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Economic Development
The current economic downturn is characterized by a severe lack of access to credit and capital by financial institutions, small businesses and not-for-profit organizations. The state must encourage private sector investment and job creation to help businesses operate and expand. The state must maintain its two key economic development programs -- IDAs and Empire Zones -- designed to achieve these goals and foster a competitive business environment. Accordingly:
- We oppose the proposed call for retroactively applying new criteria for qualification to existing Empire Zone participants as proposed in the Executive Budget. A recertification program will damage our credibility and create a perception that New York is not the place to do business.
- We oppose reform which is aimed at imposing overburdening procedural requirements and operational costs on businesses.
- We oppose mandating a prevailing or "living wage" be paid to all IDA assisted projects.
- We support legislation allowing IDAs to make "civic authority" financing available to non-profit organizations permanent.
The ability for Westchester employers to recruit and retain a skilled workforce to ensure economic stability in the future is severely compromised by the high cost of housing in the county. We support legislation modeled after the successful Long Island initiative - Homeownership and Economic Stabilization for Long Island Program (HELP Long Island). This program allows businesses to assist employees with down payments on new homes. The $25 million grant enables three-to-one matching contributions from the state, up to $40,000. It can also provide up to $20,000 for repairs and rehabilitation of existing homes.
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Energy
The rising costs of electricity coupled with the lack of new generating capacity are serious concerns for our businesses. The Business Council of Westchester supports a comprehensive statewide energy policy that encourages an affordable, reliable, safe and diverse supply of energy. The most critical aspect of this policy must include a new Article X power plant siting law to encourage the construction of new electric generating capacity, electric and natural gas transmission and distribution facilities and other energy infrastructure. The continued operation of existing, economically viable, generating facilities, including nuclear and coal, is vital to ensure stable and competitive prices and supply diversity.
Accordingly:
- We support the re-licensing application for Indian Point whose generating capacity is essential to power the downstate region.
- We advocate for the immediate renewal of Article X.
- We endorse the development of in-state renewable energy projects.
- We promote greater energy efficiency and encourage funding for cost-effective energy efficiency programs implemented by local utilities and state agencies.
- We support an increase in the region’s power supply through transmission additions and upgrades, capacity additions and the development of safe, secure, reliable and diverse supplies of energy.
- We advocate for a robust and healthy energy system. If left unchanged, the current regulatory environment and aging infrastructure will jeopardize the delivery companies of providing safe and reliable service.
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Fiscal Reform
One only has to look at our current economic environment to realize that the days of Wall Street generating 20 percent of state revenues to mask the fundamental problems of our fiscal policy are over. Our state government (and local governments through mandates) provides a level of services our economy can no longer bear. State and local spending in New York is the second highest in the nation, 47 percent above the national average. Personal income taxes in New York are tops in the nation, 123 percent above the national average. Business taxes are second nationally, 165 percent above the national average. Local property taxes far exceed any other state and Westchester is number one in this area. The end result is that New York has the worst tax climate in the country.
Accordingly, we recommend the following:
- The budget gap should be addressed by additional reductions in state spending, not by increases in taxes, fees and borrowing. New York’s economy simply cannot withstand the proposed Executive Budget increases in taxes and borrowing of $4 billion and $2.6 billion, respectively.
- Enact the property tax cap and mandate relief proposals recommended by the New York State Commission on Property Tax Relief.
- Enact changes in state law (Wicks Law, Triborough provision of the Taylor Law) to lower school district costs.
- Adopt recommendations of the Commission on Local Government Efficiency and Competitiveness - regional collective bargaining, health insurance contributions, Wicks Law reform, procurement reform and consolidation of certain local government and school district services.
- Implement a new Tier V pension system for public employees.
- Oppose Paid Family Leave legislation which amounts to a mandated expense for businesses that will bear the expense of replacing the missing workers.
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Health Care
The Business Council of Westchester realizes it will take a fundamental restructuring of our health care system to make health care affordable again. The restructuring will require hard choices and changes to the way health care is delivered. Solutions must involve all stakeholders, acting in a collaborative way, seeking a more efficient system that expands access and improves patient outcomes.
An examination of our Medicaid system illustrates the problem. New York's per capita Medicaid spending is more than twice the national average. To put this into perspective, if per capita Medicaid spending was "only" twice the national average the state would save $5.5 billion per year. And despite this excessive spending, our key health care indicators are worse than the national average.
Our goal in 2009 is to achieve progress in addressing the problem of the escalating costs of health care and Medicaid and at the same time provide for the necessary infrastructure investment. Accordingly:
- We support changes in the Department of Insurance regulations to permit multi-employer, experience rated plans.
- We support health care cuts that don't compromise quality of service or patient outcomes.
- We oppose disproportionate cuts to the health care sector that would hinder their economic contributions.
- We oppose play or pay proposals that call for new taxes on businesses that cannot afford to purchase health insurance for their workers.
- We advocate for aligning provider incentives to promote cost-effective primary care; the current reimbursement system rewards providers for high utilization of expensive procedures at the expense of primary and preventive care services.
- We favor the development of pay for performance programs and centers of excellence that reward providers for delivering higher quality health care.
- We endorse wellness programs offered by health insurers, featuring incentives and rewards for employers; employee contributions would be voluntary.
- We support restoring flexibility to New York's health insurance regulations to permit more innovative and targeted health plan offerings that meet the consumer's needs; flexibility in health insurance offerings gives businesses more diverse and affordable choices.
- We advocate for a crackdown on Medicaid fraud to restore taxpayer confidence in this program
- We support utilization of the mandate-review commission to evaluate the potential impact of proposed health insurance mandates on costs and quality before taking legislative action.
- We endorse the enactment of medical liability tort reform to rein in the costs of medical malpractice insurance.
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Tort Reform
Lawsuits cost New York State businesses millions of dollars each year and create a hostile business environment. The Business Council of Westchester supports tort reform which will minimize the effects of nuisance lawsuits and eliminate a barrier to businesses considering relocation to New York.
We oppose legislation which would mandate pre-judgment interest in personal injury cases.
New York’s consumer protection laws are in need of reform. While New York courts have recognized a plaintiff must prove causation, the statute doe not clearly articulate the scope of the causation requirement. This has opened the door to flimsy claims on the basis of merely "being aware" of advertisements they alleged were deceptive but which they might not have each seen or heard. Reform should also provide that plaintiffs cannot recover damages without showing that they suffered an "out-of-pocket" loss.
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Transportation
In September 2008, the three-state agency team studying the future of the Tappan Zee Bridge and the I-287 corridor across Westchester and Rockland counties announced the preliminary conclusions that the Tappan Zee Bridge must be replaced and that transit planning efforts should focus on the development of a 30-mile corridor bus rapid transit system. Another recommendation was that the new bridge be designed to be able to carry commuter rail lines as well as pedestrian and bicycle lanes. At present, only a commuter line linking Metro-North's Port Jervis Line at Suffern and Hudson Line at Tarrytown has been recommended for further study. The study agencies anticipate release of draft environmental impact statement at the end of 2009.
The Business Council of Westchester has been a strong proponent of an integrated, customer-friendly transportation system as it is paramount to the retention and recruitment of employees in Westchester. Central to that is establishment of a highway separated east-west transit system across the I-287 corridor that provides new mobility that is not auto-dependent. The narrowing of alternatives by the study agencies marks significant progress but the dropping of full corridor commuter rail emphasizes the continued need for the Council as a leader in the Westchester Rockland Tappan Zee Futures Task Force to raise public awareness and support for the infrastructure that will support "real" bus rapid transit as opposed to in-street bus lanes.