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0n Election Bay 2u1S, New Yoik Republicans won big, sweeping all seven County
Executive iaces, incluuing Westchestei anu Rocklanu, wheie Bemociats outnumbei
Republicans 2 to 1, anu winning majoi iaces in Bemociatic stiongholus such as Eiie
County anu Binghamton.

Wheie we have a chance, we can win because we aie lasei focuseu on sensible
goveinment policies that can eneigize the piivate sectoi anu cieate goou-paying
jobs foi all New Yoikeis.

At the local level acioss the state, Republican-contiolleu goveinments aie fighting
foi fiscally iesponsible, pio-giowth policies that piouuce jobs. uov. Cuomo talks the
talk -- inueeu often shouts the talk, but has neithei the economic oi business moxie
noi the political couiage to effectively walk a fiscally iesponsible pio-giowth walk.

New Yoik State neeus a seiious jobs agenua to attiact investment, piomote
economic giowth anu cieate new, high paying jobs. The pages that follow specify
actionable policy items to piomote the giowth, oppoitunity anu piogiess New Yoik
neeus to bettei compete in the nation anu the woilu.

Aftei seven yeais anu thiee Bemociatic goveinois, New Yoik continues to be the
highest taxeu, most heavily iegulateu state in Ameiica with the highest public uebt
pei capita, the highest eneigy costs, a ueteiioiating infiastiuctuie, a continuing
assault on inuiviuual economic fieeuom, the most egiegious toit laws anu the woist
state in which to stait oi to giow a business.

With oui pio-giowth jobs agenua, the New Yoik State Republican Paity will iemain
a stiong voice foi small businesses, which cieate most new jobs. We will be a foice
foi cutting taxes acioss the boaiu, incluuing cuts that pay foi themselves in aieas
like the capital gains tax anu the estate tax, anu foi cutting iegulations that big
businesses can affoiu to negotiate but which smothei small businesses, as well as
foi a well-euucateu anu tiaineu mouein woikfoice which businesses neeu to
compete anu suivive.

Anu above all, we will iemain a foice foi iestoiing anu maintaining New Yoik's
status as the Empiie State anu the biightest light on that shining city on a hill -- the
0niteu States of Ameiica.
/



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New Yoikeis aie oveitaxeu. 0ui pei capita state-local tax buiuen of 12.8% is the
highest of any state anu well above the national aveiage of 9.9%. uov. Cuomo has
iefeiieu to New Yoik as the tax capital of the 0niteu States anu stateu that high
taxes aie the numbei one ieason businesses leave NY. Be is absolutely iight.

Recent histoiy shows just how impoitant it is foi Republicans to maintain a voice in
state goveinment. In 2uu9 anu 2u1u, when Bemociats helu the uoveinois office
anu both houses of the State Legislatuie, they enacteu new taxes anu fees totaling
$14 billion as annual state spenuing also incieaseu by $14 billion. This ieckless
buugeting, coming uuiing the uepths of the woist economic ciisis since the uieat
Bepiession, cieateu fiscal uistiess anu a wet blanket on the state's economy.

In the thiee yeais since Republicans iegaineu contiol in the State Senate, piogiess
has been maue in ieveising the uamage causeu by the Bemociats one-paity iule in
Albany. Thiee consecutive on-time state buugets have been passeu with a self-
imposeu 2% spenuing cap, anu a piopeity tax cap was enacteu to iestiain the
suffocating giowth in local piopeity taxes.

By enacting tax policies that piomote economic giowth foi all New Yoikeis anu
keeping state spenuing unuei contiol, we can make New Yoik moie attiactive to
inuiviuuals, families anu businesses.

3ACEFGAHI 4AJ?@ 6?@KAHLC #HMAD? %LN &LF?K

New Yoik collects moie money pei peison fiom income tax than any othei state.
Accoiuing to 2u1u census uata, the most populai uestination foi migiating New
Yoikeis is Floiiua, a state with no peisonal income tax, anu the top 1u uestinations
foi migiatois aveiageu a peisonal income tax iate of 2.9%, which is well below New
Yoiks iate. Fiom 1992 to 2u1u, 89u,uuu taxpayeis left New Yoik State, taking
$86.S billion of aujusteu gioss income with them. At the same time, the state giew
by 1.1 million people, meaning that theie aie at least 2 million moie non-taxpayeis
O



in New Yoik now than theie weie in 1992.

New Yoik neeus ieal, substantive cuts in income tax iates acioss the boaiu to keep
jobs piouuceis anu jobs heie.

3ACEFGAHI 4AJ?@ 6@AP?@FQ %LN?K

Piopeity taxes have incieaseu ovei 7S% since 1998, moie than twice the iate of
inflation, leaving New Yoikeis with a meuian piopeity tax iate that uwaifs the
national aveiage. The situation is woise upstate, wheie iesiuents pay some of the
highest piopeity tax iates in the nation when measuieu against home values.

