Living Wage enforcement and expansion is the cornerstone to CEJ's work in WNY. For 10 years we have fought with the City to enforce a city living wage ordinance passed unanimously by the Common Council in the late 90's. The Ordinance requires the city to pay all of their employees a living wage as well as require any business that contracts with the city to pay their employees a living wage. The Ordinance has changed over the years to include a cost of living index, meaning the living wage would be annually assessed based on inflation, and a volunteer Living Wage Commission, which to date is one of the few that exists in country despite over 150 Living Wage laws on the books.
We should be clear, the law is not in place to bankrupt the city. Economists, activists, public officials, community representatives and workers have spent years exploring the impact of Living Wages on municipalities and have found that it does not bankrupt a city, it does not drive business away or our of certain locations, but rather lifts hardworking low wage workers out of poverty. Low income individuals are proven to spend more, not invest or hold their money like the wealthy, and therefore the simple economics state that they will spend more in their communities, bolstering local businesses and having a deep impact on the city's economic rise.
So why the backlash or lack of support for Living Wages? Buffalo's economic decline is legendary in WNY. The once booming city with more millionaires per capita, has felt the devastating blow of globalization, poor zoning laws, ineffectual elected officials, and with that the overwhelming hopelessness that accompanies severe economic decline. And now we are the second poorest city in the nation. Thousands of vacant properties stand idly by and rot, both the edifices themselves as well as the fabric of the communities, city officials are grabbing at silver bullet opportunities to redefine our economic engines, and people are fleeing the city for the outlying suburbs and beyond.
CEJ believes that community based economic development must be the focus of our administration, and this concept includes paying living wages. The city law has it's exemptions, non-profits can absolutely apply for an exemption, businesses with less than 10 employees are automatically exempt, as are businesses that contract with the city for less than $50,000. The businesses that fall under the Living Wage Ordinance CAN AFFORD to pay their employees a wage that can help jump start our local economy. We see a national recession, no question, but do question who is financially receding....it's not the top 5%, the wealthy. It's the middle class and it's the poor.
The Living Wage in Buffalo is calculated based on the lifting a family of 3 out of poverty, based on the economic situation of Buffalo. 2008's Living Wage stands at $9.90 if the employer offers health benefits, and $11.11 without health care. An individual making NYS minimum wage and working 40 hours will bring in a salary of $14,872. An individual making a Living Wage without health benefits will have a salary of $23,108.
Those that have seen their paychecks rise since the Living Wage Ordinance was passed have shared what they are able to do now that they were unable to do before. It ranges from simply being able to do their own laundry to purchasing a car or a home. The undercurrent to the increased financial liberties is the increased sense of dignity around their job. Considering the amount of time Americans spend working, shouldn't we feel good about what we do? Isn't that something we are all entitled to?
It's crucial that we rethink our priorities. Buffalo may never be the booming city we hear fairy tales about, but it doesn't mean that we can't pull ourselves out of this economically depressed chasm and be a great city again. We have to shift from "growth obsessed" policies to community based neighborhood revitalization policies. Dignified employment through expanding Living Wage policies is real and imperative step towards such a paradigm shift.
Monday, June 30, 2008
Thursday, June 26, 2008
The NYS Legislative Session Ends
The NYS Legislature has a adjourned for the season leaving several important bills sitting to be decided on at a later date. We now await Gov. Patterson's decision on some important legislation including weakening the grip of the County Control Board as well as the City Control Board. Below is an article from the Buffalo News which gives a nice breakdown of what successfully moved through the Senate and Assembly and which pieces have been placed aside for the time being.
It should be noted that CEJ has worked with a broad coalition throughout the state on Industrial Development Agency Reform. The coalition firmly believes that if public money is used for development projects, construction workers should be paid industry standards or a prevailing wage and employees of publicly subsidized businesses should be paid a living wage. This reform is a critical to healthy economic development for all; businesses, employees, and the communities.
