1. Ten Essential Reforms We Can’t Live Without
ISSUE Stop Unfunded Mandates
COSTLY RULES WILL SINK
TAXPAYERS.
Controlling unfunded mandates on school districts, NEW YORK STATE SPENDING OUTSTRIPS INFLATION
local governments and businesses must go hand in
hand with the tax and spending caps. When the 400
All Funds Spending (86–87=100)
state creates a requirement that somebody else pays CPI (June 86=100)
Spending Index (86–87 = 100)
350
to implement, the cost of government still goes up.
The burden is just being shifted, giving affected 300
organizations less control over their own budgets. 250
200
School districts, health insurers, local governments,
utilities and private businesses are subject every year 150
to new state laws and regulations, many of which
100
create a cost burden.
50
The issue is not that every single mandate should be
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paid for in the state budget. It’s that the cost of laws
and regulations must be analyzed up front. Policy State government spending has grown far faster than inflation over the past 10 years and is rising
makers, legislators and voters should make informed out of control. (State comptroller data)
decisions about whether the benefits of a change justify
its expense, and who should pay.
There are structures in place to do this. Governor steps to
Paterson’s Executive Order 25 required state agencies
under his direct jurisdiction to “evaluate, reform,
or repeal ... rules and paperwork requirements in
SURVIVAL
order to reduce substantially unnecessary burdens, Appoint a strong leader for the
costs and inefficiencies.”6 The Governor’s Office of Governor’s Office of Regulatory
Regulatory Reform is charged with enforcing the Reform with high-level support from
the governor
order. Our new governor needs to appoint a director
with the talent, resources and authority to tackle By the end of 2011, produce a report
this challenge aggressively. detailing mandates on public
schools and their costs
Similarly, legislative actions require a fiscal impact Delegate a review of all fiscal notes
assessment, embodied in the legislative “fiscal notes.” to the Division of the Budget and
Yet fiscal notes are often driven by the bill sponsor publish the results
(or beneficiary) and the quality is uneven. A 2007
law requires an expert panel, the Healthcare Quality Require the comptroller to produce
an annual report on the cost of
and Cost Containment Commission, to analyze
mandates
the impact of new health care mandates. After three 4 Tax Foundation, 2008 analysis
years, the commission has yet to be formed. Seat the Healthcare Quality and of state and local taxes
Cost Containment Commission so 5 Tax Foundation, 2010. The nine
it can vet the benefits versus costs New York counties are Monroe,
Taking steps to make the existing structures work Niagara, Wayne, Chemung,
will reduce the budget turbulence that unfunded of any healthcare-related mandates
before legislative action Chautauqua, Erie, Onondaga,
mandates create for other governments and private- Steuben and Madison.
sector employers. 6 www.state.ny.us/governor/
executive_orders