COMMITTEE TO SAVE NY AND BUSINESS COUNCIL JOINS BUFFALO NIAGARA PARTNERSHIP AND ELECTED OFFICIALS IN SUPPORTING STATE PENSION REFORM

Erie County Pension Costs Skyrocketed 142 Percent Since 2009, Continue to Grow

(BUFFALO, NY) February 2, 2012 — The Committee to Save New York (CSNY), a statewide coalition of citizens and taxpayers concerned about the economic future of New York State, hosted a press conference today in support of Governor Andrew Cuomo’s proposed Tier VI Pension reform plan.

“Governor Cuomo has proposed a significant plan to begin to manage the state’s out-of-control pension system cost; now it’s time for the Legislature to act on it,” said Andrew J. Rudnick, CSNY board member and President & CEO of the Buffalo Niagara Partnership. “Employers are looking to governments at all levels to show increased fiscal responsibility, and I think Albany has the chance to do its part with this plan.”

In the 2012 Executive Budget Address, Governor Cuomo outlined a Tier VI Pension Plan that would save the state $123 billion over the next thirty years. The plan would establish a new benefits system for future employees offering them the option to participate in either a traditional, but less generous, plan or a 401-k type program that is more flexible and permits for career growth. No current workers would lose their pensions, and all reforms would only impact pensions for public employees who have not been hired yet.

Heather Briccetti, CSNY board member and President & CEO of the Business Council of New York State said, “At a time when private sector employees are seeing their benefits slashed and municipalities are cutting services, New York’s businesses and taxpayers simply cannot afford to pay for these overly generous benefits programs. Without reforms, school districts and local government will be forced to raise taxes, cut services and eliminate jobs just to pay for escalating pension costs. We can avoid those problems tomorrow with sensible reforms today.”

Taxpayers in the Empire State pay on average $574 each year to help cover the cost of public pensions. New York’s public pension tax burden is the second most costly in the nation, trailing only Alaska who benefits from rich oil and minerals deposits.

Rudnick added, “Getting New York’s pension costs under control is another step toward making this state, and our region in particular, a more competitive place for business investment and job creation.”

Independent analysis by the Citizens Budget Commission shows the mandatory contributions by the State for public pensions increased 300 percent since 2004, totaling $1.5 billion last year. By 2014 the State requirement is expected to reach $2 billion- accounting for more than 10 percent of State Operations.

Democratic Mayor Byron Brown said: “Next to Medicaid, pension costs are the most burdensome on local governments. I want to thank Governor Cuomo for his leadership in putting pension reform as a central part of his plan. The new Tier VI pension system for new hires would save the city a quarter million over the next five fiscal years.”

Republican Assemblywoman Jane Corwin said: “The Tier VI proposal is a good first step in reducing pension costs for municipalities in New York State. Local governments and school districts would finally be able to get much needed relief from the State and ultimately save taxpayers money. Also, future employees will have new options and choices when selecting their retirement plan. It’s a “Win, Win.”

Democratic Assemblyman Dennis Gabryszak said: “I am pleased to stand with the Committee to Save New York and I applaud Governor Cuomo for taking the initiative to address the rising cost of state pensions. As a former town supervisor, I know firsthand the strain pension costs can be on a municipal budget. New York State needs to find ways to help save taxpayers money. I support exploring options for a new benefits system for future public employees.”

Republican Assemblyman Ray Walter said: “If we’re going to turn New York’s economy around, we need to deal with the reality that our pension costs are unsustainable. In order to protect not only the benefits due to current public employees, but the litany of vital programs and services we rely on, we need to reduce costs moving forward. That’s why I support Governor Cuomo’s Tier VI pension plan and am committed to working with the Committee to Save New York to provide real reforms that will lead to tax relief for Western New York’s families and businesses.”

Democratic Assemblyman Robin Schimminger said: “Pension costs, as one of the fastest growing expenses for both the State and local governments, have become unsustainable. Enacting this legislation would be a giant step forward in fulfilling the New York State Legislature’s commitment to providing significant relief to local municipalities, school districts, and ultimately the taxpayers of New York. Today’s difficult economic climate requires that changes to the retirement system must be made now in order to ensure the well-being of our current and future retirees.”

