Assembly Unveils "NY@Work" Jobs Initiative

Silver: Pataki's Economic Policies Cost New Yorkers $20 Billion In Lost Wages

Speaker Sheldon Silver joins his Assembly colleagues at a Capitol news conference to unveil a comprehensive Assembly jobs program: New York at Work. Left: Silver, Assemblyman Joseph Morelle (D-Rochester), chair, Tourism, Arts and Sports Development Committee; Majority Leader Paul Tokasz (D-Cheektowaga, Lancaster): and Assemblyman Robin Schimminger (D-Kenmore), chair, Economic Development, Job Creation Commerce and Industry Committee.

Assembly Speaker Sheldon Silver today announced a major economic development initiative that will provide a comprehensive, effective and long-term blueprint for building a stronger economy and creating more jobs in New York State (Click here to review entire NY@Work report).

"This administration's economic development policies have not proven to be successful. In fact, if the rate of job growth in this state had simply paralleled the national rate over the past nine years, we would today have 432,900 additional jobs. That translates into a staggering $20 billion in lost wages for New Yorkers due to the state's inability to keep pace with the rest of the nation. To put that into context, $20 billion is greater than the total combined wages for the state's Southern Tier, Mohawk Valley and North Country regions for 2002."

The Assembly's NY@Work initiative would completely overhaul the state's economic- development bureaucracy, enact major reforms in such programs as Empire Zones and promote strategic industry investments. It also provides for comprehensive workforce education and training, while laying the foundation for economic growth by ensuring that our children receive a quality education that will prepare them for the technology-driven jobs of the 21st century.

"Our proposal seeks to revamp the state's economic development policies by adopting a strategic, market-driven and accountable approach that recognizes the unique resources of each region of the state and the key industries within the regions - such as colleges and universities, tourism and agri-business." said Silver. "At the same time, this initiative renews our call for Empire Zone reform, creates a comprehensive manufacturing assistance program, reforms and extends Power for Jobs and supports community-based economic development."

The Assembly also provides nearly $525 million in support for NY@Work, including $280 million in new capital investments across the state by reprogramming $250 million included in the executive's 2004-05 budget proposal, and calling for $30 million to support the inclusion of the Educational Opportunity Centers (EOCs) within the State University of New York (SUNY) five-year capital plan.

It also would provide nearly $23 million in operational support for state economic development programs and redirect more than $28 million in federal funds for economic growth initiatives. The proposal also calls for $60 million in tax credits beginning in 2005-06 for the support of new venture capital investment to encourage high-tech business formation.

"Due to this administration's policies our state has trailed the rest of the country in job creation. This Assembly job plan will target the need for job growth and economic recovery in New York," said Assembly Ways and Means Committee Chair, Herman "Denny" Farrell, Jr. (D-Manhattan).

"Our plan will produce smart economic growth throughout the state and further illustrates the Assembly's continuing commitment to programs that create real jobs. Investing in our employees and employers through a variety of ways will promote job creation and retention while making New York State a better and more competitive place to live and work. I wholeheartedly support this plan and will work with the Speaker and my colleagues to make it a reality so we can help businesses grow and prosper in New York," said Majority Leader Paul A. Tokasz (D-Cheektowaga/Lancaster).

	Silver also was joined by (from left) Assemblywoman Aileen Gunther (D-Forestburgh); Assemblywoman Barbara Lifton (D-Cortland,Tompkins); Assembly Energy Committee Chair Paul Tonko (D-Amsterdam); Higher Education Committee Chair Ron Canestrari (D-Cohoes); and Assemblyman Morelle.

"Creating jobs - good jobs - in a changing and increasingly global economy must always be among our top priorities," said Assemblyman Robin Schimminger (D-Erie/Niagara), chair of the Assembly Committee on Economic Development, Job Creation, Commerce and Industry. "The various components of NY@Work - giving better direction to the state's economic development efforts, developing a highly skilled workforce, supporting high-tech research and development, strengthening the Empire Zone program and building on regional strengths and assets - are all geared toward that end. The bottom line is jobs and opportunity for New Yorkers, now and into the future."

"One of New York's greatest assets is our workforce - the hard working, well trained, productive men and women who power our economy," said Susan John (D-Rochester), Chair of the Assembly's Committee on Labor. "The Assembly's NY@Work plan - through such initiatives as a comprehensive manufacturing assistance program, on-the-job and vocational training, school-to-work programs, and workforce development centers - will help prepare our workforce for the 21st century job market and will make New York a destination for locating and growing businesses."

"Our state is renowned for its tourism, film and arts communities, which provide valuable jobs and economic viability to New York. I support efforts to continue investments in tourism and arts programs to provide New York with growing economic benefits in the years to come," said Assembly Tourism, Arts and Sports Development Committee Chair Joseph Morelle (D-Monroe).

