“Last evening, our Conference released its revenue forecast, sharing our fiscal projections and assumptions. Our projection of All Fund tax revenue for New York State is $330.4 million less than the Governor forecasted for the 2012-13 and 2013-14 fiscal years. Compared to the Governor, our forecast includes lower projected revenues in Personal Income Taxes, as well as Sales and User Taxes, Business Taxes, Other Taxes and the MTA Payroll Tax. On an All Fund basis, our projection anticipates $29 million less this year and $127.5 million less next year in State Business Tax revenue.

This budget forecast should serve as a wakeup call. Albany must make the 2011 Middle Class Personal Income Tax cuts permanent and stop the financially destructive practice of deferring business-related tax credits. Changing the way we tax families and small businesses, promoting a sensible statewide economic development plan and cutting job-killing rules, regulations and red tape that act as barriers to job creation are all necessary to ensure an economic recovery that strengthens all parts of our economy and benefits all New Yorkers.”

It is the beginning of a new year and a new Legislative Session in Albany. On Wednesday, January 9th, the Governor will lay out his agenda in his State of the State address. This speech kicks off the start of the 2013 legislative session, where my Legislative colleagues and I will come together to tackle the task of making our state a better place to work, live and raise a family by restoring fiscal accountability, fixing our economy and reducing the size and scope of government for taxpayers.

I am returning to Albany this year with a continued sense of optimism. In my book, the past two Legislative Sessions were the most productive in New York’s history. We worked together in a bipartisan fashion to get things done and I am eager to get back to the people’s work. With that in mind, I would like to share with you my New Year’s resolutions for 2013.

MY FIRST RESOLUTION: WORK TOGETHER TO COMBAT THE FISCAL CHALLENGES FACING NEW YORK

Last summer I discussed a report issued by the State Budget Crisis Task Force, a non-partisan group of respected public policy experts, which provided a much needed wake-up call in Albany about the potentially disastrous effects of the growing cost of operating our state and local governments. Top culprits include mandated spending programs and underfunded pension obligations. You can read the Task Force’s report at http://www.statebudgetcrisis.org.

As I told the audience in a recent forum at the Rockefeller Institute in Albany, “Medicaid is out of control, and we are all paying for it.” According to the State Budget Crisis Task Force report, the top six issues we need to tackle include Medicaid spending growth, underfunded retirement plans, eroding tax bases, State budget laws and practices that hinder fiscal stability, the effects of federal deficit reduction and local government fiscal stress.

Quite frankly, the folks on the State Budget Crisis Task Force got it right when they said these challenges threaten state government’s investment in priorities such as educating our children and making sure our roads and bridges are safe. Not fixing these problems now will cost taxpayers more to borrow money in the future and could even affect the state’s ability to provide the essential services our communities rely upon.

MY SMART SOLUTIONS TO CHART A COURSE BACK TO PROSPERITY IN 2013

In the coming weeks I will be reintroducing legislation that would fix these current issues, including measures that would reduce Medicaid mandate expenses, place a cap on state spending, place a permanent moratorium on Albany’s unfunded mandates and shrink the size and cost of state government.

MY SECOND RESOLUTION: REINVIGORATE THE ECONOMY AND CREATE NEW PRIVATE SECTOR JOBS

I will make economic growth and private sector job creation a priority in 2013 – keeping the focus in Albany on one thing: Jobs, Jobs, Jobs. There are not enough good-paying private sector jobs to keep our children and grandchildren here in New York.

Prior to entering public service in the State Assembly, I served as president of Refractron Technologies and was a co-founder of the North American Filter Corporation. As the only Legislative leader in state government that has started and run successful companies, I know that we must remove the regulatory barriers that cripple private sector job creation; support high-tech education programs at our community colleges; transform State Agencies so they work with, instead of against, job creators and support the pro-job environment New Yorkers have been demanding.

MY SMART SOLUTIONS TO ENCOURAGE PRIVATE SECTOR JOB CREATION IN THE EMPIRE STATE

Our State Agencies must become more responsive to both taxpayers and small business owners. At the top of my list is a much-needed reform of the struggling New York State Thruway Authority. Transportation costs affect the price of most everything we buy, and financial mismanagement of the New York State Thruway results in the higher tolls that mean layoffs at small businesses from Buffalo to New York City and an increase in the cost of the basic products we use on a daily basis. My Thruway Authority Accountability Act would restore accountability, increase efficiency and save taxpayer dollars by making structural reforms and statutory changes to the Thruway Authority.

Job creators from across the state agree – high-tech industry is the future of what I call New York’s “innovation economy.” These 21st century businesses create good-paying jobs and give our young people the careers they need to stay close to their hometowns and raise the next generation of New Yorkers right here in the Empire State. I will be advocating for the expansion of New York’s “innovation economy” as part of my pro-growth, pro-jobs legislative agenda, which will improve our economy, increase private sector employment and provide support for businesses. Stay tuned for more details on this in my future columns!

What do you think? I want to hear from YOU! Send me your feedback, suggestions and ideas regarding this or any other issue facing New York State. You can always contact my district office at (315) 781-2030, e-mail me at kolbb@assembly.state.ny.us, find me on Facebook or follow me on Twitter.

First and foremost, it has been an honor to represent the people of the 129th Assembly District by serving as their legislator in the New York State Assembly. I look forward to standing up for the folks in the new 131st Assembly District that includes all of Ontario and part of Seneca counties in 2013. As one of only four legislative leaders in the state, I have the privilege of serving families and small businesses across the state and bringing the values of opportunity, prosperity, community and respect to my work in Albany. My door is always open to you!

The past two Legislative Sessions have been among the most successful and productive in New York’s history. As we prepare to start a new year, it is a good opportunity to reflect back upon the Session months of January through June.

January: Launch of “Citizen’s Committee for an Effective Constitution”

January began with Governor Andrew Cuomo’s second State of the State address, where he sought to build on the accomplishments of 2011, which included many of the priorities that my Assembly Minority colleagues and I have long championed. These issues include rebuilding New York’s economy, delivering tax relief and reinforcing a new culture in Albany of transparency, openness and accountability.

To achieve these goals, I led the charge for Constitutional reform, by helping launch a groundbreaking, bi-partisan reform coalition, “Citizens’ Committee for an Effective Constitution,” (http://EffectiveNY.org). The other co-founders are Bill Samuels, Chairman of New Roosevelt and the New Roosevelt Foundation and Dr. Gerald Benjamin, Associate Vice President for Regional Engagement and Director of the Center for Research, Regional Education and Outreach (CRREO) at SUNY New Paltz.

The “Citizens’ Committee for an Effective Constitution,” also known as EffectiveNY, seeks to deliver true reform by bringing together recognized leaders and experts from the worlds of nonprofit/good government advocacy, private sector leadership and public service, academia and scholarly research to advance serious public discussion of issues pertaining to New York’s State Constitution, state government, the economy and public policy.

February: “New York needs to make time for mandate relief”

While the State Legislature began the State Budget negotiations, I called for mandate relief to be a major part of the discussions. Unfunded mandates are created when Albany tells local governments to do something, like start a program, provide a service, or build a school, but does not provide any funding. Localities and school districts are often forced to raise property taxes to make up the shortfall. Comprehensive program reforms and cost-containment measures were needed, specifically reforming the State Medicaid system, which was by far the largest burden facing our local governments.

March: Redistricting reform, pension reform, expansion of the DNA databank, important steps toward Medicaid relief and an early budget

March was a productive month in terms of legislative accomplishments. In the middle of the month, we enacted redistricting reform, pension reform and expansion of the DNA Databank. These were all issues strongly championed by the Assembly Minority Conference.

History was made – the budget was adopted early for the first time since 1983! It also included many priorities I was fighting for, including important steps toward Medicaid relief by enacting an eventual state takeover of the Medicaid program, long-term investments in education and no new taxes and fees.

April: ‘EffectiveNY’ and ‘GrowNY’ key to a more prosperous New York

With the budget passed, it was time to turn the attention to reforming the State Constitution (‘EffectiveNY’) and building a better economy (‘GrowNY’). We held three EffectiveNY Town Hall Meetings in Upstate New York to keep the conversation going about creating a more effective state government and State Constitution.

In late March, I introduced the GrowNY legislation and spent the month of April getting the word out about this revolutionary program that could help New York’s “second-stage” businesses create quality jobs without asking overburdened taxpayers to foot the bill. GrowNY was only the first piece of my comprehensive pro-jobs agenda that I will carry into the 2013 Legislative Session.

May: Building New York’s “Innovation Economy” begins with focusing on education and career skills development and fighting against the Thruway toll hike

Fostering innovation, teaching children the basics, instructing them in applying their education, promoting lifetime learning and skills development – these educational cornerstones are the foundations for building New York’s innovation economy. Removing job-killing regulatory and bureaucratic barriers, leveraging private investment to support emerging start-ups to ensure they have access to capital and credit, helping second-stage small businesses with guidance and expert assistance, these are common sense ways we can strengthen New York’s entrepreneurial sector.

When the New York State Thruway Authority proposed a budget-breaking 45 percent toll hike on commercial trucks with three or more axles, I was the first Legislative Leader in Albany to raise the warning flag, calling it, “a road to fewer jobs and a less competitive economy.”

June: Another successful session!

The last month of session this year was notable both for what did and what did not happen in Albany. We worked together to pass legislation which prohibits bullying and cyber-bullying in public schools and enacted the “Protection of People with Special Needs Act” to create uniform safeguards in residential facilities and day programs. What did NOT happen was the usual end-of-session dysfunction – abnormally late nights and an environment that forces legislators to vote on hastily written bills distributed at the Eleventh hour. That was the unfortunate status quo around Albany for far too many years.

By working together, we were able to build upon the many achievements from last year and once again produce real results for a better, more affordable New York. This year’s successful Session marks the second consecutive year we have delivered the positive change New Yorkers have been demanding.

July Through December – A busy time back home in my district

This summer and fall, I spent a lot of my time meeting face-to-face with the families and small business owners I represent and celebrating what makes life in the Finger Lakes so rewarding. Highlights included helping the folks at the Walmart in Geneva present a $20,000 contribution to the Sampson Veterans Cemetery in Seneca County, supporting the Vienna Gardens Senior Living Center’s Summer Olympic Games in Phelps, throwing out the first pitch at the Geneva Twins baseball game at “NYS Assemblyman Brian Kolb Nite” (we won!), participating in the Sauerkraut Parade and Festival in Phelps and touring CY Plastics Works, Inc. in Honeoye.

There was one pressing issue that kept me hard at work in my district office through the summer months – the proposed Thruway toll hike. I am proud to report that just last week, after months of protest from farmers, small business-people, taxpayers, business groups and folks just like you from around the state, the Thruway Authority hit the brakes and decided to not to raise tolls after all.

I look forward to building upon these successes again in 2013. As the new year approaches I look forward to another productive and successful year, both in Albany and back here in my district. I hope you all have a very prosperous new year!

What do you think? I want to hear from YOU! Send me your feedback, suggestions and ideas regarding this or any other issue facing New York State. You can always contact my district office at (315) 781-2030, e-mail me at kolbb@assembly.state.ny.us, find me on Facebook or follow me on Twitter.

Earlier this week, I was honored to be publicly recognized by two of the leading voices in the fight to grow New York’s economy, protect taxpayers, reform Albany and restore fiscal accountability to State government: the Business Council of New York State Inc., and Unshackle Upstate. Both the Business Council and Unshackle Upstate are non-partisan, independent and highly respected public policy organizations that advance agendas which mirror my own focus on making New York a more affordable place to live, work, raise a family, start a business and pursue your dreams.

BUSINESS COUNCIL AND UNSHACKLE UPSTATE RATE ME AT THE HIGHEST OF ALL LEGISLATIVE LEADERS FOR SUPPORTING PRO-GROWTH, PRO-JOBS, PRO-TAXPAYER POLICIES

First, the Business Council announced that I earned a 92 rating – the highest of any Legislative Leader serving in State government – for my continued, vocal support of a pro-business, pro-growth, pro-jobs agenda. Then, Unshackle Upstate reported that I had scored a 93 – again, the highest of any Legislative Leader – on its 2012 Scorecard due to my strong support for growing the economy and protecting taxpayers. These ratings and scores reflect my two decades of private sector business experience and emphasis on offering smart solutions and providing real leadership – not engaging in partisan politics or silly name calling – to deliver positive progress for our Empire State.

ACCOLADES ARE GREAT, BUT THERE IS STILL MORE WORK TO DO!

While the recognitions and accolades are appreciated, they are not the reason why I fight so hard to transform New York’s economy. I lead this fight because of a deep-rooted belief in the promise and potential of New York’s entrepreneurs and job creators. Unfortunately, despite all the success and real progress of the past two years, there are still many obstacles getting in the way of New York’s road to economic recovery, with Albany’s so-called ‘Wage Theft Prevention Act” being one of the largest – and costliest – roadblocks.

NEXT UP: REPEAL AND REPLACE ALBANY’S “WAGE THEFT PREVENTION ACT” TO REDUCE COSTS FOR JOB CREATORS, GROW JOBS FOR NEW YORKERS

Passed in 2010 and implemented in March of 2011, the Wage Theft Prevention Act is one of the costliest, most job-killing, headache-inducing, time-consuming paperwork mandates ever imposed by Albany on private sector job creators – and that is saying something!

The Wage Theft Prevention Act is the poster child for how Albany continues to saddle businesses with expensive mandates that hurt job creation and weaken our economic competitiveness with the 49 other states and the rest of the world. At the heart of the Wage Theft Prevention Act is something called the “Annual Notice Requirement.” Here is what this provision does and why it hurts private sector businesses:

Mandates that all private sector employers provide a separate written pay notice to every employee working in New York and that a written acknowledgment of the receipt of the notice be obtained yearly from every employee by their employer;

This notice must be provided not only in English, but also in the primary language of the employee; and

Employers are then responsible for maintaining these records… for six years!

