Governor Cuomo's Budget Looks to Stimulate Economy
Posted by Paul Adler on Tue, Feb 07, 2012 @ 10:09 AM
YONKERS -– Numerous business groups across the Hudson Valley region and the state offered praise and support for Governor Andrew Cuomo’s $132.5-billion state budget, which includes significant increases in infrastructure spending to stimulate the economy, while at the same time closing a $2-billion deficit without raising taxes or fees.
However, officials with the Hudson Gateway Association of Realtors (pending name change approval by the National Association of Realtors from the existing Westchester Putnam Association of Realtors) are hopeful that the governor will withdraw or the State Legislature will reject or modify a proposal that would extend real estate broker and salesperson license terms from two to four years. In addition, fees would be increased from $150 to $300 for real estate brokers and from $50 to $100 for real estate salespersons. The act would go into effect on April 1, 2013.
Other key provisions of the proposal include: doubling the continuing education requirements to 45 hours in the four-year renewal period, including six hours of fair housing and/or discrimination course training.
Renewals scheduled prior to the April 1, 2013 effective date would have two years to complete the standard 22.5 hours of continuing education training. Any renewals on or after April 15, 2015, will increase to the 45-hour requirement, according to the New York State Association of Realtors.
Richard Haggerty, chief executive officer of the Hudson Gateway Association of Realtors, said the governor’s proposal would have a large impact on the HGAR School of Real Estate and other Realtor Board real estate schools across the state. In a communiqué to officials with the New York State Association of Realtors, Haggerty said that this licensing policy change, if enacted, would also adversely impact consumers.
“We have spent several years raising the education bar for the real estate profession, much to our credit. We successfully shortened the education cycle to two years, so that real estate licensees stayed more current on the laws and regulations that affect their profession. We raised the number of licensing hours for the sales course from 45 to 75 hours,” he said. “We included three hours of fair housing training in every 22.5-hour continuing education cycle. I can’t help but feel that with this change we are surrendering some of these hard fought gains, which will ultimately have a negative impact on the consumer.”
Other real estate-related proposals in the governor’s proposed 2012-2013 budget included the elimination of the STAR tax benefit for those taxpayers who have outstanding state tax debts. The plan also featured two proposals to assist homeowners and tenants—the creation of a Foreclosure Relief Unit to provide counseling and mediation services to homeowners and a Tenant Protection Unit to provide stricter enforcement of New York State’s rent laws.
In his budget message delivered on Jan, 17 in Albany and the next day at a presentation in Yonkers, Gov. Cuomo revealed his $132.5-billion budget, which includes the $15-billion New York Works infrastructure fund, will feature $917 million in accelerated federal transportation aid and $247 million in additional state funding from the highway bridge dedicated trust fund. The struggling construction industry in New York State can expect a major shot in the arm with approximately $1.16 billion in added state transportation capital spending in 2012-2013 if the governor’s budget is adopted as is.
To close the deficit, the governor has proposed a 4.5% reduction in planned state operations funding for a savings of $1.3 billion and a $756-million reduction in projected aid to localities.
Governor Cuomo said, “This budget demonstrates fiscal discipline and proposes real reforms that puts students ahead of the education bureaucracy and leverages major investment to spur private sector growth. By coming together in the same bipartisan manner we did last year, we will continue our work to build a New New York.”
Focus on Infrastructure
The New York Works infrastructure fund program will accelerate capital investment, building upon core transportation funding, to provide a total New York State Department of Transportation capital program of nearly $4.5 billion in 2012-13, including highways, bridges, rail, aviation, non-MTA transit, and DOT facilities financing. The MTA’s capital program will receive $770 million in new state support over a multi-year period to help fund the MTA’s $22.2-billion 2010-14 capital program. The governor’s proposed budget includes $250 million from the General Fund to offset the impact of the MTA payroll tax reform signed into law by Gov. Cuomo a month ago.
Gov, Cuomo explained that the New York Works Fund will be seeded with $1.3 billion in state funding ($723 million in new capital and $600 million from accelerated existing capital): $1.7 billion from the federal government, which involves a combination of new and accelerated federal aid); authority financing that would include $5 billion for the construction of a new Tappan Zee Bridge, $3.23 billion in existing capital accelerated from NYSERDA and the Port Authority of New York and New Jersey and $770 million to complete the MTA capital plan; and $3 billion from the private sector.
The governor intends to tap the New York Works Fund to finance the improvement of more than 100 bridges, the repair of 2,000 miles of roads, the upgrade 90 municipal water systems, the improvement of 48 state parks and historic sites and the repair of 114 flood control projects statewide.
Other key economic development initiatives that were part of the governor’s proposed budget include: the redevelopment of the existing Aqueduct Racetrack and Racino by building a new 3.2-million square-foot convention center along with 1,000 hotel rooms and added gaming space. In exchange for some state approvals, gaming giant Genting Group will finance the $4-billion venture with no state funding necessary.
With the development of the convention center in Queens, the governor is proposing to revitalize the existing Javits Center in Manhattan by redeveloping the 18-acre property similar to the Battery Park City complex on the West Side.
He also proposed that a constitutional amendment be introduced to legalize casino gaming in New York State and a second round of Regional Economic Development Awards.
Business Groups Express Support
Reaction from the transportation and business sectors on the governor’s budget has been positive.
Ross J. Pepe, president of The Construction Industry Council of Westchester & Hudson Valley, Inc. of Tarrytown, said the additional funding for highway and public works projects are coming at the right time, when the economy is ailing and crews are out of work.
“Gov. Cuomo’s proposed budget for fiscal year 2012-13 beginning April 1 is clearly aimed at solving many of the problems we as New Yorkers now face,” Pepe said. “There are high unemployment levels in many sectors of the economy and a very demonstrable need to bring our transportation infrastructure up to par with neighboring states. Transit and transportation safety and reliability are essentials if we hope to grow our economy in New York.”
After attending the budget presentation in Yonkers, The Business Council of Westchester released a statement of support for the governor’s proposals. The $25 billion in infrastructure and economic development projects that leverage public/private partnerships will jumpstart our economy and generate revenue for the state. These proposals prove, once again, that the Governor understands the importance of the business community in New York. He has set out an ambitious plan for 2012 and we look forward to helping him achieve these goals.”
William Mooney, president of the Westchester County Association, stated, “We are pleased that The Executive Budget introduced by Governor Cuomo today continues along the fiscally responsible path initiated last year. We are hopeful that the policies put in place will launch major job creating projects here in Westchester and across the state. We agree with Governor Cuomo that it takes a strong private sector to ensure a secure future for New York State.”
