12 million in support grants to youth providers for work readiness training, occupational training, placement or job matching, workplace mentoring and follow up services to increase retention. Participating youths will be provided with up to three monthly stipends of $300 each to cover costs associated with transitioning into the workplace. An additional $25 million will be appropriated for workforce skills training and support programs including digital literacy, basic education and occupational training, summer youth employment, job search and placement, and facilitated child care enrollment.

Fair Tax Code Reform

The Governor and the legislative leaders announced tax code reforms to create jobs and restore fairness to the tax system. Under the new rate structure, a total of 4.4 million New Yorkers would receive a tax cut, including a $690 million reduction for middle class taxpayers, and all taxpayers would see a tax reduction or no change compared to their previous tax bill. Brackets would increase with the rate of inflation. The newly implemented top bracket expires in December 31, 2014.

The new tax structure would generate $1.9 billion in additional revenue for the State. Any additional unspent funds from this revenue would be held in a new priority reserve fund to be dedicated towards future needs regarding job creation, local mandate relief, education, health care and mortgage foreclosure protection.

The new tax bracket structure would be reorganized as follows:

Income Level	Previous Tax Rate	New Tax Rate
$40,000 to $150,000	6.85%	6.45%
$150,000 to $300,000	6.85%	6.65%
$300,000 to $2 million	7.85% – 8.97%	6.85%
Over $2 million	8.97%	8.82%

Through an executive order, the Governor has created the New York State Tax Reform and Fairness Commission to address long term changes to the tax system and create economic growth. The commission will have thirteen members, including four recommended by the Senate and Assembly majority leaders and two recommended by the Senate and Assembly minority leaders. The chair of the Commission will be appointed by the Governor. All members are required to have expertise in the tax field and will receive no compensation.

The Commission will conduct a comprehensive and objective review of the State’s taxation policy, including corporate, sales and personal income taxation and make revenue-neutral policy recommendations to improve the current tax system. In its review, the Commission will consider ways to eliminate tax loopholes, promote administration efficiency and enhance tax collection and enforcement.

Flood Recovery Grant Program

The Governor and the legislative leaders have agreed to establish a $50 million grant program to continue recovery efforts in regions of the State impacted by Hurricane Irene and Tropical Storm Lee.

The program includes the following support for communities recovering from the storms:

· $21 million for small businesses, farms, multiple-dwellings and non-profit organizations that sustained direct physical flood-related damage costs not covered by other federal, State or local recovery programs. Grants would be limited to $20,000 and eligible only to companies that are on the Small Business Administration’s list of companies that have sustained damage.

· $9 million for county flood mitigation or flood control projects. The grants for each county would range from $300,000 to $500,000; however, counties could jointly apply. Eligible counties must be included in Federal disaster declarations

· An additional $20 million included in federal disaster declarations distributed on an as needed basis
· Permitting local government to let taxpayers impacted by the storms to pay their property taxes in installments

Jobs Retention Credit for Businesses Impacted by a Natural Disaster

The Governor and the legislative leaders have agreed to the enactment of a job retention credit for businesses harmed by a natural disaster. The credit would be available to firms with at least 100 employees that have retained or expanded their workers’ roles during this time. The credit would equal 6.85 percent of the wages of retained jobs and is targeted towards employers in financial services, manufacturing, software development, new media, scientific development, agriculture and other sectors.

Reduced Manufacturing Tax Rate

The Governor and the leaders agreed to provide a new reduction in the tax provided to corporate manufacturers by lowering their tax rate that would save them $25 million.

Reducing the MTA Payroll Tax

The Governor and the legislative leaders have agreed to reduce the MTA payroll tax on small businesses while maintaining the necessary funding for the MTA from other sources. The payroll tax would be eliminated or reduced for 294,900 taxpayers overall. The tax would also be eliminated from an additional 415,000 taxpayers by raising the self-employment income exemption. In addition, private elementary and secondary schools, as well as parochial schools, would be exempt from the tax. The State would compensate the MTA for the $250 million in lost revenue.

FPI Report: Reforming the New York Tax Code

New York State is at a crossroads. Our tax structure is scheduled to change in a way that will render state revenues inadequate for the budget years ahead. Hundreds of thousands of households struggle to pay property tax bills that represent an inordinate share of their incomes. And, in the aftermath of the Great Recession, far too many New Yorkers are still looking for jobs as good as the ones they used to have.

What can be done? What strategies can we pursue that will increase revenues to preserve the services that support New Yorkers’ quality of life and make it possible for families to move up the socioeconomic ladder—and that will, at the same time, make the tax system fairer?

Read the entire report: Tax Code

Ex-MF Global Chief’s Role In Pension Reform Plan Questioned

By Chris Bragg

As more details filter out about the collapse of MF Global – the major derivatives trading firm that crashed under a $1 billion cash shortfall last month— a New York City union leader is questioning why two of the company’s top officials are leading efforts to revamp the city’s $120 billion pension fund system.

Comptroller John Liu hired Larry Schloss, a private equity fund manager who had also been serving as one of the four directors for MF Global, in early 2010 as deputy comptroller for pensions and chief investment officer.

This September, the comptroller hired Kevin Davis, the former CEO of MF Global, to oversee the pension system’s new commodities investment program, a Liu spokesman confirmed. Davis had left the company amid a $90 million settlement stemming from a rogue trading scandal. The hiring was not announced via press release.

