Legislative Action Committee

1. Economic Development

• Support for Small Businesses: Advocate for policies to reduce regulatory burdens, streamline permit processes, and provide financial assistance. Key actions include:
  • Tax Relief for Small Businesses: Encourage local governments to provide tax incentives, exemptions, and credits.
  • Local Government Transparency and Efficiency: Promote policies that enhance government transparency, reduce bureaucracy, and clarify zoning, permits, and other regulations.
  • Support for Workforce Development: Promote public-private partnerships to align workforce skills with business needs, with a focus on industries such as technology, healthcare, and manufacturing.
• Infrastructure Development: Advocate for critical infrastructure investments, including:
  • Transportation Infrastructure: Support improvements to roads, highways, and public transit systems.
  • Broadband and Cellular Expansion: Promote the expansion of high-speed internet and cellular coverage to all areas of Dutchess County.
• Affordable Housing and Economic Development:
  • Support affordable housing initiatives and advocate for economic development zones to revitalize underdeveloped areas and attract businesses.

2. Workforce Development

• Skills Training & Education: Partner with local educational institutions to ensure a skilled workforce meets business needs.
• Affordable Housing: Advocate for increased affordable housing options for workers.
• Childcare Support: Support initiatives to increase access to affordable and quality childcare for working families, however not at the expense of small business or the taxpayer.

3. Planning Board Streamlining, Regulation Relief, Collaboration and Consolidation

• Currently, in Dutchess County, there are developers wanting to revitalize old buildings in the City of Poughkeepsie, build new structures in Amenia, and create tourist attractions in Fishkill. These projects have the ability of bring millions of dollars into our local economy; however, planning boards have made it extremely difficult and have proven very costly to do business in Dutchess County. We are looking for a solution to expedite the building process, while also maintaining the smart development and protecting historical sites.

4. Item Pricing Law – Repeal

• This law was repealed as of November 2016. The LAC continuously brought this to the attention of our local officials for regulation change and it was successful repealed.
• The Item Pricing Law in Dutchess County is currently facing a lawsuit between Market Fresh Poughkeepsie vs. Dutchess County.
• This law has cost food stores a lot of man-hours and money to take the time to individually price thousands of items within a store; meanwhile, the unit price is clearly placed in front of items on the shelf. Customers can see their item being scanned and are given a receipt showing their purchases to prevent overcharging. This is another unfair burden on businesses that attributes to the rising costs of doing business in Dutchess County.

5. Economic Development

• In Dutchess County, it is the role of this Chamber to aid any business attempting to make Dutchess its home or trying to expand. We also want to get more involved with larger projects, such as those striving for REDC funds to help grow Dutchess into a must-live destination.

6. Downtown BID in Poughkeepsie

• The Chamber has fully supported the creation of a Business Improvement District (BID) in Downtown Poughkeepsie. Key stakeholders will help to determine the funding priorities of the district and develop a long-term strategy for safety and security, cleanliness, events, improvements and more. The purpose of the additional levy is to invest in the heart of the City of Poughkeepsie to improve the existing landscape with a goal of attracting new businesses and consumers to the area.

7. Pelton Manor Development Project in Poughkeepsie – Advocacy

• A project developed by LAC members Wayne Nussbickel and Steve Tinkelman, proposes taking the land formerly occupied by the Poughkeepsie Nursery and develop rental units for young professionals.
• This will provide additional needed housing and clean up a blighted structure.

8. Poughkeepsie Alliance Support and Advocacy

• An activist group comprised of local business and community leaders with the purpose of creating a better Poughkeepsie. This group advocates for common sense projects to help reduce crime, recruit new businesses, and help turn Poughkeepsie into a must-visit destination.

9. T.O.D. Plan

• Transit-Orientated Development (TOD Plan) plays a very significant role in the Dutchess County economy. As a major outlet for people downstate, the MTA provides a system of transporting many tourists to Dutchess for daytrips.
• The Chamber encourages any municipality with a train station to formulate TOD Plans to build easy access to local businesses and tourist attractions.

10. Safety and Security

• More police on the streets is the first step to creating a safer environment to encourage business growth.

