• Governor Cuomo Delivers First State of the State Message - Calls to Transform the State to a "Government of Performance, Integrity and Pride"

 

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NYSACRA News & Views Alert 01-06-11
Issue No. 144-47 January 06, 2011

 

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Governor Cuomo Delivers First State of the State Message - Calls to Transform the State to a "Government of Performance, Integrity and Pride"

THE ECONOMY & JOB CREATION

MEDICAID

EDUCATION

RIGHTSIZING & TRANSFORMING GOVERNMENT

OTHER


 

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  • Governor Cuomo Delivers First State of the State Message - Calls to Transform the State to a "Government of Performance, Integrity and Pride"
  • Yesterday afternoon, Governor Andrew Cuomo delivered his first State of the State Message to State Legislators, public officials, dignitaries and several hundred New Yorkers. Symbolic of the Governor's promise to change Albany, the State of the State was held in the Empire State Plaza Convention Center in Albany, rather than the Assembly Chamber of the State Capitol (the historic venue for the annual address). Citing other "firsts" the Governor invited Legislative Leaders to provide brief comments prior to the address, used Power Point technology along with his speech and invited the people of the State of New York to his first address.

    The speech highlighted the theme of change and renewal. The Governor introduced his vision for reform and redesign in the following areas: economic development and job creation, Medicaid, education, rightsizing & transforming government.

    It is important to mention, as segue related to government consolidation/ineffective incarceration of individuals at state operated juvenile justice facilities, the screens in the Convention Center showed a picture of Willowbrook. The Governor stated: "for those of us who are old enough to remember Willowbrook, it brings back very bad memories".

  • THE ECONOMY & JOB CREATION
  • The Governor identified several key areas to make New York State more "business friendly" through a more vibrant private sector. The cornerstone of his economic development agenda will include the creation of regional Economic Development Councils to work with state agencies to deploy resources. The Lt. Governor will lead the councils and will include representatives from the private sector, local government, state agencies and academic institutions. Higher education will be a key economic driver and funding for job creation will be competitive.

    The Governor emphasized his commitment to instituting a property tax cap; support of the tax cap was referenced by Assembly Speaker Silver and Senate Majority Leader Skelos in their earlier remarks. The Governor's property tax cap is proposed to set the cap at the rate of inflation or two percent (whichever is less) and will prohibit tax levy above the cap unless approved by the local governing board and a majority of voters during an election.

    Citing that eight states are in worse fiscal condition than New York, the Governor reiterated the need to recalibrate the budget process. To address the most immediate fiscal problem, the Governor outlined an Emergency Financial Plan to close the $10 billion current fiscal year deficit through actions such as, but not limited to, imposing a one percent freeze on public sector employee salaries (those up for renegotiation on April 1st), "holding the line on taxes" and imposing a spending cap limit on spending growth to the rate of inflation.

    He also proposes to expand the Minority & Women-Owned Business Enterprises support from 10 percent to 20 percent.

  • MEDICAID
  • The Governor cited the need to redesign the Medicaid program. He created, through Executive Order # 5, a Medicaid Redesign Team to develop recommendations for savings to be included in the proposed 2011-12 Executive Budget proposal. Jason Helgerson, former Medicaid Director in the State of Wisconsin, was appointed as the New York State Medicaid Director and will serve as the Team's Executive Director. The Team will utilize the Helgerson-Wisconsin Model to identify efficiencies and cost savings in the Medicaid program and through the involvement of stakeholders. Leaders in the health care industry including Dennis Rivera of SEIU as well as Ken Raske and Dan Sisto from the hospital associations will participate on the team in addition to Cuomo appointee and former Commissioner of OPWDD (f.k.a.OMRDD) Jim Introne. State Legislative representatives, other business and consumer advocates will be tapped to serve on the Team as well. The Team will begin work on Friday, January 7th and will submit its first report with findings and recommendations to the Governor by March 1st.

  • EDUCATION
  • As the Governor stated, New York State spends the most on education in the nation, yet ranks 34th in results. The Governor proposes to incentivize a portion of the current education aid and reward school districts for improved academic performance. Schools will also be rewarded for excellence in implementing administrative efficiencies.

  • RIGHTSIZING & TRANSFORMING GOVERNMENT
  • Announced late in 2010, a Commission to make state government more accountable and efficient has been created, through Executive Order #4 the Spending and Government Efficiency (SAGE) Commission will make proposals to reduce the number of state agencies, authorities and commissions by 20 percent. Paul Francis, former State Budget Director and Cuomo ally was appointed as Director of Agency Redesign and Efficiency and will Co-Chair the SAGE Commission. The SAGE Commission is directed to submit a rightsizing plan to the Governor by May 1st. Additionally, the Governor will submit "rightsizing" legislation to the State Legislature, "with the plan going into effect unless the Legislature acted within 30 days to reject the plan". To better regulate and monitor financial services organizations, the Governor has proposed to create the NYS Department of Financial Regulation (the result of merging the Department of Banking, the Insurance Department & the Consumer Protection Board).

    The Governor also created, through Executive Order #6 the "Mandate Relief Redesign Team" to review unfunded and underfunded mandates imposed by the State on school districts, local government and other taxing entities. The Team will be chaired by Larry Schwartz, Senior Advisor to the Governor and former Secretary to the Governor under the previous Administration. The team will also begin work on Friday, January 7th and deliver a set of recommendations to the Governor by March 1st for consideration in the 2011-12 State Budget.

  • OTHER
  • As part of his campaign theme, the Governor pledged to clean-up Albany and transform the ethical environment in government. He reaffirmed the pledge to propose ethics reforms, campaign finance reforms, create an independent redistricting commission, create independent monitoring and enforcement of ethics laws, and institute full disclosure of outside income and clients.

    Other key areas mentioned by the Governor include: revision of the Excelsior Tax Credit program to provide greater incentives for job creation, creation of the "NY Cleaner, Greener Communities Program", reorganization of the State's youth detention facilities, expand fresh fruit into urban centers, end discrimination and provide marriage equality. The Governor is also committed to the passage of reproductive rights legislation.

    The Governor highlighted throughout the State of the State Address the need to put the people of New York State above the special interests.

    To access a copy of the written State of the State Address, click here.

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