A Message from Assembly Member Micah Z. Kellner
June 18, 2009
While the New York State Senate is completely dysfunctional, the Assembly is hard at work doing the people’s business. This week, we held dozens upon dozens of committee meetings and acted on well over 300 bills. Among the important legislation we have passed this week is a measure improving New York City’s school governance by making the mayor and chancellor more accountable and giving parents a greater role in their children’s education, as well as a balanced and fair tax package for the New York City budget which includes relief for freelancers and entrepreneurs, and my own bill expanding the tax credit for wheelchair-accessible taxis.
I am also proud to report that my bill to require that residential tenants who have submetered electricty (A.7867) are provided with annual notice of their right to access the Public Service Commission’s complaint process without going through any other court or arbitration has passed the Assembly. This bill is part of my 5-bill package to reform the way that submetering works for residential rental tenants in New York, which I blogged about in May.
As well, my bill to prohibit the siting of a waste transfer station within 800 feet of a public housing project (A.6829) is advancing in the Assembly and has already been passed by two of the three committees it needs to go through before it can come to the floor. This bill would prevent the City from implementing its disastrous proposal to build a marine transfer station near Asphalt Green in the northern most part of my district.
All of this work is essential to the neighborhoods that I represent, and I am very pleased with this progress. It is therefore doubly disappointing that the bickering in the Senate has prevented that chamber from doing its job, holding up issues of critical importance to our community and to all New Yorkers. All legislators should be accountable to the people–and that means putting the people’s business before personal or professional interest.
Despite the chaos in the Senate, I will leave Albany this month knowing that I’ve done my part to serve the people of New York. I sincerely hope that the Senate can stop its petty fighting over who gets what title, and get back to work on helping our state weather this unprecedented financial storm.
–Micah Z. Kellner
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.
Assembly Protects Health Care Funding, Schools in Budget Negotiations
August 22, 2008
As the nation’s economic picture worsens, New York has been faced with tough choices about how to keep our fiscal house in order. Earlier this week, the legislature went into special session to find ways to reduce public spending. After difficult negotiations, the Assembly passed a bill that would limit spending by more than $1 billion over the next year and half – reducing this year’s budget by $411 million and next year’s by $600 million. On Wednesday, the revised budget was finalized and signed by the Governor.
I am proud of the tough stance the Assembly took on property taxes. The “circuit breaker” approach what we passed represents real and immediate tax relief to working- and middle-class renters and homeowners, without damaging the fiscal stability of our schools. Maintaining funds for our schools, and holding the State to the task of living up to the principles of the Campaign for Fiscal Equity court decision were major priorities for me personally, and I was proud to work with my colleagues in holding to those principles during such a difficult time.
What’s a ‘circuit breaker’? A lot of people have been asking me that question especially since I was quoted in a New York Sun article on Tuesday, saying that I support that bill (A.11838) instead of a property tax cap. The video (put out by the New York State United Teachers - NYSUT) above gives a very short answer. The union, which represents New York State teachers, has a more complete FAQ on their website.
The Assembly fought hard to ensure that the revised budget avoided deeper cuts to core health care services, like Medicaid. But there is much about the cuts that were approved, like the reductions in premiums paid to insurers (and so ultimately to doctors), that concerns me greatly. I am also disappointed by the reduction of aid to the City University of New York (CUNY). And I was dismayed that funds for accessible polling stations were chopped.
The Governor issued this press release which gives an accounting of the cuts, which are largely across-the-board 6% spending reductions, with some important excceptions. Also, here is a link to a video of the press conference held by Governor Paterson, Assembly Speaker Silver, and other leaders of the Legislature after the budget was finalized.
Take Back Our Economy: Closing a Tax Loophole on Big Business
July 22, 2008
On July 17, over one thousand union members gathered in Manhattan, joining more than a dozen coordinated events worldwide, for a “Take Back the Economy” protest calling attention to preferential tax treatments for corporations and the mishandling and questionable ethics related to the investment of employee pension funds by private equity firms. The rally was organized by SEIU 1199, SEIU 32B-J, and the Working Families Party.
Over the last 30 years, our state’s tax code has been more and more tilted against middle-class New Yorkers and in favor of big corporations and the very wealthy. While the well-off exploit tax loopholes and benefit from low rates, working New Yorkers are forced to pay more through rising property taxes, sales taxes and user fees that many don’t consider taxes (but should), such as rising subway and bus fares.
With the economic problems our country is facing, tax cuts for the rich and for certain big businesses leave us with ever-growing budget gaps - billions of dollars’ worth - in necessary areas like school funding, health, and public transportation infrastructure.
Something has to give.
One of the ways that I am working to address this is through a bill that I introduced last month with the support of the Working Families Party. My bill would close a tax loophole that allows managers in private equity and hedge funds to avoid paying millions of dollars in taxes resulting from “carried interest.” The loophole unfairly allows these major financial engines to avoid taxes that small businesses have to pay under the Unincorporated Business tax laws of New York.
The Fiscal Policy Institute issued a report on April 15th that found that closing this loophole would generate between $165-225 million every year in revenue for New York City. The Executive Director of the Working Families Party, Dan Cantor, wrote an excellent piece for the Gotham Gazette that explains how the tax loophole works and how it is costing City taxpayers money (“Where The City Can Find $200 Million”). It is wrong that these multi-million dollar companies continue to get away with avoiding paying the same taxes as small businesses, especially when middle-class New Yorkers are struggling in a bad economy.
Another MTA Fare Hike: It Doesn’t Have to be Déjà Vu (all over again)
July 22, 2008
Just last year, I stood on the steps of City Hall with Gene Russianoff of NYPIRG’s Straphangers Campaign to protest an MTA fare hike. Now it’s happening all over again.
It came as no surprise to me when a MTA official leaked to the New York Times that once again the MTA is facing widening budget deficits. New York State has all but abandoned its fiscal responsibility to the MTA for the last decade and a half, leaving the Transit Authority’s fiscal health up to the volatility of real estate taxes, while forcing the MTA to balance shortfalls on the backs of middle and low-income straphangers through repeated fare hikes. The MTA is once again looking at another fare and toll hike, which would be only the second time in the 100 year history of the subway that fares are raised in back-to-back years.
While the MTA’s budget deficits look grim, and a fare hike seems unavoidable, it is only because New York State refuses to unshackle itself from one of the most regressive income tax structures in the country. What most New Yorkers don’t even realize is that if they make $45,000 a year they are in the same income tax bracket as New York’s elite millionaires and billionaires.
Last March the Assembly Democratic Caucus announced a plan to raise $1.5 billion in revenue for transportation through a less than 1% income tax surcharge on those New Yorkers earning over a million dollars. While Governor Paterson and the State Senate did not embrace this plan at the time, I believe the current state of the MTA’s finances demand that the Governor take a second look. If Governor Paterson has the foresight to call the legislature back to Albany to pass some form of the millionaire’s tax he would break the cycle of balancing the MTA’s budget on the backs of straphangers who can least afford to pay.
But an income tax surcharge on those earning over a million dollars is only a short term solution. If Governor Paterson has the vision and the fortitude he should champion a more progressive income tax structure as the centerpiece of his 2009 legislative agenda, such as the Working Families Party has put forward, we should go far beyond just plugging the MTA’s budget gaps and instead reinvigorate our State’s fiscal health, while giving millions of middle- and low- income New Yorkers tremendous tax savings.