11. Live-In Superintendent-Common Council Proposal in City of Poughkeepsie

• The Common Council proposed making it a requirement to have a live-in superintendent at apartment complexes holding nine or more tenants.
• The Chamber has advocated against this because it will raise rent costs.

1. Tax Reform and Economic Competitiveness

• Lowering Corporate Income Tax: Support reducing the corporate income tax to attract businesses and create jobs.
• Tax Credits: Reinstating and expanding business tax credits like the Excelsior Jobs Program and Economic Development Zones (EDZ).
• Reform of Labor Laws: Labor laws have become so strict that it is strangling small business. The DCRCOC will advocate to ensure regulation burdens are addressed so employers can start, grow and thrive in New York.

2. Workforce Development and Education

• Vocational Education and Apprenticeships: Support funding for vocational and technical training programs in industries like manufacturing, healthcare, and technology.
• STEAM Education: Advocate for state funding to improve STEAM education at K-12 and higher education levels.

3. Healthcare Reform

• Affordable Health Insurance: Support expansion of programs to provide affordable health insurance for small businesses and employees.
• Oppose Unfunded Mandates: Advocate against unfunded mandates, particularly in employee healthcare benefits.

4. Transportation and Energy Policy

• Transportation Infrastructure: Advocate for increased state funding for transportation projects.
• Reliable and Affordable Energy: Support policies ensuring access to reliable, sustainable, and affordable energy on a timeline that is achievable on a technology advancement driven timeline.

5. Medicare Reimbursement

• Increase Reimbursements: Advocate for higher reimbursement rates to reflect inflation and rising expenses.
• Improve Processing Speed: Work to streamline the payment process for facilities dependent on cashflow.

6. Scaffold Law Reform

• The Chamber is committed to reforming the Scaffold Law. We understand the importance of worker safety; however, the fiscal burden of absolute liability falls on businesses, driving up the cost of doing business in New York. This ultimately infringes on the competitive ability of businesses to compete for projects across state lines. We support reform from an absolute liability standard to a negligence-based standard.

7. New York State Must Solve the Unemployment Insurance Crisis and Trust Fund Debt

Introduction

The state of New York is facing a crisis that affects every business and nonprofit organization within its borders: the growing Unemployment Insurance (UI) trust fund debt. Over 1,400 days have passed without any meaningful action from Albany to address this pressing issue, which stems from the state-mandated business shutdowns during the COVID-19 pandemic. As of now, New York is one of only two states that still owes billions in unemployment benefits from the pandemic. While billions of federal funds were allocated through the American Rescue Plan (ARPA) to support new initiatives, New York has failed to provide a single dollar in financial assistance to its unemployment insurance system, leaving businesses and nonprofits to shoulder the burden. This is a state-level problem that demands immediate attention and resolution. Without action, the financial health of New York's business community and its nonprofits will continue to be jeopardized.

The Scope of the Issue: UI Trust Fund Debt

During the COVID-19 pandemic, New York's businesses were hit hard by state-mandated shutdowns and restrictions. To mitigate the economic impact of these actions, the state turned to the Unemployment Insurance (UI) system to provide relief to individuals who lost their jobs. However, the state's UI trust fund was quickly depleted, leaving New York with a debt that now exceeds $10 billion.

As of today, New York is one of only two states that still owes money on unemployment insurance benefits stemming from the pandemic. The other states that faced similar debts have taken proactive steps to address their UI funding shortfalls, but New York has not. Instead, the state has relied on businesses and nonprofits to bear the burden through higher taxes and interest charges, without offering any financial relief or assistance.

This failure to address the UI crisis is more than just an economic issue; it is a critical policy failure that undermines the viability of businesses, especially small businesses, and nonprofits, across the state.

Impact on Businesses and Nonprofits

The UI trust fund debt is a significant burden on New York's business community, especially those that are still recovering from the pandemic's effects. Every business in the state is impacted by the higher unemployment insurance taxes they must pay to fund the trust, but small businesses and nonprofits feel this burden disproportionately. Many of these organizations are still struggling to return to pre-pandemic levels of operation and profitability. Instead of receiving assistance, they are being penalized through increased costs that are essential for their recovery.

