Government Affairs Council
Update
January 18, 2008
GAC Meeting Scheduled
Staff Contact: Ken Pokalsky
The first Government Affairs Council meeting of 2008 will be held Tuesday, February 5 from 10:00 a.m. to 12:00 noon at The Business Council’s offices at 152 Washington Avenue in Albany.
Our featured speaker will be the state’s new Budget Director, Laura Anglin. Note that Governor Spitzer’s proposed Executive Budget for 2008-2009 will be released on January 22. Ms. Anglin will be providing an overview of the budget proposal, with an emphasis on “gap closing” measures, and any tax reforms or revenue measures included in the Executive Budget.
Other agenda items will include a staff review of key budget proposals and discussion of Business Council priority issues for 2008
We hope that you can attend this important session. If you plan on participating, it would be appreciated if you could RSVP by return email to janet.carroll@bcnys.org. If you have any questions, or proposed agenda items, please contact Ken Pokalsky at ken.pokalskay@bcnys.org.
Upstate State of the State
Staff Contact: Ken Pokalsky
Governor Spitzer delivered the first ever “State of Upstate” address this week. (The press release and speech text are both available here.)
In it, the Governor highlighted several issues of priority interest to Business Council members.
In addition to several items discussed in the State of the State message, such as no new taxes, and a commission on real property tax caps, the highlights of the Governor’s upstate address includes:
A $1 billion Upstate Revitalization Fund that would include:
- a $350 million “Regional Blueprint” fund to include significant capital for development ready sites and industrial parks; a small business loan program; a $10 million venture capital fund; and an international marketing office within Upstate ESDC.
- funding for already announced Phase 1 “city by city” projects as well as funding for additional phase 2 projects for smaller upstate cities.
- a $100 million upstate housing & community development fund, including funding for new affordable housing and housing rehabilitation.
- a $50 million upstate agriculture fund and the naming of a state Director of Agriculture Development.
- $15 million for universal broadband investments.
- $100 million for “critical transportation infrastructure” investments in upstate New York.
- $80 million for upstate parks.
Additional initiatives included:
- reform of the state’s brownfield program.
- new legislation to extend Power for Jobs, allowing for 7 year contract extensions, with benefits based on new job and investment criteria.
- adoption of the “Great Lakes Compact” (a regional program for new/increased water withdrawals/consumptive uses).
- a second annual “I Live NY” summit in Buffalo September 16th (coinciding with The Business Council’s Annual Meeting.)
- an additional $50 million in “Aid and Incentives to Municipalities” funding for distressed upstate cities.
AFL-CIO President Presents to State Senate Labor Committee
Staff Contact: Maggie Moree
Denis Hughes, NYS AFL-CIO President, headlined this week’s State Senate Labor Committee agenda outlining his members’ top priorities for the legislative session, stressing that economic security was key. The 2008 legislative AFL-CIO agenda includes an increase and indexing of unemployment insurance benefits; paid family leave; IDA reform which includes wage and benefit thresholds for IDA investments; and health insurance reforms.
“Great Lakes Compact” Legislation
Staff Contact: Marcus Ferguson
The Senate Environmental Conservation Committee and the Assembly Codes Committee are expected to move proposed ”Great Lakes Compact” legislation next week (S.4324-B/A.7266-B). This landmark legislation would create consistent, region wide criteria for the review of significant new or increased water withdrawals within the Great Lakes Basin. This compact was initially negotiated by the Great Lakes Governors in 2001. To be implemented, the Compact must be approved by the legislatures in all eight Great Lakes States (NY, PA, OH, IN, MI, MN, WI, and IL) and then by Congress. New York would be only the third state to adopt the Compact; to date; it has been ratified by Illinois and Minnesota. While The Business Council has not opposed this legislation, we have urged the legislature to adopt companion legislation that would clarify several provisions of the Compact, and finalize several discretionary provisions of the Compact (i.e., defining baseline withdrawals for existing facilities.) It is expected that additional, but not all, Great Lake states will finalize Compact legislation in 2008.
Senate Proposes Changes to New UI Striker Replacement Law
Staff Contact: Tom Minnick
In August, the Governor approved legislation (S.627/A.5317, Chapter 512) suspending the seven week unemployment insurance waiting period for strikers when any replacement workers are hired. In approving this legislation, the Governor expressed concern about confusing bill language and the possibility that all employees could receive unemployment benefits even though all were not actually replaced.
An agreed to chapter amendment has been introduced as S.6489-A (Marcellino). It was reported out of the Senate Labor Committee on January 14th and passed the Senate on January 15th. There is no Assembly version, as yet.
In it, the wording covering temporary replacement is deleted but is replaced with a requirement that employers certify in writing that employees will be able to return to their prior position at the conclusion of the strike. If the employer does not make the written certification, the replacement is considered permanent and the striker is eligible for unemployment insurance benefits free of the seven week suspension. In addition, if the employer makes the certification and then does not return the striker to the job at the conclusion of the strike, the employee may recover the suspended benefits with interest and the employer may be fined up to $750 per employee per week of lost benefits.
The Business Council opposed last year’s striker’s benefit legislation, and has opposed S.6489 in that it imposes additional administrative burden and potential penalties on employers.
