Henry J. Stern
May 17, 2007  


We had not intended to write today, since we sent a column yesterday on congestion pricing and the assembly of world leaders that came to New York City on behalf of the environment. However, May 17 is a particularly sad anniversary in New York City's fiscal history.  The event escapes recent memory, but its effects grow greater as time passes.  Return
with us now to that chilling day of yesteryear.  From out of the past come the thundering hoofbeats of the great horse.
 
Eight years ago today, on May 17, 1999, Assembly Speaker Sheldon Silver steamrolled the repeal of the commuter tax through the New York State Assembly.  The tax, which was levied at the rate of 45/100 of one per cent of the salary of people who did not live in the City of New York but worked here, had brought in over three hundred million dollars a year to the City of New York, a sum that would have increased substantially due to inflation and prosperity.   The rationale for the tax was that commuters received police, fire, sanitation and other services while they were in the city, and should therefore pay a small share (about ten per cent) of what city residents pay in the city income tax.

The cumulative sum the city has lost due to this one legislative decision is now estimated at four billion dollars, and increases by a larger sum each year.  The legislature’s vote to repeal the tax  moved the city budget further from the structural balance which mayors have sought to attain.  In addition, the legislature has passed numerous pension enhancements and other mandates which the state did not fund, leaving the financial responsibility to the city, which Albany deals with as a large piñata which may be punctured as well.
 
To be fair, the State Senate and Governor Pataki also supported repeal of the tax.  They are upstate Republicans and the commuter tax affects some of them adversely.  It is the Democratic majority in the State Assembly that we look to protect the interests of New York City.  If the city is unable to secure its fair share of additional state funds, the least the Assembly can do is to see to it that the city is not injured by damaging new legislation aimed at our tax base.
 
In the Spring of 1997, there was a special election for a state senate vacancy in Rockland County, caused by the departure of the Democratic incumbent.  For stories about a previous Democratic state senator from Rockland, google Linda Winikow.  The Republican candidate to fill the vacancy came out for repeal of the commuter tax, which is predictable.  So did the Democrat.  The Republican then challenged the Democrat to get his house, the Assembly, to go along with repeal.

 The Speaker swallowed the bait, and pressured New York City Democrats under thumb to support the bill.  His deputy, Manhattan Assemblyman and County Leader Denny Farrell, co-operated with Silver, but a number of local Democrats rebelled.  The roll calls in each house follow at the end of this article.
 
It is alleged that Silver's decision was based in part on personal animus toward Mayor Giuliani, who held the Speaker in ill-concealed contempt.  Mayor Giuliani felt that way about a number of people, as did Mayor Koch.  I do not know what is inside Mayor Bloomberg's mind, but he generally holds his tongue when speaking of other political leaders, and that may be a virtue in terms of protecting the City of New York from the rage of others.

However, if a person believes public service to be a noble and honest profession, and acts honorably in his/her own affairs, it is impossible to have high regard for those who degrade the offices they hold through conflicts of interest, submission to lobbyists, failure to supervise employees, politically motivated appropriations for porkbarrel projects, and other varieties of inappropriate behavior.

  Nonetheless, there is value in discretion, and part of the game is going with the public pretense that officials, especially those of the same party, like and respect each other. In reality, their personal feelings are often quite the opposite, sometimes because of personal rivalry, and sometimes on the ground of ethical deficiencies by some practitioners.  What is particularly frustrating to the good guys is that bad behavior is no barrier to political success.  Bad guys are often more ingratiating and better infighters than reformers, who can be arrogant wonks and nerds convinced of their own super-powers and consequently disdainful of others.  Public probity does not correlate with personal charm.  Please do not ask us to graph it.

In any event, the Speaker will have great influence over determining mayoral control over the schools, a decision to be made in 2009.  He has significant power over the state budget, and the clout to pass, or not to pass, all state legislation.  The chances are that, having bested the governor in their first clash, he will co-operate to the extent he thinks appropriate in the interest if a strong Democratic showing in 2008 and the capture of the State Senate.  Silver also has more support in his own caucus because has supported them against a governor who some view as arbitrary, arrogant and abusive.  Others think Spitzer is the last, best hope for reform of a rotten government; that he was elected with a sweeping majority, and that he should be given a chance to be an effective governor.  The points being made are not mutually exclusive.
 
Some, probably most, legislators are honest and decent, within reason.  Others take money and favors for their votes, whether through their campaign committee, which is legal, or directly, which is a crime. Pay-for-play behavior is not necessarily legally punishable, but its prevalence is an open sore on government.    What is unusual with regard to the repeal of the commuter tax on May 17, 1999, is that the vote was not the result of pressure from lobbyists or contributors, the usual suspects in matters of this sort.  The push came from the Speaker's office, and the obedience of the slavish munchkins who wanted to be or stay on his good side.  They voted to repeal the tax despite its enormous cost to the city some of them are supposed to represent.

 Revenge for petty slights is a predictable part of politics, and it may not, on occasion, be altogether unjustified.  But four billion dollars is a terribly high price for the City of New York to have to pay for one man's nose being put out of joint by one other man, probably unwittingly.
It is an extravagant price even if you throw in the Rockland County senate seat which the Democrats lost anyway, which is what they deserved.


Here are the roll calls in the Senate and Assembly.  We have not yet identified the districts of all the legislators who supported or opposed repeal, but some names of people who have since left the legislature stand out.