However, nearly all the aforementioned information is already found on every employee’s paycheck stub and the additional notice given to incoming employees. This is the very definition of an unnecessary, impractical and nearly impossible paperwork overload that Albany expects businesses to comply with!

WAGE THEFT PREVENTION ACT COSTS NEW YORK JOB CREATORS MILLIONS

The Wage Theft Prevention Act imposes massive administrative costs on every private sector employer operating in the Empire State. These additional costs can span from hundreds of dollars for small businesses, thousands of dollars for medium-size businesses, to tens of thousands of dollars for large businesses, with the total combined costs of complying with the Wage Theft Prevention Act reaching well into the millions, as noted by the Business Council.

These added costs are on top of all the other considerable expenses New York job creators endure in the form of property taxes, income taxes, business taxes, labor, energy and workers’ comp costs, fees, fines, surcharges – the list goes on and on.

MORE WORK REMAINS: REPEAL AND REPLACE THE WAGE THEFT PREVENTION ACT!

This session, one of the smart solutions I offered to the 2012-13 State Budget would have effectively repealed the Wage Theft Prevention Act’s Annual Notice Requirement, thus removing one of this job-killing mandate’s costliest provisions. Even though my smart solution was rejected, I will continue working to repeal and replace the Wage Theft Prevention Act so private sector job creators can spend more time running and growing their businesses and less time worrying about and complying with Albany’s endless paperwork headaches and hassles.

NEXT WEEK: What’s next for property tax relief!

As always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

For the past few weeks, I have shared many of the successes from our two most recent Legislative Sessions (2011 and 2012, respectively) and outlined how these achievements are charting a positive new direction for New York. Now it’s time you had your say!

This week’s column features my 2012 Legislative Survey. Answer these 10 questions and send me your responses in one of three ways: by e-mail at kolbb@assembly.state.ny.us, via fax at (315) 781-1746 or mail them to me at 607 West Washington Street, Suite 2, Geneva, NY 14456. You can also take this legislative survey by visiting my Facebook page. Your views and opinions help shape my legislative agenda and I always want to receive your feedback. Thank you!

2012 LEGISLATIVE SURVEY – SHARE YOUR VIEWS AND HAVE YOUR SAY!

RIGHT DIRECTION/WRONG TRACK FOR NEW YORK STATE

1. Do you feel things in New York State are headed in the right direction or are they on the wrong track?

____ Right Direction ____Wrong Track

RATE NEW YORK’S ECONOMY

2. How would you rate New York State’s economy?

____ Good

____ Stronger and improving

____ Average

____ Weak and worsening

____ Poor

RANK MY LEGISLATIVE ACHIEVEMENTS

3. The 2011 and 2012 Legislative Sessions saw many accomplishments and have been described as two of the most productive legislative years in New York’s history. Which of my 2011 and 2012 legislative achievements would you rate as the most important? (check all that apply)

____ Enacting a two percent property tax cap

____ Delivering Medicaid mandate relief

____ Closing $13.5 billion in State Budget deficits

____ Passing two on-time State Budgets

____ Reducing government spending

____ Instituting ethics reform

____ Expanding the State’s DNA Databank

____ Consolidating and merging State Agencies

____ Increasing State aid to local schools

____ Enacting pension reform

BIGGEST OBSTACLE(S) TO NEW YORK’S ECONOMY

4. In your view, what are the biggest obstacles to making New York’s economy more competitive, along with creating and retaining good-paying jobs? (check all that apply)

____ Taxes, fees and surcharges

____ Price of energy

____ Labor costs

____ State regulations

____ Albany bureaucracy

____ Perception that New York is not business-friendly

BEST WAYS TO GROW OUR ECONOMY

5. In your view, what are the best ways to grow New York’s economy, support private sector job creation and promote economic development? (check all that apply)

____ Support small businesses already operating in New York

____ Offer targeted tax incentives to keep companies here

____ Enact pro-growth economic policies and reduce government’s cost

____ Leverage State funding to match private sector investment

____ Provide tax credits to businesses that hire unemployed workers

____ Cut bureaucratic red tape

____ Build an “innovation economy” by investing in education, emphasizing vocational (career)

skills training and encouraging entrepreneurship

____ Transform State Agencies from roadblocks to job creation into partners that help private

sector job creators and attract new investment

VIEWS ON CASINO GAMING

6. Earlier this year, the State Legislature passed legislation that would enact a State Constitutional Amendment to expand casino gaming in New York State. Do you support an expansion of casino gaming?

____ Yes ____ No ____ Undecided

UTILIZATION OF CASINO GAMING REVENUES

7. If casino gaming were expanded in New York State, how should the billions in new revenue expected to be generated be used? (check all that apply)

____ Increase education funding

____ Deliver property tax relief

____ Support road and bridge repair

____ Enact tax relief for businesses

____ Pay off State debt

____ Provide unfunded mandate relief for local governments

____ Expand public sector services and programs

____ Put toward the State’s Rainy Day Fund for emergencies

____ Provide public financing of legislative campaigns with tax dollars

RATE THE PROPERTY TAX CAP’S EFFECTIVENESS

8. In 2011, with my support, New York finally enacted a property tax cap that capped the growth of local property taxes at two percent or the rate of inflation – whichever is lower – to protect homeowners. One year later, how would you rate the effectiveness of New York’s property tax cap law in terms of controlling the growth of your local property tax levies?

____ Effective, the property tax cap is working

____ Ineffective, the property tax cap has not done enough to control property tax hikes

____ Undecided, more time is needed to determine the tax cap’s effectiveness

REMAINING PRIORITIES FOR ALBANY

9. Going forward, what should be Albany’s top legislative priorities? (check all that apply)

____ Deliver real tax relief for families

____ Grow the private sector to create more jobs

____ Provide relief from Albany’s unfunded mandates on local governments, school

districts and taxpayers

____ Strengthen New York’s economy so it is more competitive

____ Invest in education by providing more State aid to local schools

____ Reduce health care costs for small businesses and families

____ Continue reducing the size and cost of government

____ Enact a State Constitutional Amendment to establish an independent Legislative

Redistricting Commission to take politics out of the redistricting process

____ Help local governments reduce their pension costs

____ Expand casino gaming

WHAT CAN STATE GOVERNMENT DO TO HELP IMPROVE NEW YORK’S QUALITY OF LIFE?

10. In one sentence (if possible), describe the ONE THING that, in your opinion, State government could do to improve the quality of life for all New Yorkers?

_________________________________________________________________________

ADDITIONAL QUESTIONS

Which social media services, if any, do you use? (Twitter, Facebook, YouTube, LinkedIn)

_________________________________________________________________________

To help save taxpayer dollars, please provide an e-mail address if you would like to receive my Albany Legislative Updates via e-mail:

________________________________________________________________________

If you would like to provide additional comments for me on any issue pertaining to New York State government, please print them in the space below:

_________________________________________________________________________

_________________________________________________________________________

COMING NEXT WEEK: Stand up for small businesses!

As always, constituents wishing to discuss this topic or any other state-related matter should contact my district office at (315) 781-2030 or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

“With just six days left in this year’s Legislative Session, instead of debating and voting on bills that will grow New York’s economy and make our state more competitive, pro-gun control downstate Members are pushing a microstamping mandate that will drive up the cost of lawful gun ownership and drive firearm manufacturers and more private sector jobs out of New York.

Is the Assembly discussing the proposed 45 percent Thruway toll hike that will hurt the trucking industry and drive up prices for consumers? No. Is the Assembly debating unfunded mandate relief and assuming the entire local share of Medicaid costs to protect local governments and taxpayers? No. Is the Assembly voting on a package of bills I introduced to jump-start job creation and build an innovation economy? No. Yet, the Assembly has no problem wasting time on a job-killing, Second Amendment infringing microstamping mandate.

We should be discussing, debating and voting on bills that will get New York’s economic engine – the private sector – out of second gear and ensure the Empire State is actually open for business.”

•BizBoom (Assembly Bill A.10364): Establish the “BizBoom” business startup program that will cut all application fees for new businesses by 50 percent for the first year, eliminate business income taxes for the first year and reduce income tax rates for the second and third years;

•GrowNY (Assembly Bill A.9603): Create an “economic gardening” pilot program to stimulate investment in New York’s economy by providing technical assistance for expanding second-stage small businesses operating in the state;

•Division of Regulatory Review & Economic Growth (Assembly Bill A.10419): Create the “Division of Regulatory Review & Economic Growth” (D-RREG), led by a commissioner who has a fixed term, to review and make binding recommendations for the elimination of burdensome, job-killing regulations;

•Mandate Relief (Assembly Bill A.8447): Enact the “Taxpayer Protection and Mandate Relief Act,” which includes a State Spending Cap, a moratorium on unfunded mandates on local governments and school districts costing more than $10,000 annually or $1 million statewide, and places a two-year sunset date on every law that imposes an annual net additional cost to any locality in excess of $10,000 annually or $1 million statewide;

•Innovators Corps (Assembly Bill A.10445): Develop the “Innovators Corps,” which is a four-member division of business experts to identify, recruit and/or retain domestic and international high technology businesses;

•New York State Business Incubator Network (Assembly Bill A.10399): Establish the New York State Business Incubator Network to support the development of academic-linked business incubators and to accelerate the growth and success of early-stage companies so important to building New York’s innovation economy;

•High-Tech Worker-NY (Assembly Bill A.10359): Provide a Personal Income Tax exemption of up to $50,000 per year for the first five years for new high-tech employees who completed a high-tech training program within the past 12 months (any college, vocational or certification program);

•Invest-NY (Assembly Bill A.10353): Create an Angel Investment Tax Credit to encourage private investment in business. This measure also amends the definition of a Qualified Emerging Technology Company(QETC) to allow more companies to be eligible for the QETC tax credit and expands eligibility for the NYS Investment Tax Credits to ALL businesses that make new investments in property and equipment in New York;

•Patent-NY (Assembly Bill A.10360): Implement a Personal Income Tax credit for patent fees to ensure New York remains home to the innovative breakthroughs our economy needs;

•Retain-NY (Assembly Bill A.10354): Provide a Personal Income Tax deduction for all interest paid on student loans for taxpayers and increase the current college tuition tax credit deduction from $10,000 to $13,820 and maximum tax credit from $400 to $553;

•Work-NY (Assembly Bill A.10350): Reduce the tax rate for all manufacturers by 50 percent; provide a 10 percent Personal Income Tax credit for small businesses with incomes less than $250,000. The bill also creates a “Hire-NY” tax credit for businesses for each new job filled by an unemployed person or a veteran. Finally, this legislation repeals the Ton Mileage Tax on trucking to alleviate the adverse effect it has on businesses locating fleets or distribution centers in New York State; and

•Shop-NY (Assembly Bill A.10355): Eliminate the State Sales Tax on purchases of gasoline (8 cents per gallon), child car seats, protective helmets, as well as personal hygiene products including baby diapers, soap and toothpaste.

Last Tuesday afternoon, our Conference released its “revenue forecast” for New York State. A revenue forecast is a lot like a weather forecast: it provides a snapshot of conditions today, analyzes developing patterns and makes a projection as to what could happen in the near future. Just like a weather forecast, financial forecasts are not guarantees; they are educated predictions as to what might occur if current trends continue.

REVENUE FORECAST HELPS ASSESS HEALTH OF NEW YORK’S ECONOMY

However, instead of measuring temperature and precipitation as a weather forecast does, a revenue forecast examines dollars and cents, tax collections and the overall condition of an economy, in this case, New York’s financial system. The data is collected, the numbers are crunched and the outcome provides a roadmap that helps Leaders like Governor Cuomo and me make informed decisions about taxes, spending and the economy.

Our Conference’s revenue forecast analyzed the condition of New York’s economy and closely examined present – and projected – collections of tax revenue by State government from taxpayers, job creators and other sources. The projection of All Fund tax revenue (“All Fund” revenue is exactly what it sounds like: ALL the revenue that state government brings in from taxes and the lottery) for New York is $134 million less than the Governor forecasted for the 2011-12 and 2012-13 fiscal years. We projected Total All Fund revenue at $64.5 billion for 2011-12 and $66.7 billion for 2012-13.

FORECAST: DROP-OFF IN BUSINESS TAX REVENUE

The forecast included higher projected revenues in Personal Income Taxes, as well as Sales and User Taxes, and lower projected revenue in the areas of Business Taxes, other taxes and the MTA Payroll Tax (this is a tax collected to fund the Metropolitan Transportation Authority, which oversees/operates transit downstate). On an All Fund basis, our projection anticipates $56.5 million less this year and $89.8 million less next year in State Business Tax revenue.

HOW WE GOT HERE – THE GREAT RECESSION

It is important to remember that a revenue forecast never occurs in a vacuum: it happens in the real world and must account for what is happening today. The revenue forecast was made on the heels of the worst economic downturn in our country since the Great Depression of the 1930s.

At the recession’s peak, there were close to 800,000 New Yorkers unemployed. When you account for the fact that many folks became so discouraged they simply stopped looking for work, New York’s true unemployment figure was likely closer to (or exceeded) one million. Think about that: roughly one in 19 New Yorkers was out of a job at some point over the past three years. That is a sobering statistic.

BETWEEN THE NUMBERS: WHAT THE BUSINESS TAX REVENUE DECLINE MEANS

Based on the available fiscal indicators, New York’s economic recovery appears fragile and incomplete. Private sector job creators have not bounced back as strongly as the Governor anticipates. I believe the decline in Business Tax Revenue illustrates the urgent need for Albany to enact pro-growth job creation policies that will strengthen New York’s economic recovery, especially for upstate.

MY PRO-GROWTH JOBS AGENDA

Albany needs to get off the dime and move forward with an aggressive, pro-growth private sector jobs agenda that strengthens our economic recovery. My pro-jobs agenda includes:

· Lowering the Corporate Franchise Tax for all businesses;

· Repealing the Corporate Franchise Tax and Personal Income Tax for manufacturers;

· Eliminating the State’s Temporary Basic Utility Assessment (18-A) imposed on utility companies that drives up costs for ratepayers;

· Reinvesting in New York’s manufacturing sector, especially in the areas of high-tech, nanotech and biotech;

· Rescinding the job-killing “Wage Theft Prevention Act’s” annual notice requirement that buries job creators in needless paperwork;

· Delivering unfunded mandate relief that includes freezing County Medicaid costs at the current level and banning all new unfunded mandates; and

· Promoting “Economic Gardening” to help expand “second stage businesses” that employ 5 to 99 persons.

