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Liz Noyer Feld, New Yorkers for Growth

May 26th, 2009

When the housing market collapsed a year ago and the banking crisis followed, many wondered whether the Democratic Party would monopolize the search for solutions in New York State politics?   One group trying to raise a dissenting voice is New Yorkers for Growth, an organization that says it's committed to restoring fiscal sanity to New York. The group supports issues, policies and candidates who/that promote small business, limited government, and fiscal responsibility.  To learn more we interviewed Liz Noyer Feld, mayor of the village of Larchmont in Westchester County, on the group's alternative vision.

 

Q: How does New Yorkers for Growth plan to accomplish its goals beyond endorsing candidates?

A: The most effective means of influencing legislators and public officers around NYS is through the media and grass roots pressure. Over the past few months, particularly during the Legislative budget process and debate over the "millionaire's tax" we have been aggressive in the press and through our website. Organizations like the Working Families Party are far better funded than we are, but that does not make their positions right -- or representative of the residents of New York. We need to be sure the press -- and the New York State legislators -- recognize that there is another strong voice in the debate over the future of New York.

 

Q: Your group has been critical of the budget just signed by the governor.  Given that the federal government is pouring a large amount of money into New York to make up for some of the deficits in the state budget, what's wrong with that budget?

A: Using one-shot, federal stimulus money to plug a multi-billion dollar deficit was the worst kind of budget gimmick and political cowardice. The New York State budget GREW billions of dollars this year, despite being one of the most indebted public entities in the United States, and during one of the worst economic downturn in decades.  Rather than make cuts, or even freeze spending (we spend more than any state in the country on Medicaid and education -- without the results to show for it), the Legislature took the worst course of action and raised taxes even higher.  

If New York is ever going to get out of the financial distress it's in, we have got to look at the spending side of the equation and reform the way we provide services.  Across the board spending cuts, pension reform, relief from unfunded mandates (which drive up local property taxes) -- among other things -- are the most immediate changes we should make to the budget that will have a lasting difference. Finally, we have got to get away from the disastrous "pay as you go model" that has crippled the MTA and other NYS agencies. We have approximately 700 public authorities that have taxing and borrowing power that has driven NYS deep into debt. Eliminating hundreds of these, and holding the others accountable, is necessary for future financial stability.

 

Q: Everyone agrees property taxes in New York are a problem, but tell me what you think the actual problem is:  Is it that the cost of local government is out of control? Is it that some communities lack a sufficient base to afford minimal services? Is it that the state has burdened localities with unfunded mandates and therefore should help reduce that burden?  How do you define the problem and what is New Yorkers for Growth's solution?

A: As the Mayor of a Westchester municipality,  every day I live with the consequences of New York State's fiscal policies.  The biggest driver of local government and school district costs are mandated (employee) pension contributions and health care costs.  NYS needs to shift from a defined benefit pension system to a defined contribution system, where every employee would be required to contribute at least 3% of the pension contribution for his/her entire tenure in government. (To give you an idea of the burden on local governments, our total salary costs this year were nearly $7 million; our mandated pension contributions were $905,000. This is unsustainable.

Unfunded mandates -- like the Wicks Law -- also add considerable cost to local construction projects.  Every mandate proposed by New York State should have a fiscal impact note attached to it before it's voted on by the Legislature. And unfunded mandates should be eliminated.  The list is too long to provide, but even NYS DEC environmental regulations are strangling local governments, who don't have/can't afford the personnel to meet the requirements.  

Tom Suozzi's Report on Local Government Efficiency makes the best case for a property tax cap, mandate relief, and local government consolidation.  Everyone is talking about "sharing services" but there are barriers in place at the NYS level that prevent this. (For example, the BOCES model for school districts should be expanded to include sharing of more administrative services.) 

Raising taxes to support the way we are providing services in New York is the worst possible solution to our budget problems. We have the highest property taxes in the country. We rank 49th out of 50th for small businesses. We spend $23 billion on education -- more than any state in the US -- yet rank 30th in some testing categories. Our Medicaid costs are twice the national average but the level of health care provided doesn't reflect that.  The special interests defending these programs, and the legislators they continue to support, have prevented the fundamental reform we need.  Going forward, we need to work together to change a broken system. 

 


Q: Tom Golisano made a very public display of his decision to move his residency to Florida.  Do you think this is an isolated case or does your group see a danger of a large exodus of wealthy citizens out of the state?


A: Clearly, Tom Golisano is in a unique economic class but NYFG shares his view of waste, mismanagement and irresponsible spending in New York State government.  Mr. Golisano's departure from New York State confirms what Mayor Bloomberg warned would happen if NY increased the personal income tax. In his objections to an increase in the NYS personal income tax, Mayor Bloomberg cited his concern that it would lead to an exodus of the very taxpayers NY relies on to provide the bulk of its revenue. I do not think Mr. Golisano is an isolated case but rather the most glaring example of a trend that has and will continue to take place in New York city, Westchester and other parts of New York. This applies to businesses as well, approximately 70% of whom file their taxes as individuals.


Q: You mentioned that one way that New Yorkers for Growth seeks to influence opinion is to be visible in the press.  How would you rate the job the press does of educating the public about issues of government spending?   How has your group been treated by the press thus far?

A: I would not give the press high marks for its coverage in the past ten or fifteen years of New York State government. Perhaps because the economy was so strong, and with international events like the war in Iraq and post 9/11 activities at home, the media attention was focused elsewhere. Last year's New York State election coverage was overshadowed by national politics. But I think over the past year the press has been informative and thorough in its coverage of the problems in New York state.  NYFG is a fairly new organization to the media, but we represent the very point of view that warned against the fiscal crisis in the State's budget and economy. There is no question the Working Families Party co-opted the agenda, the message, and the press during this year's budget discussions. They are organized and heavily funded which gave them virtually an open microphone. We need a more balanced dialogue on the policy level and in the press and we look forward to being part of that.


Q: What can the average citizen do who is unhappy with current policies in New York? What is your group doing to assist people express their views on the issues?


A: The problem with New York State government is not the Democrat or Republican party. It's the incumbency party. Over 98% of incumbents get re-elected and too often they remain in office to protect the very status quo they created. Without statutory term limits, the average citizen can speak loudest by voting for change at the polls every November. There is nothing more powerful than the right to vote. We can't change the game if we don't change the players.  As a Politcal Action Committee, NYFG will support candidates who reflect the principles of limited government and fiscal responsibility. Any citizen who shares those principles can join NYFG and help make the changes we need in New York.
Posted by admin Filed in Improving New York

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