Assemblyman William F. Boyland Jr. Helps Pass State Budget With Vital Funding That Will Create Jobs and Promote a More Business-Friendly Environment

March 28, 2013

Assemblyman William F. Boyland Jr. 55th District announced he helped pass a 2013-14 state budget that focuses on creating jobs and promoting a more business-friendly environment to improve the state’s economy (A.3004-E, A.3008-D).

“Many of the important programs we’re funding in this year’s budget focus on creating good-paying jobs for families in the district,” Assemblyman William F. Boyland Jr. said. “These investments will spur job growth as our economy continues to recover and create a more business-friendly environment, once again highlighting that New York continues to be open for business.”

Transportation funding for infrastructure projects creates jobs

To promote job growth while rebuilding our crumbling infrastructure, the state budget includes $438.1 million for the Consolidated Local Street and Highway Improvement Program (CHIPs). This 21 percent increase is the first in five years and $75 million more than last year. It will be a welcome relief to local taxpayers and municipalities as well, noted Assemblyman William F. Boyland Jr. The budget also authorizes $39.7 million annually for the Marchiselli Highway Improvement Program.

“With the added benefit of creating good-paying jobs in the construction industry, increased CHIPs funding ensures that protecting the safety of New Yorkers remains a top priority,” Assemblyman Boyland said. “Roads maintained by local municipalities shoulder 87 percent of all travel in New York. We need to protect our families on the road and CHIPs puts the money directly where it’s needed most.”

In addition to the increased CHIPs funding, the budget includes $155 million to accelerate significant local and regional Department of Transportation (DOT) projects.

The budget provides $10 million for the Airport or Aviation State Program and the Airport Improvement and Revitalization program (AIR 99). The cap on grants and loans as part of the AIR 99 program was also increased from $300,000 to $1 million.

In an effort to improve railways across New York, the budget also includes $10 million for freight-rail capital projects. The DOT has committed an additional $16 million to support non-MTA downstate suburban and upstate public transportation capital investments, and $5 million was also included in the budget to improve non-MTA transit systems across the state.

The 2013-14 state budget also includes $7 million to create “Market NY,” a new tourism marketing program, and $2 million for military base retention efforts.

Protecting unemployed workers and reducing costs for businesses

The 2013-14 budget gradually increases the weekly unemployment benefit from $405 per week to 50 percent of the state’s average weekly wage by Oct. 1, 2026.

“With our economy still making its way out of the worst recession since the Great Depression, protecting workers and those who can’t find work is incredibly important,” Assemblyman Boyland said.

Additionally, the budget adopts the federal expansion of the Shared Work Program, which helps prevent employees from losing their jobs by providing employers with an alternative to laying off workers, Assemblyman Boyland noted.

To save businesses money and further jumpstart our economy, the budget reforms the Unemployment Insurance (UI) system to make it solvent in 2016. Employers will immediately save $446.5 million annually and once the UI fund is solvent, there will be three additional benefits to businesses:

• UI Interest Assessment – businesses will no longer pay interest on the federal UI loan;
• 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.

“The Assembly Majority is continuing its commitment to lower costs for businesses and spur job growth,” Assemblyman Boyland said. “We’ll continue looking for ways to free up money so businesses can hire.”

New small business support initiatives

The budget establishes the New York State Innovation Venture Capital Fund and the New York State Business Incubator and Innovation Hot Spot Support Act, which are programs designed to assist the start-up and growth of newly established business and technology companies in the state.

The $50 million Innovation Venture Capital Fund will provide early-stage seed money for investments in new businesses and promote the transition from research and development to commercialization. The Business Incubator and Innovation Hot Spot Support Act will assist the state’s existing economic development incubator programs, providing fledgling companies with access to such support services as technical, marketing, and entrepreneurial training. Companies operating within an Innovation Hot Spot also will be eligible for tax exemptions.

The budget includes $1 million to support the Minority- and Women-owned Business Development Lending Program, a $365,000 increase from the executive budget proposal. The budget also authorizes bridge loans for procurement purposes from the Small Business Revolving Loan Fund to help minority- and women-owned business (MWBEs) and other small businesses access capital at affordable rates.

The budget creates a new Business Incubator and Innovation Hot Spot program that will designate high-tech business incubators and 10 “hot spots” to encourage private-sector growth with higher education institutions. Under the act, MWBEs will be a factor in considering whether an entity will be designated as a business incubator or innovation hot spot. The program will provide tax exemptions to selected businesses in hot spots and operating grants to eligible business incubators and innovation hot spots. The Excelsior Linked Deposit program is also expanded so small businesses in high-technology industries can participate.

“Over the past few years, New York State has secured its spot as a great place to do business, and the 2013-14 budget takes another step in the right direction,” Assemblyman Boyland said. “Our small businesses and minority- and women-owned businesses are vital assets to our districts economy. The Assembly Majority is committed to keeping them up and running and encouraging more to open their doors right here in New York.”

Funding for agricultural programs

The 2013-14 budget restores funding to the following programs:

• Farm Viability Institute: $1.1 million (for a total of $1.5 million);
• New York Wine and Grape Foundation: $287,000 (for a total of $1 million);
• Maple Producers Association: $125,000; and
• Tractor Rollover Protection Program: $100,000.

The New York State Apple Growers Association will receive an increase of $794,000, for a total of $1 million to help overcome last year’s poor growing season, Assemblyman Boyland noted.

“Agriculture is a key component to our economy in New York, particularly in the upstate regions,” Assemblyman Boyland said. “Many of our farmers, especially apple growers, were hit hard by severe weather last year and could potentially lose their markets to other states. This funding will help them recover, create jobs and help continue to produce the products our state is known for.”

Creating jobs through NYSUNY 2020/NYCUNY 2020

The 2013-14 state budget contains $55 million in capital funding for a third round of NYSUNY 2020 Challenge Grants. An additional $55 million will be allocated to create a corresponding NYCUNY 2020 program to improve infrastructure and create jobs at CUNY campuses.

“Through the collaboration of our colleges and local businesses, the NYSUNY 2020 program has been successful in spurring innovation and creating jobs,” Assemblyman Boyland said. “A third round of grants and the creation of NYCUNY 2020 will build on the success we’ve already established.”

Offering tax credits that spur hiring

The 2013-14 state budget includes tax credits to boost employment among veterans, many of whom are suffering from joblessness. A newly established veterans’ tax credit for businesses that hire veterans will be worth 10 percent of the wages paid to a qualified veteran during the first full year of employment or 15 percent of the wages if the veteran is disabled during taxable years 2015 and 2016.

“We have an obligation to help take care of the veterans who honorably served our country,” Assemblyman Boyland said. “Veterans are among the groups hardest hit by unemployment. These tax credits will help them get back to work.”

The 2013-2014 state budget will also renew the inner-city youth employment program, a $24 million tax credit over four years for employers who hire unemployed youth 16 to 24 years of age who reside in a city of more than 55,000 or a town of 480,000.

The program and tax credit will be available to employers in the clean energy, healthcare, advanced manufacturing and conservation industries. Eligible employers will receive up to $4,000 per employee if they retain the workers for an entire year. The program will be extended through 2017.

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