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Layoffs or givebacks may be in state's plan
Paterson said to be planning to trim work force by about 3,000

By JAMES M. ODATO, Capitol bureau
First published in print: Tuesday, December 16, 2008

ALBANY — Gov. David Paterson plans a state work force reduction of about 3,000, but will suggest that layoffs can be averted if unions agree to givebacks, according to a person informed of components of the 2009-2010 budget the governor is scheduled to present this morning.
     
The austerity spending plan, with items sure to anger many constituencies, seeks to close projected deficits this year and next that have ballooned to $15.4 billion through March 31, 2010, the governor said.

As one way to deal with some of the shortfall, Paterson will attempt to trim personnel through attrition and by forcing out a few hundred from the force of about 190,000. One source familiar with the plan said as many as 600 layoffs will be necessary for Paterson to achieve his goal, about 100 of those from merging the Department of Economic Development and the New York State Office of Science, Technology & Academic Research with Empire State Development Corp.

Paterson's first executive budget presentation will be released amid an extraordinarily sour economy. The Democrat, who rose to office last March after Eliot Spitzer's resignation, will call for labor reductions through consolidating functions and units of government, and through efficiencies. He is, for example, expected to propose closing some prisons and juvenile detention facilities.

But he will continue to urge public labor organizations to agree to concessions to avoid broad layoffs. The givebacks range from lagging a week's pay to forfeiting a negotiated raise, measures that union leaders assailed when they were brought up by Paterson a few weeks ago. The governor is expected to work to blunt the workforce reductions if the concessions are approved.

The budget was described by one administration official as an "aggressive set of cuts" that will lead to "blood on the streets."

Another source said Paterson will remove about $700 million from public education.

He will call for cost-savings by slashing the popular STAR property tax relief program. STAR is set to rise to $5.4 billion in costs to the state unless it is checked; that price tag includes the $1.4 billion STAR rebate that Senate Republicans hold dear and which the governor will seek to abolish.

Paterson would string out money promised to resolve the Campaign for Fiscal Equity lawsuit — which is supposed to ensure that school districts can offer basic education — over a longer term, perhaps eight years instead of five.

Angering State University of New York officials, the governor's budget will both increase public university tuition and book the lion's share of increases to feed the general fund, not SUNY. A SUNY official said Paterson intends to take 90 percent of this year's tuition increase for non-SUNY purposes, and 80 percent next year. The governor has planned for at least a $300 tuition increase this year and $600 next year.

Paterson also plans some borrowing to help SUNY students. The budget will set up set up a loan program for the 45,000 resident students enrolled in degree programs at the public colleges. A total of $350 million in credit would be made available be each year................http://timesunion.com/AspStories/story.asp?storyID=750904

Well if Paterson wants to abolish the Star rebate program then he had better cap the school tax at about no more than !% increase a year what goes around comes around.

I support the elimination of the STAR Tax Rebate program because of the administrative costs that are incurred.  The costs must be considerable as they include personnel costs, printing of checks, computer operations, postage, etc.  Why not let the people keep their money to begin with?

A better plan is to first cap the rate of increase in school budgets to the rate of inflation and then to apply
the revenues that are refunded to property owners through the STAR program to the school aid formula, thereby decreasing the portion of the school budget supported through property taxes.

The bottom line is that the state/county/city have got to stop raising taxes when they refuse to cut out the pork from the budget, cut back on wasteful programs, and eliminate programs that aren't working.

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CAPITOL
Budget slashes state’s payroll Proposal calls for layoffs, higher fees
The Associated Press

