New York
Farm Bureau_®

 Senate Majority Leader Joseph L. Bruno and members of the Senate Majority Conference today unveiled the Upstate Now agenda, a comprehensive job creation and economic growth plan that will transform and revitalize the upstate economy, generate billions of dollars in new investment, and create thousands of new jobs for New Yorkers.  

The 10-point plan would invest a total of more than $3.7 billion into economic development initiatives over the next three years, including new tax relief and incentives, new and existing capital investments and private sector matching funds.  More than $2 billion would be invested in the first year of the program.

The Senate's comprehensive plan will: reduce taxes, energy and health care costs for employers; provide upstate with a 21st century economic infrastructure; strengthen small businesses, manufacturing, agriculture, tourism and other key industries throughout the State; make upstate an international leader in new and emerging technologies; revitalize downtowns and local communities throughout the region; support clean, renewable energy initiatives; strengthen our workforce; and enact sweeping reforms to make the upstate region more business-friendly and economically competitive.    

"Revitalizing the upstate economy and creating new economic opportunities for young New Yorkers is a top priority for the Senate Majority," Senator Bruno said.  "With the launch of our Upstate Now agenda, we are advancing a comprehensive, strategic plan that will strengthen the state's economy, particularly upstate, create thousands of new jobs and generate tremendous new investments in communities all across our State.  I'm proud that the Senate's Upstate Now plan has the support of business leaders and organizations from across the state."

"Our Upstate Now agenda is not simply the best plan to revitalize our state's economy, it is the only plan to be advanced in Albany this year," Senator Bruno said. "After hearing a great deal of rhetoric about the upstate economy during the campaign season, business leaders and other concerned parties have rightly asked why the issue has fallen off Albany's radar screen.  The Upstate Now plan sends a clear message that the state's economy, and upstate in particular, is a top priority for the Senate Majority, and we will be fighting hard to ensure that this plan is enacted."

"There is no more appropriate title for this agenda than Upstate Now," said Senator Jim Alesi (R-Perinton), Chair of the Senate Committee on Commerce, Economic Development and Small Business.  "The upstate economy is in desperate need of revitalization and our plan will greatly improve the economic picture for upstate residents.  Lowering taxes, providing affordable healthcare plans for small businesses, investing in new technology and reducing energy costs will not only attract new businesses to our region, but allow businesses currently here to retain their employees and pay them a good wage.  The time to act on this plan is now so cities like Utica, Syracuse, Buffalo and my home area of Rochester can begin to enhance their quality of life and foster economic growth."

The Senate's Upstate Now  plan includes more than $2.6 billion in tax cuts and incentives, when fully implemented in three years; as well as $300 million in existing venture capital funds that will generate an additional $300 million in private sector matching funds;  $300 million in capital monies originally proposed in the Executive Budget, but not included in the adopted budget; $155 million in new capital investment funds; and $58 million in new economic development program investments.

From tax cuts, to the JOBS NOW and Pipeline for Jobs initiatives, to the Jobs 2000 Plan (J2K), Gen*NY*sis, and Centers of Excellence programs, the Senate Majority has always been the principal driving force in Albany behind efforts to promote economic growth and job creation for New Yorkers.  The Upstate Now strategic plan will build on this legacy with a broad, comprehensive and integrated 10-point plan:

1.  Reducing Taxes for Small Businesses, Manufacturers and Key Industries
2.  Building and Investing in a 21st Century Infrastructure for the Upstate Economy
3.  Making Upstate an International Powerhouse in New and Emerging Technologies
4.  Reducing Energy Costs for Employers and Promote Energy Independence
5.  Reducing Health Care Costs for Small Businesses to Insure More Families
6.  Creating Thriving Main Streets
7.  Winning the Global Competition for Manufacturing Plants  
8.  Preparing the Finest Workforce in the Nation
9.  Providing Around the Clock Access to the State's Economic Development Programs
10. Marketing Upstate's Outstanding Recreational, Cultural and Tourism Opportunities

Business Council President Kenneth Adams said, "Senator Bruno and his colleagues in the Senate majority have crafted a broad package of proposals that would benefit the Upstate economy and all of New York State. It's particularly encouraging to see the Senate emphasize the need to help Upstate with proposals that address both the core business-climate issues that hurt all employers in all sectors across the state as well as the need for investment in technology and innovation, which will be central to New York's future economic success."

