Memo

 

TO:                 State Senators and Assembly Members

 

DATE:           February 8, 2008

 

RE:                 SFY 2008-09 Budget Priorities of the Public Employees Federation

 

 

PEF asks the Legislature to modify the Governor’s budget in these areas:

 

Office of Children And Family Services (OCFS) - the Governor proposes to close the following OCFS youth facilities: Adirondack Wilderness, Auburn, Brace, Great Valley and Pyramid, and to downsize the Lansing youth facility. Closures are scheduled to occur in January, 2009 and will result in the elimination of 254 positions, 71 of which are held by PEF members (not including any of the 24 PEF members that may be affected by the Lansing downsizing).

 

PEF position: PEF is opposed to these proposed closures. In some cases, this may result in young people being placed in privately operated programs that are not really able to address their needs, leading to greater recidivism and often to higher costs. One-third of youth placed by OCFS in private facilities, fail in these placements and are transferred to OCFS facilities.  If the State wants to reduce recidivism then they should reduce teacher/student and counselor/youth ratios in OCFS facilities so more intensive services can be provided. In addition, the need for residential facilities for juvenile offenders is cyclical and recent evidence points to an increase n juvenile crime. The New York City Police reported that juvenile arrests of youth under 15 increased 8% over last year and that there has been a 31% increase in the number of youth admitted to juvenile detention centers by police in New York City over the last three years. The State should not close facilities that may be needed in the future, particularly when some youth have so many severe mental, educational, addiction, and other social problems that they cannot be safely and successfully treated in the community. Although the department has committed to working with PEF to find positions for the displaced employees, many of these employees may have to relocate far from their current homes. These closures will have a serious negative impact on workers, their families and their communities. The Executive Budget estimates $3.4 million in savings from these closures in FY 2008-09 which will grow to $16.3 million in SFY2009-10. Estimated Cost: Between $2.5 and $3.4 million to restore the positions and keep all facilities open.

 

Department of Correctional Services (DOCS) - the Governor proposes to close three minimum security DOCS facilities - Camp Gabriels, Camp McGregor and Camp Pharsalia, and one medium security facility- Hudson Correctional Facility. Closures are scheduled to occur in January, 2009 and will result in the elimination of 541 positions, 71 of which are held by PEF members.  DOCS is adding new positions which reduce the net loss of positions to 153.

 

PEF position: PEF is opposed to these proposed closures. Currently DOCS has 6,700 double bunks in medium security facilities, many of which were not constructed to accommodate double-bunks. DOCS is also using a large number of temporary beds in their facilities. DOCS should not close facilities’ when they are using a large number of temporary and double bunk beds.  In addition, minimum and medium security beds should be more widely used to transition inmates out of maximum security facilities and into our communities. As with juvenile offenders, adult crime is also cyclical, and is affected by population and other demographic and economic trends. In times of economic recession, crime tends to increase. Closing these facilities may lead to future capacity shortages and hazardous situations such as increased double-bunking. Although the department has committed to working with PEF to find positions for the displaced employees, these closures will have a serious negative impact on workers, their families and their communities.  The Executive Budget estimates $10.4 million in savings in FY 2008-09 from these closures.  Estimated Cost: $10.4 million to restore all positions and keep all facilities open.

 

Department of Agriculture and Markets - the Department proposes to amend the Agriculture and Markets law Section 500(4) to eliminate the requirement for an annual inspection of retail food stores, substituting a risk-based assessment. This will result in the attrition of between 21 and 38 food inspector positions (some may already be vacant). The budget estimates a cost savings of $1.2 million by adopting this proposal and eliminating these positions.

 

PEF position: Reject the proposed amendment to the Agriculture and Markets Law. This plan may lead to fewer inspections of food stores. Food safety is too important to rely solely on an untested assessment of risk. Amend S6809/A9809 by deleting Part N. Estimated Cost: $1.2 million to restore positions.

 

State University of New York (SUNY) - the Governor proposes language to alter the relationship between SUNY and the State government by giving SUNY greater authority to enter into contracts and leases and to buy and sell real estate without prior review by the Comptroller, Attorney General or the Legislature.

