Commissioner Thomas Mattox told legislators at a joint Assembly/Senate budget hearing that the state agencies have had a formal working relationship in this area since at least 1996. Following a reorganization of the Inspector General’s Office last year, the Department of Taxation and Finance no longer has on staff a deputy inspector general, who automatically came under the requirement to maintain secrecy.

The two agencies signed a memorandum of understanding specifying that dozens of employees of the inspector general would have access to the records, provided they received special training.

That didn’t sit well with Senate Finance Committee Chairman John DeFrancisco, R-Syracuse, a lawyer. He believes the memorandum of understanding provides overly broad authority to investigate state employees, without needing to go through the court system to get subpoenas.

“The inspector general is allowed to ask for information that he or she feels is necessary for an investigation. There’s nobody that there to have a check and balance over that request,” he said.

The Department of Taxation and Finance and the Inspector General’s Office just released a statement defending the memorandum of understanding, which the agencies have not released publicly. The Times Union published a story on the memorandum of understanding today.

“The story that appeared this morning in the Albany Times Union was misleading and inaccurate. The Department of Taxation and Finance’s Office of the Deputy Tax Inspector General previously reported directly to the State Inspector General, but was housed within DTF. To promote efficiency, the Office of the Deputy Tax Inspector General was consolidated into the Office of the New York State Inspector General. In light of this consolidation, the agencies entered into a memorandum of understanding to ensure that the Deputy Tax Inspectors General maintained the same authority and function as they always had. The MOU does not and was not intended to expand or diminish any authority or function, and to assert otherwise would be wrong.”

Commissioners Mou

The protesters did what they call a “mic check,” meaning one person will call out statements and the rest will repeat them. They all chanted, “Hey you millionaires, pay your fair share!”  Lawmakers at the public hearing waited until the protesters had their say before continuing.

They said lawmakers should have increased the income-tax rate more for the rich. A higher surcharge for New Yorkers who earn more than $200,000 expired Dec. 31. The deal struck in December keeps higher taxes on people who earn more than $300,000 a year, but it was lower than the expiring rate.

Members of Occupy Albany and Occupy Wall Street handed out a flyer that said they “denounce a tax policy for the 1 percent.” The state should “fully extend the millionaires tax and cut corporate tax loohoples,” it said. It also said the December tax deal was a $3 billion tax cut for the wealthiest New Yorkers.

This is a video of Colin Donnaruma, 31, speaking about what the Occupy protesters did today:

The lawsuit alleges that employees and agents of the bank have acted as MERS certifying officers and “repeatedly submitted court documents containing false and misleading information that made it appear that the foreclosing party had the authority to bring a case when in fact it may not have,” Schneiderman’s news release said.

The lawsuit claims the MERS system has “effectively eliminated” homeowners’ and the public’s ability to track property transfers through the traditional public records system because it is stored in a private database, which is full of inaccuracies and errors.

“The banks created the MERS system as an end-run around the property recording system, to facilitate the rapid securitization and sale of mortgages. Once the mortgages went sour, these same banks brought foreclosure proceedings en masse based on deceptive and fraudulent court submissions, seeking to take homes away from people with little regard for basic legal requirements or the rule of law,” Schneiderman said in a statement.

“Our action demonstrates that there is one set of rules for all – no matter how big or powerful the institution may be – and that those rules will be enforced vigorously. Only through real accountability for the illegal and deceptive conduct in the foreclosure crisis will there be justice for New York’s homeowners,” he said. 

More than 70 million MERS loans have been registered in the MERS System, roughly 30 million of which are active, Schneiderman said. The system was created in 1995 to get around county fees for recording, “avoid the hassle and paperwork of publicly recording mortgage transfers” and speed up the sale and securitization of mortgages, he said.

The attorney general said the use of MERS has led to filing improper foreclosure proceedings in the state, compromised the the integrity of the judicial process, and caused confusion and uncertainty over property ownership interests, according to the lawsuit.

In New York, MERS has filed more than 13,000 foreclosure actions against homeowners in which it is listed as the plaintiff, the lawsuit said. In many cases, it has no legal authority to foreclose and did not own or hold the promissory note, although it said otherwise in court papers, it said. Mortgage assignments frequently were “robosigned” by people who did not review property-ownership records.

The attorney general is seeking injunctive relief, damages for harmed homeowners and civil penalties, and it is requesting a court order requiring the defendants to “cure any title defects and clear any improper liens resulting from their fraudulent and deceptive acts and practices.”

Janet DiFiore, chairwoman of the commission, said in the release that the panel looked at “many well qualified candidates” and determined Biben “is the clear choice to become Executive Director of JCOPE.

“Ellen’s reputation as a tough and independent defender of public integrity has been demonstrated throughout her career,” said DiFiore, Westchester County district attorney. “I am pleased the Commission has authorized her being offered this important position and that she has accepted this offer. We look forward to Ellen’s arrival to assist us in our work.”

Biben, inspector general since Jan. 1, 2011, will earn $148,000 a year in her new post. She was an assistant district attorney in the New York County District Attorney’s Office and worked for Gov. Andrew Cuomo when he was attorney general as special deputy attorney general for public integrity.

“I am honored to accept the position of Executive Director of JCOPE, and I look forward to assisting the Commission in its critical mission of restoring ethics and public trust in government.”

Former New York Chief Judge Judith Kaye said she worked closely with Biben for more than a year on an important public-integrity investigation. “Based on my daily experience with her, I found her to be a consummate professional, totally trustworthy, and knowledgeable in the law,” Kaye said. “Ellen’s experience and integrity make her the perfect person for this position.”

David Grandeau, who led the now-former state Temporary Commission on Lobbying, said he thinks the appointment is a “superb” one. Grandeau was critical of the state Commission on Public Integrity, which replaced the Temporary Commission on Lobbying and the state Ethics Commission in 2007. He has been particularly critical of Barry Ginsburg, the commission’s director for the past few years.

Grandeau said Biben “will bring some legitimacy to a group of people that for the last four years has been an embarrassment.”

It wouldn’t be fair to accuse Biben of not being independent because she’s worked for Cuomo, Grandeau said. “You’ve got to let people prove their independence and I think if you look at her body of work at the AG and the IG, this is a tough lady,” he said.

“I don’t think she takes marching orders from anybody,” he said. “I think it’s a good day for Albany when we get someone capable, smart and tough in that position because for four years we haven’t had anybody that fit that description.”

“The League supported the establishment of JCOPE and its strong oversight role as a step toward restoring trust in state government.  We believe the appointment of Ms. Biben will contribute to that goal,” the group said in a statement.

Barbara Bartoletti, legislative director for the League, said the organization had not been aware of the appointment before reading it on news blogs this afternoon. It was first reported by the New York Times, which used anonymous sources.

