The Mobilizer

Friday, Febuary 17, 2011

From President Jim Bertolone: by Field Organizer, Erin Moody

I recently dug through the archives, reading old interviews with Labor leaders past and present. Ironically, it was the very first major interview with current President Jim Bertolone when Jim won the election as President of the Rochester Labor Council in 1998 that grabbed my attention. The interview was conducted by CITY Newspaper and was printed in their January 21-27 issue, 1998. (Volume 27):

“There are people justifying globalization, foreign sweatshops, by saying ‘Well, the Third World countries have to go through the developing stage.’ Baloney. History is supposed to teach us. It was Santayana who said, ‘Those who cannot remember the past are condemned to repeat it.’ That’s what they’re trying to do; they’re trying to take people who don’t know history, and repeat the excesses of the Industrial Revolution and the Robber Barons all over again. Some of these guys make the old Robber Barons look like pikers. And we’re supposed to have learned from that.”
And look where we are now, in 2012. Labor leaders have long warned us of the past, and we are fortunate to have some of them with us to this day, continuing to move towards the goals where Martin Luther King and other civil rights leaders have left off. But even in 1998, Jim was pleading for a stronger membership; “The Labor Council can do so much. Unions are grassroots organizations. We can’t expect the changes to come from the top down. If there’s going to be change, and a stronger labor movement, it’s going to have to come from a more active union membership.”
Today, you will find President Jim Bertolone, Political Director Tony Bernardo, and I at union meetings every month, preaching this message still. We have a growing list of active union members and volunteers prepared to turn up the old “Street Heat” program from the ‘90’s, when this interview was conducted. They’re sending a message to the community and to the politicians who are elected to represent them.

**To sign up as a volunteer for the 2012 election season, please contact Erin Moody at (484) 263-2650 or email at emaflcio@aol.com.**

**To read articles published by Jim Bertolone, please visit www.rbj.net**

Statement from NYS AFL-CIO President Mario Cilento Regarding Comptroller Tom DiNapoli’s Defense of Middle Class Retirement Security: Today, New York State Comptroller Tom DiNapoli came under attack for his defense of middle class retirement security. As sole trustee of one of the largest pension systems in the country, the Comptroller has more credibility on the issue of defined-benefit pensions than anyone in our state. Moreover, he has a duty to protect the economic well-being of the members, retirees, and beneficiaries of the pension system. As such, he has presented a reasoned case based on the facts. Unfortunately, he is being castigated for doing the job he was elected to do.

401(k)s simply do not provide workers with the predictability and reliability of a defined-benefit pension, and on their own are not a viable option to allow workers to retire with dignity. The Comptroller should be commended for his courage in standing-up for working men and women, rather than criticized by those who simply want to accelerate the race to the bottom. **The proposed Tier 6 plan would decimate the retirement security of middle class workers. It would force them to choose between a severely diminished defined-benefit pension and a completely insufficient defined-contribution, 401(k) style plan. Either way the ability of workers who dedicate their careers to public service to retire with dignity would be imperiled.

**   CLICK HERE TO HEAR THE RADIO AD!!!**

Labor Lyceum: Saturday, February 18th, from 10:00 am to Noon at the NYSUT Building (30 North Union St. in Rochester)
***This program is free and open to the public**  Unions support Occupy Wall Street, but the two movements differ in structure, program process and their critique of the capitalist system. How do we forge a bond over our common issues and bring about nevessary social change?

" The Labor Movement and Occupy Wall Street: How do We Collaborate?" Presenters: Jim Bertolone, Rochester Labor Council; Jacob Dalager, Student Organizer, International Socialist Organization and Occupy Rochester.

Rally To Make Verizon Pay Their Fair Share!

WHAT: Rally to demand closure of corporate tax loopholes
WHERE: Verizon at 1190 University Ave.
WHERE: Monday, February 20th, noon
WHO: Organized by Metro Justice and the Band of Rebels

The Union Difference: Get the facts on Why--
Collective Bargaining Raises Wages, especially for women and people of color
Nonunion workers pay is significantly lower in nearly all occupational groups
Union workers have better healthcare and pensions
Workers' incomes are lower in states where workers don't have union rights
Unions are good for business, productivity and the economy
Unions help bring low-wage workers out of poverty
Unions help bring workers into the middle class

From the Building Trades Council: It's Time to End the Debate, Project Labor Agreements Work. Period.

The Secretary/Treasurer of America's Building Trades Unions provides examples of why Project Labor Agreements (PLA's) in the construction industry continue to gain traction across the country and provide further evidence that the utilization of the skilled trades are an advantage for customers and a pathway to careers in construction. Read More-->

The Associated Builders and Contractors wants you to believe that PLA's are no good for the community. To find out the truth, go to ABC Uncovered: Find the facts that the ABC doesn't want you to know at www.abcuncovered.com.

**Special Congrats to the Rochester Building and Construction Trades Council for the PLA's in the City of Rochester!!!**
Respect our Crafts: please visit www.respectourcrafts.com

2012 Area Labor Federation Annual Meeting: Presentation by Rick Perlstein, Author of "Nixonland: The Rise of a President and the Fracturing of America"    

Click here to view interviews with Rick Perstein on "The Rachel Maddow Show"

The Annual Meeting will be held on Saturday, March 24, 2012 at Monroe Community College (1000 E. Henrietta Rd. Rochester, NY)

Registration begins at 8:00 a.m. and the program begins at 9:00 a.m. **Please contact the office at (585) 263-2650 for affiliate credential and RSVP forms.**

Get Your Taxes Done for Free!: The 1199 SEIU United Healthcare Workers are providing a free tax program in partnership with the Empire Justice Center. The Earned Income Tax Credit Program, Creating Assets Savings and Hope (C.A.S.H.) can help you get the refund you deserve by connecting you with their certified tax preparers. They will file your tax forms for FREE!

