andrew cuomo ny works agenda

8/8/2019 Andrew Cuomo Ny Works Agenda

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The New NY AgendaThe New NY AgendaAndrew CuomoAndrew Cuomo

NY WorksNY WorksGetting NY Back to WorkGetting NY Back to Work

33rdrd in a Seriesin a Series


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THE NEW NY AG

The people o New York deserve agovernment that works, or a change not a government paralyzed by

partisan politics and plagued by ethicalscandals.

We love New York and are willing to fght

or the undamental reorms necessaryto restore competence and integrityin government and regain the publicsconfdence.

We are DemocratsIndependents. But wfrst, oremost and

Today, I join with myactively support AndAgenda. I pledge to

elections, to urge mto support this Agemobilize my communext yearto make

1. Clean Up Albany. We must restore honor and integrity to governmethics standards, expanded disclosure requirements, independentout and punish corruption, and an overhaul o campaign fnance lalegislative redistricting rom partisan elected politicians and placeindependent commission that works only or the people. And we musconvention A Peoples Convention to rewrite the Constitution animmediately because we cannot wait any longer or the state legis

2. Get Our Fiscal House in Order.We must get our States fscal house inimposing a cap on state spending and reezing salaries o state part o a one-year emergency fnancial plan, committing to no incorporate income taxes or sales taxes and imposing a local propealso eliminate mandates that make it impossible or school distcontain costs.

3. Rightsizing Government.Government in New York is too big, ineWe must enlist the best private sector minds to help overhaul ostate agencies, authorities and commissions and reduce their nuWe must make it easier to consolidate or share services among o


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The New NY Agend

NY Works


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Table of Contents1. Introduction: NY Works...............................

2. Improving New Yorks Business Clima

Open for Bussiness...............................................Reducing the Tax Burden.....................................

Workers Compensation Reform .......................

Preventing a Spike in Unemployment Insur

...........................................................................................Reducing Energy Costs ..........................................

Create a new Energy Efficiency Finance Corp

Controlling the Growth of Health Insurance

Reducing Regulatory Burdens ...........................

3.Forge a New Economic Development P

Regional Economic Development Counc

Ensure the Personal Commitment of the Go

and Lt. Governor .......................................................Base a Regional Strategy on the Specific IndClusters in Each Region ........................................

Develop Regional Councils and Regional Str


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Streamline the Process by which Grants anPayments are Made ................................................

Promote International Trade .............................

Create Performance Metrics to Measure Pr

Maintain Accountability .......................................4. Targeting Incentives to Get New Yorkto Work and to Attract, Retain and Expa

Targeted Tax Incentive Programs ...................

A New Jobs Now Tax Credit for the UnempFix the Recently Enacted Excelsior Tax Credi...........................................................................................

Strive to Keep Prior Commitments ....................

Targeted Economic Development Grants ....

Revitalize NYs Economy Grants .....................

Strategic Companies Grants.................................

Innovation Economy Grants.................................

5. Make Higher Education a Jobs GeneraHigher Education-Industry Partnerships

Technology Transfer ..............................................

Capital ............................................................................


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Use the Regional Councils to Coordinate thEfforts ............................................................................

Focus on Education and Literacy as the BuiBlocks for a Strong Workforce ..........................

Address the Critical Issue of Youth EmployDual Enrollment Programs ..................................

Mentoring & Work Readiness Programs. .......

Invest in On-the-Job Training ............................

7. Address the Needs of Small Business ..Enhance Access to Capital ...................................

Expand the Role of Community Banks and Si

Institutions ...................................................................

Lending Institution Participation in NYS LinDeposit and Revolving Loan Program ...........

Permit Refinancing and Longer Terms ...........

Create a Collateral Support Program ..............

Provide Portfolio Insurance Funding ...............Connect Small Businesses with GovernmenPrograms .....................................................................

Create a New York State Business Express .


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Reform the Dedicated Highway and Bridget ...........................................................................................

Build Essential New Transportation Projects

Achieve Efficiencies in the Highway and Brid

Program ........................................................................Develop World Class Mass Transit Systems

Address the Operating Deficit at the MTA......

Address the Capital Program Deficit at the M

Improve Efficiencies at Upstate Transit SysteMake High Speed Rail a Priority .......................

Improve our Air Traffic Infrastructure.........

Create the Connect NY Broadband Progra

Expand High Speed Internet Access to All ANew York .....................................................................

