HERMAN D. FARRELL, JR.
Assemblymember 71st District

2541-55 Adam Clayton Powell, Jr. Blvd.
New York, NY 10039
TEL (212) 234-1430
FAX (212) 234-1868

On Friday, March 30 in my capacity as Chair of the Ways and Means Committee I debated and helped pass a package of budget bills that finalized a $132.6 billion spending plan for Fiscal Year 2012-13, which began Sunday, April 1. These budget bills, which are the product of an accord the Assembly, Senate and Governor Cuomo had reached earlier in the week, completed the budget a few days early for the first time since 1983 and on time for the second year in a row. Though details were agreed to only recently, work on the budget actually began in December.

During the final days of 2011, the Legislature returned to Albany to pass a major overhaul of the State tax code. This tax reform legislation allowed for a tax cut on middle-class families while at the same time raising taxes on wealthy New Yorkers, effectively extending the "millionaire's tax" which would have expired on December 31. Because the Assembly, Senate and Governor had to agree on revenue forecasts as part of this tax reform bill, this meant that we had reached consensus on revenue available for the Fiscal Year 2012-13 budget, a major part of the overall plan. Not only had we helped close an anticipated deficit for the coming year, it allowed us to keep our promise that we made last year to increase spending on health and education programs.

On Monday, March 12, after a period of debate, both the Assembly and Senate passed their own "one-house" budget bills. These "one-house bills," while similar, were not identical which they must be to be sent to Governor Cuomo for his signature. To reconcile the differences in their respective bills, on Tuesday, March 13, members of the Assembly and Senate met in the first of a series of General Conference Committee meetings. Ongoing negotiations during the following weeks led to an agreement that the Assembly, Senate and Governor Cuomo could all support. The Governor had also asked for other items that he wanted to be passed alongside the budget itself.

On March 15, during an all-night session, the Legislature passed a series of bills which may effect historic reform relating to many key responsibilities of government. Likely to have the most longstanding impact is legislation that is intended to change the process of legislative redistricting, which follows the US Census by drawing new State legislative district lines. The intention is to equalize the population in each district. But changing the process can only be done through a Constitutional amendment that must pass the Legislature again during our next session, and then go before the public as a referendum. If this referendum passes, the State Constitution will be amended to relieve the Legislature of the responsibility of drawing new district lines.

Legislation passed by the Assembly included a second Constitutional amendment, this one allowing for the creation of up to seven casino-type gaming facilities Statewide. A bill that will specify where these casinos may be sited should be introduced and debated in the near future. This Constitutional amendment will also have to be passed by two successive Legislatures before it goes before the public. On March 15 we also passed pension reform which will affect future State employees but by law cannot affect anyone now working in State government.

We also passed a historic expansion of the State's DNA Databank to include all felonies and most misdemeanors. Persons convicted of minor marijuana possession charges will not have to submit their DNA to the Databank. My colleague Assemblyman Joseph Lentol and others fought for and won provisions in the new law that guarantee defense attorneys will have access to DNA evidence following a court order. It also allows defendants who have been convicted of a crime to petition the courts for access to evidence held by prosecutors, and if they are not capable of paying to obtain this evidence, the State will pick up the expense for them.

Previously, there was no provision of State law that laid down these requirements. The new law also allows judges to order evidence be tested against the DNA Databank. Broadening the pool of DNA data available presents the opportunity to close open cases and to prevent offenders from committing new crimes. At the same time, opportunities to exonerate the wrongfully convicted will be made stronger.

Overall support for education programs in the 2012-13 budget totals $20.3 billion, including $805 million in new funding that was promised last year, $75 million of which is for New York City schools. This 3.9 percent increase in funding for public schools is matched by a similar increase in funding for health care programs.

As we have discussed in the past, these and other programs were cut as State government dealt with funding shortfalls caused by the Wall Street crash of 2007 and the economic decline that followed. This new budget, which recognizes the ongoing weakness in the economy, is structured in such a way as to provide for the most vital needs of the State and its' people while increasing only 1.9 percent. I am happy to announce that we were able to do away with the State share of sales tax on clothing purchases under $110, easing the cost of living for families even more.

Because under the State Fiscal Year 2012-13 budget the same amount of money is to be spent in a smarter way, proposed cuts were not actually made in the final budget. These restorations include $239 million in expense-based school aid, more funding for SUNY and CUNY including campus child care centers, and a restoration of $30.6 million to the Elderly Pharmaceutical Insurance Coverage (EPIC) program. The budget fully funds increases to the public assistance grant, which is scheduled to rise by 5 percent this summer and again by 5 percent in the fall.

An appropriation of $6.5 billion will fund unemployment insurance benefits, and the budget also finalizes plans for the State to shoulder increased Medicaid costs, freeing localities from this cost and saving local governments an estimated $1.2 billion over the next five years. Also included is $34.3 million to maintain the right of spousal refusal, meaning that seniors whose ailing spouses require long-term care will not be at risk of losing vital assets.

Businesses owned by women and minorities who wish to contract with the State will find a helping hand has been extended, as funds have been allocated to support these companies and track the business they are doing with the State, data that will be useful in the future. Capital projects, including road and bridge maintenance, are funded at aggressive levels, as is State support for the Metropolitan Transportation Authority. Under the 2012-13 State budget, $4 billion has been provided to support the MTA, a 5 percent increase from the previous year.

The Neighborhood Preservation Program, a program I started in the 1970s which the Governor had proposed eliminating this year, has been restored to the tune of more than $10 million, plus an additional $4.2 million for the Rural Preservation Program. Last year, these programs were funded at $8.48 million and $3.54 million respectively. This, I am sure, will be welcome news to our friends and neighbors who are fighting to save their homes. Other housing rehabilitation and foreclosure prevention programs were also saved, affirming the State's commitment to preserving affordable housing in Northern Manhattan and other communities.

Assemblyman Farrell on Friday debated and helped pass a package of budget bills that flesh out a $132.6 billion spending plan for Fiscal Year 2012-13, which began Sunday, April 1. These budget bills, which are a product of an accord the Assembly, Senate and Governor Cuomo reached earlier in the week, completed the budget process early for the first time since 1983.

Assemblyman Farrell debates budget legislation on Friday, March 30, 2012.

"After several years of cuts, I am happy to say that we will at last be able to undo some of the damage caused by the Great Recession," Assemblyman Farrell said. "I commend Governor Cuomo for keeping the promise he made last year and releasing $805 million to our schools, including $75 million that has been set aside for New York City schools."

Overall support for education programs in the 2012-13 budget total $20.3 billion. This 3.9 percent increase in funding for public schools is matched by a similar increase in funding for health care programs. These and other State programs were cut as State government dealt with funding shortfalls forced by the Wall Street crash of 2007 and the economic decline that followed.

This budget, which recognizes ongoing weakness in the economy, is structured in such a way as to provide for the most vital needs of the State and its' people while staying below the self-imposed spending cap of 2 percent called for by Governor Cuomo. Because the same amount of money is to be spent in a smarter way, proposed cuts were not actually made in the final budget.

These restorations include $239 million in expense-based school aid, more funding for SUNY and CUNY including campus child care centers, and a restoration of $30.6 million to the Elderly Pharmaceutical Insurance Coverage (EPIC) program. The budget fully funds increases to the public assistance grant, which is scheduled to rise by 5 percent this summer and again in the fall.

An appropriation of $6.5 billion will fund unemployment insurance benefits, and the budget also finalizes plans for the State to shoulder increased Medicaid costs, freeing localities from this cost and saving local governments an estimated $1.2 billion over the next five years. Also included is $34.3 million to maintain the right of spousal refusal, meaning that seniors whose ailing spouses require long-term care will not be at risk of losing vital assets.

Businesses owned by women and minorities who wish to contract with the State will find a helping hand has been extended, as funds have been allocated to support these companies. Capital projects, including road and bridge maintenance, are funded at aggressive levels, as is State support for the Metropolitan Transportation Authority. Under the 2012-13 State budget, $4 billion has been provided to support the MTA, a 5 percent increase from the previous year.

The Neighborhood Preservation Program, which the Governor had proposed eliminating this year, has been restored to the tune of $10 million. Other housing rehabilitation and foreclosure prevention programs were similarly saved, affirming the State's commitment to preserving the stock of affordable housing in Northern Manhattan and other communities.

Budget bills passed by the Assembly on Friday include A.9050D, which makes an appropriation of $34.7 billion to provide for the operations of State government agencies (passed 124-1); A.9054D, which makes an appropriation of $52.1 billion to fund capital projects by State agencies (passed 132-5); A9053E, which provides aid for localities including education funding (passed 134-2); A.9051A, which makes an appropriation of $2.7 billion to fund the State judicial system (passed 121-3); A.9056D, which enacts and implements the health and mental hygiene components of the budget (passed 128-4); A.9057D, which enacts and implements the education, labor and family assistance components of the budget (passed 119-8); and A.9059D, which implements the fiscal plan for Fiscal Year 2012-13 (passed 115-14).

