Silver, Schimminger Announce Major Economic Development Legislation To Boost The Struggling Economies Of NY's Upstate Region And Urban Communities

Initiative Establishes High-Tech Job Training Programs, Enhances Small Business Revolving Loan Funds, Helps Communities Restore Dilapidated Properties, Continues Low-Cost Power For Jobs Program

Assembly Speaker Sheldon Silver and Assemblyman Robin Schimminger, chair of the Economic Development, Job Creation, Commerce and Industry Committee, announced the passage of a 22-bill package to stimulate job growth and inject new hope in anemic economies of the Upstate region and other struggling localities.

"Our plan aims to enhance the business climate and create high-paying jobs for New York's working families through investments in all sectors of the economy, from small businesses and manufacturing companies to emerging high-tech industries," said Silver. "This initiative, along with our continuation of the state's low-cost power programs, helps communities that are desperately trying to improve their economies and create jobs for their residents."

"This plan is a strategic approach to economic development that recognizes the unique resources and key industries within each region of the state, with a special emphasis on Upstate New York and other struggling communities. The bottom line is creating jobs - good jobs - for working New Yorkers and for young people, in particular, so they won't be forced to move elsewhere to realize their dreams," said Robin Schimminger.

Empire Zone Reforms

A key bill (A.9125) of the Assembly legislative package would further strengthen the state's Empire Zone program by building on reforms enacted in 2005. The new provisions would authorize a review of the program to determine whether businesses receiving benefits are to be subjected to a cost-benefit test. This will ensure that the companies participating in the program provide the level of jobs and investments that is appropriate to the tax credits being awarded by the state.

"These additional Empire Zone reforms will make it easier for the state to determine whether economic commitments were fulfilled. Public funds were invested for the sole purpose of creating jobs by attracting and growing businesses in areas with downtrodden economies, and the state has the obligation to the taxpayers who fund those benefits to examine whether businesses receiving zone benefits lived up to their end of the bargain," added Silver.

The measure also would approve the re-test of businesses that reincorporated in order to receive Empire Zone grants and decertify those that used the program only to receive lucrative benefits without creating any new jobs. It would also limit the participation of corporations that provide professional services and retailers to economically distressed communities. It also would change the role of the local zone administration. Under this proposal, localities would no longer certify businesses but only recommend certification. This would require a public vote by the local zone administrative board, an important change in keeping with the Assembly's push for openness and transparency.

It also would establish the Direct Regional Investment for a Vibrant Economy (DRIVE) Fund, which would be funded through the savings the state would realize from these new zone reforms. These funds would be invested in two new entities, the Financial Service New York Fund, the Technology Employment Community Hub program and other initiatives aimed at helping economically distressed communities.

A separate bill (A.9132) would establish the Financial Service New York Fund to provide incentives for the location of back-office facilities and operations of the financial industry within New York State, as well as funding to support infrastructure for resiliency and redundancy systems for the financial services market. A related bill (A.9136) would establish the Technology Employment Community Hubs (TECH) Program to make our community colleges the focal point of training to prepare New Yorkers for the workforce needs of emerging high-tech industries.

Another reform measure would provide additional financial assistance to Empire Zone administrators to help offset the cost of new responsibilities (A.9131).

Assembly RESTORE Program Receives Increased Funding

The Assembly's economic initiative (A.9128) would boost the $100 million in state funds for the RESTORE New York's Communities Initiative by providing an additional $50 million to help communities with poorly performing economies recover and restore abandoned, vacant and dilapidated properties for economic-development purposes. Another bill (A.9161) would require municipalities that receive RESTORE awards to give priority to minority and women contractors or locally-based contractors. It also would require contractors to first consider local residents for any job openings that are created.

Additional Assembly Job Package Legislation

Other highlights of the Assembly jobs creation and economic-development package include bills that would:

• create partnerships between community colleges and local business communities through contract courses that will be used to ensure job force training demands are met (A.9137);

• require Empire State Development (ESD) to follow-up on job creation projects within five years of an employer's receipt of financial assistance (A.9130);

• revitalize the Job Development Authority (JDA) to provide direct loans to businesses and support for infrastructure projects, such as telecommunications linkages and upgrades to spur Upstate economic growth (A.9126);

• provide assistance to community colleges through the State Skills Compact Course Program to help workers affected by downsizing, plant closings or relocation of regional employers to transition to other jobs (A.9133);

• assist small businesses in the marketing of their products throughout the world through the Export Trade Demonstration Project (A.9134);

• creates the Commercialization Assistance Fund, which allows the New York State Science and Technology Foundation to provide grants and invest in new companies that promote the commercialization of new technologies developed at New York state research institutions (A.390-A).

• authorizes the Job Development Authority to provide direct loans to support necessary infrastructure improvements and upgrades in areas such as telecommunications, pollution prevention and control, as well as energy efficiency (A.9127);

• provide seed funding to the Small Business Regional Revolving Loan Program and revive a dormant ESD Program by focusing on small businesses and micro-enterprises (A.9129); and

• authorize Certified Capital Companies (CAPCO) to leverage private-sector funds for investments in early-stage companies that are developing new products and services (A.9135).

To ensure that the state's economic development programs are working, the Assembly passed a bill to establish the Private Industry Review Council, which will review state economic development assistance programs and submit a report to the governor and Legislature. The legislation also requires that the state's economic development agencies develop and implement performance planning techniques which will be used to judge the utility and effectiveness of their programs (A.3135).

The Assembly's package also includes several pieces of legislation to provide start-up funding, loans and grants to businesses to commercialize new technologies and help them better compete in the rapidly changing global marketplace (A.8437, A.236, A.2297, A.4865).

In addition, an Assembly bill was introduced to provide tax credits to entrepreneurs and startup companies that bring technological advancements into the marketplace (A.2400). Another piece of legislation provides a variety of tax credits to new companies that create jobs as the result of the House's commercialization efforts (A.2404).

Power For Jobs Program Part Of Assembly Jobs Plan

The Assembly also has introduced legislation to renew the state's low-cost economic development power programs, including Power For Jobs, so that businesses throughout the state can remain competitive and maintain their employment levels.

The Assembly prefers its bill (A.8940) to extend these programs for three additional years thereby giving companies more certainty. Other legislation (A.9255/A.9254) would provide a one-year extender and have the New York Power Authority provide $30 million of financing for the low-cost power programs, thereby assuring businesses the Power for Jobs Program will continue for at least one year while negotiations continue in Albany for an agreement on a multiple-year, low-cost power program.