News from STATE SENATOR

Liz Krueger

New York State Senate, 26th District


COMMUNITY BULLETIN – May 2003

 

Message from Liz . . .

My last few weeks in Albany have been the most encouraging of my short tenure as your State Senator.  The ability of the Assembly and Senate to work together and stand up to the Governor on the budget leads the optimist in me to see this as a real opportunity to change the way we do business in Albany.  There are still significant challenges, and the legislature will have to hold together to override the Governor’s expected vetoes in the face of his efforts to bully and intimidate legislators, but at least for now there is a new sense of bipartisan cooperation and common purpose in the legislature.

 

I believe that the developments of recent weeks must be seen as merely a change of direction, and that those of us who believe in systematic reforms in Albany will have to work very hard to keep us on a path toward reform.  The optimist in me sees this as a great opportunity, but it is important to acknowledge that much of the way Albany does business has not changed.  Individual members still had minimal involvement in the development of the budget – in many ways Governor Pataki’s refusal to play simply turned three men in a room into two men in a room.  Legislators did have more time to review the budget that the two men presented to them, since the Constitution requires bills to age three days before being voted on unless the Governor issues a message of necessity waiving the three day requirement.  In typical years, that is exactly what the Governor does, but he obviously was less cooperative this year.  However, even without messages of necessity, the leadership did its best to limit the ability of legislators or the public to review the bills by printing them as late as they could and still comply with Constitutional requirements.  In sum, we had more legislative review this year, but still much less than one would expect for an issue as important as the state budget.

 

Another problem with the process is that since several bills make up the state budget, legislators were required to vote on some spending measures before they had seen the rest of the budget – most importantly the revenue budget.  I voted no on some of the spending bills this year because at the time there was no revenue bill, and I felt it was irresponsible to authorize spending without knowing how we were going to pay for it.  Once the revenue package was released I voted in favor of a number of budget bills, including restoration of most of the cuts to education and health care.  I could not support the revenue package because of its reliance on a regressive sales tax increase and the borrowing of 4.2 billion dollars to pay for operating expenses.  As I indicated in last month’s report, I believe that were we to seriously examine the $29 billion in revenues lost to the state through the tax expenditure budget, we could have found much more progressive and fiscally responsible ways to close the budget gap.

 

District Office: 211 East 43rd Street, Suite 1300, New York NY 10017 (212) 490-9535 Fax: (212) 490-2151

Albany Office: Room 302, Legislative Office Bldg., Albany NY 12247 (518) 455-2297 Fax: (518) 426-6874

Whatever my doubts about this years’ process, there can be no doubt that the State Legislature’s budget is much better for the health of New York State than the draconian budget offered by the Governor.  If the Governor follows through on his threat to veto parts of the budget, I will be joining with my colleagues on both sides of the aisle and voting to override those vetoes.  We have made an important step in the right direction, and I will be working to make sure we stay on the right track by pushing an agenda of more fundamental reforms that will truly change the way Albany does business. 

 

 

 

 

“The Senator is “In

Rotating Office Hours In the District

 

Date:  Saturday, May 17, 2003 (weather permitting)

Time: 11:00am-1:30pm                     

Place: East 23rd Street and 3rd Avenue, SE corner

          (in front of Pick-a-Bagel)

Raindate: Sunday, May 11, 2003 (same time & place)

 

Transportation Town Hall Meeting

 

·        2nd Avenue Subway

·        Articulated Buses

·        Elimination of Stops/Rehabilitation of Subway Stations

·        MTA Finances – Disclosure and Accountability

·        Federal Support of New York City Transit Systems

 

Participants include:

Dr. Robert Paaswell, University Transportation Research Center at CCNY
Trudy Mason, Permanent Citizens' Advisory Committee for the MTA
Joe Rappaport, Policy Advisor for Transport Workers Union, Local 100
Straphangers Campaign
Community Representatives

                                                                                                                                                 

