annual speech 2011
TRANSCRIPT
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NEW YORK at a CROSSROA Transformation Plan for a New New
State of the State
January 5, 2011
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NEW YORK AT A CROSSROADS
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STATE GOVERNMENT CO
DYSFUNCTIONAL GOVERNMEN
NATIONAL ECONOMIC PRESSURE
THE PEOPLE HAVE LOST TRUST IN GOV
NEW YORK AT A CROSSROADS
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LEGACY
TENACITY
ASSETS
AND PEOPLE
NEW YORK AT A CROSSROADS
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WE CAN TURN THIS CRISIS INT
OPPORTUNITY
NEW YORK AT A CROSSROADS
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This is a time of crisis
State of the State
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We must transform ourgovernment
To become the progressive
capital of the nation onceagain
To seize this moment of
opportunity
State of the State
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NEW YORK AT A CROSSROADS
For New York it’s timechange
What we do today… …will determine the co
this State for decades to
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TO YOUR GOVERNMENT.WELCOME, NEW YORK
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I. This is a time of crisis II. We must tran
g
III. To become theprogressive capital of the
nation once again
IV. To seize this o
State of the State
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In government, as in lifeyou can never solve a prob
you refuse to acknowledg
NEW YORK AT A CROSSROADS
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Source: Department of Labor
2008 2009
Ap
80UnemNew
JOB LOSSin New York
Time of Crisis: Challenges
26-Year high in2009
Ti f C i i Ch ll
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Worst Business-Tax Climate
in the Nation
Time of Crisis: Challenges
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66%Than NatioTA
Time of Crisis: Challenges
Ti f C i i Ch ll
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Source: Federal Reserve Bank of
in Real GDP 2001-2006
1.7%
2.7
Upstate NY U
RATE OF GROWTUpstate New York Economy
Time of Crisis: Challenges
Ti f C i i Ch ll
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476%
EXPLODINGPension Costs
1998-99 2013-14
$1.3 B
$6.2B
Source: New York State Division of the Bud
Time of Crisis: Challenges
Ti f C i i Ch ll
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SPENDI
NG
Far ExceedsINFL
ON
1994-
Medicaid Spending
5.4%Inflation
2.7 %
Educatio
6
Time of Crisis: Challenges
Ti f C i i Ch ll
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State Spending Outpaces Income
Source: New York State Division of the Budget
Time of Crisis: Challenges
Spending5.9%
PersonalIncome
3.8%
0%
2%
4%
6%
A v e r a g e A n n u a l G r o w t h
Ten Year (SFY 2000 to 2010)
Time of Crisis: Challenges
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EXPENSESFar Exceed
Revenue
Source: New York State Division of
Time of Crisis: Challenges
-$17.2
b
2013-14
-$14.6b
2012-13
-10b
2011-12
Time of Crisis: Challenges
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#34In results
#1in Spending
SPEND TOO
MUCHGet Too Little in
Return
Education
#21In results
#1in Spending
Medicaid
$1.6
Ann
EconomicDevelopm
ent
Time of Crisis: Challenges
Time of Crisis: Challenges
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GROWTHof Government
1944 1956 1970 1979 1988 1
199269
421480 480
60
Time of Crisis: Challenges
Executive Branch Entities
Time of Crisis: Challenges
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OVERGROWNLocal Government
Time of Crisis: Challenges
10,500 Local Governments
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Time of Crisis: Challenges
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PEOPLE…are voting with their feet
Time of Crisis: Challenges
Two Million New Yorkers Have
the State
Source: Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index (fr
Time of Transformation
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We need RADICA
REFORM
Time of Transformation
Time of Transformation
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A New Approach
Time of Transformation
A New Perspective
Time of Transformation
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We need it Now
Time of Transformation
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I. This is a time of
crisis
II. We must tran
go
III. To become theprogressive capital of the
nation once again
IV. To seize this o
State of the State
Time of Transformation
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dysfunction, gridlock andcorruption
A
Governmentof:
performance, integrity and p
