Approved February 8, 2022

RESOLUTION OF THE GREATER UTICA CHAMBER OF COMMERCE SUPPORTING A5550 THE LIMIT OF GROWTH IN STATE SPENDING

WHEREAS,  annual growth in the New York State general fund budget often outpaces the rate of inflation and the consumer price index by a significant margin; and

WHEREAS,   the resulting increases in income taxes, and other taxes and fees to support increased State spending has been cited as the number one reason people move away from New York; and

WHEREAS,  population losses have now resulted in the loss of several congressional seats in the House of Representative, which weakens representation for New York residents in the federal government; and

WHEREAS,  NYS Assembly bill A5550, introduced by Assemblyman Will Barclay and cosponsored by 23 other Assembly members including Robert Smullen, Brian Miller, and John Salka – all from the Central New York region – that would cap the rate of growth of state spending; and

WHEREAS,  Bill A5550 would limit growth in the state budget to no more than the average rate of inflation across the three most previous calendar years;  and

WHEREAS,  Bill A5550 would further amend State finance law to require an increase in budget reserves (rainy day fund) from 5% of the budget to 10% of the general fund budget which would help the state handle emergencies without relying on tax increases;

NOW THEREFORE BE IT RESOLVED that the Greater Utica Chamber of Commerce supports the adoption of Assembly bill A5550 to index the growth in state spending to the inflation rate and increase the state’s required reserves for emergencies.