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Senate Democrats have approved a budget proposal that increases state spending by $1 billion, even as it cuts $1.4 billion in school spending, according to the Albany Business Journal.

The Senate budget -- which Republicans say they did not get time to review thoroughly, therefore voted against -- does not include a tax on soft drinks proposed by Gov. David Paterson, nor authorization for grocery stores to sell wine.

The proposed budget, which will need to be reconciled with an as-yet-unannounced Assembly budget, passed the Senate 32-29.

The two houses have until April 1 to agree on a budget.

Democrats say the increase in spending is still below the rate of inflation.

Sen. Mike Ranzenhofer released the following statement:

The Senate Democrats drafted their final budget resolution in secret, without any input from Republicans. They then released the resolution less than an hour before it was voted on. Only a budget resolution crafted in secret would produce such a bad deal for New Yorkers.

The Budget Resolution increases spending by $1.5 billion, expands welfare programs, and fails to restore the STAR rebate check program for all homeowners. Even worse, the resolution does nothing to help create private sector jobs. Instead, it only adds more government jobs by expanding welfare eligibility and increases public assistance payments again this year.

I will only support a budget which does not increase taxes and spending, delivers property tax relief to homeowners and enables the private sector to create jobs. This is the budget the people want. It’s a budget they deserve and the budget we must achieve.

New York Gov. David Paterson layed down the gauntlet today, submitting legislation that if passed will mandate limits to unrestrained government spending.  The governor's solution to excessive budgets is represented in two bills, both caps- one on spending, the other on property taxes.  Paterson described his frustration with the state's fiscal condition, spotlighting the $60 billion in structural deficit shadowing the next four years and the exorbitant property tax bills imposed to offset deficit spending.

The governor has proposed a Constitutional amendment to cap State spending.  He cited increased spending- starting with the 2002-03 Fiscal Year to 2007-08.  State operating funds spending grew from $52.8 billion to $77 billion, an average annual rate of 7.86 percent- approximately 5% greater than the annual inflation rate.  According to Paterson, "If my spending cap had been in place in 2002, New York's annual spending growth during that period would have averaged 2.7 percent and spending would have been $16.6 billion lower in 2008." 

Gov. Paterson's property tax cap differs from previous proposals.  Those proposals focused exclusively on capping school property taxes; his proposal would limit all local property tax growth.  "My proposed property tax cap," he explained, "would limit tax levy growth for all school districts, counties, cities, towns, villages, special districts and fire districts to four percent or 120 percent of the annual increase in the consumer price index, whichever is less."   His bill is based on recommendations of the Commission on Property Tax Relief, and resonates with public opposition to paying the highest local taxes in the nation – 78 percent above the national average.

Paterson reminded that the current budget deficit demands tough choices and spending cuts and responsibility to correct mismanagement and restrain spending.  The two bills, underscored by urgings for belt-tightening, force the hand of the Legislature.  No longer can the Senate and Assembly lunch with the special interests and ignore fiscal irresponsibility.  The whole state will be watching when the ayes and nays are voiced.  Nay-sayers will clearly be acting against the will of the people.

It's called a "cost recovery fee," and critics say it is damaging the ability of Industrial Development Agencies to create jobs.

The fee is a tax on operating revenue and is calculated before IDA expenses are deducted, according to this story Star-Gazette in Elmira.

Albany stuck the cost recovery fee in the 2009-10 budget as a line item and many IDAs were surprised to get bills for 5 percent of their revenue.

Assemblyman Steve Hawley introduced legislation this week to repeal the fee.

"To add these assessments during this difficult economy will only lead to further job losses across New York, especially in the Upstate region.," Hawley said in a press release. "Albany needs to wake up and understand that job creation for New Yorkers should be their number one priority, not more unfair taxes and fees.”

Albany expects the IDA fee to generate $5 million in revenue for the State.

Hawley's legislation, if passed, would repeal the fee and reimburse IDAs for any fees already paid.