Time of Transformation
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Time of Transformation
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it’s reinventing, reorganizing &redesigning government programagencies
IT’S NOT BUDGET
CUTTING ORTRIMMING,
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A TRANSFORMATIONFOR A NEW NEW YOR
Time of Transformation
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1. PAYS forperformance
2. GETSRESULTSin real time 3. Puts
PEOPLEFIRST 4. Is an
INTE
Principles of Government for a New Ne
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Transform NY’s Econ
Transform NY’s Economy
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Economy
Transform NY’s Economy
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Economy
ESTABLISH
Transform NY’s Economy
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Economic RegionalCouncils
ESTABLISH
10 Regional CouncilsLt. Gov. Duffy to
Chair
Economy
Transform NY’s Economy
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to Spur Economic Growth
PRIVATE/PUBLICPARTNERSHIPS
Economy
Transform NY’s Economy
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Is a key economic driverHIGHER EDUCATION
Economy
E i R i l
Transform NY’s Economy
Si l P
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Stat
e
Intragovernmental
Economic RegionalCouncils
y
HigherEd
County
Local
Business
DOT ESDC DEC P
Intergovernmental
Single PoConta
Transform NY’s Economy
P f P f
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RegionalCouncils
Competitiofor Best Ide
Millions of ExistingDollars
Coordinated thruCouncils
$200 Million of Mfor Best Jobs P
y
Pays for Performanc
HIGHEST
Transform NY’s Economy
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Property Taxes in the
Nation
HIGHEST
Property Tax
are Destro
y
13 of the 16highest taxcounties are in
New York whenassessed byhome value
In absolute dollars,Westchester is #1and Nassau is #2
Transform NY’s Economy
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$25000.$15000.
Hold taxes for now…
…reduce fo
future
Transform NY’s Economy
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New York has no future astax capital of the natio
Transform NY’s Economy
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Our people cannot afford tmore taxes
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Transform State Governme
RANSFORM Government
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Hasn’t been redesigned s
1927
STATEGOVERNMENT
RANSFORM Government
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In 1938 reform, Constitution there will only be 20 departm
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RANSFORM Government
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Created hundreds of councadvisory panels, working gro
facilities, offices, task forceinstitutes, boards & commit
Transform State Government
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RANSFORM TATEGOVERNMENT
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to eliminate, transfer & consoCOMPREHENSIVE REVIEW
RANSFORM Government
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Spending and Govern
Efficiency Commissio(SAGE)
RANSFORM Government: SAGE
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Berger Commission-style
allowing government reothat automatically goes in30 days after submission
rejected by the LegislatuFirst reorganization plan due in 6-months.
Operational improvements, metricsand targets.
Consists of private secto
L i l t
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Transform Budge
Emergency Financial Plan
Time of Transformation
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Emergency Financial PlanStabilize Finances
1. Wage Freeze
3. State Spending Cap
4. Close $10 billion gap w/o borrownew taxes
2. Hold Line on Taxes
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Transform Budget Proces
Transform Budget Process
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Partisan political theatre
Productive debate and compro
…FROM…TO
…Ships passing in the
Transform Budget Process
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…Ships passing in thenight
Transform Budget Process
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We Need to Try a Different
ISOLATE
RANSFORM UDGETPROCESS
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ISOLATE
MedicaidEducation
State & Local
Budget Flashpoints
Transform Budget Process
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Try a new approach:Medicaid
Transform Budget Process
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Interesting Model Governor announced across the
board cuts; industry said theycouldn’t live with.
