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WelcomeSince the Legislature adjourned in June, New York State has experienced several months of economic turmoil as New York's economy has continued to falter. Governor Paterson and the Legislature returned to Albany in late August to address the ongoing budget deficit, resulting in an agreed upon $1 billion, two-year savings plan that is free of any tax or fee increases. Despite these cuts, the State budget deficit continues to grow. As a result, increased attention has been focused on how the State can close this gap. Governor Paterson Calls for November 18th Special SessionGovernor David A. Paterson has called for a November 18th special session of the Legislature to close a potential $1.2 billion current-year budget shortfall related to the turmoil on Wall Street. Furthermore, Paterson announced he would deliver his 2009-10 Executive Budget on December 16, 2008, which is more than one month earlier than normal. Click here for more information. Mid-Year Financial Indicators Reveal Rough Road Ahead Says Comptroller DiNapoliOverall General Fund tax collections were up 11.2 percent midway through New York State’s fiscal year compared to this time last year despite the volatility in the economy, but trends show growth is dropping off, according to a report issued by State Comptroller Thomas P. DiNapoli. Business taxes have decreased 13 percent compared to last year and the growth in personal income tax is starting to decline. Click here for more information. Economists Tell Assembly Ways & Means Committee of Impacts on National Recession, Recommend State and Federal ResponseA panel of economists testified this week at an Assembly Ways & Means Committee hearing about the impact of the current global economic crisis on the State's working families, businesses, and communities. Nouriel Roubini, a professor of economics at New York University and a former economist with the White House Council of Economic Advisors, described the current fiscal crisis as the worst since the Great Depression. He advocates for deficit spending in the near-term; that investments should include new infrastructure by government in order to keep people working during this economic downturn. Another panelist – Professor Brian O’Connor - believes that a “massive bailout” is now needed for a stimulus package to help state and local governments respond, and that the federal government should and must provide block grants to state and local governments. He and other witnesses spoke of enormous job losses in the New York City metropolitan area, perhaps totaling more than 250,000 before the recession ebbs after 18-24 months. Additional speakers included Hugh Johnson, Chairman and Chief Investment Officer of Johnson Illington Advisors, LLC. and Pearl Kamer, Chief Economist for the Long Island Association. Assembly Speaker Sheldon Silver, Assembly Ways & Means Committee chair Denny Farrell and other members of the committee inquired as to the long-term effects of the financial crisis on New York City’s financial institutions, and on the value of residential and commercial real estate throughout the region. They promise additional hearings over the next several weeks to focus on other areas impacting the fiscal health of the state, including the Governor's modifications to the state budget. Click here for more information. Comptroller DiNapoli Finds $407 Million in Taxpayer Money Stranded in School Reserve FundsMore than $400 million of local taxpayer money is sitting unused and inaccessible in school districts’ reserve accounts across the state, according to a recent audit released by State Comptroller Thomas P. DiNapoli. School districts statewide set aside about $407 million more than necessary to pay for leave time accruals for departing school district employees. Click here for more information. O'Byrne Resigns, Cunningham and Hitchcock Assume New Roles in Paterson AdministrationGovernor Paterson has accepted the resignation of Secretary to the Governor Charles O'Byrne. Governor Paterson has appointed advisor Bill Cunningham as acting Secretary to the Governor and has also appointed Deputy Secretary for Labor and Financial Regulation Charlotte Hitchcock as Chief of Staff and Director of Financial Regulation effective immediately. Click here for more information. Governor Paterson Announces Additional AppointmentsGovernor David A. Paterson announced that he will appoint Dennis P. Whalen to serve as Director of State Operations, Joe Baker to serve as Deputy Secretary for Health and Human Services and Duffy Palmer to serve as Deputy Secretary for Education to the Governor. Click here for more information. Governor Paterson Establishes the New York State Commission on State Asset MaximizationThis Commission will study potential public-private partnerships including ways to leverage the State’s physical and human capital resources, without looking at selling assets, to better serve its citizens. This body is required to submit a preliminary report of their recommendations to the Governor and the Legislature within 90 days, and a final report within 180 days. The Commission will hold hearings and meetings across the State. The 11 appointees to the Commission include:
