Daily Sentinel: Hochul should veto liability bill to protect upstate local government budgets

By: Carolyn Price

New Yorkers and local governments throughout the state are strained financially, a fact the Gov. Kathy Hochul must keep in mind as she decides whether to sign or veto a controversial bill headed to her desk.

The bill, which would significantly expand damages in wrongful death lawsuits, would increase liability costs for cities, towns, and villages, potentially forcing cuts to essential services, increasing taxes, or both. While the bill’s intentions are noble, its impact would ultimately hurt the communities it aims to help.

Working-class New Yorkers are doing everything they can to make ends meet. Grocery prices are high, gas remains costly, and too many families upstate still struggle with broadband access, which is either too expensive or not available, limiting their ability to compete in a modern economy. Enacting new laws that will increase their personal auto insurance premiums, raise healthcare costs, and undermine the function of their local governments is a step in the wrong direction.

This bill, as written, lacks common-sense protections to rein in out-of-control costs. In other states, lawmakers have carefully written their bills to only account for the measurable cost of pain and suffering, capped non-economic damages, and ensured that liability doesn’t fall on single party that has little to do with the reason for the lawsuit. Here, local governments are particularly vulnerable under joint and several liability laws, which sets them up to be seen as “deep pockets” and responsible for full judgments, even when they have minimal connection to the underlying claim.

Dramatically expanding liability without common sense safeguards will drive up insurance premiums — not just for local governments but for families and businesses, impacting everything from auto insurance to operating or expanding a small business. This is simply unacceptable. Municipal budgets are already stretched thin, with pandemic relief funds ending and economic pressures rising.

Escalating liability costs would drain resources needed for essential services like schools, roads, and emergency response, especially in small towns where resources are limited.

Hochul should veto this bill, as she has done twice before, and work with lawmakers, local government leaders, and healthcare professionals to pursue a balanced approach that compensates grieving families fairly while also protecting the future of our communities.

Damage caps for non-economic losses would provide predictability and protect budgets without denying families fair compensation. Reforming joint and several liability would prevent local governments from shouldering unfair costs. Lawmakers need to be honest about the bill’s fiscal impact and assemble stakeholders to collaborate on a more reasonable, balanced proposal.

This isn’t an either-or decision. It’s a chance to build a fairer system that supports families and protects the fiscal health of our towns, villages, and cities.

The governor has a unique opportunity to veto this bill and bring stakeholders together to develop a solution that works for everyone. Let’s seize this moment to create a law that truly serves our communities and families alike. Indeed, let’s work together — local officials, legal experts, legislators, and advocates — to craft a solution that serves all New Yorkers.

— Carolyn Price is executive director at the Upstate New York Towns Association, an advocacy organization focused on the unique needs of upstate communities by promoting economic development, better health outcomes, and closing the digital divide.