Unshackle Upstate Leaders Advocate for the Implementation of Tier VI
2012 is the right time for pension and additional mandate reform
The Leaders of the Unshackle Upstate coalition today called upon all members of the state Legislature to push Senate and Assembly leadership to support pension reform, including implementation of a new Tier VI. Pension reform is among several important mandate relief items that the Unshackle, a statewide pro-taxpayer coalition, has long advocated for.
Brian Sampson, executive director of Unshackle Upstate, said pension and mandate reform are essential to ensuring New York’s economic future, the logical steps that must follow the property tax cap implemented this year. Creating a Tier VI and capping the counties’ contributions to Medicaid are a great place to start.
“We pushed hard and were successful in getting a property tax cap passed into law,” Sampson said. “But we said all along that the cap was just the first step, and that meaningful mandate relief had to follow - and follow quickly. These two measures - creating a Tier VI and capping the counties’ contributions to Medicaid - are a great place to start. Unshackle Upstate will work just as hard on getting these adopted as it did on passage of the tax cap. We call on the rank and file of the Legislature to get behind these measures and do what’s right for the taxpayers and job creators of New York state.”
Mandate relief for local governments and school districts is central to Unshackle Upstate’s 2012 policy agenda, as they are critical to reducing the tax burden on New Yorkers and making our communities more affordable. It is why they helped to create Let New York Work, A Common Agenda for the Common Good.
“Pension reform and the Medicaid cap for counties are both desperately needed to provide tax relief to municipalities and taxpayers,” said Sandy Parker, president and CEO of the Rochester Business Alliance and a co-founder of Unshackle Upstate. “The current pension system simply isn’t sustainable. In the city of Rochester, for example, pension costs are projected to increase 75 percent next year alone. The defined contribution plan outlined in Gov. Cuomo’s proposal for a Tier VI in the pension system will allow local governments to better plan now for future increases, while giving employees a choice and a role in saving toward their own retirements. And the Medicaid cap will help counties stay below the 2-percent property tax cap while experts look at ways to reform that system and make it more efficient.”
“Gov. Cuomo has proposed a significant plan to begin to control the state's out-of-control pension system cost; now it’s time for the Legislature to act on it,” said Andrew J. Rudnick, CSNY member and President and CEO of the Buffalo Niagara Partnership. “Employers are looking to governments at all levels to show increased fiscal responsibility, and I think Albany has the chance to do its part with this plan. Getting New York’s pension costs under control is another step toward making this state, and our region in particular, a more competitive place for business investment and job creation.”
"Reducing and controlling mandated costs that are going on the property tax bill must be an absolute priority this year in follow-up to last year's enactment of the Property Tax Cap," said Garry Douglas, president and CEO of the North Country Chamber of Commerce. "Gov. Cuomo has put forward two essential steps in the right direction. The legislature must enact the state assumption of future increases in Medicaid costs so that none of the increased costs go onto property taxes anymore. And we then must have a common sense Tier VI pension system for new public employees in the future, just as the governor has requested. These two advances along with other mandate and regulatory relief this session can really but our state firmly on track for fiscal responsibility and economic growth."
New York needs to be an affordable locale for businesses and taxpayers alike, Unshackle leaders said, particularly as the state works to rebound from the recession.
“While New York has made great strides to recover from years of fiscal irresponsibility, Medicaid and the public pension system continue to be the albatross around the neck of taxpayers,” said Lou Santoni, president and CEO of the Greater Binghamton Chamber of Commerce. “The governor’s proposal for pension reform with the addition of a Tier VI is a strong proposal that will begin to address the long-term structural reform Unshackle has long advocated for. As the property tax cap emphasized the need for meaningful mandate relief, a cap on Medicaid must place the same emphasis on reform of the system entirely. I am confident that given the governor’s approach thus far, these are two areas where we will begin to see positive change.
“New York’s costly and outdated pension system is ripe for an overhaul, and Gov.Cuomo’s proposed reforms will allow the state to begin to reign in future costs while providing future public employees effective pension plan options that really put them in the driver’s seat where their retirement planning is concerned,” said Rebecca A. Meinking, executive vice president of Radec Corporation and a representative of the Empire State Chapter of Associated Builders and Contractors. “ The proposed cap on local governments’ Medicaid costs, while a temporary Band-Aid in the overall solution to devastating annual cost increases, is necessary and prudent as the state moves toward redefining the Medicaid system and creating a more cost effective and sustainable program to carry New York into the future. We commend Gov. Cuomo for his leadership in beginning to address these critical and costly issues as he continues his efforts to unlock New York’s financial future.” The governor has recognized that the pension and Medicaid systems are long term issues that will continue to plague the State for years to come if relief is not addressed.
Included in the 2012-13 proposed budget, Tier VI can potentially save New York taxpayers more than $100 billion dollars over the coming decades without effecting any current employees. Similar to other states, Tier VI would offer future workers the opportunity to choose a retirement option that best suits their personal needs.
“Gov. Cuomo’s proposed reform plan clearly shows that he is prepared to continue working with his Legislative colleagues in tackling our state's significant issues, in particular pension and Medicaid reform,” said MACNY President Randy Wolken. “Addressing key, long-term concerns hindering our state’s ability to improve its business climate including implementation of a Medicaid cap and the introduction of a Tier VI pension plan are both welcomed initiatives by the State’s hard working manufacturing community. MACNY applauds Gov. Cuomo's continued efforts in getting New York back on track, and looks forward to working with the administration and the Legislature on this, and other much needed tax relief reform initiatives during the 2012 Legislative session.”