The 2% piopeity tax cap has woikeu to stop a skyiocketing giowth of piopeity
taxes; it shoulu be maue peimanent. Anu we can ieuuce piopeity taxes by
auuiessing Albanys auuiction to unfunueu manuates.

Enfoicing iegulatoiy manuates set by Albany iequiies ievenue, but when Albany
uoesnt pioviue funuing local goveinments must pay foi the manuates.

Last session, State Senate Republicans again passeu legislation that woulu ban
unfunueu manuates fiom being imposeu on localities. Likewise, Assembly Ninoiity
Leauei Biian N. Kolb pioposeu a similai bill that also fioze local Neuicaiu costs at
theii cuiient level anu gave the State Legislatuie the ability to ieview anu iepeal
outuateu manuates that have become a uiain on local economies. The Bemociat-leu
Assembly iefuseu to allow a vote on eithei bill.

By auuiessing unfunueu manuates, we woulu not only ieuuce the neeu foi
incieasing piopeity taxes but we woulu also allow counties to funu essential
seivices like hospitals, schools, community colleges anu paiks insteau of having to
uiveit the majoiity of theii ievenue to paying foi piogiams manuateu by Albany.
(Tuin to page 19 foi a moie in-uepth uiscussion of unfunueu manuates.)

3ACEFGAHI *EF %LN?K F>LF 6LQ RA@ %>?DK?CS?K T *LPGFLC ,LGHK LHU
2KFLF?K %LN?K

0nlike the majoiity of states anu the feueial goveinment, which tax capital gains at a
lowei iate in oiuei to encouiage investment anu spui job giowth, New Yoik tieats
capital gains as oiuinaiy income making the maximum effective tax iate on long-
teim capital gains in New Yoik the fifth highest in the woilu: only Benmaik,
Califoinia, Fiance anu Finlanu levy highei iates.
V




Bistoiy shows that, when capital gains iates aie cut, ievenue iises. Anu a ieuuction
in oui capital gains tax iate woulu incentivize businesses to set up shop heie. Yet no
such pioposal has been consiueieu in constiucting any of uov. Cuomo's
thiee buugets. Reuucing long-teim capital gain iates woulu incentivize a most
poweiful tool foi fosteiing economic giowth: entiepieneuiial activity.

Foibes Nagazine iecently nameu New Yoik State one of the woist states in which to
uie. New Yoiks compaiatively oneious ueath tax incentivizes wealthy seniois anu
small business owneis to spenu theii goluen yeais elsewheie. Repealing the tax will
keep moie New Yoikeis heie longei spenuing anu investing in New Yoik.

3ACEFGAHI :A@DLCGW? 3FLF? 3P?HUGHX *LPY <LZ? %LN [@LMZ?F
#HU?NGHX 6?@DLH?HFY &?\EG@? 3EP?@ <L]A@GFQ ;AF? RA@ %LN
#HM@?LK?K

To piotect New Yoik taxpayeis anu to make oui economy giow, state spenuing
must be kept unuei contiol. Senate anu Assembly Republicans fought haiu to
ensuie that spenuing giowth in the state buuget was kept unuei 2% the past thiee
yeais. This self-imposeu spenuing cap has saveu state taxpayeis $18.S billion in
highei taxes a savings of $S,268 pei taxpayei.

The Senate Republican plan to peimanently limit annual state spenuing giowth to
no moie than 2% anu to peimanently inuex tax biackets to inflation shoulu be
enacteu into law uuiing the 2u14 session. The plan also incluues a constitutional
amenument that iequiies a two-thiius supei majoiity vote in the Legislatuie,
iathei than a simple majoiity vote, foi any tax inciease making it fai moie uifficult
to iaise taxes.

3ACEFGAHI 2HU *A@PA@LF? -?CRL@?

New Yoik State spent almost $2 billion on business tax cieuits in 2u1S alone, neaily
uouble the amount spent in 2u1u. Too many of these cieuits aie misuiiecteu,
ineffectual oi go to highly piofitable companies that uo not neeu them. The film anu
television inuustiy, foi example, ieapeu $4uu million woith of tax cieuits this yeai,
incluuing big-name stuuios like NBC. These tax cieuits uo not stimulate job giowth
anu necessitate highei oveiall coipoiate taxes on all businesses. Senate
Republicans 2u1S tax iefoim iepoit uemonstiateu that eliminating many business
tax cieuits coulu pave the way foi cutting the oveiall coipoiate tax iate by as much
as 2S%.
5



3ACEFGAHI 2CGDGHLF? F>? )FGCGFQ 3E@M>L@X?

In 2uu9, Bemociats put the 18-a utility tax suichaige in place ovei stiong
Republicans opposition. This oneious tax, which buiuens all eneigy consumeis,
incluuing families, businesses, non-piofits anu schools, was set to expiie in 2u1S.
Bowevei, uov. Cuomo pusheu foi extenuing it thiough 2u19 in his 2u1S-14
Executive Buuget. Aftei Assembly Democrats blocked Assembly Republican efforts to
eliminate this job-killing tax, Senate Republicans weie successful in expeuiting the
ieuuction anu elimination of the tax ovei thiee yeais insteau of the uoveinois
pioposeu five yeais.