Create the Rebuild NY State Infrastructur

Summary of Proposals ..................................


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N

1NY Works

Executive Summary

Y Works is one of the five pr

Andrew Cuomos New NY Ag

the New NY Agenda, Andrew

said: We must make New York the jobs cap

nation and get unemployed New Yorkers b

work. This longer NY Works Agenda lays odetail the specific programs Andrew Cuom

Lt. Governor Bob Duffy will pursue to make

promise a reality.

The economic challenges New Yorke

were summarized in the New NY Agenda as

Too many New Yorkers today are un


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whose hours have been cut along with thospart time for lack of full-time positions a14.3 percent in 2009, meaning almost one oevery six New Yorkers was unemployed orunderemployed.2

Every region of the State is sufferingcontinues to witness the crumbling of itsmanufacturing employment base, which ha32 percent over the past decade,

3 with an oloss of approximately 22 percentover the s

period. Unemployment in New York City ishigher 10.6 percent, with even higherunemployment rates in many parts of the CNew York City, communities of color are hihard. Unemployment of African Americans

Hispanics exceeds 15 percent in manyneighborhoods.5

In addition, many fear that we are cltipping point in terms of population loss. TNew Yorkers have left the State over the pa

New York leads the nation with net out-m20 to 35 year olds, the most critical demogrgroup for economic growth and community


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Forge a New Economic Development Par

New York States current policies an

for managing economic development have

effective in creating jobs and driving invest

New York. The States economic developm

bureaucracy is slow and unresponsive to th

New Yorks diverse regions. Too much of o

economic development spending is based o

other than merit and there is insufficient

transparency about which of our economic

development investments are in fact produ

intended result. New Yorks failure to adap

needs of the 21st

Century global economy hcontributed to job losses and the failure to

industries and jobs in New York. The econ


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greater level of partnership with the privat

recognition of the critical role of colleges an

universities in creating jobs and attracting

to New York, basing economic developmen

competition whenever possible, and a stron

of performance management that shows w

investments and policies are working and w

not. The States new approach to economic

development must begin with a personal

commitment from the highest levels of Stat

government to make jobs and economic dea top priority. As Governor, Andrew Cuom

ensure that all of the States economic deve

efforts are kept on the front burner of gove

And because the economic situation of Ups

York is particularly perilous and requires t

involvement of State government Andrew


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Improve the Business Climate: NY Business Initiative to Make New YoCompetitive

To compete effectively in the global

New York must address State policies that

substantially increase the cost of doing bus

New York. These costs include State and lo

assessments for workers compensation an

unemployment insurance, and energy and

insurance costs. The Cuomo Administratio

steps to reduce every one of these major co

for business.

We know that businesses will not cre

New York if they do not believe that State

government will rein in spending and hold

taxes. That is why Andrew Cuomos comm

control State spending veto tax increases i


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workers compensation system in 2007 was

approximately $7.0 billion annually. A maj

Workers Comp reform package enacted in

resulted in a reduction of premiums of 22 p

over two yearsimplying a savings to New

employers of nearly $1.5 billion a year if th

savings were achieved for all employersw

increasing benefits for most workers. Unfo

New York States often dysfunctional burea

been very slow to follow through on the ste

to complete Workers Comp reform. This dimplementation now threatens to reverse t

that were supposed to be achieved through

Workers Comp reform. The NY Works Agen

for completing the stalled Workers Comp r

process so that the significant savings that

businesses expected to realize from reform


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see their Unemployment Insurance expens

significantly to eliminate this deficit as requ

federal law. The Cuomo Administration wi

range of options to avoid a spike in costs to

businesses during this critical economic tim

New York States energy costs are am

highest in the nation. Andrew Cuomos Pow

Agenda offered a comprehensive plan to re

energy costs while creating jobs through in

in energy efficiency, renewable energy and

businesses. Improved energy efficiency, inis one of most effective ways to reduce ene

and at the same time is a source of new job

Works Agenda proposes a new Energy Effic

Finance Corporation to help larger busines

energy efficiency programs that can reduce

bills by as much as 40 percent in some case


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Health insurance is one of the larges

that many businesses face, often accountin

percent or more of total personnel cost. Th

are particularly burdensome for New York

because our health care system is one of th

expensive in the nation. The recently enact

health reform legislation may prove helpfu

York in gaining control over the runaway g

health insurance costs in the long run, but i

run, the new law threatens to actually incre

cost of insurance for many businessesa rCuomo Administration will work to counte

One direct measure the Cuomo Adm

will take to help protect businesses is to en

insurance carriers do not raise health insur

premiums beyond a level warranted by the

are insuring The Cuomo Administration w


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reduce the cost of health insurance for man

businesses with 25 or fewer employees.

