The Business Council of New York State opposes the above referenced legislation that would repeal Subdivision (n) of Section 1115 of the Tax Law. Part R of the Assembly Budget Article VII bill (A.9710-B) is a job-killing proposal that would raise taxes by an estimated $25 million on New York State companies that produce and distribute promotional materials outside of New York State.

Specifically, this proposed change would impose the state’s sales and use taxes on promotional materials mailed, shipped or otherwise distributed from a point within the state, by or on behalf of in-state businesses, when sent to customers or prospective customers located outside the state. It would also apply to mailing lists in conjunction with promotional materials. This proposal would adversely affect a wide range of businesses in New York, including retailers, financial services, utilities and others.

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Responding to a March, 23, Dave Flanagan commentary in the Times Union, Mike Elmendorf the State Director for National Federation of Independent Business in New York writes.

“David Flanagan’s March 23 commentary, “Step 1: Cut the cost of business,” is timely and right on the money.

With economic development vital to our state, current policies, especially those related to energy, have made New York unattractive to business. Energy-intensive industries, such as manufacturing and high-tech, cannot afford to operate here, despite a highly capable and educated work force in need of jobs.
Electricity costs also have a major impact on numerous small businesses, including restaurants, hospitality, grocers and dry cleaners.

With the Business Council of New York State reporting that more than a quarter of customers’ monthly energy bills consists of state and local taxes, New York needs to find a better way to fund efficiency and alternative energy programs than increasing energy taxes on residential and small business customers.”

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Ben O’Donnell writes on WineSpector.com - “In an in-depth investigation, Wine Spectator has discovered that the biggest winners may be the legislators themselves, who have collected campaign contributions from the various parties, and the lobbyists paid to woo those legislators. While contribution figures are not yet available for 2010, a look at the donations during last year’s debate is revealing. Campaign finance records show that in 2009, the leading opponents of the Paterson proposal, liquor stores and their trade interest groups, donated almost $415,000 to state politicians, political action committees (PACs) and party committees. Large spirits conglomerates and wine companies also made generous contributions.”

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Donn Esmonde a columnist for the Buffalo News writes - “I have to hand it to these people. Every time I get gloomy about the state of the state, they do something so ridiculous that it cracks me up and breaks the mood, at least for a minute.

First, it was the lieutenant governor saying we need to borrow billions—to get us out of a hole caused by too much spending. Who is advising these people, Henny Youngman? Take my money. Please!

Albany, as usual, is in a lot of trouble. There is a $9 billion budget hole. It is no secret why we have a problem. The governor and state legislators, no matter who they are, always spend too much and cut too little. It is like what would happen if you handed your teenager the household checkbook. You know it will come to no good.

Which brings me to the latest kneeslapper. A few state legislators, including our own Sam Hoyt, said the state’s teachers should reject upcoming raises.”

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The Daily News reports that Attorney General and potential gubernatorial candidate Andrew Cuomo wants the state to consider banning drilling in places that drain into the city’s water supply. This opinion is part of a 128-page report that was filed over three months ago but has not been made widely available. The report says that the state’s drilling plan “should include consideration of…prohibiting such drilling in that watershed” –and “should include additional protective mitigation measures.”

Having not seen the tightly held report, it remains to be seen whether AG Cuomo’s position would mean a ban on drilling in all watersheds in NYS or just the NYC watershed. If it is the former, that would be a big problem as so much of the state lies in one watershed or another. Once Cuomo officially puts his hat in the governor’s race, he will have to articulate his position on drilling in the Marcellus Shale. Mr. Cuomo needs to understand that the economic benefits resulting from the safe development of the natural gas resources in the Marcellus Shale will transform our faltering NYS economy and bring jobs and revenues to the entire state.

Business Council member Microsoft will work with the NYS Department of Labor to distribute a total of 71,000 vouchers for online training and certification through One-Stop Career Centers across the state. Courses range from basic technology literacy to intermediate- and advanced-level technology skills training. A portion of the vouchers will be issued to New York State residents for Microsoft Certification Exams, at no cost to the recipients.

Governor Paterson said, “As our unemployed struggle through this tough job market, we need to find every resource available to keep their skills sharp, and this new partnership with Microsoft will do just that.  The skills learned through this free training program will give New Yorkers a competitive edge and possibly make a difference between a company hiring one person over another.”     