Growing the private sector, promoting sensible statewide economic development and cutting job-killing rules, regulations and red tape that act as barriers to job creation are all necessary to ensure a full, balanced and sustained economic recovery that benefits all New Yorkers. With any luck, future forecasts will point to continued recovery, a healthier economy and more jobs.

As always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

“This afternoon, our Conference released its revenue forecast, sharing our fiscal projections and assumptions. Our projection of All Fund tax revenue for New York State is $134 million less than the Governor forecasted for the 2011-12 and 2012-13 fiscal years. Our forecast includes higher projected revenues in Personal Income Taxes, as well as Sales and User Taxes, and lower projected revenue in the areas of Business Taxes, other taxes and the MTA Payroll Tax. On an All Fund basis, our projection anticipates $56.5 million less this year and $89.8 million less next year in State Business Tax revenue.

According to our analysis, New York’s economic recovery is incomplete and private sector job creators have not bounced back as strongly as the Governor anticipates. We believe that the decline in Business Tax revenue is proof positive that Albany must enact policies that will strengthen New York’s economic recovery, especially upstate. Albany needs to move on a pro-growth private sector jobs agenda that should include the following:

· Lowering the Corporate Franchise Tax for all businesses;

· Repealing the Corporate Franchise Tax and Personal Income Tax for manufacturers;

· Elimination of the State’s Temporary Basic Utility Assessment (18-A) imposed on utility companies;

· Rescinding the job-killing “Wage Theft Prevention Act’s” annual notice requirement;

· Delivering unfunded mandate relief that includes freezing county Medicaid costs at the current level and banning all new unfunded mandates; and

· Promoting “Economic Gardening” to help expand “second stage businesses” that employ 10 to 99 people.

Growing the private sector, promoting sensible statewide economic development and cutting job-killing rules, regulations and red tape that hurt job creators are necessary to ensure a full and balanced economic recovery that benefits all New Yorkers.”

Faced with skyrocketing gas prices, property taxes, utility bills, food costs and college tuition expenses – on top of government’s endless taxes, fees, surcharges and assessments – families are feeling the financial squeeze like never before. Every week seems to bring news that some daily staple, be it a gallon of gas, a bag of groceries or the monthly electric bill, is getting more expensive, while the paychecks of working New Yorkers are shrinking or staying flat.

During the 1970’s, economists had a technical term for all this: “stagflation.” Today, it’s casually referred to as the “middle class squeeze.” Of course, what New York’s cost crunch is called is not nearly as important as how we can fix it. I believe we need sensible solutions that will put more money back in taxpayers’ pockets and give families a little extra breathing room.

This week, I bring welcome news regarding the return of a sensible solution that will make your clothing and footwear budget go further: New York’s State Sales Tax Exemption on certain items of clothing and footwear will be reinstated April 1. This is a great deal for families!

WELCOME BACK SAVINGS: STATE SALES TAX EXEMPTION RETURNS!

Beginning April 1, clothing and footwear costing under $110 per item will be exempt from the State Sales Tax of four percent. In addition, the return of the State Sales Tax Exemption means that local governments also can exempt their portion of taxes on clothing and footwear priced under $110. Typically, Local Sales Tax rates range anywhere from three to 4.75 percent.

SALES TAX EXEMPTION MEANS MORE MONEY IN YOUR POCKET

To better understand the money you will save when the State Sales Tax Exemption returns April 1, consider the savings on a pair of shoes costing $100. Prior to the April 1 reinstatement of the State Sales Tax Exemption, that pair of shoes cost $108 because of the four percent State Sales Tax and an average four percent Local Sales Tax added on to the final price. If you bought two pairs of shoes, you ended up paying an extra $16, all of it in State and Local Sales Taxes. None of the extra cost resulted in those shoes fitting any better or lasting any longer.

ALBANY ELIMINATED, THEN WATERED DOWN, SALES TAX EXEMPTION

It has not always been smooth sailing for the State’s Sales Tax Exemption. For a time, the exemption – which had been in effect since April 1, 2006 and was a huge success – became the latest in a long line of casualties caused by Albany’s culture of fiscal irresponsibility.

First, from October 1, 2010 to March 31, 2011, the State Sales Tax Exemption was eliminated. Then, from April 1, 2011 through March 31, 2012, the Sales Tax Exemption was reinstated, but only for clothing and footwear costing less than $55. These actions were nothing more than cheap Albany budgeting gimmicks. As usual, Albany was attempting to balance the State Budget and close its annual deficits on the backs of hard-working taxpayers.

I opposed these proposals because they were bad public policy and even worse economics since neighboring states like New Jersey and Pennsylvania do not impose sales taxes on clothing and footwear, thus giving New York consumers more incentive to shop for these goods out-of-state. By reducing the State Sales Tax Exemption so it only covered items costing less than $55, Albany put New York’s clothing and footwear retailers at a competitive disadvantage.

EVERY LITTLE BIT HELPS

At first glance, the savings of four percent in State Taxes on clothing and footwear may not seem like a lot. However, as working families know, every little bit helps. Over the course of a year, the savings definitely add up, meaning more money for gas, groceries or something nice for the kids. Every extra dollar in taxpayers’ pockets is one dollar less liberal Albany politicians and bureaucrats can waste. I support the State Sales Tax Exemption because it’s a sensible solution that eases the “squeeze” on working families. It also forces Albany to become more fiscally responsible in its spending habits and stop trying to grab every dollar possible from taxpayers.

Starting April 1, millions of New Yorkers will be seeing relief from high taxes on clothing and footwear costing under $110. This is one sensible solution that can be appreciated by all smart shoppers!

As always, constituents wishing to discuss this topic or any other state-related matter should contact my district office at (315) 781-2030 or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

My recent Town Hall meetings across Ontario County were another HUGE success! A very special thank you to everyone who took time out of their busy Saturday to attend and share smart ideas for sensible solutions. Constituent suggestions are important; they can quickly become the basis for legislation or casework that solves a problem with a State Agency, cuts through layers of needless bureaucracy and makes New York a more affordable place to live and work.

CONSTITUENT IDEAS, QUESTIONS, NOT LIMITED TO TOWN HALL MEETINGS

However, good ideas (and even better questions) from constituents are not simply limited to my Town Hall meetings. In fact, my Geneva district office routinely receives thousands of calls, e-mails, letters and faxes from constituents seeking answers to their questions about state government or some matter of public policy affecting all New Yorkers. For this week’s legislative column, I would like to answer one such question that affects us all: rising gas prices.

BOB YAEKEL OF CANANDAIGUA WANTS TO KNOW MORE ABOUT THE CONNECTION BETWEEN NY’S GAS PRICES AND GAS TAXES

A constituent of mine – Mr. Bob Yaekel, of Canandaigua – recently contacted my office suggesting a column focused on the connection between New York’s high gas prices and New York’s high gas taxes. With gasoline prices forecast to rise to $4 – and possibly $5 – per gallon this year, the question could not come at a better time. Bob, this column is for you!

NY’S TAXES AND FEES KEEP PRICE OF GASOLINE ARTIFICIALLY HIGH

As this weekly column is being written – the second week of February 2012 – the average price for a gallon of regular gasoline is $3.79 (Source: www.GasBuddy.com). As a point of comparison, the average price for a gallon of regular gasoline in neighboring New Jersey is $3.44, and in nearby Pennsylvania, the price is $3.58. So, what accounts for this price disparity – and why are New York motorists paying, on average, anywhere between $3 to almost $5 more each time they fill-up (for a 15-gallon tank) versus what folks in New Jersey and Pennsylvania pay?

The answer can be summed up in two words that New Yorkers know all too well: taxes and fees.

NEW YORK’S TAXES AND FEES MEAN THAT MOTORISTS PAY MUCH MORE AT THE PUMP!

State government imposes 33 cents per gallon in taxes on motor fuel, and 31 cents per gallon in taxes on diesel motor fuel. These figures of 33 cents and 31 cents are actually broken down into three separate taxes:

“State Petroleum Business Tax” – 17 cents per gallon on motor fuel and 15.25 cents per gallon on diesel motor fuel;
“State Excise Tax” – 8 cents per gallon on motor fuel and diesel motor fuel; and
“State Sales Tax” – This is already CAPPED at 8 cents per gallon and 8.75 cents per gallon in the MTA region (downstate, New York) on both motor fuel and diesel motor fuel.

Revenue generated from the State’s Petroleum Business Tax and Excise Tax is dedicated to the Mass Transportation Trust Fund, the Highway and Bridge Trust Fund, and the Mass Transportation Operating Assistance Fund, while revenue generated from the State Sales Tax is deposited into the State’s General Fund.

DON’T FORGET ABOUT STATE FEES, FEDERAL AND LOCAL TAXES!

In terms of State fees imposed on gasoline and diesel fuel – these fees are on top of all the taxes listed above – New York also imposes a flat 0.35 cents (0.35 of 1 cent)/gallon in fees on Motor and Diesel Motor Fuel. Similar to New York’s gas taxes, this figure is comprised of two fees:

“Petroleum Testing Fee” – 0.05 cents/gallon and is deposited into the “Motor Fuel Quality Account” to cover monitoring to ensure the fuel contains the proper chemical makeup; and
“Oil Spill Fund Fee,” which is 0.3 cents/gallon and is deposited into the “Oil Spill Fund” to help offset costs if an oil spill occurs.

In addition to all the aforementioned State taxes and fees, Federal taxes also come into play and further drive-up how much it costs to fill-up:

“Federal Excise Tax” – 18.4 cents per gallon on motor fuel and 24.4 cents per gallon on diesel motor fuel.

Last, but certainly not least, Local taxes also factor into New York’s high gas price equation. Localities impose their own portion (rate varies between municipalities) of sales tax on motor fuel and diesel motor fuel at their authorized local sales tax rate, typically ranging from three to 4.75 percent. They are authorized to also cap their sales tax at a cents-per-gallon similar to the State’s Sales Tax.

ADD IT AND WEEP: ALL THOSE TAXES AND FEES ADD 66 CENTS PER GALLON TO THE PRICE YOU PAY AT THE PUMP

For those keeping score at home, here is how all those taxes and fees add up:

State Gasoline Taxes, Total: 33 cents
$0.08 Excise Tax
$0.08 State Sales Tax
and $0.17 Petroleum Business Tax

State Gasoline Fees, Total: .35 of 1 cent
$.0005 Petroleum Testing Fee; and
$.0030 Oil Spill Fund Fee

Federal Gasoline Taxes, Total: 18.4 cents
$0.184 Federal Excise Tax

Local Gasoline Taxes, Total: 14 cents
$0.14 Local Sales Tax

Grand total of State, Federal, Local government taxes and fees on a gallon of regular gasoline: 66 cents, or 17 percent.

WANT LOWER GAS PRICES? CUT THE TAXES AND FEES ON GASOLINE!

While the global economy, turmoil in the Middle East, fluctuations in the supply and price of crude oil, reduced refinery capacity and lack of a serious domestic energy exploration program all contribute to rising gas prices, the reality is that State, Federal and Local taxes and fees add 66 cents to the price you pay for every gallon of gas.

For a mid-size car with a 15-gallon gas tank that added 66 cents translates into an extra $9.90 every fill-up. Multiply that $9.90 by four times (monthly) and the added cost now climbs to $39.60. Multiply the $9.90 figure by 52 weeks (annual), and you are looking at an increased additional expense of $514.80 yearly – and these conservative cost projections are based on just one car!

No matter what the politicians or bureaucrats try to tell you, the solution to high gas prices is not complicated: reduce taxes and fees. Cut the taxes and fees on gasoline and diesel fuel and you will immediately cut the price of these fuels to motorists. Bob, thank you for your question!

As always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

The Tax Foundation recently issued its 2012 State Business Tax Climate Index and it’s nothing but bad news for the over 700,000 unemployed New Yorkers. Once a world-class symbol of business success and reverently called the ‘Empire State,’ New York’s business tax climate now ranks 49th out of 50.

I was recently quoted in the New York Post as saying, “our tax rate is too freakin’ high,” and I’ll repeat it again to you – our tax rate is too freakin’ high! We need to jumpstart our economy and bring private sector jobs back to communities across the state.

THE FACTS IN BLACK AND WHITE

The State Business Tax Climate Index indicates which states’ tax systems are the most hospitable to business and economic growth, and enables business leaders, government policymakers and taxpayers to gauge how their states’ tax systems compare.

According to the Index, New York ranks at the bottom of the barrel for businesses, workers and homeowners. The ‘Empire State’ is ranked 49th when it comes to in Individual Income Taxes, 46th in Unemployment Insurance Taxes and 45th in Property Taxes.

Certainly, our tax law needs a tough going over. Bottom line: the shocking statistics found in the Tax Foundation’s report should serve as a rallying cry for lowering taxes.

PLAIN COMMON SENSE FROM THE TAX FOUNDATION

The Index is full of common sense, the type of wisdom I have heard spoken around the kitchen tables and at the diners in Finger Lakes communities for years, stating “Job creators locate their businesses in areas where they have the greatest competitive advantage. States’ stiffest and most direct competition often comes from other states. Most mass job relocations are from one U.S. state to another, rather than to an overseas location.”

After the folks at the Tax Foundation compiled all their research, they came to this all-too-obvious conclusion: States with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth.

MEMO FROM JOB CREATORS TO ALBANY BUREAUCRATS: TAXES MATTER!

Taxes DO matter to businesses. How many times have you opened the business section of your local newspaper and seen yet another story of a New York state company forced to cut jobs or move its operations out of state? However, there is good news. The Index states the positive results that come from cutting taxes – a state with lower tax costs will be more attractive to business investment and more likely to experience economic growth. Our economic development gurus should be shouting this from the mountaintops!

