| Governor Paterson has taken consistent actions to relieve the burden of state mandates on local governments. First, Governor Paterson issued an Executive Order calling for a thorough review of all State mandates. He then worked with the Legislature to enact landmark pension reform legislation, which will save State and local taxpayers more than $35 billion over the next 30 years, as well as a number of other mandate relief and local government efficiency proposals. Building off these successes, Governor Paterson has advanced his mandate reform agenda calling for the elimination of more than 100 mandates and providing nearly $1 billion in local savings over the next three years. |
 Governor Paterson announces Executive Order No. 17 at a taxpayer’s home in Schenectady.
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Governor Paterson’s Mandate Reform Agenda Advances Four-Year Moratorium on Unfunded Mandates and Includes Over 100 Mandate Reform Initiatives
Governor Paterson proposed a four-year moratorium on unfunded legislative mandates as part of his budget to help keep property taxes down and ease the burden on local governments during an unprecedented fiscal crisis. The Governor also proposed long overdue reforms to the Wicks Law to lift contracting restrictions that increase costs for school districts and property taxpayers. In total, the Governor's mandate reform agenda includes more than 100 mandate reform initiatives that will provide savings to local governments of nearly $1 billion over the next three years, with the potential for billions of dollars in savings in future years. Along with a series of statutory initiatives, many of the Governor's reforms are the result of the Executive Order No.17 mandate review process led by his Office of Taxpayer Accountability. Learn More
Here are a few highlights from Governor Paterson’s Mandate Reform Agenda to provide property tax relief to local taxpayers:
Enact a Four-Year Moratorium on Legislatively Enacted Unfunded Mandates
Protect local property taxpayers by imposing a four-year moratorium on all new, significant, legislatively enacted unfunded statutory mandates. The moratorium would suspend the implementation of any such mandates that would require local governments or school districts to undertake new programs, increase the level of service for existing programs, or increase the value of any property tax exemptions at a cost of more than $10,000 for an individual municipality or $1 million for local governments statewide. During this four-year moratorium period, the Governor would work with the Legislature to secure approval of a constitutional amendment to protect localities from future unfunded mandates.
Repeal the Wicks Law Requirements on School Districts
Eliminate the inefficient multiple contract requirements for the different aspects (electrical, plumbing, etc.) of most public works projects imposed by the Wicks Law. This mandate has the effect of substantially driving up capital construction costs. Under current law, New York City, Buffalo and several other school districts have a full exemption from all Wicks law requirements, while remaining school districts are subjected to Wicks-related cost increases for any project above $500,000 upstate and $1.5 million downstate. This disparate treatment will be ended by advancing a permanent repeal of the Wicks Law for all school districts, saving $200 million annually in capital costs.
Establish a Mandate Review Process for the Education Department & Judiciary
Require the State Education Department and the Judiciary to implement a regulatory review process similar to the process the Governor has already imposed on Executive agencies. This would require these independent agencies to fully consider the property tax impact of regulations before they could be advanced.
Reduce Purchasing Requirements on Local Governments
Allow local governments to have significant additional procurement flexibility through a number of reforms, including allowing purchases from federal, other state and local government contracts. This flexibility will give local governments the ability to get the supplies and services they need without overly burdensome procurement processes.
Provide Local Governments Additional Flexibility in Criminal Justice Programs
Remove some of the unnecessary requirements placed on counties as they manage county jails and probation programs. This additional flexibility will enable proper county oversight of those under supervision while enabling counties to reduce costs.
To see a full listing of the more than 100 mandate reform initiatives Click Here
Governor Paterson Signs Landmark Pension Reform Legislation
On December 10, 2009, Governor Paterson signed his landmark pension reform creating a new Tier V pension level – the most significant reform of the State’s pension system in more than a quarter-century. This will save State and local taxpayers more than $35 billion over the next 30 years. Learn More >>
Key components of Tier V reform include:
- Raising the minimum age most civilians can retire without penalty from 55 to 62.
- Requiring employees to continue contributing 3 percent of their annual wages to pension costs throughout their service.
- Increasing the minimum years of service required to draw a pension from 5 years to 10 years.
