State Senator George Borrello talks with citizen about fuel costs

With the gas sales tax holiday set to end in less than two months, State Senator George Borrello is expressing concern over increasing gas and diesel prices.

Borrello said in the month of October, diesel prices increased $1.40 a gallon, “Right now, diesel fuel is in short supply. I heard that from several folks yesterday. I was at another place where they transport gas and I was speaking to an over-the-road trucker. In Pennsylvania right now, diesel fuel is over $7 a gallon. Now, that all has a ripple effect. Everything that you buy at a grocery store has to be transported. And everything has to be transported largely by diesel trucks and that means a cost increase for everything.”

Borrello said when sales tax holiday ends, the price per gallon of gas is expected to go up at least 18-cents at the beginning of the year. He said, for now, the tax holiday should be extended until the state figures out a better path.

Borrello said the State Legislature should be looking at how to harness energy sources in the state, “New York is rich with natural gas. New York is the third largest producer of hydro-electric power. We can do more of that. There are many alternatives and even clean, renewable alternatives that just aren’t being explored. We’ve become one trick ponies. It’s all wind and solar. There are many other ways for us to generate power affordably and also in a clean manner as well.”

Borrello added that he believes New York State needs a new energy policy.

Chautauqua County Executive PJ Wendel gave his reaction to the 2022-23 New York State Budget and also his opinions about a then-proposed resolution to cap the county’s sales tax on motor fuel sales, the increased interest by solar companies in the county, and more.

PJ Wendel

Chautauqua County Legislature (April 27, 2022)

The Chautauqua County Legislature approved a gas sales tax reduction by a vote of 12 to 6 Wednesday night.

The resolution sets a fixed rate per gallon at 12-cents. Legislators had expressed concerns over how the sales tax reduction would affect local municipalities. Legislator Jay Gould said his district has some poor towns, “And the Finance Department made us a list. And I got the list tonight. And my four towns will be losing $1,400 worth of sales tax and I don’t feel that’s enough to cripple them, so I will be voting in favor of the gas tax.”

Legislator Lisa Vanstrom said she was voting no on the resolution, calling it a public safety issue with how roads and bridge repairs depend on funding from the gas sales tax. She added that the resolution doesn’t guarantee a consumer cost reduction, “Reducing or capping this motor fuel tax will not guarantee a lower price at the pumps because the retailers have the ultimate choice of setting the price. So even if we’re kind and gracious enough to understand the need of a consumer for a break, it may not result in anything at the end of the day out of your pocket being saved.”

Finance Director Kitty Crow had informed legislators in committee meetings that the sales tax reduction should have a neutral effect on the county’s budgeted sales tax revenue for 2022.

Legislators voted 6 to 12 against a resolution that would have accepted a $75,000 grant to address vaccine hesitancy in the county with the goal to increase the vaccination rates in children and the African-American community.

Legislator Bob Bankowski took issue with how the resolution singled out specific groups, “It is basically singling out African Americans, Amish people because of their religion, children. At this point and time, I mean, this has been around now, COVID has been here for two years. I think people have decided if they’re going to get vaccinated or they’re not going to get vaccinated. And in general, this should be for all and not just singling out groups.”

A handful of residents had spoke out on the resolution during privilege of floor over concerns of over-reach by the Health Department.

A resolution filed by the four Democrats on the Legislature would set a fixed rate per gallon of 12-cents versus the current percentage of 4%. Concern was raised in both the Administrative Services and Audit & Control Committees about how the change in the tax would affect not just the county’s budget but local municipalities’ budget where sales tax revenue was concerned.

Finance Director Kitty Crow stated at both legislative committee meetings that she estimates the 12-cents per gallon fixed rate would result in the county meeting budgeted sales tax revenue figures for 2022.

County Executive PJ Wendel said the County Legislature instituted a “motor tax fuel holiday” in 2004, but that prices at the pump never actually went down. He said the same could happen this time too, “You should see a 36-cent drop per gallon as of June 1. What happens if you don’t? We have no control over that. The distributors, the retailers, they could say, ‘You’re going to give up the revenue? We’re not!’ An argument could say, ‘You raised your prices!’ ‘No, my prices were the same in June as they were in March. The only difference is my price hasn’t changed. I just didn’t lowered it in compensation for the tax rate reduction that state or county has.'”

The County Legislature’s meeting starts at 6:30 p.m. in the Legislative Chambers of the Gerace Office Building in Mayville. It is open to the public and is available through a livestream as well.

County Attorney Stephen Abdella and Finance Director Kitty Crow address Audit & Control Committee (April 21, 2022)

Democratic Chautauqua County Legislators are expected to pre-file a resolution Friday morning to alleviate the sales tax on gas in the county.

County Attorney Stephen Abdella informed the Legislature’s Audit and Control Committee that he had been contacted by Legislators Susan Parker, Bob Bankowski, Paul Whitford, and Billy Torres. Their resolution that would be on Wednesday’s full County Legislature agenda would opts for the fixed sales tax rate of 12-cents per gallon. Abdella said they had not set a sunset date for the resolution but were considering March 1.

