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Department of Economic Development (DED)
                       Adjusted      Executive   Legislative                       
                        Approp.        Request       Approp.
                        2000-01        2001-02       2001-02      Change

STATE OPERATIONS
  General Fund       35,515,900     38,730,000    37,230,000   (1,500,000)
  Special Rev.-Fed.   1,000,000      1,000,000     1,000,000            0 
  Special Rev.-Other  4,720,900      4,409,900     4,409,900            0 
  Total for 
  STATE OPERATIONS:  41,236,800     44,139,900    42,639,900   (1,500,000)

AID TO LOCALITIES
  General Fund       24,553,450     11,974,000    19,824,000    7,850,000 
  Total for 
  AID TO LOCALITIES: 24,553,450     11,974,000    19,824,000    7,850,000 


Agency Mission

The mission of the Department of Economic Development (DED) is to develop economic development strategies for businesses. The Department, in conjunction with the Urban Development Corporation, administers State economic development programs.

Year-to-Year Change

On an All Funds basis, the Executive proposes a State Operations increase of $2,903,100, or 7.1 percent. The Executive proposes to reduce Aid to Localities by $12,579,450, or 51 percent. This change reflects a decrease of $7,302,850 in Community Projects funds.

Legislative Changes

Elimination of Reapportionment and Review employees. $(2,000,000) ST/GEN

The Assembly eliminates funding for 20 positions in the Department of Economic Development's Marketing and Advertising Program in relation to Reapportionment and Review.

Elimination of the Empire State Technology Employment Incentive Program. $(1,700,000) ATL/GEN

The Assembly recommends the elimination of funding for the Empire State Technology Employment Incentive Program.

Addition of Personal Service associated with the On-line Business Permit Program. $240,000 ST/GEN

The Assembly recommends the transfer of $240,000 in support of Personal Service for the Small Business On-line Permit Program from the Governor's Office of Regulatory Reform (GORR) to the Department of Economic Development.

Addition of Nonpersonal service associated with On-line Business Permit Program. $260,000 ST/GEN

The Assembly recommends the transfer of $260,000 for the Small Business On-line Permit Program from GORR to the Department of Economic Development.

Legislative Proposals

The 2001-2002 Assembly Jobs Agenda

The development of a rapidly changing economy and the reality that New York State's economy is a collection of diverse regional economies, highlights the need for flexibility and responsiveness in the delivery of economic development services. In today's New Economy with high levels of competition from other states and other nations, New York must adopt a more effective organization for the creation and implementation of its economic goals.

Several of the nation's Governors, including former Governor Whitman of New Jersey, Governor Engler of Michigan, and Governor Bush of Florida, have enhanced their economic development efforts, moving their governance from traditional political bureaucracies to high-powered organizations administered by non-partisan public/private boards.

The Assembly proposes that New York adopt this model and create an independent, market-driven commission that would be dedicated to, and held accountable for, responding to business and workforce needs. The new Commission would serve as an umbrella organization over all New York State economic development agencies including the Urban Development Corporation, Job Development Authority, the Department of Economic Development and the New York State Office of Science, Technology and Academic Research.

The Assembly Jobs Agenda for 2001-02 invests in university and industry partnerships through the establishment of university and research institution-based technology centers and the development of business facilities that offer affordable space for new companies. The High Technology and Biotechnology portion of the Assembly Jobs Agenda will be overseen by New York's Economic Development Commission.

The Assembly Jobs Agenda provides for community revitalization and will empower communities to plan and implement locally and regionally developed revitalization strategies. The Agenda also provides targeted assistance to revitalize the manufacturing sector by supporting industrial retention activities in all regions of New York State.

Scientific discovery and technology development continue to transform workforce requirements. The Assembly Jobs Agenda promotes a workforce agenda by providing training, skills development, apprenticeships and internships, while ensuring the jobs of the future are made available to all New Yorkers regardless of race, gender, or other discriminatory distinctions and that these jobs pay fair wages in a safe working environment.

