CAP Report confirms that Living Wage Laws have NO negative impact on economic development or job growth.

On Tuesday, November 30, 2010, the Center for American Progress (CAP) released a report of an eighteen year study it conducted from 1990-2008. The report evaluated the affect of living wage laws on economic development and job growth. The study entitled “Creating Good Jobs in Our Communities: How Higher Wage Standards Affect Economic Development and Employment,” compared 15 cities that were successful in the implementation of a business assistance living wage law to 16 control cities that tried and were unsuccessful in the passage and execution of such laws. To date there are 140 local governments that have enforced some form of living wage laws within their jurisdictions.

The report noted that local governments spend more than $50 billion in policies which aim to draw private investors into areas to increase investments and jobs through avenues such as direct subsidies, tax exemptions, and infrastructure improvements. These dollars often come from public funding which are tax-payer dollars. The success of these avenues is not often victorious with businesses relocating to other cities leaving individuals searching for jobs once again.

Several key findings were revealed in CAP’s report putting to rest opponents’ arguments about the negative impact living wage laws have on business venture and job growth in areas that have enacted these laws. For instance, it is argued that cities with living wage laws scare away potential investors due to higher employee costs forced upon them. Additionally, there is the argument that businesses will not hire additional employees due to these stipulations. However, it was found that cities with these laws have the same level of economic growth as cities with comparable attributes but no living wage laws enforcing labor standards. Furthermore, these laws were found to have no negative effects on low-wage workers or low-wage worker industries.

As noted in the report, Living wage laws allow for local governments to ensure that taxpayer dollars do not subsidize poverty wages. Various ways have been developed in order to connect labor standards to public development projects; such as Community Benefit Agreements and prevailing wage and living wage laws, with living wage laws at the forefront of establishing these connections.

To read the Center for American Progress’s full report please click link below: http://www.americanprogressaction.org/issues/2010/11/pdf/living_wage.pdf.

Heartened by Amendments to MGPP, But We Still Need a CBA

On Monday (11/29/10) afternoon the ECHDC Board of Directors voted to approve the Modified General Project Plan (MGPP) for Canal Side. CEJ and the Canal Side Alliance, as well as several of our members listened to Chairman Jordan Levy discuss amendments to the MGPP, and then presented over 1,000 post cards from Buffalo residents in support of a Community Benefits Agreement for the development project.

For the most part, we were heartened by the steps made by the ECHDC in amending the MGPP. One of our top priorities has always been to create a more accountable and transparent process with increased community engagement. The incorporation of some community ideas into the MGPP makes us cautiously optimistic that the ECHDC is more willing to work with and listen to the community.

Specifically, the hiring of Fred Kent, of the Project for Public Spaces to assist Canal Side architects shows a commitment to embracing the notion of “lighter, quicker, cheaper” which the public has been calling for. This stands in contrast with large-scale private business subsidies and infrastructure designed to accommodate them, which had been a mainstay of the previous plan. An example of this is the decision to table the construction of a major parking garage on the old Aud site. On the whole, it appears there has been a shift in focus towards public infrastructure. Our hope is that they may be realizing what we’ve been saying all along, that spending tax money on public goods is a much smarter investment than giving it away to private businesses and hoping that the public benefits.

In addition, ECHDC announced on Monday the creation of three subcommittees to study the Historic District, the Buffalo River, and the Outer Harbor. The committees will be made up of community members and chaired by Jordan Levy, with assistance from Fred Kent, and will issue their first reports to the board in February. This is another sign of doors opening to authentic community engagement and participation.

While this is encouraging, as we move forward on this project, the ECHDC needs to take the next step and negotiate a Community Benefits Agreement. This would lay out guiding principles for the development project, and make sure the public benefit from this investment is maximized. Absent at Monday’s meeting was the discussion by board members of a CBA, despite the fact that the Common Council passed in March a unanimous resolution conditioning the sale of city land on the successful negotiation of a CBA.

To that end, CEJ hosted meeting of faith leaders and Common Council members on Tuesday, November 30th, in discussion on the need for a CBA. Faith leaders re-iterated their support of a CBA and how the agreement would help the members of their congregations, and Common Council members Rivera, LoCurto, and Haynes explained the history and progress of the fight for a CBA in the Common Council. Break-out groups allowed faith leaders to converse with each other and with their councilmember, each sharing their knowledge and insight as well as concerns moving forward. This allowed faith leaders to learn more about the process of the CBA and understand how they can most effectively lend support to that process on behalf of their congregations.

While amended and somewhat improved, passing the MGPP puts a plan in motion, which is essentially placing the cart before the horse. We still don’t fundamentally understand what will be going down there. For instance, how much money will still be spent on private development? Buffalo faces many challenges including poverty, lack of community control over resources, underemployment and unemployment. A CBA would also address these challenges. A CBA would also set a precedent for future development and establish WNY as a business, community, and people friendly region.

Tell Congress: We need help for the unemployed, not tax cuts for rich!