FOR REPEAL; State Senator David A. Paterson, now Lieutenant Governor

AGAINST REPEAL; State Senator Roy M. Goodman, now president of the United Nations Development Corporation;   State Senator Marty Markowitz,  now Brooklyn Borough President Assemblyman Pete Grannis, now State Commissioner of Environmental Conservation;   Assemblyman Scott Stringer, now Manhattan Borough President;
Assemblyman Eric Vitaliano, now a United States District Judge for the Eastern District of New York.  He is a Staten Islander.


Roll Call For Senate
05/17/99   S5594-B    Senate Vote    Aye: 39   Nay: 16
                           
Aye     Alesi     Aye     Balboni     Aye     Bonacic     Aye     Breslin
Aye     Bruno     Aye     Connor     Aye     DeFrancisco     Aye     Dollinger
Nay     Duane     Aye     Farley     Aye     Fuschillo     Nay     Gentile
Aye     Gonzalez     Nay     Goodman     Aye     Hannon     Nay     Hevesi
Aye     Hoffmann     Aye     Johnson     Nay     Kruger     Aye     Kuhl
Nay     Lachman     Aye     Lack     Aye     Larkin     Aye     LaValle
Aye     Leibell     Aye     Libous     Nay     Maltese     Aye     Marcellino
Nay     Marchi     Nay     Markowitz     Aye     Maziarz     Aye     McGee
Aye     Meier     Exc     Mendez     Exc     Montgomery     Aye     Nanula
Aye     Nozzolio     Nay     Onorato     Aye     Oppenheimer     Nay     Padavan
Aye     Paterson     Aye     Rath     Exc     Rosado     Aye     Saland
Exc     Sampson     Nay     Santiago     Nay     Schneiderman     Exc     Seabrook
Aye     Seward     Aye     Skelos     Aye     Smith     Aye     Spano
Aye     Stachowski     Aye     Stafford     Nay     Stavisky     Aye     Trunzo
Nay     Velella     Aye     Volker     Nay     Waldon     Aye     Wright
 
Roll Call for Assembly
05/17/99   S5594-B    Assembly Vote   Yes: 92   No : 49
                           
No     Abbate     Yes     Acampora     Yes     Alfano     Yes     Arroyo
No     Aubry     No     Bacalles     Yes     Barraga     No     Bea
No     Boyland     Yes     Boyle     Yes     Bragman     No     Brennan
Yes     Brodsky     No     Brown     No     Burling     No     Butler D
No     Butler M     Yes     Cahill     Yes     Calhoun     Yes     Canestrari
No     Carrozza     Yes     Casale P     Yes     Christensen     No     Clark
No     Cohen A     Yes     Cohen M     Yes     Colman     No     Colton
No     Connelly     Yes     Conte     Yes     Cook     No     Crouch
Yes     Cymbrowitz     Yes     Daly     No     D'Andrea     Yes     Darcy
AB     Davis     Yes     Denis     Yes     Destito     AB     Diaz F
Yes     DiNapoli     No     Dinga     No     Dinowitz     Yes     Doran
Yes     Englebright     Yes     Espaillat     Yes     Eve     Yes     Farrell
Yes     Faso     ER     Ferrara     Yes     Fessenden     Yes     Flanagan
Yes     Galef     ER     Gantt     No     Glick     No     Gottfried
No     Grannis     No     Green     Yes     Greene     Yes     Griffith
Yes     Gromack     Yes     Gunther     Yes     Harenberg     Yes     Hayes
Yes     Herbst     Yes     Higgins     AB     Hikind     Yes     Hill
Yes     Hochberg     Yes     Hoyt     No     Jacobs     Yes     John
Yes     Johnson     No     Kaufman     Yes     Kirwan     Yes     Klein
Yes     Koon     Yes     Labriola     No     Lafayette     Yes     Lentol
No     Little     No     Lopez     Yes     Luster     Yes     Magee
Yes     Magnarelli     ER     Manning     Yes     Markey     Yes     Matusow
No     Mayersohn     Yes     Mazzarelli     Yes     McEneny     No     McLaughlin
Yes     Miller     No     Millman     Yes     Mills     Yes     Morelle
Yes     Murray     No     Nesbitt     Yes     Nolan     Yes     Norman
No     Nortz     Yes     Oaks     Yes     O'Connell     No     Ortiz
Yes     Ortloff     Yes     Parment     No     Perry     Yes     Pheffer
Yes     Prentiss     Yes     Pretlow     Yes     Ramirez     No     Ravitz
Yes     Rhodd-Cummings     Yes     Rivera     Yes     Robach     No     Sanders
Yes     Scarborough     AB     Schimminger     No     Scozzafava     Yes     Seaman
Yes     Seddio     No     Seminerio     Yes     Sidikman     Yes     Smith
Yes     Spano     Yes     Stephens     No     Straniere     No     Stringer
No     Sullivan E     No     Sullivan F     Yes     Sweeney     Yes     Tedisco
Yes     Thiele     Yes     Tocci     Yes     Tokasz     Yes     Tonko
No     Towns     No     Townsend     ER     Vann     No     Vitaliano
No     Warner     Yes     Weinstein     Yes     Weisenberg     No     Weprin
Yes     Wertz     No     Winner     Yes     Wirth     ER     Wright
Yes     Young     Yes     Mr. Speaker               



 
#375  5.17.07  1147wds