HERMAN D. FARRELL, JR.
Assemblymember 71st District

2541-55 Adam Clayton Powell, Jr. Blvd.
New York, NY 10039
TEL (212) 234-1430
FAX (212) 234-1868

Wednesday night and Thursday morning's work included a second Constitutional amendment, this one allowing for the creation of up to seven casino-type gaming facilities Statewide. A bill that will specify where these casinos may be sited should be introduced and debated in the near future. This Constitutional amendment will also have to be passed by two successive Legislatures before it goes before the public.

We also passed a new and less generous pension package, called Tier VI, which will affect State employees who have yet to be hired but by law cannot affect anyone who is now working in State government. New York City and other municipalities have complained for years that the cost of paying the pensions and health benefits of retired employees was overly burdensome and ate up dollars that could be spent on public safety, education, health care and other vital needs. The Legislature worked with Governor Cuomo to craft a deal intended to save money in the future.

Our negotiations with the Governor allowed us to reach a deal that may do less harm to middle-class families who rely on income from a State job. Non-union employees who earn more than $75,000 per year will have the option of enrolling in a 401(k)-style defined contribution plan, as some SUNY and CUNY employees have done for years. Those who choose a traditional pension will be fully vested after 10 years, not the 12 that the Governor had asked for. Though they will have to contribute more toward their pensions than current employees, new employees will be asked to contribute less than was initially proposed. Rather than the 4 to 6 percent contribution the Governor sought, those earning up to $45,000 will contribute 3.5 percent. Higher-earning employees will pay more, a maximum of 6 percent for those earning $100,000 or more.

The minimum retirement age, now 62, will be raised to 63; the Governor had wanted it to be 65. The New York Police Department and Fire Department of New York will be excluded from most of the cuts, while future sanitation workers and corrections officers will see their benefits reduced compared to their colleagues who are on the job today. The new rules also limit the use of overtime in pension calculations and require the State, rather than the City, to pay for any future pension enhancements.

We also passed a historic expansion of the State's DNA Databank to include all felonies and most misdemeanors. Persons convicted of minor marijuana possession charges will not have to submit their DNA to the Databank.

My colleague, Assemblyman Joseph Lentol, and others fought for and won provisions in the new law that guarantee defense attorneys will have access to DNA evidence following a court order. It also allows defendants who have been convicted of a crime to petition the courts for access to evidence held by prosecutors, and if they are not capable of paying to obtain this evidence, the State will pick up the expense for them. Previously, there was no provision of State law that laid down these requirements. The new law also allows judges to order evidence be tested against the DNA Databank.

Broadening the pool of DNA data available to police and prosecutors presents the opportunity to close open cases and to prevent offenders from committing new crimes. At the same time, opportunities to exonerate the wrongfully convicted will be strengthened compared to past law.

With many of the difficult questions the Legislature expected to face this year now answered, we will be able to turn more of our attention to the budget, which we are attempting to close early.

On Monday, March 12, after a period of debate, both the Assembly and Senate passed their own "one-house" budget bills. These "one-house bills," while similar, are not identical which they must be to be sent to Governor Cuomo for his consideration and signature, making them the final budget for Fiscal Year 2012-13, which begins April 1. To reconcile the differences in their respective bills, on Tuesday, March 13, members of the Assembly and Senate met in the first in a series of General Conference Committee meetings. After each house has passed its' own "one-house" budget bill, the Permanent Rules of the Senate and Assembly require lawmakers to convene conference committees to resolve differences in the respective houses' budget bills.

Over the next few days, committees will meet to discuss each of the following components of the budget: economic development; education; environment, agriculture and housing; general government operations and local assistance; health; higher education; human services and labor; mental hygiene; public protection, the judiciary and criminal justice; and transportation. Any remaining items will be discussed during other committee meetings in the near future.

These sub-committees will be overseen by the "mothership" committee, which on the Assembly side is made up of Speaker Silver, myself, Majority Leader Ronald Canestrari, Deputy Speaker Earlene Hooper, and Minority Leader Brian Kolb. On the Senate side are Senator Dean Skelos, Finance Chair John A. DeFrancisco, Thomas Libous, Owen H. Johnson and John L. Sampson.

On Monday, March 12, after a period of debate, both the Assembly and Senate passed their own "one-house" budget bills. These "one-house bills," while similar, are not identical which they must be to be sent to Governor Cuomo for his consideration and signature, making them the final budget for Fiscal Year 2012-13, which begins April 1.

To reconcile the differences in their respective bills, on Tuesday, March 13, members of the Assembly and Senate met in the first in a series of General Conference Committee meetings.

Over the next few days, committees will meet to discuss each of the following components of the budget: economic development; education; environment, agriculture and housing; general government operations and local assistance; health; higher education; human services and labor; mental hygiene; public protection, the judiciary and criminal justice; and transportation. Any remaining items will be discussed during other committee meetings in the near future.

These sub-committees will be overseen by the "mothership" committee, which on the Assembly side is made up of Speaker Silver, Assemblyman Farrell, Majority Leader Ronald Canestrari, Deputy Speaker Earlene Hooper, and Minority Leader Brian Kolb. On the Senate side will be Senator Dean Skelos, Finance Chair John A. DeFrancisco, Thomas Libous, Owen H. Johnson and John L. Sampson.

Once the Assembly and Senate have come to agreement on all aspects of budget legislation, the two houses vote to pass their budget legislation, which will be sent to Governor Cuomo for his consideration.

The Public Protection committee will be chaired by Assemblyman Joseph Lentol and include Helene Weinstein, Jeffrion Aubry, Steven Englebright and Philip M. Boyle. Members Daniel O'Donnell and Joseph Giglio will serve as alternates.

The Environment committee will be chaired by Vito Lopez and includes Robert Sweeney, William Magee, Michael Cusick and Clifford Crouch. George latimer and Peter Lopez will serve as alternates.

The Higher Education committee will be chaired by Deborah Glick and includes Jose Rivera, William Colton, John McEneny and William Barclay. Donna Lupardo and Janet Duprey will serve as alternates.

The Mental Hygiene committee will be chaired by Felix Ortiz and includes Harvey Weisenberg, Barbara Clark, Steven Cymbrowitz and Steve Hawley. Naomi Rivera and Nancy Calhoun will serve as alternates.

The Transportation committee will be chaired by David Gantt and includes James Brennan, Margaret Markey, Barbara Lifton and William Reilich. Andrew Hevesi and James Tedisco will serve as alternates.

The Human Services committee will be chaired by Keith L.T. Wright and includes Peter Abbate, Amy Paulin, Michele Titus and Teresa Sayward. Michael Benedetto and Daniel J. Burling will serve as alternates.

The Economic Development committee will be chaired by Robin Schimminger and includes Peter Rivera, J. Gary Pretlow, William Scarborough and Marc W. Butler. Aileen Gunther and George Amedore will serve as alternates.

The Health committee will be chaired by Richard N. Gottfried and includes Joseph Morelle, Joan Millman, Charles Lavine and Louis R. Tobacco. Crystal Peoples-Stokes and Andrew Raia will serve as alternates.

The Education committee will be chaired by Catherine T. Nolan and includes Vivian Cook, N. Nick Perry, Kevin Cahill and Joel Miller. Philip Ramos and Gary Finch will serve as alternates.

The General Government committee will be chaired by William Magnarelli and will include Sandra Galef, Jeffrey Dinowitz, Carl E. Heastie and Michael Fitzpatrick. Karin Camara and Thomas McKevitt will serve as alternates.

Assemblyman Farrell recently joined relatives of the late Malcolm X and Dr. Betty Shabazz and fellow Northern Manhattan elected officials for a ceremony during which a block of Broadway at West 165th Street was renamed Dr. Betty Shabazz Way.

Joining Dr. Shabazz's daughters Ilyasah and Malaak Shabazz were Councilman Robert Jackson, Assembly Member Guillermo Linares, Senator Adriano Espaillat, Councilman Ydanis Rodriguez, Assemblyman Farrell and members of the Northern Manhattan community.

The corner marks the site of the former Audubon Ballroom, where Malcolm X was gunned down while delivering a speech in February 1965. After his death, Dr. Shabazz continued his work by becoming an educator and founding a community center in Washington Heights.

From this building, the Malcolm X and Betty Shabazz Memorial and Education Center, the couple's work continues. Dr. Shabazz died in 1997.