A 2u1u iepoit fiom the Public Policy Institute founu that ovei 26% of New Yoikeis
electiic bills aie state anu local tax pass-thioughs. Consiueiing New Yoikeis have
the highest eneigy costs in the nation, a tax hike on eneigy utilities is not the answei
to taxpayeis woes. We iecommenu the immeuiate elimination of the 18-a
suichaige as pait of 2u14-1S State Buuget with eneigy expense savings foi
iatepayeis statewiue anu a moie competitive New Yoik.

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New Yoik is the least business fiienuly anu the least economically fiee state in the
Nation. The iegulatoiy coue in New Yoik State contains 2S titles anu fills 8S
volumes. These buiuensome iegulations chase laige businesses out of state anu
smothei small businesses. The incieaseu cost of uoing business has a uiiect effect
on employment: the moie expensive it is to uo business, the fewei woikeis a
company will hiie. As Senatoi Pat uallivan, Beputy Republican Confeience Leauei
foi Economic Bevelopment, stateu, it's "ueath by a thousanu cuts foi many
businesses anu entiepieneuis in New Yoik."

The State Senate Republican Confeience passeu a "Cutting Reu Tape to Cieate }obs"
initiative in 2u1S, incluuing 1S bills to piomote iegulatoiy iefoim. This majoi
initiative focuseu on cuitailing the iegulations that obstiuct business anu cuitail job
giowth. uov. Cuomo anu the Assembly Bemociatic leaueiship neeu to face ieality:
absent systemic iegulatoiy iefoim, New Yoik State will continue to bleeu
businesses anu jobs.

^



3ACEFGAHI 2CGDGHLF? _LF 4?LKF 8`aaa &?XECLFGAHK_

Although the State Auministiative Pioceuuie Act establisheu a system foi ieview of
the iegulations that state agencies impose on businesses, the system has been
alaimingly ineffective, anu thousanus of aichaic, unnecessaiy anu costly iegulations
iemain in place as a hinuiance to businesses anu job cieation.

A key component of the Republicans' "Cutting Reu Tape" initiative calls upon the
uoveinoi to "iuentify at least 1,uuu iules oi iegulations to iepeal, incluuing any that
aie an impeuiment to economic giowth anu job cieation." The legislation is
moueleu on a successful effoit in the State of Floiiua that ultimately leu to moie
than S,uuu iegulations anu iules being iuentifieu foi iepeal anuoi ievision.

3ACEFGAHI %LKZ :A@M?K FA 'S?@K?? &?XECLFGAH

State Senate Republicans have pioposeu the cieation of a Beigei Commission-style
task foice with extiaoiuinaiy powei to ieview state iules, iegulations anu public
authoiities anu to make iecommenuations foi the iepeal of ones that aie
ueteimineu to be unnecessaiy. The task foice's iecommenuations woulu be binuing
unless they aie iejecteu by the Legislatuie, anu the commission woulu ieconvene
eveiy ten yeais to ieview iegulations imposeu ovei the pievious uecaue.

Republicans also pioposeu the cieation of a 19-membei task foice to ieview the
142-page State Auministiative Pioceuuie Act, which was cieateu in 197S anu has
yet to be compiehensively ievieweu.

Assembly Republicans have pioposeu the cieation of a Bivision of Regulatoiy
Review anu Economic uiowth. This Bivision of the Executive woulu be empoweieu
to stop pioposeu iegulations anu make binuing iecommenuations foi the
elimination of buiuensome iegulations, unless oveituineu by the uoveinoi oi
Legislatuie. It woulu also establish a hotline anu website foi businesses anu the
public to iepoit iegulatoiy buiuens anu excessive fines anu uo a compiehensive
stuuy measuiing the cost of iegulations to businesses thioughout New Yoik State.







=



3ACEFGAHI 2CGDGHLF? &?XECLFGAHK F>LF #DP?U?
3DLCC [EKGH?KK ,@AJF>

At piesent, small business owneis applying foi a piofessional license oi peimit can
be left waiting foi months. The Senate
Republican's "Fast-Tiack Peimit Piocessing" plan woulu tempei the buieauciatic
buiuen. The pioposal woulu iequiie goveinment tianspaiency anu accountability;
agencies woulu have to pioviue publically available appioval peiious foi peimits oi
licenses, anu if the appioval peiiou enus up taking ovei 1S4% of the aveiage
piocessing time, these agencies must make iefunus to the applicants.

Republicans have also pioposeu eliminating the excessive annual wage notification
iequiiements that Senate Bemociats imposeu in 2u1u. An inuepenuent employee
benefit fiim calculateu that with 7.S million people employeu in New Yoik State,
moie than S1 million pages of papei aie neeueu to comply with that single
iegulation eveiy yeai.

