In reality, the real savings may come from your ability to extend an application for a Wicks Law exemption. That could equate to a 5 to 8 percent savings or $6 to $11 million.
This may not be attractive to those that charge a percentage based on the cost of the project, but it certainly may be attractive to those of us paying the bill.
All of us as elected officials have a duty to protect our communities. While some may have a misconception on labor costs for “municipal” projects, all should understand that in New York State, prevailing wages must be paid regardless of who is paid those wages or where they come from. In regard to your long-term responsibility to our community, a PLA is the only way to assure that local labor is used. That assures that the parents of our students, those that coach our little league teams and volunteer at our soup kitchens, are making those wages over the five-year proposed period of the project. It assures those wages are helping local labor meet their local mortgages, their local taxes, and enhances their community’s economy rather than handing over the taxpayers’ money in wages to people from New Jersey, Albany or elsewhere.
To ignore such significant possible savings for such a small cost and throwing away the opportunity to recruit people for trade apprenticeship programs in our community and giving up an assurance to create jobs for local labor to pay local taxes is truly being pennywise and dollar-foolish.
David B. Donaldson, Vice chairman, Ulster County Legislature, Kingston
Grow the pie
Economic growth and economic development are two separate and distinct processes with their own definitions, and these terms cannot accurately be used interchangeably. The definition of economic growth is an expansion of the production possibilities frontier (PPF). If some are unfamiliar with the PPF and the four ways in which the PPF can expand, then it makes sense why the mainstream economic development consensus in Ulster County has taken hold.
The PPF of Ulster County can be expanded in any one of four ways:
- Increases in capital stock
- Increases in resource availability
- Technological innovations
- Improvements to the rules of the game
An increase or improvement to any one of these four can create economic expansion on its own. What I suggest is improving the rules of the game to specifically increase capital stock, increase resource availability, and increase technological innovation in Ulster County in a manner that advances equality of economic opportunity for all, by not picking and choosing which industries will receive preferential treatment over others.
In order for this to be successful a comprehensive two-pronged approach is necessary.
The first prong must consist of each town, village and municipality in Ulster County putting all of their rules that govern economic activity on the table for review, revision and reform. This should be done in a holistic and organic fashion by utilizing qualified local members of the community to review the rules of the game and provide recommendations for their improvement to specifically increase capital stock, resource availability, and technological innovation. This will require all zoning, planning, building and municipal codes to be scrutinized under the lens of realistically expanding the production possibilities frontier of each municipal entity.
The second prong must consist of Ulster County making improvements to the rules of the game at the county level. Not only must the county proficiently complete basic phase-one reforms and improvements to its planning, economic development and Industrial Development Agency policy, the county must be able to graduate to phase two. Phase-two improvements at the county level include changes to the charter that should replace the outdated line-item departmental budgeting process with a system of performance measurement and outcome-based budgeting. Phase three is where the atmosphere for robust economic expansion can be created by utilizing the phenomenon of elasticity to Ulster County’s advantage.
Given that total revenue can increase, if increased consumption more than offsets a lower rate, lower sales tax rates and a lower property tax levy can stimulate increased consumption in Ulster County, which will increase county revenue. Tax elasticity downward and the adjustment period associated with it is the key to increased consumption and an increase in real property purchases in Ulster County. If the county sales tax is reduced 1.25 percent, large purchases become more attractive in Ulster County. If the property tax levy is reduced 3-5 percent, real estate purchases become more attractive.
Each society must choose between the growth of the pie and the distribution of the pie; this dilemma is known as the equity-efficiency trade-off. Economic development is about redistributing the pie, instead of growing the pie.
Improvements to the rules of the game to specifically increase capital stock, resource availability and technological innovation across the board (regardless of rent-seeking industries without a comparative advantage requesting preferential treatment under the law) is the path towards economic growth in Ulster County. It is time to grow the pie in Ulster County.
Cory Newton, Wawarsing
To Devon Rath: ride west of Kingston, please – on a train!