Assemblyman Farrell recently joined NYC Housing Authority Chair John B. Rhea and other members of the community in a ribbon-cutting ceremony to open the Polo Grounds Community Center, a recent building which remained closed while construction errors were fixed.

"While it was frustrating to watch years go by as this valuable community resource remained closed, Chairman Rhea deserves a lot of credit for getting the work done and the building open," Assemblyman Farrell said. "It was a pleasure to help him welcome the public to this Center."

Following the ribbon-cutting, Farrell and others took part in a discussion before a packed house.

While the 23,000-square-foot building was under construction, mistakes including improper flooring in the gym and other faults were made by the construction company, who later ran into legal trouble. After the City's construction inspector noticed these problems, the building could not be judged safe, approved and opened until these problems were corrected.

The completed Community Center includes office space and common areas that encompass the gymnasium, a performance stage, club room, locker rooms, game room, video room with sound booth, arts and crafts areas with a kiln, and a commercial kitchen, all for community use.

HERMAN D. FARRELL, JR.
Assemblymember 71st District

2541-55 Adam Clayton Powell, Jr. Blvd.
New York, NY 10039
TEL (212) 234-1430
FAX (212) 234-1868

If the Legislature is able to come to an agreement on Congressional district lines by the end of this week, the Federal magistrate's proposal will be taken off the table. If we are not able to negotiate an agreement, her proposal will stand, which will please no one. Once that has been settled, the magistrate may then have to deal with the question of the Assembly and Senate district lines if the Assembly and Senate have not come to an agreement on their lines.

Also at this time, the Assembly and Senate primaries are scheduled for September 11, 2012 but there is the possibility that the Assembly and Senate primaries may also be moved to June 26, which would come with two benefits. One, having a single primary date would save State taxpayers about $50 million statewide. Second, moving State primary dates forward to June would solve the conflict with the September 11 national day of remembrance.

In other news, having reached consensus on the revenue component of the State budget for Fiscal Year 2012-13, the Assembly, Senate and Governor continue to make progress toward adopting an on-time budget by April 1, which is the first day of the new Fiscal Year.

On Friday, March 2, Governor Cuomo announced the release of a statutorily-required Consensus Economic and Revenue Forecast Report that the Assembly Ways and Means Committee, Senate Finance Committee and Governor's Division of Budget had all generally agreed upon. This consensus detailed our opinions on the strength of the ongoing economic recovery and projected revenue growth path within a narrow range for the two-year revenue total.

Our individual revenue forecasts were within 0.3 percent of the Executive Budget two-year revenue total of $143.2 billion. The variations were $133 below the Executive forecast to $315 million above. The Assembly's revenue figure was $53 million above the Executive forecast. Our differences resulted mostly from how the data was interpreted by staff.

As the Governor correctly noted, this consensus is an important milestone on the path toward an on-time budget. It is required by State finance law, which calls for the Assembly, Senate and Governor to issue a joint report by March 1 containing a consensus forecast showing the condition of the economy and estimates of revenue receipts.

Our report shows that, after a series of setbacks during 2011 that were not directly related to the economy, the labor market and other economic factors have begun to climb uphill. Over time, household and business investment spending is forecast to accelerate over the course of the next year. It is anticipated that domestic growth will be strong enough to balance or offset any continuing weakness in the European markets.

All parties expect to see fairly significant growth in the job market, which would be even more welcome news. Employment, with the exception of farm work, is expected to grow by 1.3 percent, slightly more than was forecast for 2012. However, gas prices and other energy costs, stock market volatility and the possibility of weak consumer spending if Wall Street bonuses are weak cast doubt on these projections.

Governor Cuomo recently announced a new program intended to help persons returning home from State prisons establish a normal life after they have paid their debt to society. As we have seen, many opportunities are automatically closed to people who have been in prison. Some, becoming desperate, return to the criminal lifestyle which lands them back in prison.

The Governor's "Work for Success" initiative seeks to change that grim reality. Those who choose to pursue the opportunity for success will have access to vocational and other programs that will give them an honest chance to re-enter the job market and once again become law-abiding, tax-paying citizens of New York State. Existing programs will be evaluated and changed to make them more useful. Non-profits such as The Fortune Society have shown support for the Governor's idea and I am looking forward to their participation in this effort.

Also being discussed is a proposal that would restore the voting rights of former felons who have served their time and returned to society. A proposal by Congressman John Conyers of Michigan, the "Democracy Restoration Act," would grant former felons the right to vote. This plan has seen support among the Congressional Black Caucus, and New York's Black, Puerto Rican, Hispanic and Asian Legislative Caucus has asked the Governor to add this important proposal to his Work for Success program.

HERMAN D. FARRELL, JR.
Assemblymember 71st District

2541-55 Adam Clayton Powell, Jr. Blvd.
New York, NY 10039
TEL (212) 234-1430
FAX (212) 234-1868

Once an agreement has been reached, the Assembly, Senate and Governor will have a firm figure to work with as we discuss priorities that must be addressed in the coming year's financial plan. The Governor has proposed an ambitious set of plans for the coming year, not only increasing State aid for education and health care while keeping spending basically flat, but also putting forth policy changes couched in budget language. In the coming weeks, the Assembly and Senate will have their opportunity to respond to these plans through budget amendments.

In other Albany happenings, the Governor recently announced a new program intended to help persons returning home from State prisons establish a normal life after they have paid their debt to society. As we have seen, many opportunities are automatically closed to people who have been in prison. Some, becoming desperate, return to the criminal lifestyle that landed them in prison in the first place.

Governor Cuomo's "Work for Success" initiative seeks to change that grim reality. Those who choose to pursue the opportunity for success will have access to vocational and other programs that will give them an honest chance to re-enter the job market and once again become law-abiding, tax-paying citizens of New York State. Existing programs will be evaluated and changed to make them more useful. Non-profits such as The Fortune Society have shown support for the Governor's idea and I am looking forward to their participation in this effort.

Also being discussed is a proposal that would restore the voting rights of former felons who have served their time and returned to society. A proposal by Congressman John Conyers of Michigan, the "Democracy Restoration Act," would grant former felons the right to vote. This plan has seen support among the Congressional Black Caucus, and New York's Black, Puerto Rican, Hispanic and Asian Legislative Caucus has asked the Governor to follow suit.

Finally, as some of you may have heard, I am supporting a member of our community who is asking the Department of Transportation to study the possibility of creating a "Neighborhood Slow Zone" in our community. After it was approved by the appropriate sub-committee, the idea is before you tonight for a vote by the full Board. It is my argument that, while it is too early to decide whether this would be the right fit for our community, asking DOT to collect and sort the appropriate data will allow us to have a reasoned discussion of the issue at some future date.

Governor Andrew M. Cuomo, during an invitation-only event at the Executive Mansion in Albany, will host a celebratory reception honoring Assemblyman Farrell's extensive and distinguished career in public service. The event will take place February 18, 2012 at 5 p.m.

Assemblyman Farrell and Governor Cuomo during the February 18 event.

Assemblyman Farrell joined colleague Assembly Member Guillermo Linares and members of New York's Dominican community during a celebration of Dominican Heritage Month held in the Legislative Office Building in Albany on Monday, February 13, 2012.

Assembly Members Farrell and Linares in Albany during Dominican Heritage Month.

Also visiting Albany during the event was the Dominican Republic's ambassador, Roberto Saladin, who along with other Dominican dignitaries was shown and introduced around the Capitol complex by Senator Adriano Espaillat. Featured during the event were Assembly Members Nelson L. Castro and Rafael Espinal and Senators Jose Peralta and Espaillat.

HERMAN D. FARRELL, JR.
Assemblymember 71st District

2541-55 Adam Clayton Powell, Jr. Blvd.
New York, NY 10039
TEL (212) 234-1430
FAX (212) 234-1868

Dr. Barbara Bowen, President of Professional Staff Congress, testified that the ratio of CUNY students to teachers is 39 to 1, up from 34 to 1 in 1991, a time when the number of students enrolled in CUNY was far smaller than today's student body. Bowen said in her opinion that ratio should be closer to 20 to 1, which would require up to 10,000 new faculty members. According to Bowen the Legislature and Governor must now begin to restore the CUNY funding that has been eroded over the years. Community colleges as a whole get much less of their funding from the State than in the past; in 2011 51 percent of community college funding came from the State and 47 percent from students according to Bowen.

