A Message from CSEA President Danny Donohue

Political change is about to occur in New York State. Change is a good thing but it is important to remember that now, more than ever, we must stand together and be vigilant about our needs as public employees.

The services we provide and our contracts, salaries, pensions, health insurance, worksite safety and every other issue you can think of are affected by federal, state and local governments. We must participate in this process because whether it's your government manager or lobbyists for big business, someone else is certainly going to make their case.

It does not matter what party is in control. We will support whoever is with us and we will make it known that CSEA's support will not be taken for granted. Through the PEOPLE program, by staying informed, lobbying and voting, we can work together to confront elected officials who want to go after us and support our elected officials who want to help.

Over the coming months we will face continued attacks on our pensions and health benefits.

As usual, it will be public employees and CSEA members that bear the brunt of the finger pointing.

We must get more members involved. We can make a difference in our work-lives and we need to make sure each of our members knows it. When one CSEA member is hurt by a political decision, we all get hurt.

If you already volunteer for political action, thank you. Please stay involved. If you have not volunteered, please, try it out. Join PEOPLE and stop in for a phone bank or lobby day. There is tremendous satisfaction in knowing that you made a difference in your own situation and that you helped others along the way.  

CONCLUSION

The 2006 Legislative Summary shows why it is so important for CSEA to get involved in elections, issue campaigns and lobbying so that we can defend the rights and interests of CSEA members in the New York State Legislature. The previous referenced bills in this summary are the product of CSEA's clout on policy and decision-making at the Capitol.

The only way we can continue to grow this clout is through CSEA members getting involved politically, lobbying and helping to elect labor friendly officials. As the union's clout grows, its member's clout grows as well. By getting involved, showing up in numbers, volunteering your time and supporting the union's endorsed candidates, CSEA illustrates to these candidates and other organizations that this union is a political player and should be consulted in major policy decision making.

The Budget

NEW YORK STATE BUDGET

State Budget Process

The state budget is the spending and revenue plan for each state fiscal year. The budget funds all state operations and programs. It is the main funding source for all county, local government and school programs. The state budget is also where tax policy is decided to determine how programs are paid for.

Cuts in state programs, education, Medicaid or transportation mean job losses and service cuts in state government, local governments and schools. This has a huge impact on CSEA members and the jobs we do. It directly impacts your contracts, pensions and other benefits.

The Governor introduces his budget in January and the legislature must act on it by April 1st. The legislature can amend and change the Governor's budget but a recent court decision has given the Governor the upper hand in this process.

The only way for CSEA members to protect their interests in this process is through lobbying their legislators and the Governor. CSEA members must know about the budget and how it affects them so

CSEA can respond as a united voice to protect our jobs and benefits.

CSEA MEMBER INVOLVEMENT

The CSEA Political Action Team gets involved in the state budget from day one. The Statewide Political Action Committee (PAC) reviews the state budget and determines the priorities that CSEA must fight for. These issues are brought to region, local and unit PACs as well. Letters, information and lobbying materials are sent to the PALs (Political Action Liaisons) so that each of the 212 state legislators hear CSEA's issues in the district.

Lobby days, rallies and press events are planned in Albany and across the state. CSEA officers testify at public hearings and CSEA members join with AFSCME and the AFL-CIO to use our collective labor power. The PAC works with the PEOPLE committee and other CSEA committees to coordinate these activities.

Even with these large numbers, the key to success is the participation of individual CSEA members. It is CSEA members who live, work and vote in the districts that provide the real power. 2006

FINAL BUDGET AGREEMENT

This was another long budget year that resulted in a 2 way legislative budget agreement in April, however, the Governor line item vetoed much of this agreement and an override battle and threats of court challenges followed. This delayed a final budget agreement until June.

The Governor introduced a budget that slashed health care, attacked our pensions and severely shortchanged public education. CSEA members were directly affected by all of these cuts. Protecting public hospitals and nursing homes, and defeating a proposed new Tier 5, quickly became CSEA's top budget issues. Defeating a major expansion of charter schools and a private school voucher scheme were priorities as well.

The following is a breakdown of CSEA's major budget issues as agreed to by the legislature and the actions the legislature took on the Governor's proposals:

·         PUBLIC NURSING HOMES

Public nursing homes serve those most in need of long- term health care but who lack health insurance to pay for it. CSEA represents thousands of employees in these facilities. Because the federal government caps Medicaid grants for public nursing homes, and due to dramatic cost increases in health care, these facilities have faced closure, service cuts, quality of care problems, layoffs and privatization.

CSEA led a major campaign to increase state funds for these vital health care facilities to protect the services they provide and the people that they serve. This will help to protect the jobs and benefits of CSEA members.

CSEA won direct state grants for public nursing

homes over 4 years as follows:

$ 5 million April 1, 2006 -March 31, 2007

$15 million April 1, 2007 -March 31, 2008

$ 35 million April 1, 2008 -March 31, 2009

$100 million April 1, 2009 -March 31, 2010

And each year thereafter.

·         NURSING HOME REBASING /PUBLIC NURSING GRANTS FOR UPPER PAYMENT LIMIT

To address the long-term funding crisis the legislature created a 4-year rebasing plan to update reimbursement rates for public nursing homes. This will provide 50% of what public nursing homes would have been entitled to under the new formula if the federal government did not cap the reimbursement rates for public nursing homes.

