ALBANY — Gov. Andrew Cuomo and his proposals to cap property-tax growth in New York and revive the economy upstate gained strong support this week in a poll of voters and among business interests.
Among those hailing the measure is North Country Chamber of Commerce President Garry Douglas, who says 96 percent of the private-sector-job creators in northern New York identify the tax cap as one of the two key things that must be done in Albany this year before they will have the confidence to start adding jobs once again.
"We simply cannot miss the long overdue opportunity to start enacting reasonable limits on government spending and taxes in New York, and the pending property-tax cap, as proposed by Gov. Cuomo and passed by the State Senate, is at the head of the to-do list," he said in a statement.
REDUCE SPENDING
Douglas said the other "must" action is reduction of state spending.
"As for those who say it must be linked to other things, we need to do all of the above this session when it comes to proposed reforms, reductions and caps, but avoid the Albany game of saying something didn't happen because it was linked to something else," he said.
'GRAVY TRAIN'
But state lawmakers — Cuomo's immediate audience — didn't tip their hand as they continue to dissect the Democrat's proposed 2011-12 budget.
"The gravy train of unsustainable spending and unsustainable taxes has derailed New York," said Mike Elmendorf, state director of the National Federation of Independent Business. "The tax cap is a tourniquet on a badly injured economy."
Brian Sampson of the business group Unshackle Upstate said typical property taxes increased 73 percent from 1998 to 2008, omore than twice the rate of inflation. Cuomo's proposal would cap local property taxes at 2 percent or the rate of inflation, whichever is less, although local voters could suspend the cap with a 60-percent margin in a referendum.
Sampson said property taxes are 39 percent of a typical business tax bill, more than sales tax and corporate income tax.
"It's one of the most regressive taxes for a land-intensive family farm," said Julie Suarez of the New York Farm Bureau. She said that farmers are squeezed because big property tax bills rise regardless of profit earned.
PADDED BUDGET RISK
Cuomo's bill was passed in the Senate with strong bipartisan support. But supporters of the bill in the Assembly introduced by Speaker Sheldon Silver, a lower Manhattan Democrat, worry it will be changed in that chamber, where teachers unions and other advocates for school aid are lobbying hard against the cap.
Silver has said he supports it but hasn't said specifically what form that should take. "We believe it will pass," Sampson said. "We need it to get to the floor for an up-or-down vote."
If the governor's tax cap is passed, it won't take effect until the local school budget votes in May 2013. Asked if he fears passage of the bill into law before the budget votes this May could trigger bloated budgets this year to pad future increases, Sampson said: "I think you always run that risk."
VOTER SUPPORT
Cuomo has said he needs to muster strong public support for his cap and budget cuts to get them approved by the Legislature. Earlier this week, a Siena College Research Institute poll gave him ammunition.
The poll showed that 77 percent of voters surveyed had a favorable view of the governor. Seventy-two percent supported his budget, although there is opposition to some of its spending cuts, particularly for his 10-percent cuts to the State University of New York and City University of New York.
The poll questioned 801 registered voters from Feb. 7 through 16. It has a margin of error of plus or minus 3.5 percentage points.
By nearly 2 to 1, voters supported an extension of a temporary income tax surcharge on New Yorkers making $200,000 or more. Cuomo, however, opposes that as bad for business and says it would chase more rich residents and employers out of state.
"We're constantly concerned about millionaires leaving New York state," said Ron Deutsch of New Yorkers for Fiscal Fairness. "But we don't seem to be as concerned about New Yorkers living paycheck to paycheck."
"We seek a balance between revenue and expenditures," he said.
He noted that New York is facing near-record unemployment, homelessness and hunger, and programs to serve them need to be restored in part with billions of dollars in revenue from what its advocates call the "millionaire's tax."
"They are already suffering," he said, "we don't need to add insult to injury."
REGIONAL COUNCILS
Sixty-four percent of voters supported Cuomo's plan for "regional economic development councils" directed by local employers and universities to spur growth, particularly in high technology and manufacturing.
But at the budget hearing in Albany, lawmakers were provided few details of the program to attract jobs, which is still being developed.
Dennis Mullen, the departing chairman and CEO of the state Empire State Development Corp., couldn't even tell Assemblyman Robin Schimminger, an Erie County Democrat, when the new system would begin.
"We will go as fast as we can and as slow as he have to," Mullin said.
He said there is excitement in the business community for the new structure, in which regional boards will decide how best to use tax credits and other tools to attract new jobs, rather than decisions coming from Albany.
— Staff Writer Joe LoTemplio contributed to this report.