Forge a New Economic DevelopmeParadigm: Regional Economic DevCouncils

New York cannot pursue a one-size-

approach to economic development. Each

States regions is different. To be successfu

Yorks economic development strategy mu

reflect a bottoms-up approach that both re

particular needs of each region, is fully inte

with all of the economic development stake

the region, and is closely to other regions in

so that the whole becomes greater than the

parts. Under Andrew Cuomo as Governor a


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The starting point for this effort will

establish ten regional economic developme

(Regional Councils) that represent a publ

partnership to develop and execute effectiv

term economic development strategies. Th

Councils will coordinate economic develop

efforts in their region in partnership with b

local public and private economic developm

organizations, institutions of higher educat

other stakeholders. The Regional Councils

empowered to cut through the Albany bure

we can get things done. All the State agenci

impact economic development, including D

NYPA and Ag and Marketsas well as ESD

lead agencywill be represented on the Re

Councils so we can break down bureaucrat

have the State speak with one voice Bob Du


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marketing entitiessuch as Buffalo-Niagar

Enterprises, Rochester Business Alliance/G

Rochester Enterprises, CenterState CEO in

and the Long Island Associationand local

governmental economic development orga

since these entities have a deep understand

needs of businesses in their regions and a m

expand economic development there. By w

closely with both these entities, the Region

will provide businesses with a single point

for economic development matters.

Speed to market is critical, and New

many opportunities because our economic

development bureaucracy cannot make de

quickly and speak with one voice. In order

our economic development programs nimb

responsive the Cuomo Administration will


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largest opportunities Statewide have suffic

funding.

A regional approach to economic de

does not mean that each region should be i

its thinking. Each region muststay connect

other regions to leverage the economic ass

parts of the State. Too often today New Yo

than the sum of its parts. The Regional Cou

be judged in part on how much they contrib

making New Yorkmore than the sum of its

Because New York must also connect to the

not just other regions or states, a key part o

regional strategy in many areas will involve

expansion of international trade. For West

particular, trade with Canada is a major sou

and must be a priority for the State.


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and an effective regional economic develop

approach to economic development. In som

however, New York will also need addition

incentives to compete with other states and

to attract companies to New York and expa

here. Especially because of the deep budge

constraints New York faces, these incentive

carefully targeted so that we do not waste p

economic development funds.

Given the prolonged period of high

unemployment we are experiencing, provid

for New Yorkers must be the overriding pr

New Yorks economic development efforts.

immediate boost to this effort, the Cuomo

Administration will propose a Jobs Now t

of up to $3,000 for businesses that hire new

who have been unemployed for at least six


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economic development incentives of neigh

states.

We must also strive to keep the Stat

commitments in its economic development

The effectiveness of tax incentive programs

bringing businesses to New York is threate

action of the State to defer the payment of t

to businesses to close this years State budg

New York must take steps to assure busine

this deferral will not be extended again, so

have certainty of receiving these funds on t

schedule established by the budget this yea

Moreover, when the State does pay busines

funds owed under these tax credits, it shou

interest for the period of time that the State

effectively borrowed this money. Finally, b

the great importance of Historic Preservati


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this regional economic development model

Revitalize NY grants will be awarded in a

competitive process for strategic projects s

preparing shovel-ready sites, repurposing

manufacturing and other facilities, creating

downtown commercial areas and other job

projects. Strategic Companies Incentive g

enable the State to offer direct incentives to

to induce them to locate or expand in New

Innovation Economy grants will be award

competitive process to provide support to

consortiums of higher education and indus

are creating a next generation of jobs in in

clusters with a heavy emphasis on commer

university-based research. The process of

and distributing all of these grants will be

streamlined and measured against perform


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Make Higher Education a Jobs GenHigher Education-Industry Partne

The Regional Councils will help to co

the efforts of State government in attractin

nurturing and retaining businesses of all si

York. There is a specific set of businesses,

where the involvement of government requ

special set of policies. These are sectors th

heavily on commercializing research inven

on consortiums of higher education and gro

companies to develop large new markets.