IDAs are set up in regions throughout the state to spur business development through tax breaks and other incentives, as well as organizing and promoting development opportunities.

After State Sen. Mike Ranzenhofer's press conference today on his jobs bill, I spoke with him for a minute about his position on the governor's budget.

My question was, with all of the proposed spending cuts from Gov. David Paterson, why aren't Republicans falling more in line with supporting the governor's proposed budget. Here's what he said:

I certainly support the cuts the governor has talked about and I don't think there's been a lot of push back from Republicans. But what Republicans are concerned about is that...(if) you actually take a look at the budget -- last year it was $131 billion, this year it's $134 billion -- spending goes up this year. Not withstanding all the comments about cuts, cuts, cuts, he's actually spending $3 billion more this year in his proposed budget than what happened last year.

So that's where the criticism is, that you can't say one thing and then introduce a budget that actually increases spending by $3 billion. When you look at the fine print, that's what what it actually does. If there's been any opposition, that's where the opposition has been.

The criticism and the push back is not from the Democratic Party or the Republican Party. When you talk about his low poll numbers, these are the residents our our state who are saying this -- that's their reaction to what he has done because they've seen what he said and compared it to what he did. I mean last year, he introduced a budget that was not that bad to start off, but at the end of the day, the budget he finally adopted was $12 billion in new spending. So people are very leery about what he actually says and what actually gets enacted at the end of the budget session.

Letter via e-mail from Gov. Paterson's office

Earlier this week, the Legislature concluded an Extraordinary Session that I convened to address New York State’s worsening fiscal crisis. While the deficit reduction legislation passed by the Legislature provides needed savings, it falls well short of what is necessary to put New York on the road to fiscal and economic recovery.

Although the Legislature failed to join me to adequately address this crisis, we were able to achieve historic reforms that make government more accountable to taxpayers.

This week, we enacted the most important reform to our State’s pension system in more than 25 years, creating a new “Tier 5” that will substantially reduce the cost of government for the long-term. Public pensions have been allowed to grow at an unsustainable rate for a generation – with rising costs for local governments passed on to New Yorkers in ever-increasing property taxes. Thanks to this legislation, New York finally has a rational pension system that provides a secure retirement for hardworking public employees, while controlling costs for property taxpayers.

With Tier 5, we have achieved true structural reform that changes the way the system works. This is not a short-term stopgap. It is long-term reform that will help us operate government more efficiently, control costs, and address the property tax burden that is weighing down New York’s families and businesses.

Pension reform is just one piece of my agenda to change the way Albany works and reduce the property tax burden.

Also this week, we enacted landmark reform of our State’s public authorities. Public authorities are critical to promoting economic development, but for too long they have operated without sufficient transparency. The new law provides the tools needed to root out any waste, fraud or abuse in the system and to reduce costs.

The objective of these measures is simple: cuts costs and provide tax relief.

For too long, we have tolerated a culture in Albany that pays out special interests at the expense of New York’s taxpayers. Decades of overspending by Albany has left our State more vulnerable to the effects of a national recession. High unemployment has depleted the taxes the State depends on and the collapse of Wall Street has taken away New York’s greatest economic engine. This culture of overspending must end, which is why I convened the special session of the Legislature.

Unfortunately, the deficit reduction plan passed by the Legislature does not fully address our current-year budget deficit. It does not solve our severe cash-flow crunch. It does not address our long-term structural imbalance.

As Governor, I have a fundamental responsibility to keep our State solvent. Everyday New Yorkers know that they simply cannot spend money that they do not have, and our State government should understand that as well. For decades, Albany has refused to take the necessary steps to control spending, and has too often put off until tomorrow what should have been done yesterday. I will not allow this to continue on my watch.

Because certain legislators are unwilling to stand up and control spending for fear of the political consequences, I will move forward and implement the tough choices they were unwilling to make. In the coming days, I will direct the Division of the Budget to reduce State aid payments administratively in order to balance the budget and prevent New York from running out of cash.

