2009 Legislative Year in Review: Senator Valesky helps NYSBCA Defeat $2 mil in Proposed Tax Increases

  Published on December 30th, 2009

2009 Legislative Year in Review: Senator Valesky Helps Defeat $2 million in Tax Increases Proposed in Governor Paterson’s 2009-10 Budget. Association plans for another budget battle as it prepares broader legislative agenda for 2010

December 30, 2009 – Albany, NY, 2009 proved to be a year that the New York School Bus Contractors Association’s lobbying and government relations efforts turned from offensive to defensive.  With huge budget deficits and shrinking tax revenues, Governor Paterson resorted to introducing a state budget that attempted to close a $16 billion budget gap impart by increasing taxes on the private school bus industry by nearly $2 million.

In particular, Governor Paterson’s 2009-2010 budget proposal included tax increases that would have removed the sales tax cap on fuel above $2.00, imposed sales taxes on capital improvements and assessed new sales taxes on transportation-related services.

Recognizing the harmful effects these proposed tax increases would have had on NYSBCA members, the Association’s legislative team and lobbyist quickly developed a strategy to remove the Governor’s tax increase proposals from the final budget agreement with the Legislature.  Part of the strategy was to identify legislators that understand the importance of preserving a strong private sector option to school bus transportation services.  One of those legislators was the leader of the upstate Democratic caucus, Senator David J. Valesky.  As the budget battle unfolded, lobbying efforts focused on educating Senator Valesky and other key legislators, such as Senator Craig Johnson form Long Island and Assemblywoman RoAnn Destito from upstate, about how important it was to ensure they did not pass a budget that increased taxes on the school bus contractor industry.

After five months of intensive lobbying and grassroots efforts, which included meeting with key legislators, writing letters, telephone calls, sending faxes, e-mails, and attending political fundraising events, NYSBCA’s legislative team and lobbyist were successful in preventing the Governor from imposing nearly $2 million in new taxes on the school bus contractor industry.  Of course none of it would have been possible without Senator Valesky’s leadership or the support and participation of the entire Association.

2010 will most likely be a year filled with political instability and huge state budget deficits.  Given this relatively bleak outlook, the Association’s government relations and lobbying efforts will continue to focus on ensuring the Governor and Legislature do not try to impose any new taxes, burdensome laws or regulations on the industry.

In addition, NYSBCA will introduce an expanded legislative agenda that will potentially include things like making the RFP law permanent, improving the state’s CPI formula that governs the pricing structure for contracts, allowing for an agent of the state status for contractors, new grant opportunities for contractors and of course the sales tax credit for purchase of school buses, parts and maintenance.

As always, the Association’s government relations and lobbying efforts will focus on expanding the association’s political participation and influence at the state capitol to ensure the voice of the industry continues to be heard.

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