New limiteu liability companies anu paitneiships aie iequiieu to pay a $4,uuu
incoipoiation fee that mostly goes to announcing theii incoipoiation in law jouinals
anu othei publications. This fee is an unnecessaiy buiuen on small business anu
shoulu be eliminateu.

3ACEFGAHI 6@ADAF? %A@F &?RA@D %>@AEX> &?P?LC AR $?J 7A@ZbK
c3MLRRACU 4LJd

Sections 24u anu 241 of New Yoik State's Laboi Law make contiactois, employeis
anu piopeity owneis absolutely liable foi woiksite injuiies, even if the injuiy was
causeu by the negligence of a woikei. This law was fiist enacteu in 188S, anu New
Yoik is the only state in the Nation with such a law still on the books.

Since contiactois cannot uefenu themselves in couit against iesulting multi-million
uollai lawsuits, insuiance piemiums have skyiocketeu anu many caiiieis have left
New Yoik. The iesult is highei constiuction costs foi public anu piivate sectoi
piojects, fewei piojects initiateu anu fewei jobs foi New Yoik woikeis. Repealing
this antiquateu law woulu encouiage economic activity anu put moie New Yoikeis
back to woik.




8a



3ACEFGAHI 2CGDGHLF? F>? 3?CRT#HKE@LHM? %>@?K>ACU

Cuiiently, New Yoik State businesses with ovei Su employees have the option of
self-insuiance: uiiectly funuing theii own meuical costs insteau of paying piemiums
to an insuiance caiiiei. Nationally, this mouel foi health caie is utilizeu by moie
than 6u% of woikeis in laige coipoiations, 8u% of unions anu 1S% of small
business woikeis.

Self-insuiance plans aie effective because they pay meuical costs without having to
subsiuize health-caie costs of othei gioups, anu uo not incluue fiivolous seivices not
neeueu oi wanteu by employees.

Nost impoitantly, anu thanks to Congiessional Republicans, self-insuiance plans aie
exempt fiom many of 0bamacaie's ciippling taxes anu iegulations.

New Yoik State law bans companies with fewei than Su employees fiom self-
insuiing, eliminating foi those small businesses the only way to avoiu 0bamacaie's
unnecessaiy anu oneious taxes anu iegulations while still pioviuing high quality
healthcaie to theii employees.

This thiesholu shoulu be eliminateu to allow all New Yoik's businesses anu
employees to ieap the benefits of self-insuiance.

3ACEFGAHI &?DAS? [L@@G?@K FA #HR@LKF@EMFE@? #HS?KFD?HF

Thiity-two peicent of New Yoik's biiuges aie iateu ueficient, foity peicent of oui
ioaus aie iateu faii oi pooi anu eighty-thiee peicent of oui paiks anu uams aie in
uisiepaii.

To giow, New Yoik neeus an infiastiuctuie that is in a state of goou iepaii. We neeu
to invest heavily in iebuiluing New Yoik's infiastiuctuie. Regulations that impeue
that investment oi constiain the uesign anu constiuction of new infiastiuctuie
piojects shoulu be ieevaluateu anu subject to ievision oi exceptions.

88



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New Yoik has laiu off moie woikeis than any othei state since the stait of 2u1S, anu
it's not paiticulaily close. New Yoik employeis have laiu off neaily 7u,uuu woikeis.
The next closest state, Califoinia, has laiu off less than Su,uuu.

Cuiiently, oui woikfoice uevelopment piogiam, thus fai untoucheu by uov. Cuomo,
is a jumbleu mess: 28 uiffeient funuing schemes aie accountable to 11 uiffeient
agencies anu maikeu by a peivasive lack of cooiuination anu collaboiation.

If we aie to iemain competitive with othei states, the uevelopment anu
moueinization of oui state's woikfoice must be a piioiity. New Yoik neeus to
auuiess the giowing "skills gap" between the numbei of emeiging jobs with high-
skill iequiiements anu the numbei of woikeis with those skills.

3ACEFGAHI [AAKF 3)$7` *)$7 LHU *ADDEHGFQ *ACC?X?K

Public anu community colleges pioviue a moie cost-effective way to pioviue a soliu
tiaining enviionment with ielevant caieei counseling. Public anu community
colleges' meaningful ielationships with local inuustiies allow these inuustiies to
communicate theii specific neeus foi woikeis to the colleges. }ob tiaining funus
shoulu be channeleu uiiectly to community colleges to stieamline the tiaining of
new woikeis.

We must also emphasize caieei counseling in public anu community colleges. State
anu local officials have access to plenty of laboi maiket infoimation: this
infoimation must be piopeily utilizeu to make stuuents anu woikeis awaie of
available jobs, salaiies anu iequiieu skills.