I do not take this action lightly, but there is no other responsible path. If the Legislature will not do what is necessary, I will take the difficult actions that are needed to restore our State’s fiscal integrity.

Batavia's representative in Albany issued a statement this morning critical of a legislative plan to reduce spending because, he said, it hits Western New York harder than wasteful downstate interests.

Assemblyman Steve Hawley said he voted against the plan.

"Yes, tough choices need to be made, but once again the downstate leaders have attempted to balance their inflated spending on the backs of Western New Yorkers," Hawley said in a statement. "Just as I voted against the excessive 2009-10 State Budget, I also voted against this "reduction" plan that does nothing but further shift the burden of Albany's irresponsible spending onto the backs of hardworking Western New Yorkers."

(UPDATE: The Batavian's news partner, WBTA, spoke with Steve Hawley this morning. Listen (mp3).)

The Buffalo News reports that the deficit reduction plan leaves New York still in the hole about $1 billion. The News characterized the cuts as "politically painless."

"Putting off the pain" is how the Albany Times-Union described the so-called deficit reduction plan.

After railing against Gov. David Paterson's deficit reduction plan for more than a month and a half, legislative leaders essentially endorsed half of his proposed measures. However, they spared themselves the political risk of cutting aid to schools that the governor says most districts -- sitting on plenty of reserves -- could have afforded. Instead of going along with an admittedly tough, unpopular move that the governor could still make, lawmakers opted to use $391 million in federal stimulus money that the state was holding for next year.

In an editorial, the Buffalo News also raps the legislature for its inaction, and includes this gem:

Rare is the politician who seeks office based on the promise that he will spend less on your children’s school and your grandmother’s hospital. But New York spends so much more than any other state on both functions without making our offspring smarter or our elders healthier. Like other states, our schools and health care institutions will simply have to make do with less money.

The New York Times editorial says the blame for the state's spending problems rests primarily with the Senate.

The State Senate, on the other hand, has done little more than issue press releases. Senators are too busy eyeing next year’s elections, especially those lawmakers with the least political security — that is, a few suburban Democrats in dicey districts and all 30 of the Republicans, who want to regain the majority next year.

They don’t want to do anything unpleasant or really difficult like pare state expenses in midyear — in other words do their jobs — even if it means facing an even larger deficit in April, perhaps as high as $10 billion.

Hawley's full statement following he jump:

After months of knowing that this year's revenues would force budget cuts and after weeks of returning to Albany with no agreement on the table, I was pleased that both houses were able to come together to agree on some of the necessary cuts.  However, by taking next year's federal education funds, cutting aid to municipalities (including to the City of Batavia) and reducing access to health care in rural communities, like those in Western New York, this plan is full of problems.

Yes, tough choices need to be made, but once again the downstate leaders have attempted to balance their inflated spending on the backs of Western New Yorkers.  Just as I voted against the excessive 2009-10 State Budget, I also voted against this "reduction" plan that does nothing but further shift the burden of Albany's irresponsible spending onto the backs of hardworking Western New Yorkers.

Instead of adopting the many proposals to reduce the deficit that I proposed along with our Conference, downstate leaders decided to turn their backs on implementing real solutions.  Under the cover of darkness, with smoke and mirrors, after four weeks at a cost of $322,000, downstate leaders adopted the old adage of "borrowing from Peter to pay Paul."  Only they robbed next year's federal money from Obama to pay Shelley, Dave and John.

On top of these hurtful cuts, this plan also includes cuts to community colleges and Roswell Park as well as cuts $10 million from Timothy's Law, causing more increased costs again for small businesses.  Additionally, this plan cuts fees for out-of-state CPAs but does nothing for those instate.  They did the same thing to insurance small businesses last year, sending a consistent message that Albany does not care about New York State small business and further weakening our state's economy.

This plan cuts too little and doesn't address the nearly $4 billion deficit we have this year.  What's worse is cutting $391 million from education and replacing that with next year's federal stimulus, further exasperating the problem. Coupled with these other dangerous cuts, this plan is a deficit deferral not a reduction and it sets up our state for a deeper deficit next year, which is already estimated to mount $10 billion.

