The unveiling of Governor Cuomo’s 2011-12 Executive Budget proposal is the starting point of a two month dialogue on New York’s fiscal future. The last few years have been trying, leaving a great feeling of economic uncertainty, all while state finances became increasingly troubled. Now is the time to set New York’s finances and economy straight.
The truth is that our state is in transition. New York’s once vast empire of enterprising small businesses and manufacturers has been displaced by great institutionalized government spending. Big government has only created a dangerous dependence on public spending, which has ballooned into a $10 billion current year budget deficit.
The governor recognizes that for the state to be healthy and vibrant economically, budgetary policy must foster private-sector job growth, and as the ranking Minority member on the Assembly Committee on Economic Development, I have to say he is right on target. The executive budget proposal to right size and restructure state government, in conjunction with targeted investments in small business and innovative development, will put the state back on track.
I commend the efforts made to consolidate agencies with overlapping services and missions that could create nearly $102.4 million in savings. It’s critical that New York maximize the use of every dollar. I am particularly interested in the plan to consolidate the state Foundation for Science, Technology and Innovation, which helps keep New York on the forefront of emerging technologies and research ingenuity and the Empire State Development Corporation, which provides tools and resources to attract and support businesses. Such a merger would help to focus resources and talent on the very important task of revitalizing our economy and getting the nearly 800,000 New Yorkers back to work.
Furthermore, the budget proposal empowers 10 newly-created Regional Economic Development councils to allocate $200 million in already approved capital funding and tax credits from last year’s Excelsior Jobs Program. These councils will be critical in efficiently allocating badly needed economic development funds and will be better attuned to our local needs than an Albany centralized organization.
I’m encouraged by enhancements to the Excelsior Jobs Program, which will help New York become the competitive economic leader it once was. Increasing the Research and Development Tax Credit, doubling the benefit period to 10 years, and linking real property tax credits to capital improvements are critical steps in getting people back to work in good-paying jobs.
I am hopeful for the future of our state. Now, more than ever, New York needs wise fiscal restraint which prioritizes supporting private-sector growth rather than increase bureaucracy. As I study the budget, I will keep you abreast of new developments and how state fiscal policy will affect you.
As always, if you have any questions or comments about our local economy or any other state issue, please don’t hesitate to contact me at either my Johnstown office at (518) 762-6486, or my Herkimer office at (315) 866-1632.