As a high tax state, New Yoik anu its leaining centeis must collaboiate with inuustiy
to uevelop high tech inuustiies. We have uone it befoie: uov. ueoige Pataki
announceu the Centei of Excellence in Nanoelectionics anu Nanotechnology at
S0NY Albany in his 2uu1 State of the State Auuiess. Since then, the facility has
8!



become the woilu's foiemost innovatoi in nanotechnology instiuction anu
invention, attiacting ielateu piivate investment to the aiea with community colleges
collaboiating in ielateu woikfoice tiaining piogiams. Acting wisely, we can uo it
again utilizing New Yoik's institutions of highei euucation foi basic ieseaich anu its
compiehensive community colleges foi high tech woikfoice tiaining.

3ACEFGAHI #DP@AS?D?HF GH .GX> 3M>AAC *L@??@ *AEHK?CGHX

Woikfoice uevelopment uoes not neeu to be limiteu to college stuuents anu auults.
Theie shoulu be tiemenuous oppoitunities foi engaging stuuents with the hanus-on
oppoitunities in caieei anu technical euucation at the miuule school anu high school
levels.

Bigh school elective Caieei anu Technical Euucation (CTE) piogiams in the aieas of
family anu consumei science, technology, business anu agiicultuie piomote caieei-
ieauiness. Noie inuustiies shoulu woik with local schools to tiain the woikeis of
the futuie as appientices.

But theie exists a uisconnect between what is occuiiing at the national anu state
level foi caieei anu technical euucation anu what is happening at the local level in
school uistiicts: amiust buuget tightening CTE electives aie no longei being offeieu.
We shoulu not eliminate the veiy couises that aie ciitical to builuing a stiong
founuation of caieei ieauiness.

3ACEFGAHI 'F>?@ 3FLF?K LK L <AU?C

Republican iefoimeis in neaiby states aie tiansfoiming theii states' woikfoices.
Chiis Chiistie in New }eisey passeu a phaseu-in piogiam of $2.S billion in job
tiaining incentives foi businesses ovei the next five yeais.

The best success stoiy comes fiom Inuiana, wheie uov. Nitch Baniels cieateu the
public-piivate Inuiana Economic Bevelopment Coipoiation to cieate jobs anu
uevelop Inuiana's woikfoice. Fiom 2uuS-2uu8, 48S businesses combineu to cieate
moie than 6u,uuu new jobs anu invest $14.S billion into the Inuiana economy.
Thanks to the uoveinoi's effoits, Inuiana iecently lanueu thiee high piofile
automotive investments fiom Toyota, Bonua, anu Cummins.



8+



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%>? 6@ABC?D

New Yoikeis pay the seconu highest iate foi electiicity in the Nation, anu the seconu
highest piice foi a gallon of gas. Commeicial electiicity consumeis pay up to 4u%
above the national aveiage cost foi electiicity, anu New Yoik City iesiuents pay ovei
Su% of the national aveiage.

By utilizing New Yoik's eneigy iesouices anu passing legislation to piomote cost-
effective eneigy, we can make eneigy moie affoiuable foi citizens anu businesses
alike, without haiming the enviionment.

3ACEFGAHI 9??P #HUGLH 6AGHF 2H?@XQ *?HF?@ 'P?H

Inuian Point Eneigy Centei (IPEC) pioviues 2,uuu megawatts of eneigy anu Su% of
New Yoik City anu Westchestei County's electiicity. uov. Cuomo has pleugeu to
ueny IPEC's license ienewal anu to close the facility within the next thiee yeais.

The costs of closing IPEC aie uevastating: closuie woulu cost between $1.S billion
anu $2.2 billion fiom 2u16 to 2uSu in annual electiic expenuituies, as well as 1,1uu
jobs in Westchestei, Butchess anu 0iange Counties, anu an auuitional 26,uuu to
4u,uuu jobs as a iesult of eneigy cost hikes.

Closing IPEC woulu impose the equivalent of a tax on consumeis anu piouuceis that
woulu ieuuce economic giowth at a time when those New Yoiks can ill affoiu to uo
so.

The pioposeu alteinatives to ienewing IPEC's license aie not economically sounu oi
piactically feasible by uov. Cuomo's self-imposeu 2u1S ueauline. Replacing IPEC
with gas-fiie eneigy plants woulu cost ovei $4 billion, anu any oveihaul of the
eneigy system woulu iequiie new multi-billion uollai tiansmission lines. We cannot
affoiu the taxpayei uollais, jobs oi uecieaseu eneigy stability fiom closing IPEC.

3ACEFGAHI &?PCLM? *AKFCQ 2H?@XQ <LHULF?K JGF>
*ADDAH 3?HK? &?RA@D

Assembly Bemociats have been in the habit of passing costly eneigy manuates
unuei the guise of "iefoim." They shoulu follow the leau of the bipaitisan Senate
8/



Coalition: in 2u1S, the Coalition passeu legislation to alleviate the economic buiuen
fiom eneigy on businesses anu families anu pioviue giants anu low inteiest loans to
faims that make eneigy efficient impiovements.