"With small businesses accounting for eight out of every ten jobs being created in New York State, it is imperative that we have effective programs and initiatives to promote these businesses that are the backbone of our state economy," said Assemblyman Darryl Towns (D-Brooklyn), chair of the Assembly Small Business Committee.

"Access to low cost energy is essential to job creation," said Energy Committee Chair Paul Tonko (D-Schenectady/Montgomery). "Power for Jobs has helped to retain and create hundreds of thousands of jobs throughout New York since 1997. I fully expect that by reforming and extending the program, we will continue to help businesses throughout the state lower the cost of doing business in New York."

"As Chairman of the Higher Education Committee, I am pleased to join my colleagues for this announcement to tell New York's most talented and gifted students that they will not need to leave their families and communities to find jobs because we, in the Assembly, are committed to consistent job growth in New York State," said Assemblyman Ron Canestrari (D-Cohoes).

"There is no doubt that agriculture is one of the largest and most important industries in and throughout New York State and our investment in it is essential if we want the next generation of farmers to grow," said Assemblyman Bill Magee, chair of the Assembly Agriculture Committee. "The Assembly's plan will assist our farmers in developing new markets for locally grown products as well as help expand vital agri-businesses, like our wineries and vineyards."

"The Assembly's plan holds tremendous promise for New York's future. Only by sustained support for one of our greatest assets, our research institutions, can we advance in such vital industries as biotechnology," said Assemblyman Adriano Espaillat, Assembly chair of the Legislative Commission on Science and Technology.

"As chair of the Skills Development and Career Education Legislative Commission, I am particularly aware of the need for the types of training that will lead to long-term advancement for our state's workforce. Our plan responds to that need in an effective and innovative manner," said Assemblyman William Scarborough (D-Queens).

"The Assembly's 2004 Economic Growth agenda is an aggressive initiative to place New York on the road to economic recovery," said William Magnarelli (D-Syracuse). "The numerous links we are making between education and industry - something I have worked very hard to promote as chair of the Task Force on University-Industry Cooperation - will pay dividends for working New Yorkers and ensure New York plays a proper role in the 21st century global market."

NY@WORK

Create an Economic Policy Coordination Board

We must establish accountability measures to accurately determine the impact of the state's investments in academic research and development, high-tech, research-intensive projects and business-specific economic development programs. Both the research institutions and the businesses that benefit from the state's investments and the taxpayers who ultimately underwrite these investments deserve nothing less.

The Assembly plan would create a 12-member high-powered, private sector Economic Policy Coordination Board. The Governor would appoint six members and the Speaker of the Assembly and Senate Majority Leader would appoint three members to the panel, thus assuring input from different viewpoints and interests across the state. The board's primary responsibility would be the development of a strategic plan for economic development based on a realistic assessment of regional economic strengths and weaknesses. It would also identify those sectors of the economy with the greatest growth potential and establish priorities for funding, including a preference for small businesses and women and minority-owned businesses.

The Assembly would also replace the Empire State Development Corporation's (ESD's) Board of Directors with a new control board comprised of one member each appointed by the Governor, Speaker of the Assembly and the Senate Majority Leader. The control board's decisions would require consensus with a unanimous vote required for action.

Reform the Empire Zones Program

The Empire Zone Program, an Assembly Majority initiative which transformed the old Economic Development Zones Program, has been cited by both local governments and the business community as the most effective economic development program currently in existence in the state. Unfortunately, the current administration has mismanaged the program and it has failed to live up to its potential.

The Assembly recognizes the importance of this program and proposes sweeping reforms that will ultimately improve performance and accountability. In addition, the Assembly will continue to monitor and make recommendations to improve the performance of the program. The Assembly has called for a series of public hearings across the state on this issue as well as requesting an audit of the program by the state Comptroller.

Recognizing that the taxpayers of the state ultimately bear the cost of the tax benefits provided by the Empire Zone Program, it is imperative that the program be reformed in ways that would produce the greatest public benefit and eliminate the potential for abuse. The Assembly's plan makes major changes to the program to improve performance and ensure appropriate administrative oversight and management, while also ensuring that the economic benefits accrue to areas of the state with the greatest level of economic distress.

In addition, the plan seeks greater accountability from local zone administrators by requiring them to follow-up and track all certified zone businesses on an ongoing basis throughout the life of the program so that information on the status of each zone business is current and accurate. It also requires them to report on program performance, particularly on the number of jobs created as a result of businesses' participation in the program and to verify, through whatever means possible, information reported to them by certified zone businesses.