Additionally, businesses and nonprofits are being charged interest on the debt, further exacerbating their financial strain. While the state has used federal funds, such as ARPA bailout funds, to finance new initiatives and programs, none of these funds have been directed toward replenishing the UI trust fund or helping businesses ease the financial burden.

This inaction places businesses at a competitive disadvantage, as they must contend with higher taxes that reduce their ability to reinvest in growth, employee wages, and hiring. In the case of nonprofits, this financial pressure limits their ability to provide critical services to vulnerable populations in New York.

A Failure to Act: The Consequences of Inaction

The prolonged delay in addressing the UI debt crisis has far-reaching consequences for both the state’s economy and its future fiscal health. The longer Albany waits to act, the larger the debt will grow, and the more businesses will be impacted by increased taxes and interest charges. New York is also at risk of losing federal funding that could help alleviate this crisis, further compounding the problem.

Moreover, businesses across New York are facing an uncertain future. The state's failure to address the UI crisis sends a negative message to entrepreneurs and investors about the state’s commitment to supporting its business community. If the trust fund debt continues to go unaddressed, the financial stability of New York's business sector will remain at risk, hindering job creation and economic growth.

The Need for Immediate Action

It is critical that New York take immediate action to resolve the UI crisis and pay down the trust fund debt. There are several steps that the state can take to address the issue:

• State Funding for the Trust Fund: New York must allocate a portion of its budget to replenish the UI trust fund and ensure that businesses are no longer penalized for the state’s failure to properly manage unemployment insurance during the pandemic. This could be done through a combination of state budget allocations and targeted federal assistance, including any unused ARPA funds.
• Debt Forgiveness and Interest Relief: The state should negotiate with the federal government to forgive a portion of the debt or eliminate the interest charges that are currently being passed on to businesses. This would provide immediate financial relief to businesses and help stabilize the state's economy.
• Reform the UI System: New York must also take this opportunity to reform its UI system, ensuring that it is properly funded and can handle future crises without relying on businesses to cover the cost. This includes adjusting tax rates for businesses to a sustainable level and ensuring that the system is equipped to respond to future economic disruptions.
• Incentivize Job Growth: To help alleviate the strain on businesses and stimulate economic growth, the state should introduce incentives for companies that create new jobs or that invest in workforce development programs. This will help ensure that the state's economy can bounce back and thrive in the post-pandemic era.

Conclusion

The Unemployment Insurance (UI) trust fund debt is a critical issue impacting every business and nonprofit in New York State. For over 1,400 days, Albany has failed to take action, leaving businesses and nonprofits to shoulder the financial burden. The time to act is now. New York must take immediate steps to resolve the UI crisis by replenishing the trust fund, providing debt relief to businesses, and implementing long-term reforms to stabilize the unemployment system. The health of New York’s economy and the future of its businesses depend on it.

The state’s mandated business closures during the pandemic directly contributed to this crisis, and as such, it is the state’s responsibility to address this looming issue. Without swift action, New York will remain ill-prepared to handle future economic downturns or public health crises that require large-scale unemployment support. This inaction puts the state at risk of further financial instability and a weaker economic recovery.

8. Workers Compensation Reform

• Currently the minimum compensation rate for dates of injury on or after May 1, 2013 is $150, except if the employee’s wages at the time of injury were less than $150 per week, in which case the employee will receive his/her full wages. The rate is not tied to an index.
• Section 25-A closed to new claims on January 1, 2014. Section 25-A allowed for certain claims to be transferred to the Fund for Reopened Cases. Claims became eligible to be transferred to the fund if at least seven years had passed since the date of injury and at least three years had passed since the date of the last indemnity payment. If a carrier’s petition to establish a 25-A claim was approved, the fund took over direct payments to both the claimant and the health care providers, allowing for closure of the claim file. The single assessment was used to keep the fund’s assets at the minimum statutory level.
• In lieu of an arbitration committee, a single arbitrator process was introduced to resolve medical bill disputes involving less than $1,000 or greater than $1,000 if requested by the provider. The arbitrator is a medical provider selected by the chair of the same practice area as the medical services in dispute.