Randy Wolken, President of MACNY - The Manufacturers Association of Central New York, said: "The Senate Majority's plan to win major manufacturing investments and eliminate business taxes on manufacturers are two crucial steps to growing upstate's economy.  Lowering important business costs such as energy and health care while investing in tomorrow's infrastructure and workforce will help position Upstate New York for significant growth and opportunity."

Darlene Kerr, President of the Greater Syracuse Chamber of Commerce said: "The Upstate Now plan is a welcome initiative focusing on what we need to ignite the potential of the Upstate economy.  For our members and our region, in particular, property tax relief for small businesses, enhancing the commercialization of our college and university research, supporting new and emerging technologies, affordable health insurance for small businesses and capitalization on our tourism assets will translate into real jobs and real economic expansion."

Andrew Rutnick, President and CEO of the Buffalo-Niagara Partnership said: "This plan, incorporating a number of the specific reform items in our 2007 Unshackle Upstate agenda, entails a thoughtful and comprehensive approach to stimulating private sector investment and jobs upstate.  The more of it that's enacted, the greater the economic benefit will be for our communities."

James R. Sherin, President and CEO of the Retail Council of New York State said: "The Senate's aggressive and forward-looking package addresses the urgent needs of every sector of the upstate economy," said.  "A better tax environment for businesses and for homeowners means better conditions for retailers small and large, with new stores opening on Main Street and more job opportunities across the board."

The UPSTATE NOW  Economic Development Plan (Specific Components)

1. Reducing Taxes for Small Businesses, Manufacturers and Key Industries: Taxes play a key role in helping companies decide where to locate, invest and create new jobs. From eliminating income and corporate franchise taxes on upstate's manufacturers, to further reducing corporate tax rates, to enacting much needed property tax relief for small businesses, the Senate's plan will help fuel economic growth in upstate for years to come.  The Senate will also pursue efforts to simplify New York's complex tax code and to reform the Wick's Law.
 
Mike Elmendorf, State Director of the National Federation of Independent Business, New York's leading small business advocacy organization said: "Small businesses in New York State--the backbone of our state's economy--struggle to survive as they contend with among the highest taxes, health care and energy costs in the nation.  The Senate Majority is to be commended for advancing this comprehensive proposal to address these critical issues and strengthen the upstate economy.  This package is not only the right one for small business in New York, but it is also the only significant proposal to help small business being advanced in Albany as the legislative session draws to a close.  NFIB looks forward to working with the Senate Majority, longtime allies of small business, and all our supporters in the legislature to enact this proposal."

"Many of the state's challenges can be traced to an uncompetitive business environment," said John Richardson, Director of Public Affairs for Eastman Kodak Company. "Incentives to drive increased investment in upstate New York are critical."

Dennis M. Mullen, President and CEO of Greater Rochester Enterprise, an economic development organization dedicated to revitalizing the Greater Rochester, NY Region's economy, said: "We applaud the New York State Senate Majority's comprehensive Upstate Now plan and specifically the initiatives that support maximizing the utilization of numerous unique Upstate New York assets. Enhancing the water infrastructure further builds on our region's competitive advantage -- availability of fresh water -- which is critical to agribusiness, food and beverage manufacturers. In addition, we support any proposal that continues to highlight the Upstate Region as a national leader in alternative energy. Emerging business development is also a key feature of the plan. The $100 million earmarked  to support regional partnerships for strategic investments is critical for cultivating the commercialization of new technologies emerging from our region's world-class universities and ensuring these new discoveries are manufactured here."

Specific elements of the plan's first component include:

> Eliminating Business Taxes on Manufacturing in New York State (This would provide $60 million in tax relief, growing to nearly $500 million in relief when fully implemented).
> Providing property tax rebates for small businesses that employ fewer than 20 employees. (Under the Senate's plan, a new Small Business STAR program would be established.  It would deliver direct rebate checks, averaging $700, to small businesses that pay school taxes and employ less than 20 people.  This measure would provide $150 million in property tax relief).
> Reducing the Corporate Franchise Tax Rate from 7.1 percent to 6.85 percent (This would provide $35 million in tax relief, growing to $94 million when fully implemented).  
> Reduce other taxes on small businesses, aviation and marine fuel.
> Encouraging the Federal Government to stop taxing New York's economic development incentives (Currently, federal law requires New York employers to pay federal taxes on the capital and equipment investments that the State makes to lure major employers like Advanced Micro Devices (AMD) and IBM.  This places New York at a tremendous disadvantage with foreign competitors when it comes to attracting major new investments in manufacturing and/or technology facilities).
> Capitalize on unused investment tax credits to provide investment in upstate.    

