Chamber Newsroom

Jan 26

Written by: Chautauqua County Chamber
1/26/2010 7:29 PM 

The Chautauqua County Chamber of Commerce and the Manufacturers Association of the Southern Tier are calling the governor’s budget a step in the right direction but expresses concerns that it does little to protect rural communities that are taking a beating in local property taxes. “What is not clear in this budget is how the average taxpayer in New York is going to be protected from cost shifting to the localities,” stated Hans Auer, Chairman of the Chautauqua County Chamber of Commerce. “Reductions in aid to local governments and cuts in school aid, both components of the governor’s budget, force local municipalities and school districts to turn to property tax revenues to fill budget holes. While we may pay no more taxes directly to the state, the cost shifting strategies in the budget will likely result in increased property taxes to meet local shortfalls."

“We need tax relief and we need real reform,” stated Todd Tranum, President/CEO of the Chautauqua County Chamber of Commerce. “The new assessments on health care proposed by the Governor will be passed onto rate payers who are struggling to pay premiums that are already too high. Many small businesses have given up trying to keep their insurance because of the cost. Any budget that proposes raising approximately $1 billion in new taxes is concerning. This is on top of the $6 billion in new taxes that were passed last year. Reform has to be expedited, specifically the reforms identified in the Lundine Commission report. Specific reforms that would help would be reforms that would expedite school consolidation and expanding the ability of local governments to share services. In addition, a top priority among these cuts must be the property tax cap to help protect the taxpayers and businesses of our region from local property tax increases.”

The Chamber pointed to some of the positive aspects of the budget. “The governor is holding the line on spending and that is an important first step,” stated Auer. “There are a variety of initiatives that the Governor is proposing in concert with this budget that are encouraging including, Public Higher Education Empowerment and Innovation Act, Excelsior new jobs tax credit, small business revolving loan fund, and the new technology seed fund.”

“We encourage our elected representatives to hold the line on spending, there will be a lot of pressure to restore specific programs,” stated Tranum. “The need for sweeping reform is clear. For example if you are going to cut education spending then make it easier for school administrators to centralize school districts to create efficiencies, reduce costs and preserve educational opportunities. The lack of sweeping reforms is driving business out of New York and undermining our ability to grow and attract businesses.”
 

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