John Faso Unveils Relief Agenda for Property Taxpayers and Local Governments

    Earlier this week, John Faso outlined his plans to bring immediate tax and mandate relief to New York’s homeowners and local governments at the Conference of Mayor’s Annual Meeting. Faso’s plan took aim at the high cost of state laws and mandates on local governments that raise property taxes. Among his proposals are:

  • Amending the Triborough Amendment of the Taylor Law to ensure that taxpayers’ ability-to-pay is a factor in arbitration decisions;
  • Requiring any community under the jurisdiction of a state control board to revise contracts and benefits similar to a bankruptcy in the private sector;
  • Reforming the Wicks Law which adds 10-20% to public construction costs;
  • Exempting projects under $1 million from prevailing wage requirements;
  • Establishing an option for localities and school districts to use 401(k) defined contribution systems instead of defined benefit systems for new employees, and,
  • Reforming the Insurance Law to allow municipal and private employers to offer Health Savings Accounts.

    • In April, Faso announced a three-point school property tax relief plan that would double STAR exemptions, cap school property taxes, and provide school districts mandate relief. That plan would provide nearly $7 billion in tax cuts and could save school property taxpayers more than $19 billion over the next six years.

    Spitzer Confuses Tax Cuts with Tax Hikes
    Eliot Spitzer this week released his tax plan which not only falls short of meaningful tax relief for New Yorkers, but would actually raise taxes if implemented.

    The Spitzer plan raises STAR benefits but includes no mechanism to hold down local school spending, an omission that will ultimately lead to even greater property tax hikes.

    Spitzer also reversed his position on the expanded bottle bill that he earlier endorsed. The bill would direct unclaimed deposits to the Environmental Protection Fund, not the General Fund as he recommended in announcing his plan.

    His plan also calls for a raid on state authority funds and a tax increase on the business community. Spitzer’s raid on public authorities essentially “sweeps” their money into the general fund.

    Any extra money that authorities do have should be used for legitimate capital projects, debt reduction, and reducing fares and tolls. Taking these funds will lead to higher costs for consumers, more debt, and lower quality services.

    This is the first time in memory that a candidate has proposed a fiscal gimmick to balance the budget prior to taking office.

FYI