City Council Finance Committee meeting (January 9, 2023)

Jamestown City Council is looking at raising the Aged Exemption for property taxes in the City.

Assessor Lisa Volpe, presenting to the Finance Committee, said to qualify for the Aged Exemption, you have to be over the age of 65, have owned your house for a year, and your income has to be less than $19,000 to qualify for the city’s exemption and less than $22,000 to qualify for the County’s exemption, “It used to be that we’d raise it $1,000 a year, every year, and we kept up with what the County was doing so we had the same dollar amount. In 2012, we stopped. We froze it at the $19,000. County kept going for three more years before they froze theirs at the $22,000. I’ve got 32 people who, next year, will get dropped off. We’re losing about 25 to 30 people a year because that income level is frozen.”

Volpe said the increase in Social Security causes people to lose the exemption and then having to pay double in city and county taxes than what they were with the exemption.

Finance Chair Kim Ecklund requested Volpe put together a financial impact statement on how raising the limit would affect the budget and taxes.

She said Council had tabled increases in the past due to the significant financial impact, “I would suggest… I’m not 100% opposed to the idea at all.. I just would like to see it at $22,000 and maybe even in increment. I mean, I even have one resident saying it should go to $30,000. I get it. They’re hurting. We need to look and see what we can do but we also have to know before we approve it what the impact, come budget time, is going to be.”

Ecklund said any increase that might be approved would be based on the 2021 Income Filing.

The Finance and Public Works Committees approved a resolution to use $900,000 of American Rescue Plan funds for water main replacements on Roland Road and Juliet Street. The $7.5 to $8 million project would involve a total reconstruction of Juliet Street between Camp and Hunter Streets and Roland Road between Camp and English Streets.

Social Security benefits

The Social Security Administration announced that the 8.7% cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022.

On average, Social Security benefits will increase by more than $140 per month.

The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

The Administration announced other adjustments that take effect in January are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000.

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. People may also find out their information before then by creating or accessing an account online at www.ssa.gov/myaccount.

U.S. Senate Aging Committee member Senator Kirsten Gillibrand issued a statement on the cost-of-living increase, saying, “Today’s Social Security Administration announcement of an 8.7% increase in benefit checks, the largest increase since 1981, is fantastic news for more than 70 million Americans who are struggling with skyrocketing drug prices, prohibitive housing costs, and the rising cost of living.”

Rep. Tom Reed (R-Corning)

WASHINGTON – Congressman Tom Reed (R-Corning) is again ringing the alarm bell about the unsustainable of both Social Security and Medicare.

During this week’s conference call with regional media, Reed pointed to the most recent report from the Trustees of the Social Security and Medicare, saying that if things stay on their present course Medicare funds will be depleted by 2026 and Social Security will be insolvent by 2034.

Reed, who’s been a proponent of reforming both programs since first taking office in 2010, said that the time to act on changing the program is now.

“I think there is ample common ground in regards to issues that we could agree upon in order to stabalize and reform Social Security and Medicare to make sure that they are here for generations to come and that is also something that I noted from the trustees’ report. The advice from the trustees is that we must act soon rather than wait until the last minute,” Reed said.

Reed said he would be in favor discussing of several reform proposals, including raising or eliminating the payroll tax cap on Medicare, upping the age eligibility for both social security and Medicare, and changing the way Medicare funds are given out by shifting from a fees-for-service model to a value based model.

In addition to the reforms that Reed mentioned, Republicans on the House budget committee have put forward a 2019 budget proposal that would cut spending for entitlement programs like Medicaid and Social Security.

WRFA asked Reed if his latest push to reform the two programs was tied to the proposed budget he’ll be voting in the future.

“The budget has some proposals in it, from my understanding of looking at what came out of the committee, though it hasn’t come to the floor yet,” Reed said. “But bottom line: if folks want to deny the existence of the problem that the insolvency of Social Security and Medicare represent, that’s there choice. But I’m willing to accept what I think is a foregone conclusion that if we do nothing, Social Security and Medicare will collapse and it will be devastating for millions of Americans that are caught in that situation.”