Representatives of SUNY and CUNY and the teachers who work there, along with students who attend the State's institutions of higher learning, sounded off February 1 on higher education components of the Governor's draft Executive Budget for Fiscal Year 2012-13. SUNY Chancellor Nancy Zimpher, who was the first speaker of the day, offered full-throated support of the Governor's spending and reform plans along with recent reforms that affect the SUNY system. According to Zimpher, the rational tuition policy adopted by the State in 2011 now allows students and families to plan out the five years of a college career while allowing SUNY to more accurately chart its' own financial near future.

SUNY leaders are not sitting back and there is much to do to heal SUNY after years of budget cuts, Zimpher said. She said plans are in the works to cut five percent of SUNY's operating budget over the next three years and re-dedicate those funds to educational operations. While SUNY leaders are listening to feedback, she said, they have no plans to stop pushing to improve services while holding down costs.

CUNY Commissioner Dr. Matthew Goldstein, like Commissioner Zimpher, expressed concerns that some students are graduating high school without being academically prepared for higher education, a concern that was echoed by educators and students throughout the day. However, Commissioner Goldstein testified, CUNY's graduation rate has risen to 55 percent and he believes a higher rate is possible if adequate funding is provided.

Andrew Pallotta, Executive Vice president of New York State United Teachers, testified that State funding for higher education has been cut by nearly $2 billion in recent years, and the property tax cap enacted last year could aggravate that situation. Base State aid is lower now than in Fiscal Year 1971-72 when adjusted for inflation, leaving students to finance 60 percent of campus operating costs, he said.

During a Feb. 8 hearing lawmakers heard testimony from the State's top health official, who explained how the Cuomo Administration plans to spend a planned 4 percent increase for health programs, and advocates for consumers of State health services who complained recent cuts to pharmaceutical programs were already affecting seniors. Dr. Nirav Shah, Commissioner of the State Department of Health, spoke about the Governor's plans to streamline the State's role in the health delivery system. The Governor chose last year to do away with the old system of funding increases, Commissioner Shah said, meaning that a 13 percent boost became a 4 percent boost. The 4 percent boost will be tied to the medical inflation index, the Commissioner explained, which is anticipated to be just enough to cover the needs of the five million New Yorkers who are now enrolled in Medicaid. He said officials hope that, as the economy improves, Medicaid enrollment declines as people are able to secure coverage through new employment.

Neal Lane, an AARP member who sits on their New York State Executive Council, told the Committee that many of the 2.5 million New Yorkers who are AARP members are reporting difficulty paying for their medications after cuts to the EPIC program took effect Jan. 1. Prior to the cuts EPIC enrollees paid no more than $20 in co-pay fees per prescription; now, the majority of enrollees pay 25 percent of the cost of their prescription drugs, Lane testified. Members who had been eligible for co-payment assistance under the catastrophic coverage provision of Medicare Part D are now falling into the "donut hole" if their drug costs exceed $6,658, Lane said. These persons now must pay 5 percent of the cost of their medicine at the counter. These drugs, often taken to treat cancer or multiple sclerosis, are very expensive. The average EPIC enrollee in New York is 78 years old and takes four prescription drugs, Lane said.

NYS Department of Transportation Commissioner Joan McDonald and Metropolitan Transportation Authority Chairman Joseph Lhota opened the Thursday, January 26, 2012 Joint Legislative Budget Committees hearing on transit components of the 2012-13 Executive Budget. Lhota testified that, in an effort to increase the MTA's efficiency, the Authority has been selling excess real estate, consolidating functions, renegotiating contracts, cutting unnecessary overtime and other cost-trimming initiatives that are on track to save $1 billion per year. He said that the Executive Budget seeks to allocate $4 billion for the MTA, including $250 million in new State funding to make up for losses incurred when the MTA Payroll Tax was cut in December.

With regards to MTA's five-year Capital Program, Lhota said only the first two years were initially funded and we are now beginning the third year of the cycle. The MTA Board has approved a package to provide $770 million in new revenue to fund the final three years of the cycle. The new Capital Program is $2 billion less than anticipated with no cuts, Lhota said. The Authority is also seeking funding through a new Federal loan called a Railroad Rehabilitation and Investment Financing loan, which will help pay for the LIRR's East Side Access Project at a lower cost than through traditional MTA bonds, Lhota said.

Commissioner McDonald, who spoke first, began her testimony by pointing out that the Executive Budget shows that Governor Cuomo recognizes the significance of investment in the transit system, and that this investment has the potential to put New Yorkers idled by the recent recession back to work. The Commissioner said that she was "thrilled" by a recent policy change that could streamline bidding and construction of capital projects, and that she supports public-private partnerships designed to improve public transit at less cost to taxpayers. Within the Executive Budget are $2.9 billion for new construction commitments, McDonald said, including $1.2 billion for accelerated bridge and pavement projects that will enable the State to replace over 100 bridge decks and preserve more than 2,000 miles of roadway. These new projects will be put out to bid beginning in April so they begin in this construction season.

Members of the Assembly Ways and Means and Senate Finance Committees took part in a hearing regarding housing issues in the 2012-13 Executive Budget.

Assemblyman Farrell and Commissioner Towns at the opening of a senior housing building.

In his opening remarks, Commissioner Daryl Towns of NYS Homes and Community Renewal explained how the Governor's budget and policy choices support economic development and housing for low and moderate income families. The Governor's message, the Commissioner testified, is clear: sticking with the status quo is not acceptable and state government must change in order to bring prosperity back to New York.

However, the Governor's plans, including defunding some community preservation programs, did not go unchallenged by members of the Legislature who took part in the hearing. Assemblyman Farrell said that while he supports most of the Governor's proposals, eliminating community preservation programs would do damage and lawmakers will work to save these programs.

Farrell explained how, before his election to the Assembly, he had worked for Mayors John Lindsay and Abe Beame on housing issues. A major issue at that time, Farrell said, was housing abandonment - absentee landlords who would collect the rent but seldom if ever perform repairs. In many cases, these landlords simply walked away from their buildings and the tenants who lived in them when the problems became too much to deal with.

After consulting with lawyers and staging rent strikes, Farrell said, it was realized that no one but the landlord had legal control over abandoned buildings even though the landlords were nowhere to be found. Using the 7A proceedings (which allow tenants to petition the courts for the authority to collect rent and manage the building themselves) tenants were able to take control of their buildings and begin to rebuild their lives.

But without professional help to manage these buildings, not much changed. Farrell realized that a non-profit company must be created to maintain buildings on behalf of the tenants, which led him to create the Neighborhood Preservation Companies Program, which became law in 1978.

Though the housing situation in Northern Manhattan and throughout the City has largely changed, Farrell said, it would be very disappointing if after all these years the program that saved these buildings was eliminated. Many buildings, particularly in Washington Heights, can still benefit from the program, Farrell said.

During the recent economic downturn, some companies who own many buildings defaulted on their payments. Tenants who live in these buildings will, once again, need to rely on the Neighborhood Preservation Companies Program as they try to figure out how to maintain the quality of life within their buildings.

During a Joint Legislative Budget Committee hearing Feb. 8 lawmakers heard testimony from the State's top health official, who explained how the Cuomo Administration plans to spend a planned 4 percent increase for health programs, and advocates for consumers of State health services who complained recent cuts to pharmaceutical programs were already affecting seniors.

Dr. Nirav Shah, Commissioner of the State Department of Health, spoke with members of the panel for over two hours about the Governor's plans to streamline the State's role in the health delivery system. The Governor chose last year to do away with the old system of funding increases, Commissioner Shah said, meaning that a 13 percent boost became a 4 percent boost.

Dr. Nirav Shah, Commissioner of the Department of Health, testifies on health and Medicaid issues in the proposed 2012-2013 budget.

James Cox, acting Medicaid Inspector General, testified that continuing efforts are in place to improve the program's integrity. One of his first acts following his appointment by the Governor was to undertake a thorough review of the program, Cox said. As a result, the State has sought to educate providers on how to avoid over-billing the State while cracking down on fraud, he said.

Neal Lane, an AARP member who sits on their New York State Executive Council, told the Committee that many of the 2.5 million New Yorkers who are AARP members are reporting difficulty paying for their medications after cuts to the EPIC program took effect Jan. 1. Prior to the cuts EPIC enrollees paid no more than $20 in co-pay fees per prescription; now, the majority of enrollees pay 25 percent of the cost of their prescription drugs, lane testified.

Members who had been eligible for co-payment assistance under the catastrophic coverage provision of Medicare Part D are now falling into the "donut hole" if their drug costs exceed $6,658, Lane said. These persons now must pay 5 percent of the cost of their medicine at the counter. These drugs, often taken to treat cancer or multiple sclerosis, are very expensive.

The average EPIC enrollee in New York is 78 years old and takes four prescription drugs, Lane said.