New York needs to support the deve

these sectors with a two-pronged approach

support technology transfer and commerciefforts that can take inventions from unive

laboratories and turn them into commercia


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investments in innovative products and com

eliminating the capital gains tax on investm

start-up and early stage companies.

Second, while technology transfer an

commercialization efforts are vital, a broad

required to make New York the location of

large-scale economic activity in these secto

York has one major success story of a majo

sector being substantially by State support

consortium of higher education and indust

Nanotechnology innovation and industry c

stretches from the IBM Hudson Valley Rese

in East Fishkill, through the Albany NanoTe

Complex that is part of the State University

College of Nanoscale Science and Engineeri

(CNSE), to the massive Global Foundries c

chip fabrication plant under construction in


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be issued through a competitive process an

concentrate on the industries where New Y

positioned to succeed because of its existin

human capital, research and industry leade

including such industries as life sciences, re

energy and other cleantech technologies, an

telecommunications.

Training a Workforce for the 21stC

New York must redesign technical a

education and workforce development proto meet the workforce needs of employers

growth industries in each of New Yorks div

regions. We must create a system that alig

needs of high-growth employers with job-s

opposed to the existing supply-side syste


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through a complex system of federal as wel

agencies, including the Department of Labo

State Education Department, with the deliv

the-ground services provided by innumera

such as local Workforce Investment Boards

One-Stop Employment Centers, county soc

departments, and educational institutions i

Community Colleges and Boards of Cooper

Educational Services (BOCES).

Finally, we must address the critical

youth employment by creating dual enrollm

programs that allow high school students t

courses at community college with a goal o

increasing postsecondary access and succe

particularly for minority and low-income s

These dual-enrollment programs are emplo

great success and varying degrees of emph


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Address the Particular Needs of SmBusiness

New York States small businesses m

more than 99 percent of New Yorks privat

employers and employ 52percent of the St

private sector labor force.8

Access to capital and financing is cru

small and medium-sized businesses, and th

of the decline in lending is unmistakable. F

through 2009, the number of loans to smal

in New York State declined 54 percent; for under $100,000 the decline was approxima

percent.

Nearly every pa

NY Works Agenda will benefit small busine

way, but certain additional actions must be

address the particular needs of small busin

9 A key element of our Small Busin


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From 2006 through 2009, the number to small business in New York State decpercent; for loans under $100,000 the

was approximately 63 percent

New York State currently has at leas

programs designed to increase the supply o

and financing to businesses, but these prog

managed by multiple agencies, hard for bu

find and too small to really make a differen

Cuomo Administration will make this issue

First, the Superintendent of the Departmen

Banking and the Chairman of ESDC will be

with developing transparent metrics and ta

we can understand in a more real-time way

of the problem of access to capital Next w


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of the kind provided in the Michigan Collat

Support Program. The NY Works Agenda w

strengthen the institutions that are more ap

provide credit to small businesses, such as

Community Development Financial Institut

community banks and credit unions, by ma

their participation in the States Linked Dep

Revolving Loan Program. Finally, we will w

ensure that every bank operating in New Y

Second Look program for rejected credits

seeking to connect businesses that have be

to obtain a loan from their existing financia

institution with other lenders around the S

Providing health insurance to their w

one of the largest expenses that many smal

businesses face. Under Federal Health Refo

businesses with less than 25 employees ma


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New York must do a better job of consmall and medium-sized businesses with v

incentive programs that are available to th

the States small and emerging businesses i

particular, combing through the States inc

offerings is an arduous process that results

opportunities for small businesses. We wil

online, interactive incentive-matching tool

the small business community which enabl

entry of the basic business profile informat

relevant to all incentive program criteria, s

number of employees, location, MWBE stat

revenues, etc. This online matching tool w

generate a list of State incentive programs

be suitable for the business accessing the t

To reduce regulatory burdens for sm

medium sized businesses we will impleme


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Today, New York rnear the bottom

national rankingbridge and pavem

obtain a customized list of typical State reqfor any business.

Create Transportation and Other

Infrastructure to Support Growth

New York States heritage as an econ

power was built on its leadership in transp

infrastructure. From the Erie Canal to the T

system to the great subway system of New

New York has always had a transportation

that was a key driver of economic growth.