New York taxpayers could be spared as much as $760 million in unnecessary expenses by sharing services, according to Comptroller Thomas P. DiNapoli.

“Tax dollars are tight and families are struggling,” said DiNapoli. “Now more than ever we need to find ways to cut costs and lower property taxes. A good number of local governments are already saving millions in tax dollars by pooling their resources and eliminating duplication. But there are 3,175 local governments in New York State. All of these counties, cities, towns, villages, school districts and fire districts should use this report as a road map to save tax dollars without hurting the quality of services they deliver.”

In other state economic news:

• Gov. Paterson ended talks with legislators in frustration that elected officials are unwilling to make unpopular decisions to close the state's budget shortfall. He ordered reductions in scheduled state payments to local school districts.
• DiNapoli said in another statement that the state needs to stop relying on gimmicks to handle its financial situation and enact meaningful, long-term reforms.
• While the national economic recovery moves forward slowly, Wall Street is apparently in full recovery mode and is on track to record record profits in 2009.

A group of Western and Central New York lawmakers continued to push yesterday for up to $4.7 billion in federal aid to construct a high-speed rail system across the state.

The proposed rail system would connect Niagara Falls and New York City.  Moving at 110 mph, it would cut travel time from Buffalo to Albany by nearly two hours.

The rail system would likely bypass Batavia.

Reps. Louise Slaughter, D-Fairport, and Dan Maffei, D-DeWitt are among those pushing to get the project funded.  Maffei called it "the Erie Canel of the 21st Century."  Slaughter said the track could be laid along an unused CSX line.

The competition is stiff for the announced $8 billion in funding.  California is also seeking $4.7 billion to fund part of its proposed $45 billion project.  Florida and Texas are also seeking funding.

Assemblyman Steve Hawley joined his GOP colleagues in the Assembly Minority Conference in providing Gov. David Paterson a list of proposed spending cuts.

The cuts, if accepted, could save the state $3.5 billion.

"The Governor has asked each conference to present cost-saving ideas and for years we have had a list of ideas ready and waiting.  This is the third set of common-sense cost-saving solutions we have presented to the Governor and other legislative leaders.  Our plan has no new taxes or fees, these are not proposals for new revenue; the state does not need new revenue, it needs to stop spending the same way families and businesses are already doing,"  Hawley said in a statement.

The proposed cuts include:

• Eliminate $130 million in unspent pork barrel accounts in both houses;
• Reduce redundancy in state agencies
• Eliminate undispersed contracts.

Full press release after the jump:

Along with the entire Assembly Minority Conference, Assemblyman Steve Hawley (R,I,C-Batavia) today presented a new list of solutions that would help close this year's budget deficit as well as set up the state to guard against future deficits with long-term cost savings.  In total, the plan could save over $3.5 billion mid-year and is the third proposal submitted by Hawley and his colleagues for the consideration of the Governor and other
legislative conferences.  To date, neither majority conference has publicly proposed any cost-saving solutions.

"The Governor has asked each conference to present cost-saving ideas and for years we have had a list of ideas ready and waiting.  This is the third set of common-sense cost-saving solutions we have presented to the Governor and other legislative leaders.  Our plan has no new taxes or fees, these are not proposals for new revenue; the state does not need new revenue, it needs to stop spending the same way families and businesses are already doing," said Hawley.

Among the proposals are initiatives to eliminate $130 million in unspent pork barrel accounts in both houses as well as a miscellaneous member item payment to the City of Yonkers for $4.5 million.  Hawley stated, "Albany is asking every New Yorker to make sacrifices.  It is outrageous that there is 'extra' cash in these accounts for members to spend on pet projects at home. Downstate leaders should not be allowed to hold onto this cash.  They should be forced to make the same spending sacrifices as the rest of the state, especially the Western New Yorkers they are so willing to increase taxes on - from utilities to license plate mandates.  This irresponsibility needs to stop."

