End of Session Report 08 - Buffalo Niagara Partnership

End-of-Session Report
July 1, 2008

New York’s legislative session has ended, and for all intents and purposes, we have to label its outcomes a temporary success. “Success,” because in addition to the passage of important brownfields legislation, a number of particularly onerous bills that would have dire effects on Upstate were not acted upon. “Temporary,” because there is reliable word that the state legislature will be back again this year – and those particularly onerous bills are still on the table.

As a result, we are maintaining our advocacy course as we move into the summer months – heralding some successes, urging governor’s vetoes on some bills that were unfortunately passed, and continuing to build arguments for advocacy efforts on a number of issues that we expect to see again in the near future.

Here’s a rundown:

Goals Met

Brownfields: Brownfields legislation passed at the end of session is certainly a positive step for Upstate. The governor and state legislature should be applauded for coming to a timely agreement on an extremely detailed issue that adds certainty for developers and fiscal accountability for taxpayers. Most importantly, passage of the legislation ends the moratorium on entries into the Brownfield Clean-up Program, getting developers back to work on these important projects – 11 of which are in Buffalo Niagara. The legislation calls for the formation of an Advisory Board for the exchange of views, issues and concerns about brownfields clean-up – Unshackle Upstate leaders have already asked for representation on that Board.

IDA “Reform”: The labor-backed IDA “Reform” bill was not acted upon before the end of session, which is a double-edged sword. On one hand, the legislation would add overbearing costs to IDA-incentivized projects through a prevailing wage mandate, essentially eliminating the benefit of IDAs Upstate; on the other, the IDA’s ability to incentivize important community projects such as Children’s Hospital, D’Youville College and Tapestry Charter School was not extended. We will continue to watch this bill very closely – and actively oppose any costly mandates attached to IDA incentives – as details come clear regarding the legislature’s possible return this summer.

FMLA: Another labor-backed bill, expansion of the Family Medical Leave Act (FMLA), also went without action – which is positive news for small- and medium-sized businesses that would have felt the financial and operational pain of unreasonable amounts of time off for their employees. Again, we will keep a close eye on this legislation.

Veto Requests

Control Boards: Last week, the Partnership sent a letter to Governor Paterson’s office urging him to veto two bills weakening both of our local control boards. The first is a bill passed by the legislature that would change the Buffalo Fiscal Stability Authority (BFSA) to an “advisory” role; the second, would give Erie County the ability to borrow without the approval of the Erie County Fiscal Stability Authority (ECFSA), whose ability to borrow at better rates – and thus save taxpayers money in the long haul – is well-documented. We look forward to the governor’s action on these bills.

Retiree Benefits Moratorium: The legislature passed a bill that locks in all local government and school districts to the existing benefit structure and contribution levels for health insurance for retirees through a moratorium provision. It unduly and perhaps dangerously eliminates any potential cost savings that local governments are desperately seeking to meet the growing financial challenge of health care costs, and Unshackle Upstate has urged the governor’s veto.

Goals Not Met

Wicks Not Fixed: While there was a glimmer of hope toward the end of session, repeal of detrimental Wicks Law changes during the 2008 budget process were not made. New PLA and apprenticeship stipulations alienate non-union contractors – many of which have been working on public jobs effectively and efficiently in the past – for these jobs going forward. As a result, costs to taxpayers are expected to rise as much as 20 percent. We will continue to push for the PLA and apprenticeship provisions of the new Wicks Law to be repealed, and we believe that once the state sees the outcome of these politically-motivated changes – they’ll see good reason to do so.

Tax Increment Financing (TIF): An important tool enjoyed by other states for brownfield redevelopment was not acted upon – the ability for municipalities to utilize tax increment financing (using projected gains in taxes to finance current improvements that will stimulate those gains) as a means of encouraging remediation. Through Unshackle Upstate, we will continue to push for TIF reform as part of the larger brownfields discussion.

The end of the state legislature session rarely means that the Partnership’s work at the state level is done for the year. We will continue to advocate on these issues – and others that may arise – as the year progresses. A great place for you to get involved is our Buffalo Niagara Night in Buffalo Niagara event on Tuesday, July 15 at the Buffalo Launch Club. I invite you to join us to spend an evening with our WNY state delegation to talk about the issues that matter most to our business community.