Skies might have been dreary but the atmosphere in Poughkeepsie”™s Grandview was cheery ”“ and a tad bit leery ”“ as Gov. Eliot Spitzer met with mid-Hudson business leaders for the first time since being elected.
Speaking to more than 400 attendees at the Dutchess County Regional Chamber of Commerce breakfast Jan. 30, Spitzer gave an overview of his proposed $120.6Â billion 2007-2008Â budget and fielded several questions from the audience.
Speaking on several key issues that are part of the 2008 package presented to the state Legislature, Spitzer focused on the issues mid-Hudsoners wanted to hear the most about: How will his spending plan help them in staying afloat in a slowly sinking economy.
“New York”™s perfect storm of unaffordability has made business unaffordable to be here,” said Spitzer. He acknowledged the state of the state”™s overall economy: “We are in a dicey financial situation. We have a $4.8 billion deficit, and we have a plan to close that deficit.
“The hard part,” continued the governor, “is due to the fascist governmental process. The transformation has been bumpy. Dislocation is painful, but inevitable. New York has turned the corner, and we have put ourselves on a very successful trajectory.”
On health care, Spitzer”™s budget calls for a need to rein in spending. “$36 billion of the 2007 budget was for Medicaid,” he said. “We brought down Medicaid spending by 1.9 percent last year.” He called for refiguring reimbursement rates that fit the true costs.
Saying primary care physicians go elsewhere because of inequitable reimbursement rates, “We are pushing people into emergency rooms. Let”™s start paying what we believe is appropriate. I can”™t promise we can cut spending but I believe we can rein it in by 1 to 2 percent a year.”
Spitzer said universal health care is intricate and has baffled four presidencies. “Right now it is not doable or affordable,” he said.
Child Health Plus Insurance will remain in place in New York, with $37 billion earmarked in the budget to pay for it. S-CHIPS participation will be based on 400 percent of the federal poverty level, which translates to $82,000 a year for a family of four in New York. “Some might ask why people making that much money cannot afford private insurance,” Spitzer said. “Private insurance rates are exorbitant. These families will pay into the program. It is not free, but it is affordable.”
Spitzer told business leaders that changes to workers”™ compensation saved $1.5 billion in 2007, and reforming the Wicks”™ Law is on the agenda for 2008.
“The bane of New York is the property taxes,” said the governor. While the STAR program will return $4.7 billion to property owners across the state and there are proposals to cap property taxes and Medicaid spending, Spitzer acknowledged it is not enough. “The commission I have formed to come up with a solution must have their answer on my desk by May 15. During the years 2001 through 2007, property taxes went up 53 percent, but real income growth rose only 27 percent; people understand the two move in lockstep. When are you taxing people at a 2-to-1 ratio, we will continue to lose them.”
While many in the mid-Hudson region feel “forgotten” by the governor in his ambitious state spending plan, Spitzer pointed to Stewart International Airport, the Bellayre Mountain resort project and the infusion of funds into Walkway Over the Hudson as part of his economic plans to bring jobs and disposable income to the region. “We are also talking to the DOT about improving rail service, particularly high-speed rail service, on the Hudson Valley lines, and rail service into Stewart. Stewart Airport is s tremendous economic engine for the Hudson Valley. Will it become the fourth major airport? People may not like to hear that, but it will be a tremendous boost.”
Dr. Daniel Aronson, CEO of Vassar Brothers Medical Center, asked if credible health care reform should be done on a national or state-by-state basis. “I don”™t have a crystal ball,” Spitzer replied. “Four presidencies have tried and failed.” Spitzer said California is trying to accomplish a health plan “and as I speak, I think it is coming apart at the seams.”
Charles Freni, senior vice president of customer services for Central Hudson, said his company “applauds the energy efficiency package proposed. What role can we play?” Spitzer urged utilities to educate their consumers by encouraging energy-conservation measures and freely distributing information to make it possible. Spitzer also encouraged a switchover to time-of-use (net) metering. “The switch to net metering will not be cheap, but it is effective and saves the state money and the consumer money.”
Spitzer also encouraged the use of solar panels to lessen costs to users and put energy back into the grid when not being used by the business or home. “Anything we can do to avoid building yet another power plant would be a contribution.”
Anne Conroy, president of the Dutchess County Economic Development Corporation, was reassured that all industrial development agencies would continue operating despite a January 31 deadline to derail some of their bonding ability. “There is no question that IDA authority will be extended, but there are too many IDAs,” Spitzer said.Â
Todd Brinckerhoff, president of Brinckerhoff & Neuville Insurance warned Spitzer, “Do not lump Dutchess County”™s IDA in with others. Our history is not going to be rolled under the rug. Don”™t throw us into the mix and destroy valuable projects.”
When it came to school taxes, Frank Pepe, superintendent of Arlington Central School District, said “We have the lowest taxes in the Hudson Valley and we are keeping school spending low; but the wealth of the home is not indicative of its income. How can we change the disparity in property taxes?”
Spitzer told Pepe the newly formed commission, led by former Nassau County Executive Tom Suozzi, “will tackle that very problem. It is central to our thinking, and they are charged with having a solid proposal to ease the property tax burden on my desk by May 15. We”™ll try to get it right.”
Joyce Minard, president of New Paltz Regional Chamber of Commerce, urged Spitzer “not to forget the Tech Valley Coalition” and asked him to consider an interpretative center for Exit 18 on the Thruway. If Walkway on the Hudson becomes the reality the governor is rooting for, an interpretive center with Tech Valley information at Exit 18 would be a plus for the mid-Hudson, said Minard.
Charles North, president of the Dutchess County Regional Chamber of Commerce, said “I”™m glad that the governor came to visit Dutchess County. He sounded like a true business person, and he certainly related it to the business community. If he continues to stick to that formula and runs New York like a business, I am sure he”™ll be successful.”
