Assembly Passes Budget Resolution
March 24, 2010
Today, the Assembly passed a fiscally responsible budget resolution for the State of New York. These are unprecedented times and the reality is that we are in a serious financial crisis. While New Yorkers across the state are making tough financial choices for their families, it would be irresponsible for us in Albany to raise taxes and spend wildly.
We in the Assembly have done our best to mitigate the cuts, originally proposed by the governor, to health care, education, and municipal aid to the City of New York. Our restorations in these areas will go a long way to ensure that teachers remain in the classroom and police and firefighters are there to respond to emergencies. I am not blind to the pain the cuts that we are making will inflict on hospitals, schools, and institutions of higher learning that serve our neighborhoods. I care about these institutions deeply, but we must accept the realities of this recession.
I am proud that the Assembly’s budget resolution does not rely on accounting tricks, holds fast to core Democratic principles, and honestly reflects our projected revenues. The people of New York do not deserve to have games played with them. Passing a budget that relies on gimmicks and unrealistically high revenue estimates would only mean that we legislators would have to come back to Albany to make more cuts later. This does not help anyone—in fact it makes it more difficult for people and institutions, both public and private, to plan responsibly.
Furthermore, the Assembly’s budget resolution does not create any new taxes. This recession has meant that New Yorkers have had to tighten their belts and new taxes would only cause more pain. Just as every family in this state has had to honestly reflect on its finances and learn to live within their means, so does Albany. I believe the Assembly’s budget resolution is a good first step in that direction.
For more information on the Assembly’s budget resolution, please visit: http://www.assembly.state.ny.us/Press/20100324/
Support Gilda’s Club on March 2nd
February 25, 2010
In these difficult economic times, it is easy to forget that there are dozens of not-for-profit organizations that could use our support. One such group is Gilda’s Club, which was recently named one of nine most vulnerable charities in the city by New York magazine.
Gilda’s Club was founded in 1995 in honor of Gilda Radner, the brilliant comedian and original cast member of Saturday Night Live who passed away from ovarian cancer in 1989. Since opening, it has offered a place where men, women and children living with cancer – and their families and friends – can join together to build social and emotional support as a supplement to medical care. They offer support groups, workshops, forums, and even a teen and children’s program, all free of charge.
I am proud to be a co-sponsor of the 1st Annual Gilda’s Club Community Gathering on Tuesday, March 2nd at 6:30pm in support of this indispensable organization. The event will be held at Gilda’s Club, 195 West Houston Street. Suggested donations start at $25. For more information on Gilda’s Club call 212-647-9700 or visit their website (www.gildasclubnyc.org).
Money in Your Pocket: The Earned Income Tax Credit
January 29, 2010
Every penny counts in today’s economy, yet many working people are overlooking an important tax credit that could put up to $5,657 in their pockets. While over 1.5 million New Yorkers claimed the Earned Income Tax Credit (EITC) last year, putting an average of $2,011.49 in the hands of struggling New Yorkers, the IRS estimates that one in four eligible taxpayers miss out.
First offered in 1975, the EITC is a refundable credit for people who work, but do not have a high income. It is the federal government’s largest benefits program for working families.
Credits are calculated based on your income and the number of children in your family. I have detailed below, but the IRS website has a table that summarizes this information.
For the 2009 filing year, the new maximum credit is $5,657 for a family with three or more children; $5,028 for a family with two children; $3,043 for a family with one child; and $457 for a family without children.
Head of household filers who earned less than $43,279 (for a family with three or more children), $40,295 (for a family with two children), $35,463 (for a family with one child), and $13,440 (for a family with no children) may be eligible. Income limits are $5,000 higher for each category of family where the taxpayer’s status is married filing jointly.
Eligible taxpayers must file federal income tax returns to receive the credit – even if they are not otherwise required to file.
There are also state and city versions of the EITC that can be claimed by eligible taxpayers, substantially increasing the total your family may get in refunds. For more information, I encourage New Yorkers to visit www.eitc.irs.gov.
So Where Does the Mayor Stand on 2nd Avenue Relief?
July 17, 2009
Looking south from corner of East 94th St. and Second Ave. Photo courtesy of The Launch Box.
Does the Mayor care about Second Avenue’s small businesses or doesn’t he?
Back in February, at a press conference to mark the beginning of construction on the MTA’s Number 7 train extension project, Mayor Bloomberg made a point of talking about the suffering of small business owners in the Second Avenue Subway construction zone:
“[The construction] is literally destroying every business on Second Avenue,” the mayor said at a press conference intended to show off a 100-ton cutting head that was to begin churning out the West Side extension for the 7 train.
“It is an economic disaster for the people who have stores and restaurants on Second Avenue and we have to find something to do for them.”
