In recent years, I have helped win passage of key measures that are starting to right New York State’s economic ship.
The once notorious atmosphere of dysfunction at the Capitol has evaporated, replaced with a new streak of accomplishments highlighted by four consecutive on-time state budgets.
Beyond the timeliness, the budgets have erased taxes and fees imposed when state government was under one-party rule, put a stop to out of control spending, and addressed issues that people talk to me about every day—property tax relief, education aid, and economic development.
The recent wins are paying dividends when it comes to our state’s fiscal health and the business world is taking notice—Moody’s Investors Service, Fitch Ratings and Standard and Poor’s all recently upgraded New York’s credit rating, and June marked the state’s 19th consecutive month of private sector job growth.
These positive economic achievements are a good base that we can build on provided we continue to advance financially sound economic policies.
Now is not the time to stray from the recent course.
That’s why I have joined my senate Republican colleagues in advancing a sensible plan to capitalize on a $3 billion settlement with BNP Paribas bank.
The funds are part of an overall $9 billion settlement paid by the French bank, resulting from repeated violations of U.S. sanctions.
Given the one-time, non-recurring nature of the settlement funds, the plan avoids wasteful, new and recurring expenditures.
Instead, the plan makes long-term investments in New York’s infrastructure, while also prudently accelerating scheduled tax reductions and spending commitments. Here are the three components:
1. Accelerate Tax Relief for New Yorkers: This initiative will provide significant new tax relief to millions of overburdened taxpayers, with a major focus on undoing some of the damage caused by the 124 new tax and fee increases that were enacted when senate Democrats controlled the chamber.
Over the past four years, I have helped roll back many of these onerous taxes; the BNP settlement funds provide the opportunity to go even further.
These tax cuts will include the immediate elimination of the senate Democrats’ 18-a energy tax increase and additional property tax relief to replace the STAR rebate checks eliminated by senate Democrats, among others.
2. Investing in New York’s Infrastructure: The senate Republican plan will help create thousands of new jobs by committing most of the funds to major new investments in New York State’s infrastructure.
From rebuilding local roads and bridges, to enhancing local college campuses, to key environmental initiatives, such as clean water projects and sewer upgrades in communities across the state, the plan will provide both short and long-term economic benefits throughout New York State.
The infrastructure plan will also be regionally balanced, and will help to address some of the damage caused by the senate Democrats’ unfair capital investment programs, which consistently shortchanged entire regions, such as Upstate New York, by eliminating the 5-year road and bridge capital plan.
3. Helping Local Schools and Property Taxpayers: The senate Republican plan will benefit our schools, our children and local property taxpayers by accelerating the complete elimination of the Gap Elimination Adjustment (GEA).
The GEA—a multi-year, multi-billion dollar budget-cutting scheme enacted by Senate Democrats in 2010—has severely hurt local school districts and property taxpayers.
The senate Republican plan would fulfill the promise to eliminate the $1 billion left of this unfair ruse which I voted against and have fought to end.
When a family is fortunate enough to receive an unexpected windfall, most use the dollars for their most pressing needs.
That’s exactly how New York State needs to apply this settlement.
Advancing the timetable on planned tax cuts, rebuilding local roads and bridges—particularly upstate, and paying back schools handcuffed by the unreasonable Gap Elimination Adjustment will produce real dividends now and repay hard-pressed taxpayers and small business owners who have sacrificed more than their fair share in recent years.