- Capping the amount of overtime considered in the calculation of pension benefits at $15,000 per year for civilians, and at 15 percent of non-overtime wages for police and firefighters.
A separate Tier V benefit was also created for the NYS Teachers Retirement System, which achieve equivalent savings as other civilian public employees. It includes:
- Raising the minimum age an individual can retire without penalty from 55 to 57.
- Requiring employees to contribute 3.5 percent of their annual wages to pension costs rather than 3.0 percent.
- Increasing the years of service required to receive a higher percentage of final average salary from 20 to 25 years.
To see how much your local government will save Click Here
Governor Paterson Signs Mandate Relief Legislation; Provides Property Tax Relief and Local Government Efficiency
On November 12, 2009, Governor Paterson signed into law his mandate relief and local government efficiency reform legislation. This makes it easier for local governments to cut costs, improve efficiency, and share services – cheaper services mean local property tax relief. This is the first step in making Governor Paterson’s comprehensive mandate reform package law. Learn More>>
Governor Paterson received widespread bi-partisan support for this reform legislation, especially from the local governments that will benefit from it – counties, cities, towns, villages, and school boards. The New York State Association of Counties (NYSAC) press release said this about bill: “County leaders applaud Governor David Paterson and state lawmakers for moving forward on a mandate relief measure that will enact major components of legislation necessary for the more efficient operation of local governments. The bill, passed last night, addresses cost saving measures by enhancing intermunicipal agreements for health insurance cooperatives, highway work and public health; and also closes a loophole that allowed injured public employees to double-bill taxpayers for lost wages.”
Here are a few highlights from Governor Paterson’s Mandate Relief law that will provide property tax relief to local taxpayers:
Inter-Municipal Health Care Plans
The bill makes it easier for several local governments to establish cooperative health insurance plans for their employees. Cooperative plans allow local governments to negotiate lower health insurance costs by covering more employees, much like bulk purchasing.
Inter-Governmental Highway Services
Allows local governments to enter into inter-governmental agreements with the State and other public entities for highway maintenance, storm-water management, lawn-mowing and landscaping. By cooperating with the State, the cost of these services to local taxpayers will be reduced.
Collaborative Borrowing
Allows local governments to collectively issue bonds allowed under the federal stimulus bill. This could save local governments and taxpayers millions of dollars.
Consolidated Health Departments
Allows several counties to create a regional health department or board of health.
Lower Public Project Costs
Provides relief to local governments from burdensome state bidding requirements, allowing local governments to avoid bureaucratic costs and achieve lower prices.
Executive Order No. 17: Governor Paterson Cracks Down on State Mandates
Many state mandates impose a cost on local governments, but do not provide state funding for compliance. Some mandates are necessary and beneficial. But some are not.
The problem has been that the State needed a more thorough and comprehensive process to review the costs of mandates to local governments.
In April 2009, Governor Paterson issued Executive Order 17. All state legislation and regulations that impose a cost on local governments will now be run through a prompt, rigorous and transparent review process. This strict review process includes two fundamental questions that the State has ignored in the past: Can local governments and property taxpayers afford it? And does the cost outweigh the benefit? The very same questions that taxpayers, households and businesses ask themselves every day. Executive Order
Other Reforms: No Savings is Too Small
In addition to his comprehensive mandate reform package and his Executive Order, here are other important steps Governor Paterson has taken:
- Allowing Electronic Fingerprinting in County Jails. Governor Paterson signed legislation that would allow counties to consolidate their electronic fingerprinting services in one location at county jails. This will avoid the extra costs to counties of having to buy several e-fingerprinting machines for different services and different locations. Now, one centralized location can provide all county fingerprinting needs -- arrests, pistol permits, job applications, and background checks.
- Reducing Local Mailing Costs. Governor Paterson signed a law to allow local governments to notify the State about local tax foreclosures through electronic means, instead of printing and mailing.
- Lessening Borrowing Costs. Governor Paterson signed legislation establishing a pilot project that allows Westchester County to sell bonds through electronic bidding, increasing competition to lower interest rates, while saving paper and mailing costs. This innovative project could serve as a model for other local governments in the state.
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