Visit the office at 225 West Broad Street (in the rear of Advantage Bank) Now through April 14th 2012. Appointments are available Tuesdays 3 -7pm,
Thursdays 3-7pm and Saturdays 10am-2pm. Make your appointment today!! Call the Union office at 585-244-0830 ext 310.

For information on the Healthy Living 2012 program, contact the 1199 SEIU National Benefit Fund at (585) 244-0830 x318.

Press Event: Tax Breaks are Breaking the 99%  Ward's Natural Science is Taking Off With Our Money!!! Press Event to demand that corporations start paying their fair share, rather than raiding our local and state budgets while cutting jobs!

Tuesday, February 21st at 11:15 a.m. at the County of Monroe IDA (Ebenezer Watts Conference Center, 49 S. Fitzhugh St. Rochester, NY) For more information, contact Andy at the Coalition for Economic Justice at (716) 892-5877 or andy@buffalojwj.org

Occupy Movement:
Occupy Rochester
OCCUPY YOUR HEALTH!!

WE at Occupy Your Health are hosting the second of a series of Teach-in’s and community organized events that focuses on alternative medicine, natural healing, bodywork, & holistic approaches to the health care system. February 26th, 3-9 p.m. at the Flying Squirrel Commuity Space (285 Clarrissa Street in Rochester.)

Please go to the Occupy Rochester website for details occupyrochester.org
Occupy Elmira/Corning:

The Declaration of Occupy Elmira/Corning
Consented to by General Assembly December 14, 2011
We have been captives of corrupt economic and political systems for far too long. The concentration of wealth and the purchase of political power stifle the voices of the increasingly disenfranchised 99 percent. Corporate dominance subverts democracy, intent...ionally sows division, destroys the environment, obstructs the just and equitable pursuit of happiness, and violates the rights and dignity of all life....

**To read the rest of the Declaration, please visit their Facebook page at www.facebook.com/groups/246150232106424/

Coalition of Black Trade Unionists: "The mission of the Rochester Chapter of the Coalition of Black trade Unionists is to prepare ourselves for leadership positions within the labor movement and our communities to increase participation in all levels of political activity in order to create a more just society."

**Save the Date: CBTU's Annual Dinner - April 20, 2012 at Rick's Prime Rib House on Buffalo Rd.

Pride at Work:: Washington the Seventh State to Enact Marriage Equality!!
But a new fight is taking shape right now. Anti-equality groups will push this landmark measure to a public referendum. Losing would mean a reversal of this victory and guarantee that no same-sex marriages ever actually happen in Washington. This has been a critical step forward in our coordinated, nationwide equality campaign, and we're not about to back down. We still face months of work before same-sex couples can marry in Washington. And if the right gets its way – if we lose this ballot measure – we could be back to square one. Tell Governor Gregoire that that her bravery is not going unnoticed – and that we're looking to her to help defend this monumental law in the coming months.

True Colors Recognition Dinner:  This Year’s Special Honoree – Linda Donahue, Cornell ILR

Buffet and cash bar, spouses and friends welcome! “Workin’ it” Labor fashion show $35.00 or $55.00 with membership (save $5.00)  Table of 10 - $350.00   Thursday, March 15, 2012 – 5:30 – 8:30, Diplomat Banquet Center (1 Diplomat Way at Lyell exit off 390 – Gates NY 14606)

Tickets can be found through https://www.wepay.com/tickets/truecolors2012. For additional information please contact Bess Watts at besswhat@gmail.com.

Next Generation United: Voter Reg Drive this saturday at the Public Market: Rochester, NY located @ 280 North Union Street, we will be there from 8am-12pm. Come out and join us!!!

Next General Meeting - March 19th at 5:30 p.m. at the NYSUT Building (30 North Union St.)

From the CSEA Voice Reporter:
Get Money Out of Politics- Move to Amend!! 
Democracy only works when people are in charge

EPI Reports: U.S. Trades deficit worsens: The U.S. Census Bureau reports that the U.S. trade deficit in goods and services increased by $58 billion last year. For the entire story by Robert E. Scott, click here

From the Immigration Policy Center: The Future of a Generation: How New Americans will Help Support Retiring Baby Boomers  The United States is in the midst of a profound demographic transformation that will long outlast the current economic downturn. In 2011, the first of the baby boomers—Americans born between 1946 and 1964—turned 65 years old. There are 77 million baby boomers, comprising nearly one quarter of the total population, and their eventual retirement will have an enormous impact on the U.S. economy. This daunting fact is central to the January 2012 employment and labor force projections from the Bureau of Labor Statistics (BLS). As the BLS projects, the retirement of the baby boomers will slow labor force growth significantly over the coming decade. Yet, at the same time, demand will grow for new workers to take the place of those who retire from the labor force, as well as for both highly skilled and less-skilled healthcare workers to look after the growing ranks of elderly Americans. In addition, the Social Security and Medicare programs will be called upon to serve a rapidly growing number of older Americans, which will leave American taxpayers hard pressed to fund those programs with their tax dollars.   Read More...

Workforce Development Institute: **Cancelation!!**The NYS Department of Labor has canceled the Immigration Forum  " Key Issues Impacting New York's Immigrant Workforce", originally scheduled for  Wednesday, February 29, 2012 from 5:00 pm to 7:00 pm at the NYSUT Building. Any questions should be directed to Bob Trouskie, Director WDI Field Services, 585-325-6740.