This holiday season, over 2 million Americans will be cut off from their existing unemployment benefits. The TANF Emergency Fund, which subsidized 240,000 jobs for low-income families and youth, has yet to be renewed by Congress. With the unemployment rate continuing to hover at 9.6%, 5 job-seekers for every available opening, and the number of long-term unemployed continuing to climb, now is not the time to cut programs that help people get by.

But as of now, Congress hasn't even scheduled a vote on extending jobless benefits, and conservative leaders have vowed to put their energy for the few remaining weeks of this Congressional session into extending the Bush tax cuts to the wealthy. The same lawmakers who say our country cannot afford to maintain benefits for the jobless want to extend tax cuts for the rich that will cost the nation more than $700 billion. There is something seriously wrong with this logic!

Thousands of activists like you are calling Congress with a message: do your job for those who don’t have one! Can you take a minute right now and make a call?

Click here to make a fast, free call to Senator Schumer and your Representative, and tell them not to desert our workers!

CALL NOW AT 1-877-662-2889

Until there are enough jobs, we must continue the programs that serve as a lifeline for millions of unemployed Americans and their families. Tell Congress to extend Unemployment Insurance and the TANF Emergency Fund until the economy recovers, not tax cuts for the rich.

Please let us know you called!

Time to hold our new leaders accountable

At this time, most of the election results are in. With the dust still settling on the 60th District State Senate seat, and debris from election night victory parties being swept up, it is important to remember what was promised to us during the electoral campaigns - lest these pledges be swept aside as well.

CEJ created a Voters Guide for the State Senate races in districts 58, 59, 60, and 61. We asked the candidates questions about accountability, jobs, and economic development. Specifically, three important questions were put to the candidates. Unfortunately, it seems that some candidates were afraid to talk about these issues. Patrick Gallivan (R) 59th and Michael Ranzenhofer (R) 61st did not respond to our multiple requests for comment. Tim Kennedy (D) 58th and all candidates from the 58th did respond, as well as both candidates in the 60th district, where the winner has yet to be determined.

Below are the questions we asked, as well as the pledges made in response to those questions from Tim Kennedy (D) 58th, as well as both Mark Grisanti (R) and Antoine Thompson (D) in the 60th district.

Q: What measures would you support to promote greater public accountability in state government and restore public trust?

Tim Kennedy (D) 58th - "In order to clean up Albany, we will also have to fight for real ethics reform and end pay-to-play politics. We need to stand behind initiatives like a state ethics commission and a comprehensive annual financial disclosure form to shed light on the outside dealings of state legislators."

Mark Grisanti (R) 60th - "Albany needs transparency and politicians needs to be held accountable. Additionally, there should be term limits so we do not have career politicians who become out of touch with there constituents."

Antoine Thompson (D) 60th - "I support public financing of elections in order to provide transparency and accountability in government and would continue to meet with my constituents about their concerns and issues, host town halls in my district and work with my colleagues to put forth meaningful reforms and legislation for the people of NY."

Q: The State’s two main engines of economic development, Industrial Development Agencies and Empire Zones, have come under increasing scrutiny in recent years, with changes to the Empire Zone program now imminent. How should these programs be changed or overhauled to better target the state’s economic development resources?

TK (D) 58th - "We need to target investment in high-wage, high-tech industries in economically distressed areas to create family-sustaining jobs. With that said, as the current chairman of the Economic Development Committee in the Erie County Legislature and a member of the ECIDA, I understand first-hand the need for reform within Industrial Development Agencies. This begins and ends with accountability. We cannot afford to give away millions of dollars without demanding that the companies receiving this money provide measurable results in the form of good-paying jobs. If companies fail to live up to their end of the bargain, there needs to be ramifications. The same goes for the Empire Zone program, which is now being phased out and replaced with the Excelsior Program. In order to ensure that both of these programs are spending taxpayer’s dollars wisely, we need additional accountability."

MG (R) 60th - "The Economic problems that we are experiencing here in the Buffalo/Niagara falls are second to none in the state. With an all time low in the economy, and with an all time high in state spending in Albany, the 60th district seems to have been no less than financially abandoned. With a few changes we can reverse this gross overspending, and bring money back to our area once again. Concentrate more on our local economy and REALLY promote jobs, and less on what seems to be never ending cash flow – downstate."

AT (D) 60th - "I sponsored IDA reform bill in the NYS Senate, which ensures that when tax dollars are spent for the purpose of economic development, good paying, sustainable jobs are created to provide long-lasting economic vitality."

Q: What policies or programs would you propose or support to ensure good jobs for Western New Yorkers?

TK (D) 58th - "Our region desperately needs good-paying jobs. Because of this, I have made job creation the focal point of my campaign. Once elected to the State Senate, I will have a small business specialist working out of my office. This specialist will work directly with business owners to help them cut through the bureaucracy and connect with the resources and tools they need to grow and hire more workers. This individual will help business owners develop strategies for strengthening their businesses. Poverty is a major issue in our region, as is the brain drain – only one in about every four students educated in Western New York stays here. To reverse these trends, we need to help build bridges between higher education and business – turning academic progress into economic progress. We also need to make UB 2020 a reality, while ensuring SUNY education is accessible for all students."