Tourism and small business remain two of the most powerful forces in New York's economic engine. The Assembly continues to believe that a local and regional approach in conjunction with a statewide effort in these areas would offer the greatest opportunity for economic growth in New York.

In the Department of Economic Development the Assembly maintains support for the following Programs:
  • Tourism Matching Grants
  • Empire Zones Program
  • Adirondack North Country Association
  • New York City Watershed Pilot Program
  • Gateway Information Center at Beekmantown
  • Gateway Information Center at Binghamton
$5,777,000
$3,320,000
$177,000
$600,000
$200,000
$200,000
The Assembly provides $25,565,000 for the following programs:

Promoting Tourism

1) Regional I Love New York Program $11,015,000

The Assembly proposes that $5,015,000 be used to promote tourism in New York on a Statewide basis. The remaining $6,000,000 for the "I Love New York" Program will be administered on a regional basis by local tourism officials who are most familiar with the needs and priorities of their region.

2) Regional Business Marketing $5,000,000

This Program will focus on promoting the economic strengths and unique resources of each region within the State. The Program also provides matching funds for regional business marketing plans that promote each region's commercial strengths and unique resources, from its modern infrastructure to its quality educational facilities.

3) Tourism Matching Grants $1,000,000

The Assembly recommends an additional $1,000,000 to increase tourism promotion across New York State.

4) Motion Picture Investment Fund $3,000,000

Growing competition from other localities, particularly Canada, has led to the decline of the State's, and the nation's feature film and television production industry. This program would create a Motion Picture Investment Fund to help finance independent films, increase marketing strategies, and provide enhanced film education. The Assembly recommends $10,000,000 over a three year period for this fund.

5) Sports and Recreation Tourism $1,000,000

Sports and Recreation are a major component and a growing segment of the global tourism industry. New York boasts many professional, semi-professional, and amateur franchises in various sports. The Assembly plan would provide marketing for these economic resources.

6) Cultural Tourism $1,000,000

The Assembly recommends $1,000,000 to promote the State's numerous cultural institutions and tourist destinations including museums, historical sites, living museums, architecture, zoos, botanical gardens and other cultural amenities.

Small Business Growth

1) Entrepreneurial Assistance Program $1,000,000

The Assembly recommends restoring $1,000,000 in funding for the Entrepreneurial Assistance Programs (EAP's). This funding will support the existing network of Entrepreneurial Assistance Centers that assist minorities, women, and dislocated workers who desire to establish their own business.

2) Small Business Online Permit Program $500,000

The Assembly recommends $500,000 to provide small businesses with the ability to access information on-line about the permits required to operate a small business in New York State.

3) Griffiss Local Development Corporation $300,000

The Assembly recommends $300,000 to continue economic revitalization efforts at the former Griffiss Air Force Base.

4) Small Business Mentoring Program $250,000

The Assembly recommends $250,000 to enable experienced business persons the ability to provide technical assistance to small business owners through a business mentoring program.

5) Small Business Capital Access $1,000,000

The Assembly recommends $1,000,000 to provide incentives to participating banks to increase lending to small businesses.

6) Strategic Training Program $500,000

The Assembly recommends $500,000 to provide investments in technology to make skills training affordable and accessible to the small business community through a digital network linking colleges and training providers with businesses across the state.

MOTION PICTURE INVESTMENT FUND.
SPORTS AND RECREATION TOURISM PROGRAM.
ENTREPRENEURIAL ASSISTANCE PROGRAM (EAP).
LOCAL TOURISM MATCHING GRANTS.
SMALL BUSINESS CAPITAL ACCESS.
CULTURAL TOURISM PROGRAM.
STRATEGIC TRAINING PROGRAM.
REGIONAL BUSINESS MARKETING.
GRIFFISS LOCAL DEVELOPMENT CORP. (GLDC).
SMALL BUSINESS MENTORING PROGRAM.
$3,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$500,000
$500,000
$300,000
$250,000
ATL/GEN
ATL/GEN
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