James Walsh/State of the State -- 10 January 2008

>> Coming up on "Need to Know" -- the 110th Congress has reached the halfway mark.
We will talk to a high ranking minority member from upstate New York, Congressman James Walsh, about what lawmakers have or have not been able to accomplish.
And Governor Eliot Spitzer's State of the State address.
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>> Rochester's news magazine since 1997 -- this is "Need to Know."
>> Thank you for joining us.
I am television news director Julie Philipp.
A year-ago, members of the 110th Congress took office.
In the House of Representatives, that men Democrats took control saying voters had issued a mandate for change.
The 110th congress is now at the halfway mark, so this week we sat down with area Congressman James Walsh, a high-ranking Republican, to get his thoughts on what the lawmakers have accomplished and what is left to be done.
I asked him how being in the minority has changed what he has been able to do.
>> I can be left responsible, I think about -- members of the majority really have to produce votes.
They have to have party discipline.
But honestly, you work just as hard, you just do not have as much control over the legislative agenda.
My area is appropriations, and I am now ranking, which is the highest ranking Republican on the subcommittee for labor, health, and Human services.
It is over $600 billion last year I had the military quality of life budget.
As chairman, that was about $90 million.
In terms of my responsibilities for budget, he has grown substantially.
My ability to affect it is not as strong as it was, but yet I have a very good relationship with the chairman of the full committee and the subcommittee.
The priorities that I addressed with him were addressed in the bill.
Because of that relationship, because of my knowledge of the bill, I have been really successful as a minority member, but it is not the same.
>> More of your votes have gone more Democratic than Republican this year.
Are you leaning closer to the center?
>> I have always been close to the center.
With the Democrats now with the majority, they require discipline to get bills passed.
That is a majority of the -- That is a requirement of the majority.
There is a responsibility to vote with the party when you are in the majority.
When you are not in the majority, you are able to freelance a little bit, to take a look at issues in a more holistic way.
If you look at my voting record over the 18 years, 19 years that I have been hear, I have always leaned close to the center.
Some issues I am more conservative -- abortion, gun rights, things like that.
I take a very traditional conservative view.
But on other issues --
>> We will get into some of those issues in a minute.
I want to clarify, buy more of your votes going more Democratic than in the past --
>> 8%, 90% party loyalty with voting clout -- 80%, 90% party loyalty with voting.
>> Let's talk about some of the issues that came up this year.
You can tell me in your opinion why if any progress was made by this Congress, starting with the Iraq war.
>> Well, personally, I took a different position vis a vis the Iraq war.
Visited in 2003, I visited again this year.
There has been some military progress because of the surge and because of the Shia militias being under cease-fire and because of the Sunni engagement with our troops.
Many things have improved, but politically they have not changed one iota.
The compromise is that they are trying to get the Sunni and Shia to cooperate.
There is very little progress on that.
We have done what we said we would do militarily -- eliminated Saddam Hussein, created the new regime, helps them to create a new government.
>> But you have never been one for a withdrawal time line.
Where do you stand today?
>> I am in favor of getting our troops out of there, as much as we can, by the end of 2008.
Training, providing security for our and Bessey folks, and to doing some counter insurgency -- to our --
We have trained close to 300,000 Iraqi soldiers and police.
They should be capable of carrying the fight.
Not our guys.
Our guys have done their job.
By setting some sort of a timetable that is somewhat loose, not fixed, that puts pressure on the Iraqi political leaders to move.
Because as long as the United States is there, we provide political leaders with cover and protection.
When they get the sense that the long-term American commitment -- and the people of the United States are ready to leave Iraq -- when they get the sense that that is about to happen, they are going to feel the pressure to make political accommodations that are required.
My view is if they do not get those agreements, which could leave today, which could leave five years from today, and the Sunni and Shia will fight.
>> Expanding the children's health care program.
>> The Trichet -- The truth is that we have a program that the Republicans have created, Republican congress and -- I saw Senator Clinton trying to take credit for it, but it is really created by Republicans.
They came back and we worked out a bit of a compromise.
It would increase the level of coverage.
In other words, it would capture more low-key to middle income kids and provide them -- low to middle income kids can provide them with coverage.
I supported it.
Unfortunately, we did not get a presidential signature on the bill.
I think he should have signed the bill.
This is something that both parties embraced.
It is the scope of the program that people differ about.
>> But there is an extension of that?
>> There is an extension beyond the next election, and hopefully we will get a comprehensive bill.
I was not reluctant in supporting it, I just did not like the way they propose that initially.
>> And the alternative minimum tax?
>> Well, the alternative minimum tax is a tax that was passed by the Democratic majority a long time ago.
The idea was to soak the rich, get these rich people that avoided paying taxes.
What they have done is they passed the law but never put in the cost of living allowance for a cost of living in for later -- inflater into the bill.
Now middle-class people are paying.
I pay this alternative minimum tax and a lot of other people are paying it, too.
It was never meant to capture the middle class.