The House Republican budget, titled “A Brighter American Future,” proposes to squeeze $537 billion out of Medicare over the next decade. To offset the loss in revenue, a series of reforms are being proposed that some fear would lead to fewer people having access to Medicare money and as a result being saddled with debt.

Social Security comes in for more modest cuts of $4 billion over the decade, which the budget projects could be reached by eliminating concurrent receipt of unemployment benefits and Social Security disability insurance.

It’s not clear if the budget proposal will come to the House floor for a full vote before the midterm elections.

Meanwhile, by calling for the reform of both Social Security and Medicare, Reed is making himself a target in the upcoming general election because its considered controversial anytime a politician calls for changing the programs, especially in a district where many constituents rely on the programs’ services.

Reed said that many in Congress won’t discuss the two programs because they are too concerned about how it might impact their re-election bids, but he feels the issue is too important to ignore and wants to work toward a solution to what he says is a major problem facing the country.

Donald Trump

WASHINGTON – The poor and the disabled are big losers in President Donald Trump’s $4.1 trillion budget proposal, while the Pentagon is a big winner.

The president’s plan for the budget year beginning Oct. 1 was delivered to Congress on Tuesday.  It calls for deep cuts in safety net programs, including Medicaid and the Children’s Health Insurance Program. The proposal also calls for big cuts in Social Security’s disability program.

According to the Associated Press, the proposed budget would slash Medicaid and the Children’s Health Insurance Program by $616 billion over the next decade. It would also cut the food stamp program by $191 billion and would cut funding for the Temporary Assistance for Needy Families (TANF) program by $22 billion. And Trump’s budget calls for cutting Social Security disability benefits by nearly $70 billion over the next decade by encouraging and, in some cases, requiring people receiving the benefits to re-enter the workforce.

As far as regional impacts, Trump’s budget would eliminate the Great Lakes Restoration Initiative and the Chesapeake Bay Program, saving $427 million next year.

The budget would also prohibit any funding for certain entities that provide abortions, including Planned Parenthood.

Meanwhile, defense spending and border security would get significant boosts, with the proposal adding $469 billion to defense spending over the next decade, while also including $2.6 billion for border security technology, including money to design and build a wall along the southern border.

The budget plan also calls for an increase for the Veterans Administration, including $29 billion over the next decade for the Choice program. The program allows veterans to seek outside medical care from private doctors.

REACTION TO BUDGET PLAN

Some members of congress have already said the proposed spending plan is dead on arrival, because it is too austere for Democrats and most moderate Republicans.

Rep. Tom Reed (R-Corning)

During a conference call with media on Tuesday morning, Rep. Tom Reed (R-Corning, NY 23) said he hadn’t yet thoroughly reviewed the budget proposal, so he wasn’t going to offer an evaluation. However, he did say that the budget was a good starting point for lawmakers in Washington to have the conversation about spending and how to prioritize what’s most important for the American people.

“I think this was a good start, in the sense of the president putting out in black and white what his vision is, and it allows us to engage in what I believe definitely needs to happen – we need to have a conversation about priorities in America,” Reed said.  “The $21 trillion in national debt that is building each and every day is not sustainable. We have to get the spending under control. We need to grow this economy, because if you reduce the spending at the same time you grow, we can tackle this national debt crisis that is looming on the horizon.”

Reed wouldn’t specifically say if he supported the full cut for Medicaid and other safety net programs being proposed by the president, but did say it’s something Congress needs to look at.

“Do I believe we can do Medicaid in a more effecient, effective manner? Absolutely. So if that means we can do it more efficiently and save hard working taxpayer dollars, I think that is a step in the right direction when it comes to looking at the program, reviewing the program when it comes to Medicaid. And as to what numbers that could result in when it comes to a reduction in expenditures, we’ll let good policy drive those numbers,” Reed said.