The Committee to Save New York was founded in 2011, at a time when the State was facing a $10 billion deficit, businesses were fleeing and unemployment was growing. CSNY is dedicated to restoring fiscal sanity to state government in order to ensure that future generations of New Yorkers will have the opportunity to get a great education, find a good job or start a new business and prosper.
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James Odato of the Times Union writes:

“Assembly Democrats are close to unveiling a plan to raise the minimum wage in New York after talks with an alliance of labor and political groups pushing for a $9.50-per-hour rate.

Rob Lillpopp, a spokesman for the Business Council of New York State, expects a presentation this week. The council is wary of a hike, and questions the logic of raising minimum wages during a weak economy. “The way to improve the state’s economy is to increase the number of jobs,” Lillpopp said.

A coalition that includes the Working Families Party and some labor unions, particularly New York City-based SEIU 1199 and 32BJ, as well as the progressive advocacy group Citizen Action is pushing the increase. Assembly Speaker Sheldon Silver, D-Manhattan, began pushing for an increase in his first speech of the year, made before Gov. Andrew Cuomo’s State of the State address earlier this month.”

**Update: The Assembly has introduced a bill to increase the minimum wage to $8.50/hour (A.9148).

To read more click here.

Matt Glynn of the Buffalo News reports - “Moog Inc., which made a change at the top last month, let shareholders know Wednesday that it has every expectation of maintaining its growth of the last couple of years.

The motion-control equipment maker’s annual meeting was the first since John R. Scannell took over the CEO’s duties from Robert T. Brady on Dec. 1.

Scannell, 48, has moved into the CEO’s role at an upbeat time for Moog. The Elma-based company has shaken off the 2009 drop-off in results that disrupted its growth curve, posting record sales of $2.3 billion and record profits of $136 million in its 2011 fiscal year, which ended Oct. 1.

For fiscal 2012, the company forecasts an 8 percent increase in sales, to about $2.52 billion, and a 12 percent increase in net earnings, to $152 million.”

To read more click here.

jimmy Vielkind writes in the Times Union - “A clause in the ethics restructuring bill signed into law this past summer loosened Spitzer-era rules that the last generation of ethics watchdogs used to crack down on catered legislative receptions. After a three-year hiatus, they’re being scheduled again.

The Business Council has already mailed invitations to a Jan. 23 event at the Crowne Plaza. The organization’s acting president, Heather Briccetti, said legislators weren’t invited to the event in recent years, where they could rub elbows with the CEOs and corporate leaders on the council board.

The 2007 ethics bill reduced a $75 limit on entertainment legislators could accept and replaced it with a “nominal value” standard. In 2009, the Commission on Public Integrity said pigs-in-a-blanket and spanakopita passed at receptions broke the ban, and fined several groups. Fearing a $5,000 penalty, organizations pulled back.

But when the ethics law was revamped earlier this year, an exception to the ban for “well-attended” events was simplified and clarified to mean any event at which more than 25 non-officials were invited “in good faith” and which is related to their official duties.

“We definitely fall into that category,” Briccetti said. The reception will offer “the usual – cheese and crackers, beverages including wine and beer” and is “a nice kickoff for session; it’s nice to have the tradition back,” she said.

To read more click here.

For information about the Business Council’s 2012 Legislators’ Reception click here.

To read a story about the new ethic law in New York entitled “Ethics and Lobbying Reform In State Government (Again)” by Karl J. Sleight and Joan P. Sullivan that was originally published in the December 6, 2011 issue of New York law Journal click here.

Less than five years after the passage of a comprehensive law touted as the solution to restore public trust and confidence in government, lawmakers returned to square one in an attempt to re-make the image of a state government mired in seemingly unending scandal. On Aug. 15, 2011, Governor Andrew Cuomo signed the Public Integrity Reform Act (PIRA) of 2011 into law. PIRA overhauled the last “sweeping reform,” the Public Employee Ethics Reform Act (PEERA) of 2007, leaving very few of the signature aspects of that prior act in place. These successive reform measures, however, are creating a difficult working environment for state government officials and lobbyists who regularly find the need for clear guidance in an area already filled with more than its shareof gray.

The Business Council will be holding its 2012 Annual Legislators’ Reception on Jan. 23, 2012, at the Crowne Plaza Albany. We will be inviting New York State government officials, as well as the members of the New York State Legislature. This is an opportune time to network with government officials and our Board of Directors, as well as other Business Council members from around the state. To learn more about sponsorship opportunities contact Ellen Muir Clickner at 800.358.1202 or email her at ellen.clickner@bcnys.org.