9. Unfunded Mandate Relief

• Unfunded Mandates are well-intentioned pieces of legislation New York State expects county and local governments to fund.
• We are advocating, alongside Dutchess County to decrease the financial burden New York State places on county government. 70 percent of the county’s budget is automatically allocated due to Unfunded Mandates. We believe if New York State passes a law; they should be able to fund it.

10. MTA Tax Relief

• The MTA payroll tax is a tax currently implemented in New York State to NYC and surrounding counties utilizing Metro North, including Dutchess County.
• This tax raises the price of doing business in Dutchess County, effectively making it difficult to compete with other counties in the Hudson Valley and New York State as a whole.
• The chamber is firmly against the MTA payroll tax.

11. MTA Reform and Forensic Audit

• Financial Transparency:
  • Reason: Public institutions like the MTA handle significant taxpayer money, and an audit would ensure transparency in how funds are spent.
  • Supporting Data: For instance, the MTA’s operating budget exceeds $17 billion annually. In such a large budget, even small inefficiencies or mismanagement can add up. A fiscal audit ensures taxpayers see how their money is allocated and whether it is being used appropriately.
• Waste and Mismanagement:
  • Reason: Large organizations often face concerns over financial inefficiencies or wasteful spending.
  • Supporting Data: A 2021 audit of the MTA by the New York State Comptroller found significant inefficiencies, including delayed projects and overruns. For example, the MTA’s capital program had been criticized for cost overruns on projects like the Second Avenue Subway and East Side Access, which exceeded their original budgets by billions of dollars.
• Optimizing Service Delivery:
  • Reason: Ensuring that MTA resources are properly used to improve and maintain essential services like subways, buses, and commuter trains.
  • Supporting Data: MTA ridership has seen fluctuations, with a decrease of over 60% during the peak of the COVID-19 pandemic. As of 2023, ridership is recovering but still hasn't reached pre-pandemic levels. Ensuring funds are used effectively will help restore services and improve efficiency for riders.
• Regional Economic Impact:
  • Reason: The MTA is crucial for the region's economy, so ensuring it is financially stable is important for local businesses and commuters.
  • Supporting Data: The MTA is responsible for transporting more than 8 million people daily across its services. A study from the New York City Economic Development Corporation estimated that MTA services support over 500,000 jobs in the city alone. Effective fiscal management ensures the system’s continued ability to support economic activity.
• Ensuring Proper Funding for Future Projects:
  • Reason: MTA regularly undertakes major infrastructure projects that require stable financial management.
  • Supporting Data: The MTA’s 2020-2024 Capital Plan called for a budget of $54 billion for projects, such as new signal systems and infrastructure upgrades. Ensuring financial integrity through audits helps secure the funding necessary for these critical projects.
• Taxpayer Burdens:
  • Reason: The MTA is funded by various public sources, including taxes, fares, and tolls, so the community has a vested interest in ensuring these funds are spent efficiently.
  • Supporting Data: In 2022, MTA fare revenue was just under $4 billion, while taxpayers contribute heavily through state and local funding. With such a large reliance on taxpayers, there is a clear argument for audits to ensure that this funding is used effectively.
• By calling for a fiscal audit, the Dutchess Chamber seeks to protect taxpayers and businesses in the region, improve service delivery, and ensure financial efficiency in the MTA’s operations.

12. Term Limit Reform

• Move from 2-year terms to 4-year terms with a cap of 8 years served.

13. State Formula for Fairly Funding School Districts

• The Chamber believes we need to be able to provide a properly funded education for our youth, while taking away the burden that the current education funding system has put on local businesses. Currently, New York State uses a Base Cost and Formula Factors to determine funding for schools.
• A base cost is the annual funding—minus additional factors for student and district differences—required for a student to meet state academic standards. The base cost is usually calculated on a statewide basis and is used for all school districts in a given state.
• Student Formula Factors are when states make a concerted effort to direct additional funding to students who require additional resources. They do this by including student factors in funding formulas. Each factor is given a funding weight, or multiplier. For example, a student poverty factor may have a weight of 1.5, or one-and-a-half times the base cost. If a state’s base cost was $10,000, for instance, and a 1.5 poverty weight was applied, each school district would receive $15,000.
• One of the biggest battles in Albany each year is the “GAP” funding levels. This refers to the amount of money missing between the base cost and the formula factors. The GAP varies every time the State checks in on the school district’s adequacy goals.
• This funding formula requires a large amount of tax dollars, the education system is supposed to receive the benefits from the NYS Lottery; however, what has been done is elected officials have taken money away from education to fund other projects, rather than keeping both the original amount of education funding and the lottery money. This leads to funding gaps, which are made up of local tax dollars including local businesses. This funding system puts a clear disadvantage to NYS business.