The Tax Foundation’s conclusions really hit the nail on the head. It’s time for a change in New York’s tax and spend culture. We need to take a closer look at how every dollar is spent, what it is spent on and see if there is a way to deliver better customer service at a lower cost. This is what the private sector already does and this is what New York’s public sector needs to start doing.

LET’S HIT THE GROUND RUNNING AND PUT NEW YORK STATE BACK ON TOP

I have led the fight in Albany to create an environment of lower taxes, fewer regulations and greater economic certainty, so job creators can invest with confidence. The path to private sector job creation involves lowering taxes and putting the brakes on the endless rules, regulations and requirements Albany imposes on the private sector so job creators spend less time worrying about paying for government and spend more time growing their businesses.

New York should once again be an attractive location for Fortune 500 companies, small businesses and entrepreneurs to invest in and expand their operations. Based on my 25 years of proven private sector experience, I know the ‘Empire State’ can return to its rightful place as a national leader for economic growth and a private sector economy that is the envy of the 49 other states.

MARK YOUR CALENDARS: MY ONTARIO COUNTY TOWN HALL MEETINGS ARE SLATED FOR SATURDAY, FEBRUARY 4

I look forward to hearing your opinions on the Tax Foundation’s report. Here are the times and locations for my Saturday, February 4th Ontario County Town Hall meetings:

•10:00 a.m. – 10:30 a.m. at the Gorham Town Hall, 4736 South Street, Gorham;
•10:45 a.m. – 11:15 a.m. at the Geneva Town Hall, 3750 County Road 6, Geneva;
•11:30 a.m. – 12:00 p.m. at the Manchester Town Hall, 1272 County Road 7, Clifton Springs; and
•12:30 p.m. – 1:00 p.m. at the CanandaiguaTown Hall, 5440 Routes 5 & 20 West, Canandaigua.

As always, constituents wishing to discuss this topic or any other state-related matter should contact my district office at (315) 781-2030 or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

For all the talk of how Albany has “changed” and things in our state are beginning to head in the right direction, the fact is that for millions of New Yorkers who work hard, struggle, sacrifice, and play by the rules, real change has not arrived fast enough. Families and job creators are still overtaxed, overregulated and overburdened by a state government that costs too much, spends too much, and puts up too many roadblocks to economic growth. Local governments and school districts are pushed to the brink of bankruptcy because of budget-busting Albany mandates like the Medicaid program.

Things may have gotten better, but better is not good enough. Not even close. New York (still) needs real change, right now.

TIME TO MAKE GOOD ON THE PROMISE OF A SMALLER, SMARTER, LESS COSTLY AND MORE EFFECTIVE STATE GOVERNMENT

The need for real change is not news to me. Readers of this column are well aware that nearly three years ago I launched a grassroots, non-partisan statewide effort to convene a “People’s Constitutional Convention.” I did so to empower New Yorkers to make fiscal and governmental changes our state government needed – like a State spending cap, term limits, independent redistricting, and initiative and referendum – but Albany’s broken status quo kept blocking.

MY GOAL: A MORE EFFECTIVE STATE GOVERNMENT, A MORE EFFECTIVE ECONOMY, A MORE EFFECTIVE CIVIC PROCESS

Building on my efforts to convene a “People’s Convention” I am proud to announce the launch of a groundbreaking, bi-partisan reform coalition, the “Citizens’ Committee for an Effective Constitution,” (also known as “EffectiveNY”) located on-line at http://effectiveny.org. EffectiveNY seeks to deliver a more effective State Constitution, a more effective state government, a more effective civic process and a more effective economy. This non-profit, non-partisan project has one goal: restoring New York’s reputation as a national economic and public policy leader by discussing and debating State Constitutional provisions that have contributed to statewide dysfunction, an underperforming economy and the loss of trust by New Yorkers in their State government and everyone serving in it.

EffectiveNY brings together recognized leaders and experts from the worlds of nonprofit/good government advocacy, private sector leadership and public service, academia and scholarly research to advance serious public discussion of issues pertaining to our State Constitution, government, economy and public policy.

EffectiveNY will generate informed discussion, lively debate and actual follow through that goes beyond traditional political and ideological labels to advance changes to the State Constitution that produce a more responsive and effective state government. EffectiveNY will focus on State Constitutional change and create a meaningful dialogue centered on reforming the Constitution, be it a Constitutional Convention, or an Amendment-by-Amendment approach. The debate will be passionate and spirited – but if you are looking for a political food fight, look elsewhere.

A “COALITION OF OPPOSITES”

I am proud to partner in this unprecedented bi-partisan reform effort with my good friend – and fellow Canandaigua native –Bill Samuels, who serves as Chairman of the government reform groups “New Roosevelt” and the “New Roosevelt Foundation.” Bill is one of New York’s strongest and most passionate voices for good government. In addition, Dr. Gerald Benjamin, the preeminent expert, author, professor and respected scholar on New York State government and our State Constitution, is helping lead EffectiveNY. Dr. Benjamin also serves as Director of the Center for Research, Regional Education and Outreach (CRREO) at SUNY New Paltz.

Bill Samuels, Dr.cialis online Benjamin and I launched EffectiveNY in the hopes of dusting off the State Constitution, advancing the cause of real Constitutional change and demonstrating how such changes could make a real difference for real New Yorkers. Our end goal is a more effective State Constitution that leads to more jobs, a stronger economy and true government reform so New York can reclaim its rightful role as a national leader.

EFFECTIVENY’S ON-LINE PLATFORM: HTTP://EFFECTIVENY.ORG

EffectiveNY is already live with an interactive on-line platform – http://effectiveny.org – that serves as a free, 24-hour accessible informational clearinghouse for journalists, elected officials, scholars, teachers, citizen activists and, most importantly, any New Yorker who wants to learn more about State government to make real and lasting change in the public arena. Go to http://effectiveny.org and send me your feedback! Our on-line platform will also be accepting reader comments in the very near future, so be sure to visit and share your thoughts.

VISIT HTTP://EFFECTIVENY.ORG, GET THE FACTS ON UNFUNDED MANDATE RELIEF, SPENDING CAP, RECALL, REDISTRICTING, AND MORE

One of the many user-friendly features of EffectiveNY’s website is its listing of timely issues that directly pertain to the lives of New Yorkers. The site lists public policy issues, along with their direct applicability and specific reference in the State Constitution. A total of 39 issues are in development including: redistricting; campaign finance reform; Constitutional change; Constitutional Amendments; Constitutional Convention; casino gambling; State spending cap; unfunded mandates and property tax reform, with more issues on the way. Each public policy issue section at EffectiveNY’s on-line platform also includes:

· “Fast Facts,” which enables the reader to get up to speed quickly on a particular policy issue and its State Constitutional history;

· “Point/Counterpoint,” which allows debate between people on either side of an issue on how to best address its constitutional ramifications as well as links to news articles, editorial and opinion pieces that have appeared in local media outlets and blogs across the state;

· “News and Opinion Pieces,” covering each issue taken from newspapers and blogs throughout the state;

· “Other States,” section which allows readers to compare and contrast how other State Constitutions address similar policy issues; and

· “Relevant Legislative Amendments,” with their direct links, that have been proposed in the State Legislature to address a particular policy issue;

$1,000 SCHOLARSHIP ESSAY CONTEST

As part of our educational commitment, EffectiveNY is also sponsoring a $1,000 scholarship essay competition. The contest, managed by SUNY, is open to law students and focuses on State Constitutional issues. While any Constitutional issue qualifies, a focus on campaign finance, redistricting, or any of the topics on our site’s homepage are of special interest to EffectiveNY. Essays selected as the strongest will be presented at a statewide conference on State Constitutional change where authors of the best will be awarded cash scholarship prizes of $1,000. To be eligible, essays must be between 5,000-7,500 words in length. The best essays will appear on EffectiveNY’s website and be seen by thousands.

EFFECTIVENY: MAKE STATE GOVERNMENT WORK FOR ALL NEW YORKERS

As detailed as this weekly column is, it barely scratches the surface of all the excellent content, ideas, details, facts and history of just about every issue imaginable pertaining to our State Constitution and State government. Don’t take my word for it: go to http://effectiveny.org, see for yourself and share this site with friends. Together, we can realize the goal of a more effective New York State and a government that works for all New Yorkers.

As always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

On Tuesday, January 17, I had a front row seat for the official unveiling of Governor Cuomo’s 2012-13 Executive Budget. I was very pleased that the Governor’s spending plan reflected many of the specific public policies that I have long been fighting for. Frankly, the Governor’s emphasis on private sector job creation, economic development and transforming state government from a bureaucratic to an entrepreneurial model – by making it leaner, less costly and more responsive to taxpayers – was music to my ears! This “back to basics” approach should set the tone for State Budget negotiations going forward.

Now, more than ever, we must continue building on all our considerable successes from last year, when we worked together, showed a true commitment to fiscal responsibility, closed a $10 billion budget deficit and delivered an on-time State Budget that actually cut spending. Folks, this is not “political spin” – these were real accomplishments. While serious fiscal challenges still remain, the immediate danger has passed and New York State must start looking ahead, not behind. I was pleased to hear that the Governor shared my vision, especially in the critical areas of mandate relief, job creation, education and making government work.

ALBANY MANDATES HURT LOCAL GOVERNMENTS, DRIVE UP LOCAL PROPERTY TAXES FOR HOMEOWNERS

If you’re a regular reader of my weekly column, then you are well aware of the fact that I have long advocated mandate relief for local governments. Localities across New York must endure cast-iron state mandates – requirements that they start a program, or deliver a service, even though Albany refuses to pay for it – in their local budgets, which leaves little option except to cut critical services or raise property taxes in tough economic times. Having served in local government, and now as one of only four Legislative Leaders serving in state government, I know that localities have been handcuffed by state mandates. Albany mandates – such as Medicaid – imposed on local governments drive-up local property taxes for homeowners, which is why one of my top priorities is stopping Albany’s mandate madness.

A DOWN PAYMENT ON REAL MANDATE RELIEF

The Governor’s Executive Budget included an important proposal aimed at reining in the cost of Albany mandates on local governments: a state takeover of the growth of local Medicaid costs. I have advocated this very same approach – and even sponsored legislation to make it happen last session. State government taking over the growth of local Medicaid costs represents an important down payment on real mandate relief for localities – and real relief for local taxpayers.

CONTINUED FOCUS ON MAKING GOVERNMENT WORK FOR TAXPAYERS, SUPPORTING NEEDIEST SCHOOL DISTRICTS

The effort to continue reducing the size and cost of state government should begin with consolidating State Agencies to bring down government’s high cost to taxpayers and avoid the wasteful duplication of services. I have championed controlling state spending and applaud the Governor for including several proposed agency consolidations and spending reductions in his budget. In addition, the Governor’s plan linked increased education funding with measurable outcomes and greater accountability to ensure that every child in our state – regardless of their zip code – receives a world-class education. I was glad the Governor listened to my call for the neediest school districts that received the largest aid reductions to be first on the priority list.

ECONOMIC DEVELOPMENT, CREATING MORE JOBS FOR NEW YORKERS

What New York needs now is a forward-looking, 21st century spending plan that will grow private sector jobs and advance statewide economic development. By proposing greater cooperation between New York’s private and public sectors, the Governor’s plan can realize this goal. Besides greater cooperation, Albany must do its part by further reducing its costs to taxpayers and job creators. Frankly, for years the math has not added up – Albany has spent more than it has taken in; leading to multi-billion dollar budget deficits as far as the eye can see. I believe that we turned the corner with last year’s State Budget and must continue this year with another fiscally sound, on-time state spending plan by April 1. That is my goal.

NEW YORKERS DESERVE A FISCALLY RESPONSIBLE STATE BUDGET

While I will continue reviewing its specific details, based on initial appearances, the Governor’s spending plan appears to be a sound fiscal blueprint. By no means is this spending plan the final word on the 2012-13 State Budget – it is merely the beginning of a necessary conversation about how we can meet the goals of fiscal responsibility, more private sector jobs and a less costly state government without shortchanging necessary investments in New York’s future. However, the Governor deserves credit for making these principles a priority.

DON’T FORGET: MY ONTARIO COUNTY TOWN HALL MEETINGS SLATED FOR SATURDAY, FEBRUARY 4

If you would like further details on the Governor’s 2012-13 Executive Budget or my plans for more private sector jobs, economic development and mandate relief for local governments, attend one of my Ontario County Town Hall meetings on Saturday, February 4, where these topics and more will be discussed. Here are the times and locations for my Town Hall meetings:

•10:00 a.m. – 10:30 a.m., at the Gorham Town Hall, 4736 South Street, Gorham;
•10:45 a.m. – 11:15 a.m., at the Geneva Town Hall, 3750 County Road 6, Geneva;
•11:30 a.m. – 12:00 p.m., at the ManchesterTown Hall, 1272 County Road 7, Clifton Springs; and
•12:30 p.m. – 1:00 p.m., at the CanandaiguaTown Hall, 5440 Routes 5 & 20 West, Canandaigua.

As always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

Due to popular demand, I am once again hosting a series of Town Hall meetings so citizens can have the opportunity to let me know personally of their concerns. The feedback, views, opinions and insights received at these Town Hall meetings will shape the 2012 public policy agenda I will champion during the new Legislative Session.

TOWN HALL MEETINGS: A TIME-HONORED AMERICAN WAY OF MAKING YOUR OPINIONS KNOWN!

Town Hall meetings are as old as American democracy itself and have their direct roots right here in the Northeast. Town Halls are a model of self-governance where citizens can publicly raise important issues and take an active role in the affairs of, and learn more about, their government and the people serving in it. Town Hall meetings helped fan the earliest flames of liberty and independence so crucial in America’s founding – and their importance carries on over 200 years later.