2.  Building and Investing in a 21st Century Infrastructure for the Upstate Economy: Upstate Now calls for hundreds of millions of dollars in targeted investments in upstate's infrastructure. Projects include establishing high-speed trains in key upstate corridors, expanding our roads, water lines and technology infrastructure to support job growth.  The plan will also create commerce and economic growth zones around regional airports to promote location of new businesses.

"Improving our roads and bridges is key to our economic success -  from Binghamton to Buffalo to the North County to Long Island," said Senator Tom Libous (R-I-C: Binghamton), Chair of the Transportation Committee.  "And enhancing air and rail service is also vital to creating a better climate for business growth to generate new jobs."

Specific elements of the plan's second component include:

> $300 million in capital to support key economic development and emerging technology projects.
> Building high-speed passenger trains to interconnect New York's cities.
> Rebuilding roads and bridges with a Highway and Bridge Capital Plan.
> Supporting the infrastructure to provide broadband access across the State.
> Reviving our water and sewer line infrastructure to support growth.
> Investing in the 21st Century Food Laboratory in Geneva and the State Data Center in Utica.
> Creating new commerce and economic growth zones around regional airports.

3.  Making Upstate an International Powerhouse in New and Emerging Technologies: The Senate is advancing new incentives to encourage emerging technology companies that already do research and development in New York, to take that next step and actually manufacture their products in the Empire State.  The plan will also seek to more fully integrate the groundbreaking research taking place at New York's outstanding colleges and universities, with the local and regional private-sector economies across upstate. The plan makes extensive investments to support expansion and assist in the retention of agribusiness and agriculturally related jobs in the State. Building upon the success of the J2K Program, $100 million in critical capital funding will be distributed through regional partnerships enacted in 2006.

Senator Michael Nozzolio said,  "Through our investments in high-tech industrial development and utilization of the resources provided by our world-class universities, such as Cornell and the University of Rochester, we are positioning New York to become a leader in the economy of the 21st century.  The aggressive agenda outlined today will create more good-paying jobs and revitalize New York's economy."
 F. Michael Tucker, President and CEO of the Center for Economic Growth, said: "This $100 million investment in regional high technology and emerging technology companies and infrastructure by the New York State Senate demonstrates its continued leadership in supporting dynamic, innovative growth across the State.  It also sends a clear message about the ongoing efforts to improve New York's competitiveness and business climate as we create jobs and compete for global investment."

Lyn Taylor, president of the Albany-Colonie Regional Chamber of Commerce said: "We're thrilled that the New York state Senate has formulated a plan focusing on the needs of businesses. These actions will improve the region's business climate, which is vital to the continued growth of Tech Valley."
 

Specific elements of the plan's third component include:

> Attracting major manufacturers with refundable tax credits, such as those that were successfully utilized to secure the AMD investment in the Capital Region.
> $100 million for regional partnerships for strategic investments.
> Taking advantage of the existing $300 million for regional venture funds to spur new investment and job creation.
> Investing in Agribusiness and Agricultural Enterprise Applied Research and Technology.
> Promoting and encouraging research produced in New York.
> Authorizing a sales tax exemption for businesses in academic incubators.
> Providing commercialization assistance grants.
> Increasing the Qualified Emerging Technology Company Credit.
> Creating Incentives for Bioscience and Nanoscience commercialization.
> Supporting new capital investments in Upstate's Outstanding Emerging Technology Centers.
> Reconfigure Economic Development zones to address rural needs.

"Technological breakthroughs and opportunities in agriculture and agribusiness can become the powerhouse to revive the upstate economy," Senator Cathy Young (R,I,C-Olean) said.

New York Farm Bureau President John Lincoln said: "The Senate's continued commitment to upstate economic development will greatly benefit the thousands of our family farmers who are the backbone of the rural economy. The Senate proved their dedication to our farmers earlier this year by fighting for a $30 million investment in the state's dairy industry.  New York Farm Bureau has long thought the key to revitalizing the upstate economy is through agriculture, and we greatly appreciate the Senate's dedication to making sure New York 's family farmers thrive."

