Last week, two pieces of legislation that could decide the fate of large numbers of working-class and middle-class New Yorkers were signed in a whirlwind of activity in the state Legislature.
New York State Gov. Andrew Cuomo signed the controversial Tier VI pension reform bill that requires an increase in employee contributions, raises the retirement age from 62 to 63, eliminates early retirement and eliminates overtime from formulas used to figure out employee pensions.
“For years, rising pension costs have spelled disaster for local governments across the state,” said Cuomo during a news conference. “That finally changed this week, as we came together to put in place a bold pension reform plan that will save taxpayers more than $80 billion over the next three decades.
“By putting the interests of the people of New York State first, we overcame the obstacles that for so long have stood in the way of real reform and delivered one of the most critical, widespread fiscal reforms the state has seen in years.”
The governor has a dubious ally in billionaire New York City Mayor Michael Bloomberg. Bloomberg spoke on how the passing of the pension changes benefited New York.
“Governor Cuomo took on the challenge knowing that it wasn’t going to be easy,” said Bloomberg during a news conference late last week. “But he knew it was the right thing to do for the people of New York State, and he displayed what I think can only be described as real resolve throughout this effort, and also great competency.”
State Comptroller Thomas DiNapoli said, in an emailed statement, that while in the short term, benefits are minimal for pension reform, he’s glad that the worker’s money isn’t in the hands of Wall Street.
“But this new tier will not significantly lower costs for local governments in the short run,” said DiNapoli. “I am pleased that it does not include the inadequate 401k-style plan originally proposed. My office will be reviewing the specifics of Tier VI in the coming days and provide guidance to municipalities on implementation.”
However, two unions are none too pleased with Cuomo’s work and feel that his pension reform might have ruined whatever chance they had of recruiting new workers while unfairly placing the state’s money woes on them.
“The governor and legislators who voted for this bill must face the fact that it will have a disproportional negative impact on working women,” said a spokesperson from the New York State Nurses Association (NYSNA). “It will now be harder to recruit and retain quality employees in many women-dominated professions like nursing and teaching, while more male-dominated fields get a pass.
“The terms of this bill mean that employees will contribute more of their salaries, receive less in their pensions and be forced to retire later in life.”
DC 37 President Lillian Roberts said that the state could’ve generated a lot more revenue by taxing wealthy citizens than by forming the pensions of the working and middle class.
“Until the early hours of the morning on Thursday, Governor Cuomo strong-armed politicians in Albany to force through a pension bill that ultimately provided no pension reform, but instead a reduction in retirement security for some of New York’s hardest working and lowest paid women and men,” said Roberts in a statement to the AmNews. “It is unclear to us what the bill actually does, and if any of the legislators who voted for it actually read it.
“A better way to move this state forward would have been to hold Wall Street accountable for nearly destroying the U.S. economy and closing corporate loopholes that allow them to continue to reap the benefits on the backs of working New York families.”
Another source of controversy in Albany revolved around redistricting, as the Republicans in the Senate and the Democrats in the Assembly look to hold onto power. Last week, it was revealed that the revised state legislative redistricting lines weren’t too different from the highly debated ones introduced at the beginning of 2012. The revised district lines included a 63rd Senate seat that would cut through five counties and break Albany County in half.
In addition to the new lines, legislators proposed an amendment to the state constitution. After the 2020 Census, districts couldn’t be drawn to the advantage or disadvantage of political parties or particular candidates. However, party leaders would be able to appoint the 10 members of the independent redistricting commission directly or indirectly. Cuomo signed the Senate and Assembly maps into law last Thursday.
Regardless, New York State Sen. John Sampson isn’t letting redistricting go without a fight. In an emailed statement to the AmNews, he called the results a “disgusting assault on democracy” and said the redistricting process for 2012 isn’t over.
Last week, the Senate Democrats filed suit in the state Supreme Court challenging the constitutionality of the 63rd District’s creation.
“Additional challenges will be coming before the Department of Justice and federal courts against racial gerrymandering, the cracking and packing of minority communities and the blatant violation of the one person-one vote principle,” said Sampson. “To those who participated in this affront to democracy, we say, ‘We’ll see you in court.’”
The U.S. Justice Department will look over the maps to see if they disenfranchise minority voters.
Pension reform and redistricting. These two pieces of legislation will have a massive impact on the future of working-class and ethnic minority New Yorkers’ economic future, and the battle lines for the various parties have already been drawn.