07062005

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2005 NYS Budget and Legislative Session

The key target for our advocacy on your behalf is Albany.  Below please find a brief recap of the state’s 2005 budget and legislative session:

Medicaid Reform
Medicaid reform was the Partnership’s top priority this past year.  The legislature did institute a cap on county costs and some meager cost containment provisions.  In total, the legislature estimates its  plan will reduce (in the counties) local Medicaid costs by $373 million in 2006, growing to a cumulative $3.3 billion by 2009.  Virtually no reform of the state Medicaid program (i.e. cutting the total cost so we aren’t just paying for it through our state taxes instead of county taxes) has yet been enacted; that will be our top priority for next year.

Empire Zones
The Empire Zone program was extended to 2015.  The governor will still have control over the creation of 12 new zones, but the Legislature will have veto power.  There will also be stricter reporting and accountability standards.   The Partnership was concerned about requirements on “contiguous zone acreage” that, if adopted, would have made deals like GEICO impossible.  The Legislature did pass a contiguous requirement, but also created exemptions for major projects – a positive.

Replacement Power Legislation
This year’s bill protects the large block of low-cost hydropower used by many local manufacturers who employ thousands of residents, but also opened up some of our allocation to be used elsewhere in the state.   The bill language says that power can be recalled should a Buffalo Niagara company need it, but that process is not yet clear.  The best news coming out of this legislation is that the criteria for eligibility for low-cost hydropower has been opened up and is no longer tied only to job growth, but also to capital investments made by companies.

Life Sciences
The state reorganized NYSTAR, spinning it off into a public benefit corporation to jump start commercialization of the billions of dollars it has invested in technology at its “Centers of Excellence.”  Included in this is the creation of regional boards to facilitate local development, which is good news for BuffLink. 

Erie County Control Board
No surprise here.  Erie County will see an advisory panel -- that can become a tough control board if the county government does not get its act together -- this fall.  The next big issue is who will serve on the “advisory panel” – a process we’re actively engaged in.

Capital Dollars
The legislature approved millions of dollars in money for capital projects, including $75 million for upstate.  Our priority for next session? Make sure the right projects in Buffalo Niagara get on the wish list for that $75 million.

Expansion of Charter Schools
The Partnership is disappointed that the legislature did not take action to expand the charter school limit – the current limit is 100 and there are already 80 active charters statewide.  Anti-charter school special interests won the day on this one.  The Partnership supports expansion and will advocate accordingly next session.

Not for Profit Health Care Conversion
This has been a controversial issue involving the conversion of not for profit health plans (such as Univera, BlueCross BlueShield, and Independent Health) to for-profit entities.  There has been considerable debate over how such conversions would impact health care in upstate NY and how the windfall from such conversions should be spent.  The Partnership’s interest in this issue has focused on our concerns about the dollars being sent to Albany rather than kept in local communities.  No action was taken on this issue this session; we’ll continue watching this one closely.

Mental Health Parity Legislation
Action on this legislation was successfully blocked this session. The state has used emotional issues such as this one to create health care mandates that drive up the cost of health care for small businesses (and as one result, increase the number of uninsured, as employers become unable to afford coverage for workers).  We’re not opposed to parity, but the Partnership opposes all new health care mandates; we’re a part of the Employer Alliance for Affordable Health Care, which advocates for a much more affordable system that provides a basic level of care and allows for “opting in” for needed services.

State Government Reform
The Partnership was the first business organization in the state to sign onto the Brennan Center Report calling for reform to the way the legislature operates.  The pressure has created some change – there could certainly be more – which is in no small reason why a budget was passed by April 1.  The legislature tightened rules on lobbyists working on procurement of state contracts and adopted tighter control over state authorities – two positive improvements. .And while we can be optimistic that reform has produced some results, it is disappointing that the legislative leaders reverted to “three men in a room” to reach final agreements on a host of issues.  Still more work to do.

Early word is that the legislature will convene some time this summer to address a short agenda of unresolved issues, including those listed above -- we’ll be there, too.  Besides those on our agenda, the main issue this summer will be casino gaming in the Catskills.

As your agent, we will continue to pursue our legislative agenda on your behalf and will not walk away from any issue, no matter how complex, as long as it has direct impact on the well-being of our members and of the regional economy. 

Please feel free, as always, to contact me with your questions or comments.

Sincerely,

Andrew J. Rudnick