annual speech 2011

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NEW YORK at a CROSSROA Transformation Plan for a New New

State of the State

January 5, 2011



NEW YORK AT A CROSSROADS



STATE GOVERNMENT CO

DYSFUNCTIONAL GOVERNMEN

NATIONAL ECONOMIC PRESSURE

THE PEOPLE HAVE LOST TRUST IN GOV




LEGACY

TENACITY

ASSETS

AND PEOPLE




WE CAN TURN THIS CRISIS INT

OPPORTUNITY




This is a time of crisis

State of the State



We must transform ourgovernment

To become the progressive

capital of the nation onceagain

To seize this moment of

opportunity

State of the State




For New York it’s timechange

What we do today… …will determine the co

this State for decades to



TO YOUR GOVERNMENT.WELCOME, NEW YORK



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



In government, as in lifeyou can never solve a prob

you refuse to acknowledg




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



Worst Business-Tax Climate

in the Nation




66%Than NatioTA


Ti f C i i Ch ll



Source: Federal Reserve Bank of

in Real GDP 2001-2006

1.7%

2.7

Upstate NY U

RATE OF GROWTUpstate New York Economy


Ti f C i i Ch ll



476%

EXPLODINGPension Costs

1998-99 2013-14

$1.3 B

$6.2B

Source: New York State Division of the Bud


Ti f C i i Ch ll



SPENDI

NG

Far ExceedsINFL

ON

1994-

Medicaid Spending

5.4%Inflation

2.7 %

Educatio

6


Ti f C i i Ch ll



State Spending Outpaces Income

Source: New York State Division of the Budget


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)




EXPENSESFar Exceed

Revenue

Source: New York State Division of


-$17.2

b

2013-14

-$14.6b

2012-13

-10b

2011-12




#34In results

#1in Spending

SPEND TOO

MUCHGet Too Little in

Return

Education

#21In results

#1in Spending

Medicaid

$1.6

Ann

EconomicDevelopm

ent





GROWTHof Government

1944 1956 1970 1979 1988 1

199269

421480 480

60


Executive Branch Entities




OVERGROWNLocal Government


10,500 Local Governments



PEOPLE…are voting with their feet


Two Million New Yorkers Have

the State

Source: Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index (fr

Time of Transformation



We need RADICA

REFORM





A New Approach


A New Perspective




We need it Now




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




dysfunction, gridlock andcorruption

A

Governmentof:

performance, integrity and p




it’s reinventing, reorganizing &redesigning government programagencies

IT’S NOT BUDGET

CUTTING ORTRIMMING,



A TRANSFORMATIONFOR A NEW NEW YOR




1. PAYS forperformance

2. GETSRESULTSin real time 3. Puts

PEOPLEFIRST 4. Is an

INTE

Principles of Government for a New Ne



Transform NY’s Econ

Transform NY’s Economy



Economy




Economy

ESTABLISH




Economic RegionalCouncils

ESTABLISH

10 Regional CouncilsLt. Gov. Duffy to

Chair

Economy




to Spur Economic Growth

PRIVATE/PUBLICPARTNERSHIPS

Economy




Is a key economic driverHIGHER EDUCATION

Economy

E i R i l


Si l P



Stat

e

Intragovernmental

Economic RegionalCouncils

y

HigherEd

County

Local

Business

DOT ESDC DEC P

Intergovernmental

Single PoConta


P f P f



RegionalCouncils

Competitiofor Best Ide

Millions of ExistingDollars

Coordinated thruCouncils

$200 Million of Mfor Best Jobs P

y

Pays for Performanc

HIGHEST




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




$25000.$15000.