Union Made Vehicles: For those who want to drive union-made cars, trucks & vans, these were made by UAW and CAW members: Union Made Vehicles

Other News:
Join TWU's I Support American Jobs Campaign
February Marks 44th Anniversary of Historic Memphis Sanitation Strike
AFGE says Republicans Have Some Explaining to Do

This Week in Labor History
[For the full week's history, please visit Union Communication Services, Inc.]

Upcoming Labor Council Meetings:
Rochester & Genesee Valley Area Labor Federation Office: 30 North Union Street, Suite 204, Rochester, NY**closed on Monday, Feb. 20th for holiday
Rochester Labor Council, AFL-CIO, Education Committee: Thursday, March 15, 2012, 5pm, NYSUT, Rochester, NY
Next Generation United, Rochester Chapter - General Meeting: Monday, March 19, 2012, 5:30pm, NYSUT, Rochester, NY
Pride at Work, AFL-CIO, General Meeting: 2nd Thursday of every month!, 167 Flanders Street, Rochester, NY
Finger Lakes Labor Council, AFL-CIO, General Meeting: Monday, March 12, 2012, 5:30pm, IBEW Local 840, Geneva, NY
Rochester Labor Council, AFL-CIO, COPE Meeting: Wednesday, March 14, 2012, 5:30pm, NYSUT, Rochester, NY
Chemung/Schuyler Labor Assembly, AFL-CIO, General Meeting: Wednesday, March 14, 2012, 6pm, CWA Local 1111, Elmira, NY
Rochester Labor Council, AFL-CIO, Executive Board: Thursday, March 8, 2012, 5pm, IBEW Local 86, Rochester, NY
Rochester Labor Council, AFL-CIO, Delegates Meeting: Thursday, March 8, 2012, 7pm, IBEW Local 86, Rochester, NY
Steuben Livingston Labor Council, AFL-CIO, Executive Board: Thursday, February 23, 2012, 6pm, CSEA Hall in Corning, NY
For More Calendar Updates or to register for events, please visit www.rgvalf.org and select "Events"

Cornell ILR Classes:

Greetings from the undergraduate admissions office at the ILR School at Cornell University. ILR, one of the undergraduate colleges at Cornell University, offers a unique curriculum and undergraduate experience designed to prepare you for leadership positions in labor relations, business, law, government, international affairs, public policy, human resources and more. ILR is home to 920 undergraduate students and 57 faculty—leaders working to solve the nation's and world's workplace challenges. Distinctive courses, credit internships, international study, research with faculty experts, talented students, personalized academic and career advisement, organizations to become involved in and dedicated alumni, combine to create an unparalleled college experience. To discover the possibilities for yourself and to learn how to apply, visit http://www.ilr.cornell.edu/admissions/Apply/. Questions? Please email ilr_admissions@cornell.edu or call 607-255-2222. We look forward to meeting you. Sincerely, Cathleen M. Sheils ’89, MPS ‘99 Director of Admissions, ILR School

2012 Labor Studies On-line Credit Courses
Spring 2012
April 2 - June 11, 2012 
Collective Bargaining  3.0 credits  (LS200)  Instructor:  Pat Domaratz
This course examines the principles of contract bargaining including bargaining environments and structures as well as standards used in negotiations. Students will learn to prepare bargaining demands, cost economic items, draft non-economic language, negotiate economic and non-economic issues, and resolve a bargaining impasse. Discussion will consider the impact of bargaining outcomes on workers, unions, employers, and the public. 

Values and Ethics in the Union 3.0 credits  (LS116) Instructor:  Arthur Matthews
Ethical conflicts and dilemmas inevitably arise in the process of providing leadership.  The causes of ethical conflicts within unions and in the larger labor movement will be explored in this course through readings about democracy, ethical theory, union history and structure, and organizational values.  Using case studies, group debates, and class discussions, students will examine the opportunities and dilemmas facing unions as they undergo internal change and revitalization.  Different approaches to ethical decision-making will be evaluated to identify the values that guide students' own union work and to develop and practice new processes of working through conflicts.

Each class is $595.00. To register for any of these courses:  http://www.ilr.cornell.edu/laborPrograms/leadership/laborStudies/online/index.html  or contact Alice Torres at (585) 262-4440 or by e-mail at amb27@cornell.edu Adjunct faculty are proud members of the Cornell Adjunct Faculty Alliance, NYSUT, AFT, AFL-CIO. Courses and credits earned in Extension Division programs are not automatically accepted as transfer credits or as a basis of admission to the resident Cornell-ILR programs in Ithaca.  Student applications and course transfers are evaluated by the ILR School on an individual basis. For more information or to register, please go to: http://www.ilr.cornell.edu/laborPrograms/leadership/laborStudies
/webinars/index.html or contact Alice M. Torres at amb27@cornell.edu or call 585-262-4440.

On-line Cornell Labor Leadership Skills: ($300 per workshop)

If your union is interested in scheduling a scheduling one of the above workshop on-site, please call Art Wheaton at (716) 852-1444 x 116 or e-mail acw18@cornell.edu

Union Community Assistance Network (UCAN)

Finger Lakes Occupational Health & Safety

Rochester & Genesee Valley Area Labor Federation, AFL-CIO - Find Us On Facebook

Follow the AFL-CIO at:
Facebook
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Job Openings
Openings with the Empire State Pride Agenda

Collective Bargaining Digest

Wednesday, February 22, 2012

Top News – Members of United Steelworkers (USW) Local 1123 voted to ratify a new contract with Timken Co. that will run through 2017. The agreement covers 2,300 workers at three steel plants in the Canton, Ohio area and guarantees a $225 million investment by the company in its Faircrest plant. ◦◦ According to the BNA Daily Labor Report (subscription required), workers rejected a tentative three-year agreement with Pacific Gas and Electric Co. that would have covered some 8,500 members of Electrical Workers (IBEW) Local 1245 in Northern and Central California. Workers said they felt betrayed by the utility company's attempts to reduce pensions and working conditions.