I am all too familiar with the disaster facing small business owners in the Second Avenue Subway project area. The new subway line will be great for New York in the long run, but the construction process is devastating the neighborhood. These small business owners are being asked to sacrifice on behalf of the public interest, and we owe it to them to find a way to help weather the storm.
This is why I sponsor legislation (A.3949/S.1393-Serrano) to provide targeted relief to small business owners, by giving their landlords an incentive to lower their rents. My bill gives property tax breaks to building owners in the construction zone if they renegotiate leases at lower rates for small business tenants. This bill gives Second Avenue’s businesses a a fighting chance, and in tough economic times it will help preserve the city’s tax base by working to prevent the shuttering of a once-dynamic commercial neighborhood.
The relief bill passed the Assembly last month, and for the second time in two years. But yesterday, Mayor Bloomberg instructed Republican State Senators to oppose the legislation, and without any GOP support, the measure could not come to a vote.
If the Mayor recognizes that the construction is an “economic disaster” for Second Avenue, and says that “something” should be done to aid the suffering businesses, why is he standing in the way of actual efforts to help?
Calling for a Rent Freeze
June 22, 2009
Last week, I told the New York City Rent Guidelines Board (RGB) that in a time of economic crisis, when New York’s middle class is struggling to keep its head above water, there should be no rent increases for tenants in rent-stabilized apartments.
Last year, the RGB approved astoundingly large rent increases on rent-stabilized tenants and slapped long-term tenants with an outrageous supplemental increase, as if it were singling out for special punishment those who have lived in their communities the longest.
This year, the RGB once again looks set to close its eyes to the current realities of living in New York, proposing to raise rents in the middle of the worst economic downturn since the Great Depression. What is more, the RGB is contemplating another round of supplemental increases on long-term tenants—apparently seeking to normalize this deeply unfair practice.
The simple fact is that tenants cannot afford a rent increase this year, and landlords cannot justify one. According to the RGB’s 2009 Income and Expense Survey, total landlord income grew by 6.5% from 2006 to 2007, while Net Operating Income (NOI) increased 9.3% during the same period. Adjusted for inflation, the NOI increase jumps to 17.2%. This big rise in landlords’ profit margins means that a rent increase on already-overburdened tenants would be deeply unfair. Landlords were granted a major rent increase last year—they did not need it then and they do not need any more now. The RGB ignored reality last year, and the fact that it looks set to raise rents again this year suggests that it is responding to political pressures, not to the facts. It tells us that the RGB needs to change.
I am co-sponsoring legislation with my colleague Assembly Member George Latimer (A.5282/S.5566-Duane) to bring much-needed reform to the RGB—requiring it to use fair and honest data in its deliberations; preventing landlords with serious violations from collecting rent increases; abolishing the need for lease renewals; and rebalancing the board so that mayoral appointees no longer hold all the power. The RGB must be independent and objective enough to make decisions that are truly fair for all stakeholders. It should not be beholden to this or any other mayor’s political interests.
The RGB has never before approved a rent freeze, but as I told the Board Members, if ever there was a time for a freeze, it is now.
You can read my full testimony by downloading it from the Publications section of my website.
Taxing Gym Memberships is NOT Good Public Policy
February 25, 2009
In these tough economic times we are all trying to tighten spending and increase revenue, including New York State, as we negotiate this difficult budget. Everyone agrees that sacrifices need to be made across the board and these sacrifices are glaringly evident in Governor Paterson’s 2009-10 Executive Budget. While I understand the need to create revenue, I don’t agree that one of the answers to this problem is to impose a new tax on health club memberships and services.
At the same time that the Governor proposes this tax he has more famously put forward a new tax on sugared drinks, purportedly to fight against obesity. For several months, I have been flooded with letters from constituents who are confused about this contradiction and I agree with them.
We can’t on one hand penalize people for drinking too many empty calories in a soda and on the other penalize them for trying to be healthier on the tread mill at their local sports club. It doesn’t make any sense. As the budget negotiations in Albany continue I will fight for a budget which takes our current economic troubles into account while at the same time ensuring that New Yorkers are not unfairly burdened.
I have written Governor Paterson to let him know of my opposition to the tax on gym memberships. That letter can be found in the Publications section of my website.
Money in Your Pocket: The Earned Income Tax Credit
January 28, 2009
January 30th has been proclaimed Earned Income Tax Credit Awareness Day by the U.S. Treasury Department. The EITC is a refundable credit for working people who do not earn large incomes that helps many families struggling to make ends meet. Unfortunately, millions of Americans are not aware of this credit and fail to claim it on their taxes. The EITC is available only for your federal income taxes, but New York State and the City of New York also offer similar credits for local returns. The IRS has a factsheet on their website for more information.