Today, New York ranks near the bot

national rankings in

bridge andpavement

conditions, has


33/191

failed to develop a plan to finance and rebuTappan Zee Bridge, and has failed to use fe

stimulus money for much more than culver

bridge deck replacement because we lacke

approved shovel ready projects or the abili

design-build approach for highway project

of this, the State has resorted to irresponsib

short sighted bonding practices for the last

years. These practices have left the State w

operating deficit at the MTA and few availa

resources to address our infrastructure pro

since so much of our transportation dollars

up in paying debt service on projects that s

been financed with a greater proportion of

instead of relying almost exclusively on bon

capital.

Fixing our infrastructure problems w


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fund other projects that can create jobs andgrowth, we will need to simultaneously add

bonding practices of both the Metropolitan

Transportation Authority (MTA) and DOT

reduce overall construction costs.

As we get existing transportation

infrastructure house in order, we must also

advantage of the huge opportunities for an

21stcentury infrastructure. We must resolv

bickering between public and private parti

prevents us from having a viable High Spee

strategy and New York must take the lead a

neighboring states in pushing the Federal

government to develop a national rail-freig

that takes trucks off our highways. We also

work with our partners in New Jersey to de

comprehensive Aviation strategy for the re


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As part of the effort to strengthen Ninfrastructure, we will create the Rebuild

Infrastructure Bank to maximize our infras

dollars. The Rebuild NY Bank will use cash

from the State or the proposed Federal Infr

as equity, and lever that equity (typically at

3x) to create a pool of funds for investment

economic development or transportation

infrastructure projects. Projects conducted

the SIB will be eligible for Design-Build con

have been demonstrated to reduce the cost

procurement by allowing for value engine

the contracting process, and will facilitate t

introduction of private capital and risk-sha

State in the construction of certain large pr

similar to what the Port Authority is now p

with respect to the Goethals Bridge project


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The following chapters set forth in detail thWorks Agenda.


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A

2Improving New Yorks

Business ClimateNY Open for Business Initiati

ll of the States efforts to dire

support job creation and eco

development will be for naug

Yorks business climate is not changed in a

helps businesses stay (or become) competi

global market. Businesses are attracted to

because of our many assets, including an ed

and dedicated workforce, our role as a glob

financial center, our large markets and the

advantages that different regions possess f


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State and local taxes, assessments for workcompensation and unemployment insuranc

energy and health insurance expenses. The

problems are compounded by a State regul

bureaucracy that is too often unresponsive

needs do business. With Andrew Cuomo as

New Yorks business climate will begin to c

the better.

Reducing the Tax Burden

New Yorks State and local tax burde

individual taxpayers is the third highest in

behind only Alaska and Wyoming (where m

revenue is tied to natural resources).11 New

States highest corporate income tax rate o

percent is by itself among the top half of sta


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For many businesses outside of New YCity, their largest tax expense is propert

assessed value is also among the highest innation.12 We know that businesses will no

jobs in New York if they do not believe that

government will rein in spending and hold

taxes. That is why Andrew Cuomos comm

control State spending, veto tax increases i

or corporate income tax and sales tax, and

property taxes is a critical part of his econo

development plan.

Workers Compensation Reform

In 2007, the total cost to New York e


40/191

the two years following enactment of the reThis implied a savings to employers of near

billion annually and represented the equiva

substantial tax cut for employers with high

Compensation expense. The 2007 Worker

Compensation reform statute was intended

compromise between the interests of empl

injured workers. As part of the reform pac

maximum Workers Compensation weekly b

injured workers was significantly increased

indexed annually thereafter. With these ch

Workers Compensation reform held the pr

being a win-win for business and labor.

The 2007 Workers Compensation re

was expected to produce savings by cappin

years the period for which benefits related

permanent partial disability would be pa


41/191

for both the treatment of injured workers adetermining the degree of disability and re

impairment in wage earning ability.

Unfortunately, the implementation o

changes has been very slow in the more tha

years since the enactment of the Workers

Compensation reform law and threatens to

savings that employers have achieved as a

the new law. The Cuomo Administration w

a priority to complete the stalled Workers C

reform process to secure the win-win of c

reductions and benefit increases that the re

was supposed to make possible.