MG (R) 60th - "To ensure and support good jobs for WNY, we need to bring jobs to Buffalo and not down-state. For example UB 2020 would have brought tons of Jobs to Buffalo. Additionally, I propose turning the N.F. airport into a major northeast cargo.shipping hub for distribution of goods and services by air and land has been an issue at the. The Buffalo Niagara International Airport can handle international and domestic air cargo through any of its five cargo airlines, including Airborne Express, United Parcel Service, Menlo Forwarding, FedEx, and Superior Cargo Services. Let’s use that to our advantage."

AT (D) 61st - "I support the living wage and prevailing wage standards and have vocalized my support for these standards be in place for any work in Buffalo, especially when public dollars are used to support the project. I firmly believe that living wages foster self-sufficiency and therefore create sustainable and financially stable communities."

CEJ goes to ONE NATION WORKING TOGETHER rally in Washington, DC

On Saturday October 2nd, tens of thousands of energized people demanding jobs, education, and civil rights for ALL Americans gathered at the steps of the Lincoln Memorial for the “One Nation Working Together” march and rally. The rally, which carried the message of putting America back to work, pulling America back together, and moving America forward, attracted people from all 50 states and over 400 diverse organizations focusing on a variety of issues such as immigration reform, demands for jobs and education, LGBTQ rights, and an end to war spending. Among some of the organizations present were AFL-CIO, NAACP, UAW, SEIU, International ANSWER, Farm Labor Organizing Committee, National Gay and Lesbian Task Force, and Jobs with Justice. “One Nation” organizers estimated that the rally drew a massive crowd of over 175,000 people.

A Buffalo Jobs with Justice Delegation was in attendance, along with several other organizations from Western New York including Citizen Action, United University Professions from UB, NYSUT, and American Federation of Teachers. The bus that held the Buffalo Jobs with Justice Delegation left from Buffalo on a cold and rainy Friday night at 11:00pm, transporting a cohort of 60 people. The Coalition for Economic was made up of a group of 30 strong, including several students from Buffalo State Students for Peace. Despite the weather, there was buzz and excitement in the air as individuals boarded the bus.

Although it was a long night of travelling, once the bus arrived at RFK Stadium parking lot everyone became energetic and excited for the day’s upcoming events. Before going to the main event, the Buffalo Jobs with Justice Delegation attended a pre-rally hosted by the IAM’s Union of Unemployed. Participants heard encouraging speeches by Communication Workers of America (CWA) President Larry Cohen, IAM President Tom Buffenbarger, and our national affiliate, Jobs with Justice Executive Director Sarita Gupta. These speakers spoke about the importance of job creation and of citizens voting on November 2nd to ensure their voices are heard. From speeches and chants, an energized crowd got on the metro to the National Mall.

Upon arrival, it was clear that there was a massive presence in Washington as thousands of demonstrators converged on the National Mall with signs stipulating “Full & Fair Employment for All” and “Money for Jobs and Education.” It was inspiring to see so many organizations joining together from many diverse backgrounds, demanding change in our nation. Although several organizations voiced different issues and presented different tactics to accomplish their missions, all of these organizations were able to unite under the call of “One Nation.” This was clearly a rich opportunity for activists from all over the country to build networks which will hopefully lead to some exciting collaborative work in the future.

More inspiring speakers waited for rally participants at the National Mall. Speakers included some heavy hitters from the civil rights movement such as Reverend Al Sharpton and Harry Belafonte, along with union organizers, like Richard Trumka, head of the AFL-CIO. Student organizers committed to social justice, such as Colin Whited a deaf student activist, also offered motivational words about the state of education and the jobs crisis.

The following are some words that attendees found especially powerful from Marian Wright Edelman, founder of the Children’s Defense Fund and former advisor to Dr. Martin Luther King:

“Lesson six—almost done—remember that the Ark was built by amateurs, the Titanic was built by professionals. Use your citizen power, your vote, to wrest our ship of state from that small group of experts and powerful and greedy corporate pirates who recklessly jeopardized all of our lives for personal gain. Feel your own power. Use your own power. Don’t rely on experts.”

Marian Wright Edelman’s words convey an important message that the Buffalo Jobs with Justice Delegation carried back to Buffalo. In our own community, we need to be aware of the so-called “experts,” who are making decisions for us and without our input. Marian Wright Edelman’s words not only encourage questioning the role of these “experts”, but also challenge us to ask ourselves, “How can we use our power to change this and get our voices heard?” In a time when so many Americans feel powerless, when the state of the economy feels unmanageable, and when we are presented with so many unique problems in our own city, Marian Wright Edelman reminds us that as citizens we do hold the power to make change. These inspiring words, along with the rest of those who spoke, will hopefully resonate in the actions of those around the country as they return home and get back to work in their communities.

-Katie and Sarah, MSW Student Interns