November 3, 2008

Welcome to Environmental Advocates of New York’s online newsletter from the State Capital, your source for environmental news. We update you every other week with tidbits and observations carefully gleaned from the halls of the Capitol.

Looking for Revenue, New York? 

We’ve been turning over the sofa cushions and we found a Krugerrand or two.

While conducting research for the follow-up to our Wa$ted Green report on how certain tax exemptions and state spending are hurting the state’s air, land and water, Environmental Advocates of New York uncovered some lost revenue the state could use to address the projected (and ever-increasing) budget shortfall.

While not environmentally harmful, here’s a wasteful tax exemption that, if repealed, could save New York State more than $100 million a year.

Here’s $126+ Million
The New York State Tax Expenditures Annual Report for 2008 includes a sales tax exemption for precious metal bullion and coins. And it’s not small change. Although the annual total ranges from $126 to $180 million, the grand total for the last decade approaches $1 billion (and that’s minus data from 2006 and 2007, which is unavailable).

The exemption covers precious metal bullion and coins purchased for investment. State Tax Law defines bullion as: “bars, ingots or coins of gold, silver, platinum, palladium, rhodium, ruthenium or iridium, but shall not include bars, ingots or coins which have been manufactured, processed, assembled, fabricated or used for an industrial, professional, esthetic or artistic purpose.”

When this loophole was enacted in 1989, the state’s budget division recommended that the Governor not approve the bill because it catered to special interests. At the time, bill proponents said that waiving the sales tax would encourage more storage of precious metals. They argued that storage fees would offset losses in tax revenue.

Boy, were they wrong. According to the 2004 Corporation Tax Statistical Report by the Department of Tax and Finance, the most recent report available, total warehousing and storage taxes collected in that year amount to $1.2 million (and that’s for ALL warehousing and storage, not just bullion). The portion of bullion storage doesn’t come close to the revenue lost in 2004—$157 million.

The Days of Wine & Muskets?
Budget-making is an exercise setting priorities. Again, while not environmentally harmful, this expenditure doesn’t make much sense to us. The State Fiscal Year 2008-09 Budget included a $235,000 appropriation to support a commission organizing French and Indian War re-enactment events. Among other things, the legislation that authorized this commission said the group is empowered to design medallions for “those re-enactors who are duly authorized and who participate in the main reenactment event of each year.” Those medallions better be nice.

We think that this money would be better spent on Department of Environmental Conservation staffers who protect our drinking water.

But Wait, There’s More
Environmental Advocates is still looking for more money to plug the budget hole and protect our natural resources. Keep an eye out for our second report about how lost revenue and state spending are shortchanging taxpayers and the environment—More Wa$ted Green. The really bad stuff is coming.

Click here to read our first Wa$ted Green report.  

Now More Than Ever, It's Time to Tackle Climate Change 

By Wednesday morning, we’ll know whether Senator John McCain (R-AZ) or Senator Barack Obama (D-IL) will be the next President of the United States.

While the candidates’ plans are not identical, both have committed to reducing climate pollution, as well as to making significant federal investments in alternative energy.

For the Regional Greenhouse Gas Initiative (RGGI), this represents an opportunity to serve as a national model to reduce the pollution that is changing our climate while generating resources to support clean energy. The RGGI is the 10-state plan to reduce the power plant pollution that is changing our climate. It’s set to go into effect in January 2009.

In Washington, those with no love for plans to cut power plant pollution are saying we shouldn’t take steps address climate change while the economy is unstable.

Putting both the long-term impacts of global warming and moral arguments aside, there is a convincing economic argument that now is precisely the right time to take such steps and seize an opportunity to reshape our economy, energy supply and infrastructure for generations.

By putting a price on polluting carbon dioxide emissions, the RGGI will drive private sector investments in power generation to become cleaner and greener. And while times are hard, cap-and-trade programs like the regional climate plan are self-correcting. During economic slowdowns, emissions of greenhouse gases are reduced due to diminished activity, reducing the cost for power generators to meet RGGI requirements.

On the other hand, costs to comply and purchase carbon dioxide emissions allowances will rise during growth periods, and will in turn mean extra resources are at hand to invest in technologies to reduce climate pollution.  

Then there’s the matter of how RGGI-generated monies are used. The success or failure of the regional climate plan and future federal programs, are directly linked to how auction revenues are invested. We think the money should go to support clean energy and efficiency programs, thus leveraging the plan for the biggest cuts in climate pollution.

With a new administration comes opportunity. And in this case we have a chance to reshape how our country generates energy and choose the technologies that will carry us into the next century.  

Save the Date for the 2008 Advocate Awards

Join Environmental Advocates of New York in celebrating the state’s conservation heroes at the 2008 Advocates Awards on Tuesday, November 11^th in New York City. Click here for details.

An Inconvenient Truth & Beyond

Join us on Wednesday, November 12, for a special live multimedia presentation of An Inconvenient Truth to learn what we can do to address the climate crisis followed by a panel discussion of environmental experts. Sponsored by Manhattan Community Board 7, New York State Senator Eric Schneiderman, Environmental Advocates of New York and Congregation B'Nai Jeshurun.

WHAT: An Inconvenient Truth & Beyond 

WHEN: 6:30 p.m. on Wednesday, November 12, 2008

WHERE: Congregation B'Nai Jeshurun, West 88th Street, NYC

Election day is tomorrow Tuesday, November 4. Don't Forget to Vote!