Organizing – In Los Angeles, Calif., carwash workers who voted to join USW Local 675 last year have won first contracts with Vermont Carwash and Nava's Carwash. The contracts provide wage increases and improve working conditions and safety on the job.

State Legislation – A Michigan state senate committee yesterday passed a bill that would deny graduate research assistants at public universities the right to join a union. The Board of Regents at University of Michigan, where 2,000 graduate assistants are currently trying to organize, held an emergency meeting ahead of the Senate vote to affirm its opposition to the bill.

Global Labor Movement – The Canadian Auto Workers has reached a tentative agreement with Caterpillar Inc., on the closure of a plant in London, Ontario. Caterpillar announced the closure of the Electro Motive plant one month after it locked out nearly 500 workers. Details of the closure deal will not be released until after workers have had a chance to vote on it.

Daily News

N.Y. pensions are worth defending

In the pension debate, it seems that the facts can't hold a candle to a well-worn narrative.

Critics of the current defined-benefit retirement plans for state workers incorrectly assert that New York State's pension system is financially sound only because of an unlimited amount of taxpayer money.

The truth is that the system is financially sound because New York has prudently managed its fund for more than 90 years.

The critics insist that pensions are unsustainable and unaffordable by portraying contributions in the worst possible light while ignoring the fact that, historically, 83% of all pension benefits come from investment returns. They insist we must reduce benefits for the next generation of workers by creating a new pension tier, while allowing these workers to move into a 401(k)-style defined-contribution retirement plan.

What worries me, as the fiduciary of the fund and as the state's chief fiscal officer, is that the 401(k)-style plan being presented to employees as a "choice" is, in fact, a false choice. By making the proposed defined-benefit plan less attractive and allowing the employee contribution to the 401(k)-style plan to be optional, employees would almost surely be steered toward choosing the latter plan.

The result is that many younger people, whose retirement date is decades in the future, will undermine their long-term retirement security by making the decision not to contribute and thereby fail to properly plan for their retirement. Playing catchup just doesn't work.

For those employees already in 401(k)s, it's no secret that these plans are far more volatile than traditional pensions and have significantly higher fees for individuals. According to Boston College's Center for Retirement Research, 401(k) plans lost a collective $1 trillion during the Great Recession.

On top of that, the cost to deliver a retirement benefit through a defined-benefit pension plan is 46% less than that through individual 401(k)-style plans, according to the National Institute on Retirement Security.

Policymakers should not knowingly push future generations toward inadequate retirement security. Those who have saved too little or have seen their 401(k)s collapse will rely on our state's social assistance safety net.

The higher moral, social and economic costs of this to all of us is readily apparent.

On the other side of the coin, defined-benefit pensions help to stabilize our state's economy. Close to 80% of New York retirees continue to live in New York State, resulting in an estimated $6.5 billion in spending, $9.5 billion in economic activity and $1.3 billion in property taxes.

Lest we forget, the more than 1 million members, retirees and beneficiaries of the state and local retirement system are taxpayers, too.

While I believe that it is appropriate to have a thoughtful, inclusive discussion about issues such as the level of pension contributions and ways to control overtime, it is inappropriate to lay the foundation to scrap our entire system in favor of something that will ultimately cost us more.

New York's proposed move to a 401(k)-style plan just doesn't make sense.

We are all in this together. Pitting government employees against the private sector is yet another false choice. As I have said over the past several months, it is time that we had a national conversation on retirement security to discuss what we, as a nation, must do to better prepare all Americans for their golden years.

It's time to stop twisting the facts on New York's public pension system and start talking about real solutions.

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Brynien: 'Even Popular People Can Be Wrong'

At first glance, the state's labor unions face an uphill battle in halting the march to a new, less generous pension tier for future state workers as prescribed by Gov. Andrew Cuomo.

The Tier VI proposal is staunchly opposed by the state's labor organizations, but Cuomo's insertion of the plan into his budget proposal practically guarantees its passage. It helps that the governor has a sky-high approval rating and that most voters seem to support Tier VI, which includes an optional defined-contribution component.

But Public Employees Federation President Ken Brynien sees it differently.

"Even popular people can be wrong sometimes and in this case, the governor is wrong," Brynien told me Sunday night.

But the fact that Cuomo's popularity helps him the budget and pension battle was highlighted after the Civil Service Employees Association released a television ad in opposition that didn't mention or show the governor with the 70 percent approval rating.

Of course, Cuomo's plan has a flip side. Putting the proposal into the budget does risk the possibility of a government shutdown should state lawmakers balk at the idea. Brynien went further with Jimmy Vielkind, telling him it should a "line in the sand" for pro-union legislators.

The pension plan has roughly zero effect on this year's $132.5 billion budget, but does save $83 billion over the course of 30 years. Cuomo has said the state pension fund is in dire need of transformation given the amount of money it costs local and state governments.

Given the timetable for this year's budget — lawmakers want to get it done by March 22 — gives unions even less time to muster resistance. The budget is due April 1, the start of the 2012-13 fiscal year. Labor plans to make its stand in March through coordination with affiliated unions and a mix of direct lobbying, ads and rallies.