It was meant to capture the wealthy, who write around the IRS laws.
We passed a change in the law so that people are not captured by this tax.
This year it would have captured an initial 20 million American families because it continues to grow, the scope of this thing.
My view is that we should eliminate the tax, period.
Forego the revenue.
That is really what needs to be done.
>> Finally, the issue of immigration reform, a big one last fall when you were running for reelection.
A big one in your district and probably Syracuse as well.
Communities feel like the federal government fell short on this issue this year.
>> Well, the federal government -- what we tried to do was to a comprehensive bill, and it is not possible given the volatility of the electorate and the state of play of politics in this country.
It does not seem to be possible to get a comprehensive bill.
What I think we should do is create -- First of all, we need to secure our borders.
It is not only an illegal immigration issue, it is a national security issue.
We have not done that.
We have passed legislation to build security fencing along the Mexican border and put additional troops down there, additional border security people, which needs to be implemented faster.
But I think what we need -- we need for our farmers to provide a guest worker program -- we need to provide a guest worker program.
They have historically brought in people across the border that they cannot get Americans to do.
When I was a kid, I worked on an apple farm.
You trim, you print, you plant trees, you pick apples.
You cannot get people to do that anymore.
The immigrants are willing to do it.
They should be able to come here, Register, get certified, do the work, and go home.
We do not have a good program to do that.
We cannot have millions of dollars of fresh fruit and vegetables riding in the field.
>> The 110th Congress -- the biggest success so far -- what is it?
>> They thought they had a mandate, and all they did was fight about Iraq.
The have accomplished almost nothing.
We never passed our appropriations bills until the very last week of the session.
Thank God.
I was very successful.
I think I had a very good and appropriate since -- Appropriations session to pass funds.
We had sorely needed money for RIT, you LaVar, Irondequoit Bay -- you of our -- u of r, Irondequoit bay.
Otherwise, we did not do much.
>> We now go from the nation's capital to the state capital, where New York Governor Eliot Spitzer delivered his second annual state of the state message on Wednesday.
In part of that speech he called for greater investment in higher education.
>> If you want to participate in the innovation economy, a high-school diploma is not always enough.
You are going to need a college diploma, or better yet, and advanced degree.
We cannot strengthen our economy without the best colleges producing the best prepared graduates.
That is why our goal must be to make an outstanding higher education affordable for every New Yorker.
[applause]
Last year I convened a Commission on Higher Education to recommend what we need to do to make America's the largest system of higher education one of its very best.
Last month they spoke.
Today, you and I need to begin acting on their recommendations.
Over the next five years, we must hire 2000 new full-time faculty members for SUNY, including 250 -- For SUNY and q-ny, including 250 new professors.
We must create an innovation Fund for cutting edge research at New York's public and private colleges, similar to the National Science Foundation and the National institutes of health.
It will supercharge our innovation economy.
We must invest in our community colleges with trained New Yorkers for high skill jobs as the gateway to four-year colleges.
[applause]
For the community college students who want to continue their education by transferring to four-year SUNY schools, we will make the process simple and seamless and give them full credit for the academic courses they have successfully completed.
>> The governor also talked a lot about revitalizing upstate.
>> I will propose a $1 billion upstate revitalization fund to meet upstate's most urgent needs.
It will increase funds for investing in businesses, in infrastructure, and in Agri-business.
I will talk more about this fund next week in Buffalo when I deliver New York's first state of upstate address.
But the concept is simple.
For years upstate economic development was characterized by halfway measures and piecemeal project.
With our regional blueprints in place, we now have the vision.
If we can come together around this plan, which will have the capital to fulfill it.
Together, we must enact this $1 billion upstate revitalization fund and create an upstate whose best days are not behind it but are yet ahead of it.
>> Joining me now in studio is Sandra Parker, President and CEO of the Rochester Business Alliance.
Welcome.
>> Thank you, Julie.
>> He just said he wants to give $1 billion to upstate New York.
What are your thoughts?
>> First of all, we were very pleased with the overall theme of the state of the state.
He definitely emphasized the need to revitalize the upstate economy.
The $1 billion is an example of a stronger commitments to upstate.
I think we all look forward next week to the state of upstate, where we can in fact get more specifics and more details as to how the $1 billion will be distributed.
>> And not just distributed, but raised.
There is some concern that it does not exist.
Are you concerned about that?
>> There is always that concern.
He did state in the state of the state that he will have a balanced budget, so we will have to look at the numbers.
I think his team of we need to invest in order to reinvigorate is an appropriate one, and I am a firm believer that if we set priorities for where some of our spending will be, we can see reductions in other areas, and also if we are successful in reinvigorating the upstate economy, we are going to have more employers coming into the area, more business is growing, which will be an increase the base of tax revenue for the state.
>> You talked about how that will be distributed.
Obviously we do not have details yet, but there has always been concerned that money is not always distributed fairly an equally in upstate New York.
Are you hoping for a new formula, or do you think he will do it on a project basis?