Commissioner Martens said the public response to proposals to drill for natural gas in the Marcellus Shale formation, which includes New York City's watershed, has been unprecedented. 50 DEC staff members have been assigned to review and respond to 60,000 public comments as DEC considers possible regulations. In response to a question from Senator Bill Perkins, the Commissioner said it would be premature to include fracking funds in the budget before DEC completes its' review. He said 200 new staff would be needed to monitor fracking statewide.

By late 2009, some time after Texas allowed fracking, enough data had built up to show that the results did not match the projections of these wells' yield. Furthermore, she said, the Federal government has cut its' estimates of how much gas is trapped underground by 66 percent, with the currently accepted estimates amounting to six years' supply at current rates of consumption.

Assemblyman Farrell and Chancellor Walcott discuss the relationship between public schools and religious congregations who sometimes rent space in school buildings.

During a recent meeting in Albany, Assemblyman Farrell and City Education Chancellor Dennis Walcott discussed the issue of congregations renting space in public schools, a practice that is scheduled to end soon without action from Albany, where new legislation is being discussed.

While legislation that would allow religious groups to once again rent space in publicly owned buildings passed the Senate, this bill was criticized by Assembly Speaker Sheldon Silver, who called the Senate bill overly broad and could possibly allow inappropriate groups into schools.

As of this time, discussions of the issue are ongoing and parties to the talks have expressed confidence that a compromise could be reached soon.

During a hearing on tax policy components of the draft 2012-13 Executive Budget held Monday, February 6, 2012 the State's tax commissioner delved into details of how the Executive Branch seeks to change tax policies and procedures and representatives of government watchdog groups testified that the plans did not do enough to level the playing field State taxpayers face.

Assemblyman Farrell and State Taxation and Finance Commissioner Maddox discuss policy changes in the 2012-13 draft Executive Budget.

Thomas H. Maddox, Commissioner of the Department of Taxation and Finance, began his testimony with a brief statement; reading a list of 2011 accomplishments, Commissioner Maddox called the 2012-13 budget plan a blueprint for reform. Reforms mentioned during his testimony included reducing the Department's downstate office space footprint by 50 percent, saving taxpayers some $4 million, and consolidating functions with other State offices.

Farrell and other members of the Budget Committee questioned Commissioner Maddox at length about issues brought to light in a news report about plans to deputize a number of Department employees, giving them special powers to look at tax returns and to share some tax information. Please click here to view video.

The Commissioner explained that the relationship between Taxation and Finance and the Inspector General's office dates back to 1996, which the article did not detail. In light of last year's agency consolidations, the Commissioner said, they were forced to consider formalizing that relationship. Formal training will be required for employees empowered to review tax returns, and the new powers will extend only to State employees' tax records, he said.

Asked by Farrell what circumstances would require court action and a subpoena to examine tax records, and what circumstances would allow the newly deputized inspectors to act on their own without court authorization, the Commissioner said that taxpayers' right to secrecy has always been respected. In some past cases, Maddox explained, if specific conditions were met court authorization was not required to access taxpayer records.

Why then, Farrell asked, has it been proposed that these controls be eliminated?

The Commissioner explained that in the past, one Deputy Inspector General had special privileges to examine tax records. Maddox said that 62 inspectors now have this special power. Because of numerous control measures, it did not worry him that these individuals now possess the broad new powers, he said.

Testifying later, Ron Deutch, Executive Director of New Yorkers for Fiscal Fairness, said that the 2012-13 Executive Budget did not go far enough to make New Yorkers' income more equal or close corporate tax loopholes. The top one percent of earners now earn 35 percent of income, Deutch said, up from 10 percent of income in 1980. At the same time, some corporations pay taxes at a rate of one tenth of one percent - far less than the average family, he said.

SUNY Chancellor Zimpher (at center) speaks to the Legislative Budget Committees

CUNY Commissioner Goldstein (center) testifies to the Joint Legislative Budget Committee

According to Bowen the Legislature and Governor must now begin to restore the CUNY funding that has been eroded over the years. Community colleges as a whole get much less of their funding from the State than in the past; in 2011 51 percent of community college funding came from the State and 47 percent from students according to Bowen.

Empire State Development's Kenneth Adams testifies on the Executive Budget.

Kenneth Adams, President, CEO and Commissioner of Empire State Development testified that under Governor Cuomo's leadership the State's economy was pulled back from the brink of disaster by actions taken during one of the most productive Legislative Sessions in recent years.

Actions cited by Adams included the New York Open for Business campaign and Regional Economic Development Councils, which aligned local priorities with State financial power. At the center of Cuomo's second-year agenda are plans to maintain fiscal discipline while driving private-sector investment in items on the State's agenda, Adams testified.

Adams said that the Governor seeks to encourage more local economic development projects by investing a further $200 million in a competitive grant program and promoting the State as a strong and worthy vehicle for private-sector investment.

In response to questions, which sought answers to explain why the State plans to continue a $400 million renovation of the Jacob Javits Center on 34th Street and later raze the structure if a new convention center is built near the Aqueduct Race Track, Adams said that Genting New York LLC could take several years to construct the new facility at Aqueduct. The Javits Center must remain available to provide a smooth transition while offering a venue to trade shows, he said.

In regards to a related question, regarding Genting's reported plans to ask the State for permission to pay a lower percentage of the profits from new slot machines, Adams said that Genting now pays 71 percent of the profits from existing slot machines to the State, and seeks to pay a smaller percentage of the profits strictly from any machines that are added in the future.

Brian McMahon, Executive Director of the NYS Economic Development Council, testified that his organization considers the Executive Budget to be strong and worthy of the Legislature's support.

Heather Briccetti, President and CEO of the Business Council of New York State, offered praise for the Governor's spending plan and support for his regulatory reform proposals.

Steven Lefebre, President of the Association of Builders and Contractors, offered praise for the Design-Build reform that will let the same company bid on the design and construction components of a capital project, and supported similar streamlining efforts.

Judge Prudente testifies regarding State Court operations.

The first to speak, the Hon. A. Gail Prudente, Chief Administrative Justice of NYS Office of Court Administration, testified that the spending plan reflects the Cuomo administration's commitment to addressing the State's fiscal crisis by cutting $3.9 million from the Courts' budgets at a time that the cost of providing these services is rising.

Judge Prudente told the Committee that court services have been streamlined to focus on trial courts. Court staffing levels are now similar to the levels of a decade ago, she said, despite a 16 percent increase in the Courts' workload.

Because of these cuts, she said, public impacts are becoming visible; the judge referred to a study by the State Bar Association that found the public is experiencing longer lags between arrest and arraignment, and ending the working day at 4:30 p.m. instead of 5:00 is also having an impact on the delivery of services. Judge Prudente said that cost-cutting must not be allowed to further burden the public.

Jerome Hauer, Commissioner of the State's Division of Homeland Security, testified that disasters always begin and end at the local level, as shown by the effects of last summer's severe storms. The Division plans to invest in regional offices and rapid response teams, he said. Also discussed at length were efforts to expand emergency communications capacity without adding infrastructure, which would have helped offset the effects of last year's disastrous weather.

Sean M. Byrne, acting Commissioner of the Division of Criminal Justice Services, said that the Governor's draft budget continues spending restraint while advancing reform efforts. Central to the plan are efforts to reduce violent crime and recidivism while improving State operations.

A key component of reform plans is a proposal to expand the State's DNA database to include all felonies and a number of misdemeanors, Byrne said. This would, according to the acting Commissioner, help convict the guilty, exonerate the wrongfully accused and exclude the innocent from scrutiny.

Other reform proposals mentioned included giving judges more freedom to assign probation and providing new job opportunities to ex-offenders including new funding for services offered at the local level. DCJS is not currently investigating the City's stop-and-frisk program, he said.

Richard M. Aborn, President of the Citizens Crime Commission of New York City, testified at length in favor of expanding the State's DNA database to include all crimes. Since the Databank was created in 1994 the State has on three occasions expanded the number of crimes for which DNA can be collected, Aborn said. To date, he said, 27 have been freed after DNA evidence proved their innocence and there have been no cases of false conviction based on DNA evidence.

Calling the use of DNA crime-fighting at its' best, Aborn testified that offenders convicted of a crime that required their DNA be added to the Database had an average of three prior convictions on charges that did not require they be added to the database. Nearly 40,000 unsolved past crimes could be solved if the database is expanded, Aborn said.

In an exchange with Assembly Member Joseph R. Lentol, Aborn returned to his statement that there is no case on record of DNA evidence having been misused, though he eventually conceded to Lentol's argument that exonerated persons could have been freed more quickly. And, Lentol said, just because no one has yet misused DNA evidence does not mean that no one ever will. Lentol expressed support for legislation that would guarantee defense attorneys equal access to DNA evidence.