The League is happy to see progress in staffing the commission so it can move forward with its work, Bartoletti said.

JCOPE hasn’t issued a release confirming the appointment. Janet DiFiore, chairwoman of the panel and Westchester County district attorney, could not immediately be reached for comment. Neither could a spokesman for Biben, a former assistant district attorney in New York City and was special deputy attorney general for public integrity for Gov. Andrew Cuomo, who was attorney general at the time.

Ellen Biben, pictured here, has been the state’s inspector general since Jan. 1, 2011. She was appointed by Gov. Andrew Cuomo. She is a former assistant district attorney in the New York County District Attorney’s Office. She served for 10 years, rising to the position of deputy bureau chief of rackets.

Janet DiFiore, chairwoman of the Joint Commission on Public Ethics, could not immediately be reached for comment, nor could a spokesman for Biben.

DiFiore, Westchester County district attorney, said last month that resumes were due by Jan. 20 and the panel wanted to have someone in place by the beginning of this month so the commission could start to fill empty positions.

The panel replaced the Commission on Public Integrity following passage of an ethics law last year that expanded oversight to include the executive branch in addition to the Legislature. Sixty investigations were placed on hold in August as the former commission shut down. Commission members have said there is a backlog of hundreds of cases.

According to the New York Times, which cited anonymous sources, Biben was appointed Tuesday in a secret vote of the ethics panel.

Lawmakers and the governor agreed last year to boost education aid 4 percent to $20.3 billion. The governor has recommended expanding a competitive-grant program that was set up in the current budget. The $50 million in initial funding for the two grants—for improved student achievement and management efficiency—is scheduled to be awarded in the 2012-13 fiscal year. The governor wants to greatly expand the program.

AQE is recommending that the $250 million—or at least $225 million of it to allow the existing program to be tested—be redirected. Of the total, $53 million should be spent on expanding pre-kindergarten. The balance of the money should go to school districts as operating aid. And the state should add additional funding to restore some of the $2.7 billion in education funding that has been cut in the past two years, Billy Easton, AQE’s executive director said at a news conference in Albany, one of seven AQE held around the state today.

The governor’s plan would restore $1 in $5 of cuts in the classroom over the past two years, Easton said. Redirecting the competitive grants would restore $1 in $4 of reductions, he said. Data on the impact by school district is available on AQE’s website. ”Still not enough, frankly. It’s going to be even at that point hard for districts not to make more cuts because of the double impact of inflation and the (property) tax cap,” Easton said.

The cuts in the past two years have led to layoffs of teachers, librarians and guidance counselors and a reduction in courses in the arts, careers and college prep, as well as fewer offerings in music and sports, Easton said. That includes reducing kindergarten in Poughkeepsie from a full day to a half day and cutting recess time due to layoffs; cutting pre-kindergarten in Yonkers from a full to a half day and reducing career and technical education, arts, music and sports. Meanwhile, wealthy districts like Rye, Westchester County, have a lot more to offer—22 Advanced Placement courses, 27 sports teams, and a limit of 20 students in a class in elementary school and 23 in middle school.

Mount Vernon, Westchester County, parent Brenda Crump said in a statement that children have lost teachers in English, math, music, art and media/library. There aren’t enough textbooks to go around, and the district have the money to provide adequate Regents/RCT prep classes and academic intervention and support, she said.

“Our children attending the Mount Vernon City School District are not the children of millionaires or billionaires; but they also deserve a quality education,” she said. “There’s no way our children can get a quality education without adding additional funding restorations to our school system.”

Odell Winfield, co-founder of the Sadie Peterson Delaney African Roots Library in Poughkeepsie said several districts in the Hudson Valley are facing insolvency. A number of high-needs districts either have closed or are considering shuttering elementary schools, she said in a statement. “State aid needs to be distributed in a way that supports our neediest schools and students rather than increasing their burden,” she said.

According to NYAPRS, Gov. Andrew Cuomo’s budget would continue the state’s overhaul of its health and mental-health systems in ways that are intended to continue consolidating and closing Office of Mental Health psychiatric hospitals, improve coordination of care and help avoid Medicaid hospitalizations and emergency-room visits. To achieve these goals, the state has been expanding managed care, establishing health homes and using behavioral health organizations. New York has 27 state psychiatric hospitals, about seven times the national average.

The organization said the state needs to do more than improve access to medical services and medications. It wants the state to “reinvest” the savings in community wellness, prevention and support systems. Research has shown that housing and economic stability and a community support system can reduce relapse rates and costly hospital visits, NYAPRS said in a statement.

“Otherwise, we will only be repeating the deinstitutionalization failures of the past where we closed the door to hospitals and ERs without placing sufficient services and supports in the community,” the group said.

Josue Hernandez, 32, of the Bronx said people with mental illness have a lot to offer, but they need more help finding jobs and housing and getting peer support after they are discharged from hospitals. He participates in a psychosocial club in the Bronx called the Boulevard Clubhouse, which provides placement in transitional jobs, advocacy and referrals and social programs. He finished a transitional-employment program and is now looking for a permanent position.

“My situation now, I’m dealing with finding a job after finishing my program. And it’s been a little hard,” he said.

He and his wife, Margaret, got married last July. They both belong to the Boulevard Club.

“They think that because I get disability and I work part time, they think I have enough to support the both of us. So until he gets a job, a lot of things are a stretch,” said Margaret Hernandez, 33.

Taxpayers spend more when someone is in a state psychiatric hospital than if they live in the community, said Christian Florio, a generalist/case manager at the Boulevard Clubhouse. “It actually costs less if you reinvest the money back into the community,” he said.

“A key is a symbol of the sanctity, safety and security of the home,” said Justin Haines, director of foreclosure prevention at Legal Services NYC – Bronx. “It represents the hard-earned down payments made to the American dream of home-ownership and also the equity that’s slowly slipping away.”

Cuomo did not include money for the program in his proposed budget for the 2012-13 fiscal year, which begins April 1. Without funding, the Foreclosure Prevention Services Program will shut down. The state has spent roughly $50 million in the past four years for 120 non-profits statewide that provide housing counseling and legal assistance. They have helped more than 80,000 homeowners and at least 14,000 homes, preserving more than $3.4 billion in property value and tax base.

Statewide last year, 345,000 homeowners received a 90-day notice of serious delinquency, according to a new report from the Neighborhood Economic Development Advocacy Project. Roughly 95,000 of them were in New York City. For every foreclosure filed, there are 14 homeowners in serious delinquency.

“These figures demonstrate what advocates already know, we’re not halfway through the foreclosure crisis,” Haines said. “And recent estimates indicate that it could take as long as 14 years to work through the current foreclosure docket in the courts.”