4.  Reducing Energy Costs for Employers and Promote Energy Independence: New York's small business leaders have consistently cited high energy costs as a major obstacle to future growth, profitability and new job creation.  To address this problem, Upstate Now advances a tax credit program that would help eligible small businesses afford the rising cost of energy.  In addition the upstate plan will ensure that New York will have renewable energy for the future.  Encouraging renewable energy products to sustain future economic growth without being held hostage to a petroleum based economy.

"The Upstate Now plan addresses both the need for the development of renewable energy sources and relief for employers from rising energy costs," said Senator Jim Wright, Chairman of the Senate Committee on Energy and Telecommunications. "While it is important that we support new energy technology, we must also provide relief to small businesses through energy tax credits and continue to offer low cost power to New York's manufacturers through the extension of the Power for Jobs program."

Specific components of the energy package include the following:

> Promoting energy independence and clean alternative energy.
> Providing Energy Cost Assistance to Small Businesses (This initiative will provide a    $350 million refundable energy tax credit to help 386,000 small businesses).
> Providing Solar and Fuel Cell Manufacturer Tax Credits.
> Offering Cellulosic Ethanol Production Tax Credit.
> Offering Alternative Energy Use Tax Credit.
> Eliminating the Petroleum Business Tax on Nonresidential Heating Fuel.
> Providing $300 million for investments in clean, renewable energy research and     commercialization, including clean coal and bio-fuels.
> Extend low-cost power programs, including Power for Jobs.
> Reduce property taxes for land used for Biofeedstock Production.

5 .  Reducing Health Care Costs for Small Businesses to Insure More Families: The skyrocketing cost of health insurance forces many businesses to face the difficult decision of shifting more of the cost of coverage to employees or dropping coverage entirely.  The Senate's plan would significantly reduce the number of uninsured New Yorkers through a combination of tax advantages, government initiatives and commercial insurance market reforms that would bring health insurance within the means of all small businesses and every New Yorker.

"Small business owners are being hammered by the cost of  health insurance for their employees.  When faced with big premium hikes year after year, employers are often forced to shift more of the cost to employees or to terminate benefits altogether," Senator James L. Seward (R-C-I, Oneonta), said.  "That's why the senate is offering a common sense proposal that will make health insurance more affordable and reduce the number of uninsured workers in the state.  Helping our small businesses with a critical bottom line expense like health insurance will help them to grow and create jobs in the state."

This component of the Upstate Now plan includes the following measures:

> Enabling businesses to Purchase Healthy-NY at the unsubsidized cost.
> Expanding Healthy-NY for Individuals, from 208 percent to 250 percent of the Federal Poverty Level.
> Providing a Tax Credit for Small Business Health Insurance Costs.
> Exempting Health Savings Accounts from State health Insurance Mandates (Freedom Policies).

6.  Creating Thriving Main Streets: While the downstate metropolitan region continues to boom, far too many of our upstate communities continue to face real challenges.  The Upstate Now strategic plan addresses this trend by making new investments in programs to revitalize our communities, eliminate blight, rehabilitate old buildings and clean up environmental hazards that inhibit new development.

"To help restore our State to its former prominence, we have taken a lesson from its past by recognizing the importance of our cities as centers for economic growth," said Senator John A. DeFrancisco. "Our proposal calls for restoring cities of all sizes that have been neglected far too long. Targeted investments in areas such as downtown revitalization, renewal of aging housing stock and brownfield remediation will allow urban centers to prosper once again by making them business friendly, attractive to people who want to live in a city and enjoy its many advantages, and once again be a magnet for retail customers who live in areas surrounding cities."

The "Thriving Main Streets" component of Upstate Now includes the following:

> Cleaning-up brownfields to encourage development.
> Revitalizing downtowns.
> Clearing, renovating and re-using obsolete manufacturing facilities.
> Creating Community Renewal Zones.
> Enacting an Asbestos Remediation Credit.
> Better promoting upstate's historical sites, cultural heritage, arts, and
recreational assets.