The provisions that allow IDAs to fund “civic facilities” projects remain expired. The provisions originally expired in July of 2007 for three weeks before being extended 7 months to allow the legislature and governor time outside of session to reach agreement on a comprehensive reform package. When no compromise was reached, the provisions expired on January 31, 2008. The legislature did not agree on a re-authorization or extender before leaving Albany yesterday.
The Reform bill is separate from the the Legislature's decision not to pass an extender on low-interest loans for non-profits. That is absolutely a terrible by-product of the Legislature's inability to find common ground and the Senate to present a similar Bill to the Hoyt passed in the Assembly.
State Legislature ends a wild, bizarre session
Key bills affecting upstate left on floor
By Tom Precious - NEWS ALBANY BUREAUUpdated: 06/25/08 8:39 AM
ALBANY — Key measures affecting the upstate economy died Tuesday as Gov. David A. Paterson and legislative leaders ended this year’s legislative session, one of the more bizarre periods highlighted by the departure of its two biggest power brokers.
Left undone was an effort to lift what in a week will be a ban for hundreds of non-union companies from bidding on government construction projects. The lawmakers also did not renew a law giving civic groups, schools, hospitals and others access to low-interest financing, leaving in doubt a number of Western New York projects.
The issue of rising property taxes, so prominent with voters, was pushed aside for another day.
Before limping out of town after pushing through hundreds of bills in the past two days with little or no debate, lawmakers approved measures weakening the power of control boards for Buffalo and Erie County and backing a $300 million new phase of construction for Buffalo’s schools.
But a measure tightening restrictions for teen drivers, which advocates expected to be easily approved, was killed at the last minute by Republicans in the Senate.
The bill, coming after a spate of high-profile fatal accidents involving teen drivers, would have reduced from two to one the number of nonfamily members under the age of 21 who are permitted in a car driven by a 16-or 17-year-old driver. The bill also would have increased supervised training before a teen can get a license.
State Legislature scorecard
Measures done Tuesday:
•Weaken powers of Buffalo and Erie County control boards•Tougher rules for teenage drivers•Encourage cleanup of polluted brownfield sites•Expand domestic violence orders of protection to dating couples•New binding arbitration and union dues guarantees•Quadrupling mortgage and other local government recording fees
Measures not done Tuesday:
•Tax cap on property taxes•Collecting taxes on Native American tobacco sales•Permit low-finance borrowing for stalled not-for-profit developments•Make it easier for non-union firms to bid on public construction projects•Campaign finance reform•State gasoline tax relief•Permitting cameras in high-volume intersections in Buffalo
The six-month session ended nothing like it began: with a new governor, Paterson, who replaced the disgraced Eliot Spitzer in March, and new Senate majority leader, Dean Skelos, who was voted Tuesday evening as the Legislature’s top Republican following Monday’s surprising retirement announcement by Sen. Joseph L. Bruno.
In the Senate, Bruno addressed an emotional, packed chamber Tuesday, breaking down in tears. An hour later, Skelos was elected majority leader.
The session turned out to be a major victory for labor unions.
They pushed back an attempt to cap property taxes and on Tuesday dealt a final blow to two measures that set up a divisive fight between organized labor and business interests. They won passage of a new binding arbitration bill for court employees, additional rights for workers when a factory or plant closes, and a permanent law requiring nonunion government employees to pay union dues.
Screaming loudest, though, were not-for-profit and civic groups, who were caught in the crossfire between business and labor.
“It’s affecting progress. In our case, this is a major impediment,” said D. John Bray, a spokesman at D’Youville College in Buffalo, which will now either be forced to delay its $20 million construction on a new pharmacy building or seek higher-priced financing.
At issue was extension of a law that expired Jan. 31 giving access to lower-cost financing through local industrial development agencies to D’Youville and other schools, nursing homes, housing groups and other not-for-profits.
The groups were seen as a bargaining chip for a union-backed bill by Assemblyman Sam Hoyt, D-Buffalo, requiring such IDA projects to pay prevailing wage rates to construction workers, which critics say would have sharply driven up development costs by as much as 30 percent.