State legislation adopted several years ago gives homeowners whose residence is being foreclosed on to sit with representatives of the lending institution in hopes of restructuring the mortgage so they can stay in their home, said Sen. Jeffrey Klein, D-Bronx.

“The only way this program is going to be effective, the only way we’re going to stop foreclosures is making sure that that individual, with a stack full of paperwork, sitting next to a bank attorney, has the representation of people behind me here today,” Klein said at the news conference, referring to help from the non-profit groups.

Another recently adopted state law requires lending institutions to maintain foreclosed properties, Klein said.

“A lot of these banks are very quick to foreclose. But then when they own these properties, they take title to these properties, they don’t want to maintain these properties,” he said.

The bill would increase minimum hourly pay in New York from $7.25 to $8.50 on Jan. 1, 2013. It would be indexed to inflation “so the value of the minimum wage would not erode as the cost of living rises,” Silver said.

The speaker disputed critics of increasing the minimum wage, who have said that would reduce the number of jobs and hurt the economy. ”Studies show that minimum-wage earners spend extra dollars immediately in their corner stores, their local pharmacy, neighborhood restaurants, and thereby spurring economic growth and creating jobs,” he said. “Equally important, rigorous research conducted by economists in 2010 has debunked the myth that raising the minimum wage has caused job loss.”

Groups like Citizen Action, the Retail, Wholesale and Department Store Union and the state AFL-CIO are supporting the Assembly Democrats’ legislation.

The state Business Council and New York Farm Bureau oppose it, said the increase would hurt its membership. The groups said in a statement that studies have show increasing the minimum wage doesn’t decrease poverty or increase employment. Dean Norton, president of the Farm Bureau, called the proposed increase “a stealth tax masquerading as a benefit for workers.”

Heather Briccetti, president and CEO of the Business Council, said creating more private-sector jobs is the way to improve New York’s economy. ”Raising the minimum wage would only hurt New York’s small businesses, farms and not-for-profits that are struggling to make their current payrolls, and reduce job opportunities, in this difficult economy,” she said.

Scott Reif, a spokesman for Senate Majority Leader Dean Skelos, R-Nassau County, said the Senate GOP “will continue to promote policies that encourage job growth and make New York a more business-friendly state, just as we did last year partnering with Governor Cuomo.”

As for Cuomo, “The governor has been supportive of previous proposals to raise the minimum wage, and we will be reviewing the proposal through the legislative session,” spokesman Matt Wing said.

This is a video of Silver introducing the legislation:

New York’s minimum wage is $7.25, the same as the federal minimum wage. Silver’s proposal would index increases in the minimum wage to inflation, legislative officials said.

Assembly Democrats plan to hold a news conference Monday to introduce the bill.

Silver announced early this month that increasing the minimum wage would be a priority for Assembly Democrats this legislative session.

“Frankly, it is absurd to expect anyone – let alone a working family – to afford the cost of living today and be able to invest in their future on a salary of $7.25 an hour; or $15,000 a year,” he said before Gov. Andrew Cuomo’s State of the State speech Jan. 4.

New York’s minimum wage is more than $3 less than what it would be if it had kept pace with inflation in the past four decades, according to the National Employment Law Project Action Fund. The state’s minimum wage has gone up 10 cents in the last five years and is lower than 18 other states.

Ten states index their minimum wages each year to keep pace with the rising cost of living, the group said.

Cuomo hasn’t taken a position on the issue.

New York City Mayor Michael Bloomberg joined Silver a few weeks ago in calling for a hike in the minimum wage. The mayor said in his State of the City address that increasing the minimum wage would help “those who are trying to help themselves,” but it
also a “balancing act.”

“Right now, I believe we are slightly out of balance. The genius of the free market is not always perfect. Two of our neighbors – Connecticut and Massachusetts – have raised their minimum wage above the federal standard to address higher costs of living,”
he said at the time.

But the National Federal of Independent Business in New York recently said it was opposed to a hike, arguing that it would drive jobs out of the state and make it more difficult for entry-level workers to find employment.

“Small employers that can’t afford the increase will simply find ways to avoid creating new jobs,” Mike Durant, the
organization’s New York director, said in a statement. “And the jobs that are available will be more attractive to people who have more experience. People with the lowest skills and the least experience will be crowded out of the market.”

Senate Majority Leader Dean Skelos, R-Nassau County, said earlier this month that Senate GOP majority would be willing to take a look at a minimum-wage hike but would not want to hurt businesses in the state.

Skelos spokesman Scott Reif said Sunday that “Senate Republicans will continue to promote policies that encourage job growth and make New York a more business-friendly state, just as we did last year partnering with Governor Cuomo.”

The National Employment Law Project Action Fund said in a recent statement that increasing the minimum wage would “help boost consumer demand and spur economic recovery.”

“We can consolidate how we do engineering and planning, right of way acquisition, environmental review to maximize those resources,” she said after speaking at a public hearing on Gov. Andrew Cuomo’s proposed budget.

McDonald, pictured here, said the administration hasn’t decided yet what the six new regions will be and where they will be headquartered.

Assemblywoman Donna Lupardo, D-Endwell, Broome County, said in a statement today that she is concerned the Binghamton area could lose its regional office.

“I understand the governor wants government to be more efficient, but we need make sure the Southern Tier isn’t negatively affected,” said Lupardo, a member of the Assembly Transportation Committee.

The DOT’s Region 9 is headquartered at the Binghamton State Office Building and covers seven counties: Broome, Chenango, Delaware, Otsego, Schoharie, Sullivan and Tioga.

“The DOT regional office is critical to our ongoing flood recovery,” Lupardo said, referring to Tropical Storm Lee last September. “They are also managing vital infrastructure projects, such as the I-86 conversion. I want to make sure that DOT consolidation plans do not delay repairs to roads, bridges and other critical work. I’m also concerned about our workforce. We can’t afford to lose jobs at this point in our local economic recovery.”

The poll, which was conducted last week through phone interviews, found that 52 percent of state residents think the state is headed down the right path, while 40 percent said it was going down the wrong path and 8 percent were unsure. It was commissioned by NY1/YNN.

In October 2010, when the same poll was conducted right before Gov. Andrew Cuomo took office, 72 percent of New Yorkers thought the state was headed in the wrong direction. Cuomo has been able to build a wealth of support based on a mostly successful first year in office.

“I think there are several (reasons why) and most of them can be traced back to Gov. Cuomo,” said Lee Miringoff, director of the Marist Institute. “Cuomo has redirected a lot of what has been poor functioning of Albany and a sense of a broken relationship between Albany and the voters.”

The poll found 48 percent of Republicans believe the state is going in the right direction, a 20 percent increase from the last such poll in November.