Transform Budget Process
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Interesting Model Alternative dispute resolution meets
binding arbitration
Transform Budget Process
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Lessons learned WisconsiStakeholders brought to the table toredesign programs
Transform Budget Process
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it’s reinventing, reorganizing &redesigning government programagencies
IT’S NOT BUDGETCUTTING ORTRIMMING,
Transform Budget Process
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Crisis ManagementApproach:
Redesign TeamMedicaid
Transform Budget Process
M di id R d i
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Starts January 7
Assumes Governor’s BudgIncludes, Legislative, ExecuStakeholders
Commit to Reinventing in TApril 1st Deadline
Medicaid Redesign
Team
Transform Budget Process
Michael Dowling Dennis Rivera
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Michael Dowling,LIJ
George G11
Ken Raske,GNYHA
Dan Sisto,HANYS
Dennis Rivera,SEIU
Stakeholders
Legislature
Transform Budget Process
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Jim Introne,Director ofHealthcareRedesign
Jason Helgerson,Former Medicaid
Director, Wisconsin
Transform Budget Process
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Crisis ManagementApproach:
Redesign TeamMandate Relief
Transform Budget Process
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Starts January 7
Will propose eliminating maIncludes, Legislative, ExecuStakeholders
Commit to First Action in TiApril 1st Deadline
Mandate Relief
Transform Budget Process
Larry Schwartz
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Larry Schwartz,Senior Advisor to
the Governor
Labor
MuniciLegislature
School Boards
Transform Budget Process
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#34In results
#1in Spending
Education
Transform Budget Process
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Current Educat
FundFormula Gra
No Performance Incen
Transform Budget Process
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Federal Governm
is More InnovatRace to the Top, incentives timillions in funding, mad
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Consolidation Bonus PTransform the Budget
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Consolidation Bonus P
Local governments would beeligible for bonus money forconsolidations, mergers & shareservices50% of the bonus must go fordirect property tax relief
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Transform the Ethical EnvironTransform the Ethical EnvironClean Up Albany
Transform the Ethical Environment
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Sometimes the is
isblack and whit
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Lost Trust
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Pass Ethics Refo
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Pass It Now
Clean Up Albany P
E d P t Pl
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p yEnd Pay-to-Play
Full DisclosureIndependent Monito
Independent RedistricPublic Financing oCam ai ns
State of the State
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I. This is a time ofcrisis
II. We must trango
III. To become theprogressive capital of thenation once again
IV. To seize this mo
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While we deal with the frealities, we must als
continue to achieve soprogress
Forge a ProgressiveAgenda
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Wall Street CorruptioWhere was Washington?
Where was Albany?
Better Protect
Forge a ProgressiveAgenda
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Better ProtectConsumers New Department of
Regulation
Insurance Banking Con
Prot
Departmentof Financial
Regulation
NY Cl G
Forge a ProgressiveAgenda Green Job
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NY Cleaner, Greener Communities Program
million competitive gralocal public/private parto improve our environ
Create Green JobsPollution Reductio
Further Environme
Forge a ProgressiveAgenda
Minority & Women-
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ECONOMIC
OPPORTUNITYFor all New Yorkers
Goal from 1
Goal to 2
o ty & o eOwned BusinessEnterprise
M d
Forge a ProgressiveAgenda
Present Realities
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Mod
