Press Mentions

October 03, 2018

Gubernatorial Candidate Molinaro Wants to Shift Medicaid Cost to State

Spectrum News

Republican gubernatorial hopeful Marc Molinaro wants to shift the cost of Medicaid from county governments to the state -- a move designed to reduce property taxes, but it could also force taxpayers to shoulder the burden statewide.

“I think as the state begins to take back some unfunded mandates, particularly Medicaid, the goal will be to control growth. In fact, we know this is possible,” said Molinaro.

The plan would cost more than $7 billion once fully phased in. Governor Andrew Cuomo is skeptical the move could work without either cutting services like aid to schools or increasing taxes on the state level.

“It's kind of incongruent to have the poorest areas of the state pay the largest local share of Medicaid. So it makes sense for the state to take over those costs, it's just of a big chunk to take on all at once,” said David Friedfel, Citizens Budget Commission.

And as to whether taxpayers would see a benefit, it depends on where you live.

“Some of the wealthier counties would actually see smaller decreases in their property tax bills assuming the savings are passed on, whereas the poorer upstate counties would see some significant savings from the state taking over these costs,” said Friedfel.
October 03, 2018

Report: NYS Takeover Of Medicaid Could Reduce Property Tax Bills

WSHU Public Radio

An independent budget watchdog group agrees with an idea that Republican candidate for governor Marc Molinaro has to help bring down local property taxes. But it also says there is a tradeoff to any potential savings.

The Citizens Budget Commission is non-partisan and does not endorse any political candidates. But the group does back an idea proposed by the GOP’s Molinaro for a state takeover of county Medicaid costs.

The group’s Patrick Orecki says it would help alleviate New York’s very high local property taxes.

“It’s unique and counterintuitive and regressive,” Orecki said.
October 02, 2018

Budget watchdogs question Molinaro's tax proposal

Politico New York

Three fiscal watchdogs say Republican gubernatorial candidate Marc Molinaro's budget proposal lacks details on how he would pay for a number of cost shifts and proposed tax reductions.

The full plan, unveiled on Friday, has plenty to appeal to fiscal conservatives, specifically in cutting property taxes. It also includes moving the cost of state-controlled programs like Medicaid from local governments to the state, forming commissions to reduce other local costs, cutting various taxes including the millionaire's tax and capping state spending growth at 3 percent annually.

“There are many positive things here that could be supported — it's a matter of doing them all at once and how you pay for it,” said David Friedfel with the Citizens Budget Commission, a nonpartisan fiscal watchdog.
October 02, 2018

Report: State takeover of Medicaid could reduce property tax bills

WXXI News

An independent budget watchdog group agrees with an idea that Republican candidate for governor Marc Molinaro has to help bring down local property taxes. But it also says there is a tradeoff to any potential savings.

The Citizens Budget Commission is nonpartisan and doesn’t endorse any political candidates. But the group does back an idea proposed by Molinaro for a state takeover of counties’ Medicaid costs.

The group’s Patrick Orecki said it would help alleviate New York’s very high local property taxes.

“It’s unique and counterintuitive and regressive,” Orecki said.
October 01, 2018

States Gearing Up to Bet Big on Sports Wagering

State Net Capitol Journal

Rhode Island has placed a $23.5 million sports bet.

The Ocean State isn’t betting on New England’s beloved Red Sox or Patriots but on the prospect that other bettors will. If enough gamblers play, the state wins and will collect $23.5 million, money already committed for spending in Rhode Island’s budget.

Tim Sullivan, who has studied the issue for New York’s Citizens Budget Commission, comes to a similar conclusion.

“Sports betting is not a golden ticket that will significantly address prospective budgetary shortfalls,” Sullivan told the Capitol Journal.
September 30, 2018

Smithtown considers allowing industrial organic waste plants

Newsday

Smithtown’s Town Council will vote by summer on a law permitting industry development of indoor organic waste plants to process some or all of the tons of food scraps and yard trimmings the town generates each year, officials said.

Disposal costs at reclamation facilities on Long Island like the one Smithtown uses range from $70 to $75 per ton, said Russ Barnett, the town's top environmental official.