In the midst of this recession, every extra dollar makes a big difference. Those who make the lowest incomes are not required to file their taxes - so often they don’t and miss out on the credit. And this year, more than ever, it’s important to get the word out because increasing unemployment means that there are many families who may have never before qualified and might not know that they are eligible.
Taxpayers generally qualify if they have earnings of or below $38,646 ($41,646 if married filing jointly) for families with two or more children; $33,995 ($36,995 if married filing jointly) for families with one child; and $12,880 ($15,880 if married filing jointly) if there are no children.
Free help is available to determine eligibility, to file your taxes, and claim the credit. There are IRS-certified volunteer tax assistance locations throughout New York City. I have prepared a flyer (it is in the Publications section of my website) that details where New York City residents can go for this free assistance. You can also call 311 to get the nearest address of a free tax preparation site where you live.
The Executive Budget: Beginning the Conversation About Shared Sacrifice
December 19, 2008
Governor David Paterson presents the 2009-10 Executive Budget to the NYS Legislature.
As we all expected, the Executive Budget is the result of a painful reality of our difficult economic situation. It demonstrates what we have known for months: balancing the budget will require shared sacrifice.
I am very aware of the obligation that I share with my colleagues to ensure that necessary cuts and tax increases are done in such a way to ensures that higher education remains affordable, the commitment to funding our schools is maintained, quality health care is available to every New Yorker, and that mass transit is adequately funded.
There are many cuts that I am uncomfortable with as I am sure the Governor is. As an example, Senator Tom Duane and I wrote to Governor Paterson in November to ask that the relatively small amount of funding allocated for the Bridges to Health program be maintained, only to discover today that its funds have been frozen and its full implementation delayed for many years. This is a program to provide services to medically fragile, severely traumatized, and chronically disabled children in the foster care system. I will continue to advocate for its funding.
Despite this, I respect that the Governor made tough choices from a poor set of available options and I did not envy his task. Over 50% of our state’s spending is designated to healthcare and education, so it is impossible to avoid cuts in these areas when balancing our budget. I also know that our budget can’t be balanced on cuts, nor would I want it to be. You have probably heard that the Governor has proposed a new range of taxes and fees, some of which have gotten more attention than others (like the ’sweet tax’ proposed tax on non-diet soda drinks which Governor Paterson recently defended in an editorial posted on CNN.com).
Two of these fee increases concerned drivers; the first is a 25% increase on car registration fees and the second is a 25% increase in driver license fees. I wrote to the Governor in November to suggest these fee increases (see my blog post on this topic, Increasing Driver License, Car Registration Fees Could Raise $550 Million for Cash-Starved MTA), and I am happy to see them included in the budget. But I am disappointed that these fees are not designated for mass transit funding as I suggested, but rather to plug holes in the general operating budget. It is important to me to ensure that even as we repair the massive shortfalls in the 2009 budget we plan for mass transit funding for the future. Designating funding for mass transit from drivers’ fees can achieve both.
We are in the midst of an unprecedented global financial crisis that threatens our economic security. People are losing their jobs and their homes. Pensions are losing their value and families are making horrible choices about necessities. I have no doubt that we will pass a budget that contains significant cuts in spending and increases in fees and taxes. And I will continue to demand that this sacrifice is shared and not shouldered by the most vulnerable New Yorkers. Continuing to advocate for more progressive tax structures is one way that I will work to achieve this.
It is very important to me to hear what you think about the Executive Budget. It is by no means a final version of what we will pass in 2009. The Governor himself emphasized yesterday that it is a starting point for dialogue. The PDF of the Governor’s presentation can be found on his 2009-10 Executive Budget website.
Increasing Driver License, Car Registration Fees Could Raise $550 Million for Cash-Starved MTA
December 1, 2008
So it’s “official,” our country has been in a recession since December, 2007, according to the National Bureau of Economic Research, which announced the non-news earlier this morning.
Of course, we already knew this to be true for many months. On November 20th, MTA CEO Elliot Sander told the MTA Board, that new economic forecasts show projected deficit gaps of “$383 million for 2008, $1.441 billion for 2009, $2.394 billion for 2010, and nearly $3 billion in 2012, before prior-year carryover or gap closing actions.”
As I’ve blogged before, I am very concerned about the fiscal outlook for the MTA and how cuts to services, capital projects, system maintenance, and increased user fees will impact riders. But the negative effects spillover beyond transit users. The MTA is the lifeblood of the New York metropolitan area and when it suffers, so does the regional economy.
On September 15th, the Citizens Budget Commission (CBC) testified before the Ravitch Commission and outlined a number of practical suggestions for how to increase dedicated mass transit revenue.