Other proposals include measures to reduce redundancy in state government agencies.  For example, merging administrative costs in the Department of Real Property Taxation with the Department of Taxation and Finance or the Consumer Protection Board with the Department of Law.  These savings would amount to at least $924.6 million.

Another area that Hawley has taken a look at and discovered significant cost-saving opportunity is with the amount of money wasted on undispersed contracts.  For example, if the state reduced the balance of these contract accounts by just 5 percent, over $300 million would be available to close this year's budget deficit.  Hawley stated, "These contracts are not the type of contracts that will hurt outside business, not construction or highway jobs.  These are the creative solutions that we have been working to find for months now and have presented time and again.  It's time the majorities take our example, present their ideas openly or accept our proposals and run with them."
 

This morning I discovered the art work of Jim Parker. He's an Upstate artist.

While none of his subjects seem to touch on Genesee County, I wanted to share this finding because I'm as fascinated by the style and quality of his work as I am by the subject.  

Billie and I have enjoyed what little exploration we've been able to do of New York. It's a beautiful and historic state full of charming rural scenery and buildings. 

Among Parker's favorite topics for painting are villages, landscapes and buildings from Upstate counties in the 18th and 19th centuries.  These paintings can really feed the imagination because so many of the buildings he paints are still standing, or buildings like them are still standing all over he state.

Fighting 29th reproduces this graph from the Center on Budget and Policy Priorities, which shows the 31 percent of the state's budget for 2009 covered by federal stimulus funds.

New York predicted that without changes to its revenue structure or spending programs, available funds in fiscal year 2010 (the 12-month period beginning April 1, 2009) would fall about $17.9 billion or 26 percent short of what was needed to balance the budget. In addition, New York’s FY2009 budget was projected to be short $2.2 billion due to declining revenues and rising costs.

The federal recovery law is providing New York $6.2 billion in federal funding that it is using to help close its budget gap. This includes $5 billion in additional federal Medicaid funding, $876 million in education-related State Fiscal Stabilization Fund money, and $274 million from the “government services” component of the State Fiscal Stabilization Fund.

If there's a state regulation that you find burdensome or unnecessary, here's your chance to complain about it and possibly get rid of it.

Gov. David Patterson has signed an executive order forming a committee of top advisers to review state regulations and eliminate any that are outdated or overly burdensome to business.

Agencies are already required to conduct lengthy reviews of new procedures and regulations before they become final. But under the new order, they will also be required to review such rules after they are put into effect.

Officials will be required to invite public comment on whether any existing rules and regulations — no matter when they were enacted — are “unnecessary, unbalanced, unwise, duplicative or unduly burdensome.” The committee would then reconsider rules that have generated the most criticism.

The first round of review will involve seven departments and agencies, including those responsible for environmental, health, liquor and labor regulations.

Some groups, such as labor unions, have previously opposed the governor's office taking on such sweeping power.

The state Department of Health and federal officials are girding for more cases of the H1N1 flu strain, from talking about quarantines to issuing guidelines for schools.

The state has also allocated more financial aid for county health departments dealing with H1N1 outbreaks.

Alan Bedenko notes that New York blew it in 1997 -- under terms of the state constitution, there should have been a vote to determine whether a constitutional convention should be convened.

But it's not too late. No year is too late. The Legislature can put the question on the ballot any year, like, say, this November.  That's Bedenko's suggestion.

So what reforms would you like see included in a new state constitution?

Would it surprise anybody that New York has a tax that raises tens of millions of dollars that doesn't go to its intended use?

The buck-twenty you pay every month on your cell phone bill to pay for 9-1-1 service isn't supporting the intention,  according to the Buffalo News.

Genesee County Sheriff Gary Maha is quoted:

“Basically, they’re using that money as general revenue,” said Genesee County Sheriff Gary T. Maha, whose office oversees 911 operations. “We have not seen any of that money.”

