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.
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.