Minimum Wage Bill on Assembly Labor Committee Agenda
Staff Contact: Tom Minnick
A.9168-A (Silver), which would raise the state's minimum wage to $7.75 on 1/1/08, $8.00 on 1/1/09, $8.25 on 1/1/10 and automatically indexed on 1/1/11, is on the January 23rd Assembly Labor Committee agenda. There is no Senate version. New York's minimum wage is currently $7.15 per hour while the federal minimum wage is $5.85 and scheduled to increase to $6.55 on July 24, 2008.
The Business Council has yet to take a position on this bill.
Washington Update
Staff Contact: Maggie Moree
- H-2B Workers Cap Reached
The Department of Homeland Security’s Citizenship and Immigration Services (CIS) announced that as of January 2, 2008, the cap for H-2B visas for the second half of fiscal year 2008 had been reached. This period is for an employment start date after April 2, 2008. The H-2B workers fill seasonal or one-time temporary labor needs in occupations such as construction, health care, landscaping, lumbering, manufacturing, food services, food processing and resort and hospitality services. CIS plans to continue processing petitions to extend the stay of current H-2B workers in the United States, change their terms of employment, or allow them to change or add employers.
- Economic Stimulus Package Talks Underway
Quick action on a stimulus package has become a top issue for the White House and Congressional leaders and, as talk of a measure in the range of $100 billion heat up, business leaders are advancing a number of items which they see as effective short-term stimuli: tax breaks to allow greater expensing; reducing corporate capital gains tax rates; extending the research and development tax credit. NFIB is backing “bonus depreciation”, which would allow companies to deduct more for their equipment for a defined period, and extending the net operating loss carry-back limit from two to five years. Additional items being discussed within Congress for inclusion in any package include money for state governments, including a temporary increase in the federal Medicaid matching rate as well as extra money for food stamps and unemployment insurance.
- Moderate Democrats Set ‘Doable’ Agenda for Election Year
The House New Democrat Coalition, is preparing to launch a health policy task force with a legislative agenda that includes a proposals endorsed by the Bush Administration. Some of the proposals, such as electronic prescribing requirements and payments for providers based on the quality of care, have been pursued by HHS. Others are more ambitious, such as creating fully portable health insurance coverage and expanding school- and work-centered prevention benefits. The agenda also includes mandated comparisons of the effectiveness of drugs and treatments, as well as legislation to allow FDA to approve generic versions of biologic drugs. Task force members are hoping their respective committee seats will bring new ideas to the health debate. Task force chairs sit on the Energy & Commerce Committee which has jurisdiction over the FDA, Medicaid and SCHIP; Ways & Means Committee which has jurisdiction over Medicare and some private insurance regulations; and Education & Labor Committee which has jurisdiction over employer benefits and some welfare rules.
- Rescue Package for Nation’s Housing Industry?
Amid discussions on a stimulus package, top Democrats are exploring the possibility of allowing state housing authorities greater ability to go into distressed areas to finance the purchase of foreclosed homes and creating a temporary government agency that would provide insurance to stabilize the mortgage-backed securities market. Some members believe that the subprime situation is a prime factor driving the economic downturn and thus should be the focus of any stimulus package.
The proposal could be paired with tax legislation that would allow states and cities greater latitude to use tax-exempt bonds to refinance troubled loans. US Senator Charles Schumer and the Treasury Department have gone on record in support of this type of approach.
- Panel Calls for Gas Tax Boost; Transportation Secretary Says "No" to Gas Tax Increase
The National Surface Transportation Policy & Revenue Study Commission released its report on Tuesday calling for the federal gas tax to increase from 25 to 40 cents per gallon over the next five years and then be indexed for inflation. A majority of the 12 member panel, established under the 2005 surface transportation reauthorization bill, also recommended a federal passenger ticket tax on transit and intercity rail trips. The report calls for the gas tax and other user fees to go into a new surface transportation trust fund, which would replace an existing highway trust fund that is projected to have as much as a $5 billion deficit next year. Three members -- including Transportation Secretary Peters - dissented from the commission findings including the gas tax increase. They disputed the majority view that at least $225 billion in transportation investment is needed annually over the next 50 years to upgrade highways, transit and passenger rail. A majority of the Commission members also believe federal and state transportation agencies should start planning to implement alternative funding sources and recommend that the next surface transportation reauthorization bill require a national study to develop strategies for transitioning to other revenue sources.
Business
Council Committee Meetings
- Government Affairs Council Meeting
Tuesday, February 5, 2008
10:00 a.m. to 12:00 p.m.
Business Council Headquarters
152 Washington Avenue, Albany, NY 12210
Registration Contact: Janet Carroll
- Tax Committee Meeting
Tuesday, February 5, 2008
1:00 p.m. to 3:00 p.m.
Business Council Headquarters
152 Washington Avenue, Albany, NY 12210
Registration Contact: Janet Carroll
- Healthcare & Health Insurance Committee Meeting
Thursday, February 7, 2008
10:00 a.m. to 12:00 noon.
Business Council Headquarters
152 Washington Avenue, Albany, NY 12210
Registration Contact: Janet Carroll
Business
Council Events for 2008
2008 Legislators' Reception
Tuesday, January 22, 2008
Crowne Plaza Albany
Last chance - Register by Tuesday at noon.
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.
2008 Homeland Security Conference:
US / Canadian Border Management & Commerce: A View From the Front
Wednesday, January 23, 2008
Crowne Plaza Albany
Last chance - Register by Tuesday at noon.
Join this very important discussion on U.S./Canadian Relationships, focusing on Northern Border Management & Commerce Issues.