7. Winning the Global Competition for Manufacturing Plants: Over the past several years, major manufacturing facilities have located in the U.S.  New York must succeed in attracting huge new manufacturing investments.  The Senate Majority will aggressively pursue initiatives - from strategic investments, and tax incentive packages - to ensure the Empire State is fully prepared to compete and win major manufacturing investments.

This component of the Upstate Now plan includes the following measures:
 

> Targeting global manufacturers ready to locate new manufacturing facilities in
the U.S.
> Developing Regional Incentive Packages to aggressively lure major manufacturers.
> Creating a minimum target for new manufacturing jobs.
> Attracting major manufacturers with refundable tax credits.

8.   Preparing the Finest Workforce in the Nation: The Upstate Now agenda will seek to realign the State's workforce development programs to ensure that they are more effective in meeting dual needs of workers and employers. And while reforming and improving our workforce training programs, the Upstate Now initiative will also provide new incentives to encourage young New Yorkers to live, learn and work in our State.  

"The three things we need in Upstate New York are jobs, jobs, and jobs," Senator George Maziarz (R-C, Newfane), Chairman of the Senate Labor Committee, said.  "The Senate's comprehensive plan will create good jobs and provide the training necessary for upstate's workforce to reach its potential."

This component of the Upstate Now plan includes the following measures:

> Expanding opportunities for remote learning through the SUNY Learning Network.
Creating an Interactive Online Empire Education One-Stop Gateway to training
and education.
> Supporting experience-based education that prepares students for the workplace.
> Supporting development of a network of Community College Technology
Training Centers.
> Creating Regional High Tech High Schools.
> Helping employers that invest in training for employees or internships for College
Students. 
> Supporting statewide rollout of the New Work Readiness Certificate.
> Enhancing funding for Individual Training Accounts (ITA'S).

9. Establish the Upstate Now One-Stop Business Start-Up and Support Program: Our nation's economic strength was built by industrious Americans who had the courage, foresight and determination to launch their own business.  Upstate Now includes a wide array of new initiatives to help make doing business in New York easier, and to promote entrepreneurship, encourage investment and provide support for starting and growing a business. Upstate Now will provide an online one-stop location for information, business development, and permitting, as well as a new "Business Hotline" staffed 7 days per week.

This component of the Upstate Now plan includes the following measures:

> Creating a new "5-1-1" Hotline for Small Businesses.
> Establishing a "Virtual Business Toolbox" containing problem-solving tools.
> Establishing a Virtual Business Incubation Program for small and
start-up companies.
> Creating an online clearinghouse of forms and regulations in plain language.
> Ensuring adequate sources of start-up funds to finance new businesses.
> Establishing Empire Entrepreneur Accounts to encourage savings to start a
business, including revolving loan funds for industries such as agribusiness.
> Put upstate economic development czar on equal footing and authority
with downstate ESD Chair.

The Upstate Now plan will also build upon Governor Spitzer's recent decision to appoint an "Upstate Economic Czar".  Under current State law, this post is largely ceremonial or symbolic, and is not vested with any real decision making power or authority within the ESD power structure.  

By changing State law to place the position on a truly equal footing with the "downstate" ESD Chair, and by ensuring equal voting and decision making authority between the two "co-chairs," we can better ensure that the unique challenges and needs of the Upstate economy are given the proper time, attention and resources they deserve.  In effect, this change would simply make certain that both Upstate and Downstate have an equal seat at the table, and are treated with equal consideration when it comes to ESD operations, funding decisions, and economic policy making.

Chris Koetzle, Vice President of Support Services Alliance said: "We want to thank Senate Majority Leader Bruno and the members of the Senate Majority Conference for leading the fight to help small businesses and moving this great package of small business legislation. We are particularly thankful for the various bills designed to simplify the way that State government does business with small business."

10.  Marketing Upstate's Outstanding Recreational, Cultural and Tourism Opportunities: Upstate Now will enhance local coordination of marketing New York's regionally significant destinations and spotlight the State's historic sites and agricultural tourist attractions. Upstate Now will create a comprehensive statewide system of accessible and safe multiuse thematic trails for every age.

"Conservative estimates show that for every $1 invested in tourism promotion, $3 are returned to the economy," said Senator Mary Lou Rath (R-C-I, Williamsville).  "In some targeted cases in Western New York, a 20-1 return on economic investment has been demonstrated.  Few industries can make this claim.  This is why investing in Upstate, which is the primary goal of Upstate Now, is a critical initiative for the future of New York State."