Governor Andrew Cuomo also released a statement on the budget, saying it’s an egregious attack on the values and priorities that built this state and this nation. He said the radical conservative agenda in Washington is putting corporations before people and billionaires before vulnerable New Yorkers, and the consequences would be catastrophic.

Donald Trump

WASHINGTON – President Donald Trump released the first budget blueprint of his new administration on Thursday, and it appears he’s held to his promise to build up the U.S. military while slashing domestic spending – even for programs that benefit the rural and lower-income Americans who voted for him last November.

The proposed $1.15 trillion “skinny” budget distills much of Trump’s sweeping campaign rhetoric into a set of hard choices and cold priorities. He is calling on Congress to boost defense spending by $54 billion, a move popular with many Republicans. A wall along the border with Mexico, a core campaign promise, would receive $4 billion to start construction.

Trump’s campaign promises to gut ineffective programs and shrink a bloated bureaucracy translated into a plan that cuts environmental protections programs, community development funding, housing vouchers, scientific research, a commission to create economic opportunities in Appalachia and other programs.

Funding for popular social services like Meals on Wheels, which provides food to the elderly, and after-school programs for children, also are on the chopping block. The outline – the start of negotiations with Congress – leaves untouched Social Security, Medicare and Medicaid spending.

Cuts that will impact his voting base in rural areas of the country include the elimination of funding to keep the Great Lakes clean, eliminating financial aid for rural and regional airports across the country, and flood insurance program funding.

EPA, GREAT LAKES CUTS

Trump proposes cutting the Environmental Protection Agency budget by 31 percent, from $8.3 billion in fiscal year 2017 to $5.7 billion in fiscal year 2018. That’s the largest cut among all Cabinet departments and major agencies.

The budget says that change, which would cut 3,200 EPA jobs, is needed “to ease the burden of unnecessary Federal regulations that impose significant costs for workers and consumers without justifiable environmental benefits.”

As part of the EPA cuts, the Trump budget eliminates the $300 million in annual funding for the Great Lakes Restoration Initiative (GLRI), which finances environmental projects all over the region. The initiative, created in 2010 with strong bipartisan support, has supported thousands of projects across the Great Lakes region. In December, the initiative’s funding was re-authorized by Congress.

TRUMP PROPOSES CUTS IN ARTS & HUMANITIES PROGRAMS

President Trump’s proposed budget calls for big cuts in a wide array of domestic programs — among them, agencies that fund the arts, humanities and public media.

Funding for the Corporation for Public Broadcasting (CPB) would be cut to zero under the proposal, and the National Endowment for the Arts (NEA) and the National Endowment for the Humanities (NEH) would be eliminated entirely, the first time any president has proposed such a measure.

CPB received $445 million in federal funding in the last fiscal year; the NEA and NEH got about $148 million each — a tiny portion of the roughly $4 trillion federal budget.

Most CPB funds go directly to local radio and TV stations, but the federal funds are especially crucial for local stations, as well as local arts groups, which often receive matching funds from other donors based on their federal allocations.

Trump’s plan now goes to Congress, which can make changes before enacting federal budget legislation

REACTION FROM NY OFFICIALS

New York Senator and Minority Leader Chuck Schumer, along with fellow NY Senator Kirsten Gillibrand have both come out strongly against the budget.

Senator Schumer said the budget clearly shows that the president talks like a populist, but clearly is out to only help special interests, adding that democrats in the senate will emphatically oppose the spending plan.

Gillibrand also said the President’s budget is irresponsible and will short-change middle class New Yorkers, seniors, and students alike while doing harm to a fragile economy.

Meanwhile, Governor Andrew Cuomo called the proposed budget “dangerous, reckless, and contemptuous of American values, adding that should be rejected by Congress out of hand.”

And State Comptroller Thomas DiNapoli said the President’s budget threatens funding for vital services including housing assistance, environmental protection, anti-poverty programs and more.