                          Date:  Thursday, June 5th

                          Time:  7:00-9:00pm                     

                          Place: Jan Hus Church, 351 East 74th Street

          Between First and Second Avenues

 


Community Spotlight

 

Public Hearings on Second Avenue Subway: 

The Metropolitan Transportation Authority is holding two public hearings on the Second Avenue Subway Environmental Impact Statement.  I am extremely pleased to report that the Second Avenue Subway project is moving forward on schedule toward a groundbreaking date in late 2004.  The project is currently in the environmental review phase, and it is essential that there be substantial community participation now to minimize problems when construction commences.  I urge all interested parties to attend the public hearings next week.  My office also has a copy of the Environmental Impact Statement.  If you would like to review the statement, please contact Dan Steinberg in my office at (212) 490-9535.

 

The hearing schedule is as follows:

 

Monday May 12, 2003                                             Tuesday May 13, 2003

4 PM                                                                      4 PM

US Custom House,                                                         El Museo Del Barrio

1 Bowling Green                                                          1230 Fifth Avenue at 104th Street

(4 or 5 train to Bowling Green Stop)                     (6 train to 103rd Street)

 

Report on Tenant’s Town Hall Meeting and Tenants Lobby Day:

On Tuesday, April 22nd, Assemblymembers Pete Grannis and Jonathan Bing and I co-sponsored a Tenants’ Town Hall Meeting to discuss the importance of rent regulations to New York City’s families and neighborhoods.  I am extremely pleased to report that over 200 community members, of all ages and from all walks of life, attended to learn how they can participate in the various efforts to protect and expand affordable housing.  The forum offered legislative perspectives and updates on the status of various bills being considered by both houses of the New York State legislature that would extend rent regulations until 2008 and end vacancy decontrol.  Representatives from New York State Tenants & Neighbors, the East Side Tenants’ Coalition, Eviction Intervention Services and the Metropolitan Council on Housing joined us to explore numerous ways community members can get involved with the fight on both the local and state levels.  Tenants will be converging on Albany for a Lobby Day on May 13, and I urge everyone to participate.  Please contact my office at (212) 490-9535 for more information on Lobby Day, including information on free buses to Albany. 

 

Rent Guidelines Board (RGB) Public Hearing on Proposed Rent Increases:

 

In a preliminary vote earlier this week, the NYC Rent Guidelines Board granted landlords approval to increase rent stabilized rents by the largest percentages since 1989.  I have many serious concerns about what this decision will mean for the more than two million low, moderate and middle-income rent stabilized residents of New York City who are already facing nearly unprecedented levels of unemployment and cost of living increases. During these extraordinarily difficult economic times, I fear that these rent increases will lead to further hardships, and even evictions, for tens of thousands of New York City’s families.

 

Despite building owners legitimate claims that their operating expenses have risen significantly during the last year due to the rising property tax rates and the costs of insurance and fuel, the rent regulated real estate market continues to be one of the most consistently profitable investments in New York City.  According to the RGB’s own reports, owners’ net operating income has risen every year since 1990, mortgage interest rates for multifamily buildings are at their lowest level in over 25 years and the overall condition of the city’s rent regulated housing stock continues to improve.  While it is reasonable to expect tenants and landlords to share the burden of increased operating expenses, this burden must be shared in proportion to each group’s ability to pay.  It is unconscionable for building owners in one of the most profitable economic sectors of our economy, to pass all of their expenses onto tenants who have a median income under $31,000.  I will urge the members of the RGB to reconsider their decision when I testify before the board.  Please join me in testifying at the public hearing, which will be held on Tuesday, June 17th from 10AM to 10PM at the Great Hall at Cooper Union, 7 East 7th Street.  Testimony on apartment rent increases will be heard from 1:15PM to 6:00PM and from 8:15PM to 10:00PM.