With these startling numbers:

The surcharge — raised in 2002 to $1.20 per month — has generated about $600 million over 15 years, but just $84 million has gone to the municipalities that operate 911 centers, the State 911 Coordinators Association found.

New York has lost more than 160,000 manufacturing jobs and Sen. Kirsten Gillibrand wants to do something about it.

That's noble, but her four-point plan doesn't address the major issues causing the swift decline of manufacturing jobs.

The main factors leading to closed plants and reduced workforces are trade imbalances, large chains forcing manufactures to reduce costs unreasonably, and New York's burdensome regulatory environment and high taxes.

Gillibrand's calls for manageable health care for small businesses and the self-employed, upgraded rail infrastructure, transition manufacturing to clean engergy production and expand a government program called manufacturing Extension Partnership.

Of course, health care costs are a major obstacle to small business start-ups, and providing adequate transportation to get goods to market is a reasonable role for government, and while clean energy is a noble idea, if the free market rejects it, what right does the government have to force the issue?

Gillibrand can't do much about Albany, but she is in a position to impact trade issues as well as anti-competitive practices of multinational chains such as Wal-Mart and Home Depot.

Full release after the jump:

Washington, D.C. – New York has lost more than 160,000 manufacturing jobs since 2001, or nearly one-quarter of its manufacturing base. To help New York’s manufactures get back on track immediately and to strengthen them for the long term, U.S. Senator Kirsten Gillibrand, a member of the Senate Environment and Public Works Committee, today unveiled her plan to help small and mid-sized businesses afford health care, open and expand new markets, and transition to clean energy production that will power New York and the country for decades to come.

“It's no secret that manufacturing has been struggling in New York and throughout the country,” Senator Gillibrand said. “New York’s manufacturers powered us through the 20th century, but have been among those hardest hit by these difficult economic times. We cannot rebuild our economy without our manufacturers. We need to get New York’s small and mid-sized businesses back on track today, and harness the power of our manufacturing tradition to rebuild and fuel the new economy. My plan will help power our economy through the 21st century – creating thousands of new, good-paying jobs right here in New York.”
 
Every corner of New York State has been crippled by manufacturing job loss. In fact, 52 of New York’s 62 counties show significant loss of manufacturing jobs since 2001, with the rest only showing short-term, unsustainable gains.

According to Senator Gillibrand’s report, every corner of New York has shed manufacturing jobs since the start of the new century.


·        New York City lost 58,507 manufacturing jobs from 2001 to 2008. However, in the past ten years, 2,385 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 
·        Western New York lost 23,627 manufacturing jobs from 2001 to 2008. However, in the past ten years, 1,583 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Rochester-Finger Lakes Region lost 26,769 manufacturing jobs from 2001 to 2008. However, in the past ten years, 1,329 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        Central New York lost 14,140 manufacturing jobs from 2001 to 2008. However, in the past ten years, 1,333 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Southern Tier lost 6,332 manufacturing jobs from 2001 to 2008. However, in the past ten years, 590 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Capital Region lost 7,367 manufacturing jobs from 2001 to 2008. However, in the past ten years, 771 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The North Country lost 3,236 manufacturing jobs from 2001 to 2008. However, in the past ten years, 395 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        The Hudson Valley lost 6,791 manufacturing jobs from 2001 to 2008. However, in the past ten years, 626 companies have benefited as a result of the MEP program, including retaining and creating new jobs.
 

·        Long Island lost 16,841 manufacturing jobs from 2001 to 2008. However, in the past ten years, 867 companies have benefited as a result of the MEP program, including retaining and creating new jobs.


To help New York’s small and medium-sized businesses get back on track now and transition New York’s manufactures to be the clean energy producers that will fuel New York’s economy for the long term, Senator Gillibrand unveiled her plan:

 

1.     Make Health Care Affordable for Small Businesses and the Self-Employed. More than half of America’s uninsured work for small businesses or are self employed. Senator Gillibrand is pushing the Small Business Health Options Program (SHOP) Act. This legislation would make health care affordable by allowing small businesses to buy into an insurance pool with other businesses – reducing costs for all by spreading out risk. The SHOP Act would also offer tax credits for small businesses and the self-employed. Businesses with less than 50 employees would receive a tax credit of $1,000 for each insured employee -- $2,000 per family. For the self employed, the tax credit would be $1,800 for individuals and $3,600 for families.