·         HEALTH CARE BUDGET ISSUES

The legislature took the following actions on the Governor's proposal:

o        Rejected $233 million in nursing home cuts proposed by the Governor. These were targeted at public nursing homes and would have forced more closures, privatization and service cuts.

o        Rejected $133 million in cuts 10 hospitals proposed by the Governor. These cuts were targeted at public hospitals and would have forced service and staffing cuts where CSEA members work.

o        Approved a 2.5 % COLA for voluntary agencies in various programs licensed by DOH, OMH, OMRDD, OASAS and OCFS. CSEA is actively organizing new members in many of these facilities and this will help raise the salaries of those employees.

DEFEATED IN STATE BUDGET NEW TIER 5

In response to continued attacks on the state pension system by county executives, mayors and the press, the Governor made several budget proposals to roll back the pension of public employees. CSEA lobbied heavily against these proposals and defeated them. However, many newspapers continue to blame high property taxes on pension increases and calls for a new Tier 5 and reduced pension benefits will continue.

o        Rejected creating a pension task force to study creating a new Tier 5.

o        Rejected creating a new defined contribution plan for newly hired technology employees.

o        Rejected the Governor's early retirement proposal, which allowed management to pick and choose which employees were eligible, contained steep penalties and severely restricted the refilling of vacant positions.

These proposals would have set the stage for creation of a new tier with higher employee contributions and lower benefits for all public employees. This issue will remain a priority for CSEA over the coming months and CSEA will oppose any attempt to dismantle the public pension system.

AID TO LOCAL GOVERNMENTS  

State aid to local governments helps keep property taxes down and pays for most county and local programs such as Medicaid, law enforcement, county and local jails, transportation and others. It is critical for CSEA to make sure that fair levels of state aid are available to protect the services CSEA members provide in local governments and their contracts.

The legislature:

·         Approved more than $77 million in increases over the Governor's proposal for cities outside of New York City (average 24.11 % increase) and $17 million increase over the Governor's proposal for towns and villages (nearly 20% average increase). This state aid will help local governments maintain the vital public services that CSEA members across the state provide and help with contract negotiations as well as keep property taxes down.

·         Rejected Governor's original Aid and Incentives for Municipalities (AIM) plan. This required local governments to cap their budgets, prohibited using state aid to negotiate contracts and encouraged local governments to reduce employee health insurance benefits and costs.

EDUCATION

CSEA represents nearly 40,000 employees in school districts and BOCES across the state and in SUNY, community colleges, the State Department of Education and other related agencies. Funding for schools and education programs support the academic, administrative, maintenance, school bus, cafeteria and many other services that CSEA members provide.

DEFEATED

Charter School Expansion

The legislature rejected the Governor's plan to increase the cap of 100 charter schools and create 150 new charter schools statewide and an unlimited number in New York City. Charter schools are operated by private employers but are funded with public money that is taken away from public schools. This cuts funding for the vast majority of students who are left in the public schools and forces property tax increases. CSEA will continue to oppose creating new charter schools until a more fair funding system is created and until they are proven successful.

School Districts

The legislature:

·         Approved $1.1 billion overall increase in state aid for school districts over last year, with $375 million for Sound Basic Education (6.9% increase).

·         Not finished - the Campaign for Fiscal Equity lawsuit, which requires the state to dramatically increase funding for New York City Schools. While the amount has not yet been agreed to, once finalized, the CFE lawsuit will require billions of additional state dollars to go to New York City.

HIGHER EDUCATION

The legislature:

·         Restored $83.65 million in Governor's TAP cuts and rejected limiting TAP to full time study.

·         Rejected $500 SUNY/CUNY tuition increase; differential campus increases and annual indexing of tuition increases based on inflation.

·         Approved increase in community college aid by $75.00 per full-time student.

·         Rejected privatization of SUNY hospitals.

DEFEATED

Privatizing Transportation  

The legislature rejected the Governor's proposal for "design/build contracts" and "public/private" partnerships. These two proposals would have set the stage for the sale of the Tapanzee Bridge. CSEA will adamantly oppose the sale or privatization of any of the state's highways, roadways or bridges.

OFFICE OF CHILDREN & FAMILY SERVICES

The legislature approved new language that requires the Office of Children and Family Services to provide 12-month notification prior to the significant reduction in services, transfer of operations to not-for-profits or staff reductions of public employees. This will help protect youth facilities from privatization and/or closure.

TAXES

The legislature approved a total tax cut plan that will cause $4.16 billion in lost state revenue over the next two years. This lost revenue will cause massive state deficits over the next several years.

School Tax Rebates

Beginning this year, all school property tax payers who are eligible for STAR or the enhanced STAR will be eligible for a new school property tax rebate to be issued by October 31st of each year. The amount of the rebate will vary depending on assessment rates, equalization rates and other factors. To get the rebate the tax must be paid on the primary residence and the taxpayer must not be delinquent on current school taxes. This rebate will cost the state almost 1 billion dollars per year.

Other Tax Issues Resolved in this Budget

·         Approved elimination of state 4% sales tax on clothing under $110.00.

·         Approved a new child tax credit of $330 per school age children (ages four to sixteen). This will cost the state $600 million in lost revenue.

·         Rejected the Governor's proposed tax credit for private tuition.

·         Rejected repeal of the estate tax on estates worth $1 million or more.

·         Rejected Governor's cigarette tax increase.