SAVE THE DATE: SATURDAY, FEBRUARY 4, FOR MY ONTARIO COUNTY TOWN HALL MEETINGS

The following is the schedule for my 2012 Town Hall meetings in Ontario County. I look forward to holding additional meetings in other parts of the district later this year, so be sure and stay tuned for regular updates. I encourage you to attend one or all of my Town Hall meetings and help spread the word with family, friends, neighbors and co-workers. Your opinion matters!

ONTARIO COUNTY TOWN HALL MEETINGS:

10:00a.m. – 10:30 a.m., at the Gorham Town Hall, 4736 South Street, Gorham

10:45 a.m. – 11:15 a.m., at the Geneva Town Hall, 3750 County Road #6, Geneva

11:30 a.m. – 12:00 p.m., at the Manchester Town Hall, 1272 County Road 7, Clifton Springs

12:30 p.m. – 1:00 p.m., at the Canandaigua Town Hall, 5440 Routes 5 & 20 West, Canandaigua

SHARE YOUR VIEWS ON PRIVATE SECTOR JOB CREATION, RELIEF FROM ALBANY’S RULES, REGULATIONS AND REQUIREMENTS, 2012-13 STATE BUDGET AND REFORMING GOVERNMENT

This session, this year, I believe we need to continue working together to finish the people’s business that includes the following agenda:

•Rebuild New York’s economy, jumpstart economic development and focus on growing private sector jobs right here in the Finger Lakes and all across New York;

•Deliver relief from unfunded mandates – all the ridiculous rules, regulations and requirements Albany imposes – for local governments, school districts and taxpayers;

•Reform and redesign New York’s Medicaid program, which is the nation’s costliest, to cut costs for local government and reduce the property tax burden on homeowners;

•Institute a State spending cap, which will force Albany bureaucrats to balance the state’s checkbook, just like you and I do every month;

•Deliver tax relief and cut bureaucratic red tape for job creators, so they can create new jobs and invest in New York’s future;

•Ensure low-wealth and average-wealth school districts have the support they need to make sure ALL of our children receive a quality education;

•Invest in high-tech jobs and support research and development efforts so that our college graduates and young families can stay in New York;

•Hold the line: no new taxes, fees, surcharges or borrowing;

•Restructure and redesign government by consolidating State Agencies and delivering high-quality customer service to all taxpayers;

•Enact comprehensive pension reform; and

•Demand a new culture in Albany of transparency, openness and accountability.

I firmly believe that this shopping list of common-sense measures will move the ball forward and help bring private sector jobs back to New York. Our government works best when the people it serves make their voices heard loud and clear to the elected officials entrusted with the privilege of representing them. With your help and continued partnership, I will keep delivering a strong message that more jobs and less government must be our top priorities. I look forward to seeing you on Saturday, February 4th!

As always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

“Last year, I said Governor Cuomo’s first State of the State Address would give New York a much-needed opportunity to hit the ‘reset button’ and we did exactly that by delivering an on-time State Budget that reduced government spending, successfully closing a $10 billion budget deficit, passing a property tax cap and enacting a statewide energy plan. Our Conference had long advanced each of these policies and we were glad the Governor embraced them.

One year later, the state of our state is stronger and New York is beginning to head in the right direction. The Governor’s speech today is an opportunity for us to build on the accomplishments from 2011 and keep New York moving forward. However, the mission of transforming New York and fixing our state government is far from finished – in fact, we have only just begun. We need more jobs and less government for a better New York. This session, this year, we need to continue working together and finish the people’s business:

•Rebuild New York’s economy, jumpstart economic development and focus on growing private sector jobs;
•Deliver on the still unfulfilled promise of unfunded mandate relief for local governments and school districts;
•Reform and redesign New York’s Medicaid program that is the nation’s costliest;
•Institute a State spending cap;
•Deliver tax relief and cut bureaucratic red tape for job creators;
•Ensure low-wealth, high-need school districts have the support they need;
•Hold the line: no new taxes, fees, surcharges or borrowing;
•Restructure and redesign government by consolidating State Agencies and delivering high-quality customer service to all taxpayers;
•Enact comprehensive pension reform; and
•Demand a new culture in Albany of transparency, openness and accountability.

If we can fulfill these goals, not only will we see another historic Legislative Session, more importantly, we will have taken a major step toward delivering a smaller, smarter, less intrusive state government worthy of the New Yorkers we serve. Let’s get to work.”

On Wednesday, January 4, Governor Cuomo will outline his agenda for New York in his second annual State of the State Address. In 2011, after Governor Cuomo’s first State of the State Address, I said it was time to hit the “reset” button and begin a fresh start after enduring years of embarrassing ethical scandals and a pattern of fiscal and governmental mismanagement under recent administrations.

I believe we have begun a lengthy process of moving our state toward reclaiming its rightful place as a national leader in private sector job creation, excellence in government and reducing the taxpayers’ burden, but we have a long way to go before crossing the finish line. In this column, I will outline my continued call for much-needed reforms and legislative priorities that I am hoping the Governor will include in his 2012 State of the State Address.

JOB CREATION IS JOB NUMBER ONE

The over 700,000 unemployed New Yorkers are screaming for jobs, jobs, jobs – and I don’t blame them! Times are tough and folks deserve the opportunity to earn a living and support their families – a cornerstone of the American Dream. Governor Cuomo – and the legislature – must focus their attention on job creation so that families can continue to prosper across the state.

A true jobs agenda is based on getting government bureaucracy out of the way and helping to lower crushing costs of doing business such as energy and workers compensation so businesses will invest and create jobs. We need to lower business taxes, roll back senseless regulations and build upon New York’s regional economic assets. Having spent most of my adult life in the private sector, I know what so many Albany politicians fail to recognize: job creators are not looking for a government handout. What they want is for government to stop making it harder for them to run their business, turn a profit and grow jobs.

REAL RELIEF FOR TAXPAYERS INCLUDES UNFUNDED MANDATE RELIEF

The Assembly Minority Conference has long championed mandate relief for local municipalities and school districts. Unfunded mandates are the web of rules, regulations and red tape that Albany imposes on local governments and school districts that ultimately raises local property taxes. Municipalities across the state must include these cast-iron costs in their budgets, which leaves little wiggle room except to cut local services that are especially critical in these tough economic times.

In 2011, much attention was given to the passage of the property tax cap, but New York’s overburdened taxpayers – who ultimately foot the bill – will only see real relief when Albany reduces costs on localities in conjunction with the cap.

True mandate relief would begin with providing a moratorium on new unfunded mandates for as long as a property tax cap is in place; freezing County Medicaid costs; giving the Governor and state Legislature the power to repeal existing unfunded mandates; allowing localities to seek waivers from state government on specific unfunded mandates and enacting comprehensive pension reform.

RETHINK, RESTRUCTURE AND REFORM STATE GOVERNMENT

Simply put, government costs too much and spends too much – and New Yorkers get a poor return on all that spending. Between 2000-2010, spending grew over 70 percent, and that is simply not sustainable! We need to impose fiscal discipline on State Agencies and consolidate entities with overlapping functions; redesign New York’s Medicaid program and reduce the rate of growth in government. It is imperative we examine every government program, every policy, to determine if it is actually working for patients, students and taxpayers.

One way to streamline government is through a ‘People’s Convention to Reform New York.’ I believe holding a People’s Convention can put the tools in the hands of overburdened taxpayers and bring about critical changes that New York needs through a truly democratic process. Possible reforms that could be considered include initiative and referendum, term limits, a state spending cap, unfunded mandate relief, independent redistricting, along with debt reform. For more information on the People’s Convention or to sign the online petition, go to www.reformny.org.

DON’T SHORT-CHANGE LOW AND AVERAGE WEALTH SCHOOL DISTRICTS

Governor Cuomo has indicated that his Executive budget proposal will include a 4 percent increase in state education aid, which is about $755 million. However, he has not indicated how he plans to distribute this money. I advise him to consider a need-based aid distribution plan that will ensure low and average wealth school districts do not get short-changed.

Additionally, the Governor has stated he wants to “incentivize” school district performance and focus on the students. I couldn’t agree more, but across the state there is a threat of school closings, teacher layoffs and students do not have equal opportunities in the classroom. Wealthy school districts are offering more programs and educational opportunities than low and average wealth school districts. This has to change. We must first level the playing field and then talk about “incentivizing” performance fairly across the board.

2012: THE YEAR THAT NEW YORK STATE RECAPTURES ITS RIGHTFUL PLACE AS A NATIONAL LEADER

I look forward to working with the Governor to achieve these critical priorities during the coming Legislative Session. We still have a lot of work to do, but I believe we hit the “reset” button last year and will continue to reform and rebuild the great state of New York. Even through the hardship of a tough economy, our Conference will work with the Governor and the Legislature to deliver results worthy of a finish line celebration.

As always, constituents wishing to discuss this topic or any other state-related matter should contact my district office at (315) 781-2030 or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

Last week’s column, “2011: The Year In Review, Part I,” outlined some of the major successes from the recent Session from the months of January through June. These included the swearing-in of a new Governor, an on-time state budget and my ongoing efforts to save taxpayer dollars. Part II highlights July through December. Traditionally, these are months of the year when legislators spend time in their districts, but legislative issues still arise and need to be debated. It is never quiet in Albany!

JULY: JOBS, JOBS, JOBS!

Our focus needs to be on fixing the economy and creating jobs. After Session concluded, I said the immediate priority was constructing a true economic development plan to create jobs and put over 700,000 unemployed New Yorkers back to work. I sent a letter to Governor Cuomo urging him to rescind the New York State Department of Labor’s recent Unemployment Insurance (UI) Interest Assessment Surcharge imposed on all businesses and refund any businesses that have paid this assessment to date. I suggested using a portion of the nearly $800 million in surplus first quarter tax receipts from the current fiscal year to cover the $95 million interest payment of the federal loans, instead of nickel-and-diming businesses with another costly assessment.

In addition, to help create jobs, I am continuing my push for a “People’s Convention to Reform New York,” which will help enact long overdue reforms that our state government still needs. In July, an essay I wrote back in the wintertime was published in the Albany Government Law Review titled “New York’s Last, Best Hope for Real Reform: The Case for Convening a State Constitutional Convention.” To view my essay on-line, go to http://tinyurl.com/cxoctcn. For more information on my support for a non-partisan, grassroots “People’s Convention” or to sign our online petition, go to www.reformny.org.

AUGUST: KEEPING FIREARM COMPANIES – AND THOUSANDS OF PRIVATE SECTOR JOBS – IN NEW YORK STATE

In August – as in the entire year – my focus was still on jobs, jobs, jobs. I joined Tom King, President of the New York Rifle and Pistol Association in calling for Governor Cuomo’s Regional Economic Development Councils to make the retention of firearm companies such as Remington Arms; Just Right Carbines; Kahr Arms; Kimber Manufacturing; Turnbull Restoration and Dan Wesson Firearms a top economic development priority for the Empire State. I also said that the state Legislature needed to do its part and stop considering costly government mandates, such as micro-stamping, that do little to keep New Yorkers safe, yet drive up the cost of owning a firearm and create a climate where companies that produce them no longer feel welcome.

SEPTEMBER: HURRICANE IRENE AND TROPICAL STROM LEE DEVASTATE MANY UPSTATE COMMUNITIES

Sadly, September began with heartbreak in the form of cleanup and recovery from the destructive record flooding of Hurricane Irene and Tropical Storm Lee. The storms impaired local governments, devastated businesses and damaged regional roadways, bridges and other critical infrastructure that are the lifeline for citizens, commerce and communities across New York. About a week later, the Binghamton area of the Southern Tier was pounded by record rainfall from the remnants of Tropical Storm Lee.

To help affected communities repair, rebuild and recover, I asked Governor Cuomo to redirect $50 million of the $200 million in state economic development funding currently targeted for the administration’s Regional Council Initiative. While many repairs have been made, there are people still struggling to rebuild their homes, their businesses and their lives due to the storms.

OCTOBER: DMV INSTITUTES A BAD POLICY – AND THEN BACKTRACKS AFTER MY CRITICISM

Heading into October, the DMV instituted a new policy allowing motorists to “self certify” that they meet the vision requirement necessary to drive. I wrote to the Governor to request his immediate involvement in reversing this ill-advised policy change that would have put motorists’ lives at risk and undone decades of progress made toward New York’s roadways ranking among the safest in our nation. Due to the overwhelming outcry of disapproval, the DMV reversed its decision to eliminate the eye test. Thank goodness!

NOVEMBER: GOVERNOR RELEASES MID-YEAR UPDATE TO FINANCIAL PLAN

On November 14, Governor Cuomo released his mid-year update to the financial plan, about two weeks late. It estimated a current fiscal year deficit of $350 million and projected the next fiscal year’s deficit to be $3 to $3.5 billion. Our Assembly Minority Conference projected a current fiscal year deficit of $424 million and an out-year budget deficit of $3.46 billion.

What we need to close that looming deficit, prevent future deficits and protect taxpayers is a state spending cap. I introduced legislation – Assembly Bill A.5370 – that would enact a state spending cap based on changes in the Consumer Price Index, or CPI (an index measuring changes in the price level of consumer goods and services purchased by households) and make sure that the cap was actually followed. My bill would cap the growth of state operating funds spending to no more than the average rate of inflation of the three previous calendar years. A spending cap would put the brakes on Albany’s spending binges, force the State Legislature to set priorities and require state government to start living within its means.

DECEMBER: SPECIAL SESSION DID NOT ADDRESS ALBANY’S SPENDING PROBLEM, HIKED TAXES IN NEW YORK STATE

Unfortunately, Albany was “business as usual” during an extraordinary session called for the first week of December. The Albany tax code deal was negotiated in secret behind closed doors and did not include a state spending cap or a Medicaid spending cap, vehicles to reduce Albany’s out of control spending.