    Gov. David Paterson is calling New Yorkers and almost every business sector to pitch in for at least the next couple of years to end what he calls the worst economic downturn since the Great Depression.
    His playbook is a proposed 2009-10 budget of $121.1 billion, which includes layoffs, a cut in school aid, 88 new or higher fees, and the early release of 1,600 inmates.
    The proposal he released Tuesday to the Legislature would increase total spending by 1.1 percent — or $1.3 billion — and close $15.4 billion in defi cits over two years.
    The plan includes cutting school aid by 3.3 percent, or $698 million; increasing public college tuition by 14 percent; increasing some motor vehicle and fishing fees; allowing wine to be sold in grocery stores; increasing the sales tax on luxuries; and establishing new state and local sales taxes on music, movie and game downloads through services like iTunes.
    Paterson’s plan also calls for cutting 3,108 jobs from the state work force of 196,000. Attrition would account for most of the reduction, but the proposal includes 521 layoffs in 2009-10, largely through consolidating state offices.
    New York City would get whacked for more than a half-billion dollars in reduced school aid, municipal aid and school tax relief. And because the city’s fiscal year is different from the state’s, these cuts would hit current operations without time to prepare.
    “There is no sharing of the sacrifice here,” said Danny Donohue, president of the Civil Service Employees Association union, which represents state workers who will face a brief delay in pay to save the state money. “It’s working people getting stuck with the bill.”
    Paterson used history to underscore his plan, even as it was immediately criticized by lawmakers and lobbyists for nickle-and-diming the middle class.
    “In his inaugural address, President Franklin Roosevelt told a nation in the grips of the Great Depression that now is ‘the time to speak the truth, the whole truth, frankly and boldly,’” the Democratic governor said.
    “He warned the American people must not shrink from ‘honestly facing’ the dark reality of the country,” Paterson said. “Today, we, too, cannot shrink from the challenges ahead.”
    Paterson said that while annual spending growth in the last five years averaged 7.8 percent, the first budget he’s proposing would increase state operating funds by just a half of 1 percent. That would put state funds — the figure that excludes federal aid — at $79.8 billion, which he said is the lowest figure in 14 years.
    The budget is far from...............http://www.dailygazette.net/De.....amp;EntityId=Ar00102

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CAPITAL REGION
School aid cuts could wreck budgets Officials: Plan may ‘devastate’

BY MICHAEL GOOT Gazette Reporter
Some elements of Gov. David Paterson’s 2009-10 budget proposal:

    The Schenectady City School District will have an $8.5 million hole in its 2009-2010 budget if Gov. David Paterson’s proposal to slash state aid by nearly $700 million becomes reality.
    Paterson, who released his $121.1 billion budget proposal in Albany Tuesday, said shared sacrifice is essential. The governor is trying to close a $12.5 billion budget gap next year, which state officials have said could grow to $51 billion over the next four years.
gazette.com  Budget Director Laura Anglin said the state aid reductions are based on a district’s need, wealth and poverty level. “We tried to do it in the most equitable manner.”
    Paterson proposes to cut Schenectady’s aid by 3.7 percent, from $86.6 million in 2008-09 to $83.4 million in 2009-2010.
    “It’s pretty devastating for us,” said Superintendent Eric Ely.
    The district’s total 2008-09 budget was $154 million. Ely said just carrying its current programs into the next school year would require an $11 million increase in spending — about 7.6 percent — because of rising salaries, health care and retirement costs. He said everything would be on the table with regard to what to cut. “You’re talking about programs and people.”
    The district receives Contract for Excellence money as a high-needs district and under the governor’s proposal, Schenectady could only reduce about $500,000 of those expenditures. It used that money during the last two years to expand the school day and increase afterschool programs.
    “They’re going to tell you where you can’t cut,” he said. “In essence, the Contract for Excellence becomes an unfunded mandate.”
    The district has not instituted a hiring freeze.
    Among the area districts, the governor is proposing the maximum 13 percent aid cut for Shenendehowa, from $37.46 million to just over $32 million. District spokeswoman Kelly DeFeciani said the administrators are meeting today.
    “While we’re not happy about it, we recognize the state’s facing a huge fiscal crisis that’s unprecedented,” she said.
    The governor’s proposal was worse than a “worst-case scenario” that Superintendent L. Oliver Robinson had presented before the board. The 2008-09 budget is $146 million. DeFeciani said maintaining the existing program would result in a 3.3 percent tax increase. She said it was too early to speculate about any layoffs. The superintendent had already implemented spending and hiring freezes.
    The Greater Amsterdam School District is facing a $718,000 cut under the governor’s proposal. Aid would go from $29.88 million to $29.16 million.
    Amsterdam Superintendent Thomas Perillo said they would have to look at all options. Its 2008-09 budget was $53 million. “Teacher salaries go up every year, administrator salaries go up every year. Program maintenance is there. There’s a built-in cost rise everywhere and we have to fi nd a way to make this balance without being a burden to the taxpayers.”
    New York State School Boards Association spokesman David Albert said the organization would fight to see aid restored at least to flat levels.
    “It’s a pretty challenging budget for school districts. It’s essentially going to put school boards in the position of either cutting programs or raising property taxes,” he said.
    He noted that districts on average get about 44 percent of their revenue from the state.
    Paterson said the schools will be given flexibility to spend the estimated $1.3 billion they have in fund balance. Schools across the state have an estimated $1.3 billion in reserve. Anglin said more than 87 percent of districts have surplus that is more than the cut in school aid.
    Ely had an issue with spending fund balance because it is contrary to the state’s other advice.
    “The comptroller is the one who sends us threatening letters telling us not to use much of our fund balance,” he said.
BUILDINGS AND PENSIONS
    Paterson proposes to give school districts relief from state mandates, including proposing a five-year suspension of the Wicks Law requiring schools to bid separately the plumbing, heating and electrical components of construction projects that exceed a certain amount. He believes that would save about $3.25 billion.
    Also, Paterson proposes to create a new tier in the pension plan that would require employees to contribute a regular amount to their pension. Right now, teachers stop contributing to their pensions after 10 years.
    Retirement costs have increased 56 percent per year from 2001 to 2006.
    In addition, Albert said he is pleased that the governor is not freezing school building aid, but is increasing it $462 million and is letting projects go forward.
    Paterson proposes to eliminate the STAR rebate check to save about $1.7 billion. He would continue the STAR tax exemption, which reduces assessments that determine property taxes.
    “It is returning the STAR program back to its core mission — focusing on direct property tax relief to homeowners’ tax bills,” Anglin said.
    Besides the cuts in school aid, the governor proposes increase public college tuition by 14 percent. SUNY undergraduate tuition would increase $620 to $4,350 effective in the 2009-10 academic year.
    Paterson would also create a new lower-cost loan program called the New York Higher Education Loan Program. (New York Helps). It.................http://www.dailygazette.net/De.....amp;EntityId=Ar00100