14. Vocational Skills Funding

• Many cannot afford the rising cost of colleges or do not feel college is in their best interest. Due to the high volume of individuals from the baby-boomer generation entering retirement, manufacturing and vocational training are more important than ever.
• By funding and providing more options for individuals to train as Certified Production Technicians, HVACs, plumbers and electricians we will be able to provide steady, good-paying jobs for our younger generation.
• The Chamber’s Workforce Development Center and Youth One Stop programs have been at the forefront of this effort by encouraging participants to receive state-certified certificates and placing them in apprenticeships and full-time employment.

15. FIT Chargebacks to the County (Unfunded Mandate)

• We believe in keeping local money in local schools. In New York State, if a student wants to attend a community college in a county different from their residency, their home county is responsible for the costs.
• The Fashion Institute of Technology(FIT) is considered, by law, to be a community college. Since they are a specialty college, students from all over New York State attend the college each year and upstate counties are responsible for a portion of the cost of residents’ attendance. These costs (known as chargebacks because they are "charged back" to the county of origin) go beyond those of normal community colleges, because of FIT’s physical location and because it is authorized to offer bachelor’s and master’s degree programs.
• Legislation was passed in 1994 to reimburse counties for their portion, but it does not require the state to makes such funds available. The state has not done so in recent years, leaving county taxpayers on the hook.
• This is a four-year college that offers degrees that two-year community colleges do not.  They should not be considered a community college.

1. Regulatory Reform

• Reduction of Redundant Federal Regulations: Advocate for a review of federal regulations to eliminate unnecessary red tape.
• Flexibility in Federal Labor Laws: Encourage flexibility in labor laws to accommodate diverse industries and business models.

2. Tax Policy and Incentives

• Tax Cuts and Jobs Act: Support the continuation of tax cuts, including lower corporate tax rates and expensing of capital investments.
• Research and Development Tax Credit: Advocate for expanding the federal R&D tax credit to foster innovation.
• State and Local Tax (SALT) Deductions: Work to preserve SALT deductions, crucial for businesses in New York.

3. Infrastructure Investment

• Transportation: Advocate for federal funding for transportation infrastructure projects to facilitate business operations.
• Broadband Investment: Support federal investment to expand high-speed internet access in rural and underserved areas.

4. Trade and Immigration Reform

• Support for Free Trade: Advocate for policies promoting free and fair trade.
• Comprehensive Immigration Reform: Support reform to address the local workforce needs.

5. Minimum Wage Increase

• Level the playing field and make New York more competitive.  As New York has increased the minimum wage, all good and services made in the state have increased in cost as a result.  To level the playing field, the DCRCOC advocates for a $15 per hour minimum wage at the Federal level to ensure New York can compete across state lines and not lose jobs to neighboring states.

6. Increase in Salary/Overtime Threshold

• New York's Salary/Overtime Threshold is much higher than the Federal limit.  We advocate to level the playing filed to make our state more competitive with others and increase the Federal threshold.

7. Immigration

• The Chamber believes in enacting legislation to transform our broken immigration system into one that drives job creation and economic growth.

Immigration reform should include: 

• Reforming the legal immigration system, including both green card reform and implementing practical temporary worker programs for high-skilled and lesser-skilled workers as well as the agriculture industry.
• A practical federal employment verification system for employers
• Improving enforcement of our borders, while facilitating the flow of trade and travel.
• Streamline the work visa process and legal immigration process to ensure we are welcoming the workers with the talents our industries need.

8. Consolidation

• Consolidate/reduce federal agencies, hence waste, and provide states the ability to help local and county governments create shared services to provide better and more efficient government.