 

M15 Bus Stops Saved:

I am pleased to report that after I joined other elected officials in writing to the Metropolitan Transportation Authority (MTA) to protest the elimination of bus stops on the M15 line, the MTA has reversed their decision to eliminate several stops.  One of the saved bus stops is at East 70th Street and Second Avenue, which is less than a block away from the Lenox Hill Senior Center & Luncheon Club.  Another stop that was saved from elimination serves the Burden Center for the Aging Walk-In Unit & New York Presbyterian Hospital at East 77th Street and First Avenue.  A bus stop at East 74th Street and Second Avenue, which serves the Burden Center Luncheon Club, was eliminated, but a new stop was created at East 75th Street and Second Avenue.  This new bus stop is actually closer to the Burden Luncheon Club and only requires that seniors cross one street, as compared to two.  I’m pleased that the MTA ultimately decided not to eliminate these bus stops.  At the same time, the MTA needs to recognize the value of community input in their decision-making process.  I am currently working on legislation that would help to ensure that public input is solicited and reviewed by the MTA before changes can be made to our bus stops, routes and subway stations.

 

Rally to Save Engine Company 44 on East 75th Street:

On Saturday, April 26th I joined other elected officials and community representatives at a rally to save Engine Company 44 on East 75th Street, which Mayor Bloomberg has slated for elimination.  The rally was attended by several hundred people.  I remain extremely concerned that elimination of this fire company will endanger the health and safety of Upper East Side residents.  I will continue to fight to reverse the unwise decision to eliminate Engine Company 44.

 


Spotlight on Policy

 

Legislative Budget Highlights

 

As I indicated above, the legislative budget is not without its flaws, particularly with regard to the kinds of revenue raising measures it relies on.  That said, it does ensure that most of the devastating cuts in Governor Pataki’s package will not be necessary.  Here is a selective review of some of these restorations and the legislative revenue package:

 

Program Restorations:

 

Education/Higher Education

·         Restores $698 million in cuts to local school aid -- Governors Budget originally cut $1.2 billion

·         Restores funding for Pre-kindergarten and Class Size Reduction

·         Restores $262 million in funding for the Tuition Assistance Program (TAP)

·         Restores $11 million for the Higher Education Opportunity Program (HEOP) and 8.2 million for the SUNY Educational Opportunity Program (EOP)

 

Health Care

·         Restores $633.3 million in funding for hospitals, nursing homes, home care, and pharmacies – Governor’s Budget originally cut $640 million.

·         Restores $12 million to EPIC -- Governors Budget originally cut 38 million

·         Restores $32.3 million in funding to local health departments -- Governors Budget originally cut $45.5 million.

·         Restores $5.6 Million in funding for the AIDS Institute – Governors Budget originally cut 9.5 million

·         Prevents the closure of three psychiatric residential facilities and one facility serving the developmentally disabled

 

Seniors

·         Fully restores funding for senior centers, community services and in home services for the elderly.

·         Restores $200,000 to the Foster Grandparent Program, slated for elimination in the Governors budget.

 

New Revenue Sources

 

New State Revenue

FY 2003-2004

Temporary Income Tax Surcharge
.85% surcharge on income over $500,000, .65 % surcharge on incomes between 100,000 and 500,000 for singles, and 150,000 and 500,000 for married couples in 2003.  The surcharge is phased out after 2005.

$1.7 billion

Sales Tax
Increased by .25%

$463 million

Decreasing Corporate Depreciation Deduction and Closing other Corporate Tax Loopholes

$248 million

Collect Sales tax on Products Sold to Non Native Americans on Indian Reservations

$164 million

Video Lottery Machines at Race Tracks

$150 million

 

 

New Revenue Authorizations for New York City

 

Temporary Income Tax Surcharge
.8% surcharge on income over $500,000, .6 % surcharge on incomes between 100,000 and 500,000 for singles, and 150,000 and 500,000 for married couples in 2003.  The surcharge is phased out after 2005.

