by Sen. James L. Seward

A better performing Empire State is on the horizon thanks to a renewed spirit of cooperation in Albany.

There was a definite sense of determination during the 2011 legislative session to reach major milestones and the success stories were abundant.

An on-time state budget reduced state spending, closed a $10 billion deficit, streamlined state government and has accomplished these feats without new taxes or borrowing.

The creation of significant private sector job growth tools, sweeping ethics reforms and a rational tuition policy for our SUNY schools.

Finally, the property tax cap along with mandate relief (more on that later) were signed into law.

The cap helps people afford to stay in their homes and $127 million in immediate cost savings assists local governments and schools as they budget for their needs.

The recent extraordinary session was further evidence that New York is on the right path.

The enactment of the Middle Class Tax Cut & Job Creation Plan means lower taxes—$690 million worth—for hard working, middle class New Yorkers.

That’s money that will flow through our local economy and create jobs.

At the same time, we are cutting taxes for manufacturers improving their ability to add to their employment rolls.

The session also included vital assistance for communities still recovering from Hurricane Irene and Tropical Storm Lee.

Homeowners, family farms and small businesses, not to mention local governments, have been overwhelmed with the monumental task of rebuilding and government assistance to help make them whole is imperative.

The extraordinary session can be seen as a bridge to 2012 where more challenges await.

Among my top priorities— Medicaid reform.

I mentioned mandate relief earlier, well, Medicaid is the mother of all mandates.

On average, Medicaid accounts for 45 percent of an individual counties’ local property tax levy.

It is simply unsustainable.

I am co-sponsoring legislation that will reform the Medicaid system through a phased-in state takeover—gradually eliminating the local share paid by county governments.

The proposal provides immediate relief for counties, freezing local Medicaid costs at the current level and eliminating the automatic three percent annual spending increase currently required by statute.

Along with freeing up local resources and reducing taxes, a state takeover will also lead to improved fraud control and help streamline the program, which costs $1 billion a week.

I am also joining a push to modify the formula used to determine public school-aid.

The current funding system is outdated and shortchanges many of our upstate districts that are struggling to keep taxes in check while providing programs needed to ensure students are able to compete and succeed. Continuing to enhance the state’s economy will also be a focal point.

Recently, $785 million that was earmarked in the 2011 budget was distributed across the state through the regional economic development council initiative.

A number of projects throughout the region received grant funding and I look forward to watching these success stories blossom.

The regional approach brought local stakeholders to the table and is steering grants to our most promising projects.

The governor and legislative leaders have already agreed in principle to fund another round of grants utilizing this process and I am confident even more worthy area projects will benefit. Regulatory reform will also help improve our upstate business climate.

If New York is going to attract new companies and assist existing businesses expand, over-regulation has to stop.

Government red tape and unnecessary regulations are not the enhancements CEOs look for when deciding to open shop.

In order to encourage private sector growth New York has to be more business friendly.

Additional steps to reduce state spending and lower taxes are needed as well.

The job is underway but far from finished.

The success stories of 2011 have established a solid foundation for 2012.

Working with my legislative partners and the governor, I am confident we can build on our accomplishments and continue to construct a framework of success for upstate and all of New York.