"We've already started some ads as you know," Brynien said. "We're working with some other unions in the AFL-CIO to produce them. Probably throughout the month of March there'll be direct lobbying of legislators both in Albany and in their districts. There'll be more ads, there might be a rally or two, there will be a lot of letter writing. Everybody pretty much assumes that the budget will be done by the end of March, so March is the month that we're going to put on all our efforts to get this changed."

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Figure in NY pension fund scandal denied parole

A longtime adviser to New York's disgraced former Comptroller Alan Hevesi has been denied parole and will remain in prison for felony securities fraud stemming from an influence-peddling scandal at the state pension fund.

Political consultant Hank Morris told the parole board in a videoconference this week that he was wrong, poses no threat and paid about $19 million in restitution for what authorities called kickbacks from financial firms seeking roles in handling pension fund investments.

The 58-year-old Morris has spent a year locked up. He is serving 16 months to four years.

The board denied parole, concluding there is "a reasonable probability" Morris would break the law again if released now.

"It was a blatant conflict of interest," Morris told the three commissioners.
However, he said his fees were standard for representing investment managers, hedge funds and private equity managers seeking fund business, though he was also Hevesi's principal political consultant while also doing that starting in 2003. He said he'd asked an ex-federal prosecutor in advance whether the work would be a problem and was told that as a private citizen it would not.

Morris said his prosecution was an unprecedented use of New York's Martin Act against securities fraud by the attorney general's office.

"Honestly, I think the first time that I was aware that this was certainly illegal when the judge issued his opinion interpreting the law," he said, adding that he knew for a few years he was under investigation and got a lawyer.

Morris said his clients "performed spectacularly" making money for the fund for about 1 million government workers and retirees, and "the fundamental harm" was to government integrity and public faith in the political system. He paid income taxes on the $19 million and won't get that money back, he said.

Authorities said the crimes involved investments of about $250 million in the pension fund now valued at more than $140 billion.

The 72-year-old Hevesi, serving one to four years for felony official misconduct, was denied parole in November. The parole board called his explanation of his blame "shallow."

Hevesi told the commissioners that the charge he admitted concerned $75,000 of expenses for five trips to Israel, primarily on fund business, which were paid by a venture capitalist on the trip, expenses he said the state could have paid. "It was a level of stupidity that for me was unprecedented," he said. "You know what, I thought about it very briefly, saying well, if he was picking up the tab it's from the private equity fund which is our money anyway."

He acknowledged that he hurt many people, including a couple dozen senior staff at the comptroller's office who lost their jobs after he left.

Hevesi said the campaign donations from people seeking to do business with the fund were all spent on his re-election campaign along with the rest of the $7 million raised. He didn't personally receive money or pay restitution, he said.

"It's almost a criminal offense to have any money left in your campaign account," he said.

Comptroller Thomas DiNapoli, who followed Hevesi, instituted rules banning the use of paid placement agents and comptroller campaign contributors from fund business.

The Cuomo administration last year announced plans to make permanent the restrictions on who can do business with the fund and add elected officials to the list in an effort to prevent political favoritism.

Gov. Andrew Cuomo directed regulators to issue the permanent regulations to also ban placement agents, lobbyists and so-called "pay-to-play" activity from fund operations. The Insurance Department had issued temporary regulations following Cuomo's investigation as attorney general that resulted in Hevesi's and Morris' prosecutions.

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Cuomo's Efforts to Expand Authority Raise Alarm in Albany

In his proposed budget for next year, Gov. Andrew M. Cuomo has inserted language that would allow him to move money between state agencies without legislative approval.

He has included a clause that would allow him to give out some contracts without the customary review of the state comptroller. And he added another provision that some budget experts fear could expand his authority to borrow money for construction projects.

Riding high after a string of successes during his first year in office, Mr. Cuomo is now taking an expansive, and expanding, view of the role of governor, in the name of reining in the state's sprawling bureaucracy.

But even some of Mr. Cuomo's fellow Democrats are raising questions about what they view as a power grab. And suddenly a staple of civics class — the notion of checks and balances between different branches of government — is the talk of the Capitol.

"I think many of us, including myself, feel that there is overreaching proceeding down the path by our new governor, and that it is ultimately not healthy for there to be excessive power in the executive branch, even though he's popular," said Assemblyman James F. Brennan, a Democrat of Brooklyn.

Within the last two weeks, the Assembly speaker, Sheldon Silver, a Democrat, and the Senate majority leader, Dean G. Skelos, a Republican, both criticized Mr. Cuomo's administration for a pact that allowed the state inspector general to see the tax returns of state employees. The state comptroller, Thomas P. DiNapoli, a Democrat, offered a broader critique, raising questions about proposals that his office said "would give the executive greater powers that would reduce long-established checks and balances."

Mr. Cuomo does not dispute the notion that he is seeking more authority. But he is also in no mood to apologize, arguing that the changes he is proposing are technical and minor, and that the traditional rules and regulations of Albany have been a prescription for paralysis.

"Unless you take the position that everything is fine in this state government, and there's no reason to improve it, then we're just trying to make a historically dysfunctional government function," he said at a news conference on Tuesday. "And that means there are going to be changes."

Mr. Cuomo has been asked to address concerns over his growing authority, and his relationship with the Legislature and other elected officials, several times over the past few weeks.

Meeting with editors and reporters at Newsday this month, he said that "maybe basic competence appears as a conspiracy plot to you." In Syracuse last week, he lamented that "Albany politicians created this system" and were now "trying to protect it." And in a radio interview on Monday, he said that his relationship with lawmakers was "not about chocolates and candies and love," adding that what others see as tension, he viewed simply as "both houses doing their responsibility, and my doing mine."