Much of the focus surrounding MF Global’s collapse has centered on its former CEO, ex-New Jersey governor Jon Corzine, and his risky bets in Europe. But scrutiny has also been brought on the company’s lack of internal risk and accounting controls, persistent problems stemming from the tenures of Davis and Schloss, said Greg Floyd, the president of Teamsters Local 237, who sits on the city’s biggest pension fund board.

“The fact is that Jon Corzine was the tip of the iceberg,” Floyd said. “MF Global had been having problems since Larry Schloss was there and when Davis was there. Corzine was just the straw that broke the camel’s back.”

Three years have passed and two CEOs have come and gone since Schloss and Davis were at the company. A spokesman for Liu’s office said that for anyone to question Scholl’s qualifications for his job was “absurd.”

In a statement to City & State, Schloss dismissed any questions about Davis’ recent hiring.

“Kevin Davis has 26 years of experience in commodities and has run a global business. He was hired because he was the best applicant for the job,” Schloss said. “He will help devise a long-term strategy for the pension funds in order to further optimize the investment portfolio. You can’t overlook 26 years of experience.”

Notably, Floyd is exploring a 2013 run for mayor in a field that could include Liu, and has recently cast himself as an antagonist to the embattled comptroller.

Floyd said he was most concerned by a rogue trading incident at MF Global in February 2008. That’s when a MF Global broker made a nearly $1 billion bet on wheat future contracts from his personal computer, losing $141.5 million and consuming about 6 percent of the company’s capital.

A month later, Davis was named as one of the defendants in a lawsuit by four public pension funds, which alleged the company had improper internal risk controls. Davis left the company in November 2008, shortly after the company agreed to a $90 million settlement.

Reuters recently reviewed regulatory actions against MF Global over the past decade and found the company has drawn more sanctions from the U.S. commodity futures regulators than each of its 14 closest peers, while drawing the second-highest amount in fines, for alleged lapses in risk supervision and recordkeeping.

As Liu and Mayor Michael Bloomberg seek to unify the city’s five pension funds into one system using professional managers and a nonpartisan staff, Floyd and several other NYCERS board members are concerned the new system could put too much power on the hands of unchecked investment professionals. Schloss is leading efforts to engineer the new system, though it’s unclear whether he would ultimately serve as its chief investment officer.

Floyd said the collapse at MF Global offers a compelling case as to why independent boards should continue to play a strong role in overseeing pension fund management decisions — especially when those decisions are made by people with mixed track records.

“The person who gets to make the decisions would ultimately have very few people that would have control over them,” Floyd said. “It would be something like the FBI under J. Edgar Hoover.”

PEF Members Ratify Revised Tentative Agreement, 3,496 Jobs Saved

Albany – By a count of 27,718 to 11,645, members of the New York State Public Employees Federation (PEF) ratified a revised four-year agreement with the state that averts significant layoffs.

The ratification of the new agreement saves the jobs of 3,496 PEF members and preserves the vital services our members provide.

The agreement preserves the pay-scale, the employment and the careers of PEF members. It maintains increments and salary-grade parity, longevity payments and co-pays for doctor visits at their current levels. It calls for no salary increases for years 2011, 2012 and 2013. A salary increase of 2 percent is included for 2014.
The new contract increases the share members will pay of their health insurance premiums, but includes changes to the productivity enhancement program which will allow members greater opportunity to use vacation time to offset health insurance costs. The new contract includes reimbursement for the 9 furlough days payable at the end of the agreement.

“More than 75 percent of our membership voted on the agreement,” said PEF President Ken Brynien.

“Although this was a difficult decision for our members, it demonstrates they are willing to do their part to put New York state on a stable financial footing, as all New Yorkers should, and are helping to resolve a fiscal crisis for which they were not responsible.
“This agreement preserves our members’ jobs and the services they provide. During this economic downturn, the state’s citizens are more dependent on these vital services than ever, in the wake of the flooding earlier this year.

“We are certain the governor understands the sacrifice our members have agreed to accept, and recognizes the value PEF members and other public employees provide to the citizens of the state.

“We now call on the governor as part of his efforts to increase the efficiency of state government, to direct his attention to areas where PEF has highlighted cost savings. These areas include the elimination of wasteful contracting out and reducing the state’s excessive authorities, commissions and public benefit corporations that make up the state’s shadow government,” Brynien said.

PEF is the state’s second-largest state-employee union, representing 55,000 professional, scientific and technical (PS&T) employees and other public and private employees. The contract covers the state’s PS&T employees.

Statement of CSEA President Danny Donohue in response to Gov. Andrew Cuomo’s Let NY Work agenda

President Danny Donohue

November 3, 2011

“The package of so-called public sector reforms put forward under the banner of the Let NY Work coalition — apparently at the urging of Gov. Andrew Cuomo — is another despicable broadside on working people. Their bile is a perversion of reality that misrepresents the facts about very complex issues facing our state.

Obviously, the Occupy Wall Street Movement has Gov. Cuomo and his corporate allies worried and with good reason:

Pressure is mounting because corporations evade paying their fair share of taxes through loopholes and political favoritism, while the superwealthy look forward to an indefensible $5 billion windfall at year’s end. All this as state and local governments continue to struggle with their finances because of state budget cuts demanded by Gov. Cuomo.

It’s always easier to change the subject and scapegoat rather than face up to the ugly truth. Gov. Cuomo and his front group are in the wrong place on these issues, as they talk about shared sacrifice and the common good. Clearly they mean for some, not all.”