DeinstitutionaCan’t warehouse
and charge taxp
simply to save jo
Willowbrook Facilit
Bad Memories
Present Realities…
Forge a ProgressiveAgenda
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MARRIAGE
EQUALITYfor all New Yorkers
Justice for All
Urban GreenM k t
Forge a ProgressiveAgenda
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MarketsNew YorkProduce
I This is a time of II We must tran
State of the State
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I. This is a time ofcrisis
II. We must trango
III. To become theprogressive capital of thenation once again
IV. To seize this o
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Moment of Opportunity
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8 States with fiscal conditions wSource: The PEW Center on the States
Moment of Opportunity
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Time of NationalTransition
An Economic Recalibration
Moment of Opportunity
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Like the AgricultureIndustrial and High
Transitions…
Moment of Opportunity
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…New YorkMust Lead the Way Again
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Make January 5
2011…
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234th LegislaturePeter J. Abbate, Jr. Thomas J. Abinanti George Amedore Carmen E. Arroyo Jeffrion L Aubry
Jane L. Corwin Marcos A. Crespo Clifford W. Crouch Brian F. Curran Michael Cusick
Dov Hikind Earlene Hooper Sam Hoyt Rhoda Jacobs Ell J ff
Tom McKevitt
Steven F. McLaughlin
Grace Meng
Donald R. Miller
J l M Mill
Peter M. Rivera
Samuel D. Roberts
Annette Robinson
Robert J. Rodriguez
Li d B R th l
Eric Adams
Joseph P. Addabb
James S. Alesi
Tony Avella
Greg Ball
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Jeffrion L. Aubry William A. Barclay Inez D. Barron Michael Benedetto Jonathan L. Bing
Ken Blankenbush William F. Boyland, Jr. Philip Boyle Edward C. Braunstein James F. Brennan Harry B. Bronson Alec Brook-Krasny Daniel J. Burling Marc W. Butler Kevin A. Cahill Nancy Calhoun
Karim Camara Ron Canestrari Robert J. Castelli Nelson L. Castro John D. Ceretto Barbara M. Clark William Colton James D. Conte Vivian E. Cook
Michael Cusick Steven Cymbrowitz Michael G. DenDekker RoAnn M. Destito Jeffrey Dinowitz
Janet L. Duprey Steve Englebright Herman D. Farrell, Jr. Gary D. Finch Michael J. Fitzpatrick Christopher S. Friend Dennis H. Gabryszak Sandy Galef
David F. Gantt Vanessa L. Gibson Joe Giglio Deborah J. Glick Andy Goodell Richard N. Gottfried Alfred C. Graf Aileen M. Gunther Sean T. Hanna Stephen Hawley Jim Hayes Carl E. Heastie Andrew Hevesi
Ellen Jaffee Hakeem Jeffries Mark Johns
Tony Jordan
Steve Katz
Brian Kavanagh
Micah Kellner
Brian M. Kolb
Rory I. Lancman
George S. Latimer
Charles D. Lavine
Joseph R. Lentol
Barbara Lifton
Guillermo Linares
Peter D. Lopez
Vito J. Lopez
Dan Losquadro
Donna A. Lupardo
William Magee
William Magnarelli
Alan Maisel
Nicole Malliotakis
Margaret M. Markey
Nettie Mayersohn
David G. McDonough
John J. McEneny
Joel M. Miller
Michael Miller
Joan L. Millman
Marcus Molinaro
Michael Montesano
Joseph D. Morelle
Francisco P. Moya
Dean Murray
Catherine Nolan
Daniel J. O'Donnell
Bob Oaks
Félix Ortiz
Philip A. Palmesano
Amy Paulin
Crystal D. Peoples-Stokes
N. Nick Perry
Audrey I. Pheffer
J. Gary Pretlow
Edward P. Ra
Annie Rabbitt
Andrew P. Raia
Phil Ramos
Bill Reilich
Bob Reilly
José Rivera
Naomi Rivera
Linda B. Rosenthal
Addie J. Russell
Joseph S. Saladino
Teresa R. Sayward
William Scarborough
Michelle Schimel
Robin Schimminger
Mark J. F. Schroeder
Sheldon Silver
Aravella Simotas
Kevin Smardz
Mike Spano
Eric A. Stevenson
Robert K. Sweeney
James Tedisco
Claudia Tenney
Fred W. Thiele, Jr.
Matthew Titone
Michele R. Titus
Lou Tobacco
Darryl C. Towns
Helene E. Weinstein
Harvey Weisenberg
David I. Weprin
Keith L.T. Wright
Kenneth Zebrowski
John J. Bonacic
Neil D. Breslin
David Carlucci
John A. DeFranci
Ruben DiazMartin Malavé D
Thomas Duane
Adriano Espaillat
Hugh T. Farley
John J. Flanagan
Charles J. Fuschil
Pat Gallivan
Michael Gianaris
Martin J. Golden
Joseph A. Griffo
Mark GrisantiKemp Hannon
Ruth Hassell-Tho
Shirley L. Huntle
Owen H. Johnson
Timothy Kennedy
Jeffrey D. Klein
Liz Krueger
Carl Krueger
Andrew J. Lanza
William J. Larkin
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