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Action in Albany to reform state mandates and New York's
civil justice system would help reduce local taxes and improve
services of municipal governments, local elected officials
told key lawmakers this week.
New York City Mayor Rudolph W. Giuliani and other elected
officials representing counties, cities, towns and villages
were unanimous in asking the Legislature to approve Governor
Pataki's proposals to reform mandates--which The Business
Council also supports strongly--and to go further.
The local officials' calls for mandate relief and tort reform
were largely unreported by the media.
Giuliani pointed to the Governor's proposal to lift the threshold
for application of the Wicks Law, which requires multiple contractors
on public construction projects. The law, which now affects
projects valued at $50,000 or more, would instead apply to
projects valued at $2 million in most municipalities, and $10
million in New York City.
"I applaud the Governor's support of Wicks reform, but I urge
that the reform go further," the Mayor said. The law, he said, "is
wasteful and must be repealed in its entirety."
Giuliani called reform of the state's civil justice system "another
critical mandate relief item."
"Tort reform would enable the City to continue to compensate
injured parties reasonably while preventing tort costs from
escalating uncontrollably," he said.
New York City expects to spend $391 million on judgments and
claims this fiscal year. A recent report by City Comptroller
Alan G. Hevesi predicted that figure will rise over the next
three years to $453 million--more than the entire collections
from the city's commercial rent tax or its sales tax on clothing.
Giuliani pointed to "two key components" of the city's tort
reform proposal. One would provide "a reasonable cap" of $250,000
on pain-and-suffering awards. The second would establish a
minimum medical expense threshold of $5,000 for plaintiffs
seeking non-economic damages, to prevent major awards to claimants
with minor injuries.
Syracuse Mayor Roy Bernardi, president of the New York State
Conference of Mayors, said local officials and taxpayers "need
mandate relief, not mandate rhetoric.
"For the past several years many important mandate relief
proposals have been advanced by the Governor and legislators,
yet minimal relief has actually become law," Bernardi said.
He called for "significant mandate reforms," including changes
to the Wicks Law, this year.
G. Jeffrey Haber, executive director of the Association of
Towns, said 75 percent of total town construction costs
are for projects in the range of $1 million to $4 million.
Costs for those projects would be cut under the Governor's
Wicks reform plan.
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