The plan will devastate what????  Even if they dont do anything, Madoff is just one caught fish and the state is on the precipice ready to fall into
the ocean.....dont worry the devastation will come with or without cuts......and we will all still be clicking away and they will all still be rubbing elbows
only we will be eating off the bottom and they will have moved down a notch.......kiss my...........................................................................


BTW----last hired first fired.....guess what that means........the 'bubbles' on the payrole will continue to get bigger and fatter.......

prevailing wages my a#$..............................................................................

I say instead of consistently sending a "tax rebate" to the constituents just before election time, just charge them less on their tax bill in the first place.  It's the perfect idea...just like sending everybody a check...without all the paperwork.

That would be way too simple for them to figure out.  They would rather spend an extra gazillion $$ on postage, cost of printing checks and a letter..........Morons

Perhaps the schools could cut their budget by not teaching sex education. By serving breakfast. Ya know...those non essential things that are really the responsibility of the parents?

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Quoted from Kevin March:
I say instead of consistently sending a "tax rebate" to the constituents just before election time, just charge them less on their tax bill in the first place.  It's the perfect idea...just like sending everybody a check...without all the paperwork.

I have been opining the same thing for some time, Kevin.  The benefits realized by the New York State property owners from the STAR program are diminished by the cost of government administration, the computing resources, the printing of checks and postage to deliver the rebates.  Further, the concept that this is, in some way, a "gift" from responsible government is ludicrous; a farce perpetrated on the public by those who the people elect to represent them.  

There are two more effective and fiscally responsible methods of addressing any surplus in the school tax revenues.  Either apply the surplus to the school aid that is distributed to the districts throughout the state so that the local school property taxes can be lowered (or at least maintained without annual increases) OR reduce the state income tax level so that the money is not withheld to begin with.  Eliminating the STAR Rebate program must be coincident with the enactment of a property tax cap on school taxes.  The reduction of state income taxes will not specifically benefit property owners in New York.  It may, however, encourage people and businesses to return to New York State.

Pursuing either of the above alternatives, however, would eliminate the perception that our elected officials are
gifting something to us -- money that belonged to us to begin with.  Government does not create any product or generate any revenue.

What a useless discussion. They will bankrupt us all and our grandchildren, and drive all wealth from this place before they ever cut a red cent from anything. We are all suckers for these liberals who sit on both sides of the aisle. The republicans are simply a degree or two better and less greedy than the socialist/communists/ collectivists on the left side that want us all to be on welfare.