Preventing a Spike in Unemployment InCosts


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liability. These costs are about to increasesignificantly as a result of a $3 billion defici

States UI Trust Fund. The federal governm

finances this deficit in the UI Trust Fund, an

federal law it will soon impose increased ta

New York employers to eliminate the Trust

deficit over a period of years. It is estimate

Yorks tax-rated employers will need at lea

to repay the federal loan and interest on th

Fund deficit in New Yorks UI Trust Fund. T

increased tax burden will be in addition to

employers New York state unemployment

burden (which averages 4 percent) on the f

of wages. As part of the NY Works Agenda,

Administration will pursue options for retu

UI Trust Fund to solvency in a way that min

this additional cost for New York employer


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Reducing Energy Costs

The Power NY Agenda

New York States energy costs are am

highest in the nation. According to a 2007

commercial rates for electricity in New Yor

percent higher than comparable states.14 A

Cuomos Power NY Agenda offers a compre

program for controlling energy costs, inclu

investments in energy efficiency, upgradingexpanding our transmission infrastructure

lower cost power to the areas where it is ne

most, a new power plant siting law to help

supply of power generation, and a willingn

a fresh look at the NYISO system that sets t


44/191

Create a new Energy Efficiency FinCorporation

As described in the Power NY Agend

improving energy efficiency is a win-win-w

strategy that reduces energy costs for allra

creates jobs and economic activity, and is g

environment. Energy efficiency programs

dramatically less expensiveas much as 3

a per watt basisas other efforts to produ

carbon, clean energy. The Power NY Agend

describes how the State can improve its exi

energy efficiency programs, but these effor

largely focused on government facilities an

residential buildings.

The opportunity also exists for New

to accelerate energy efficiency projects by a


45/191

Building consumes the equivalent amount as 40,000 single family homes. Energy effic

projects in large buildings of this kind can h

materially reduce the use energy, thereby a

the need for new energy capacity and redu

price of energy sold in our competitive mar

because of the law of supply and demand.

Using New York City as an example, of the energy used is consumed by building

percent of those buildings consume 80 per

total energy use by buildings. In other wor

64 percent of all energy consumed in New Y

consumed by 20 percent of its buildings. As

investment in these buildingswith a spec

concentration on the largest energy users

to substantially improving energy efficienc

decreasing total energy use


46/191

available to further lower the cost of this fiThe EEFC will be housed within an existing

avoid adding to the States problem of dupl

government agencies and authorities.

The EEFC will leverage federal grant

embrace new approaches to contracting, su

working with private entities that engage i

performance guaranteed contracting, to creindustrial scale model for financing energy

projects. Private companies such as Hanno

Armstrong are already deploying this busin

on a smaller scale, and we can learn from th

experience.

Real estate owners are intensely com

Owners and lenders who are early movers

initiative should be rewarded, based in par

number of jobs and the amount of economi


47/191

One reason this proposal is discusseBusiness Climate section is that the EEFC

will serve to reduce the cost of energy for a

ratepayers, not just the particular business

participating in the program. According to

models used in the New York State Energy

effect of reducing energy demand by 15 pe

trend line levels by 2015 would result in a average wholesale electricity prices by 10 p

below the value they would otherwise be

of roughly $4 billion annually to ratepayers

forecasted level of energy purchases in New

State.15 The new EEFC will provide a majo

enabling New York to achieve this reductio

overall energy prices through demand-sid

management.


48/191

companies located here. There are many rwhy health care costs in New York are so h

reducing them will require a comprehensiv

approach. Later this year, Andrew Cuomo

his NY Health Agenda that sets forth such a

comprehensive plan to make health care m

affordable in New York, while also address

questions of access and quality of care.One direct measure the Cuomo Adm

will take to help protect businesses is to en

insurance carriers do not raise health insur

premiums beyond a level warranted by the

are insuring. Earlier this year, the Governo

into law16 a provision that restores the auth

the State Insurance Department to require

approval of increases in health insurance p

a power the Department has long had for o


49/191

uncontrolled growth in costs in the health cdelivery system.

Reducing Regulatory Burdens

New York State must also address th

burdensome regulations that make it diffic

expensive to build or grow a business in Ne

some cases, this involves the substance of t

regulation, but in many others cases the big

problem is the inflexible manner in which r

are enforced and the extended delays in ge

answers to questions and permits issued. T

Regional Councils described below will brin

representatives of all State agencies that ha

impact on economic development to produ

responsive and coordinated approach to th


50/191


51/191

W

3Forge a New Econom

Development Paradigm: R

Economic Development C

hen it comes to economicdevelopment, New York t

than the sum of its parts.

central economic development bureaucrac

not close enough to the diverse regions of N

State to be nimble and responsive to their p

needs, but at the same time fails to connect

of these regions with each other in a way thmake New Yorkmore than the sum of its pa

shortcomings in our economic developmen


52/191

without being effectively connected to the Uregion.

