Buffalo News: Another Voice: Wrongful death bill would create fiscal devastation

By: Peter Baynes

The New York State Legislature is advancing a bill that will increase costs for local governments, including villages, towns, cities, counties and school districts. The bill is Albany’s latest attempt at amending New York’s statute regarding damages payable in wrongful death lawsuits. Gov. Kathy Hochul vetoed a similar measure earlier this year citing increased costs to not only local governments, but doctors, hospitals and every household in the state.

While we wholeheartedly support the intentions behind the push to update the law, the approach taken will be devastating for municipal budgets and the services they support. Lawmakers must find a balance and address the reasons that the bill was vetoed in the first place. And they must be transparent about how any proposal to address this issue will impact the public.

State agencies and public authorities including the Office of Parks & Recreation and Thruway Authority, “would similarly face increased litigation costs resulting in higher costs to taxpayers,” says the State Division of Budget’s analysis of last year’s version of the bill.

According to the Permanent Joint Rules of the Senate and Assembly, fiscal impact notes are required for all proposed legislation that would substantially affect the expenses of any county, city, town, village, school district or other political subdivisions. Unfortunately, the recently introduced bill to increase damages payable in wrongful death lawsuits does not include the required fiscal impact note.

Municipalities and other public entities are often among the top targets for lawsuits. Local governments are perceived as “deep pockets” even when they are only marginally connected with the incident in question. The budget implications of settlements, judgments, and defense fees inhibit the ability to provide crucial public services.

In addition, the increase in damages recoverable in wrongful death suits is certain to increase liability insurance premiums. This would impact not only municipalities, which must purchase insurance to mitigate outsized liabilities, but the many businesses and medical facilities that form the lifeblood of our communities, serve as an economic engine, and employ our citizens.

Like its 2022 predecessor, the recently introduced bill contributes to the perception that cities, towns, counties and villages are ripe for lawsuits of all kinds, despite the reality that the costs of claims against local governments are shouldered by taxpayers.

According to the Division of Budget, the impact of last year’s bill on public hospitals alone would have been an increase of $667.5 million. So as the New York State Legislature continues to consider nearly identical legislation to overhaul the wrongful death statute in the 2023-24 session, we call on the lawmakers to ensure that the Permanent Joint Rules of the Senate and Assembly are followed, and that a thorough analysis of the fiscal impact on local governments is conducted. New Yorkers deserve to know.

Peter Baynes is executive director at the New York State Conference of Mayors and Municipal Officials.