Today, I wrote to Governor Paterson to urge that two CBC proposals be included in his 2009 Executive budget: Raising car registration fees and driver license fees by at least $50 annually.
When CBC President Carol Kellermann testified before the Ravitch Commission she noted that today the cost for a driver license in New York is under $6 annually. Raising annual fees for driver licenses to $50 would yield nearly $300 million. New York has the 8th lowest vehicle registration fees in the country (according to the CBC’s 2006 study South Carolina has the lowest at $12, and Maine has the highest at $435), and raising the vehicle registration fees would net an additional annual revenue stream of $250 million.
With the Ravitch Commission’s report due to be released on Friday, now is the time to be examining all the options including this one and other good ideas like reinstituting the commuter tax.
Recently, New York City Comptroller William C. Thompson, Jr. outlined a proposal to impose a weight-based transit-dedicated assessment of $100 for vehicles weighing 2,300 pounds or less, plus $.09 for every pound of curb weight over 2,300. This is an interesting idea that I believe merits further study. It differs from the CBC proposal which would see a flat fee increase for car registration fees.
In these tough financial times, I believe that it makes sense that those who choose to drive should help bear the costs of maintaining our public transportation infrastructure. These two new recurring revenue streams would constitute a good start in getting the MTA’s finances back on track.
In my letter, I suggested that during the first two to three years of this budget crisis, the MTA be given the flexibility it needs to put this revenue towards its operating deficit. But in the long term this money should be used for capital needs. After the third year I suggested that these recurring funds be dedicated 70% towards the MTA’s capital plan and 30% towards the NYS Department of Transportation Five Year Capital Plan - a fund which finances highway, tunnel, and bridge projects across the state.
I told the Governor that if these proposals were not included in the budget, I was prepared to introduce them as a separate piece of legislation. My letter to Governor Paterson can be found in the Publications area of my website.
Supporting Film Production, Post-Production Industry in NYC
September 17, 2008
Bobby Cannavale, an Emmy-award winning actor of ‘Will and Grace’ fame, talks about the importance of the production and post-production film and television industries. Also pictured are myself at left, Assembly Member Jonathan Bing (center), and Councilmember David Yassky (right). Photo by William Alatriste.
I may be the only New York elected official with my own Internet Movie Database (IMDb) profile. I was proud to work in college on a 2000 film called Five Feet High and Rising, which was later turned into a feature film launching the career of the movie’s director, my friend Peter Sollett. I was so proud when New York’s production tax credit helped enable Peter to film the anticipated October release, Nick and Norah’s Infinite Playlist in New York City. Film production located in New York City is tremendously important for our economy — but it is clear that we can and should be doing more to encourage production and post-production work.
Yesterday, I joined Councilmember David Yassky and my State legislative colleagues Assembly Members Jonathan Bing and Michael Gianaris and State Senator Martin Golden to call on the New York City Council to pass two bills introduced by Councilmember Yassky; one would expand the City’s film production tax credit and the other would create a new credit for post-production work. Our effort was reported on in today’s New York Sun.
Tax credits for the film and television industry are proven to bring jobs and help the local economy. Since New York State tripled its film production tax credit, heavy employment shooting days are up 84%. This means that more union actors have jobs. Screen Actors Guild officials say that a significant number of previously uninsured actors are now in union-sponsored healthcare programs because of the availability of these jobs in New York. According to the Mayor’s Office, the initial 5% tax credit that Councilmember Yassky achieved with his 2005 legislation has generated $600 million and over 6,000 new jobs for the City’s economy. His new production credit expansion legislation would triple this.
Equally important is post-production. As a film school graduate, I watched as many of my friends moved to Los Angeles because of a lack of jobs here in New York City. Particularly, in film and television post-production, most people don’t realize that most of the work that goes into making the movies and TV shows we love comes after the camera stops rolling — sound mixing and re-recording, foley artists, adding the track, digital effects, and more. The ripple effect of a post production tax credit encouraging that industry here would be a major boon to our local economy.
Councilmember Yassky’s post-production credit and a state-level credit (A.10689) proposed by Assemblymember Steve Englebright, which I co-sponsor, would stimulate the ripe field of post-production in New York City. New York has three major, state of the art post-production facilities, rivaling what Los Angeles has, but Los Angeles still wins 95% of all post-production jobs.
Joining us at yesterday’s press conference were actor Matt Servitto of The Sopranos, actress and writer Nancy Giles of CBS Sunday Morning and representatives from the Motion Picture Editors Guild, Screen Actors Guild, Writers Guild, Cinematography Guild, American Federation of Musicians, Theatrical Teamsters, IATSE and the Deluxe New York post-production facility.
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