Tough Week Awaits Silver With a Choice on Taxes

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The New York Sun

The Democratic speaker of the Assembly, Sheldon Silver, this week will face one of the toughest political decisions of his career: whether to side with Governor Paterson, a fellow Democrat, in passing a cap on property taxes, or protect his relationship with the state’s most powerful labor unions.

Mr. Paterson and the state’s other legislative leader, Senate Republican Dean Skelos, are urging Mr. Silver and Assembly Democrats to approve legislation that would impose a 3% to 4% ceiling on property tax increases in suburban areas and upstate school districts.

It’s hardly unusual for Mr. Silver to be the odd man out. In his 14 years as speaker, he has flourished in the role by conserving bargaining leverage and holding out for concessions.

When the Legislature comes to Albany next week for a special session, Mr. Silver will be presented with a more difficult balancing act. At stake is his relationship with Mr. Paterson and interest groups that Mr. Silver has relied on as a crucial base of support.

For Mr. Silver, 64, the dangers are more elevated than usual. Next month, he faces his first primary contest in more than two decades, as he squares off against two opponents.

Mr. Silver, who represents a district in Lower Manhattan, has said he would consider supporting a tax cap if he could be assured that it would not jeopardize funding for public schools.

Public opinion polls have indicated that most New Yorkers favor capping property taxes. The measure won the backing of Senate Republicans on Friday and has limited support from Assembly Democrats in districts outside the city.

Most problematic for the speaker, a cap has emerged as one of the highest priorities of the state’s top Democrat, Mr. Paterson, who since taking office in March has sought to position himself as a fiscal moderate.

Ostensibly, Mr. Paterson’s purpose in calling a special session of the Legislature is for lawmakers to focus attention on driving down next year’s budget deficit. Political observers say, however, that the governor’s primary objective is to achieve passage of a cap, a big item that the administration believes will resonate with voters when Mr. Paterson runs for office in two years.

Mr. Silver is facing considerable pressure from his New York City members and organized labor groups, which have long been a vital source of political money and manpower for Assembly Democrats. They are demanding that the speaker turn his back on the governor’s proposal, criticizing it as a misguided policy that will leave school districts under-funded.

The rallying cry against the cap is being led by New York State United Teachers, the state’s largest teachers union, which is poised to announce its endorsements for the upcoming legislative races.

“I don’t think Shelly is going to do it,” the executive vice president of New York State United Teachers, Alan Lubin, said. “He’s extremely concerned about the damage this would do to public education.”

The Senate’s passage of a cap has inflamed the proposal’s critics, who are stepping up their opposition with a public campaign this week in advance of the special session. The state’s largest organized labor groups, along with public education advocates, are said to be mounting a vigorous lobbying effort that may include television advertising.

Assembly Democrats have signaled they would be open to a tax cap if it accompanied a tax increase on the state’s wealthiest residents. Democrats earlier this year passed legislation that would have raised the income tax rate of those earning more than $1 million a year to 7.7% from 6.85%.

The likelihood of such a trade is slim. Senate Republicans say they are adamantly against a tax increase, while Mr. Paterson has indicated that he would only consider raising taxes as a “last resort” should state revenues further plummet as the fiscal year progresses.

Instead, the Paterson administration has in mind a different trade-off. The governor is seeking to secure passage of an Assembly bill that would provide low-income, disabled, and elderly residents with hundreds of millions of dollars in heating oil subsidies.

A collapse of an agreement between the capital’s top two Democrats carries the risk of creating a rupture within the party that both leaders have sought to avoid. Mr. Paterson has been careful not to put Mr. Silver on the spot and fault him and his conference for not joining him in his push for a tax cap.

Mr. Paterson’s diplomatic course will become more untenable if he comes away from a special session empty-handed. After drumming up concern about the state’s finances and spending habits with a heavily publicized speech, the governor will appear politically weakened if he allows the Assembly to ignore him, observers say.


The New York Sun

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