NYS Department of Transportation Commissioner Joan McDonald and Metropolitan Transportation Authority Chairman Joseph Lhota opened the Thursday, January 26, 2012 Joint Legislative Budget Committees hearing on transit components of the 2012-13 Executive Budget.

Lhota testified that, in an effort to increase the MTA's efficiency, the Authority has been selling excess real estate, consolidating functions, renegotiating contracts, cutting unnecessary overtime and other cost-trimming initiatives that are on tract to save $1 billion per year. He said that the Executive Budget seeks to allocate $4 billion for the MTA, including $250 million in new State funding to make up for losses incurred when the MTA Payroll Tax was cut in December.

Chairman Lhota testifies to the Joint Legislative Budget Committees.

Also in play is the MTA's five-year Capital Program; Lhota said only the first two years were initially funded and we are now beginning the third year of the cycle. The MTA Board recently approved a package to provide $770 million in new revenue to fund the final three years of the cycle. The new Capital Program is $2 billion smaller than anticipated with no cuts, Lhota said.

The Authority is also seeking funding through a new Federal loan called a Railroad Rehabilitation and Investment Financing loan, which will help pay for the LIRR's East Side Access Project at a lower cost than through traditional MTA bonds, Lhota said.

Commissioner McDonald, who spoke first, began her testimony by pointing out that the Executive Budget shows that Governor Cuomo recognizes the significance of investment in the transit system, and that this investment has the potential to put New Yorkers idled by the recent recession back to work. The Commissioner said that she was "thrilled" by a recent policy change that could streamline bidding and construction of capital projects, and that she supports public-private partnerships designed to improve public transit at less cost to taxpayers.

Within the Executive Budget are $2.9 billion for new construction commitments, McDonald said, including $1.2 billion for accelerated bridge and pavement projects that will enable the State to replace over 100 bridge decks and preserve more than 2,000 miles of roadway. These new projects will be put out to bid beginning in April so they begin in this construction season.

Representatives of the Cuomo Administration and State employees' unions were among the speakers who appeared at a Joint Legislative Budget Committee hearing on State workforce issue components of Governor Cuomo's draft Executive Budget for Fiscal Year 2012-13. The hearing was held Wednesday, January 25, 2012 and is the third of 13 scheduled hearings.

Speaking first was Robert L. Megna, Director of the Governor's Division of Budget, who offered a brief statement before engaging in a lengthy dialogue with Assembly members and Senators who questioned him about the State work force and what the Administration plans to do with it.

A view from the dais as Division of Budget Director Megna testifies.

According to Megna, the Cuomo Administration plans to continue on the course set during the Governor's first year in office by seeking a leaner and less expensive State work force that performs to a higher standard. A relatively stable workforce is sought, Megna said, with about 186,000 Executive Branch employees projected to be on the payroll at the end of next year.

The Executive Budget, apart from setting spending levels, seeks to bring in reforms to increase government efficiency: a Business Service Center will be created inside the Office of General Services and tasked with many of the day-to-day administrative functions of State government.

But, Megna said, the most critical reform envisioned in the Executive Budget deals with pension reform. According to the Director, by 2014-15, pension costs for schools and local governments will have increased by 185 percent over 2009-10 levels. By creating a sixth tier in the State retirement system, local governments stand to save $83 billion over 30 years, with another $30 billion savings accrued by New York City during that period of time, Megna testified.

Tier 6 employees would also have to contribute more toward their retirements during weak economic times, but less during flush times and automatically contribute 4 percent of salary and match up to an additional 3 percent for some SUNY and CUNY employees, Megna said.

Union leaders who spoke during the hearing objected to being vilified and blamed for the ongoing economic weakness. Joseph Fox, Vice president of the Public Employees' Union, said that the pension reform proposal was a positive spin on a bad idea that is disguised as reform. However, Fox said, the union supports true reform that would improve State services.

Fox said that at present, the State and Local Pension Fund is fully funded and that 83 cents of every dollar paid out by this fund is covered by pension fund earnings, and that the average annual pension is less than $20,000. Further, changing future pensions will not affect budget shortfalls today, Fox said. He testified that the reform plan would lessen economic security for workers and would at least double their contributions to their own retirements.

He also testified that the reform plans could subvert civil service rules that guarantee that State employees are qualified to fill their jobs, and downsizing or closures of State-run or -supported facilities could deny the public access to quality affordable care. Fox also criticized plans to increase the State's reliance on consultants who are paid an average $72.37 per hour compared to State employees who are paid an average $49.29 per hour including benefits.

Francine Turner, Director of the Civil Service Employees Association's Legislative and Political Action Department, said that the last few years have seen a drastic increase in animosity toward public servants who some see as overpaid. Turner said the average CSEA member employed by the State is paid between $30,000 and $40,000 and will receive pensions of less than $15,000.

According to Turner the State is at a crossroads - either State government can further vilify its' employees, eliminate retirement security, privatize jobs and make services harder for the public to obtain, or the State can embrace its' longstanding commitment to allow retirees to earn a decent pension and avoid poverty in their golden years.

If Tier 6 of the State retirement system is enacted, Turner testified, all workers hired after April 1, 2012 would see their minimum retirement age raised from 62 to 65, increase vesting time from 10 years to 12, increase employee retirement contributions and eliminate overtime from pension calculations, and base pensions on the average salary over five years rather than three.

She testified that the end goal of the pension reform proposal would be to give employees a choice between an inadequate pension plan and a 401(k)-style defined contribution plan that would force them to work longer, pay more and benefit less. Turner cited a study by the National Institute on Retirement Security that shows public assistance spending on the elderly would increase by 40 percent without defined pension benefits - in other words, once inadequate 401(k) balances and other savings run out, taxpayers will be forced to support retired State workers.

Also speaking in support of current or retired employees were Barbara Zaron, President of OMCE, who said Management/Confidential employees are offered no relief in the Executive Budget; Retired Public Employees Association President Alan Dorn, who said that though pensions are Constitutionally protected retirees are losing access to health coverage through rising costs, administrative action and collective bargaining, and NYSCOPBA President Donn Rowe, who testified that though the State prison system is smaller attacked on staff remain unchanged.

Assemblyman Herman D. Farrell, Jr. (D-Manhattan) announced the Assembly passed legislation he supported (A.8691-A) that will allow New York City to issue 18,000 Hail Accessible Inter-borough Licenses (HAIL) allowing livery cars to pick up street hails. Twenty percent of the licenses will be for accessible vehicles to provide more transportation options to people with disabilities. An agreement on this legislation has been reached with the Governor and the Senate.

"For too long, persistent transportation problems within New York City have gone unanswered, leading to nearly nonexistent taxi presence outside of Manhattan's Central Business District and a troubling lack of vehicles for people with disabilities," Farrell said. "This new plan will afford New Yorkers in underserved areas greater access to taxicab service in and around the city. This will also lead to more revenue for the City of New York, helping protect vital programs for seniors and hardworking families."

Under the legislation, New York City will be able to issue the new licenses over the next three years. The city will also be authorized to issue up to 450 new base permits, generating up to $1.3 million in revenue. In addition, the Taxi and Limousine Commission (TLC) will issue 2,000 new taxicab licenses for vehicles that are accessible to people with disabilities. The TLC will also be required to provide grants of up to $15,000 to retrofit HAIL vehicles to accommodate people with disabilities and establish a program to support the introduction of handicapped-accessible vehicles into the HAIL vehicle fleet.

"The issuance of new HAIL licenses to service the underserved areas of the five boroughs and Upper Manhattan, and new medallions, will substantially improve the ability of New Yorkers, especially those with disabilities, to get where they need to go quickly and easily," Farrell said. "It is imperative that that we continue to support these kinds of initiatives to make traveling within New York City more accessible, efficient and affordable."

HERMAN D. FARRELL, JR.
Assemblymember 71st District

2541-55 Adam Clayton Powell, Jr. Blvd.
New York, NY 10039
TEL (212) 234-1430
FAX (212) 234-1868

At the beginning of his remarks, as the first of many speakers representing local governments across the State, Mayor Bloomberg offered strong support for many elements of the Governor's plan but said that the Legislature could improve other areas and outlined the City's agenda. Calling the Governor's agenda "far-reaching and ambitious" Mayor Bloomberg expressed approval for plans to create a new and less generous pension tier for public employees and reform the pension system overall; creating new teacher evaluations; providing mandate relief to localities; and balancing the budget without relying on new broad-based taxes and fees. According to the Mayor, pension costs constitute 12 percent of the City's budget, more than the Police, Fire and Sanitation Department budgets combined, and the cost of pensions is rising. This is the last best chance to change the continual rise of pension costs, the Mayor said.

