Bill S1126-2013

Requires public arbitration panel to which a dispute is referred to consider above all other factors the financial ability of the public employer to pay, as defined

Requires the public arbitration panel to which a dispute is referred to consider above all other factors the financial ability of the public employer to pay, as defined in this bill.

Details

Actions

  • Jan 8, 2014: REFERRED TO CIVIL SERVICE AND PENSIONS
  • Jan 9, 2013: REFERRED TO CIVIL SERVICE AND PENSIONS

Memo

BILL NUMBER:S1126

TITLE OF BILL: An act to amend the civil service law, in relation to binding arbitration for certain public employees

PURPOSE: This bill requires a public arbitration panel to which a dispute is referred to consider above all other factors the financial ability of the public employer to pay.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 - Amends the opening paragraph of subparagraph (v) of paragraph (c) of subdivision 4 of § 209 of the Civil Service Law.

Section 2 - Amends Clause b of subparagraph (v) of paragraph (c) of subdivision 4 of § 209 of the Civil Service Law.

Section 3 - Effective date.

CURRENT LAW: Civil Service Law § 209, as amended, provides that local governments are subject to binding arbitration proceedings before the Public Employees Relations Board (PERB) when negotiating with local police and fire unions, New York City transit police, and district attorneys. Civil Service Law § 209 (4) provides that a PERB biding arbitration panel shall consider the financial ability of a municipal employer to pay, but such consideration is not given the highest priority.

JUSTIFICATION: Currently, while Civil Service Law 209 requires a PERB binding arbitration panel to consider the ability of a public employer to pay an award, it is not given the highest priority. Without this provision; PERB panels are free to establish contract settlements at levels that can be unaffordable or result in significant tax increases. This bill would rectify this situation to place greater emphasis on the financial ability of a public employer to pay an award without resorting to increased taxation.

FISCAL IMPLICATIONS: Unknown, but the "ability to pay" reforms enacted by the bill are expected to result in substantial savings for localities.

LEGISLATIVE HISTORY: 2011-2012 - S.2337/A.2282 -- CIVIL SERVICE/Gov't Employees 2009-2010 - S.3014/A.4197 -- CIVIL SERVICE/Gov't Employees 2007-2008 - S.3186/A.5958 -- CIVIL SERVICE/Gov't Employees 2005-2006 - S.4942/A.3445 -- CIVIL SERVICE/Gov't Employees 2003-2004: A.5952; 2001-2002: A.7331.

EFFECTIVE DATE: This act shall take effect immediately, except that

sections one and two of this act shall only apply to disputes referred to a public arbitration panel on or after the effective date of this act, and provided that the amendment to the opening paragraph of subparagraph (v) of paragraph (c) of subdivision 4 of section 209 of the civil service law made by section one of this act and the amendment to clause b of subparagraph (v) of paragraph (c) of subdivision 4 of section 209 of the civil service law made by section two of this at shall not affect the expiration of such subdivision and shall be deemed to expire therewith.


Text

STATE OF NEW YORK ________________________________________________________________________ 1126 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Civil Service and Pensions AN ACT to amend the civil service law, in relation to binding arbi- tration for certain public employees THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of subparagraph (v) of paragraph (c) of subdivision 4 of section 209 of the civil service law, as amended by chapter 216 of the laws of 1977, is amended to read as follows: the public arbitration panel shall make a just and reasonable determi- nation of the matters in dispute. In arriving at such determination, the panel shall CONSIDER, ABOVE ALL OTHER FACTORS, THE FINANCIAL ABILITY OF THE PUBLIC EMPLOYER TO PAY. THE PUBLIC EMPLOYER'S ABILITY TO PAY SHALL BE DEFINED AS EXISTING FISCAL CAPACITY WITHOUT RESORT TO EITHER NEW OR INCREASED TAXATION INCLUDING, BUT NOT LIMITED TO, THE LEVEL OF TAXATION IN THE POLITICAL SUBDIVISION COMPARED TO SIMILAR POLITICAL SUBDIVISIONS IN OTHER AREAS OF THE STATE, THE TAX BASE, ANY EVIDENCE OF ECONOMIC DECLINE AND ANY OTHER APPLICABLE MEASURES OF FISCAL DISTRESS, OR EXTRAORDINARY REDUCTIONS IN OTHER GOVERNMENTAL EXPENDITURES. THE ARBI- TRATION PANEL SHALL ALSO CONSIDER THE COMPETING FINANCIAL OBLIGATIONS OF THE PUBLIC EMPLOYER WHICH MAY BE AFFECTED BY SUCH DETERMINATION AND SPECIFICALLY THE IMPACT OF ANY SUCH DETERMINATION ON ONGOING NEGOTI- ATIONS OR SUCCESSOR NEGOTIATIONS WITH EMPLOYEE ORGANIZATIONS REPRESENT- ING OTHER EMPLOYEES OF THE PUBLIC EMPLOYER. THE ARBITRATION PANEL SHALL SPECIFY ITS RATIONALE IN THE DETERMINATION, INCLUDING THE CONSIDERATION OF SUCH ABILITY OF THE PUBLIC EMPLOYER TO PAY WITHOUT RESORT TO NEW OR INCREASED TAXATION. THE PANEL SHALL specify the basis for its findings, taking into SECONDARY consideration, in addition to any other relevant factors, the following:
S 2. Clause b of subparagraph (v) of paragraph (c) of subdivision 4 of section 209 of the civil service law, as amended by chapter 216 of the laws of 1977, is amended to read as follows: b. the interests and welfare of the public [and the financial ability of the public employer to pay]; S 3. This act shall take effect immediately, except that sections one and two of this act shall only apply to disputes referred to a public arbitration panel on or after the effective date of this act, and provided that the amendment to the opening paragraph of subparagraph (v) of paragraph (c) of subdivision 4 of section 209 of the civil service law made by section one of this act and the amendment to clause b of subparagraph (v) of paragraph (c) of subdivision 4 of section 209 of the civil service law made by section two of this act shall not affect the expiration of such subdivision and shall be deemed to expire therewith.

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