Cuomo received strong support in the poll, earning a favorability rating of 76 percent in the state, a 6 percent increase since November. Though his approval rating was slightly lower at 58 percent, the support for Cuomo is unlike most places around the country, Miringoff said.

“In terms of being a strong leader and fulfilling campaign promises … all those questions we’ve been asking about him, clearly he’s now been very successful in governing from the middle in a very polarized time,” he said.

Support for some of Cuomo’s recently announced initiatives was more mixed.

The poll revealed a 10 percent decrease since November in support of developing non-Indian commercial casinos in the state. However, half of state voters still support the idea compared to 41 percent who oppose it.

Other parts of Cuomo’s 2012 budget plans received more enthusiastic support from New Yorkers including the governor’s overall handling of the budget, of which 65 percent of voters approve.

The poll also included approval ratings for the Legislature. The Senate and Assembly garnered poor ratings, but there was a slight uptick for both. The Senate earned a 26 percent approval rating from voters, a 7 percentage point increase since November, while the Assembly earned a 24 percent approval rating, an increase of four percentage points.

Marist surveyed 681 adults in New York Jan. 18 and 19. The margin of error is plus or minus 4 percentage points.

A number of groups—including the Alliance for Quality Education, the state Council of School Superintendents and the state School Boards Association—have criticized the governor and urged him to instead spend more money on general education aid. State funding for education is scheduled to increase 4 percent in the next fiscal year, following two years of steep cuts.

The state Board of Regents’ budget proposal included $50 million for the two programs. State Education Commissioner John King told lawmakers this week that he had concerns about the impact it would have on funding for high-needs districts, particularly in light of the 2 percent tax cap. The Council of School Superintendents and AQE also support spending just $50 million on the grants.

Organizations that are backing Cuomo’s recommendation include NYCAN: The New York Campaign for Achievement Now, Students for Education Reform, Democrats for Education Reform in New York City, Buffalo ReformED, District Parent Coordinating Council of Buffalo, Parent Power Project in Rochester and Democracy Builders.  This is their statement:

“For years, the special interests in New York State have fought successfully to protect the education bureaucracy at the expense of our students. The results of their efforts speak for themselves: New York State now spends more on education that any other state in the nation but we are only 38th in graduation rates. We can no longer accept an education system where the bureaucracy thrives while our students fail.

“Governor Cuomo has put forward a bold education proposal to change the status quo and create an education system that finally puts students first—the only way that students will truly succeed. A key part of this agenda is the Governor’s proposal to have $250 million in increased education spending allocated through competitive education performance grants. This is exactly the type of strategic approach we need to ensure that we are funding education based on student outcomes, not just continuing to throw money at systems that are failing our students. These grants will reward high needs districts that show they are helping struggling students improve each year; the competition will push all schools to do better and those that succeed will have created established models for success that others can follow.”

“As they have in years past, the special interests are fighting hard against rewarding performance, but there is little outrage over our growing number of failing schools. Instead, these special interests fighting for a blank check to protect the adults at the expense of the students and grow the bureaucracy. The special interests have fought hard to reward the bureaucracy and ignore student achievement, and in doing so created the struggling school system we have today and we cannot let them win again. We encourage parents, students and all New Yorkers who want to change our schools for the better to fight back by signing up at www.NYStudentsFirst.com or participating in the growing conversation with @NYGovCuomo on Twitter by using the #NYStudentsFirst hashtag.

“Throwing money at the bureaucracy and watching students fail simply doesn’t work. Governor Cuomo’s bold proposal to reward districts that show higher student performance truly puts students first.”

A recent change in state law sets statewide goals for MWBE contracts and penalizes agencies that don’t substantially meet their goals, according to SUNY. Gov. Andrew Cuomo issued an executive order a year ago that sought to remove barriers from minority- and women-owned businesses from obtaining state contracts.

“Increasing the utilization of MWBEs is an important element of SUNY’s contribution to the growth, vibrancy, and diversity of New York State’s economy,” Trustees Chairman H. Carl McCall said in a statement. “Governor Cuomo has made access for MWBE enterprises a central part of his agenda. I am proud to say that SUNY is up to the task of assisting the Governor to achieve this critical goal.”

SUNY Chancellor Nancy Zimpher said the university system exceeded its goals in the procurement of commodities and services for the first time in the 2010-11 school year, and its goals for 2011-12 are to use at least 20 percent MWBEs for all construction, construction-related work, non-construction-related services and commodities.

The university’s policy since 1983 has been to take action to ensure that MWBEs have the opportunity to participate in providing goods and services at competitive prices. SUNY established university-wide goals for hiring MWBEs this school year. They are lower than the statewide goals, but SUNY plans to have its goals in line with the state’s by 2015.

These are the state’s goals, followed by SUNY’s goals for 2011-12:

Fran Turner of the Civil Service Employees Association, who testified this afternoon on workforce issues before a joint Assembly/Senate budget committee, said members of the blue-collar union do not make big salaries and are not “breaking the bank” when it comes to pensions. The union made concessions in agreeing to a new contract last year, including furlough days and higher health-insurance costs, and doesn’t believe the state is living up to its side of the bargain. The budget calls for downsizing and privatizing, she said.

Public Employees Federation Vice President Joe Fox said what Cuomo is calling “civil service reform” is a bad idea. It would lead to less security, reduced benefits, higher costs and lower pensions for workers. He noted that the current pension fund is fully funded, and 83 cents of each dollar paid out is based on earnings from the fund. The average pension is $19,150 a year, he said.

“Cloaked in the guise of reform, this proposal is about politics and placating big business special interests, not sound public policy,” he told lawmakers. “This bill ignores the landmark Tier 5 pension reform enacted by the Legislature less than two years ago which is estimated to save the state and local governments $35 billion over 30 years. We don’t need a new tier to cut costs, just let Tier 5 work as intended.”

The civil-service reform “would mean a lower standard of living for future retirees, reduce the ability to recruit individuals who see public service as a career and create a mercenary mentality where the commitment to public service no longer exists,” said Fox, whose union is the state’s second largest.

E.J. McMahon, senior fellow with the conservative Empire Center for New York State Policy, plans to tell lawmakers that the governor’s budget includes “the most significant and potentially far-reaching reform of New York public pensions in at least 36 years.” He is scheduled to testify this afternoon.

“New York’s current defined-benefit pension system represents a significant financial and generational trade-off, the costs of which have not been sufficiently recognized,” he said in a statement. “Current government employees are promised a constitutionally guaranteed benefit, the closest thing to absolute retirement security, which replaces a relatively high percentage of their pre-retirement income and is ultimately supplemented by full Social Security benefits.  Taxpayers get to assume all the financial risk associated with delivering on this promise—while also saving for their own retirements.”