Click here for more information. Governor Paterson Signs Law to Heighten Pension System StandardsGovernor David A. Paterson recently signed into law Chapter 640 (S.8699 Skelos/ A.11743 Sweeney), to curb abuses in the state pension system. A recent investigation found abuses of the pension system within school districts, particularly by attorneys being paid as both an employee and independent contractor, and by recent retirees who used state waivers to work at essentially the same positions for which they were collecting pensions. Click here for more information. Statewide Health Insurance Enrollment Center Will Assist New Yorkers Enrolling in Medicaid, Family Health Plus, Child Health PlusState Health Commissioner Richard F. Daines, M.D., has announced that New York State has taken the next step toward the development of a statewide centralized Enrollment Center that will simplify re-enrollment for Medicaid, Family Health Plus, and Child Health Plus and reduce the economic burden on counties. The Statewide Enrollment Center will include a single statewide telephone and mail-in renewal system and toll-free call center for New Yorkers seeking information and assistance enrolling in Medicaid, Family Health Plus, and Child Health Plus. Currently, separate hotline numbers exist for each of these programs, and telephone re-enrollment assistance is not available. Click here for more information. Governor Paterson Announces $280 Million in Grants for Statewide Health Care ProjectsGovernor David A. Paterson has announced $280 million in grants to fund health care restructuring projects throughout New York State that will expand the availability of primary care in local communities, cut duplicative services in hospitals, “rightsize” nursing homes and fund consolidation projects by health care providers. These grants are funded through the Health Care Efficiency and Affordability Law for New Yorkers (HEAL NY), passed in 2006. HEAL NY authorizes the State to appropriate or bond up to $1 billion for projects that support the mandates of the Commission on Health Care Financing in the 21st Century (Berger Commission). The grants include:
HEAL NY Phase 6 – Primary and Community-Based Care, $100 million Click here for more information. Governor Paterson Announces Largest Commercial Bank in China Opens Branch in New York StateGovernor David A. Paterson announced that Industrial and Commercial Bank of China (ICBC), the largest bank in mainland China, is opening its first U.S. branch in New York City. This is the latest positive development for New York’s financial marketplace, following the announcement by Goldman Sachs to headquarter its new full-service banking operations in New York City. Founded in 1984, ICBC has grown to be the largest bank in mainland China, and is the world’s largest bank by market capitalization with shares traded in both Shanghai and Hong Kong stock exchanges. As of December 31, 2007, ICBC had a market value of $339 billion. It has branches and offices in China and 13 other countries with over 380,000 employees servicing the banking needs of 170 million individual customers and almost three million corporate customers. Click here for more information. Governor Paterson Nominates Department Of Economic Development CommissionerGovernor David A. Paterson announced that he has nominated Marisa Lago, who is Acting President and Chief Executive Officer of the Empire State Development Corporation (ESDC), as Commissioner of the Department of Economic Development. Ms. Lago will have complete oversight of economic development issues throughout New York State. Click here for more information. Governor Paterson Announces $170 Million In New Federal Funding For New York’s Food Stamp ProgramGovernor David A. Paterson announced that New York State has implemented changes to the Home Energy Assistance Program (HEAP) that will result in an increase of $150 million in Federal Food Stamp benefits for low-and moderate-income families. Additionally, the passage of this year’s federal Farm Bill provided an extra $20 million to New York’s Food Stamp program for next year. Click here for more information. Governor Paterson Launches Statewide Campaign To Assist Vulnerable New Yorkers With Rising Heating CostsGovernor David A. Paterson has launched a new statewide, multi-agency public information education campaign called HeatSmartNY, to provide New Yorkers facing skyrocketing home heating costs with the tools and assistance they need to get through this coming winter. Additionally, Governor Paterson announced the award of $3.5 million in federal grants to low-income New Yorkers for the installation of energy efficiency measures in 1,205 homes. The grants, awarded by the Division of Housing and Community Renewal (DHCR), will enable weatherization agencies across New York to address unmet energy efficiency needs in their communities. Click here for more information. Hinman Straub to Host New York State Lobbying Compliance SeminarHinman Straub Advisors is pleased to invite our clients to a presentation given by Sean Doolan, Principal, co-chair of Hinman Straub's Government Relations Department, covering issues related to the NYS Lobbying requirements. Monday, December 8, 2008 - 10 A.M. to 12 P.M. Wednesday, December 17, 2008 - 9 A.M. to 11 A.M View the Lobbying Compliance Seminar invitation here. Legislation ReviewClick here for a list of bills that Governor Paterson has Chaptered. Click here for a list of bills that Governor Paterson has Vetoed. Upcoming Legislative Public HearingsClick here for the New York State Legislature Public Hearing Calendar. |
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6/26/08 Edition of Plugged In |