3ACEFGAHI 0CCAJ .QU@LECGM :@LMFE@GHX GH $?J 7A@Z

We aie in the miust of a natuial gas ievolution that is tiansfoiming eneigy
piouuction aiounu the woilu. New Yoik State possesses this iesouice in abunuance
- the state's Naicellus Shale holus an estimateu 141 tiillion cubic feet of natuial gas.
While hyuio-fiacking has become a thiiving, multi-billion uollai inuustiy just acioss
New Yoik's boiuei in Pennsylvania, uov. Cuomo's enuless uitheiing on this issue has
left New Yoik out in the colu.

0nemployment in New Yoik's Southein tiei is stubboinly high while the natuial gas
inuustiy in Pennsylvania has leu to the cieation of neaily a quaitei of a million new
jobs.

Theie aie enviionmental benefits fiom natuial gas, as well. As the cleanest buining
fossil fuel, incieaseu natuial gas use means fewei pollutants anu less gieenhouse
gas emissions. We have alieauy seen a measuiable ueciease in oui caibon output in
the 0niteu States uue to the incieaseu use of cheap natuial gas.

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New Yoik State lost Suu,uuu manufactuiing jobs in the last two uecaues alone, anu
New Yoik manufactuieis face majoi challenges anu fieice competition both
nationally anu globally.

Bausch + Lomb is moving theii New Yoik heauquaiteis out of state anu eliminating
1u% to 1S% of theii woik foice in state. Kouak employeu ioughly 6u,uuu woikeis
in 198u in the Fingei Lakes Region. By 2uu9 that numbei was uown to 7,uuu.
Noithiop uiumman is ieuucing theii Long Islanu woikfoice fiom 1,4uu jobs to SSu
jobs fiom a woikfoice that totaleu ovei 2S,uuu Long Islanu jobs in the 198us.
ueneial Notois is ielocating its tieasuiy office fiom New Yoik City to Betioit.

8O



Noie than one million New Yoikeis still woik in manufactuiing anu piouuce $7u
billion in goous annually. But New Yoik's manufactuiing inuustiy is a shauow of its
foimei self, anu 9u% of New Yoik's manufactuieis have a negative outlook on New
Yoik as a place to uo business.

We can help New Yoik's manufactuieis meet these challenges anu cieate thousanus
of new jobs in the piocess.

3ACEFGAHI 2CGDGHLF? F>? *A@PA@LF? %LN AH <LHERLMFE@?@K

In the 2u1S State Buuget, the Legislatuie anu uoveinoi appioveu a phaseu-in
ieuuction of the coipoiate tax on manufactuieis with the iate scheuuleu to uiop
fiom 6.S% to 4.87S% ovei foui yeais. We piopose the complete elimination of this
tax -- a step that woulu pioviue $SSu million in savings foi manufactuieis.

Assembly Ninoiity Leauei Biian Kolb has intiouuceu a bill that eliminateu the
coipoiate fianchise tax anu peisonal income tax, with iespect to unincoipoiateu
shops, on manufactuieis. Assembly Bemociats killeu the bill - but seiious tax
savings foi manufactuieis woulu allow New Yoik to compete with states like
Nichigan, Nevaua, South Bakota, Washington anu Wyoming, which uo not impose
uiiect taxes on coipoiations.

3ACEFGAHI 2H?@XQ %LN &?CG?R

Eneigy costs aie a majoi concein foi many businesses, but especially foi those in
the eneigy-intensive manufactuiing sectoi. Bue to conceins about the job killing
impact of high eneigy costs, Republicans in the Legislatuie challengeu uov. Cuomo's
pioposal to extenu the 18-a eneigy suichaige (see page 7).

New Yoik's punishing eneigy tax iegime has maue oui eneigy costs the highest in
the nation. It's a buiuen oui manufactuiing companies shoulun't have to beai in face
of incieasingly tough national anu global competition.

3ACEFGAHI 3LC?K %LN &?CG?R RA@ <LHERLMFE@?@K

While the state pioviues ceitain sales tax bieaks on the eneigy useu in the
manufactuiing piocess, the cuiient law imposes cumbeisome iestiictions that make
manufactuieis less efficient. By iefoiming anu impioving cuiient law anu by
enhancing the exemption foi utility costs useu in manufactuiing, New Yoik
manufactuieis can become moie competitive.
8V



3ACEFGAHI 0UUGFGAHLC %LN &?CG?R RA@ <LHERLMFE@?@K

Tax cieuits can also be useu to bieathe life into the inuustiy. Assembly Republicans
has pioposeu thiee tax cieuits foi manufactuiing companies in 2u1S.

The Wage Tax Cieuit woulu pioviue a cieuit of 1.S% of the eligible wages to
manufactuieis who maintain theii application yeai employment levels. If the
employei incieases employment, they woulu ieceive a cieuit of 1.S% on the initial
employees' wages anu 2.S% of the uiffeience between the application yeai anu the
incieaseu amount.