Below is Joe Fox’s full testimony:

PEFtestimony

The president last night called on Congress to stop the interest rates on student loans from doubling in July and extend the tuition tax credit.

“Of course, it’s not enough for us to increase student aid.  We can’t just keep subsidizing skyrocketing tuition; we’ll run out of money,” Obama said in his speech. “States also need to do their part, by making higher education a higher priority in their budgets.  And colleges and universities have to do their part by working to keep costs down.”

Zimpher said the president’s focus during the meeting with college officials was “tackling the ‘iron triangle’ of higher education – cost, productivity, and access and completion.” What he called for last night is in line with the approaches SUNY is taking this year, she said.

This is from the statement she released:

“At SUNY, we stand ready to support the President’s call. We are working to develop cradle-to-career education networks throughout New York State and have invited K-12 officials to join us in ensuring that students who enter college are well prepared and can graduate on time, ending the need for remedial education. And as the President aims to double the number of work-study jobs in the next five years, SUNY is doing its part. We are bringing co-operative education to scale, helping students across the SUNY system obtain paid internships and hands-on work experience with local businesses in their field of study.

“Like President Obama, we also see that retaining our graduates is critical to the rejuvenation of our economy. SUNY’s partnerships with business and industry provide all students – whether they are born New Yorkers or have sought an American education from overseas – with an incentive to stay in the U.S., build a career here after graduation, and contribute to strengthening our economy.

“Above all, SUNY welcomes the President’s challenge to cut higher education costs. As we continue to identify opportunities for our 64 campuses and central office to share services and to become better stewards of student tuition dollars, we are committed to moving $100 million in administrative costs to instruction and student services over the next five years.”

This is Schneiderman’s statement on the appointment:

“I would like to thank President Obama for his leadership in the creation of a coordinated investigation that marshals state and federal resources to bring justice for the victims of the misconduct that caused the mortgage crisis.

“In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the economic crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again.

“The American people deserve a robust and comprehensive investigation into the global financial meltdown to ensure nothing like it ever happens again, and today’s announcement is a major step in the right direction.”

The new unit is charged with determining which institutions violated the law, compensating victims of the wrongdoing and helping provide relief to homeowners who are struggling as a result of the housing market collapse. It will work with state and federal law-enforcement agencies that are investigating and prosecuting financial fraud. The law-enforcement agencies are working with some of the largest banks in this country on a possible settlement over their misconduct.

Schneiderman played a role nationally on these issues by speaking out against a settlement with top banks in connection with the role they played in the mortgage meltdown. Other attorneys general joined him in opposing the deal, and it fell apart.

In a statement, AFL-CIO President Richard Trumka praised Obama for setting up the unit and appointing Schneiderman:

“Recognizing the need for accountability the President powerfully insisted on a more humble Wall Street subject to a thorough investigation of the misconduct in the mortgage markets that wrecked our economy by the full range of federal and state civil and criminal authorities. We applaud the creation of a new mortgage crisis unit to be co-chaired by New York’s Attorney General, Eric Schneiderman.”

The association’s statement said it took seriously the recommendations from the two audits in 2010.

“NYRA has and will continue to maintain financial discipline. To implement all of the recommendations made in the 2010 audit reports inside of a year would have required more money and resources than NYRA could prudently spend at that time, but we fully understand the importance of this process and remain committed to completing it,” the association said.

NYRA highlighted parts of DiNapoli’s audit that said the association made progress in implementing the 2010 recommendations, for example cuts in staffing, terminating its integrity counsel and hiring another for less money and other measures.

The comptroller’s audit said NYRA expects a $19.7 million loss from racing operations in 2012. NYRA said the $19.7 million figure is “misleading.” The group anticipates its net income will be about $19 million in 2012. Operating income from current racing operations, not including video lottery terminal proceeds for operations and expenditure, is projected to be $1.4 million. The 2012 budget wasn’t within the scope of the state audit and wasn’t discussed with NYRA management.

“The comptroller’s statement expresses concern regarding how NYRA will use the money from VLTs. As a reminder, the use of VLT proceeds is regulated by statute and primarily allocated to purse money and capital expenditures,” the statement said. “NYRA conducts a rigorous annual budget review and approval process and NYRA’s budget is reviewed by the Franchise Oversight Board. Furthermore, NYRA’s financial results and internal controls are routinely audited. NYRA is committed to the highest standards of corporate governance, integrity and management.”

“As 3 of only 8 female Senators, they hoped this resolution would encourage public awareness of the challenges all women face when making personal, private health decisions,” Gillibrand wrote in the letter, which was sent out by state Senate Democrats just after the Assembly passed the resolution. “In what can only be characterized as outright censorship, the GOP Majority not only refused to accept the resolution but returned it to the Senators with more than 90 percent of the language crossed out. They should be ashamed!”

Gillibrand asked people to sign an online petition telling Senate Republicans to accept the original resolution, and to join her in helping Democrats win control of the chamber in this year’s elections. She accused tea party “extremists” of leading the attack on reproductive health care. In New York, Senate Republicans are using “heavy handed, draconian measures” and backing “an agenda completely out of touch with the mainstream,” she said.

The three senators she referred to are Andrea Stewart-Cousins, D-Yonkers; Liz Krueger, D-Manhattan, and Toby Stavisky, D-Queens.

The Senate Republican majority modified the resolution because it didn’t conform with Senate rules as was written, according to Mark Hansen, a spokesman for Senate Majority Leader Dean Skelos, R-Nassau County.

This afternoon, the Democrat-controlled Assembly adopted the Reproductive Rights and Justice Week resolution on a voice vote. A few weeks ago, Gov. Andrew Cuomo said one of his priorities this year is to get the Reproductive Health Act adopted by the Legislature. The legislation, first proposed in 2007 by then-Gov. Eliot Spitzer, would modify the state’s abortion law, which dates from before Roe v. Wade, to ensure it remained legal if the event federal law was changed.

“I never thought this despicable cause would rear its ugly head in a state like New York, but Republicans in the State Senate have swung open the doors of our government and invited in the worst offenders,” Gillibrand wrote.

“More than a year after my office’s last audit and real-time financial monitoring of NYRA, the organization still has much work to do to carry out the reforms we recommended,” DiNapoli said in a statement. “NYRA stands to squander significant revenue from the recently opened VLT (video-lottery terminal) franchise at Aqueduct. I will continue to closely monitor NYRA to ensure it reins in unnecessary spending and does not waste the new money coming in from the Aqueduct racino.”