Our Assembly Minority Conference offered up two amendments – Assembly Bill A.5370 and Assembly Bill A.8453. Our state spending cap amendment (A.5370) would have capped year-to-year increases in state spending to the average rate of inflation of the three previous calendar years. The Medicaid spending cap amendment (A.8453) would have frozen the municipal share of local Medicaid costs at the current level, an important step toward reducing Medicaid costs and delivering unfunded mandate relief for localities. Both amendments were defeated by the Assembly Democratic Majority by votes of 88 to 51 (state spending cap) and 74 to 63 (Medicaid cap).

I said publicly that we should be doing more to protect taxpayers by capping local Medicaid costs, enacting a state spending cap and doing this through an open, public process where these issues are debated and discussed in the light of day. I believe that tax hikes have NEVER been the answer for creating more private sector jobs and long-term prosperity for New Yorkers, and I still believe that today. I will continue to bring these issues to the Assembly floor during the 235th Legislative Session beginning in January and will proudly keep fighting and standing up for taxpayers across the state.

As always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

In an effort to protect taxpayers from the explosive growth of state government spending and decrease the crushing burden of New York’s Medicaid program on local governments, Assembly Minority Leader Brian M. Kolb (R,I,C-Canandaigua) and the Minority Conference proposed two amendments to the Albany tax deal. The tax deal passed at 1:00 a.m. Thursday morning.

The two amendments – Assembly Bill A.5370 and Assembly Bill A.8453 – were offered by the Assembly Minority Conference to the principal legislation enacting the Albany tax deal. The state spending cap amendment (A.5370) would have capped year-to-year increases in state spending to the average rate of inflation of the three previous calendar years. The Medicaid spending cap amendment (A.8453) would have frozen the municipal share of local Medicaid costs at the current level, an important step toward reducing Medicaid costs and delivering unfunded mandate relief for localities. Both amendments were defeated by the Assembly Democratic Majority by votes of 88 to 51 (state spending cap) and 74 to 63 (Medicaid cap).

“New York may be ‘open for business,’ but Albany was ‘business as usual’ late Wednesday night. The Albany tax deal enacted in the dead of night Wednesday-with zero public hearings, zero public input and zero transparency– failed to address two of the biggest threats to New York’s fiscal stability: our state’s addiction to spending and its skyrocketing Medicaid costs. The inability, or unwillingness, to tackle these two huge fiscal challenges was a colossal missed opportunity and will end up costing taxpayers more later on down the line,” said Leader Kolb, who has spoken out against the Albany tax deal and the process used to enact it.

“Government spending and Medicaid were left untouched by Albany’s tax deal despite the fact that from 2000 to 2010, state spending increased by an unsustainable rate of nearly 70 percent. Also unaffected was the state’s Medicaid program – the costliest in our nation. New York spends more on Medicaid than Texas and Florida combined, even though these two states have almost 44 million residents to our 19 million. It is clear that reducing Medicaid costs and reining in state spending should have been on the agenda during Wednesdays Special Session. Instead, they were swept under the rug,” Leader Kolb concluded.

“From what has been reported in the media so far, the bottom line is that taxes are being raised in New York State and we are still not dealing with our state’s serious spending problem. There is still no significant unfunded mandate relief for local governments. We should be protecting taxpayers by capping local Medicaid costs, enacting a state spending cap and doing this through an open, public process where these issues are debated and discussed in the light of day, not through secret deals behind closed doors by three-men-in-a-room. Tax hikes have never been the answer for creating more private sector jobs and long-term prosperity for New Yorkers. That still holds true today.”

As mentioned previously, this week’s column will serve as the first of a special two-part series looking back at 2011 and the year that was, highlighting some of the major successes from the recent session as legislators prepare to return to Albany in January for the 235th Legislative Session.

When people look back on 2011 from a state government perspective, I believe it will be remembered as an historic year that began a long process of moving our state toward reclaiming its rightful place as a national leader in private sector job creation, excellence in government and reducing the taxpayers’ burden. While we cannot say that each of these issues have been resolved entirely, we can say that 2011 gave us a head start toward achieving real progress.

JANUARY: A NEW GOVERNOR AND A CHANCE FOR NEW YORK TO HIT THE “RESET” BUTTON

The swearing-in of new Governor Andrew Cuomo meant a fresh start for New York State and the chance to leave years of Albany’s partisan gridlock and “governance by crisis” mindset behind. I said that the Governor’s State of the State Address, delivered on January 5, 2011, represented a fresh start and a chance for New York to hit the “reset” button. Many of the themes the Governor outlined – returning to fiscal responsibility, instituting better management of state government and taxpayer dollars, delivering real tax relief, rebuilding our economy and strengthening ethics – were cornerstone issues I have long been fighting for. I pledged my bi-partisan cooperation with the Governor so we could transform New York State for the better.

FEBRUARY: COMMENTING ON 2011-12 EXECUTIVE BUDGET, OFFERING SUGGESTIONS TO MAKE NON-PARTISAN REDISTRICTING REFORM A REALITY

February saw the Governor unveil his 2011-12 Executive Budget, a comprehensive spending plan that began a long overdue, and at times painful, process of restructuring, redesigning and reforming state government by taking concrete steps toward reducing government’s cost and size. Once again, the Governor was reading from my policy playbook!

In February, I sent the Governor a letter outlining my specific recommendations aimed at improving his “Redistricting Reform Act of 2011” to ensure a redistricting process that was 100 percent fair, non-partisan and delivered the competitive elections New Yorkers deserved so they had a real choice on Election Day. I urged the Governor to join me in taking partisan politics out of redistricting by establishing a truly independent Legislative Redistricting Commission.

MARCH: DELIVERING AN ON-TIME STATE BUDGET THAT ACTUALLY CUT SPENDING

With one day remaining before the state’s April 1 fiscal deadline, we passed the 2011-12 State Budget on March 31, delivering an on-time spending plan for the first time in a long time. The budget was by no means a perfect spending plan, but a realistic and necessary one. It involved tough choices that began a long overdue – and sometimes painful – process of reducing spending, rightsizing state government and reforming Albany’s broken culture of tax-and-spend. The budget contained important victories including defeat of a “Success Tax Surcharge” extension, closure of a $10 billion budget deficit, enactment of the Power for Jobs program and a reduction of government spending.

APRIL: USING TECHNOLOGY TO SAVE TAXPAYER DOLLARS, RECOGNIZING NEW YORK’S “TAX FREEDOM DAY”

As part of my ongoing effort to save taxpayer dollars and reduce costs during these tough economic times and era of multi-billion dollar State Budget deficits, in April I asked residents to connect with me electronically through e-mail and social media outlets like Twitter, Facebook and YouTube, to reduce legislative mailing costs and save taxpayer dollars. I am pleased to report that, thanks to constituents who are now contacting me electronically, my office has been able to significantly reduce its legislative mailings and, in the process, save thousands of taxpayer dollars. So be sure and keep those e-mails, Facebook posts and Tweets coming!

Also in April, I recognized New York’s “Tax Freedom Day,” which was America’s third latest and said Albany could not continue putting tax relief on the backburner. Our state’s Tax Freedom Day – April 24 – represented when folks had finally earned enough to pay off their annual tax bill and was 12 days after the national Tax Freedom Day of April 12. I said New York is still one of America’s highest-taxed states and that unless Albany took concrete steps to reduce the burden of our property, individual income, corporate, gasoline and sales taxes, New York’s engine of job creation – the private sector – will remain stuck in neutral.

MAY: LISTENING TO CONSTITUENTS DURING MY “TELE-TOWN HALL”

May 18 was my “Tele-Town Hall Meeting” which featured an important conversation about New York’s future with thousands of local constituents from across the 129th Assembly District. A Tele-Town Hall is an innovative outreach tool that lets elected officials like me hear from, and speak with, constituents simultaneously during a lively and informative telephone conference call. During my Tele-Town Hall Meeting, I had the opportunity to communicate with thousands of residents who asked me specific questions and took part in opinion polls seeking their views on issues such as tax relief, reducing spending, creating private sector jobs and rightsizing state government.

JUNE: PUSHING FOR UNFUNDED MANDATE RELIEF, RECOGNIZING AN IMPORTANT LEGAL VICTORY IN THE FIGHT TO ENFORCE THE LAW

As the 2011 Legislative Session was nearing completion, the issue of unfunded mandate relief had fallen off Albany’s radar as absolutely nobody was talking about it. In my opinion, that was completely unacceptable and represented a clear failure on Albany’s part to “get it.”

I said that simply doing nothing while Albany’s unfunded mandates continued pushing local governments, school districts and taxpayers toward bankruptcy was NOT an option! This is why I gathered our Conference, County leaders and local government advocates in the State Capitol to make one final push for unfunded mandate relief before the 2011 Legislative Session concluded. Joining me were County leaders such as Monroe County Executive Maggie Brooks, and local government supporters such as New York State School Boards Association Executive Director Tim Kremer. We called for up-or-down votes on a host of legislation that would, among other things, cap state spending, freeze the local share of Medicaid costs for counties and force the state to pay for its unfunded mandates.

In addition, June saw a landmark State Appellate Division ruling that lifted the temporary order preventing the collection of taxes on cigarettes sold on Native American lands to non-Native American Indians. As the only Legislative Leader in state government who has continually pushed for enforcing the law on this matter, I said the ruling was a big victory for upstate taxpayers, businesses and everyone believing in the rule of law. Now that the legal roadblocks were removed, I said New York had a “green light” and should move full speed ahead with enforcing the law, collecting the taxes and leveling the playing field. I urged the Department of Taxation and Finance to begin the tax collections immediately.

COMING NEXT WEEK: 2011: THE YEAR IN REVIEW, PART II

Next week will feature Part II of 2011: The Year in Review, picking up where the 2011 Legislative Session left off, focusing on the months of July through December and everything that took place during that timeframe. The column will focus on my fight to stop the Unemployment Insurance Interest Assessment Surcharge imposed on small businesses, the devastation caused to New York by Hurricane Irene and the continued efforts of certain liberal politicians in Albany to revive the Success Tax Surcharge – exactly as I predicted would happen in this weekly column back in May!

As always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

Here is one thing that former President Bill Clinton and I have in common: We both clearly realize that now is NOT the time to be raising taxes. In fact, here is what President Clinton recently said about proposed federal tax hikes: “Should you raise taxes on anybody right today – rich or poor or middle class? No, because there’s no growth in the economy.”

President Clinton got this one 100 percent correct. In such a tough economy and with over 700,000 New Yorkers out of work, increasing taxes will do even more harm and send the wrong message to private sector job creators. Unfortunately, some liberal politicians in Albany disagree and actually want to bring back New York’s “Success Tax” surcharge. This is a bad idea. Never in recorded history has a civilization ever taxed itself to prosperity.

Even though we were able to defeat an attempted extension of the Success Tax in the 2011-12 State Budget and stop its passage as stand-alone legislation, there has been renewed talk of reinstituting the Success Tax in 2012. You may recall that the Success Tax surcharge was originally part of $10 billion in new taxes and fees that were enacted as part of the 2009-10 State Budget. I led the fight against that misguided spending plan and now want to make certain the Success Tax is history, ancient history.

ALBANY HAS A SPENDING PROBLEM, NOT A REVENUE PROBLEM

Supporters of the Success Tax will argue, mistakenly, that state government faces a revenue problem and needs “just a little bit more” of your hard-earned taxpayer dollars to operate. Baloney! The total 2011-12 enacted State Budget (all funds) was $131.2 billion. For a frame of reference, $131.2 billion is roughly enough money to buy eight state-of-the-art aircraft carriers – or 33 General Motors buildings. Does it sound like New York State is cash strapped to you? The truth is that Albany has more than enough money to meet state government’s basic obligations and still fund the essential programs New Yorkers count on. Albany does not have a revenue problem – it has a spending problem.

TRUTH ABOUT TAXES: WHO REALLY PAYS, WHY SUCCESS TAXES FAIL

As the only Legislative Leader in state government with a business background and 25 years experience in the private sector, I know what built New York’s economy: hard work, innovation, risk taking and sacrifice.

These very same things will get our economy moving again and help put unemployed New Yorkers back to work. Accordingly, here are some basic facts about state tax policy that Success Tax supporters are either unaware of, or simply do not want you to know. Let’s call it “Taxes 101” and class is now in session:

According to the State Department of Taxation and Finance, those with incomes exceeding $200,000 account for 5.5 percent of taxpayers in New York State, yet they pay 54 percent of total Personal Income Tax receipts;

Less than 1 percent (.6 percent) of the top income earners pay over 32 percent of the total Personal Income Tax receipts;

Those with incomes under $50,000 account for over half off all taxpayers in New York State (51.7 percent), yet pay a mere 8.4 percent of the total Personal Income Tax receipts;

When Oregon enacted its Success Tax, the state collected nearly one-third less revenue than projected; and

When Maryland enacted its Success Tax, it saw roughly one-third of its millionaire households disappear from the tax rolls after its state tax rates increased, as noted in the Wall Street Journal.

COURSE TAKEAWAYS: SUCCESSFUL NEW YORKERS ALREADY PAY PLENTY, SUCCESS TAXES HAVE FAILED TO MEET PROJECTIONS

The facts are clear: successful New Yorkers are already paying their fair share (and then some!) and Success Taxes – whether enacted here in New York or other states – have consistently failed to meet projections and done more harm than good to the economy and revenue collections.

WANT MORE JOBS? REFORM THE TAX CODE, PROVIDE REAL TAX RELIEF!

Hiking our state’s already crushing tax burden on successful individuals – the very same people who invest, take risks and create private sector jobs – will not fix our economy or get more than 700,000 unemployed New Yorkers back on the job. What will work, what has proven to work in other states and nationally, is reforming our tax code, reducing tax rates for everyone, and providing real tax relief across the board. We can achieve all of this through a simpler, fairer, flatter tax code that gets our economy moving again, not another Success Tax or more class warfare. Class dismissed.

As always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

Assembly Minority Leader Brian M. Kolb (R,I,C-Canandaigua) will be a guest TOMORROW MORNING, Tuesday, September 27, 2011, at 8:15 a.m. on WHCU Radio’s “Morning News Watch” with Dave Vieser. Leader Kolb will discuss his remarks delivered during the Business Council’s 2011 Annual Meeting last Thursday, where he emphasized the need for regulatory relief, tax reform, economic development and private sector job creation.

