MANY New Yorkers are unhappy with Albany’s decision to raise in come taxes during these disastrous economic times. Some dramatic reforms would make that decision more defensible.
The key issues are: 1) property-tax relief; 2) reform that would deliver better results in health care and education, and 3) the promise of a stronger, more competitive and more affordable New York emerging at the other end of these difficult times.
The governor has stated these as his policy objectives. Looking forward, those of us who care about the state need to help move the conversation in this constructive direction.
New York has the highest local taxes in America, 79 percent above the national average. And these regressive taxes (especially property taxes) are unfairly levied without regard to ability to pay.
While our combined state taxes are actually about the national average, our combined state and local taxes are the highest in the nation. Why the high tax burden? New York spends more per student than any other state, and its per-capita Medicaid spending is more than twice the national average.
All that spending might make sense (as part of New York’s social contract) if we had the results to show for it. Yet, despite the highest spending in the nation for health care and education (even though our state is home to some of the world’s best schools and hospitals), we have average results at best, and often below-average ones — especially for our low- and moderate-income working families.
Here is what New York’s citizens need from our state government, going ahead:
Property-tax relief: The current system is crushing our seniors, our low and moderate-income working families and our small businesses.
Though the downstate area holds an overwhelming 82 percent of New York’s “wealthy” residents (with a whopping 40 percent living in Nassau, Westchester and Suffolk counties), we also have deep pockets of poverty and many who are not wealthy. The Census Bureau found that Nassau County, for example, is No. 4 in the nation for property taxes as a percentage of household income.
Some concrete — and very doable — avenues of relief were outlined by the Commission on Property-Tax Relief, which I chaired: Put a cap on school property taxes; install a circuit-breaker to tie property taxes to income; help school districts control expenses by reducing state mandates.
Reform education and health care: There must be a concerted effort to streamline and consolidate governments where it makes sense, making the business of government as efficient as it can be without compromising quality.
In education, we must give more control to local school districts and eliminate state mandates. This will not just help districts cut costs, but unchain local school leaders to invest where they know they’ll get the best results. The state Education Department must shift from its current role of regulatory enforcement to promoting best practices across school districts.
Health-care reform should include some common-sense practices to improve both quality and cost-effectiveness. Institute online electronic medical records, online billing and customer service. Health risk-assessments programs, which are proven to work, could go a long way toward containing spiraling costs.
The difficult times we now confront can lead to a brighter future — better results in education and health care, and a combined tax burden that’s no longer the nation’s highest. Over time, smarter government spending can assure that the vast influx of revenue from the federal stimulus and the state income-tax hike aren’t squandered.
It all comes down to accountability. We are asking many of our downstate and suburban residents to invest even more in our government. In return, we must give them results.
Otherwise, we must confront the reality that they will simply invest somewhere else — as so many unfortunately have, by simply leaving New York state.
Our state leaders have the opportunity to fix the property-tax crisis and reform health and education spending. Let’s give our overtaxed New Yorkers the one thing they want — the results to keep them believing in New York state.
Tom Suozzi is the Nassau County execu tive.