The Piopeity Tax Cieuit woulu pioviue fiims with a flat 1u% piopeity tax cieuit foi
piopeity assesseu. The Nanufactuiei Relocation Tax Cieuit woulu establish tax
cieuits foi manufactuieis who have a place of business in New Yoik anu ielocate a
minimum of Su employees fiom out of state.

3ACEFGAHI eAB %@LGHGHX

Nanufactuiing companies in New Yoik pay employees 2S% moie on aveiage than
othei employeis. But a thiiu of manufactuiing companies anticipate that skilleu
woikei ietention will get moie uifficult ovei the next yeai, while only 2% anticipate
it will get easiei.

Robust job tiaining piogiams in othei states have been useu to entice majoi
manufactuiing companies like Neiceues Benz, Boeing, Cateipillai, Bonua anu Kia to
ielocate instate. New Yoik neeus to auopt cutting euge job tiaining piogiams,
especially foi its manufactuiing sectoi. (See "Woikfoice Bevelopment," above.)

85



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Access to a quality euucation is the gieat civil iights issue of oui time. Nationally, a
quaitei of stuuents fail to giauuate high school within foui yeais.

In 0pstate New Yoik's cities, the numbeis aie even woise. In Buffalo, just 11% of
thiiu to eighth giaueis aie pioficient in English anu math. In Syiacuse, just 7.S% aie
pioficient, anu in Rochestei, just S% aie pioficient.

Public school funuing levels aie impoitant, but New Yoik alieauy leaus the nation in
euucation spenuing. 0ui $71,277 aveiage annual salaiy foi public school teacheis is
the highest in the Nation, as is oui $18,618 cost-pei-pupil, but on aveiage New Yoik
schools iank only in the miuule of the pack among states with many of oui zoneu
innei city schools having giauuation iates as low as 2u%.

3ACEFGAHI 6@ADAF? *>L@F?@ 3M>AACK

0ui chaitei schools, most of which aie in high neeus innei-city uistiicts, yielu much
highei giauuation iates than iegulai public schools, uespite ieceiving less state
funuing. Each yeai, tens of thousanus of families apply to chaitei schools anu aie
uisappointeu when theii chiluien aie not pickeu in the open lotteiies iequiieu by
the chaitei school law.

Yet New Yoik maintains a cap on the numbei of peimitteu chaitei schools, anu
Bemociats in Albany, bowing to the teacheis unions, uo all they can to unueimine
these high peifoimance but geneially non-union schools.

While chaitei schools shoulu be caiefully authoiizeu anu monitoieu anu teiminateu
if they uon't live up to theii euucational anu othei impoitant commitments, they
shoulu be encouiageu with the cap on theii numbei lifteu, excess space in school
builuings maue available anu oneious iequiiements, whethei by legislation,
iegulation oi school uistiict fiat, iemoveu.

8^



3ACEFGAHI &?P?LC F>? [CLGH? 0D?HUD?HF

The Blaine Amenument bans goveinment aiu to any institution with a ieligious
affiliation. It is a ielic of nineteenth centuiy anti-immigiant anu anti-Catholic
bigotiy anu iemains an ouious moial blot on New Yoik's Constitution. Repeal of the
Blaine Amenument is not only a moial impeiative but woulu peimit some of oui
most successful schools, which have been pioven to uo twice the job foi half the
cost, to ieceive the assistance peimitteu by the Feueial Constitution's Fiist
Amenument.

3ACEFGAHI 2UEMLFGAH #HS?KFD?HF #HM?HFGS?K 0MF

The state neeus to look foi new ways to ieuuce the tax buiuen on New Yoikeis anu
at the same time impiove euucational oppoitunities. The State Senate has passeu
the Euucation Investment Incentives Act which woulu authoiize a tax cieuit up to
seventy-five peicent of eithei peisonal income tax liability oi coipoiate fianchise
tax liability foi uonations to public euucation entities, local euucation funus anu
euucational scholaiship oiganizations, oi foi ceitain expenses incuiieu by school
peisonnel oi paients who euucate theii chiluien at home.

This tax cieuit woulu encouiage uonations to schools anu scholaiship funus anu
woulu help families of stuuents euucateu thiough home school piogiams. In
auuition, it woulu peimit teacheis anu school staff to claim a cieuit foi puichase of
classioom instiuctional mateiials anu supplies to enhance the classioom expeiience
foi theii stuuents.

3ACEFGAHI %?HE@? LK L &?JL@U` HAF LH 2HFGFC?D?HF

Almost all of New Yoik's teacheis aie eligible foi tenuie anu a lifetime of job
secuiity anu benefits aftei just thiee yeais on the job. Effective teacheis ueseive
tenuie, but consistently unueipeifoiming teacheis uo not.

The legally aiuuous piocess of fiiing tenuieu teacheis iesulteu in just eight public
school teacheis being fiieu uuiing the 2uu7-u8 anu 2uu8-u9 school yeais in New
Yoik City. Neanwhile, some 6uu teacheis collecteu theii full salaiies while sitting in
"iubbei iooms," wheie they show up eveiy school uay, sometimes foi yeais, uoing
no woik anu uiawing full salaiies. In many cases, these incluue teacheis accuseu of
physically oi sexually assaulting stuuents.