Hold taxes for now…

…reduce fo

future




New York has no future astax capital of the natio




Our people cannot afford tmore taxes



Transform State Governme

RANSFORM Government



Hasn’t been redesigned s

1927

STATEGOVERNMENT

RANSFORM Government



In 1938 reform, Constitution there will only be 20 departm



RANSFORM Government



Created hundreds of councadvisory panels, working gro

facilities, offices, task forceinstitutes, boards & commit

Transform State Government



RANSFORM TATEGOVERNMENT



to eliminate, transfer & consoCOMPREHENSIVE REVIEW

RANSFORM Government



Spending and Govern

Efficiency Commissio(SAGE)

RANSFORM Government: SAGE



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



Transform Budge

Emergency Financial Plan




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



Transform Budget Proces

Transform Budget Process



Partisan political theatre

Productive debate and compro

…FROM…TO

…Ships passing in the




…Ships passing in thenight




We Need to Try a Different

ISOLATE

RANSFORM UDGETPROCESS



ISOLATE

MedicaidEducation

State & Local

Budget Flashpoints




Try a new approach:Medicaid




Interesting Model Governor announced across the

board cuts; industry said theycouldn’t live with.




Interesting Model Alternative dispute resolution meets

binding arbitration




Lessons learned WisconsiStakeholders brought to the table toredesign programs




it’s reinventing, reorganizing &redesigning government programagencies

IT’S NOT BUDGETCUTTING ORTRIMMING,




Crisis ManagementApproach:

Redesign TeamMedicaid


M di id R d i



Starts January 7

Assumes Governor’s BudgIncludes, Legislative, ExecuStakeholders

Commit to Reinventing in TApril 1st Deadline

Medicaid Redesign

Team


Michael Dowling Dennis Rivera



Michael Dowling,LIJ

George G11

Ken Raske,GNYHA

Dan Sisto,HANYS

Dennis Rivera,SEIU

Stakeholders

Legislature




Jim Introne,Director ofHealthcareRedesign

Jason Helgerson,Former Medicaid

Director, Wisconsin




Crisis ManagementApproach:

Redesign TeamMandate Relief




Starts January 7

Will propose eliminating maIncludes, Legislative, ExecuStakeholders

Commit to First Action in TiApril 1st Deadline

Mandate Relief


Larry Schwartz



Larry Schwartz,Senior Advisor to

the Governor

Labor

MuniciLegislature

School Boards




#34In results

#1in Spending

Education




Current Educat

FundFormula Gra

No Performance Incen




Federal Governm

is More InnovatRace to the Top, incentives timillions in funding, mad



Consolidation Bonus PTransform the Budget



Consolidation Bonus P

Local governments would beeligible for bonus money forconsolidations, mergers & shareservices50% of the bonus must go fordirect property tax relief



Transform the Ethical EnvironTransform the Ethical EnvironClean Up Albany

Transform the Ethical Environment



Sometimes the is

isblack and whit



Lost Trust



Pass Ethics Refo



Pass It Now

Clean Up Albany P

E d P t Pl



p yEnd Pay-to-Play

Full DisclosureIndependent Monito

Independent RedistricPublic Financing oCam ai ns

State of the State



I. This is a time ofcrisis

II. We must trango

III. To become theprogressive capital of thenation once again

IV. To seize this mo



While we deal with the frealities, we must als

continue to achieve soprogress

Forge a ProgressiveAgenda



Wall Street CorruptioWhere was Washington?

Where was Albany?

Better Protect




Better ProtectConsumers New Department of

Regulation

Insurance Banking Con

Prot

Departmentof Financial

Regulation

NY Cl G

Forge a ProgressiveAgenda Green Job



NY Cleaner, Greener Communities Program

million competitive gralocal public/private parto improve our environ

Create Green JobsPollution Reductio

Further Environme


Minority & Women-



ECONOMIC

OPPORTUNITYFor all New Yorkers

Goal from 1

Goal to 2

o ty & o eOwned BusinessEnterprise

M d


Present Realities



Mod

DeinstitutionaCan’t warehouse

and charge taxp

simply to save jo

Willowbrook Facilit

Bad Memories

Present Realities…




MARRIAGE

EQUALITYfor all New Yorkers

Justice for All

Urban GreenM k t




MarketsNew YorkProduce

I This is a time of II We must tran

State of the State



I. This is a time ofcrisis

II. We must trango

III. To become theprogressive capital of thenation once again

IV. To seize this o



Moment of Opportunity



8 States with fiscal conditions wSource: The PEW Center on the States




Time of NationalTransition

An Economic Recalibration




Like the AgricultureIndustrial and High

Transitions…




…New YorkMust Lead the Way Again



Make January 5

2011…



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



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

annual speech 2011

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