Fair Share and Federal Stimulus Bill Together Will Jumpstart State Economy and Protect Education, Health Care, Other Services

For Immediate Release: February 10, 2009

Click here to download a PDF of this release.

Albany – Citizen Action of New York praised a group of State Senators for introducing today a “Fair Share Tax Reform” bill that would raise more than $6 billion in new revenue by increasing taxes on the 2% of wealthy New Yorkers that make more than $250,000 a year. On a day when the federal economic stimulus bill faces a crucial vote in the U.S. Senate, the social justice organization said that the state must work with the Obama administration to jumpstart the state economy and protect vital state services like education and health care.

“The question comes down to whether we should ask wealthy New Yorkers to pay a small amount in additional taxes to protect average New Yorkers facing job losses, foreclosures, school cuts and property tax increases,” said Karen Scharff, Citizen Action Executive Director. “The proposed state cuts in programs like education and health care will have a devastating impact on the quality of life for all New Yorkers unless the state raises significant new revenue.”

Currently, every New Yorker who earns more than $40,000 pays the same marginal tax rate of 6.85%. The “Fair Share Tax Reform” bill, introduced today by Eric Schneiderman and other Senators from across the state, would reverse a 30-year pattern of reducing taxes on the wealthiest New Yorkers by creating new income brackets for individuals or families making more than $250,000, $500,000 and $1,000,000.

“It’s much fairer to ask a person making $300,000 per year to give up the cost of a high-end dinner in midtown Manhattan than to layoff teachers at public schools in his neighborhood, forcing children into larger classes,” said Scharff. “The state budget deficit is forcing our state leaders to decide whether our priority is protecting wealthy New Yorkers who can easily afford a bit more in taxes, or working families who depend on basic services like education and health care.”

Under the bill, a person making $300,000 per year in adjusted gross income would have to pay $71 more in taxes each week after federal deductions are factored in. The Governor’s budget has proposed a $2.5 billion cut to education funding.

“Economists say that the worst thing states can do in an economic downturn is to cut services in our communities that provide jobs. Fair Share Tax Reform will enable our state to work in tandem with President Obama to stimulate the economy, instead of cutting education, libraries, and aid to our cities,” said Scharff.

Citizen Action is a statewide organization that organizes for social, racial, economic, and environmental justice. Citizen Action maintains a web page to involve the general public in the state budget fight: www.fightthecuts.org.

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An Action Alert from Karen Scharff, Executive Director

Dear Friend:

With Senate passage of an economic stimulus bill later today, we’ve advanced to the next leg of the battle – getting the House and Senate to agree on identical language for the bill.

President Obama has made it clear that an economic recovery bill must pass soon, or else the US economy will go into a “negative spiral” causing our economic problems to worsen at an even greater pace.

Unfortunately, negotiations among Senators last week resulted in reductions in spending of over $100 billion (education and state aid spending) – money that would create or save jobs, and fund our schools.

With House and Senate negotiations happening now, it’s critical that we push hard to get a stimulus bill that will stimulate the economy, create jobs, and help to close our budget gap here in New York. Click here to send your Representative in Congress a message now!

Last week, after the terms of the Senate bill were announced, Nobel prize-winning economist Paul Krugman said of the bill, “the changes to the Senate bill will ensure that we have at least 600,000 fewer Americans employed over the next two years.”1.

Members of the House of Representatives must work to ensure that state aid and education funds stay in the final version of the stimulus bill. We need a stimulus bill that will create or save the most number of jobs, and includes state and local funding for education.

Americans can no longer afford to wait this economic crisis out. We need action, we need bold action, and we need it now!

Click here to send your message now.

And be sure to forward this message to your friends and family!

Thanks,

Karen Scharff
Executive Director
Citizen Action of New York

1. Paul Krugman, What the Centrists Have Wrought, 7 February 2009.

From the New York Times.

Clikc here for the original article.

February 10, 2009

By JEREMY W. PETERS

ALBANY — A plan to raise income taxes on wealthy New Yorkers is gaining momentum in the State Legislature as lawmakers continue to grapple with the state’s gaping budget deficit.

A group of Senate Democrats plans to introduce a bill on Tuesday that would impose an income tax of 10.3 percent on the highest-earning New Yorkers, a rise of 3.45 percentage points, and increase taxes on all households that earn more than $250,000 a year.

The plan, which supporters estimated could bring in up to $6 billion annually to the depleted state treasury, is one of several options Albany lawmakers are considering as an alternative to the reductions in social services and smaller, more focused tax increases that Gov. David A. Paterson has proposed.

State legislators and the governor are finding themselves under increasing pressure — from the state’s powerful labor unions and liberal groups in particular — to raise taxes on the wealthy.

Op-Ed from The Buffalo News

02/05/09 06:48 AM

By Jeffrey M. Conrad

Most people understand the severity of the current fiscal crisis. Investments have shrunk, retirements have been rescheduled, jobs and homes have been lost and there is no end in sight. This is all on the heels of additional troubling news that school funding in New York State is being threatened, which in my opinion is the worst news that we can face.

