Assemblyman Skartados: Assembly Budget Proposal Would Help Grow Jobs, Aid Small Businesses

March 13, 2013

Assemblyman Frank Skartados (D-Milton) announced the Assembly budget proposal for 2013-14 contains significant initiatives to help boost economic development in the Hudson Valley and provide aid to small businesses in the region (E.182). The Assembly’s budget also closes a $1.4 billion budget deficit without raising additional taxes and invests in our children's education.

“Investing in small businesses and promoting a more business-friendly environment right here in the Hudson Valley is the best way to fast-track local economic development,” Assemblyman Skartados said. “The Assembly budget proposal ensures we can bring more good-paying jobs to the area and sets local small businesses up to thrive.”

New jobs initiatives

The Assembly budget proposal provides $100 million for a new jobs initiative. Funding would go toward reconstruction of communities, advanced manufacturing and certification assistance and education and job training for science, technology, engineering and mathematics fields.

In addition, the Assembly budget proposal provides $31.2 million for capital projects, including $1.25 million for a new Advanced Manufacturing Career Opportunity Revolving Loan Fund. This initiative would assist individuals interested in advanced manufacturing – the use of emerging technologies to improve manufacturing – with low-interest loans to obtain training and certification.

The Assembly budget proposal also creates CAPCO 6, a program that authorizes the state to license certified capital companies to raise $150 million in private venture capital from insurance companies. That money would then be used to invest in qualified businesses in exchange for tax credits of equal amounts.

“Investing in industries like advanced manufacturing is critical for our region to be a top competitor in high-tech industries,” Assemblyman Skartados said. “These initiatives also equip our workforce with up-to-the minute job training, which sets our families up for success and ultimately boosts job growth in our communities.”

Small-business aid

In an effort to improve small-business growth, the Assembly budget proposal includes $12.5 million for the Small Businesses Revolving Loan Fund and $500,000 for Small Business Innovation Research (SBIR) Outreach and Technical Assistance. In addition, the proposal restores $365,000 in additional support for Minority-and Women-Owned Business Development and Lending Programs for a total of $1 million.

“Small businesses are the backbone of the Hudson Valley’s economy,” Assemblyman Skartados said. “We must do everything we can to make sure they are successful. After all, as our small businesses grow, more good-paying local jobs are created for our families.”

Protecting workers, lowering costs to businesses

The Assembly budget proposal includes Unemployment Insurance (UI) reform to help businesses save $360.1 million annually. These reforms will provide for:

• UI Interest Assessment – businesses will no longer pay interest on the federal UI loan once the fund is solvent;
• Contribution Schedule – businesses will pay contribution rates that are up to 25 percent lower than they pay now; and
• Federal Unemployment Tax Act (FUTA) Reduction – businesses will see the federal unemployment tax rate cut in half.

Assemblyman Skartados added that the Assembly’s budget gradually increases the weekly unemployment insurance benefit from $405 per week to 50 percent of the state’s average weekly wage by Oct. 1, 2026, and increases the minimum weekly benefit for workers’ compensation claims from $100 to $150.

“The Assembly’s proposed reform to the Unemployment Insurance will make it more affordable to do business in the Hudson Valley,” Assemblyman Skartados said. “At the same time we are adjusting to unemployment and workers’ compensation benefits to keep up with the increased costs working families experience every day.”

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