 

PEF position: Oppose this “flexibility” language. It goes too far in removing oversight and accountability. The review of contracts for services by oversight agencies like the Comptroller and Attorney General exists for a good reason- to make sure that the public interest is protected. The proposed language is so broad it could lead to unanticipated results that could alter SUNY’s operation without real public input. For example, parts of SUNY campuses could be leased out to private operators, or SUNY professional employees could be replaced by contractors. SUNY has never demonstrated the need for this proposal. A more limited version of flexibility for SUNY may be worth considering. Amend S6807/A9807 by deleting Part D.  

 

Department of Environmental Conservation (DEC) - the Governor proposes to amend the State Finance Law Section 92-s to allow money from the Environmental Protection Fund to be used for a Pollution Prevention Institute.

 

PEF position: Amend S6809/A9809 Part B by deleting any reference to the Pollution Prevention Institute (PPI). Little is known about this proposed Institute. While the stated goals are noble, it may become yet another off-budget shadow agency spending public funds without oversight or accountability. The mission of protecting the environment should be kept within DEC and there is no need to create a new entity. The current PPI proposal would allow the Institute to provide technical assistance and pollution prevention planning that was once handled by the DEC Pollution Prevention unit. Keeping this work within the DEC will assure both planners and regulatory staff have access to the same training and guidance thus preventing planners from providing inappropriate information and keeping inspection staff abreast of the latest technology and how it “fits” with current regulation.

 

Urban Development Corporation (UDC) - UDC is a public authority that administers economic development programs. The Governor proposes to eliminate a sunset of UDC’s authority to issue debt.

 

PEF position- public authorities operate in the shadows without appropriate public oversight and accountability. Their operations should be diminished, not expanded. Most of the functions of UDC could be more appropriately consolidated with the State Department of Economic Development. Amend S6809/A9809 by deleting Part W. 

 

Lottery- the Governor proposes to “monetize” the future revenues of the State Lottery through a financing transaction that has not yet been fully defined.

 

PEF position: PEF represents about 100 employees of the Division of the Lottery. They play a vital role in promoting lottery sales while also safeguarding the integrity of the lottery. The proposed private investment in the lottery should not proceed until it can be firmly established that the public interest will be protected and that the operation will continue to be administered by professional civil servants, accountable to the citizens of New York. Amend S6807/A9807 by deleting Part E. 

 

Department of Transportation (DOT) - DOT proposes to eliminate the sunset of the “single audit” provisions of Transportation Law Section 21. The original legislation that established this program required that DOT report annually on the costs and benefits of this program. However, it appears that no report was ever done.

 

PEF position: This program should not be made permanent without a review of costs and benefits. Amend S6809/A9809 by deleting Part D. 

 

Division of Parole- PEF asks the Legislature to add $50,000 to the Parole budget to fund a medical study of job-related stress and cardiovascular conditions affecting Parole Officers.

 

Retiree Health Insurance Benefits - A proposal in the Department of Civil Service’s budget narrative is cause for concern. That narrative states, “In January 2009, the current coverage for retirees will be converted to a contracted Medicare Part D plan to recoup greater Federal reimbursement and decrease the (State’s) GASB 45 liability by about $3 billion.  Both the State and local employers will benefit by an estimated $60 million in savings when fully implemented.” The key question is whether this change will alter the prescription drug benefits of retirees covered by the State health insurance. This shift should not go forward until that question is answered. There does not appear to be any language in any budget bill specifically authorizing this shift.

 

PEF Supports the Governor’s Initiatives in the Following Areas:

 

·         The Governor proposes to save the taxpayers millions of dollars by reducing the use of consultants in cases where equally qualified State employees can do the work at lower cost, such as engineering and bridge inspection in DOT.

 

·         The Governor proposes to improve the effectiveness of State agencies by adding staff in key agencies including DOT, Parole, Health, OMH, OMRDD and others.

 

In Order to Fund Important Services, PEF Supports the Governor’s Proposals for Reasonable Efforts to Increase Revenue Such As:

 

·         Qualified production activities income decoupling;

·         Making permanent tax shelter reporting requirements;

·         Raising the auto insurance surcharge to fund State Police and bridge inspection;

·         Allowing the Commissioner of Tax & Finance to require electronic filing by certain types of tax filers;

·         Expanding the bottle bill to cover more types of containers and requiring that unclaimed deposits be transferred to the Environmental Protection Fund.

 

Cc. Executive Board

      Council Leaders