Finance Director Kitty Crow said the county should still meet budgeted sales tax projections with the proposed 12-cents per gallon rate resolution, “So we wouldn’t expect a surplus and we wouldn’t expect a deficit. You know, I think that that would result in us coming in at budget.”

Crow said sales tax from motor fuel sales typically account for about 6% of the budgeted sales tax revenues.

No legislators from Audit and Control offered to co-sponsor the resolution, citing the need to gather more information about how it could affect local municipalities’ budgets. County Executive PJ Wendel said he had directed county staff to reach out to local municipalities to see if that information could be gathered before Wednesday night’s meeting.

County Attorney Stephen Abdella and County Finance Director Kitty Crow address Administrative Services Committee on April 18, 2022

County legislators heard initial proposals for how they could give consumers a break on gasoline sales tax.

County Attorney Stephen Abdella and County Finance Director Kitty Crow presented to the Administrative Services Committee on the proposals.

Abdella said while the state doesn’t allow counties to entirely suspend sales tax on motor fuel, Chautauqua County could suspend the 4-percent sales tax rate or a fixed amount per gallon rate such as 8-cents, 12-cents, or 16 cents a gallon.

He said if the county chooses a fixed-rate per gallon, there is a proviso by the state to adjust the fixed rate if the price of gasoline drops below what the sales tax percentage rate would be versus the fixed rate per gallon, “If we were to set a fixed rate of 16-cents which is roughly based on $4 a gallon, and when I say roughly it’s because if the price at the pump is $4 our tax is not on the full $4 because part of that $4 is a state and federal tax and our tax is not applied as a tax on a tax.”

He said at $4 a gallon for gas, the county receives 14.8 cents on a gallon and not 16-cents.

Crow recommended going with the fixed rate of $12-cents per gallon option as they estimate the county would still meet budget projections for sales tax, thus not hurting municipalities in their budgeted sales tax revenue figures, but still giving consumers a break on the cost of gas.

The Administrative Services committee opted not to create a resolution on the matter given that the Audit & Control Committee also will hear this presentation at its meeting at 8:35 a.m. on Thursday, April 21st.

Abdella said a resolution would need to be pre-filed by 10:00 a.m. this Friday in order to appear on the Legislature‘s voting agenda for April 27. He said an emergency resolution could be introduced on the floor next week as well.

The State is requiring resolutions on the gas tax issue 30 days in advance of them being implemented, versus the usual 90 days. The changes would not go into effect until the start of the next sales tax quarter, which is June 1st. The County Legislature must submit a resolution to the state by May 2nd in order to meet the June 1st implementation date.

Governor Kathy Hochul announces 2022-23 State Budget deal

New York State legislators and Governor Kathy Hochul have come to an agreement on a $220 billion state budget.

Hochul announced the agreement nearly a week after the budget was due. Lawmakers were expected to begin voting on bills Thursday night and finish those on Friday.

The agreement includes some changes to the state’s bail reform laws, the renewal of a popular pandemic-era rule that allows restaurants to serve alcoholic drinks to go, and a temporary halt to the state’s gasoline taxes.

The changes in bail reform include making several gun-related crimes once again eligible for bail, and to ease some of the timelines on discovery laws, which require that prosecutors provide defendants with evidence against them.

Hochul said there’s also agreement to amend Kendra’s Law, to make it easier for judges to refer mentally ill defendants to mandatory hospitalization or outpatient treatment. The agreement will also include funding for 1,000 additional psychiatric beds and mental health treatment.

The governor agreed with legislators to spend an additional $4 billion in the budget on programs, including expanded access to child care, although it stops short of the universal child care plan backed by some in the Legislature.

Hochul said home health care workers will receive a $3-an-hour wage increase as part of a multi-year, multi-billion-dollar package to raise the pay of health care workers. A plan known as Coverage for All, which would provide government-subsidized health care to undocumented workers, will be limited to those workers who are over the age of 65.

Hochul said the budget will devote 15% of total spending to the state’s rainy-day fund to be used if there’s a future economic downturn.

The budget will also include the suspension of two of the state’s taxes on gasoline, worth 16 cents a gallon, from June 1 until the end of the year. Hochul said the spending plan also includes the continuation of a middle-class tax cut and a property tax rebate.

New Yorkers ordering takeout food will once again be allowed to also order alcoholic drinks to go. The measure, which sunsets in three years, requires that all alcohol be secured in a container with a lid or cap. Full bottles of wine or liquor will not be permitted to be sold.

Liquor store owners, who opposed the measure, will get some concessions, including being allowed to open on Christmas Day.

The spending plan also creates a new state entity to oversee ethics. It will replace the Joint Commission on Public Ethics, or JCOPE, with a new commission that will continue to be appointed by the governor, Legislature and other statewide elected officials. The state’s law school deans will vet the choices.

Lawmakers were also poised to approve a deal that Hochul struck with the NFL and owners of the Buffalo Bills football team to fund at least $850 million in expenses for building a new stadium, in exchange for the team continuing to play in Buffalo for another three decades. Critics say the agreement, which could reach $1 billion when other expenses are counted, is too big a taxpayer giveaway to a well-funded league and the billionaire team owners.