WHO: Assembly Minority Leader Brian M. Kolb
(R,I,C-Canandaigua)

WHAT: Assembly Minority Leader Kolb will discuss his
remarks at the Business Council’s 2011 Annual Meeting

WHEN: Live Interview, TOMORROW MORNING,
Tuesday, September 27, 2011, at 8:15 a.m.

WHERE: WHCU Radio’s “Morning News Watch” with host Dave Vieser,
870 AM (Broome, Cayuga, Cortland, Ithaca, Onondaga, Schuyler, Tompkins, Tioga counties).
Interview available via podcast at www.whcu870.com

CONTACT: Joshua Fitzpatrick, (518) 455-3751, (518) 542-2413
joshuakevfitz@yahoo.com

Assembly Minority Leader Brian M. Kolb (R,I,C-Canandaigua) will address the Business Council of New York State, Inc. during its annual meeting TOMORROW, September 22, 2011, at 9:45 a.m. Leader Kolb will outline an agenda promoting regulatory relief, tax reform, economic development and more private sector jobs.

Prior to entering public service, Leader Kolb worked extensively in the private sector and is the only Legislative Leader in state government that has started and run successful manufacturing companies.

WHO: Assembly Minority Leader Brian M. Kolb
(R,I,C-Canandaigua)

WHAT: Leader Kolb addresses Business Council meeting

WHEN: TOMORROW, September 22, 2011 at 9:45 a.m.

WHERE: The Sagamore Resort on Bolton Landing,
110 Sagamore Road, Lake George, NY

CONTACT: Joshua Fitzpatrick, (518) 455-3751
joshuakevfitz@yahoo.com

Much of the news these past few weeks has focused on our nation’s capitol
with its heated back-and-forth discussions about raising the nation’s debt
limit, passing real spending cuts and enacting structural reforms to
programs that will finally bring the federal budget back into balance. As
expected, a great deal of the “debt debate” in Washington has been dominated
by partisan politics and political rhetoric.

NEW YORK NEEDS AN ADULT CONVERSATION ABOUT FISCAL REALITY

What seems to have gotten lost in Washington’s partisan squabbling is the
genuine need to restore fiscal sanity at ALL levels of government. Here in
New York State, I genuinely believe that we need an adult conversation about
getting our Empire State back on track and headed toward long-term financial
health. This journey begins – and ends – with restoring fiscal
accountability that will lead to a stronger, more affordable and prosperous
New York State.

While the 2011-12 State Budget achieved some progress on this front, New
York State still faces massive financial challenges. Those challenges are
not far off on some distant horizon – they are right here, today, and are as
follows:

a.. State government still spends too much;
b.. New York’s tax code is too confusing, complex and costly for taxpayers
and businesses and acts as a disincentive to private sector job creation;
c.. Albany continues to pass its buck – along with its costs – onto the
backs of local governments and school districts leading to higher property
taxes; and
d.. Our economy remains stuck in neutral and there are not enough
good-paying private sector jobs to keep our kids here.

Fortunately, there is a real solution to every problem – and solving New
York’s financial problems are no exception. I believe that the solutions
are straightforward: cap state spending; reform New York’s tax code so it is
fairer and flatter; prevent Albany from continuing to pass unfunded
mandates, and remove regulatory barriers to private sector jobs creation.

CAP STATE SPENDING

New York State government does not have a revenue problem, it has a spending
problem. Case in point: over the past decade, state spending has risen by
nearly 50 percent!

Without question, Albany must learn how to live within its means and stop
spending more than it takes in. Liberal politicians in Albany always
promise to cut spending but we all know what those promises are worth. The
true solution requires enacting a state spending cap that imposes fiscal
discipline on Albany. I have introduced legislation – Assembly Bill
A.5370 – that would establish a cap limiting the growth of state spending to
no more than the average rate of inflation of the three previous calendar
years. This cap will make fiscal accountability a reality and prevent
Albany from continuing to run up the public credit card.

REFORM NEW YORK’S TAX CODE

New York’s tax code is nearly six thousand pages long and requires an
advanced degree in accounting, economics and the law to comprehend fully.
It is no exaggeration to say that our state’s complex, complicated and
costly tax code is a major disincentive to job creation. Businesses look to
other states with less complicated tax codes that do not penalize earnings,
savings, investment and innovation the way New York does. We need to move
forward with real tax reform that leads to a simpler, fairer and flatter tax
code resulting in lower tax rates for everyone. Fixing New York’s tax code
will reduce tax rates for families and businesses and it’s what President
Reagan achieved as part of bi-partisan tax reform during his administration.
Our economy would benefit as real tax reform could unleash a wave of private
sector job creation.

BAN ALBANY’S UNFUNDED MANDATES

Whenever Albany tells local governments to do something – start a program,
provide a service, meet a perceived need – and doesn’t provide any funding,
that is an “unfunded mandate.” The increased costs caused by unfunded
mandates are absorbed by local governments and school districts and lead to
increased local property taxes for homeowners. I have introduced two
legislative initiatives – Assembly Bills A.4811 and A.8447 – that would
place a permanent moratorium on certain unfunded state mandates imposed on
local governments and school districts; require fiscal notes on bills
stating the estimated annual costs to affected communities; and create the
“Unfunded Mandate Reform Plan” to identify unfunded mandates that need to be
repealed. My bills would target unfunded mandates and stop Albany’s
continued cost shift.

REMOVE BARRIERS TO PRIVATE SECTOR JOB CREATION

As we wait for Governor Cuomo’s Regional Economic Development Councils to
get moving, almost 800,000 unemployed New Yorkers continue hurting. We need
to get Albany’s focus back where it needs to be: jobs, jobs, jobs. This
means removing regulatory barriers to private sector job creation and
transforming State Agencies so they work with, instead of against, job
creators and support the job-creation environment New Yorkers have been
demanding.

Capping spending, reforming the tax code, banning Albany’s unfunded
mandates, and removing regulatory barriers to private sector job creation –
these are common sense steps that we can, and should, take to move New York
forward and increase prosperity here in the Empire State. We already know
the problems; now is the time for Albany to get moving on real solutions!

As always, constituents wishing to discuss this topic or any other
state-related matter should contact my district office at (315) 781-2030, or
e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook
and Twitter for the latest news and informational updates regarding state
government and our Assembly Minority Conference.

“Today is a good day for upstate. The just-announced State Appellate Division ruling that lifted the temporary order preventing the collection of taxes on cigarettes sold on Native American lands to non-Native American Indians is a big victory for taxpayers, businesses and everyone who believes in the rule of law. We have endured court case after court case, delay after delay, excuse after excuse. Now, all the legal roadblocks have finally been removed. New York has a ‘green light’ to move full speed ahead with enforcing the law, collecting the taxes and leveling the playing field. I urge the Department of Taxation and Finance to begin the tax collections immediately. It has taken 17 years, but we are finally at the point where the law is going to be enforced and we will have justice and fairness for all.”

Only two legislative days remain in the 2011 Session as this column is being composed, so next week’s edition will contain a detailed wrap-up highlighting the accomplishments from this year’s session, while listing any unfinished business needing completion. The subject of this week’s column is the issue of unfunded mandates – and my groundbreaking legislation that would give local governments, school districts and taxpayers real relief from Albany’s cost drivers.

Over the past year, I have been meeting with countless local elected officials, school board members and taxpayers, listening to their concerns about what state government could do to stop hurting and start helping. During my meetings, I have consistently heard the same powerful message: we need REAL RELIEF from Albany’s unfunded mandates, fiscal irresponsibility and mandated programs like Medicaid, along with rising health care, payroll and pension obligations. These budget-busting cost drivers are bankrupting localities, school districts and taxpayers – and threatening New York’s long-term financial future.

These concerns are much more than an “issue” to me: as a former local elected official, I know firsthand the fiscal devastation caused by Albany’s “pass-the-buck” mentality. This is why I am proud to announce my introduction of the most comprehensive unfunded mandate relief legislation ever advanced by a Legislative Leader in state government: the “Taxpayer Protection and Mandate Relief Act,” Assembly Bill A.8447. This initiative would significantly address Albany’s cost drivers and restore fiscal sanity to state government.

TAXPAYER PROTECTION & MANDATE RELIEF ACT: THE “GAME CHANGER” LOCALITIES, SCHOOL DISTRICTS & TAXPAYERS HAVE WAITED FOR

The Taxpayer Protection and Mandate Relief Act is the most sweeping initiative of its kind brought forward during this, or any other Legislative Session in recent memory. If you are a regular reader of my columns, you already know that I have been leading the fight to address Albany’s unfunded mandates – the bureaucratic rules, regulations and requirements that state government imposes on local governments and school districts that significantly drive up costs. The unfunded mandate costs end up being passed on to local taxpayers who pick up the tab in the form of higher property taxes.

The legislation I introduced would provide a moratorium on new unfunded mandates for as long as a property tax cap is in place; freeze County Medicaid costs; give the Governor and state Legislature the power to repeal existing unfunded mandates; enact comprehensive pension reform; and enact many other positive changes. Here are some specific provisions of the Taxpayer Protection and Mandate Relief Act:

SUSPEND & REMOVE ALBANY’S UNFUNDED MANDATES

a.. Prohibit any new unfunded mandates on local governments and school districts for as long as a property tax cap is in place;

a.. Require “fiscal notes” – specific language making it clear what a piece of legislation’s financial impact is – on bills affecting local governments;

a.. Establish a process for the Governor to annually submit to the state Legislature a plan to repeal unfunded mandates. Also, require the state Legislature to vote on the plan within 60 days of its submission, with or without amendments;

RESTORE FISCAL RESTRAINT TO STATE GOVERNMENT

a.. Cap state spending to the average rate of inflation of the three previous calendar years and increase the maximum capacity of the state’s Rainy Day Fund from three percent to 10 percent of General Fund spending. If a spending cap had been in place over the past decade, spending would have been $30 billion less this year;

REDUCE PUBLIC PENSION & PAYROLL OBLIGATIONS

a.. Establish a defined contribution retirement plan for all new public employees and teachers, who join a New York State or New York City Retirement System;

a.. Allow local governments to opt out of the provisions of the Triborough Amendment, which allows for step-increases during periods of expired contracts and removes the incentive for public employee unions to renegotiate contracts;

REIN IN MEDICAID MANDATES

a.. Allow counties to opt out of providing optional Medicaid services to new enrollees. Also, require the State Commissioner of Health to apply for a federal waiver to implement this provision;

a.. Freeze the municipal share of Medicaid costs at the current level;

ADDRESS HEALTH CARE COSTS

a.. Increase the state tax credit allowed for the premium paid for long-term care insurance from 20 to 50 percent;

a.. Allow health savings accounts, which are low rate-high deductible plans with catastrophic coverage. These plans are currently prohibited under New York State Law;

a.. Require all public employees to make minimum health care contributions (10 percent for individuals, 25 percent for families);

CUT THE EXPENSE OF LOCAL CONSTRUCTION PROJECTS

a.. Remove prevailing wage requirements on municipal construction projects with a total anticipated cost of less than $500,000;

a.. Repeal the state law that extended applicability of the prevailing wage law to private sector third parties contracting out work for a public entity;

a.. Grant counties a local option to not follow sections 240 and 241 of the State Labor Law (Scaffold Act) and be subject to a contributory negligence standard;

a.. Repeal the WICKS Law, a state mandate that significantly drives up construction costs for localities and school districts by requiring separate plumbing, heating, ventilation, air conditioning and electrical contracts for certain projects;

a.. Allow contractors to submit bids that do not include project labor agreements;

PROVIDE RELIEF FROM STATE ADMINISTRATIVE & PAPERWORK REQUIREMENTS:

a.. Allow for regional school district employee collective bargaining through BOCES;

a.. Require the State Commissioner of Education to reduce onerous paperwork requirements and allow the electronic submission of reports;

a.. Authorize school districts and the State Commissioner of Education to determine when Academic Intervention Services (AIS) are redundant;

a.. Discontinue the cost of fingerprinting from collective bargaining agreements with teacher unions;

a.. Require all professional development plans to be designed by State Education Department. Also, allow school districts to create development and mentoring plans once every three years, rather than on a yearly basis; and

a.. Require building inspections once every three years as opposed to annually.

The Taxpayer Protection and Mandate Relief Act represents the first, serious step toward delivering real relief from Albany’s unfunded mandates and would save billions by significantly reducing cost drivers for local governments, school districts and taxpayers. This legislation should mark the start of a much-needed adult conversation about dealing with Albany’s unfunded mandates, reining in entitlement programs like Medicaid, and putting the brakes on major cost drivers like health care and pensions. If enacted, the legislation I advanced will reduce Albany’s crushing burden on taxpayers and finally make good on the promise of a state government that is helping, not hurting.

As always, constituents wishing to discuss this topic or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

On Wednesday, June 8, State Supreme Court Justice Donna Siwek lifted the temporary restraining order she originally imposed back on Tuesday, May 10, that had prevented the State Department of Taxation and Finance from moving forward with collecting taxes on cigarettes sold on Native American lands to non-Native American Indians. The Judge’s action was a victory for the rule of law. In short, it meant that after almost 17 years of endless legal maneuvering and costly courtroom battles this issue was finally nearing conclusion. And not a moment too soon!

Judge Siwek’s decision to lift her temporary restraining order sidetracked what appeared to be a legal strategy to stall, delay and deny New York State from moving forward with enforcing the law, collecting the tax and leveling the playing field. The fact that the plaintiffs (the Seneca Indian Nation) were no longer arguing on the substance of the matter – whether the taxes could legally be collected – and instead focused on the Department of Taxation and Finance’s procedure for collecting the taxes – showed this legal gambit had reached the end of the line.