We mind as well hike into the woods about 10 miles and shout, and hope someone other than God and our ancestors up above hear us. Turn the lights out when you see you are the last productive citizen to leave this vampire state. By then they will be off anyway since the welfare bloodsuckers will not have paid their bill but used it to party instead.

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Pay cuts for state workers only part of the solution

    Businessman Louis Restifo's Dec. 26 response to the clueless state worker was well taken. All government workers — state, federal and local (and especially elected officials) — making over $50,000 should be willing to take a 2 to 10 percent decrease in pay to help our economy through the current crisis.
    We have to look beyond the fact that it was the greed of businesses that wanted unregulated freedom to exploit the economy to the hilt, and the greedy government officials who were corrupted into supporting the greed that brought on the crisis; and face the reality of the situation that the Bush/Cheney leadership has brought us to.
    However, cutting the wages of the people that maintain the structure of our existence is certainly not the complete answer. Curbing greed and waste in all segments of society, but particularly in the government, would in itself be the greatest aid to recovery. Every citizen should realize that he or she is the government, and being mindful of the needs of others is not the evil to destroy the American Dream of freedom and individual accomplishment and success. The evil is selfishness.

    GENE WHITNEY
    Niskayuna

http://www.dailygazette.net/De.....amp;EntityId=Ar00703

I must say Gene is tired of being a politcal pawn as so are those in any organization that is public.....it happens ALL the time in private businesses only
no one knows they just 'saved' 1/2 cent on their bananas when a company pushes the benefit costs to their workers.......it's ALL relative.....
but, the government (being us) has yet to come up with a foreseeable futuristic decision.......just short views which are controlled by polls and votes.....

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Ground rules of layoffs
State public employee unions, Civil Service department discuss obligations in case cuts are ordered to ease deficit

By RICK KARLIN, Capitol bureau
First published in print: Saturday, February 7, 2009

ALBANY — Representatives of the state's two major public employee unions have been meeting in recent weeks with the Department of Civil Service to go over ground rules for layoffs.
     
While no one in the Paterson administration has said outright that mass state layoffs are coming, the meetings suggest union and state officials are bracing for a possible wave of job cuts in coming months as the governor and lawmakers look to close next year's $13 billion budget deficit.

"There are some just-in-case reviews of what are the rules and what are the procedures," Civil Service spokesman David Ernst said of the meetings, which came in the form of training sessions for representatives of the Public Employees Federation (PEF) and Civil Service Employees Association (CSEA).

Ernst said members of the administration are hopeful Gov. David Paterson's budget plans, which include re-opening contracts, will help balance the budget.

Unions so far have rebuffed Paterson's call to forego a 3 percent raise set for April 1 or to put off a week's paycheck until they retire.

Those moves would save $301 million, Budget Division projections show.

Unions say the meetings with Civil Service are precautionary at this point.

PEF spokeswoman Darcy Wells said their representatives wanted to know how to advocate for their members in the event of layoffs.

Regardless of whether one believes mass layoffs are coming, two things are indisputable: carrying out layoffs for state workers is extremely complicated and fraught with procedural and legal pitfalls; and fewer and fewer people in the state bureaucracy have experience with layoffs since there haven't been any notable reductions in force, as layoffs are called, since the early 1990s.

"It gets fairly complicated," said CSEA spokesman Stephen Madarasz. "When you get to a layoff, it's not as simple as, "OK, you go, then OK, you go out the door."

People who have lost their jobs in the private sector may not understand that. In businesses, bosses can frequently lay off whomever they want, unless there is a union, which generally enforces seniority clauses, noted Richard Zuckerman, a Long Island employment lawyer.

But, he said, "public service is extraordinarily more complicated. And New York state is the single most complicated of all, given the number of unions and employees and contracts," he said.

While state workers have a seniority system that demands newer employees be laid off first, seniority often takes place within job categories and within state agencies.

State agencies allow workers to "bump" less senior people, but they can do so on a regional or state basis, depending on the particular agency, Madarasz said.

In addition to bumping someone in a similar job, people can also "retreat" or choose to be placed in a lower-paying job.

"It becomes like a Pachinko game," said Bill Mahoney, a retired Civil Service official, referring to the combination slot/pinball machines that are popular in Japan. Mahoney helpled oversee layoffs years ago.

"It's not simple and it's not cheap. An enormous amount of...................http://timesunion.com/AspStories/story.asp?storyID=767804