 
2.      Upgrade Rail Infrastructure to Help Businesses Connect to New Markets, Cut Costs, Move Goods Faster, Easier and Cleaner. New York has over 1,200 miles of short-line railroads – connecting manufacturers and communities to America’s rail system and business hubs. To incentivize upgrades to New York’s short-line railroads so more New York businesses can take advantage of them, Senator Gillibrand is cosponsoring bipartisan legislation that will increase the Short Line Railroad Rehabilitation Tax Credit from $3,500 to $4,500 and extend these tax credits through 2013.

Freight rail helps cut emissions, reduces highway congestion and saves businesses money. In fact, one freight train can take upwards of 300 trucks off New York’s highways. And one gallon of gasoline can move one ton of freight from Buffalo to New York City. They help attract new businesses to New York and help existing manufacturers move their products to larger markets. For every $1 invested by the federal government to maintain short line freight rails, these tax credits would leverage $2 in private investments, which are set to expire at the end of this year. By expanding and extending these tax credits, Senator Gillibrand is incentivizing upgrades to our rail infrastructure so more businesses can use short line railroads to move goods and services to new markets, and compete and succeed in the economy.


3.      Transition New York Manufacturers To Clean Energy Production. Senator Gillibrand is working with Senator Sherrod Brown (D-OH) to introduce the Investments for Manufacturing Progress and Clean Technology (IMPACT) Act this week. The legislation would invest $30 billion for states to establish a Manufacturing Revolving Loan Fund – helping small and medium-sized businesses retool, expand or establish homegrown clean energy manufacturing operation. The loans would help existing manufacturers get the capital they need to transition to clean energy production, and help get new businesses off the ground.

The IMPACT Act  would also invest $1.5 billion over five years for the Manufacturing Extension Partnership (MEP) – helping manufacturers access clean energy markets and transition to new, innovative, clean energy manufacturing technologies. This would increase the federal share of MEP funding from one-third to one-half.

Between 2000 and 2003 in New York, a network of 10 independent non-profit organizations overseen by NYSTAR – the New York State Foundation for Science, Technology and Innovation – led MEP programs that helped New York manufacturers create or save 4,154 jobs, and earn $587 million in new revenue, cost savings and capital investments.

America imports 70 percent of our clean energy systems and components. America cannot afford to keep importing foreign fossil fuels, and cannot afford to let other countries take the lead in the new clean energy economy. The IMPACT Act would help make New York a leader in the industry, and create thousands of new jobs for the state.


4.      Arm MEP With Resources to Make New York Leader in New Energy Economy. The federal Manufacturing Extension Partnership (MEP) Program helps many manufacturers to improve their companies. Senator Gillibrand said the MEP Program has helped 9,881 manufacturing companies in New York over the last ten years and argued that the program is needed now more than ever. Senator Gillibrand is calling for $131.8 million to fully fund the federal MEP program as part of the America COMPETES Act to make sure the program has the resources it needs to transition more New York manufacturers to clean energy production, and attract new clean energy manufactures to New York.

The numbers for New York's economy don't look good:

• Economic indicators have dropped 13 of the past 14 months
• Unemployment stands at 8 percent.
• Housing sales were down 21 percent last month.

And those are just the transitory, economic fluctuations that should be reasonably expected in a dynamic system.

New York, especially Western New York, suffers from longer-term economic trends that must be addressed whether we want to improve our standing in short-term fluctuations or build a strong economic foundation.

The New York State Association of Counties, which put out a press release prompting this post, jumps right to the conclusion that what is needed is more government, more stimulus, more taxpayer dollars.

