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.

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S2337-2011 Actions

• Jan 4, 2012: REFERRED TO CIVIL SERVICE AND PENSIONS
• Jan 19, 2011: REFERRED TO CIVIL SERVICE AND PENSIONS

S2337-2011 Memo

BILL NUMBER:S2337

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:

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.

S2337-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2337

                         2011-2012 Regular Sessions

                              I N  SENATE

                              January 19, 2011
                                 ___________

  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:


   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02602-01-1

 S. 2337                             2

    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.