In the end, neither side blinked, and the elapsed law remains dead — leaving not-for-profit groups scrambling to either kill construction plans or redraw them. The impasse will affect a range of groups, including Tapestry Charter School in Buffalo to Women and Children’s Hospital.
Also left on the floor Tuesday was an effort to undo changes to the state’s Wicks Law, which regulates public construction projects. Critics say the new law, which kicks in July 1, will bar many nonunion firms from bidding on such projects. Upstate, 70 percent of companies are nonunion, they said.
The bill is likely to affect dozens of small and midsize construction companies in the Buffalo area that do business with governments to construct schools, libraries or other public works.
Other items left on the floor as legislators left included Buffalo’s attempt to install cameras at high-volume intersections as a way to collect revenues and reduce accidents. A Rochester lawmaker, David Gantt, who is friends with a lobbyist promoting an alternative bill, killed the measure.
A new move to collect taxes on cigarette sales by Indian retailers, thought to be a sure thing Friday, died after tobacco companies suddenly opposed it.
The Legislature on Tuesday night also approved, as expected, a $300 million borrowing plan for the fourth phase of a school construction program in Buffalo; the latest will fund renovation of 10 schools.
The Buffalo control board measure will, if approved by Paterson, effectively end the direct power of the state-created panel over the city’s finances. Under the terms of the bill, the control board would go to an advisory state.
For Erie County, lawmakers gave final approval to a bill permitting the county to borrow money without needing the permission of its control board.
On Monday, the Senate confirmed Robert Wilmers, chairman of M&T Bank, as the new chairman of the Empire State Development Corp., the state’s chief economic development agency. Wilmers takes over the unpaid post at a time when Paterson is trying to restructure the agency to improve its job creation performance.
It should be noted that CEJ has worked with a broad coalition throughout the state on Industrial Development Agency Reform. The coalition firmly believes that if public money is used for development projects, construction workers should be paid industry standards or a prevailing wage and employees of publicly subsidized businesses should be paid a living wage. This reform is a critical to healthy economic development for all; businesses, employees, and the communities.
The provisions that allow IDAs to fund “civic facilities” projects remain expired. The provisions originally expired in July of 2007 for three weeks before being extended 7 months to allow the legislature and governor time outside of session to reach agreement on a comprehensive reform package. When no compromise was reached, the provisions expired on January 31, 2008. The legislature did not agree on a re-authorization or extender before leaving Albany yesterday.
The Reform bill is separate from the the Legislature's decision not to pass an extender on low-interest loans for non-profits. That is absolutely a terrible by-product of the Legislature's inability to find common ground and the Senate to present a similar Bill to the Hoyt passed in the Assembly.
State Legislature ends a wild, bizarre session
Key bills affecting upstate left on floor
By Tom Precious - NEWS ALBANY BUREAUUpdated: 06/25/08 8:39 AM
ALBANY — Key measures affecting the upstate economy died Tuesday as Gov. David A. Paterson and legislative leaders ended this year’s legislative session, one of the more bizarre periods highlighted by the departure of its two biggest power brokers.
Left undone was an effort to lift what in a week will be a ban for hundreds of non-union companies from bidding on government construction projects. The lawmakers also did not renew a law giving civic groups, schools, hospitals and others access to low-interest financing, leaving in doubt a number of Western New York projects.
The issue of rising property taxes, so prominent with voters, was pushed aside for another day.
Before limping out of town after pushing through hundreds of bills in the past two days with little or no debate, lawmakers approved measures weakening the power of control boards for Buffalo and Erie County and backing a $300 million new phase of construction for Buffalo’s schools.
But a measure tightening restrictions for teen drivers, which advocates expected to be easily approved, was killed at the last minute by Republicans in the Senate.
The bill, coming after a spate of high-profile fatal accidents involving teen drivers, would have reduced from two to one the number of nonfamily members under the age of 21 who are permitted in a car driven by a 16-or 17-year-old driver. The bill also would have increased supervised training before a teen can get a license.