Hochul defended the deal, saying some of the money will come from a gaming-related settlement with the Seneca Nation of Indians.

And voters will have a say in November on whether to approve a $4.2 billion environmental bond act that would help combat climate change.

Lawmakers are looking to add another $4 billion in additional spending to Hochul’s record $216 billion plan, but details on the final proposal remained elusive as sources speculated that negotiations could extend beyond Friday.

After blowing past last Friday’s budget deadline, Hochul and the Democratic-controlled state Legislature on Monday passed a last-minute budget “extender” to fund payroll obligations through midnight Thursday.

The delay is due to legislators hashing out details of the controversial criminal justice policy as well as “a host of non-budget issues that were thrown into the mix.”

Lawmakers in the state Senate and Assembly were on track to meet privately to discuss outstanding issues Wednesday evening.

One measure still on the table is the controversial expansion of Kendra’s Law, which permits court-ordered Assisted Outpatient Treatment, or AOT, and community supervision in cases of serious mental illness. The amended provision could include the involuntary commitment of people with mental illness following a judge’s decision.

Lawmakers are also close to a deal on rolling back the state’s controversial bail reform laws, mulling changes such as making more hate and gun crimes bail eligible.

They’re deliberating a measure that would allow judges to consider an individual’s criminal history to determine whether they could cause harm to a person or group of people.

For the Buffalo Bills new stadium, Hochul’s $1.4 billion project will be funded with taxpayers covering $600 million and residents of Erie County chipping in another $250 million. The teams’ billionaire owners, Terry and Kim Pegula, will foot $550 million of the price tag.

Measures still under consideration include:

• An extension of the pandemic-era “alcohol to-go” law
• Relief for high prices at the gas pump
• A plan to revamp the state’s ethics agency, the Joint Commission on Public Ethics
• More spending for home care workers, distressed hospitals, and SUNY and CUNY students.
• Increased funding aimed at combating discrimination against Asian-Americans

The New York Daily News reports the budget is expected to exceed Governor Kathy Hochul’s initial $216 billion ask.

Insiders said both the Assembly and the Senate were mostly in agreement on a framework for changes to the state’s bail and discovery laws, an 11th-hour request from Hochul that has stymied and slowed down talks.

Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie were expected to present the pubic safety proposals to rank and file lawmakers late Tuesday evening.

Criminal justice advocates, fearful that changes to bail reforms enacted in 2019 will lead to more people being imprisoned simply because they are poor, pleaded with lawmakers to reject any overhauls.

One legislative source said that moving past the public safety reforms will allow negotiations on other issues including child care funding and subsidies and a potential suspension of the state’s gas tax to advance.

While the state’s revenue bill was one of the measures expected to be prepared late Tuesday, the gasoline tax reprieve and Hochul’s plan to fast-track licenses for a trio of downstate casinos were not likely to be included. They could still appear in other budget bills later in the week, the source said.

An agreement appears to have been reached on an overhaul of the state’s beleaguered ethics panel that has so far failed to appease good government groups.

At the same time, sources confirmed that an extension of a controversial tax abatement for real estate developers that Hochul was seeking after a revamped version in her original budget proposal was rejected appears to be off the table.

The governor on Monday defended the secretive nature of budget negotiations, maintaining that everything has been “normal” despite the delays and frustration from lawmakers over the last-minute inclusion of her public safety proposals and millions in state funds for a new Buffalo Bills stadium.
Hochul also defended the deal she struck with the Bills’ billionaire owners that could cost New York up to $1.13 billion in state subsidies despite backlash from political opponents and lawmakers.

She said, “It is not majority taxpayer-funded, I want to be clear on that. The state share is 43%. So that’s not the majority, but that’s historically low for any public financing from the state.”

New York State Capitol

Governor Kathy Hochul and State Legislators have missed the deadline for an on-time state budget.

WXXI News reports the Senate and Assembly adjourned until Monday, when they say they will try again to reach an accord.

The next hard deadline for the budget to be in place is Monday afternoon. That’s when the state comptroller needs to process payroll for 62,000 employees who work at state-run hospitals, prisons and other institutional settings.

In a memo to state agencies, Comptroller Tom DiNapoli warned that if the budget is not completed by 4 p.m., it will delay the direct depositing of checks for the April 7 payday.

Senate Majority Leader Andrea Stewart-Cousins said she’s hopeful the budget can be in place by then.

The biggest sticking point has been whether to include revisions to bail reform in the budget and make other changes to the landmark 2019 criminal justice reform laws.

The Senate and Assembly did not include unrelated items like bail reform changes to their proposed spending plans.

And criticism continues over the deal struck Monday between Hochul and the owners of the Buffalo Bills football team. That agreement would require at least $850 million of state money. Some lawmakers and Hochul’s political opponents said it is too big a giveaway to the wealthy owners of a lucrative sports franchise.

Proposals including a gas tax holiday and allowing restaurants to serve to-go alcoholic drinks along with takeout food are still on the negotiating table.