"They want to be able to say where every dollar goes; I want to be able to say, 'Give me some flexibility for efficiencies and consolidations,' " Mr. Cuomo said in the interview, on "The Capitol Pressroom," a public radio program.

The concerns have become widespread enough among insiders in Albany that pollsters at the Siena Research Institute included in their most recent survey of New York registered voters a question about whether they agreed that Mr. Cuomo was "trying to impose his agenda on New Yorkers, acting more like a king than a governor." The poll found that the concerns about the governor's conduct did not extend to voters — 72 percent disagreed that Mr. Cuomo was acting like a king, and 74 percent said they had a favorable view of him.

But at the Capitol, concerns about Mr. Cuomo's maneuvers have escalated over the past year, even as he has used a combination of charm, intimidation and strategic skill to push his agenda through a change-averse Legislature.

He offered an all-or-nothing proposition with his first budget last year: Lawmakers could accept his plan or he would impose it through emergency spending measures. (They accepted it.)

He also made waves by merging the state insurance and banking departments to create what skeptics have viewed as his own attorney general's office — the State Department of Financial Services. The governor initially sought to give that agency sweeping investigatory powers that some experts said could have made it more powerful than the attorney general's office, but he ultimately scaled back his proposal.

Gerald Benjamin, a political scientist at the State University of New York at New Paltz, described Mr. Cuomo's approach as one of "extending institutional powers at the margins."

"I think the governor is much more subtle and intelligent about the systemic issues than his predecessors," Professor Benjamin said. "He pushes, and then he moves a little bit back."

Robert B. Ward, deputy director of the Nelson A. Rockefeller Institute of Government in Albany, said Mr. Cuomo was "very carefully and methodically exploring lots of ways to get things done."

"On the one hand, voters, in particular, don't like a lot of power concentrated in one set of hands," Mr. Ward added. "On the other, people clearly became tired of Albany failing to act on some big problems. So I think the governor is trying to thread a needle here between those two sets of concerns."

Much of the concern over Mr. Cuomo's latest budget proposal has focused on provisions that would increase his office's authority over financial matters — a provocative move in part because New York's Constitution already gives the governor significant power in deciding how the state spends its money.

For example, a 130-word paragraph sprinkled hundreds of times throughout the budget would allow the governor to move appropriations between state agencies after the Legislature had approved the state spending plan. Mr. Cuomo's budget office said the clause would allow the state to consolidate back-office services like purchasing and information technology more easily, saving hundreds of millions of dollars over the next few years.

Mr. Cuomo is also proposing to strip the comptroller's office of the power to review some state contracts before they are approved. And he is seeking to allow public authorities to transfer funds among themselves; lawmakers said that could have the effect of allowing, for example, revenues from the New York Power Authority to be used to pay for rising construction costs at the World Trade Center.

Richard L. Brodsky, a former Democratic assemblyman who wrote legislation to improve accountability of the state's public authorities, said the provision would undo safeguards that lawmakers had put in place with some difficulty.

"It goes to the heart of the reform efforts that took six years, three governors and two attorneys general to get done, and it's extremely important," Mr. Brodsky said.

Even after the budget proposal's release last month, the efforts to consolidate power in the executive branch seemed to persist. Last week, among various amendments to the budget that mostly addressed technical errors, Mr. Cuomo included a measure that would allow the State Dormitory Authority, which provides construction financing to universities and hospitals, to extend financing to many other state and local-government projects.

Several budget analysts said the proposal appeared as if it could authorize back-door borrowing. But Mr. Cuomo's top aide, Lawrence S. Schwartz, said the reason for the measure was to employ the Dormitory Authority's construction expertise in an effort to create jobs by expediting public works projects.

"This has nothing to do with borrowing," Mr. Schwartz said. "It's called making government work better and cost less."

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Pension panel draws protesters

The debate over a new, less-generous pension package continued Thursday with unions protesting outside a panel supporting Gov. Andrew Cuomo's proposal to offer new state workers the option of a 401(k)-style retirement plan.

"We're very pleased that this is finally on the front burner," said Tim Kremer, executive director of the New York State School Boards Association.
Peter Baynes of the New York Conference of Mayors said pension costs are "crowding out the ability of local governments to perform the duties they are supposed to do."

But attendees at the panel, sponsored by the conservative Manhattan Institute, dove into the minutiae of Cuomo's proposal, called Tier VI, which was included in his proposed budget. It would include a defined contribution plan, like a 401(k), where the state, municipality or school district would contribute 4 percent, and match up to 3 percent of employee contributions. It would also create a new "tier" in the defined contribution plan, in which the state guarantees employees a benefit for life, where employees contribute between 4 percent and 6 percent depending on their income.

Unions have argued this would create a potentially perilous incentive for low-wage workers to pick the defined contribution plan, because they would potentially pay nothing out of pocket. If they did so, though, they would save only 4 percent for their retirement, which all the panelists (as well as retirement advisers) acknowledged was likely too low to ensure a comfortable retirement. Manhattan Institute Senior Fellow E.J. McMahon pointed out a similar plan for SUNY employees has an automatic employer contribution starting at 8 percent and mandates employees contribute 3 percent.

Comptroller Tom DiNapoli argued Cuomo's pension plan is a "less effective option to provide retirement security." One audience member asked Baynes and McMahon if they would support a modification of Cuomo's proposal.
"Our members would trade the 7 percent maximum under the governor's plan for the 8 percent maximum ... to get the stability of a defined-contribution option," Bayne said.

