March 2006 Jobs Plan
From the NYS Assembly • Sheldon Silver, Speaker

Assembly jobs plan will spur
economic growth

The governor’s dismal job creation legacy

Despite 12.1 percent job growth nationwide from 1995-2004, New York’s employment grew at only 7 percent.

China produces 325,000 engineers each year to only 60,000 in America.

A Comptroller audit of 11 Empire Zones found that 47 percent of the firms in the zones created fewer jobs than promised - 23 percent actually lost jobs.

Had the upstate economy grown at the national rate, it would have gained over 200,000 jobs instead of merely 76,000.

New York was one of just three states in the nation to lose population according to the latest census data.

Proposal looks to revitalize upstate New York through tax credits, R&D investment and education

The Assembly jobs plan uses targeted tax breaks, investments in education and research, and a focus on New York’s burgeoning high-tech industry to repair the economic legacy of Gov. Pataki’s failed leadership. The plan will help see that New York’s job growth over the next decade, unlike the past, not only matches nationwide levels but surpasses them.

New York is struggling because young, highly-educated New Yorkers have been leaving in droves for jobs elsewhere while, paradoxically, in-state companies complain that they are unable to find enough skilled workers. The Assembly’s plan targets this problem by providing a mixture of investments and tax cuts to connect job seekers, employers, related industries, venture capital and university-supported research. By bridging the gap between these elements on a regional basis, the plan will ensure that economic resources stay within the state instead heading elsewhere.

The overall approach of the plan includes such common-sense steps as the creation of a yearly strategic plan for economic growth and the implementation of a "one-stop" permitting process, making it easier for new businesses to be more competitive.

Creating a lab-to-market pipeline

Unfortunately, the high risk associated with new products often creates a barrier to receiving support from the investment community. The Assembly plan focuses on moving these products from the initial startup costs to the level where venture capitalists are interested by providing tax credits to angel investors who bridge this gap.

While regional economies will retain their own competitive advantages, the Assembly’s plan also includes a statewide focus on stem cell and alternative energy research. Five states already have dedicated centers to stem cell research and the Assembly’s plan would make New York the sixth. The plan would also create two Centers of Excellence and form a state intellectual property policy to encourage the commercialization of innovations resulting from state investments in high-tech research within New York.

Eighty percent of the fastest-growing occupations are dependent on science and mathematics, with a projected 2 million jobs to be created in the next decade. To create a labor pool suited for this economy, the Assembly’s plan provides community college funding targeted at training for recognized growth sectors within the state and increased STEP and CSTEP funding to support math and science undergraduates.

Marketing New York

As the final component of these changes, the Assembly plan recognizes the need to reshape the image of upstate New York and expand on the image of New York city. Currently, the majority of marketing efforts are actually directed at in-state New Yorkers. The Assembly plan would expand programs like “I Love NY” to other states and countries to encourage investment and tourism.

New York must move beyond tired approaches to economic growth based on 20th century ideas of business and management. If the governor isn’t going to do what it takes to prepare our state for the new economy, the Assembly will.

Supporting New York’s businesses

The Assembly’s plan eliminates the S-Corporation tax, reduces energy costs, includes targeted tax credits, and creates a capital matching grant program for businesses that create jobs. Additionally, it will:

  • extend the Power for Jobs program, which provides low-cost power to manufacturers, for an additional year
  • increase funding for incentives to small- and medium-sized businesses to promote energy conservation and efficiency
  • extend "brownfield" tax credits to distressed areas;
  • support the creation of business improvement districts through the Urban and Community Development Program
  • increase authorization of the Excelsior Linked Deposits Program
  • establish a regional loan fund through the Minority- and Women-Owned Business Development Lending Program;
  • increase support for the Entrepreneurial Assistance Program
  • reform the Empire Zone program;
  • provide language assistance to support immigrant entrepreneurs
  • increase support for the Rural Revitalization program.

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