Something’s Gotta Give: New York in Crisis

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerI’ve been in a funk since the 2009-10 state budget passed. The state’s elected leaders entered the budget negotiations confronting a potential $20 billion deficit, up from the $14 billion estimated when the Governor released his original budget proposal. That is, the state would have run a $20 billion deficit in 2009-10 if spending and revenue continued without changing anything structural (like tax rates or spending formulae). The faltering economy could no longer satisfy the state’s addiction to ever-greater spending.

Given such a dire forecast, we all wondered how the state would manage to find the money to avoid a major reduction in spending. Imagine our surprise when the Legislature and Governor pulled a rabbit out of the budgetary hat and increased budgeted spending by $12 billion, nearly 9% more than in 2008-09.

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In the future, Rochester NY is a community where “we’re on our own”

Posted by & filed under CGR Staff, Rochester City Newspaper.

Kent GardnerThe Rochester community confronts problems that will test the mettle of our leaders in coming decades. Our core challenges persist and others will emerge, yet help from external sources will become scarce. We are thrust back on our own devices, thus on the ability of our leaders to forge community solutions to community problems.

The City of Rochester will continue to struggle with its central economic problem: too many school dropouts and too many graduates who are ill-prepared for further schooling or a career. There is no challenge more difficult or more important.

  • Students who leave school without the tools to earn a living for themselves and their families face a lifetime of struggle.
  • The economy trades a contributor for a dependent.
  • The city’s economic vitality will be limited by an ill-trained workforce and a crime rate that is fueled by desperation, resentment, and disillusionment.

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Making Sense of Health Savings Accounts

Posted by & filed under CGR Staff, Rochester Business Journal.

Originally published in Rochester Business Journal
1/9/2009, 1/16/2009, 1/23/2009

Kent GardnerPart One

Early signals from our health insurer led us to expect another double-digit increase in our insurance premiums—perhaps a 15% hit. Frankly, I thought that we were just being softened up for something lower—If I were led to expect 15%, then a mere 11% bump should make me (relatively) happy. I was stunned when the final price of the most popular of our plans would go up 21% in 2009.

The big increase in price led us to explore cheaper plans, particularly a policy that includes a “Health Savings Account” (HSA). The discussion below refers to the specific plans we were offered by Excellus BlueCross BlueShield.

CAUTION: The remainder of this column discusses insurance premiums, deductibles, out-of-pocket maxima and other arcane health insurance jargon. Readers looking for lighter fare might prefer IRS Publication 17 or, perhaps, a William Faulkner novel.

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Unlock possibilities – new uses for buildings that parishes no longer need

Posted by & filed under CGR Staff.

Albany parishes should find other uses for buildings after churches close

Bethany WelchRestructuring. Consolidation. Mergers. And now, layoffs. Those words have been used to describe the current state of affairs in the area’s Roman Catholic churches. Last week Bishop Howard Hubbard previewed the pain to come. He said that about 20 percent of the 190 worship sites will close or be reorganized across the 14 counties that make up the Diocese of Albany. Some of the lay staff who work at the parishes involved might lose their jobs. The decision on which churches will close is expected this weekend, but it is likely that urban parishes will suffer the most.

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Let’s grow pineapples in the Finger Lakes. Well, maybe not…

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerThe proposition that we should “Buy Local” is appealing. We may continue to buy apples from Chile and lettuce from California, but we have the common decency to feel guilty about it.

But do we need to?

American producers of beet and cane sugar have long supported a Buy Local policy. Dominated by a relatively small number of large and politically savvy producers and processors, these “buy from us” sugar interests keep prices high through official U.S. policy that includes a robust quota and tariff regime. Protectionist trade policies for American sugar acquire additional political weight from the powerful Midwest corn lobby, as cheap sugar from Brazil, Thailand and other countries also competes with corn sweeteners. Corn sweeteners—only 13 percent of total sweetener deliveries in 1970—surpassed beet and cane sugar in 1986 and now contribute 20 percent more to the sweetener market than refined sugars.

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Let’s Nurture Rochester’s Gazelles

Posted by & filed under CGR Staff, Rochester Business Journal.

Kent GardnerWhen it comes to economic forecasts, I tend to be a “glass-half-full” kind of guy. Yes, there is some probability that gas will rise to $20 per gallon and we’ll start riding horses again. I think it more likely that gas prices will fall back to $3 per gallon and there will again (sadly) be a market for the Hummer.

