News from New York State Public Employees Federation (PEF)

For more information contact: Darcy Wells, 785-1900 Ext. 277

PEF recommends alternatives to rebuild economy

ALBANY, NY (07/29/2008; 1732)(readMedia)-- The New York State Public Employees Federation (PEF), the state's largest white-collar union, today responded to Gov. David Paterson's concern that the state tax revenue is anticipated to be lower than expected with a longer economic downturn time.

"We understand there will be hardships for the citizens of New York state as a result of the economic downturn, but the state workforce or state services should not bear a disproportionate amount of the burden," said PEF President Ken Brynien.

"State agency budgets have already been cut by a half-billion dollars, as steps were being taken to restore the state's ability to provide services to its citizens. There needs to be a balance between cost cutting and additional revenue." Brynien said.

A significant reduction in spending during an economic downturn is not the right way to go.

The union leader said he was encouraged Gov. Paterson was seeking the counsel of Joseph Stiglitz, the noted economist and 2001 Nobel Prize winner in Economics, to explore alternatives to service cuts.

"An alternative previously suggested by Stiglitz to safeguard our workforce, yet address the economic downturn, is to place a temporary surcharge on the wealthiest New Yorkers," Brynien said. "People in New York whose income exceeds a half-million dollars only pay 6.5 percent of their income in state and local taxes. The rest of the taxpayers pay 12 percent. We can address this issue by temporarily raising taxes on millionaires which would generate up to $3.75 billion dollars a year."

The state could also save almost a billion dollars by reducing the use of overtime and consultants, according to Brynien.

"The proposal for public private partnerships will not address the immediate fiscal crisis and selling public assets has been a spectacular failure in many other states including Virginia, Texas, Florida and California," Brynien said.

PEF is the state's second-largest state-employee union, representing 59,000 professional, scientific and technical employees.

-30-