U.S. SUPREME COURT RULED – 17 YEARS AGO – THAT NEW YORK STATE COULD ENFORCE THE LAW AND COLLECT THE TAXES

The record is clear: the plaintiffs had their day in federal and state court. In fact, they had multiple days over multiple years, stretching all the way back to 1994 when the United States Supreme Court ruled in its Attea decision that New York State had the legal authority to collect sales taxes on cigarettes sold on Native American lands to non-Native American Indians.

It has been 17 years since that landmark court decision. Since then, local governments and taxpayers have borne literally millions in legal costs, countless mom-and-pop convenience stores were forced to close because their competitors were not following the law, and New York State lost billions in revenue. Money that could have been collected and used to help fund education, deliver real property tax relief, improve health care, or repair critical infrastructure is gone forever because of unnecessary legal delays. That is a shame.

YET ANOTHER JUDICIAL INTERVENTION

Unfortunately, the good news from Judge Siwek’s action was short lived. On Thursday, June 9, less than 24 hours after Judge Siwek’s ruling, State Appeals Court Judge Jerome Gorski delayed the state’s enforcement of tax collections until Monday, June 20.

It was troubling, but not unexpected, that yet another appeal was granted. Much like the plaintiffs’ previous legal maneuvering, this latest appeal is without merit and should be dismissed.

Our legal system affords the right to an appeal, but there are reasonable, common sense limits. The appeals process was designed to ensure justice, not to indefinitely avoid justice. Keep in mind that the United States Supreme Court, Federal Court of Appeals, U.S. District Court, New York State Supreme Court, and New York State Court of Appeals have all ruled in favor of the state’s legal authority to collect sales taxes on cigarettes sold on Native American lands to
non-Native American Indians.

LEGAL PROCESS IS NOT A GAME

Our legal process is not a game. It must not be treated as such. Fortunately, the decision to go forward with enforcing the law and collecting the taxes rests with Governor Cuomo and State Department of Taxation and Finance Commissioner Mattox. They should know that their actions are 100 percent supported by Legislative Leaders like me, along with taxpayers, businesses and an overwhelming majority of New Yorkers who still believe in the rule of law.

FIGHTING THE GOOD FIGHT FOR UPSTATE

As the only Legislative Leader in state government speaking out on this issue – and the sole Leader representing upstate – I have been honored to be at the forefront of a growing coalition of upstate taxpayers, businesses, labor groups and local officials who strongly support enforcing the law, collecting the taxes, and leveling the playing field. No matter how long it takes, I will not stop fighting until the rule of law carries the day and the interests of upstate are protected. That is my promise to you.

As always, constituents wishing to discuss this topic or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

“The decision by State Supreme Court Justice Donna Siwek to lift her temporary restraining order was a victory for the rule of law and a defeat for the Seneca Indian Nation. The decision turned back the Seneca Indian Nation’s efforts to stall, delay and deny New York State from moving forward with enforcing the law, collecting the tax and leveling the playing field.

The Seneca Indian Nation had their day in court. In fact, they have had day after day, year after year, going all the way back to 1994, when the United States Supreme Court first ruled that New York State could collect taxes on cigarettes sold on Native American lands to non-Native American Indians. It has been 17 years since that decision and, in the interim, local governments and taxpayers have borne millions in legal costs, countless convenience stores were forced to close because competitors were not following the law, and state government lost billions in revenue. Money that could have been collected and used to fund education, deliver property tax relief, improve health care or repair critical infrastructure is gone forever.

It is troubling, but not surprising, that the Seneca Indian Nation is seeking still another appeal. This latest claim – much like their previous maneuvering – is wholly without merit and must be dismissed. Our legal system affords the right to an appeal, but there are limits. The United States Supreme Court, Federal Court of Appeals, U.S. District Court, New York State Supreme Court, and New York State Court of Appeals have all ruled against the Seneca Indian Nation. The Seneca Indian Nation’s latest ploy makes a mockery of our legal system and demonstrates they have no desire to follow the law. Fortunately, the decision is not up to them. It is up to Governor Cuomo and State Department of Taxation and Finance Commissioner Mattox to begin enforcing the tax collections, knowing full well that their actions are supported by an overwhelming majority of New Yorkers who believe in the rule of law.”

At the time this weekly column is being written, the 2011 Legislative Session is officially set to conclude on Monday, June 20. Until then, there are exactly eight official “legislative” days remaining for the Assembly and Senate. That means Legislative Leaders like me, legislators, and Governor Cuomo have exactly eight days to reach final agreement on several items of unfinished business that New Yorkers are demanding – and deserve – to have resolved.

ALBANY CAN’T ALLOW IMPORTANT ISSUES TO FALL THROUGH THE CRACKS

Much like every year, there will probably be a mad dash to the finish line during the waning days of session, punctuated by some very late nights and last-minute deal making. This is nothing new: trying to forge agreement between 212 legislators and the Governor on complex public policies affecting the future of every New Yorker requires some give-and-take. Nevertheless, what we cannot allow to have happen is for important issues to fall through the cracks – or fall victim to a bad deal. That is unacceptable. New Yorkers have heard all the promises and now they want results: this year, this session.

UNFINISHED BUSINESS: PROPERTY TAX CAP, ETHICS REFORM, REDISTRICTING REFORM, UNFUNDED MANDATE RELIEF AND JOB CREATION

Front and center on Albany’s extensive to-do list are several pressing public policy issues including the property tax cap, ethics reform, redistricting reform, unfunded mandate relief and private sector job creation. While these are not the only matters needing resolution – many legislators have local issues that are legitimate and worthwhile – in my view, the priorities I listed are the most pressing and should command our time and attention. The following is a checklist of each issue and why it needs to be resolved over the next eight days – keep this list handy and follow the progress of the 2011 session as it draws to a close.

TO-DO: PROPERTY TAX CAP

New York has a property tax crisis – property tax rates in our state are nearly double the national average and nine of the ten highest property taxed counties (as a percentage of home value) are located across upstate. While there was an announcement of an agreement on the property tax cap two weeks ago, the legislation still has not been brought to the floor by the Assembly Democratic Majority for an up or down vote, as I have called for all along.

New York needs a property tax cap and will have a property tax cap if Assembly Democrats bring Governor Cuomo’s property tax cap bill to the floor for an up or down vote. In addition to the Governor’s bill, I have sponsored property tax cap legislation – the “New York State Property Taxpayers Protection Act,” Assembly Bill A.3897-B – that would cap property taxes at two percent or the rate of inflation, whichever is lower. The bill also includes unfunded mandate relief for County governments and local school districts.

TO-DO: ETHICS REFORM

As these words are being put to paper, there is talk in Albany of a deal on ethics reform. Unfortunately, that is all we have heard: talk. As deliberations on an ethics bill continue, we cannot lose sight of the fact that Albany has been awash in a culture of corruption and plagued by a series of embarrassing scandals. My goal is for New York State government to have the toughest ethics laws in the nation. This means no public pension for public officials convicted of a felony, no more “pay-to-play,” and a genuine commitment to the principles of disclosure, transparency and accountability.

TO-DO: REDISTRICTING REFORM

In 2012, the boundaries for all 150 Assembly Districts and all 62 Senate Districts will be redrawn in accordance with results of the 2010 U.S. Census and our State Constitution. I have been out front – and vocal – in calling for creation of an independent Legislative Redistricting Commission to take partisan politics out of redistricting. An independent Legislative Redistricting Commission is the only way to ensure we have elections that are 100 percent fair and competitive so voters have a real choice. To make this happen, I am sponsoring a non-partisan redistricting initiative – Assembly Bill A.6482 – and have submitted my recommendations to Governor Cuomo to improve his “Redistricting Reform Act of 2011.”

TO-DO: UNFUNDED MANDATE RELIEF

I have said it before and will keep saying it: there is a direct link between Albany’s unfunded mandates – the costly, cumbersome, time-consuming rules, regulations and red tape state government imposes on local governments and school districts – and your property tax bill. Albany unfunded mandates drive up local costs and local property taxes. While passing a property tax cap is a down payment on the promise of tax relief, a tax cap alone does not go far enough. Truly delivering property tax relief means capping property taxes, putting the brakes on unfunded state mandates, and capping state spending. I will soon be introducing legislation that accomplishes all three of these goals – stay tuned!

TO-DO: PRIVATE SECTOR JOB CREATION

This column was prepared on Friday, June 3, just a few hours after news broke that the national jobless rate actually increased, climbing from 9 percent to 9.1 percent. That seemingly small change has big implications, as it translates into thousands more on the unemployment lines. Here in New York we also are struggling, as our economy lags behind that of other states, largely due to our high cost of doing business and having the worst State Business Tax Climate in America. We need a plan – an actual plan – that will help create more private sector jobs and put more New Yorkers back to work. Passing such a plan this session is just as important – if not more so – than any of the other aforementioned priorities remaining on Albany’s to-do list.

2011 SESSION WILL END ON A HIGH NOTE – IF ALBANY BUCKLES DOWN AND FINISHES THE PEOPLE’S BUSINESS

While the 2011-12 State Budget – which was on time, closed a $10 billion deficit, reduced government spending and contained no significant tax hikes – was a good start, if Albany fails to achieve agreement on the unfinished business I outlined, this session will likely be remembered as the latest in a long line of missed opportunities. I am working hard to make sure this is not the case and that New Yorkers see real results on the property tax cap, ethics and redistricting reform, unfunded mandate relief and private sector job creation. One thing is for certain: with just eight legislative days remaining, there is not a moment to lose!

As always, constituents wishing to discuss this topic or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.

For all the talk of newfound fiscal responsibility in state government, the fact is that for certain liberal politicians and special interests in Albany it remains exactly that: talk. Judging by their actions, these folks simply will not stop until they have rammed through yet another tax hike that destroys more private sector jobs and jeopardizes New York’s economic recovery. The Albany liberal politicians desperately want to get their hands on more of your hard-earned money and they are determined to do so – by hook or by crook.

BACK FROM THE GRAVE: THE “SUCCESS TAX”

Think I’m exaggerating? Think again! Last week, the Success Tax – a.k.a., the so-called “Millionaire’s Tax” – was brought back to life and re-introduced as legislation in the State Assembly. I refer to it as the “Success Tax” because that’s precisely what it is: a tax on hard-working, successful New Yorkers. You may recall that the enacted 2011-12 State Budget did not contain an extension of the Success Tax – and as one of the most outspoken opponents of this tax, I gladly reported on its defeat. I also wrote in the same column that despite the setback, certain liberal politicians in Albany would not get the message and ultimately try to resurrect the tax. Why? Because they are hopelessly addicted to spending your money.

NEW YORK NEEDS JOBS, NOT CLASS WARFARE RHETORIC

When you hear such a loaded phrase as “Millionaire’s Tax,” realize that it is nothing more than political propaganda, and not a statement of fact. The intentional use of the word “millionaire” is a retread of the tired class warfare rhetoric from the 1980s and 1990s that tried to pit one group of taxpayers against another. It didn’t work then and it won’t work now. Class warfare has never created a job, built a business, or put people back to work. Class warfare did not build the middle class or make America successful. Hard work, entrepreneurship, risk taking and the private sector did. Unfortunately, despite these facts, class warfare is seemingly alive and well in our State Capitol.

TAX HIKES KILL JOBS & HURT THE ECONOMY

In his testimony before the Joint Legislative Fiscal Committees back in February of 2011, E.J. McMahon – a highly respected, independent and non-partisan fiscal expert – repeatedly warned policymakers against extending the state income tax surcharge on successful New Yorkers.

In his official testimony (available at the Empire Center for New York State Policy, located on-line at www.empirecenter.org), McMahon said the following: “Higher income taxes create a disincentive to work, save and invest in New York. They sap the working capital of small businesses, and they provide the state’s most successful and mobile taxpayers with another reason to consider shifting their base of operations to lower-taxed states. Economists and tax-policy analysts have long recognized a link between taxpayer behavior and changes in marginal rates, especially in higher income brackets, where taxpayers have more control over the timing and nature of their incomes. When rates rise sharply, taxpayers respond by working and earning less, by shifting their tax ‘domicile’ to lower-tax jurisdictions, and by using legal strategies to shift or shelter income in tax-exempt investments.”

ECONOMICS 101: WHEN YOU TAX SOMETHING, YOU GET LESS OF IT – AND SUCCESSFUL
PEOPLE LEAVE

What McMahon was essentially saying is that whenever government hikes taxes on successful people, as New York irresponsibly did in 2009, it creates an economic disincentive for them to work harder because what they earn is now taxed at a much higher rate. It’s Economics 101: when you tax something, you get less of it. McMahon also spoke to the reality that when taxes rise, successful people leave. Case in point: billionaire Tom Golisano, founder of Paychex and former owner of the Buffalo Sabres. Soon after New York imposed its Success Tax Surcharge, Golisano penned an op-ed where he specifically cited New York’s rising taxes as a reason he was leaving the Empire State for the Sunshine State. As a result, Florida gained another successful New Yorker – and our state lost approximately $13,800 a day in revenue from Golisano’s departure. “I leave New York” indeed.

DEFEAT OF THE SUCCESS TAX WILL HELP OUR STRUGGLING ECONOMY

Traditionally, New York’s economy enters a national recession later than other states. It also leaves a recession later than other states, meaning that our economy is usually struggling to add jobs and put folks back to work long after other states have already been doing so. This is the proverbial rock and a hard place that New York finds itself caught between as our number of unemployed remains close to 800,000 – a figure that is likely much higher when underemployment is accounted for. With almost 800,000 citizens out of work, how in the world could it make any sense to anyone to INCREASE taxes on the very same people we expect to create jobs? It makes no sense, whatsoever.

Defeating the Success Tax once and for all will help our struggling economy and create an environment where private sector jobs can flourish. Albany needs to focus on resurrecting the promise of good-paying jobs and a better tomorrow, not rehashing political class warfare or bad public policy like the Success Tax.

Always, constituents wishing to discuss this topic, or any other state-related matter should contact my district office at (315) 781-2030, or e-mail me at kolbb@assembly.state.ny.us. You can also follow me on Facebook and Twitter for the latest news and informational updates regarding state government and our Assembly Minority Conference.