Labor Law is Choking New York’s Governments
Gov. Cuomo and legislative leaders have reportedly decided not to pursue a key reform this year — changing the Triborough Amendment, which now keeps public-employee-union contracts in effect even after they expire. This is a major blow to their promise to relieve local governments of the heavy burden of state spending mandates.
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To see why, imagine a business whose labor costs can only go up, even if the economy tanks and revenues dry up. And which must continue to give workers wage hikes even when their union contract expires. It’s a prescription for bankruptcy.
That’s precisely the situation governments across New York face thanks to the Triborough Amendment. Passed 30 years ago, this arcane, only-in-New York law threatens to bust the budgets of the state’s counties, towns, villages and school districts with “stealth” increases in labor costs that put services at risk, hurt economic competiveness and add to the burden of the highest property taxes in the nation.
Triborough’s supporters say it only keeps the status quo of previous contracts in place during negotiations. But that’s not the reality. Consider the situation now in Westchester: All eight public unions are now working without a contract — one of them in its fourth year. But wages aren’t frozen at previous contract levels. Workers still get the longevity and step increases built into the old contract — hikes that often equal or exceed “regular” salary increases.
Then there’s the matter of retroactive increases. Even though workers receive pay hikes as negotiations drag on, unions typically demand (as a condition of settlement) that the new contract include compensation for the wage hikes “lost” during the extended talks. Welcome to the New York edition of “Alice in Wonderland.” read more
Progress in Westchester Gaining National Attention
We are changing the conversation. I was elected to reform a county government where unsustainable spending was outpaced only by the crushing burden of ever increasing property taxes. My effort is capturing some attention beyond Westchester’s borders. This National Review Online story highlights the progress that is being made in making Westchester a more affordable place to live and my fight to protect the county’s interests in the ongoing battle with HUD over the housing settlement.
Tax Relief for Westchester,Two Years in a Row
The Board of Legislators and I reached a bipartisan agreement to approve a budget that, for the second year in a row, will contain no increase in county taxes and will cut spending by $90 million. The approved budget also protects the county’s AAA credit ratings by not dipping into the reserve fund to pay for operating expenses. Both accomplishments–tax relief and producing a truly balanced budget that protects our credit rating–represent a dramatic change from the tax-and-spend budgets of years past. Through a willingness to make hard choices, the direction of our county government has changed for the better. I held a press conference with the Board leadership announcing the details of the adopted budget:
I’m proud that the Board and I were able to come together on some common ground to accomplish a spending plan that protects taxpayers while preserving essential services. However, this is not a perfect budget. There are still areas of the budget where philosophical disagreements still exist. It is likely that there will be some vetoes in these specific areas.
The budget outlook going forward is still fraught with realities that have to be addressed sooner rather than later. The Administration and County Board will have to work together in a bipartisan manner to carefully assess whether the spending approved today will have to be adjusted throughout next year. The crushing burden of increasingly costly unfunded state mandates will need to be more forcefully addressed, so the taxpayers of Westchester can continue to benefit from much needed tax relief for more years to come.
But perhaps the most significant issue we will face in preparing our next budget remains the cost of our public employees. It was refreshing to hear the County Board leadership join with me in calling for our unions to work toward a new contract that will be not only beneficial to our hard working employees, but also fair to taxpayers. Everyone must do their part to get through these difficult economic times.
You elected me two years ago because I listened and understood that we could not continue to tax and spend our way to a more prosperous future. I look forward to your ongoing feedback and suggestions on how we can make Westchester better.