"If this discussion was not, 'No! Defined-contribution bad — no!' If it was '12 (percent) versus 4 (percent),' that would be good,'" McMahon said.
Demonstrators from the American Federation of State, County and Municipal Employees chanted outside the panel, held in the Alfred E. Smith Building. They handed out flyers showing the Manhattan Institute's board is dominated by hedge-fund managers, and questioned their support of Cuomo's proposal.

"McMahon is really the agent of the one percent. ... Part of the agenda is to move our pension funds to Wall Street control," AFSCME Political Director Brian McDonnell said.

Morris Peters, a spokesman for Cuomo's budget office, countered, "Tier VI provides new employees with voluntary options that are more portable and may better fit their individual needs."

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DiNapoli get press release pelting: Unions fire back

It was kind of like a junior high school spitball fight, but with dueling press releases and of course this was actually about money and peoples' retirements.

Either way, Comptroller Tom DiNapoli, who has emerged as one of the staunchest opponents of Gov. Andrew Cuomo's proposed Tier 6 pension reform for public employees going forward, was pelted Monday for his stance by a variety of business groups, prompting unions as well as a sympathetic mayor to fire back.

Here's how it went, with the first missile, as far as I can tell, landing early Monday morning when state Business Council President Heather Briccetti's piece in the Buffalo News supporting Tier 6 went on line. "Our current pension system is already unsustainable, and the generational surge in retirees will mean that our younger population will be forced to carry the fiscal burden," wrote Briccetti.

Then came a release from another business group, the state branch of the National Federation of Independent Businesses which, perhaps getting word of a pile on, went after DiNapoli, saying "The Comptroller's continuous attack on the proposed Tier VI provision fails the smell test."

Next up: Unshackle Upstate, representing largely western New York businesses, who said: ""The Comptroller is looking out for his own politics rather than the good of the state." (DiNapoli has long had heavy support from public sector unions who are the leading opponents of changing the pension system).

Then Binghamton Mayor Matthew Ryan came to DiNapoli's defense, arguing that "replacing defined benefit pensions with 401(k)'s will put workers' retirement security in danger."

The AFL-CIO's Mario Cilento chimed in, saying: "The Comptroller should be commended for his courage in standing-up for working men and women."

And DiNapoli himself weighed in, saying "I haven't seen such a coordinated attack since Francesca was voted off Survivor."

As of this writing, about 6 pm, the battle rages on with the Public Employees Federation putting out a release with union President Ken Brynien saying: "Tom DiNapoli is talking about the facts, and the facts show our defined benefit-pension system is the best way to provide retirement security."

Here are the battling op-eds, releases and e-blasts:

From Briccetti:

Updated: February 13, 2012, 11:04 AM

We need to enact pension reform, and we need to do it now.

New York has one of the highest pension burdens in the nation — second only to Alaska — and it's about to get worse: The state's (i. e., taxpayers') required payment will soon skyrocket from its current level at $1.5 billion to $2 billion in 2014.

The aging baby boomer population is one of the reasons behind this tremendous increase in pension costs — 2011 saw the first wave of these individuals reach retirement age. According to the U.S. Census, the number of Americans age 65 and older is projected to grow by more than 50 percent between 2010 and 2050, while the total U.S. population is projected to grow 42 percent in that same time period.

What does this mean for New York? Our current pension system is already unsustainable, and the generational surge in retirees will mean that our younger population will be forced to carry the fiscal burden.

At a time when we are focused on growing our economy and increasing the number of good-paying, private sector jobs in New York, it seems counter-intuitive to maintain a pension system that is hurting taxpayers and businesses and helping to drive away our best and our brightest.

The commonsense proposal for a Tier VI retirement system put forth by Gov. Andrew M. Cuomo would provide long-overdue relief to business owners, taxpayers, school districts and municipalities across the state by saving a hefty $123 billion over the next 30 years.

Cuomo's plan would not affect current employees, and the new tier would still offer a defined benefits system for the future work force — one that eliminates the use of padding tricks like overtime in pension calculations.

The opportunity to enroll in a 401kstyle retirement account would also be a new option available to new employees, providing them with "portable" benefits if they change careers.

The Business Council, along with other business, local government and education groups, has advocated for pension reform through the Let NY Work Coalition. In November, the coalition set forth a six-point agenda for real mandate relief that included making the pension system predictable and affordable.

The enactment of Tier V, which took effect in 2010, was a good first step toward reining in the astronomical cost of New York's pension system. The Business Council strongly supports Cuomo's proposal for Tier VI, which will help continue moving New York along the path to financial stability and renewed economic growth.

Heather Briccetti is president and CEO of the Business Council of New York State.

From the NFIB

Mike Durant, NY State Director for the National Federation of Independent Business (NFIB), today issued the following statement in response to State Comptroller Tom DiNapoli, who has aggressively criticized efforts to reform the public employee pension system:

"The Comptroller's continuous attack on the proposed Tier VI provision fails the smell test.

"Comptroller DiNapoli is supposed to be to looking out for the fiscal health of the state, and the key to preserving our financial security is reforming our pension system, not kowtowing to special interests for personal political gains.

"The fact of the matter is the Governor's plan puts taxpayers first while offering the flexibility of a 401K style plan for the future public workforce. Government needs to right-size and adapt when circumstances require, and that is what Tier VI aims to achieve."

And from Unshackle:

"The Comptroller is looking out for his own politics rather than the good of the state. What he is effectively saying is he'd prefer to subject the taxpayers of New York State to the volatility of the stock market, and our property taxes demonstrate how well that has been working, rather than back a reasonable plan that begins to lessen the risks assumed by the taxpayers.