Turning to teacher assessments, the Mayor called them an essential tool to evaluate teacher effectiveness. Most other people live in a world where their performance is constantly evaluated, and these people have managed to survive, the mayor said. He also spoke in favor of the Governor's after-school and juvenile justice policies that are related to the budget. The Mayor said that young offenders are less likely to re-offend if they remain close to family, rather than be sent far from home while they are in custody.

Plans opposed by Bloomberg include the elimination of the State share of administrative costs for some youth and family programs; changes to the system by which services for the homeless are funded; plans to pay a smaller share of child-care costs for families on public assistance; and funding cuts that would create a shortfall in services for expectant mothers. Speaking to policy proposals not in the Governor's budget, the Mayor expressed support for calls to increase the minimum wage and to pass the DREAM Act, which would allow greater educational opportunity to the children of undocumented immigrants.

Comptroller John C. Liu, speaking later, commended the Legislature for last year's actions to close a $10 billion budget gap without doing harm to citizens. He pointed to a recent Rockefeller Institute study that found the City gave the State 45 percent of revenues, but only 40 percent were sent back to the City. Calling the City the economic engine of the State, Comptroller Liu asked that this imbalance be corrected.

Citing the ongoing fiscal problems in European markets, the Comptroller said that the City's economic recovery has largely stalled. Further problems in Europe will cause new problems here, he said. At the same time, unemployment rose slightly, particularly among persons of color. In closing, he cited ongoing plans to ease the City's burden of pension costs by streamlining the City's pension investment system.

New York State Commissioner of Education Dr. John B. King, Jr. appeared Monday morning to testify regarding elementary and secondary education components of Governor Cuomo's Budget. The hearing continued until afternoon. Of the Governor's proposal to increase education funding by $805 million, 73% would be directed to high-needs districts. $555 million would be allocated. A further $250 million would be used for competitive grants. Statewide, of more than 3 million students, 2.7 million students attend public schools. Statewide, nearly half currently receive free or reduced lunch, eight percent are not native English speakers and 14 percent are students with disabilities. The State recognizes 4,680 public schools in 696 districts including more than 1,800 non-public schools and 180 public charter schools.

Commissioner King said there is good and bad news to report: graduation rates are up to 73.4%, but not all are ready for higher education, particularly minority students and students who are not native English speakers. In New York City in 2006, 61% graduate in four years, up from 46.5% in 2001 and 53% in 2003. In June 2010, African American and Hispanic students graduated at a rate of less than 58 percent.

The State Board of Regents has proposed a significant reform agenda to improve schools and better prepare students, Commissioner King said. The Legislature has in recent years taken steps to support that reform agenda, the Commissioner said. These include more substantial evaluation systems and pursuit of further financial investment in education. The teacher evaluation reform law of 2010 seeks to build a system of continuous improvement by requiring annual evaluations for teachers and principals, setting clear expectations, using a greater number of criteria to judge educators' job performance, allowing school administrators to make better decisions regarding educators' continuing employment, he said.

The Commissioner's 2012-13 budget request includes a request for $10 million -- $8.5 million to continue current exams and $1.5 million to develop new English language arts exams in grades 9 and 10. Commissioner King called this initiative a key component of the State's education accountability system that is need for successful teacher and principal evaluations. A further $2.1 million has been requested to ensure the integrity of tests for students in grades three through eight and the Regents' examinations. A report to the Board of Regents on alleged testing improprieties is due in the coming weeks, he said.

Commissioner King testified that the tenure system is broken and must be fixed; legislation has been introduced that is intended to streamline the complaint review process and save money while taking less time to resolve complaints. Other legislation related to the budget seeks to expand access to higher education, Commissioner King said. Bills have been introduced to give undocumented immigrants access to State higher education funding, and to open the TAP system to early college high school students.

With regard to the No Child Left Behind Waiver Initiative, Commissioner King testified that the Federal education program gives New York the opportunity to focus on schools that need the most support, measure students' readiness for college and careers, use new diagnostic tools and coordinate the use of funds, and grant the most successful schools new flexibility. In order to receive additional flexibility, schools must set college- and career-ready standards for all students, develop measures of accountability, support effective teaching and reduce unnecessary spending to provide taxpayers with relief.

Assemblyman Farrell greets Mayor Bloomberg during a Legislative hearing on local government issues held Tuesday, Jan. 24, 2012.

At the beginning of his remarks, as the first of many speakers representing local governments across the State, Mayor Bloomberg offered strong support for many elements of the Governor's plan but said that the Legislature could improve other areas and outlined the City's agenda.

Calling the Governor's agenda "far-reaching and ambitious" Mayor Bloomberg expressed approval for plans to create a new and less generous pension tier for public employees and reform the pension system overall; creating new teacher evaluations; providing mandate relief to localities; and balancing the budget without relying on new broad-based taxes and fees.

According to the Mayor, pension costs constitute 12 percent of the City's budget, more than the Police, Fire and Sanitation Department budgets combined, and the cost of pensions is rising. This is the last best chance to change the continual rise of pension costs, the Mayor said.

Turning to teacher assessments, the Mayor called them an essential tool to evaluate teacher effectiveness. Most other people live in a world where their performance is constantly evaluated, and these people have managed to survive, the mayor said.

He also spoke in favor of the Governor's after-school and juvenile justice policies that are related to the budget. The Mayor said that young offenders are less likely to re-offend if they remain close to family, rather than be shipped far from home while they are in government custody.

Plans opposed by Bloomberg include the elimination of the State share of administrative costs for some youth and family programs; changes to the system by which services for the homeless are funded; plans to pay a smaller share of child-care costs for families on public assistance; and funding cuts that would create a shortfall in services for expectant mothers.

Speaking to policy proposals not in the Governor's budget, the Mayor expressed support for calls to increase the minimum wage and to pass the DREAM Act, which would allow greater educational opportunity to the children of undocumented immigrants.

Comptroller John C. Liu, who spoke later, commended the Legislature for last year's actions to close a $10 billion budget gap without doing harm to citizens. He pointed to a recent Rockefeller Institute study that found the City gave the State 45 percent of revenues, but only 40 percent were sent back to the City. Calling the City the economic engine of the State, Comptroller Liu asked that this imbalance be corrected.

Citing the ongoing fiscal problems in European markets, the Comptroller said that the City's economic recovery has largely stalled. Further problems in Europe will cause new problems here, he said. At the same time, unemployment rose slightly, particularly among persons of color. In closing, he cited ongoing plans to ease the City's burden of pension costs by streamlining the City's pension investment system.

Also speaking Tuesday were Division of Budget Director Robert Megna, Buffalo Mayor Byron Brown, Yonkers Mayor Michael Spano, Rochester Mayor Thomas S. Richards, the Erie and Onandaga County Executives, City Council Finance Chair Dominick Recchia and representatives of associations of local government officials.

The cover sheet of Commissioner King's testimony.

Of the Governor's proposal to increase education funding by $805 million, 73% would be directed to high-needs districts. $555 million would be allocated. A further $250 million would be used for competitive grants.

Statewide, of more than 3 million students, 2.7 million students attend public schools. Statewide, nearly half currently receive free or reduced lunch, eight percent are not native English speakers and 14 percent are students with disabilities. The State recognizes 4,680 public schools in 696 districts including more than 1,800 non-public schools and 180 public charter schools.

Assemblyman Farrell meets in his office with State Education Commissioner King and his staff before Monday's Joint Legislative Public Hearing on Elementary and Secondary Education.

Commissioner King, who is also President of the University of the State of New York, told members of the joint Legislative Budget Committees that there is good and bad news to report: graduation rates are up to 73.4%, but not all graduates are ready for higher education, particularly among minority students and students who are not native English speakers. In New York City in 2006, 61% graduate in four years, up from 46.5% in 2001 and 53% in 2003. But in June 2010, African American and Hispanic students graduated at a rate of less than 58 percent.

The State Board of Regents has proposed a significant reform agenda to improve schools and better prepare students, Commissioner King said. The Legislature has in recent years taken steps to support that reform agenda, the Commissioner said. These include more substantial evaluation systems and pursuit of further financial investment in education.

The teacher evaluation reform law of 2010 seeks to build a system of continuous improvement by requiring annual evaluations for teachers and principals, setting clear expectations, using a greater number of criteria to judge educators' job performance, allowing school administrators to make better decisions regarding educators' continuing employment, the Commissioner testified.

The Commissioner's 2012-13 budget request includes a request for $10 million -- $8.5 million to continue current exams and $1.5 million to develop new English language arts exams in grades 9 and 10. Commissioner King called this initiative a key component of the State's education accountability system that is need for successful teacher and principal evaluations.