Findings in the audit released today include:
—NYRA has projected a deficit of $11.5 million for the 2011 calendar year and a loss of $19.7 million from racing operations this year. The only way it could show a profit this year is through new VLT revenues.
—The association cut staffing by 3 percent from 2009 to 2010, but it did not follow DiNapoli’s recommendation to prepare a staffing analysis for each department that includes the optimal number of employees in each.
—The association terminated its contract with its integrity counsel and awarded a more cost-effective contract to a different counsel, but it didn’t exam the cost effectiveness of existing or prospective contracts for personal and miscellaneous services.
—NYRA needs to evaluate if it needs to continue transporting horses between NYRA tracks at no cost to horse owners to stay competitive.

The two initial audits were released in 2010. In the audit released in July 2010, DiNapoli’s office found that the Racing Association waited more than a year after coming out of bankruptcy before initiating operational reforms. The second audit, which was released in August 2010, advised that NYRA implement cost-saving measures, conduct periodic cash counts and other verification activities without prior notice, develop an automated system for inventory of concession operations and other measures.

DiNapoli said his office discovered last month that NYRA was keeping a larger takeout percentage from exotic wagering than it was allowed to, which led the state Racing and Wagering Board to take public action against the association. 

Based on a 2010 law, districts across the state are required to partially implement the system this year, and have it in place next year for everyone. But negotiations between school districts and unions have been difficult, in large part because teacher evaluations will be tied to student growth on tests. Most of the roughly 700 districts in the state haven’t agreed on a plan.

In presenting his budget proposal for the 2012-13 fiscal year last week, the governor gave the state Education Department and NYSUT 30 days to iron out their differences on the new system. The governor said he would propose his own system otherwise. NYSUT sued the state on the evaluation system. The union largely won at the state Supreme Court level, and the state has appealed.

“I’m certainly optimistic about the process going forward,” King told reporters after spending two hours before the Legislature’s joint budget committee today. “I appreciate the governor’s leadership on the issue. I think the governor has rightly drawn public attention to the urgency of having a fair, rigorous, transparent evaluation system in place, and the urgency of moving forward together, as teachers, principals, the state Education Department, school districts moving together to implement the promises we made in Race to the Top.”

U.S. education officials have cautioned New York that it could lose hundreds of millions dollars if it doesn’t successfully put a new system in place that ties teacher evaluations to student performance, one of the primary reasons its proposal was chosen for $700 million in federal Race to the Top education-reform grants.

King said school districts should not cease negotiations during the 30-day period.

“What I hope people don’t do is make the mistake of saying, ‘Well we’ll stop talking with our bargaining units until this is done,’” he said. “I think those conversations need to continue because the success of the evaluation system is not only about what we do at the state level but it’s about good local communication about what great teaching and great leadership look like.”

King did not respond to a question on whether the Education Department would drop its appeal except to say that oral arguments are scheduled for Feb. 7.

“I think deadlines can often help to focus the mind,” he said.

A 2010 state law required that the growth in student performance be a factor in the evaluations of teachers and principals. The law helped New York secure nearly $700 in federal Race to the Top funding. A number of aspects of the evaluation system is subject to collective bargaining on the local level, which has led to delays in reaching agreements, and impasses in some districts.

This is King’s statement:

“The Governor is right to be frustrated. So far, there hasn’t been much progress. Earlier this month, I suspended School Improvement Grants because participating districts had failed to meet the deadline for acceptable agreements on evaluations. Now, the Governor has given SED and New York State United Teachers (NYSUT) 30 days to resolve this issue definitively. We should use those 30 days to have a healthy public debate on evaluations. We’re ready to sit down and start talking.

“There’s more than a billion dollars at risk. We cannot fail to meet the commitments New York State made in Race to the Top. More importantly, we cannot fail the students who are counting on us to deliver the education they need to succeed in college and careers.”

The U.S. Department of Education has put the state on notice last week that it could lose hundreds of thousands of dollars in Race to the Top money if it doesn’t speed up implementation of the evaluation system.

Cuomo called on the state Education Department and New York State United Teachers to resolve a lawsuit that is on appeal. NYSUT sued the state over parts of the evaluation system. A state Supreme Court judge largely agreed with NYSUT last fall. The Education Department is appealing the decision.

These are the changes he wants to implement:
—Increase employee contributions from 3 percent to 4 percent, 5 percent or 6 percent, depending on what the salary level is.
—Increase the retirement age from 62 to 65 and bar early retirements.
—Create a defined-contribution option in the new tier, similar to a 401k, which would be voluntary for new employees. The minimum contribution from the employer would be 4 percent of salary when it is matched by the employee, and employers could match up to 3 percent more of the employee’s contribution.
—Set up a system in which employee contributions to the pension would increase or decrease, within limits, based on economic conditions.
—Decrease the pension multiplier from 2 percent to 1.67 percent for each year of service, which would mean a 30-year employee would receive a pension at 50 percent of final average salary, rather than 60 percent.
—Prohibit overtime and other payments from being used to calculate final average salary.

The governor said he wants to set aside funding for labor contracts that are unsettled until April 1, but not after that.

But the budget recommends an ultimatum for school districts and teachers unions. Future aid increases, which will be tied to the growth in personal income, will not be handed over unless new teacher-evaluation systems are in place by Jan. 17, 2013.

Cuomo will give a budget address at 2 p.m. today.

Cuomo has called the existing law that requires districts to put teacher- and principal-evaluation systems in place a failure. Elements of the system are subject to collective bargaining, and negotiations in many of the state’s roughly 700 school districts have not reached agreements or are at an impasse.

Of the $805 million in new funds, $250 million would be set aside for an expansion of competitive grants for school districts based on performance and efficiency. Another $265 million would support increased expenses for expense-based aid programs, such as transportation and school construction, and $290 million would be handed out for basic classroom funding.

The governor proposes that 76 percent of the increase go to high-need school districts, and they will get 69 percent of total school aid.

The state Board of Regents had recommended 73 percent of the funding increase go to high-need schools. Regents had proposed setting aside only $50 million for competitive grants.

Cuomo’s budget provides a few more details on an education commission he plans to create through executive order. The panel’s focus will be on school accountability, in both management and teaching, to improve student achievement and operational efficiency.

A 2010 state law intended to boost New York’s chances for federal Race to the Top funding set up a new evaluation system that tied teacher and principal evaluations to growth in student performance. The law took effect this school year for English and math teachers in grades 4-8 and their building principals, followed by all teachers and principals in the 2012-13 school year.

New York won nearly $700 million from the Race to the Top program, which is intended to spur education reform around the country. The U.S. Department of Education put New York on notice last week that the state could lose hundreds of millions of dollars if it doesn’t make more progress on implementing the evaluation system and a new data system, also part of the 2010 law.

Published reports today based on anonymous sources said that is what Cuomo is prepared to do. The governor would not confirm the reports, but he said after a Martin Luther King Day ceremony in Albany that it is one of the issues under consideration. He presents his budget proposal for the 2012-13 fiscal year, which starts April 1.

