NORWICH – The greater Norwich region’s business and government sectors were well represented at a discussion of New York’s economic climate hosted by New York State Senator Tom Libous Wednesday.
About 25 executives representing Norwich Pharmaceuticals, NBT Bank, Raymond Corporation, Norse Energy, GHS Federal Credit Union, Mang Insurance – among other businesses – and non-profit, school and public officials from the city of Norwich and Chenango County met at Commerce Chenango’s offices in the Eaton Center. Natural gas development, new jobs, pension and mandate reform and government consolidation were some of the topics addressed.
The minority leader commenced by showcasing his Republican colleagues’ success in taking back the Senate this year with a commitment to “doing some things differently” and “not playing the party thing.” He said he genuinely likes Governor Andrew Cuomo’s leadership style, works well with him and is optimistic that the governor has the state on the right track.
“We have and are going to make some mistakes, but I think we are setting the tone for good business in this state,” he said.
The 23-year elected official described how the state’s legislature filled a $10 million budget gap with no new taxes and fees, slashed 3.5 percent from spending and capped tax increases at 2 percent this year, all while delivering an on-time budget.
“In the past, we’ve only cut future growth on specific programs. This time we cut into the bone.”
And counties like Chenango are feeling some of the pain, the senator admitted, and are being forced to make tough decisions to streamline programs and services and, in many cases, cut the workforce.
“Some may not like it, but it is forcing discipline all across the state,” he said.
During a question and answer period, City of Norwich First Ward Alderman Robert M. Carey asked Libous to push back on municipalities’ hefty pension costs through a waiver for all newly hired employees. Carey suggested, like in the private sector, that governments could move from a defined benefit system to a defined contribution system.
“We want to know where municipalities can get out of pension plans. We need changes in the state’s Civil Service Law so wages are representative of the taxes people can pay. We can’t keep paying 19 to 28 percent contributions,” he said.
An incentive to move to a contribution system, Carey suggested, would be vesting employees in the defined contribution plan immediately, rather than having them wait five to 10 years before receiving benefits.
Norwich Mayor Joseph P. Maiurano compared the city’s current financial situation to a house being in foreclosure. “Either you pay the taxes or you lose your house. We are at that point,” he said.
Libous said state lawmakers will take up pension reform sometime next year as well as tackle mandates that burden local governments and school districts. He also asked local governments to look at consolidation in light of decreasing populations. He pointed to Chemung County, where the city consolidated its planning and development department and staff attorneys with the county.
“We have to be smarter at the state level and at the county level,” he said.
Norwich City Schools Superintendent Gerard O’Sullivan said student enrollment in his district had remained steady over the past 10 years, but state education funds were diminishing in spite of that. He said the formula for state aid needs revamping.
“Long Island is tripping over money when I’ve got a lot of problems here,” he said.