Thursday, January 20, 2011

IDC Releases Mandate Relief 

Proposals Level Local Gov't Playing Field, Lower Costs & Save Taxpayer Dollars
The Independent Democratic Conference today unveiled a series of common sense recommendations that will help local governments tackle state mandates, save money, and help ease the burden on taxpayers 

    These recommendations, which were made in consultation with the New York State Conference of Mayors and Municipal Officials, include helping municipalities save money by revamping laws that allow local governments enter into employee benefit cooperatives; cut down on the costs of prescription drug access; and enacting legislation to allow communities to hold building code scofflaws accountable.  
     The proposals include: 
 Revamping laws governing the establishment of Inter-Municipal Employee Benefit Cooperatives. 
 "Encouraging municipalities to pool their employees under one health care plan will allow them the benefit of more purchasing power, better rates, and lower costs that will be passed onto taxpayers," Senator David Carlucci (D-Rockland) said.  
 The IDC is drafting legislation that will simplify the process of having adjoining local governments form local benefit cooperatives and help reduce overall costs. These cooperatives allow municipalities to combine forces, consolidate duplicated services and manage employee health care, payroll and other administrative services.  
 This proposed legislation will also permit inter-municipal employee benefit managers to subscribe to lower cost health insurance products such as Healthy NY. Healthy NY is a comprehensive health insurance product that must be offered by all HMOs in New York to qualified sole-proprietors and small businesses. These products can be up to 7 percent cheaper when compared to other HMO products. 
 These cooperatives would also encourage higher participation rates in employee health benefit programs such as New York State Health Insurance Program (NYSHIP). They would additionally allow lower costs for employee benefits such as tax deferred retirement benefit plans, health flex plans, and tax deferred child care expenses. 
 Cut Down Prescription Drug Costs
 The IDC is additionally working on legislation to allow local governments, many who do not participate in NYSHIP, to buy-in to its comparatively less expensive Empire prescription drug plan, without having to buy into the whole medical/hospital NYSHIP plan. 
 Holding Building Code Scofflaws Accountable
 The IDC will be introducing legislation to allow municipalities to attach unpaid building code and environmental fines to the offending property's tax bill.
 This legislation will end the current system where unscrupulous corporations, LLCs and other scofflaws ignore the rules and taxpayers pay the price of living in communities scarred by eyesores that drive down the value of their homes,” Senator Jeffery D. Klein, (D-Bronx/ Westchester), said. “This bill will be a win-win that improves the quality of life for our constituents and grants relief to local governments.”
 Protect the Local Government Management Improvement Fund from Funding Raids 
 The fund was created in 1989 to help local governments comply with the mandated records management, and is funded by money collected by county clerks on every deed and mortgage filed in their offices. Over the years, the fund has been swept to fill budget gaps. This not only puts a strain on the ability of the municipality to comply with the mandate, but also misappropriates taxes paid by New Yorkers for access to these documents . 
 Explore Remedies to the Current Lack of of Municipal Legal Cost Reimbursement
 A plaintiff can sue any municipality as long as the statutory notice requirements are complied with. Oftentimes plaintiffs, in a rush to comply, file suit against the wrong municipality. Despite this mistake, municipalities are still obligated to expend money and resources defending the lawsuit.
 Peter Baynes, NYCOM Executive Director, said: "Local governments across New York are facing unprecedented fiscal challenges. Increased flexibility and the ability to reduce municipal expenses is essential to the prosperity of local governments and the State.  While the Conference of Mayors believes that the Legislature must take bold steps to finally reform the real cost drivers that plague local finances -- particularly those in the workforce arena -- we support efforts, such as this, to produce cost savings in other areas of municipal budgets as well."       
 Senator David J. Valesky, (D-Oneida), said: "Unfunded mandates put added pressure on local municipalities. In these difficult economic times, we need to evaluate each--large and small--to determine their usefulness and necessity,”    
 Senator Diane Savino, (D-Staten Island/ Brooklyn), said: “Everyone recognizes that the current system isn't working,” said . “As members of the Independent Democratic Conference, we are committed finding solutions to get New York back on the right track. I believe that these common-sense proposals are part of a much needed step in that direction.”


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