Crains New York - December 10, 2012 - (Page 10)

OPINION T New Senate, old problems he state Senate was turned upside down last week by an unprecedented powersharing arrangement between Republicans and a breakaway faction of Democrats. But the issues confronting New York remain the same, and Gov. Andrew Cuomo was correct when he said the restructured Senate should be judged on how it deals with them. One immediate ramification: an expected vote on a minimum-wage increase, which Senate Republicans blocked last session. Bronx Sen. Jeff Klein, who heads the splinter group of five Democrats that will share control of the chamber, is the prime Senate sponsor of the minimum-wage bill, and appears to have received assurance from his new Republican partners that a vote will happen. (If it doesn’t, his new co-presidency of the Senate could be considered worthless.) But there is speculation that the bill, which would hike the statewide hourly wage floor to $8.50 from $7.25, could be stripped of a provision indexing the wage to inflation. Indexing was an important reason we endorsed the proposal last February; it would essentially take the possibility of big increases off the table, rather than subjecting minimum wage to the whims of an ever-changing Legislature. Indexing offers predictability, which businesses need. Mr. Klein also said campaign finance reform—which Republicans also stopped—would get a vote next year. A fair compromise would reduce what donors can give to political campaigns but not impose a public-financing model that Senate Republicans and some business groups despise. If the New York City Council is any indication, having taxpayers fork over $6 for every dollar raised by candidates does not produce a business-friendly Legislature. Two matters of importance to the business community did not make Mr. Klein’s priority list and were also missing from a “litmus test” that Mr. Cuomo released last week for the revamped Senate. One is the workers’ compensation system, which has seen no significant improvements since an early-2007 fix. That reform’s savings have since been whittled away by insurance premium increases, and its shortcomings have gone unaddressed. Groups that follow workers’ comp have suggestions to make the system better. The governor and legislative leaders (now four men in a room) should adopt some in 2013. The second issue is unemployment insurance. The fund that pays jobless claims had its seemingly safe surplus wiped out by the economic downturn following the 9/11 attacks and never recovered. Today it is several billion dollars in the red. New York cannot depend indefinitely on federal loans to sustain the program. But it must be brought to solvency in a manner that businesses can afford. CRAIN’S NEW YORK BUSINESS editor in chief Rance Crain publisher, vp Jill R. Kaplan EDITORIAL editor Glenn Coleman managing editor Jeremy Smerd deputy managing editors Valerie Block, Erik Ipsen assistant managing editor Erik Engquist senior producer, news Elisabeth Butler Cordova news producer Amanda Fung contributing editor Elaine Pofeldt columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson senior reporters Theresa Agovino, Aaron Elstein, Lisa Fickenscher, Matthew Flamm reporters Chris Bragg, Daniel Geiger, Andrew J. Hawkins, Annie Karni, Adrianne Pasquarelli web reporter, producer Nazish Dholakia art director Steven Krupinski deputy art director Carolyn McClain staff photographer Buck Ennis copy desk chief Steve Noveck copy editor Thaddeus Rutkowski data editor Suzanne Panara assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern intern Ali Elkin ONLINE AND INTERACTIVE SERVICES senior web developer, interactive Chris O’Donnell ADVERTISING, MARKETING AND PRODUCTION advertising director Trish Henry senior account managers Irene Bar-Am, Courtney McCombs, Suzanne Wilson account executive Jill Bottomley Kunkes sales coordinator Danielle Wiener newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) director, audience development Michael O’Connor senior marketing manager Catherine Schutten event producer Courtney Williams reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies TO SUBSCRIBE: Albany has lots of unfinished business CRAIN’S ONLINE POLL COMMENTS Power politics bloomberg news HOW TO FIX LONG ISLAND POWER AUTHORITY Crain’s Nov. 19 editorial, “Amateur hour at LIPA,” makes clear why fundamental change is needed at the utility, whose operational structure is unlike any in the