Can the government really spend New York out of its current problems?

The government's power to spend money is mind boggling, but what really creates jobs and growth are private businesses making investments and taking risks.

Some of what is needed in New York is to clean up the mess in Albany, reduce the state regulatory burden and lower taxes.

But even with its faults, New York, especially WNY, has a lot going for it.  Genesee, in particular, has access to inexpensive power, reliable rail and road transportation, a stable workforce, inexpensive housing, plenty of land and water, respected school systems and a great natural environment.

There's no reason jobs can't be created here.

But growth won't come from government programs.  What WNY needs is a resurgence of entrepreneurship -- daring men and women who want to start businesses right here at home.

The biggest struggle WNY faces is how to convince business-minded people to take up the challenge of starting new companies.  And again, I'm not sure a government program is the answer.  People need to come to this conclusion on their own, but how to get the ball rolling ...

WNY was built by daring entrepreneurs, and only entrepreneurs will save it.

Full NYSAC press release after the jump:

“The Economy Watch continues to show that our state is suffering from severe economic decline. State and local leaders need to do everything we can to leverage funding from the federal stimulus plan to stem any further decline in our economy. We need to retain the jobs we have here in New York and attract new business and employment opportunities,” said NYSAC President Sarah Purdy, Yates County Administrator.
 

NYSAC’s Economy Watch is updated monthly and provides a range of data, including business cycle indicators, the consumer price index, job growth and layoff numbers, consumer and business confidence indicators, as well as local housing prices and sales activity.
 
Among the results presented in June’s Economy Watch include:
 

• The Index of Coincident Economic Indicators (ICEI), which has fallen for 13 of the past 14 months;
• Unemployment rates, which rose from 7.5% in April to 8.0% in May (before seasonal adjustment) despite increased seasonal hiring in many traditional tourist destination counties. A total of 29 counties exceed the State’s 8% unemployment rate;
• Housing sales declined by 21% for the month and have declined 40% since a year ago. Statewide sale prices have declined by 7.8% since a year ago and 11.8% since May of 2007;
• Consumer confidence increased in May by 5.5 points although New York consumer confidence indicators continued to be below the rest of the nation; and
• The Empire State Manufacturing Survey, which indicates that general business conditions for the state’s manufacturers continue to slip with indicators declining an additional 5 points in the last month.

 
The complete NYSAC Economy Watch, county level information where available, and a full description of each of the indicators and what they mean, can be obtained by visiting the NYSAC website.

The New York Stat Association of Counties is a bipartisan municipal association serving all 62 counties of New York State including the City of New York. Organized in 1925, NYSAC’s mission is to represent, educate and advocate for member counties and the thousands of elected and appointed county officials who serve the public.

This may come as no surprise, but many of your neighbors are thinking about leaving New York, according to a poll conducted by Siena College, according to the Buffalo News.

As much as 20 percent of the state's population would like to move or is thinking about, according ot the poll. Only 16 percent said they have no intention of moving.

How many people would follow through on the threat is unknown, but the poll, according to critics, depicts a clear frustration many have with state and local taxes that fuel a high-tax reputation across the nation.

“It absolutely should be of concern to the governor and state leaders,” said Steve Greenberg, a spokesman for the Siena poll.

The Buffalo News reports this morning that a group of Western New York State Assembly Democrats "rebelled" against party bosses by voting "no" on a slate of budget bills.

But how much of a rebellion is it when the outcome is predetermined?

And 23 Democrats — nearly a quarter of the party’s conference — voted no on a massive bill involving health care spending.

What’s going on? Why would so many Democrats buck their leadership on such a crucial matter?

One answer is because Democrats control the Assembly with a highly secure 109-41 margin, leaving plenty of wiggle room to let some members avoid making a politically uncomfortable vote without affecting the overall outcome of a bill the leadership wants passed.

So some Democrats who might face a backlash back home get to play it safe and "buck" party leadership. Does it really make a difference? We still get stuck with this loser of a budget.