Develop the Workforce of the Twenty-First Century

The Assembly's plan, Expand Local Economies through Vocational and Technical Education (ELEVATE NEW YORK), will make investment in New York's best resource, its workforce. The Assembly recognizes that one of the best economic development investments the state can make is to build the skills of its workers and that such investment must start in the schools.

Initiatives linking school-based activity to the workplace can be an important part of the educational experience. There are age appropriate learning opportunities that schools could consider as part of their instructional program. ELEVATE NEW YORK would support programs that encourage schools to develop structured programs opening opportunities for youth in various fields including science, technology and community service.

The Assembly plan would also invest in vocational education and support programs that can train individuals for occupations that do not require a post-secondary education experience. Resources will be directed to vocational education programs in high schools, as well as BOCES, that emphasize technology education and the integration of new technologies in traditional industries. The initiative also promotes youth apprenticeship programs as an effective way to attract youth to apprenticeable occupations.

Understanding New York's four-year colleges and its community colleges are critical tools in the preparation of a technologically skilled workforce, the Assembly calls for greater focus on internships and practicums as important ways to bridge from the classroom to the workplace, and technology and skills training at specialized centers of excellence within the community college system. The Assembly also calls for the creation of a program offering an installment payment option for low and low-to-moderate income wage earners.

In addition, the Assembly seeks to fortify its highly successful Educational Opportunity Centers (EOC's) that provide job training and educational services to roughly 20,000 low income New Yorkers at 11 sites across the state.

Invest in Capital Projects that Create Jobs

The Assembly's plan provides support to address the many capital needs confronting our emerging high tech industries and our established, mature industries. It invests in high technology and biotechnology/biomedical research and commercialization projects and ensures the accountability of these investments. It also provides the necessary financial help to turn scientific innovations into commercial opportunities.

The plan also provides valuable support to strengthen and maintain New York's manufacturing capacity and its network of skills and workforce training facilities. It makes investments in the physical infrastructure necessary to leverage the private sector support that will, in turn, spur renewed economic activity.

The Assembly plan would provide opportunities in all regions of the state for our businesses and workforce through continued capital support for technology research at academic institutions, greater accountability in high tech investments and the creation of a commercialization policy that commits academic research institutions to translating their innovations into jobs for New Yorkers.

Additionally, the Assembly calls for the creation of a Technology Commercialization Capital Fund because the state needs to continue spurring investment in business incubators for start-up firms and "accelerator' facilities for later-stage companies, which provide low-cost, flexible, state-of-the-art space for young and expanding technology firms to thrive. These facilities also provide access to vital technology transfer services including management, business plans and marketing assistance.

The Assembly also seeks continued small business assistance for equity and debt financing though another round of CAPCO investments and the New York Seed Capital Program (NYSEED), and continued support for the Capital Access Program and the New York State Venture Capital Fund.

Create a Comprehensive Manufacturing Assistance Program

Manufacturing is a vital component of the national and state economy. It greatly influences trade and prosperity despite the increasing emphasis placed on the knowledge-based and service sectors of the economy. However, manufacturing employment is on the decline. In New York, between 1981 and 2001, manufacturing employment as a percentage of total employment has dropped from roughly 17 percent to under 8 percent, a loss of over 600,000 jobs.

Recent studies and analyses have identified areas where manufacturing in the U.S. can continue to survive and even thrive. While acknowledging that labor-intensive industries will continue to move to low cost labor markets, success in manufacturing often results from innovation, investment in new products, new designs, new materials and new production technologies. In the 21st century environment for manufacturing, those industries that apply new technologies, generate new products, stabilize fixed costs such as energy and have access to the educated and skilled and technologically sophisticated managers and workers will succeed.

New York has the opportunity to stabilize and even grow its still significant manufacturing sector by establishing a "Make-It-Here" manufacturing initiative. Elements of such a "Make-It-Here" strategy should focus and capitalize on small manufacturer and niche markets, flexible manufacturing and networking, research and development, export assistance, the Power for Jobs programs and the state's skilled and educated workforce.

Support Community-Based Economic Development

Community based economic development is the key to economic empowerment. It is a process by which communities seek to enhance their competitiveness through a rigorous process of analysis of their respective assets and liabilities. It involves the identification of barriers to development, the development of a plan to overcome the barriers and the implementation of the plan throughout the community.

The Assembly plan seeks to promote community-based economic development through its continued support for and emphasis on the Minority and Women-Owned Business Development Lending Program, the Urban and Community Development Program, the Rural Revitalization Program, the Small Business Assistance Program, tourism promotion and new agriculture initiative, called FARM (Farm and Agriculture Reinvestment and Marketing).

Click here to review entire NY@Work report.