country. Because LIPA has a staggering $11 billion in debt, some of it from the closure of the Shoreham nuclear-power plant, the best viable option is for it to become a full-service municipal utility. More than 2,000 utilities in the country are organized in this manner, most with competitive electric rates and high customer satisfaction. Privatization would require all of LIPA’s tax-exempt debt to be converted to taxable debt. This alone would raise Long Island’s very high rates by 20% or so. In addition, a private operator would need to make a profit, putting further pressure on rates. By reorganizing as a full- WOULD YOU VOTE FOR HILLARY CLINTON IF SHE RAN FOR MAYOR IN 2013? Yes. She has the experience, toughness and star power to be effective. No. She is tired and wouldn’t give it her all. Plus, her eyes are always on a bigger prize—the presidency. Date of poll: Dec. 4 service municipal utility, LIPA would be operated by professional utility management. The utility functions would then be carried out by LIPA workers and not by major outside contractors, as they are today. Clear accountability and control would be established, while improving efficiency and improving communications. —matthew c. cordaro The writer is chairman of the Suffolk County Legislature LIPA Oversight Committee and a former CEO of public and private utility companies More buffoonery from these twits in Albany. They look like statesmen only when compared to the New York City Council. More nonsense. Will they prorate the money they “appropriate” for their chamber’s leadership? —barney agate For print and digital subscriptions or customer service, e-mail customerservice@crainsnewyork.com or call 877-824-9379 (in the U.S. and Canada) or 313-446-0450 (all other locations). $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print subscriptions with digital access. www.crainsnewyork.com/subscribe TO ADVERTISE: Contact Advertising Director Trish Henry at thenry@crainsnewyork.com or call 212-210-0711. www.crainsnewyork.com/advertise FOR INFORMATION ON OUR EVENTS: WANTED: ANOTHER BILLIONAIRE MAYOR Re your Dec. 4 online poll (“Would you vote for Hilary Clinton if she ran for mayor in 2013?”): It certainly says a lot about the quality (or lack of it) among the current crop of possible mayoral candidates that we are considering a possible candidate to run the city who is qualified in skills but not in residency. With all his faults, Mayor Michael Bloomberg has left a very high standard for the next mayor. Are there any other civic-minded billionaires out there who would like to run? —marty Contact Event Producer Courtney Williams at cwilliams@crainsnewyork.com or 212-210-0257. www.crainsnewyork.com/events TO CONTACT THE NEWSROOM: 711 Third Ave., New York, NY 10017-4036 editorial phone: 212.210.0277 fax 212.210.0799 Entire contents ©copyright 2012 Crain Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. 355 votes ALBANY SELF-DEALING The Insider blog’s “Break up the Senate: GOP, Dems ink deal” (Dec. 4) reminds me of that proverb (or is it a curse?) “May you live in interesting times.” It is either a new form of bipartisanship or a new form of insanity known only to the Senate of New York state. —elinor PUBLISHED BY CRAIN COMMUNICATIONS INC. chairman Keith E. Crain president Rance Crain secretary Merrilee Crain (1942-2012) treasurer Mary Kay Crain executive vp, operations William Morrow senior vp, group publisher Gloria Scoby group vp, technology, circulation, manufacturing Robert C. Adams vp/production, manufacturing David Kamis chief information officer Paul Dalpiaz founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) 41% No 59% Yes FOR THIS WEEK’S QUESTIONS: Go to www.crainsnewyork.com/poll to have your say. CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to letters@crainsnewyork.com. Send columns of 475 words or fewer to opinion@crainsnewyork.com. Please include the writer’s name, company, address and telephone number. 10 | Crain’s New York Business | December 10, 2012 http://www.crainsnewyork.com/subscribe http://www.crainsnewyork.com/advertise http://www.crainsnewyork.com/events http://www.crainsnewyork.com/poll

Table of Contents for the Digital Edition of Crains New York - December 10, 2012

THE INSIDER
IN THE BOROUGHS
IN THE MARKETS
SMALL BUSINESS
BUSINESS PEOPLE
OPINION
GREG DAVID
REAL ESTATE DEALS
REPORT: PHILANTHROPY
THE LIST
CLASSIFIEDS
FOR THE RECORD
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - December 10, 2012