He added that it provides little specific information regarding the impact of broadly proposed cuts, but it is clear this budget will hurt New Yorkers.

Congressman Tom Reed’s (R-Corning, NY 23) office didn’t release a statement on the budget, but the congressman is expected to address the issue during his weekly conference call with media on Tuesday, March 21.

John Plumb

CORNING – Candidate for Congress, U.S. Navy Captain John Plumb (D-Lakewood), has accepted nearly 1,000 petitions from AARP on behalf of their members.

The petitions were signed by residents of New York’s 23rd district, urging candidates to “Take a Stand” by committing to working toward updating Social Security for the 21st Century. The event took place in Corning outside of the Social Security Administration building.

Plumb used the petitions to emphasize his contrast on senior issues with Republican Congressman Tom Reed, who he is challenging on Nov. 8.

Plumb said that Reed has voted against seniors, despite the lip service he pays to them in the district.

Plumb also said that Congressman Reed has an exceptionally bad record on senior issues, receiving a 10 percent voting score from the Alliance for Retired Americans in 2015 and a lifetime voting score of just 8 percent.

According to Plumb’s campaign, Congressman Reed has voted for a plan that would raise the retirement age for Social Security and cut benefits. Additionally, the Plumb campaign says Reed voted for a plan the Wall Street Journal said would “essentially end Medicare” by replacing it with a voucher program and increasing costs for seniors.

Rep. Tom Reed (R-Corning), has been a long-time supporter of the Keystone XL Pipeline legislation, saying it will create jobs and assist with manufacturing growth in the United States.

WASHINGTON –  Chautauqua County’s representative in the House says he’ll be focusing on three major efforts during the current session that he says will protect taxpayers.

Congressman Tom Reed (R-Corning), who has a seat on the House Ways and Means Committee, says the panel met last week to discuss initiatives it would like to pursue this year.

Reed said his top priority for the committee is to reform the federal tax code, focus on reeling in spending from the social security disability fund so that it doesn’t rely on the retirement fund, and also reforming the current Welfare system into what he’s calling “workfare” In order to create opportunity to break the cycle of dependency that keeps the working poor in poverty.

The Ways and Means Committee is the fiscal oversight committee on congress and is responsible for making budget recommendations.

Rep. Tom Reed (R-Corning)

WASHINGTON – Area congressman Tom Reed (R-Corning) announced this week that he will be supporting legislation that he says will help to protect social security.

Currently, social Security has two components, the disability insurance (SSDI) program and the much larger Old Age and Survivors Insurance program, for which almost all Americans become fully eligible when they reach retirement age. Congress has historically treated them as one system, moving money between one pot and the other if one is running short on funds and the other has plenty of money.

All signs show that the disability pot will be empty late next year if no action is taken. According to a report in the Washington Post, there is enough money in the larger pot to last until 2034, or to keep both programs solvent through 2033.

However, Reed is voicing his concern over shifting money from the regular SSI fund into the SSDI fund. The Corning Republican joined  fellow Republican Sam Johnson of Texas as co-sponsor of an amendment to House Parliamentary Rules that prohibits congress from shifting money between the two funds. That rule was voted on and approved on Tuesday.

During this week’s conference call with local media, Reed stated that the new rule is designed to protect the SSI trust fund. He said rather than using SSI moneys to cover the cost of SSDI, congress should instead identify ways to reel in SSDI spending – with the most obvious solution being to cut down on fraud and abuse. He also said that lawmakers may have to consider changing the rules outlining who qualifies for the disability funding. Another option altogether is to find another funding stream to cover the cost of the current SSDI system, although that is unlikely to happen with the Republican Controlled Congress putting a focus on cutting back in spending.

The Washington Times report states that the effect of the rule appears to be to force Congress into a debate about Social Security next year instead of sometime before 2033. Without action from Congress, Social Security will be forced to cut disability payments to all recipients by about one fifth.