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<DIV><FONT face=Calibri>Calls on labor to 'support him' by volunteering to take
deep pay cuts--while he builds an anti-union war chest and professional hit team
to go to war with them at the same time.</FONT></DIV>
<DIV><FONT face=Calibri>------------</FONT><BR></DIV><BASE href="data:">
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class=articleHeadline><NYT_HEADLINE version="1.0" type=" ">Cuomo Plans One-Year
Freeze on State Workers’ Pay</NYT_HEADLINE></H1><NYT_BYLINE>
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class=byline>By <A style="COLOR: rgb(0,66,118); TEXT-DECORATION: none"
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CONFESSORE</A></H6></NYT_BYLINE>
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on Wednesday, senior administration officials said.</DIV></NYT_TEXT></DIV>
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<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">The
move will signal the opening of what is expected to be a grueling fight between
the new governor and the public-sector unions that have traditionally dominated
the state’s political establishment.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">It
will also come days after the <A
style="COLOR: rgb(0,66,118); TEXT-DECORATION: underline" class=meta-classifier
title="More articles about New Year's Eve."
href="http://topics.nytimes.com/top/reference/timestopics/subjects/n/new_year/index.html?inline=nyt-classifier">New
Year’s Eve</A> layoffs of more than 900 state workers, an event that union
representatives marked with a candlelight vigil on the steps of the Capitol and
outside government offices in five other cities.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">“The
governor said during his campaign that the difficult financial times call for
shared sacrifice,” said a senior administration official, who requested
anonymity because he was not authorized to speak publicly about the governor’s
address. “A salary freeze is obviously a difficult thing for many government
workers, but it’s necessary if the state is going to live within its means.”</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">While
the immediate budget savings from the freeze would be relatively modest —
between $200 million and $400 million against a projected deficit in excess of
$9 billion — achieving it would be politically meaningful.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">And
because such a step would not require legislative approval, Mr. Cuomo could
achieve it while bypassing the Assembly speaker, <A
style="COLOR: rgb(0,66,118); TEXT-DECORATION: underline" class=meta-per
title="More articles about Sheldon Silver."
href="http://topics.nytimes.com/top/reference/timestopics/people/s/sheldon_silver/index.html?inline=nyt-per">Sheldon
Silver</A>, and the Democratic-controlled State Assembly, labor’s most powerful
allies in Albany.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">Of
course, a freeze — which Mr. Cuomo promised he would seek during his campaign —
would be subject to negotiation with the unions. But labor contracts for the
vast majority of the state’s 190,000 employees expire on March 31, giving Mr.
Cuomo an opening to seek changes at a time of public unease toward government
workers’ benefits.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">Salaries,
health care and pension benefits for state workers represent one of the largest
and fastest-growing areas of spending, accounting for about one-fifth of all
state dollars.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">On
Sunday, a spokesman for the Civil Service Employees Association, the largest
union of state workers, said that the association was open to discussions with
Mr. Cuomo, but was uncomfortable with unilateral demands.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">“There’s
a significant difference between negotiating in good faith, and issuing some
kind of edict that may or may not be legal,” said Stephen Madarasz, the
association spokesman. “It’s really all based on what action follows.”</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">Public-sector
unions around the nation face growing political pressures not only from
Republicans but also from their traditional allies among Democrats, as governors
grapple with recession, declining tax revenues and pension funds perilously
close to bankruptcy.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">In
November, following the Republican takeover of the House, <A
style="COLOR: rgb(0,66,118); TEXT-DECORATION: underline" class=meta-per
title="http://topics.nytimes.com/top/reference/timestopics/people/o/barack_obama/index.html?inline=nyt-per
CTRL + Click to follow link"
href="http://topics.nytimes.com/top/reference/timestopics/people/o/barack_obama/index.html?inline=nyt-per">President
Obama</A> ordered a two-year salary freeze for civilian federal workers,
subject to Congressional approval.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">On
Wednesday, Mr. Cuomo is also expected to call for a constitutional cap on state
spending that would limit growth to the rate of inflation and for a budget that
does not raise corporate, personal income or sales taxes, echoing proposals he
made on the campaign trail. He will also repeat his call for a cap on the growth
of local property taxes.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">Even
if he succeeds in winning a freeze, experts said, Mr. Cuomo will ultimately need
to tackle more difficult public employee benefits, including a substantial
restructuring of the state’s pension system, which faces serious shortfalls in
the coming years.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">“The
past couple of budgets have really been holdover, stopgap plans,” said Elizabeth
Lynam, vice president of the <A
style="COLOR: rgb(0,66,118); TEXT-DECORATION: underline" class=meta-org
title="More articles about Citizens Budget Commission"
href="http://topics.nytimes.com/top/reference/timestopics/organizations/c/citizens_budget_commission/index.html?inline=nyt-org">Citizens
Budget Commission</A>, an advocacy group that favors more limited spending. A
one-year salary freeze, she added, would be “a beginning, and it’s a shot across
the bow at organized labor, which has to date been uncompromising.”</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">“Hopefully
it will lead to broad-based changes in the way state employees are compensated,”
she said.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">Mr.
Cuomo has made clear that breaking the stranglehold that entrenched interests,
including unions, have on political leaders in Albany is a major priority.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em"><STRONG>But
Mr. Cuomo, who has longstanding ties to labor and was endorsed by the Public
Employees Federation last year, is hoping that unions will join him in the
effort to fix the state’s budget problems. In recent months, he invited
public-sector unions to become his partners, even sending their leaders copies
of “The Man Who Saved New York,” a biography of former Gov. </STRONG><A
style="COLOR: rgb(0,66,118); TEXT-DECORATION: underline" class=meta-per
title="http://topics.nytimes.com/top/reference/timestopics/people/c/hugh_l_carey/index.html?inline=nyt-per
CTRL + Click to follow link"
href="http://topics.nytimes.com/top/reference/timestopics/people/c/hugh_l_carey/index.html?inline=nyt-per"><STRONG>Hugh
L. Carey</STRONG></A><STRONG>, which recounts how Mr. Carey, a Democrat, teamed
up with labor leaders in similar fashion in the 1970s.</STRONG></P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em"><STRONG>At
the same time, Mr. Cuomo has signaled that he is ready to fight, and has vowed
to avoid the fate of his predecessors, who have endured millions of dollars in
withering television advertisements from public-sector unions seeking to
forestall cuts to state spending.</STRONG></P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em"><STRONG>After
his landslide victory in November, he kept a substantial campaign war chest on
reserve to run his own ads to counter any union-backed television campaigns and
is now deploying outside advisers to organize business interests into what he
hopes will become a counterweight to labor: a new group known as the Committee
to Save New York.</STRONG></P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">Mr.
Cuomo on Sunday attended Mass with his girlfriend, Sandra Lee, and his three
daughters at the Cathedral of the Immaculate Conception, down the street from
the Executive Mansion. Shortly after that, he returned to work at the Capitol,
where aides were huddled to help draft Wednesday’s speech and attend to other
issues.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">“We’re
going to be getting back to work,” he told reporters after the service.</P>
<P
style="LINE-HEIGHT: 1.46em; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">He
also issued an executive order that will require top administration officials to
undergo ethics training within the first three months of this year and to be
recertified every two years afterward.</P><NYT_AUTHOR_ID>
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<P
style="LINE-HEIGHT: 1.46em; FONT-STYLE: italic; MARGIN: 0px 0px 1em; COLOR: rgb(0,0,0); FONT-SIZE: 1.5em">Thomas
Kaplan contributed reporting.</P>
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