A discussion to address regulatory roadblocks and an extended general session on shale gas development will take center stage at The Business Council of New York State, Inc.’s 2011 Annual Industry-Environment Conference.

The event will be held Oct.26-28 at the Holiday Inn Saratoga Springs.

The conference will feature The Heritage Foundation’s Nicolas Loris and Pradeep Haldar of the University at Albany, who will discuss solar energy development and incentives. Participants will hear remarks from Joseph Martens, Commissioner of the New York State Department of Environmental Conservation and Francis Murray, President and CEO of the New York State Energy Research and Development Authority.

Engineers attending the conference may earn up to six New York State Education Department continuing education professional engineering credits. One and a half credits are awarded for each 90-minute session. A certificate is sent at the completion of the conference.

For information on registration and sponsorship opportunities click here.

An article in the Democrat and Chronicle states:

“Rochester-area business executives are among those across the state who have been elected to leadership roles with the Business Council of New York for 2012, including two officers.

Paul Speranza, vice chairman and general counsel for Wegmans Food Markets Inc., was re-elected board treasurer and vice chairman for finance.

David Klein, CEO of Excellus BlueCross BlueShield, was re-elected secretary.

B. Reuben Auspitz, vice chairman and executive vice president of Manning & Napier Advisors Inc. in Perinton, was elected to the board.

The elections were held during the council’s annual meeting in Bolton Landing, Warren County.

The council is a lobbying organization for business interests.”

For the original release click here.

Jimmy Vielkind of the Times Union writes:

“What we want is a state government that is a partner, not an inhibitor,” Lt. Gov. Bob Duffy said Wednesday. “Get behind us. Help us.”

There were about 250 people in the room at The Sagamore, including Con Edison’s CEO and top officials from IBM, MetLife and Wegmans, listening to Duffy between bites of roast chicken and risotto.

They applauded Duffy, and in interviews with the Times Union, pointed to “warmth” in relations between the administration and the Business Council, whose annual conference occasioned the speech. Indeed, Cuomo has enjoyed a close relationship with the business council and its members, business leaders said, especially compared to the past three administrations and in contrast to some of the more liberal elements in the Democratic Party.

The council took the rare step of endorsing Cuomo’s election last year — its conference then grabbed major headlines when Cuomo’s Republican opponent, Carl Paladino, got into a screaming match with a New York Post reporter. Ken Adams steered the council to contribute to the Committee to Save New York, a pro-Cuomo lobbying coalition that spent millions running ads supporting his fiscal agenda.

Particularly, the council and the committee supported Cuomo’s budget decision to let a surcharge on New Yorkers making over $200,000 expire, and a bill to cap local property tax increases at 2 percent. Cuomo tapped Adams to head the Empire State Development Corp. Last month, the Business Council planned a fundraising reception for Cuomo’s campaign committee.

Why the attraction? Business leaders point to Cuomo’s fiscal ideology, including the above points. But more than that, they say Cuomo has brought a steady hand to state government, particularly in pushing his agenda through the Legislature.

“Functional government is such a vast improvement, that even as bad as things are at the national level, our business community feels more confident than it did two years ago, and a lot of that is due to the incredible leadership abilities of this governor,” said Business Council acting President Heather Briccetti.”

Click here to read the entire article.

Please click here to see a video of Heather Briccetti, acting-president and CEO of The Business Council, on YNN’s Capital Tonight.

Adam Sichko of the Capital District Business Review, a subscription-based publication, writes:

“The new chairman of The Business Council of New York State Inc. .The Business Council of New York State Inc. Latest from The Business Journals Business Council chairman plans to step up lobby’s political activitySmall biz sizes up health exchange optionsNational Fuel CEO to chair NY Biz Council Follow this company .said he will lead a statewide fund-raising push so the lobby can step up its political activity.

“This is the single best opportunity we’ve had in the last 15 or 20 years,” said David Smith, elected as chair of the lobby earlier this week. Smith is chairman and CEO of National Fuel Gas Co. (NYSE: NFG), based in Williamsville.

Smith, who will serve an initial one-year term, declined to say what amount he wants to raise for the lobby’s political fund. The key, he said, will be persuading executives to contribute to races in other corners of the state.”

To read more click here.