The implications of a reduction in school funding will further worsen the economic climate for years to come. Education is the greatest asset we have during these difficult financial times, from elementary school to post-secondary education. If funding for education is limited, teachers will be laid off, class sizes will increase, scores on tests will dramatically decrease and little investment in curriculum and infrastructure will occur.

Education is not cheap. New York teachers are required to follow rigid educational requirements in college and must meet mandatory state standards before becoming a teacher. They can put in 60-hour weeks when lesson planning, grading, tutoring after school and extracurricular activities are included. The time and money invested by good educators is substantial. That is why laying them off would hurt the system.

continued... click "read more"

The Governor's post State of the State upstate town hall meeting for Binghamton was postponed to allow the Governor to travel to DC to watch President Obama sign SCHIP legislation.

The meeting has been rescheduled for Wednesday, February 11th at 5:30pm.

It will be held at Broome County Community College, 901 Upper Front Street, North Entrance, Binghamton, NY.

Click here to RSVP if you want to ask a question: http://www.ny.gov/governor/townhalls/register.php

An Action Alert From Karen Scharff, Executive Director

Dear Friend:

The Senate is going to vote this week on Obama’s economic stimulus plan. This plan is exactly what we need: an investment in schools, infrastructure, health care and energy that will create millions of jobs.

Because it’s so important that this bill passes, it’s doubly important that you take action right now. Call Senators Schumer and Gillibrand – tell them that we need this economic recovery bill passed now! The bill is in trouble in the Senate, we need them to push hard to get it passed.

Call Senators Schumer and Gillibrand Now!
202.224.3121

Please deliver this message:

"I urge you, as my Senator, to fight for passage of the American Recovery and Reinvestment Plan to deal with the economic crisis. This plan includes sorely needed funds for New York and other states that are facing severe budget shortfalls, additional payments to low- and middle-income households like food stamps and for children's health care, and investments in alternative energy, education and public infrastructure. We need Congress to create jobs and help low and moderate income people -- not provide tax cuts for business!"

Every call makes a difference – so please forward this message to your friends and family too.

Thanks for your work,

Karen Scharff
Executive Director
Citizen Action of New York

Video from today's press conference:

VIDEO COMING VERY SOON!

For immediate release, February 2, 2009

Click here to download a PDF of this release.

Federal Stimulus On the Way! Groups Urge Legislature to Reconsider Cuts

Deficit Reduction Plan Will Needlessly Hurt the Economy, Cut Jobs and Put Vulnerable Populations at Further Risk in our Fragile Economy

(Albany, NY) The Better Choice Budget Coalition, the One New York: Fighting for Fairness Coalition, Citizen Action of New York and many others groups joined forces today to tell the Governor and the Legislature to reject the current Deficit Reduction Plan and wait for federal relief which could be agreed upon as early as this week.
 
The plan being considered by the governor and legislative leaders to close that gap is drawing passionate opposition from non-profit service providers, environmental and education groups, religious leaders, and labor leaders, who gathered today to call attention to the so-called dark side of the plan.

While the details of the plan may be subject to change, the legislation (A.163/S.250) identifies programs that will be cut by nearly half, including child care programs, HIV/AIDS programs, services for older adults, services for runaway and homeless youth, chronic homelessness, after school programs, newborn home visiting, and funds for community colleges. The cuts would be immediate and affect many existing contracts the state already has in place.

The groups say that the harm these cuts would wreak has not been seriously considered, and that there are gap-closing strategies that would avoid the harshest impacts. They also point to the Federal Stimulus Package—now being debated in Congress—which is expressly intended to help states reduce current as well as future deficits.

Groups Urge Legislature to Reconsider Cuts

Deficit Reduction Plan Will Needlessly Hurt the Economy, Cut Jobs and Put Vulnerable Populations at Further Risk in our Fragile Economy

Who: Members of the Better Choice Budget Campaign; One New York: Fighting for Fairness Coalition; Citizen Action of New York; Schuyler Center for Analysis and Advocacy; and others.

Speakers

Ron Deutsch, NYFF
Bob Cohen, CANY
Karen Schimke, SCAA
Allison Sesso, Human Services Council of NY
Kristin Brown, Empire Justice Center
Alan Lubin, NYSUT
Ivette Alfonso, AQE
Mark Dunlea, HANNYS

When: February 2, 2009 at 12:00 Noon

Where: LCA Press Room, LOB Room 130

Why: While the details of the deficit reduction plan may be subject to change, the proposed legislation (A.163/S.250) identifies programs that will be cut by nearly half, including: child care programs, HIV/AIDS programs, services for older adults, services for runaway and homeless youth, after school programs, newborn home visiting, and funds for community colleges. The cuts would be immediate, and would affect many existing contracts the state already has in place.

Speakers from a wide range of advocacy groups and non-profit organizations will explain the harm these cuts would do, and outline gap-closing strategies that would avoid the harshest impacts. They will also urge that the legislature refrain from drastic cuts until passage of the Federal Stimulus Package, which is just days away, and expressly intended to help states reduce current as well as future deficits.

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Use the player below to hear Bob Cohen's radio interview with the Public News Service, which can be heard on radio stations around the state today.