Mayor Ryan Participates in NYCOM’s 2010 Legislative Priorities Meeting

From Andrew Block, Director of Community Relations:

Mayor Ryan Participates in NYCOM’s 2010 Legislative Priorities Meeting

Pension reform and supporting AIM top Mayor’s agenda



BINGHAMTON, NY – Mayor Matt Ryan today traveled to Albany to participate in the New York Conference of Mayors’ meeting on legislative priorities for 2010. The two items topping Mayor Ryan’s legislative agenda are pension reform and supporting Aid and Incentives to Municipalities (AIM).



“In these difficult economic times, municipalities are the last line of defense against rising property taxes,” said Mayor Ryan. “While other levels of government can pass costs on to us, it’s up to municipal leaders to push back on behalf of our residents and business owners. NYCOM is an important vehicle for this effort, and I’m proud to join the Conference in advocating for Binghamton and all of New York State’s cities, towns and villages. When it comes to protecting the taxpayer in 2010, our top priorities should be pension reform and supporting AIM. That’s the message I’m taking to Albany today.”



PENSION REFORM

Contributions to the State pension fund have increased sharply in the last nine years, and the impact on municipal finances has been significant. For all municipalities except New York City, pension costs increased more than tenfold between 2002 and 2010. In this period, municipal expenditures increased 5.4%, but when the increase in pension contributions is removed, these expenditures actually decreased by 0.3%.



For the City of Binghamton, contributions have jumped more than 1,300%, from $330,000 in 2002 to $4.87 million in 2010. The 2010 levels would have been even higher if the City had not eliminated 38 positions.



According to the New York Conference of Mayors (NYCOM), these payments will continue to rise, unless the legislature passes significant reforms. Mayor Ryan and NYCOM have advocated several measures that would apply to new hires, including:



· Removing the 10-year cap on contributions by non-exempt employees, meaning that these employees would contribute to their pension throughout their careers

· Requiring contributions by those currently exempted from contributing

· Raising the age of retirement for non-uniformed employees from 55 to 62

· Restricting the use of overtime in calculating pension levels



“Binghamton’s skyrocketing pension costs are simply unsustainable, and the same is true for municipalities across our State,” said Mayor Ryan. “If we want to improve our fiscal health, the State must reform the pension system without jeopardizing fair benefits for our retirees. Several proposals strike this balance, and I strongly urge our representatives to pass them in the coming legislative session.”



AID AND INCENTIVES TO MUNICIPALITIES

At less than 1% of NYS’s annual budget, AIM is one of the most cost-effective tax relief programs for New York State municipalities, including Binghamton. Last year, the City received $9.7 million in AIM funds, without which local taxes could have been roughly 29% higher.

Since cutting AIM by 54% between 1989 and 1993, the State has increased program funding incrementally. Although AIM is still below its former levels, the City of Binghamton’s annual program revenues have increased 65% since 2005.



“Fair revenue sharing is essential for small municipalities to thrive,” said Mayor Ryan. “I applaud our State leaders for reviving New York’s revenue sharing program, and I urge them to continue until it’s fully restored.”