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Government Affairs Council Update

December 21, 2007

Business Council Budget Testimony
Staff Contact: Ken Pokalsky

Business Council President Kenneth Adams argued for spending restraints and
further tax reform in testimony delivered this week to the New York State Division
of Budget. Over the past two weeks, the Division has held hearings on education,
real property taxes, housing and economic development issues, as its completes its
work on the Executive Budget proposal for Fiscal 2009.

Key findings and recommendations in our testimony included:

  • State revenues are up significantly, with state tax collections up by $11
    billion over the past three years. The state’s projected deficit is a function of
    excessive spending growth, based on a $5.5 billion, or nearly ten percent,
    increase in General Fund spending next year.

  • Spending growth should be targeted to the rate of inflation. If we had
    applied this standard over the past three years, we would be entering FY
    2009 with a budget surplus.

  • New York needs to adopt additional tax reforms supporting new capital
    investment, and new economic growth in New York State, with an emphasis
    on the innovation economy, and the crucial need to promote new growth in
    Upstate.

  • High property taxes continue to adversely impact business, and are a drag
    on economic growth. In conjunction with STAR rebates, the state should
    adopt significant mandate reform and cap on local property tax levies in
    order to assure real property tax relief.

These concerns were echoed by other hearing participants. Rochester Business
Alliance President Sandy Parker, speaking on behalf of the Unshackle Upstate
Coalition, argued for several initiatives targeting upstate, including a five year phase
out of corporate franchise taxes for all business operating in Upstate, for an
expanded “shovel ready sites” program, and for brownfield program reforms.

Economic Development Council President, Brian McMahon, also argued for spending
constraints; for preserving key economic development tools, such as Empire Zones
and Industrial Development Agencies; and for increasing the role of Empire State
Development Corporation’s regional offices in supporting regional development
efforts.

Business Council/Department of Labor Discuss Employee Misclassification Task Force
Staff contact: Walter Pacholczak.

The Business Council met with Department of Labor representatives this week to
discuss Executive Order 17, which establishes a Joint Enforcement Task Force on
Employee Misclassification. Members include the Commissioner of Labor, Attorney
General, Commission of Taxation and Finance, Chair of the Workers’ Compensation
Board, Workers’ Compensation Fraud Inspector General, and the Comptroller of the
City of New York. The Executive Order was created to respond to concerns that
employers in New York and elsewhere are improperly classifying individuals as
“independent contractors.”

The Task Force is examining ways to better coordinate and implement enforcement
of employers’ legal obligations under the federal and state labor; employment and
tax laws including minimum wage, overtime, prevailing wage, unemployment
insurance, workers’ compensation insurance, temporary disability insurance, wage
payment and income tax. The Department has posted on its web site ways for tips or
complaints to be filed with Department of Labor
.

The Business Council emphasized to the Department that some claims of worker
misclassification are not indicative of employer wrongdoing. The Department agreed
to work with the Business Council to address these and other employer concerns.
The Task Force is scheduled to release a report to the Governor on February 1. The
report will provide details about investigations and enforcement actions. Members
who have questions or concerns about employee classification or responsibilities
under the various state statutes for wage and benefit coverage can find further
information on the Department's web site at: www.labor.state.ny.us.

Business Council Events for 2008

2008 Legislators’ Reception
Tuesday, January 22, 2008
Crowne Plaza Albany

The Board of Directors of The Business Council of New York State, Inc. cordially invite you to our 2008 Annual Legislators’ Reception. Mix and mingle with hundreds of Business Council members, state officials, legislators and their staffs. Name tags will be required.

RSVP by phone: 518-465-7511, fax: 518-465-9567, email: events@bcnys.org, or online:

Please respond by January 11, 2008.

A limited number of rooms has been reserved at the Crowne Plaza Albany. Call 518-462-6611 and identify yourself as a Business Council participant to obtain the special rate of $159. Cut-off date: January 4, 2008.

Sponsorships are still available. Your company Logo will be displayed on our web site, as well as multiple screens throughout the Reception. The level of sponsorship will determine the size and length of time your logo is displayed. Logo submission deadline is January 10, 2008.

The sponsorship levels include: Platinum at $2,500, Gold at $2,000; Silver at $1,500, or Patron at $1,000.

Sign up today to become a sponsor or contact Ellen Muir at ellen.muir@bcnys.org or 1-800-358-1202 for further information.

2008 Homeland Security Conference:
US / Canadian Border Management & Commerce: A View From the Front
Wednesday, January 23, 2008
Crowne Plaza Albany

Join this very important discussion on U.S./Canadian Relationships, focusing on
Northern Border Management & Commerce Issues.

In today’s global business environment it is important that the public and private
sector continue to work together to find ways to improve security at our borders
without infringing on business and industry’s economic well being. Conference
participants will hear from top officials from the US and Canada about programs
facilitating trade while keeping our borders secure. Attendees will also learn about
New York State procurement procedures and opportunities.

In addition to a packed agenda, the conference will provide important networking
opportunities for U.S. and Canadian companies, to assist you in forging partnerships
beneficial to your organization.

   


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