Borelli Slams START-UP NY As A Failure Right From Its Startup

September 6, 2013

Assemblyman Joe Borelli (R,C,I-South Shore) attacked the “START-UP NY” plan after the release of revised quarterly budget estimates by the Governor’s budget office, which had the program costing taxpayers $323 million over the next three years. “START-UP NY” was meant to give tax exemptions to new businesses and their employees that started up in or near SUNY campuses. Early administration arguments included a promise of zero-cost to the taxpayer.

“These new budget estimates are proof that the administration was wrong on two critical counts – the costs of this program and its benefits,” said Assemblyman Borelli. “In other words, it is a failure right from its startup.”

The budget office also stated early costs were due to recent start-ups that benefited from the program changing their employees’ tax withholding. “START-UP NY” exempted workers of eligible businesses from state and local income tax. The direct implication is that the first jobs to benefit from the program would have been created anyway even if the special tax break had not been approved by the legislature this past June.

“So, a program that was only supposed to help start-ups that wouldn’t have otherwise existed is actually giving breaks to businesses that would have been here anyway,” added Borelli. “This is what comes of legislation that is introduced and passed with little to no input from the Legislature and the public.”

“START-UP NY” came under heavy fire for giving tax relief to a small slice of potential employers in the state. Eligible businesses had to operate in or near SUNY campuses or other state-owned assets to be approved at a later date by the administration. Longstanding businesses could not benefit from the program. Based on June 2013 data from the U.S. Bureau of Labor Statistics, New York State is tied for 17th place with Pennsylvania for the highest unemployment rate among the 50 states and the District of Columbia. The figure stands at 7.5%.

“This only adds insult to injury to the many businesses crying out for relief from some of the worst tax and regulatory burdens in the nation,” continued Borelli. “In addition to receiving no benefits, they also get to foot the bill for a program that so far only promises to burn a hole in their pockets.”

Assemblyman Joe Borelli represents the South Shore-based 62nd Assembly District and is the Ranking Minority Member on the Cities Committee. He also serves on the Transportation, Banks, Health, and Mental Health Committees.

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