A further $2.1 million has been requested to ensure the integrity of tests for students in grades three through eight and the Regents' examinations. A report to the Board of Regents on alleged testing improprieties is due in the coming weeks, the Commissioner said.

Commissioner King testified that the tenure system is broken and must be fixed; legislation has been introduced that is intended to streamline the complaint review process and save money while taking less time to resolve complaints.

Other legislation related to the budget seeks to expand access to higher education, Commissioner King said. Bills have been introduced to give undocumented immigrants access to State higher education funding, and to open the TAP system to early college high school students.

With regard to the No Child Left Behind Waiver Initiative, Commissioner King testified that the Federal education program gives New York the opportunity to focus on schools that need the most support, measure students' readiness for college and careers, use new diagnostic tools and coordinate the use of funds, and grant the most successful schools new flexibility.

In order to receive additional flexibility, the Commissioner testified, schools must set college- and career-ready standards for all students, develop measures of accountability, support effective teaching and reduce unnecessary spending to provide taxpayers with relief.

HERMAN D. FARRELL, JR.
Assemblymember 71st District

2541-55 Adam Clayton Powell, Jr. Blvd.
New York, NY 10039
TEL (212) 234-1430
FAX (212) 234-1868

These plans, which Assemblyman Wright and myself have been pushing for, call for the State to spend $4.2 million replacing the deteriorating artificial turf on the playing field, running track and gymnasium floor. These plans also call for improvements at the skating rink, including a new chiller and replacement of the deteriorating boiler system.

My Ways and Means staff and I are in the process of digesting details of Governor Cuomo's draft Executive Budget for State Fiscal Year 2012-13, which begins April 1. By way of overview, the Governor's $132.5 billion budget seeks to hold most areas of State spending flat with several exceptions, including education and health care. After numerous cuts in recent years, it appears the Governor has kept his promise to increase funding for these vital programs.

An additional $800 million has been allocated for education, most of which will be targeted to high-need districts, and a significant portion will be disbursed as competitive grants. The Governor has also made a significant commitment to using State and Federal funds to encourage public-private partnerships. This means public money will be used as seed funds to encourage private concerns to invest private money in projects that have a clear public benefit. Because the State will not have to find the money to pay for road, dam and bridge work, we will have the freedom to invest these public funds elsewhere. I believe this is a smart and positive idea.

These investments will be paid for in part through the changes to the tax code passed by the Legislature in December, which ask high-earning New Yorkers to dig a little deeper while cutting taxes paid by middle-class families, and in part by moving monies around. As a result, the smallest out-year budget deficit in modern times, a mere $715 million, has been forecast.

The Governor also proposes to hold the line on State agency spending and cutting $1.14 billion in planned funding increases for state agency spending. Similar plans are in store for local assistance grants, saving the State $756 million. The Governor further proposes strict spending controls.

Early in his January 17 budget address, the Governor called the document his "Executive Budget and Reform Plan," as it was intended to go far beyond the normal scope of a budget. The Governor said his second budget, unlike others in the past, would not be like a box of Crackerjack candy with a mystery hiding at the bottom, but would instead be an "honest" budget.

Turning his attention to how public funds are spent, the Governor reminded us that about half of the budget goes to pay for the work of some 140,000 contractual service providers who do business with the State. All of these contracts, the Governor said, are managed and measured differently. While some of these contractors spend a fraction of every public dollar on administrative overhead, others spend far more. He believes it is time for this way of doing the people's business to change in order to achieve a savings while improving services.

Also on the table is a plan to complete New York State's role in the Federal health care reform effort. By passing legislation to set up a health care exchange for New Yorkers, the Governor said, we could connect as many as one million State residents with health insurance while reducing employers' health care costs by 22 percent, all of which would be federally funded.

The Governor said his plans to reform New York State's education system would make schooling less about what he called the education industry and more about the students. This can be done, he believes, by following a national trend toward spending less on education while doing more to promote achievement which can be measured by standardized testing.

According to the Governor, the education reform law passed in Albany last year is not working, and the Federal government is displeased enough to threaten to pull back almost $1 billion in new funding that was awarded to the State. The Governor said, and I and others agree, that we simply cannot afford to lose a billion dollars in education aid students and teachers rely upon.

With regard to his economic development plans, the Governor's stated intention is to use $1.3 billion in State funds and $1.7 billion in new and accelerated Federal aid along with $9 billion in State Authority spending to lure $3 billion in private financing. This combined $15 billion will be used to replace the Tappan Zee Bridge and other large capital projects that can put New Yorkers back to work rebuilding our infrastructure and meeting other vital needs.

I hope that you all have a happy and healthy New Year, and I will continue to report from Albany as our Legislative Session continues.

HERMAN D. FARRELL, JR.
Assemblymember 71st District

2541-55 Adam Clayton Powell, Jr. Blvd.
New York, NY 10039
TEL (212) 234-1430
FAX (212) 234-1868

Running down a long list of achievements that took place during his first year in office, the Governor discussed closing a $10 billion budget gap without gimmicks or new taxes, passing new rent laws that do more for tenants than for landlords, supporting youth employment programs, capping local property taxes, cutting taxes for middle-class families, ethics reform, marriage equality, and other legislative successes.

Turning then to the future, the Governor laid out his plans for the second year of his tenure. These plans consisted of three elements. First was the challenge of figuring out how State government can encourage job creation in a weak economy without spending more money. The solution, Governor Cuomo believes, includes making our City and State more of a tourist destination. He also seeks to further the local economic development efforts that are being led by Lieutenant Governor Duffy. The Governor also seeks to pass a Constitutional amendment to legalize casino gambling in New York, which would take several years to complete. The Governor plans to invest in and strengthen the MTA and the State's energy infrastructure, including expanding solar power.

The Governor, in his second year in office, seeks to build on the government reforms he got passed during 2011. After closing an anticipated $2 billion budget gap, in the coming months, he will ask the Legislature to sign off on recommendations that will be made by a Mandate Relief Council before our Session adjourns this summer. School reform is also on his agenda. Calling his reform plans a drive to put the students first, the Governor will seek to make public education cost less and work more effectively.

Tenants and homeowners were not forgotten. The Department of Homes and Community Renewal, which is headed by my former Assembly colleague Darryl Towns, will soon include a new unit dedicated to enforcing existing laws that to protect tenants. As we all know, unscrupulous landlords find ways around or simply ignore laws that are on the books but are not adequately enforced, and this must change.

After touching briefly on plans to train the leaders of tomorrow, guide recent immigrants into our communities, implement campaign finance reform and other ideas, the Governor closed his remarks with words of encouragement that reflected on the past achievements of earlier generations of New Yorkers.

Dear Neighbor,

The Legislature returned to Albany in December to consider and pass a more progressive income tax system than our State has had in many years. Many people, myself included, consider this to be the crowning achievement in a year that saw many legislative successes. I applaud Governor Cuomo for his success in making New York State a more fair and just place to live and I was proud to carry the tax reform bill during the debate on the Assembly floor.

Many have supported the "millionaire's tax," a special income tax surcharge on single filers with income over $200,000 or joint filers who together make over $300,000, which was put into place several years ago to deal with the weak economy and was scheduled to end Dec. 31, 2011. Myself and others did not see this as the time to be giving wealthy people a tax cut. This would have left the State $1.5 billion short in this fiscal year, which ends March 31, and almost $4 billion short during the fiscal year beginning April 1, 2012. If this had happened, millionaires would pay income tax at the same rate as a young family struggling to make ends meet on $40,000 a year.

The money collected through the new progressive tax system will be used to fulfill our commitment to increase education and health care funding by 4 percent next year. It will also help close the budget gap we forecast for Fiscal Year 2012-13. This new progressive income tax system gave middle-class families a tax cut, making their tax burden lower than it has been in decades. This new system will have struggling individuals and families pay less and high-income New Yorkers pay a little bit more. This new tax structure, aside from making the system more fair, will also help close the budget hole caused by the struggling economy's inability to meet the projections we made while working on the budget last spring.

My Ways and Means Committee forecasts that the new tax rates will bring the State about $1.9 billion in new revenue over the next year, about half of what was collected through the "millionaire's tax." Because of these new tax revenues we were able to fund the ATTAIN computer lab at the Polo Grounds Houses, guarantee summer jobs for our youth, and other important programs.

A progressive income tax system that will require all New Yorkers to pay according to their means is a tremendous final act in a year that finally saw marriage equality signed into law, saw the rent laws not only extended but strengthened in a way that does more for tenants than for the landlords, and passing a difficult but on-time budget.

Happy Holidays and a Healthy New Year,
H. D. Farrell, Jr.