Specific components of this portion of the Upstate Now plan include:

> Enhancing Local Coordination and Marketing for Regionally-Significant Tourism Destinations, such as the Saratoga Springs mineral baths and thoroughbred racing, Finger Lakes wineries, and Adirondack winter sports opportunities.    
> Promoting Upstate's Unparalleled Historic Sites and Cultural Heritage.
> Promoting Agri-Tourism including fresh markets, wine trails and
associated industries.
> Elevate the I Love New York program to a cabinet level position.

To fully tap the economic potential of tourism, particularly in the Upstate Region, the Senate Majority will propose elevating the I Love New York program to new prominence by removing it from under the auspices of Empire State Development. The plan will not establish a new bureaucracy,  but calls for making the Director of the I Love New York Program a cabinet level position that reports directly to the Governor, rather than to the Chair of ESDC.

"Let's not just talk about the challenges facing the upstate economy, let's get to work on turning this region's economy around," said Senator George H. Winner, Jr. (R-C, Elmira). "Our 'Upstate Now' agenda can be the bridge to that turnaround.  It moves us from talking about an upstate economic renewal to getting to work on it.  That's where we need to go now.  We need to get working at it."

"More than any other issue, my constituents talk to me about needing good, steady jobs," Senator Hugh Farley (R-C, Schenectady) said.  "There is no single solution to retaining and creating good jobs in our communities.  That is why the Senate's comprehensive plan is so important.  It builds on our strengths -- such as our innovative small businesses and our world-class educational institutions -- and corrects our weaknesses -- by cutting the burdens of taxes, health insurance, and energy costs."

"The American dream is to have a good paying job and career opportunities.  This is especially true for the Rochester region," Senator Joseph Robach (R-C-I-WF, Rochester) said.  "The Senate Majority plan will help strengthen our local economies, helping to make this dream come true for the people of New York."

"We can no longer ignore the problems of the Upstate Economy. Our local communities and businesses are desperate for real, substantive change that will reinvigorate the flow of commerce," Senator Joseph A. Griffo (R,C-47) said. "This package does two things, it offers the type of incentives that will encourage development while at the same time removing obstacles that make doing business difficult."

"For Upstate New York, it's as much about business retention and expansion as it is about business attraction," said Senator William Larkin (R-C, Cornwall-On-Hudson). "We are working hard on creating  incentives to welcome new investment and jobs to the upstate region.  This plan specifically targets workforce skills, the regulatory environment and technology opportunities that will directly assist our long-term goals of strengthening the economy and encouraging job growth.  It will be a vital investment in the quality of life in upstate New York."

"The entire state economy benefits when all areas of the state have favorable business climates and strong local economies that create jobs and generate revenue,"  said Senator Owen H. Johnson, Chairman of the Senate Finance Committee.  "The Senate's plan would go a long way toward ensuring that all areas of the state thrive."

"Our upstate economy has been hit hard in recent years due to rising taxes and health and energy costs, and the need for significant investment in our infrastructure," said Senator Steve Saland, (R,C,I Poughkeepsie).  "The Upstate Now agenda being advanced by the Senate Majority addresses issues which upstate residents and businesses have identified as being integral to reviving the upstate economy and creating thousands of jobs for New Yorkers.  This 10-point plan is a breath of fresh air that will benefit every household and business upstate."

"Helping businesses succeed, whether it's a one-person enterprise or a large company employing hundreds of people, is much more than just about jobs," said Senator Betty Little (R,C,I-Queensury).  "It's about creating hope and opportunity.  It's about giving families a reason to stay in upstate.  Our comprehensive plan would foster an economic environment in which entrepreneurs have the confidence to invest in their dreams."

"The Upstate economy must be our top priority--period," said Senator Dale M. Volker.  "We must not continue the rhetoric of saying we must improve the upstate New York economy.  We are at a critical juncture and it is time to enact proactive business reforms that make our region competitive and grow an economic environment conducive to job creation, job retention and enhanced economic opportunities for our residents.  The Senate's proposal does just that and will ensure that businesses can look at our region and see that we are serious about changing the way we attract businesses and provide them with the tools and resources that make our region an enviable place to do business."