The announcement of the “Elevate America” program was made at Career Central in Albany, New York, by State Labor Commissioner Colleen C. Gardner. She was joined by John Bunn, Microsoft’s General Manager for State and Local Government; Dr. Melodie Mayberry-Stewart, NYS Chief Information Officer; Karen Carpenter-Palumbo, Commissioner of the NYS Office of Alcoholism and Substance Abuse Services; Elizabeth Berlin, Executive Deputy Commissioner of the NYS Office of Temporary and Disability Assistance; and Stephen Russell, Director of Corporate Learning and Development, Capital District Physicians’ Health Plan.

“The need for computer skills has made it vital for almost every worker to have them, even for entry-level positions,” said Commissioner Gardner. “This training will give people the skills they need to qualify for jobs and progress along a career path.”

“We believe that through a strong partnership with the State of New York, the technology training offered through Elevate America can lead to increased employment opportunity for the unemployed and underemployed, and ultimately grow New York’s economy,” said Microsoft’s John Bunn.

Read more here.

Jim Vielkind of the Times Union writes that Senate leaders maybe on step closer to borrowing to cover the state’s budget deficit.

“Senate Democratic Conference Leader John Sampson said he will meet Wednesday with Lt. Gov. Richard Ravitch, who proposed a larger fiscal reform package that would authorize up to $2 billion in borrowing to bridge the state’s current $9.2 billion deficit.

“I always have some hesitancy with respect to the borrowing,” said Sampson, D-Brooklyn. ” … That’s an issue that members of our conference are against. But once again, everything has to be on the table, and we have to look at that more in-depth. I think all things are open in this phase. We have to make very serious decisions, serious cuts, and I don’t want to limit any areas that I need to be considering.”

Sampson and other officials insisted Monday that negotiations over the state’s budget will continue, as the Senate passed a package of bills to keep state government afloat until the Legislature returns from recess on April 7.”

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Phil Fairbanks writes in the Buffalo News -”Dairy farmers from across upstate took their complaints about lack of competition and disparity in milk prices Monday to the federal government’s top antitrust prosecutor.

Christine A. Varney, the Assistant U.S. Attorney General in charge of the Antitrust Division, listened as farmers from Gasport to Saratoga warned of an industry on the verge of collapse.

“We want and need to be able to control our family farm’s destiny,” Jeremy Verratti, a dairy farmer in Gasport, said during a meeting at Genesee Community College. “We want to stay dairy farmers and we want to stay in Gasport.”

To hear Verratti and dozens of others talk, the dairy farm crisis is rooted in the growing disparity between the prices paid to farmers and the prices paid by consumers.

The blame, farmers told Varney, belongs with milk processors — the so-called middle men — and the nation’s large retailers.

“Our farmers are getting paid less and consumers are paying more,” said Sen. Charles E. Schumer, who invited Varney the meeting. “Someone’s walking away with all the money.”

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Cara Matthews reports on LoHud.com - “Senators passed legislation Monday that will keep the state operating in the likely event lawmakers and the governor don’t agree on a budget by Thursday, the start of the 2010-11 fiscal year.

After passing the bills, which appropriate $4.6 billion in spending for the next few weeks, senators left the Capitol to go on their Easter-Passover break until April 7.

Members of the Assembly Democratic majority on Friday approved the emergency-spending legislation, which ensures that essential payments, such as to Medicaid providers, will be covered through April 11 and state-employee payroll through April 14.

The Assembly, Senate and Gov. David Paterson are still far apart on a budget. The state faces a 2010-11 budget deficit of $9.2 billion, and the sides disagree on what cuts they should make, and whether to levy additional taxes or borrow more money.

Senate Finance Committee Chairman Carl Kruger, D-Brooklyn, said on-time budgets have been rare in recent years. This is a “particularly onerous” budget year because of drastic cuts, he said.”

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The Business Council strongly opposes this Assembly proposal to impose an estimated $60 million in new state-level taxes on electric power purchases in New York State, by eliminating the current sales tax exemption for services provided by energy service corporations (ESCOs). If local governments follow suit, by eliminating the local sales tax exemption, the cost of this proposal could be more than $100 million.

ESCOs are businesses that provide a wide range of energy-related services to business and residential customers, including arranging energy purchases. As such, ESCOs play an important role in New York State’s deregulated electric power market.

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