New York State United Teachers wants to ensure programs for students and funding for schools are protected, especially since the state already has a teacher-evaluation law, spokesman Carl Korn said.

“New York’s teacher-evaluation law is the right law. It sets out a framework for a comprehensive, fair and rigorous evaluation system. It doesn’t make sense to harm programs that benefit students when New York already has a model law to evaluate teachers and principals and everyone’s working hard at implementing it,” he said.

The governor and state Education Commissioner John King have voiced their frustration with the slow pace of implementing a new teacher-evaluation system that factors in student growth. King recently announced he was pulling about $105 million in federal School Improvement Grants for 10 school districts that didn’t meet the Dec. 31 deadline for documenting they have an agreement on a new teacher-evaluation system. Districts can appeal.

Korn said NYSUT shares the governor’s frustrations, “but the answer is not to start from scratch or to tie education funding to the teacher-principal evaluation process but to work collaboratively with the Legislature and governor to try to move the process along. That’s what we’re prepared to do.”

To increase its chances of getting Race to the Top money, New York adopted a 2010 law requiring new teacher-evaluation and student-data systems and an expansion of charter schools. A one-year report card from the U.S. Department of Education on New York’s Race to the Top money cited the lack of progress on implementation of the teacher- and principal-evaluation system, among other problems. New York has been put on a “watch list” because of the progress report, which was released last week.

The governor got involved with teacher evaluations law year, when he advised the state Board of Regents it should make the regulations more rigorous and speed up the process for implementing the new system. He recommended removing regulations that prohibit the same measure of student growth on state tests from being used for an additional 20 percent of the evaluation, for a total of 40 percent.

NYSUT sued the Education Department on certain aspects of the teacher-evaluation system, and a state court largely agreed with the union. As a result, a number of the regulations were deemed invalid. The case is on appeal. “Implementation has been a challenge because of the state Education Department’s failure to put a working data system in place, $1.3 in education cuts and the appeal of the lawsuit,” Korn said.

Below is the text of the letter from the governor last year:

Albany, NY    (May 13, 2011)

Dear Chancellor Tisch:

Performance is the key to education. It’s not about how much we spend, but the results that matter. As data show our education spending hasn’t resulted in performance. New York schools spend 71 percent more than the national average, yet rank only 40th in graduation rates and 34th in the nation in the percentage of adults who have a high school diploma or the equivalent.

We must focus on measures and accountability. That is why the State Education Department’s (“SED”) current process to develop a teacher and principal evaluation system is critically important. We not only need a strong evaluation system that will improve the performance of our children, but also to support our educators so they can continually develop and improve.  Our goal should be to have the best system of evaluation in the nation, yet our proposed system falls short of other states, such as Colorado and Tennessee.

What SED establishes today will have a lasting effect for decades to come so it is imperative it’s done correctly. The current Draft Regulations for Teacher and Principal Evaluation (“Draft Regulations”) that were recently issued, however, need revision if we are to implement a system that will be the building blocks to greater performance in our education system.

Although there are a number of details in need of improvement, we recommend SED make the following comprehensive changes:
—Increase the percentage of statewide objective data, like measuring student growth on statewide test scores, used to evaluate teacher performance;
—Impose rigorous classroom observation and other subjective measures standards on school districts when evaluating teacher performance;
—Require a positive teacher evaluation rating be given only when the teacher receives a combined positive rating on both subjective and objective measures, such as student growth on statewide tests; and,
—Accelerate the implementation of the evaluation system.

These are discussed in more detail below and, if implemented, will greatly strengthen the evaluation process.
—First, remove the explicit language prohibiting the same measure of student growth on state assessments from being used for locally-selected assessment measures and state measures simultaneously

The Draft Regulations explicitly bar a school district from using the same measure of student growth on the same assessment for both the state assessment subcomponent and the locally-selected measures subcomponent. We believe such a prohibition is unnecessarily restrictive because it precludes a school district from using the objective state-developed growth measure for the locally-selected measures.

The Draft Regulations should be amended to permit the same student growth measure be used for the state assessment and locally-selected measures. By removing this prohibition in the Draft Regulations, up to 40 percent of the total score could be based on objective student growth measures on state tests—a percentage that is closer to many other states.

This change would ensure that greater balance is struck between using objective teacher evaluation measures, such as statewide testing, and subjective teacher evaluation measures, such as classroom observation. Given that the subjective measures have far greater weight under the evaluation process system, it is imperative that the Draft Regulations adopted do not explicitly reduce the types of objective assessments, such as growth on state tests, available to be used.
—Second, impose additional standards on school districts to improve the 60 percent of locally-developed rubric requirements, such as the observation process, to make evaluations more rigorous.

The Draft Regulations must be strengthened and better defined to make the 60 percent subjective criteria to evaluate teachers more valuable. Already, New York is an outlier as compared to other states in that it requires more weight be given to subjective measures when rating teachers. Therefore, it is critical that the Draft Regulations include greater precision and impose clear standards.

For example, under the Draft Regulations, half of the 60 percent of the locally-developed rubric must be based on classroom observation. Studies have shown that a rigorous evaluation program based on classroom observation is a significant component in promoting student achievement growth. As such, the classroom observation requirement should be increased from half to at least 40 percent of the 60 percent total of the locally-developed rubric.

Moreover, the Draft Regulations should establish baseline standards to make classroom observation a more meaningful measure. At a minimum it is vital that the Draft Regulations require multiple annual observations and include criteria for using third party observers.
—Third, require a positive teacher evaluation rating be given only when the teacher receives a combined positive rating on both subjective and objective measures, such as student growth on statewide tests

As was discussed above, under the Draft Regulations, objective measurements (e.g. state assessments) have lower weight than subjective measurements to evaluate teachers. In addition, there is no guarantee that objective measures have much meaning in the currently proposed scoring bands.  In essence, a teacher could receive a positive rating, such as “developing”, based only on subjective teacher evaluation measures.

Other states, such as Delaware and Rhode Island, require “effective” ratings in both the subjective and objective testing measures in order for a teacher or principal to receive an overall “effective” rating. No such requirement exists under the Draft Regulations and therefore diminishes the weight given to objective measurements in the evaluation process.  Therefore, at a minimum, the scoring bands should be adjusted to give greater weight to the objective measures by not allowing a positive rating based on subjective measures alone.  As an alternative, it is recommended that a teacher or principal  be rated “effective” in both objective and subjective categories in order to receive an overall “effective” or “highly effective” rating.
—Fourth, accelerate the timetable of implementing the evaluation system

I appreciate your assistance in accelerating the process so the evaluation system could be implemented for all teachers prior to the full implementation deadline of the 2012-13 school year. However, we must make sure that school districts begin the process in an expeditious manner. Endless implementation delays will hamper our ability to ensure our children are getting the best education, because a system not implemented is of no use.

