September 7 , 2006 -
Material edited from www.bcnys.org by Dylan Skriloff
Governor vetoes union-backed changes to state's Taylor Law
Governor Pataki has vetoed a series of proposed changes to the
Taylor Law that would have driven taxes higher and harmed vital
public services.
The vetoes include S.3178, which would have given public-employee
union members automatic raises up to 2.5 percent a year--on top of
negotiated increases--if a union went a year without agreeing to a
new contract and the public employer was found not to be bargaining
in good faith. That bill would also weaken the Taylor Law's
penalties against public-employee strikes.
"The automatic penalties imposed upon public employers by this
bill...are excessive and would only serve to destroy the level
playing field required for fair negotiations," Governor Pataki said
in his veto message. "The substantial costs associated with the bill
would be borne by the already over-burdened taxpayers of this
state."
He also criticized the Legislature's plan to weaken anti-strike
provisions of the Taylor Law.
"Public employees and their representatives can never be justified
in taking illegal action that endangers the public and deprives them
of vital services," the Governor said. "If anything, time and
experience have demonstrated that even tougher penalties are
warranted for public employees who engage in illegal job actions and
endanger the public."
"We congratulate the Governor on standing up to the powerful
special-interest groups and vetoing this anti-taxpayer bill,"
Business Council President/CEO Daniel B. Walsh said. S.3178 and
related bills, he said "would have shifted the balance of
negotiating power in collective bargaining further away from public
employers and thus lead to higher taxpayer costs in new employee
contracts."
State's liability for retiree health care: $47 billion
New York taxpayers "owe" an estimated $47 billion or more to cover
health insurance for current and future state retirees, according to
a preliminary report by a consultant to the state Budget Division.
Those estimates are nearly the same as Albany's "net overall asset
condition," or combined value of assets and liabilities, the Budget
Division noted. The Office of the State Comptroller estimates the
state's net assets at $49.1 billion. That figure includes assets
such as park lands, office buildings and cash holdings, along with
debt, unpaid tax refunds and other liabilities, but excludes retiree
health costs.
The estimated obligation is included in the division's first
quarterly update to the state's 2006-07 financial plan. Under newly
required accounting rules, state and local governments across the
country are starting to estimate the cost of providing health
coverage to retired public employees. Like most states, New York
pays such costs on a year-to-year basis and has never calculated its
total, long-term obligation to current and future retirees.
Counties, cities, school districts and other public employers in New
York and across the country will be required to estimate their
accumulated liability for retiree health-care costs in coming years.
Governments with total annual revenues of $100 million or more must
report such liability starting in 2007. Those with revenues of $10
million to $100 million must report starting in 2008, and smaller
governments starting in 2009.
New York City officials have estimated the city's liability for
retiree health care at $50 billion or more. Including other
localities and school districts, the overall statewide cost for
taxpayers may approach $250 billion.
The Budget Division's new report projects a $3.2 billion gap between
expected spending and revenues for the fiscal year starting April 1,
and a shortfall of $5.4 billion the following year. Those estimates
do not include projected gaps in funding for the Health Care Reform
Act program of $900 million in 2007-08 and $2.2 billion the
following year.
SURVEY: HEALTH-INSURANCE COSTS FOR NEW YORK'S EMPLOYERS, EMPLOYEES
CONTINUE TO INCREASE--ALTHOUGH THE PACE IS MODERATING
Survey: Health-insurance costs for New York's employers, employees continue to increase -- although the pace is moderating
ALBANY—For the sixth straight year, The Business Council's annual
survey of employers' compensation practices shows double-digit
increases in employers' average health-insurance costs. But there
are signs that pressure on these employer costs is moderating
slightly.
Some 77 percent of employers that responded to the survey reported
increases in their health-insurance premiums, with an average
increase of 12.3 percent, said Amy Kaminski, manager of marketing
programs for Compdata Surveys of Kansas City, which conducts the
survey on compensation practices for the Council.
Last year's survey showed that 84 percent of employers paid an
increase in health-insurance premiums, with an average increase of
12.7 percent.
Compdata Surveys, the survey company with the nation's largest
database on pay and benefits information, has published the survey
results in Compensation Data 2006 - New York, a 632-page book with
detailed information on New York State employers' pay and benefits
practices. Some 250 employers participated in the survey, which
reflects information on some 465,000 workers in New York State,
Kaminski said.
This increase in health insurance costs reflects a trend of many
years. In 2001, 2002, 2003, and 2004, the same annual survey showed
at least 70 percent of respondents reporting increases in their
health-insurance premiums, with the average increase in each of
those years at least 13 percent.
"But companies understand the financial burden this places on its
employees and are turning to alternative methods such as encouraging
healthy lifestyles to control costs," Kaminski said.
The survey shows that:
-
37.2 percent of New York employers increased employees'
portion of health insurance premiums. Last year, that figure was 43
percent.
-
23.4 percent of New York employers increased deductible
levels. Last year, the percentage was nearly 33 percent.
-
8.7 percent reduced benefits. Last year, the percentage was
8.1 percent.
About the Survey: Compensation Data is an annual survey of
compensation practices in New York and is conducted by Compdata
Surveys. The survey is the largest of its kind, with 506 job titles
ranging from entry-level positions to top executives. This is the
10th year CompData Surveys and The Business Council have partnered
to conduct this survey and publish its results.
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