Press-Republican

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February 12, 2009

Tax foes urge unshackling of upstate

TO LEARN MORE

To learn more about Unshackle Upstate, including its 2009 Priority Agenda, visit www.unshackleupstate.com.

PLATTSBURGH — Reduced state spending, a property-tax cap and energy-cost relief are the goals of a coalition of business and trade organizations.

Unshackle Upstate Executive Director Brian Sampson outlined the coalition's 2009 agenda during a recent news conference.

He noted the situation in Albany has dramatically changed for everyone upstate. For the first time since the mid 1970s, the three people who make decisions on the state budget — Gov. David Paterson, Senate Majority Leader Sheldon Silver and Assembly Majority Leader Malcolm Smith — are all from the same party.

"Unfortunately for us, they all come out of New York City," Sampson said, and New York City residents and lawmakers face a different financial reality from those of upstate.

HEALTH EFFORTS
Sampson said that since health care and education make up 70 percent of the state budget, Unshackle Upstate recommends education and Medicaid funding continue at 2008-09 levels. That would save $2.4 billion and $2.7 billion, respectively.

Another $2 billion could be saved through shared services and government consolidation, he said.

One example would be to merge the New York State Thruway Authority and New York State Department of Transportation.

EMPLOYEE BENEFITS
Spending could also be cut by requiring public employees to contribute more toward their benefits, similar to most in the private sector.

Plattsburgh Mayor Donald Kasprzak said employee benefits and salaries are 75 percent of the city budget.

"That has to reverse. Our public employees have to help us, and they aren't," he said.

TAX CAP
The coalition also wants to see a meaningful property-tax cap.

"That allows predictability (of costs) on our part but also allows the rest of the country to catch up," Sampson said.

Bill McBride Chevrolet Subaru owner Brian McBride said when he meets with other dealers from across the country, they are shocked at the cost of doing business in New York. His business won't be able to shoulder much more of a tax burden, he said.

"I'm head and shoulders above the group in the cost of doing business in the state. I think it's time for some sweeping changes in what we're (New York state) doing."

Unshackle Upstate also would like to see the Office of the State Comptroller issue an annual report on the cost for local municipalities to comply with legislative mandates.

ENERGY COSTS
The third focus is to lower energy costs. The coalition wants low-cost energy programs to be centralized and streamlined, chosen using one set of pro-business criteria.

Sampson said the need exists to revitalize the electrical infrastructure to allow it to handle increased production from new sources, such as wind turbines.

Unshackle Upstate is a coalition of more than 73 business and trade organizations in the state of New York. It represents more than 4,500 employers and more than 1 million employees.

Sampson's visit was hosted by the Plattsburgh-North Country Chamber of Commerce, which has been a member of the coalition since 2006 and is now on its executive committee.

It is more important than ever, given the economic situation at the state and federal level, Chamber President Garry Douglas said.

"The timing couldn't be more critical with all the challenges we have on our plate right now."

E-mail Dan Heath at: dheath@pressrepublican.com

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