Since SED has articulated the criteria for implementing the entire teacher and principal evaluation system, schools districts should fully implement the teacher and principal evaluation system for the 2011-12 school year and therefore the Draft Regulations should authorize school districts to do so.

Finally, my Administration will aggressively seek to incentivize schools districts to implement the evaluation system expeditiously.  Therefore, only those districts that actually perform, and implement the teacher and principal evaluation system, would be eligible for the Executive’s School Performance Incentive Program—a $500 million program—that I included in the Executive Budget. School districts would potentially lose millions of dollars on state awards for failure to implement the system quickly.

We must not squander the opportunity to set the right course and make New York a leader in evaluating performance in our education system. If done correctly we will revive our education system to ensure students perform better and succeed in their future careers.  The recommendations above will help set the course. Now is our chance to make New York a leader in education performance.

Sincerely,

Andrew M. Cuomo
Governor

The state Office of General Services will create a list of companies that invest in Iran’s energy sector and inform them they can’s bid on government contracts. Companies that do receive government contracts will have to certify they do not have any of these investments.

“By putting in place this important legislation, we are standing together to denounce Iran’s attempt to build nuclear weapons that would pose a grave threat to America, Israel, and our other friends in the Middle East. I thank Governor Cuomo for signing this bill into law,” Senate Majority Leader Dean Skelos, R-Nassau County, said in a statement.

Assembly Speaker Sheldon Silver, D-Manhattan, described Iran as the “patron of terrorism in the Middle East.” He introduced the legislation last year.

“This tyrannical regime has been linked to terrorist activities ranging from assassinations and hostage taking to bombings and hijackings directed against Israel and the West. By divesting the state from any business with corporations who fuel Iran’s terrorist activities and pursuit of nuclear weapons, we are doing our part to make the world a safer, more secure place,” Silver said.

“The experience I have gained from working closely with Suzi Oppenheimer for 26 years, as well as my 12 years as mayor of Rye, have provided me with a deep knowledge of issues important to Westchester residents, such as education, flood mitigation, tax relief, the environment and bringing change and innovation to lower the cost of government,” he said. ”We need effective representation, and I would be eager to use these skills to serve our area in the state Assembly.”

Otis, 55, has worked for Oppenheimer since July 1985. He was mayor of the city of Rye for 12 years during that time, from 1998 through the end of 2009. He worked for another senator from 1980 until he took the job with Oppenheimer.

Oppenheimer, a Democrat from Mamaroneck, announced yesterday that she would not seek another term, in part because she has to have her left shoulder replaced. She has been a senator for 28 years. Before that, she was mayor of Mamaroneck for eight years. She is 77.

“She has been the greatest person in the world to work for and to work with,” Otis said.

Latimer, who has been in the Assembly since 2005, said yesterday that he is interested in Oppenheimer’s seat and would decide whether to run for it in a “reasonable” amount of time.

Otis said he is in the process of calling local officials and politicians and getting the word out about his interest in the seat.

Bloomberg said in his State of the City address today that there have been a lot of positive changes in city schools, but nothing has changed in the area of teacher evaluations.

“Teachers continue to be rated simply as ‘satisfactory’ or ‘unsatisfactory.’ It’s a pass/fail system – with a 98 percent passing rate,” the mayor said. “Our students don’t have the luxury of being graded pass/fail. Neither do people in other professions, who have to make a living to feed their families. And neither should our teachers.”

Under a state law adopted in 2010, all teacher and principal evaluations will be tied to student growth. The law helped New York win nearly $700 million in federal Race to the Top funds. The law took effect for certain teachers and principals this school year and is supposed to be in place for everyone in the 2012-13 school year. However, progress has been slow and many districts have failed to reach collective-bargaining agreements with unions. Cuomo said last week that the teacher-evaluation law has failed and has to be fixed.

“The debate over teacher evaluations began when the Obama Administration rightly made them part of the Race to the Top grant competition. To qualify for the money, the State passed a law requiring districts to adopt teacher evaluation systems, but gave the unions veto authority. As Governor Cuomo recently said, the law hasn’t worked. Like many other districts around the state, we are at an impasse,” the mayor said.

The governor said in his statement that the education system in the state and New York City “is facing a crisis in accountability and performance. Our continuing pattern of being number one in the nation on spending in education and thirty-eighth in graduation rates hurts our students across the State, including the over 1.1 million public school students in New York City.”

The governor and Bloomberg also agree the pension system needs to be changed. Cuomo is proposing a less generous pension tier for new employees. Bloomberg said the city can’t afford to offer the same pension benefit to future workers.

“I look forward to working with Mayor Bloomberg on these and other issues outlined in his speech today to build a better future for New York City and New York State,” the governor said.

“But setting the minimum wage is also a balancing act – setting it high enough so people can get by on it without having a negative economic impact,” Bloomberg said in his speech.

“Right now, I believe, we are slightly out of balance. The genius of the free market is not always perfect. Two of our neighbors – Connecticut and Massachusetts – have raised their minimum wage above the Federal standard to address higher costs of living. And so while we would prefer the Federal government to act to keep us competitive, this year, we will join Speaker Shelly Silver in pushing for a responsible raise in the minimum wage,” he said.

New York City can’t wait for Washington to increase the minimum wage, the mayor said. The federal minimum wage is $7.25 per hour.

Silver said last week that he would push to raise minimum wage in the state. There are more than 1.2 million low-wage workers in New York, he said in a statement.

“I applaud and thank Mayor Bloomberg for joining our call to increase the minimum wage,” Silver said. “As I have said, it is wrong to expect anyone – let alone working families – to be able to afford the cost of living today and invest in their future on a salary of $7.25 an hour.”

While other groups, including the National Employment Law Project Action Fund, applauded Bloomberg, others did not. The National Federation of Independent Business said is does not support the proposal.

“Our members are extremely disappointed that the Mayor waded into this issue by supporting a measure that he knows will drive jobs out of New York,” Mike Durant, the organization’s state director, said in a statement.

Research shows higher minimum-wage laws make it harder for entry-level workers to find employment, he said.

“Small employers that can’t afford the increase will simply find ways to avoid creating new jobs. And the jobs that are available will be more attractive to people who have more experience.  People with the lowest skills and the least experience will be crowded out of the market,” he said.

Christine Owens of the National Employment Law Project Action Fund said New York’s minimum wage is “outdated” and more than $3 less than what it should have been if it had kept pace with inflation in the past 40 years. It is lower than 18 other states. A a higher minimum wage “will help boost consumer demand and spur economic recovery,” she said.

The National Employment Law Project has information online about New York’s minimum wage.