The Comptroller fails to acknowledge that roughly 90 percent of the population of New York does not have a guaranteed retirement option. It is time he takes a step back and looks at what is best for all New Yorkers, not just a few. Someone should point that out the next time he runs for reelection."

And starting the counter-attack, this from Binghamton's
Ryan, who also links to a piece that ran in the Times Union last week

"The facts speak for themselves: replacing defined benefit pensions with 401(k)'s will put workers' retirement security in danger. That would strain not only seniors and their families, but also our economy as a whole—and everyone would pay the consequences. This may not trouble those who stand to profit from these problems, but it contradicts fiscal responsibility, common sense and our core values as New Yorkers. We deserve better. We deserve the security that defined benefit pensions provide and nothing less."

Click here for Mayor Ryan's Op-Ed in the Albany Times Union last Thursday, 401(k)'s aren't a retirement plan to bank on.

The AFL-CIO

Today, New York State Comptroller Tom DiNapoli came under attack for his defense of middle class retirement security. As sole trustee of one of the largest pension systems in the country, the Comptroller has more credibility on the issue of defined-benefit pensions than anyone in our state. Moreover, he has a duty to protect the economic well-being of the members, retirees, and beneficiaries of the pension system. As such, he has presented a reasoned case based on the facts. Unfortunately, he is being castigated for doing the job he was elected to do.

401(k)s simply do not provide workers with the predictability and reliability of a defined-benefit pension, and on their own are not a viable option to allow workers to retire with dignity. The Comptroller should be commended for his courage in standing-up for working men and women, rather than criticized by those who simply want to accelerate the race to the bottom.

And from PEF

Albany – The New York State Public Employees Federation (PEF) today commended State Comptroller Tom DiNapoli for his stand in favor of a secure pension fund for public workers.

"Tom DiNapoli is talking about the facts, and the facts show our defined benefit-pension system is the best way to provide retirement security," said PEF President Ken Brynien.

"Meanwhile, the highly paid lobbyists for millionaires in the Business Council and other right-wing groups are trying to take money out of the pockets of nurses, firefighters and other workers, so Wall Street can further enrich itself at the expense of the middle class.

"I understand why the supporters of Tier 6 are afraid of the truth, because the truth is their plan will hurt the average worker and make retirement with dignity an impossibility.

"They are attacking Comptroller DiNapoli because he simply set out the real facts, as he is obligated to do as a fiduciary:

• The average pension in the State Retirement System is $19,151 per year;
• 76 percent of these pensions are less than $30,000;
• When Tier 6 was adopted two years ago, the governor 's Division of Budget projected it would reduce pension costs for state and local government by more than $35 billion over 30 years; and
• We don't need a Tier 6 to cut pension costs, we just need to let Tier 5 work.

"The millionaires and lobbyists who want to take away the hope of a secure retirement from hard-working nurses, firefighters, teachers and other workers should be ashamed," said Brynien.

"Tom DiNapoli has been recognized nationally for having one of the best-managed state pension funds. Weare proud New York has a comptroller who tells the truth and stands up for the rights of people who work for
a living."

PEF is the state's second-largest state-employee union, representing 54,000 professional, scientific and technical employees, and other public and private employees.

And here is the response from DiNapoli:

I haven't seen such a coordinated attack since Francesca was voted off Survivor.

I stand firmly behind my position that defined contribution plans are not adequate for retirement security for public or private workers. Study after study has shown that defined benefit plans cost less in the long run than 401k style plans and perform better. It is unconscionable that so many New Yorkers and Americans do not have a secure retirement, often times because corporations have stripped retirement plans for short-term fiscal gains.

This is a discussion that deserves more than sound bites. Too often in New York we have made policy at the extremes, when costs were usually low or high. The best public policy comes from thoughtful discussions, accurate and realistic presentation of the facts, and a long-term view.

This Week In Albany

February 17, 2012

ACT NOW: Your Retirement Security is at Risk!

Governor Cuomo's 401(k) option will take money away from the New York State and Local Retirement System (NYSLRS) which will ultimately put your pension in jeopardy.  Please call 1-877-255-9417 and take the time to speak to your legislators to tell them to oppose Tier 6.

Get your Family and Friends to Contact their Legislators

A secure retirement is already slipping away from American workers.  Public employees provide essential services to the people of our state everyday. Your retirement security should not be jeopardized to pay for Wall Street's collapse. Have your friends, family and neighbors call their legislators to Oppose Tier 6 NOW!

CSEA Opposes Dangerous OCFS Budget Proposal

CSEA submitted testimony to the Senate Finance and Assembly Ways & Means Committee in opposition to a state budget proposal that would release violent youths from OCFS facilities and place them back in their communities.

Under this proposal, youths from New York City who have been adjudicated of violent crimes and are currently in OCFS facilities could be moved back to their home communities.  These clients would receive treatment at not-for-profit providers who do not have the trained staff or resources to properly treat them.  These clients pose a direct danger to staff at these facilities as well as the surrounding community.  CSEA has grave concerns about how this proposal will impact public safety and is asking the legislature to reject it.

Congress Agrees on Payroll Tax Cut Extension

The U.S. Senate and the House of Representatives have come to a compromise to renew a payroll tax cut for 160 million workers.  The deal also renews expiring jobless benefits for the long-term unemployed, as well as prevents a payment cut for doctors who treat Medicare payments.

Without this compromise, workers would see their Social Security payroll tax contribution increase from 4.2% of salary to 6.2%.  This tax cuts gives the average family an extra $1,000 in their pay checks this year.