Lt. Gov. stops in Batavia to highlight pension reform plan
Lt. Gov. Bob Duffy stopped in Batavia today to draw attention to cost savings for Genesee County, and other local governments, from recently enacted pension reform.
The plan could save the county $186 million over 30 years, though most of that savings is deferred as employees hired before the new Tier 6 plan was passed either quit or retire.
Chamber President Lynn Freeman said pension reform is critical for a region long seen as burdened by taxes and regulation.
"I live in Le Roy and it's discouraging sometimes to watch the two-, three- and four-employee company leave our community," Freeman said. "One of the reasons they are leaving is driven by our taxation.
"What's happened to us with our mandates has caused those taxes to go up and up and up every year. What the governor and lieutenant governor were able to accomplish last week is truly remarkable."
Mary Pat Hancock, chairwoman of the Genesee County Legislature, said the reform is one big part of needed mandate relief for local government.
In Genesee County, in the past 10 years, the cost of government mandated pensions has gone from $400,000 a year to $4.4 million.
"I’m proud to have supported the governor and his effort to bring fiscal responsibility back to Albany and relieve localities of this out-of-control mandate," Hancock said.
The reform won't effect government employees with even one day on the job before the reform was passed, Duffy said.
"If this was done 10 years ago we wouldn’t be having this conversation," Duffy said. "If we did it back then, we wouldn’t be in the situation we’re in today."
Hancock, who is also president this year of NYS Association of Counties, said the biggest unfunded mandate weighing down on counties is skyrocketing Medicaid costs.
Duffy said a recently initiated plan by Cuomo will help control costs, but not totally eliminate the Medicaid burden for counties.
At the end of three years, all cost increases will become the responsibility of the state, Duffy said.
"I think you’re seeing big steps right now in trying to lower the costs for local governments," Duffy said.
Duffy, who said he has relatives who live in Batavia, said that Genesee County is on a roll in attracting new business, pointing to the recent successes, particularly, with the Genesee Valley Agri-Business Park.
"This is place is starting to move," Duffy said. "I think it points to the great potential this area has."
Currently, the Genesee County Economic Development Center is seeking legislative support to fund shovel ready development of the STAMP Project in Alabama.
Duffy said he isn't familiar with the project but said the governor's office will follow the recommendation of the Finger Lakes Regional Economic Development Council.
"The governor looks for any way to support anything that grows jobs and grows the economy," Duffy said. "As a lifelong Upstate New Yorker, I'm amazed at the level of attention that is now paid to Upstate.
"I haven't seen the project on paper yet. But I think, as with any project, it might not get a line item in the budget yet, but if it's plausible, you will see people line up to try and make it happen."
Top photo, Duffy; inset, Freeman.