8=



In 2uu6, 99% of teacheis applying foi tenuie weie appioveu. Nayoi Bloombeig has
uone a commenuable job in tightening tenuie iequiiements such that tenuie-
appioval iates uioppeu to SS% in 2u11. But only S% of these teacheis weie
outiight uenieu; the iemaining 42% will likely ieceive tenuie within the next few
yeais.

We neeu to ieinstate accountability insteau of wiiting unueipeifoiming teacheis a
blank check. The "value auueu" appioach to evaluating teacheis' job peifoimance
uses test scoies to quantify teacheis' piogiess. Insteau of iating job peifoimance on
a teachei's time in the system, a "value auueu" appioach piomotes accountability
anu pioviues an incentive foi quality teaching.

3ACEFGAHI 2CGDGHLF? c4LKF #H` :G@KF 'EFd

New Yoik's "Last In, Fiist 0ut," (LIF0) law manuates that the most iecent hiies aie
the fiist to go in teachei layoffs.

The New Teachei Pioject founu in 2u11 that 8u% of teacheis laiu off baseu on a
LIF0 senioiity system outpeifoimeu the senioi teacheis whose jobs weie spaieu.
0nly 14% of those new teacheis woulu have been laiu off baseu on job peifoimance.

Schools in low-income aieas aie likely to have many fiist-yeai teacheis, so LIF0
huits lowei-income stuuents, those who neeu a goou euucation the most,
paiticulaily haiu.

0ui euucation system shoulu iewaiu excellence in teacheis, not length of time in
seivice.
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0nfunueu manuates aie laws anu iegulations cieateu by Albany that iequiie local
goveinments (counties, school uistiicts, towns, etc.) to caiiy out ceitain actions,
without pioviuing the money necessaiy foi fulfilling those iequiiements. 0nfunueu
manuates uemanu that local goveinments change theii moues of opeiation in oiuei
to meet manuates' iequiiements anu then finu a way to pay foi the manuates'
implementations -- a Bobson's choice of eithei cutting seivices oi incieasing local
taxes.
!a




In Buchess County, foi example, 72% of all local tax ievenue is spent on unfunueu
manuates. In Putnam anu Westchestei counties the figuies aie 74% anu 8S%,
iespectively.

When the lion's shaie of eveiy tax uollai iaiseu is consumeu by unfunueu manuates,
local municipalities aie foiceu to iaise taxes, piimaiily piopeity taxes, to pay foi
theii Sheiiff's Bepaitment, ioau maintenance, public tianspoitation, community
colleges, paiks anu othei impoitant goveinment seivices. These manuates pose a
veiy seiious pioblem anu have bioau implications foi New Yoik's futuie.

3ACEFGAHI &?CG?S? *AEHFG?Kb <?UGMLGU [E@U?H

Neuicaiu is an impoitant piogiam, but the cuiient system of ielying in pait on
locally geneiateu taxes is unieasonably buiuensome to both homeowneis anu
business owneis anu iisks bankiupting local goveinments.

Local goveinments in New Yoik aie manuateu to pioviue foi 16% of total Neuicaiu
spenuing, a much highei shaie than the next highest state, Califoinia at just 2.S%.
Amiust that backuiop, it shoulu come as no suipiise that New Yoikeis aie buiueneu
with a piopeity tax iate 8u% highei than the national aveiage.

The state neeus to cut Neuicaiu costs anu ielieve local goveinments of theii
manuateu iesponsibility. The solutions aie stiaightfoiwaiu anu can stait with a
state takeovei of Neuicaiu costs that, ovei a multiyeai peiiou, woulu ieuuce the
financial stiess on local communities by a set peicentage each yeai. An alteinative
woulu be foi the state to absoib the costs in specific majoi spenuing categoiies such
as piesciiption uiugs.

This shift in Neuicaiu funuing must be paiallel with effoits at the state anu feueial
level to ieuuce oveiall Neuicaiu costs by eliminating waste, fiauu anu abuse, which
in New Yoik has been estimateu by inuepenuent souices to be as high as $1u billion
annually.

3ACEFGAHI 0UAPF F>? $730* &?MADD?HULFGAHK

In 0ctobei 2u12, the New Yoik State Association of Counties (NYSAC) ieleaseu "A
Roaumap to Nanuate Relief," which pinpointeu 14 policy aieas that coulu benefit
fiom unfunueu manuate ielief, incluuing Neuicaiu, pieschool special euucation,
chilu welfaie, pensions, anu community college piogiams. In many of these aieas,
!8



the state has continually uecieaseu its shaie of financial liability, shoulueiing
counties with an evei-laigei iesponsibility. Auoption of the NYSAC
iecommenuations woulu ielieve the unfunueu manuate buiuen on local
goveinment to pave the way foi the piopeity tax ielief that New Yoikeis so
uespeiately ueseive.