State Legislature scorecard
Measures done Tuesday:
•Weaken powers of Buffalo and Erie County control boards•Tougher rules for teenage drivers•Encourage cleanup of polluted brownfield sites•Expand domestic violence orders of protection to dating couples•New binding arbitration and union dues guarantees•Quadrupling mortgage and other local government recording fees
Measures not done Tuesday:
•Tax cap on property taxes•Collecting taxes on Native American tobacco sales•Permit low-finance borrowing for stalled not-for-profit developments•Make it easier for non-union firms to bid on public construction projects•Campaign finance reform•State gasoline tax relief•Permitting cameras in high-volume intersections in Buffalo
The six-month session ended nothing like it began: with a new governor, Paterson, who replaced the disgraced Eliot Spitzer in March, and new Senate majority leader, Dean Skelos, who was voted Tuesday evening as the Legislature’s top Republican following Monday’s surprising retirement announcement by Sen. Joseph L. Bruno.
In the Senate, Bruno addressed an emotional, packed chamber Tuesday, breaking down in tears. An hour later, Skelos was elected majority leader.
The session turned out to be a major victory for labor unions.
They pushed back an attempt to cap property taxes and on Tuesday dealt a final blow to two measures that set up a divisive fight between organized labor and business interests. They won passage of a new binding arbitration bill for court employees, additional rights for workers when a factory or plant closes, and a permanent law requiring nonunion government employees to pay union dues.
Screaming loudest, though, were not-for-profit and civic groups, who were caught in the crossfire between business and labor.
“It’s affecting progress. In our case, this is a major impediment,” said D. John Bray, a spokesman at D’Youville College in Buffalo, which will now either be forced to delay its $20 million construction on a new pharmacy building or seek higher-priced financing.
At issue was extension of a law that expired Jan. 31 giving access to lower-cost financing through local industrial development agencies to D’Youville and other schools, nursing homes, housing groups and other not-for-profits.
The groups were seen as a bargaining chip for a union-backed bill by Assemblyman Sam Hoyt, D-Buffalo, requiring such IDA projects to pay prevailing wage rates to construction workers, which critics say would have sharply driven up development costs by as much as 30 percent.
In the end, neither side blinked, and the elapsed law remains dead — leaving not-for-profit groups scrambling to either kill construction plans or redraw them. The impasse will affect a range of groups, including Tapestry Charter School in Buffalo to Women and Children’s Hospital.
Also left on the floor Tuesday was an effort to undo changes to the state’s Wicks Law, which regulates public construction projects. Critics say the new law, which kicks in July 1, will bar many nonunion firms from bidding on such projects. Upstate, 70 percent of companies are nonunion, they said.
The bill is likely to affect dozens of small and midsize construction companies in the Buffalo area that do business with governments to construct schools, libraries or other public works.
Other items left on the floor as legislators left included Buffalo’s attempt to install cameras at high-volume intersections as a way to collect revenues and reduce accidents. A Rochester lawmaker, David Gantt, who is friends with a lobbyist promoting an alternative bill, killed the measure.
A new move to collect taxes on cigarette sales by Indian retailers, thought to be a sure thing Friday, died after tobacco companies suddenly opposed it.
The Legislature on Tuesday night also approved, as expected, a $300 million borrowing plan for the fourth phase of a school construction program in Buffalo; the latest will fund renovation of 10 schools.
The Buffalo control board measure will, if approved by Paterson, effectively end the direct power of the state-created panel over the city’s finances. Under the terms of the bill, the control board would go to an advisory state.
For Erie County, lawmakers gave final approval to a bill permitting the county to borrow money without needing the permission of its control board.
On Monday, the Senate confirmed Robert Wilmers, chairman of M&T Bank, as the new chairman of the Empire State Development Corp., the state’s chief economic development agency. Wilmers takes over the unpaid post at a time when Paterson is trying to restructure the agency to improve its job creation performance.
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