My natural optimism was dealt a blow by a new assessment of fast-growing firms from the Small Business Adminstration (SBA). The study is an adaptation of the work of David Birch of Cognetics from the 1980s and 1990s. Firms with rapid revenue growth were dubbed “gazelles” by Birch. He found that these firms were responsible for most of the nation’s employment growth.

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Playing the Press

Posted by & filed under CGR Staff.

Scott McClellan stepped down from his job as press secretary to the Bush White House last week. The position as defined by McClellan seemed more like one of those blow-up, punching clowns we kids of the 1960s used to batter.

Jay Rosen, the New York University journalism professor and author of the excellent PressThink blog, saw the McClellan years as a watershed for the press relationship with an administration.

You should read it. But in short… he said the years of spinning the media are over. Instead, we now see the Bush administration engaged in a kind of press nullification. McClellan, famous for saying nothing and repeating talking points over and over, devalued the press by not dealing with it. There is some truth to this. And it’s not one that civic-minded folks should be happy to see.

This got me to thinking about other administrations – and how they deal with the press. There have been some differences.

Currently in the Rochester area we have two people heading up administrations who have an ease with the press. County Executive Maggie Brooks was, in fact, a television reporter in a former life. Her polish and poise in front of inquisitors has so far served her well. A test of her press savvy is on deck, however. She has proposed a sales tax increase and a potentially thorny trade-off of sales tax money for Medicaid expenses. We’ll see how she does (in fact, I’ll get a chance at lobbing a few questions her way on Friday when she visits the WXXI studios for Need to Know).

The new mayor, Bob Duffy, also has an ease with the press. The former police chief has dealt with camera and microphones and pads shoved underneath his rather large frame. He gives you a kind of “aw-shucks” demeanor and speaks in a rather soothing tone. He hasn’t had any real tests during his first few months. We’ll see how he wears when a crisis comes his way.

The communications folks for both Brooks and Duffy are basically letting their bosses do the message-giving. They aren’t shielding him. And, as far as I can tell, the spinning is subtle. It’s there but not divorced from the chief administrator. It comes straight from the person holding the office.

That wasn’t always the case with a former chief administrator around these parts – County Executive Jack Doyle. This was a man who didn’t appear to like being questioned. It wasn’t the content of the question that bothered him – instead it was the idea of a question being posed at all. His top communications guy for most of those years, a former Democrat and Chronicle reporter named John Riley, played a much stronger role in directly spinning reporters. This was an administration that didn’t enjoy a palsy-walsy relationship with reporters. And for the most part, they liked it that way.

Former Mayor Bill Johnson seemed to act as his own press person. He took questions head on. And when he didn’t like how he was being covered, he’d let you know. My guess is that people who work in government communications would have cringed at how Johnson would engage the press.

Then there is the current occupant of the governor’s mansion – George Pataki. Most of what I know about him comes from others who dealt with that administration on a direct basis. But all reporters in the state have engaged Pataki and his press people, especially during election years.

Pataki’s predecessor, Mario Cuomo, seemed much like Bill Johnson. He would engage the press. He would also demean the reporter if he thought the question was based on a shaky premise. An intimidator, but at least accessible.

I dare anyone to call Pataki accessible. The first person a reporter thinks of when it comes to Pataki is Zenia Mucha, a tough-as-nails advisor who kept guard on Pataki. It became the hallmark of the Pataki administration ( here’s a great piece that describes the difference by the Albany Times Union’s Jim Odato. As Odato put it, press conferences were rare, news came via press releases. On the campaign trail it was no different. Local reporters would put questions to Pataki and either you’d get a non-response or no response. I can remember during the 1998 campaign a number of us in Rochester got to Pataki after an election event at Strong Memorial Hospital. We wanted to ask about a topic he didn’t want to deal with (I couldn’t tell you what it was now if I tried). Pataki simply shut down and walked briskly to his car… even as reporters continued buzzing around him trying in vein to get an answer

I remember that day for the way it felt – like we were an annoyance. And how it may have appeared to onlookers – like we were a pack of dogs. This sounds a lot like what you might have seen on a daily basis in the White House Press Room with McClellan behind the podium.

Rosen may be right – that McClellan ushered in a new era of press relations in Washington. But I think an earlier practitioner of this press nullification could be found in Albany.