Dutchess County Regional Chamber of Commerce 2016 Contact Breakfast Wednesday, January 20, 2016 Presentation by Heather C. Briccetti, Esq., President and CEO And Ken Pokalsky, Vice President

Key 2016 Issues Legislative elections Maintain budget discipline Additional tax reform –Address small business, corporate reform “cleanup” Education policy Labor mandates –Minimum wage –Paid leave Workers’ compensation

Elections matter…

Uneven Job Growth in NYS % change in private sector jobs

NYS Job Growth by Sector % Change 2000 to 2014

6

Jobs by Sector Dutchess/Putnam Counties

By the numbers: Select Economic Measures 2014 DataDutchess County NYSUS Population change %+1.9%+3.3 Median house value $282,100$288,200$175,700 % with College degree 33.4%33.2%29.3% Median household income $72,471$58,003$53,482 Population in Poverty 10.2%15.7% (2013) 14.8%

Progress to date - Key Business Climate Reforms since 2011 Five low-growth budgets Corporate tax reform and rate reductions Estate tax reform Real property tax cap Recharge NY Academic standards & initiatives Wage theft notice repeal UI reforms and refinancing

Challenges Remain: Business Climate Factors and Rankings ALEC 18 th in liability system 28 th GSP growth 46 th in workers comp costs 50 th in domestic migration Tax Foundation 12 th in corporate tax –Up from 24 th in nd in UI tax 42 nd in sales tax 47 th in property tax 49 th in PIT

Preparing for 2016 Business Council Priorities Maintain State Budget Discipline Maintain the RPT Cap/Adopt Mandate Relief Small Business Tax Reform Workers Compensation Reform Infrastructure Investments Reduce Energy Assessment Education and Workforce Development CPA Partnerships

Preparing for 2016 Business Council Priorities Energy Infrastructure Investment SEQRA Reforms Scaffold Law Reform Support Transportation Alternatives Restore UI Experience Rating Contract Procurement Reforms Reject Wage/Benefit Mandates

Statistics on the skills gap s

Key Features FY 2017 Executive Budget $145.3 billion all funds spending 1.2% All funds spending growth 1.7% “state operating funds” $100 billion 5 year capital plan $29 million in state spending $23.5 billion in school spending $1 billion increase ($24.2 billion next year) Minimum wage, paid leave proposal $360 million recurring small business tax cut

Concerns about $15 Minimum Wage Increases labor costs in weak regional economies –$15.7 billion statewide increase Impact focused on few sectors, employers Sets NYS further apart from other states Adverse impact on jobs/hours –Especially for young, low-skilled Inefficient poverty fighter –20% to households below poverty level Largest share to 3x to 6x poverty level

Impact of Minimum Wage per FTE Hourly Wage$7.25$9.00$15.00 Payroll Cost$14,500$18,000$30,000 Social security$899$1,116$1,860 Medicare$210$261$435 Workers' Comp$598$743$1,239 TOTAL (2000 HRS/YR)$16,208$20,120$33,534 INCREASE FROM $7.25 $3,912$17,326 INCREASE FROM $9 $13,413

Our Advocacy Team: Heather Briccetti Johnny Evers* –Technology/Telecomm, Econ. Development Lev Ginsburg –Health, WC, UI, Legal Reform Sonia Lindell –Education/Workforce, Procurement Sara McDonnell –Administrator Frank Kerbein –HR, Construction, Transportation Ken Pokalsky –Tax Darren Suarez –Energy, Environment Cate Tully –Financial Services

Contact us: The Business Council of New York State, Inc. 152 Washington Avenue Albany, NY bcnys.org