A 2016 report by Manhattan-based nonprofit Citizens Budget Commission put in-vessel compost disposal costs at $80 to $110 per ton and anaerobic digester disposal costs at $62 per ton after sale of gas, although comparison is difficult because of variables including plant size, transportation and collection cost.
September 24, 2018

Fiscal Watchdog: City Health-Benefit Costs A Long-Term Worry

The Chief-Leader

The annual cost of servicing New York City’s long-term debt and pension obligations continues to consume an increasing share of its budget, with more than $1 of every $5 in the operations budget being spent on these legacy costs, according to an analysis by the Citizens Budget Commission, a non-profit fiscally conservative think tank.

In fiscal year 2019, the expenditure on items like debt service for capital construction will account for 21.1 percent of the city’s annual operating budget. “By fiscal year 2022, legacy costs are projected to reach $21.9 billion or 22.7 percent of total expenditures,” the CBC reported. “These liabilities totaled $252.5 billion at the end of fiscal year 2017—approximately $81,100 per household.”
September 19, 2018

Property Tax Commission Island public forum set; goal is 'fairness'

Staten Island Advance

As Staten Islanders grapple with some of the highest effective property tax rates in the city, borough residents will soon have the chance to voice their concerns about the city's property tax system.

A recent report from the nonpartisan Citizens Budget Commission pointed out that assessment ratios are the highest on Staten Island and the Bronx.

The CBC said the commission's priority should be to address inequalities in Class 1 properties by "restructuring or eliminating caps on assessment growth."
September 19, 2018

One way for NYC to get out of $252.5 billion debt: stop most construction projects

The Real Deal

New York City must cut down on capital projects and employee benefits to emerge from its $252 billion debt hole, according to a new controversial report.

Citizen’s Budget Commission, a fiscally conservative think tank, found that the city has been unable to capitalize on a boom in tax revenue and a strong economy to emerge from its debt, leaving it exposed in the event of a future downturn in the economy, according to Crain’s.

The CBC’s report suggested prioritizing capital projects, such as school construction and park improvements, which makes up for $107.8 billion of debt in the form of outstanding bonds. It also found a large chunk of the debt — $144 billion — is made up of retiree benefits, mostly for health needs and pension liabilities.
September 18, 2018

New York City Should Trim Long-Term Debt, Says Watchdog

The Bond Buyer

New York City needs a strategy to reduce long-term liabilities and keep legacy costs manageable, according to the watchdog Citizens Budget Commission.

“The city’s long-term liabilities are substantial, and paying the associated legacy costs is crowding out programmatic spending,” said a report by Ana Champeny and Maria Doulis.

CBC pegged the city’s long-term liabilities at $252.5 billion at the end of fiscal 2017, or roughly $81,100 per household. That includes bonded debt ($107.8 billion), and net other post-employment benefits ($88.4 billion) and net pension ($56.2 billion) liabilities.

“Despite robust economic growth, the city has neither meaningfully reduced these debts nor made their reduction a fiscal priority,” the report said.
September 18, 2018

Think tank pushes plans to get city out of debt

Crain's New York Business

The Citizens Budget Commission wants to get New York City back in black.

A new report rolls out a host of proposals the fiscally conservative think tank says would help the municipal government crawl out of its $252.5 billion debt hole. The paper argues the city has thus far failed to avail itself of the blossoming economy and swelling tax revenues to pay down its liabilities, leaving it vulnerable in the next downturn.

The CBC study found that $107.8 billion of debt takes the form of outstanding bonds, mostly for capital projects like school construction and park improvements. The remainder consists of the city's contractual obligations to employees, including $88.4 billion for retiree benefits, mostly for health needs, plus another $56.2 billion for pension liabilities.
September 17, 2018

City needs to do the math before renewing PLAs

Crain's New York Business

Building Construction Trades Council President Gary LaBarbera recently wrote that Project Labor Agreements (PLAs) have resulted in “savings of more than 9% on New York City projects since 2009.” This was in response to a claim that PLAs specifically drove up costs for repairs at New York City Housing Authority (NYCHA) sites—a criticism which LaBarbera did not actually refute.

As for the most recent PLAs from 2015—some of which will expire this year—their financial impact remains unstudied. The Citizens Budget Commission has asked the Mayor to evaluate the results of these PLAs and “whether they achieved their promised savings or increased opportunities for MWBE contractors and apprentices.” So far no results have materialized.