$600 million

Sales Tax
Increased by .125%

$115 million

 

Absentee Landlord Tax

$44 million

Assumption of City Dept

$170 million

 

I strongly support the underlying premises of the Legislative budget – that State government has a duty to continue to provide essential services, that New York State must act to ensure the fiscal solvency of New York City, and that tax increases are a necessary part of the solution to this year’s budget problems.  I will be working hard in the weeks ahead to ensure that this budget, which protects the future of New York State and New York City, survives the Governor’s vetoes and is fully enacted.

 

Rules and Budgetary Reform

 

Last month, I introduced fifteen pieces of groundbreaking legislation to reform the State Legislature.  The main objective behind the package is to modify the rules of the Senate in order to equalize the playing field, reform the budget process and restore democracy and true deliberation to the State Legislature.  I will be conducting a series of hearings throughout the state on these and other proposals for legislative reform in the coming months.  The first hearing will take place in Albany on Monday, June 9th at 10:00AM at the Legislative Office Building, Hearing Room A.  For more information on the hearing contact Brad Usher in my office at (212) 490-9535.

 

The sad state of affairs in Albany is often laid at the feet of the real decision-makers – the ‘three men in a room’ who year after year negotiate budgets and decide which issues will be ignored with little or no participation from other legislators who are elected every two years to make precisely these decisions.  While Governor Pataki, Majority Leader Bruno and Speaker Silver bear some responsibility for allowing this undemocratic arrangement to persist, they can rightly point out that their role in the process is largely established through rules, procedures and practices that have been institutionalized for decades.

As I discussed earlier in this report, while this years’ unprecedented budget process offered more opportunities for participation and deliberation than is typical, it still fell far short of the open process we should have for making such critical decisions about the future of our state.

 

My proposed legislation challenges some of the dysfunctional ways of doing business in Albany.  For instance, one bill, S.4685, simply requires that members of the legislature be physically present in order to vote.  Currently, if a Senator is recorded as being present in the chamber at any time during a session day, he or she can then leave and will be recorded as voting with the Majority on every piece of legislation. This practice is often referred to as ‘empty seat voting.’  Requiring members to be present would open up opportunities for a majority of members to stop bad legislation from being pushed through by the leadership. 

 

A second reform I have proposed would involve changing the process by which bills held in committee can be brought to the Senate floor.   Under current Senate Rules, minority Senators are only allowed up to ten motions to petition to bring legislation out of committee per session and no roll call vote is taken.  The proposed legislation (S.4686) would emulate the process in Congress and allow for motions to discharge at any time, remove the limit on the number of motions per session and allow members to sign onto motions at any time, making it easier to build majority support for bringing bills to the floor for debate.  A more open motion to discharge process will go a long way toward allowing legislation that has the support of a majority of the Senate, but is opposed by the leadership, to have a chance of advancing.

 

Another bill (S.4681) would eliminate allowances for members serving as officers of either house of the legislature.  Currently, State Senators who serve in leadership positions are given a stipend, also known as a “lu-lu” ranging from $9,000 to $41,500.  By repealing the “lu-lu” provision, the Senate leadership’s power over individual members would be severely decreased.  I have refused to accept my “lu-lu” for the current session.

 

Other proposed legislative reforms include requiring that all bills and resolutions be open to co-sponsorship by any member of the legislature (S.4687), prohibiting either party from limiting debate on any bill or resolution without a three-fifth’s majority (S.4688), and requiring the legislature to meet daily if it fails to pass the state budget on time (S.4682).

 

The State Senate is broken, but it can be fixed.  The key is to build a coalition of legislators on both sides of the aisle who recognize the need for change.  I am convinced that many of my colleagues – both Republicans and Democrats – do recognize that need.  My experience in Albany has convinced me that while some of my colleagues are satisfied with their limited role, and minimal responsibilities, many others recognize that they are not being given the opportunity to do the job they were elected to do.