>> Probably both.
There are certainly a number of projects out there.
In particular for the Rochester area, the $65 million that has been pledged for Midtown project will probably come out of that $1 billion pool.
I think we are going to be continuing to push for more parity in terms of the City of Rochester, said that as an effort the community will continue to put forth.
That is more form the base, so I think it will be a combination of both.
>> They told us that the money for the PAETEC and Midtown project is part of the $1 billion, that that's still leaves a lot of other funds for Rochester.
What is the next big project?
>> That has not been determined, and I think one of the things that the community has to do is identify what is the next project that the community feels will add the greatest value and will have the greatest potential to reinvigorate the Rochester economy.
So that is something that should not be determined by the city by itself or the county by itself, but a combination of various constituent groups could should come together -- should 10 -- should come together to get behind it.
>> And you have a diverse community, which will do a whole program on in the future.
If that group had to choose the next big project, what would he be?
>> That group has identified seven projects, seven initiatives that we were pushing this year.
The total dollar tag on the seven initiatives is $215 million, so I think if that group had its druthers, we would say that Midtown is part of it that -- is part of that.
We would probably focus in on one of those.
>> Do you want to list those seven?
>> We have support for the clinical translation of Sciences Building at the University of Rochester, support for the Golisano sustainability Institute at RIT.
$1 Million support for the mass Science Center at Nazareth content -- at Nazareth -- for the math Sciences Center at Nazareth College.
$10 Million in mandate relief for the County of Monroe, and parity for the City of Rochester in terms of state aid, and of course the Midtown project.
>> Renaissance Square is absent from that list.
>> That does not mean we do not look at that as an important economic development item for our community.
However, at the present time we think there is still a lot of information that has not been shared that we do not know enough about the full cost of the project, the money for the full -- where the money for the performing arts center is going to come from.
Until those questions are answered, we did not feel it was appropriate to put that on the priority list.
>> As the committee pushes for their part of the $1 billion --
>> Not at the present time.
If we get that information in the community feels there is something vitally important, there is no reason we could add that to the Coalition agenda.
>> What are you hoping to hear next Wednesday?
>> Hoping to hear again more specifics.
His message was very definitely upstate-focused.
I want to hear more about the $1 billion.
There are a number of other items out there that we have put forth that is important for upstate revitalization, such as scaffold law reform, business tax cuts.
Energy cost relief.
>> Thank you so much for coming in today.
Sandy Parker, President and CEO of the Rochester Business Alliance.
It is time for the Business Section with the "Need to Know."
-- with the "Democrat & Chronicle."
Matt Daneman, business reporter for the "Democrat & Chronicle," is here today.
>> Julie, go, Packers.
Xerox has spent multimillion to come up with a new logo.
Guesses are abounding.
I do not know what the figure is, but they spent a lot of money to go basically from the all capital letters to all in a different font.
It kind of looks like the X box logo.
>> Sort of that texting --
>> Exactly.
They are trying to get across, "hey, we are not a photo copier company but a photo technology company, and we are hip."
>> What is the initial reaction?
Some are saying it looks like a beach ball.
>> It is a mixed reaction.
You have to wonder how Xerox looks verses the name Xerox.
Experts who study these things say, yes.
They are smarter than me.
>> Let's talk about Kodak stock, not in a good place right now.
>> The stock market has in general has been very shaky with increasing fears of a recession nationally.
What did that mean for Kodak?
It meant that their stock when there was briefly trading at a loved it had not seen since the 1970's.
So what -- at a low it had not seen since the 1970's.
Kodak was hit by the same way of that was hit by -- that has hit stocks throughout the country.
>> When our analysts say to people who have stopped?
>> It all kind of depends what you think the long-term prospects of Kodak are.
If you think it has a future, this is the time presumably to buy because it is going to be a bargain basement.
If not, you should dump it.
>> Let's talk about fuel cell development in Rochester.
>> Interesting technology, and there have been efforts by a lot of companies around here -- Delphi, etc.
The Defense Department announced it was going to spend $2.75 million with Delphi and RIT on research, the idea being that the government is looking for cheaper, easier, quieter ways for the vehicles to run so that they consume less fuel.
This could potentially shore up even further the areas trying to push alternative energy, the hub or Nexis.
>> And Salcher life was involved in this?
>> -- and ultra life was involved in this?
>> They are actually going to set up a production facility in Mississippi to build these little fuel cells to run military radios, too.
Fuel cells for years have been sort of the gene which is -- and the gee whiz technology.
>> Thank you so much, that.
Matt Daneman is a business reporter for the "Democrat & Chronicle," and that concludes this edition of "Need to Know."
next week we will look at the governor's state of upstate address, scheduled for Wednesday in Buffalo.
We will also talk about efforts to create a voting bloc of people with disabilities as part of WXXI's weeklong dialogue on disability.
And we take a trip to New York City through the lens of photographer Larry Miller -- Larry Merrill on a Special Arts Friday.
I will see you then.
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