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LIA Positions

The LIA has been leading this region for over 85 years. During that time, it has acted as Long Island’s regional chamber of commerce, successfully helping to attract businesses and residents from New York City and throughout the country. The LIA has grown to become the largest business-related organization in New York, and a model of regional cooperation between business, labor, education, and government. The LIA is Long Island’s principal advocate for change and economic improvement.

In 2011, one of the LIAs top priorities has been supporting Governor Andrew Cuomo and Majority Leader Dean Skelos efforts to restore sound fiscal management to state government. Thanks to a history of spending beyond its means, New York was facing a budget deficit of $10 billion. The state’s fiscal problems were cascading down on Long Island, where property taxes are the highest in the nation and state mandates on employers and local government are a brake on job creation and business investment.

To turn things around, Governor Cuomo and Majority Leader Skelos committed to reduce spending, hold the line on taxes, provide mandate relief, improve the efficiency and accountability of state government and to support economic development. The LIA actively supported this agenda by taking a more active role in this years budget process. As you will see in the chart below, the budget agreement is a positive breakthrough on the road toward restoring fiscal health and a competitive business environment to New York State. The LIA took positions on many of these issues as discussed at previous Board meetings.

ISSUE	EXECUTIVE PROPOSAL	BUDGET AGREEMENT/COMMENTS
ECONOMIC DEVELOPMENT
Excelsior Jobs Program	Enhance the Excelsior Jobs program by extending the tax benefit period from five to 10 years; revising the Excelsior Jobs Tax Credit to be based upon the projected income tax receipts for each new job, rather than up to $5,000 per new job; enhancing the Excelsior Research & Development Tax Credit to be equal to 50% of the taxpayer’s actual Federal research and development credit; basing the Excelsior Real Property Tax Credit on the value of a property after improvements, rather than prior to investment; and streamlining the application and approval process.	Approved
Regional Economic Development Councils	Establish 10 Regional Economic Development Councils, chaired by Lieutenant Governor Robert Duffy. These councils will create a region-based approach to allocate economic development funds to speed up the creation of jobs. They will act as one-stop shop for all State-supported economic development and business assistance programs in each region, and will be supported with $130 million in funding.	The Governor proposed redirecting uncommitted capital funds that are currently under the control of the Legislature (thereby taking this pot of money from them). Instead, the Governor will use his discretionary funds and the Legislature will reallocate capital funds originally earmarked to create a data center in the Capital Region.
Recharge NY Power Program	Enhance and make permanent the current Power for Jobs Program. Recharge New York will improve upon the existing program by opening it to new participants and allocating a blend of stable, low-cost hydropower and market power for use by businesses that seek to grow and create jobs in New York.	Approved
TAXES
Millionaire’s Tax	The personal income tax surcharge on high-earners will be allowed to expire at the end of 2011 as scheduled.	Approved- Although efforts will continue in the Assembly to pass a new surcharge on real millionaires.
Sales Tax	N/A	Compromise between Governor and Legislature. Beginning April 1, 2011, the State will once again exempt its share of sales tax (4%) on clothing and shoes. This exemption will apply to items under $55 in value until April 1, 2012, when it will apply to clothing and shoes under $110.
IDA Tax	Repeal the cost recovery assessment imposed on Industrial Development Agencies in 2009 and shift the $5 million cost onto State Public Benefits Corporations.	Approved, however if this tax is imposed on LIPA it will negatively impact rates.
EDUCATION
Budget appropriation	Reduce school aid by $1.5 billion.	Compromise between Governor and Legislature. The Legislature restored $270 million of the Governor’s proposed cuts to education funding.
Cap spending growth	Cap increases in education spending at a rate of personal income growth next year – roughly 4 percent.	Approved.
New education performance and efficiency grants	Make districts more efficient and improve student performance by competitively awarding grants totaling $500 million to districts that demonstrate significant improvements in student performance and to districts that undertake long term structural changes to reduce costs and improve efficiency.	Approved.
HEALTH CARE
Global cap on Medicaid expenditures	Cap the state’s Medicaid spending at approximately $15 billion with annual increases capped at a rate tied to healthcare CPI, which is roughly 4 percent. Grant authority to the Department of Health Commissioner to make reductions during the year to enforce the cap.	Approved.
Medicaid Redesign	Incorporate the Medicaid Redesign Team’s (MRT) recommendations to reduce expenditures by $2.8 billion and redesign and restructure the Medicaid program to be more efficient and get better results for patients.	Most of the MRT recommendations were accepted. The important exception is the cap on non-economic awards in medical malpractice lawsuits.
Cap on medical malpractice awards	Cap non-economic damage awards in medical malpractice lawsuits at $250,000.	No cap was accepted, but a medical indemnity fund for neurologically injured infants was accepted.
HIGHER EDUCATION
SUNY	Deep budget cuts to all SUNY campuses plus total elimination of funding for Stony Brook Hospital. Relaxation of procurement regulations.	Partial funding restored to Stony Brook University Hospital. Procurement regulation relief approved.
GOVERNMENT REFORM
SAGE Commission	Authorize a Spending and Government Efficiency (SAGE) Commission to reduce the number of state agencies, authorities, and commissions by 20 percent.	Approved
Department of Financial Services (Department of Financial Regulation)	Merge the Banking and Insurance Departments, as well as the Consumer Protection Board, into a new Department of Financial Regulation.	The budget merges the states Banking and Insurance Departments into a new Department of Financial Services. At the request of the Legislature, the Consumer Protection Board was merged into the Department of State instead.