Because New York cannot successfu

a one-size-fits-all approach to economic de

New Yorks economic development strateg

reflect a bottoms-up approach that both re

particular needs of each region, is fully inte

with all of the economic development stakethe region, and is closely to other regions in

so that the whole becomes greater than the

parts. The starting point for this effort will

establish ten regional economic developme

(Regional Councils) that represent a publ

partnership to develop and execute effectiv

term economic development strategies. Th

Councils will coordinate economic develop

efforts in their region in partnership with b


53/191

NYPA and Ag and Marketsas well as ESDlead agencywill be represented on the Re

Councils so we can break down bureaucrat

have the State speak with one voice. Bob Du

Upstate leader with a record of working to

the Rochester and Western New York econ

serve as the Chair of the Upstate Regional E

Councils.These Regional Councils will counte

bureaucratic hurdles created by our highly

fragmented economic development structu

Currently, New Yorks economic developm

is balkanized across as many as 28 separat

agencies17 and hundreds of other public en

economic development missions, including

600 local development corporations,18 115

industrial development agencies 19 72 loca


54/191

economic development incentives that fragprocess further.24

New Yorks Balkanized Economi

Development SystemGovernment Agencies 2Industrial DevelopmentAgencies 1

Local Development

Corporations 6Empire Zones 7

Business Improvement Districts 5

Urban Renewal Agencies 4

Regional Planning Councils 1

Ensure the Personal Commitment of the

and Lt. Governor

The personal commitment of the Go

i l i li i N Y k


55/191

companies to locate, remain and grow jobsYork State. Because the economic situation

Upstate New York is particularly perilous a

requires the greatest involvement of State

government, Andrew Cuomo will make Lt.

Bob Duffy his personal representative to dr

economic development initiatives that affe

New York. Too often, we have heard storiebusiness locating in another state because

governor called and made a personal pitch

business to locate there, while New York w

represented only by an anonymous appoin

couldnt present the same prestige or level

credibility. Thats a story that wont be told

Cuomo administrationbecause it wont hhis and Lt. Governor Duffys watch.


56/191

the same degree, in the rest of Upstate. In tSyracuse area there is a strong cluster on h

defense work related to long distance sens

Albany/Saratoga area there is a strong clus

computer chips. In much of upstate there a

in agribusiness, but even these sectors vary

successful, New Yorks economic developm

strategy must be based on a bottom-up appboth reflects the particular needs of each re

includes all of the economic development

stakeholders in the region.

Decades of economic development r

and experience support the conclusion that

economic development strategy is one that

on capitalizing on the existing strengths of awards grants and funding through a comp

process and closely monitors performance


57/191

loan guarantees to spur economic growth iparticular region or neighborhood. By the

tenure as Secretary, HUDs economic devel

programs had created or maintained hundr

thousands of private-sector jobs across the

The essential ingredient of the Empo

Zones strategy was that it used public-priv

partnerships to spur development and job As Vice President Al Gore said,

Empowerment is not a top-down progrbut a bottom-up solution. It doesnt depsolely on the private sector, but it doesignore the markets power in forgingsolutions. It doesnt rely on governmenexclusively, but it doesnt neglectgovernments role either. Instead,empowerment changed the mission ofgovernment. It holds that governmentsmore like hardware stores than masterbuilders. We dont tell people what the


58/191

Decades of economic development reseand experience support the conclusionthe best economic development strateg

one that is based on capitalizing on texisting strengths of a region, awards g

and funding through a competitive proand closely monitors performance t

maintain accountability.

Develop Regional Councils and Regional

Plans

The organizing principle for this stra

be the creation of roughly ten Regional Cou

will engage all economic development stak

the region. Each Regional Council will be c

the Lt. Governor and led by the Regional Di

ESDC, and will also include representatives

D f T i E i


59/191

task of these Regional Councils will be to de

long term strategic plan for the region base

agreement among key stakeholders about t

economic development assets and related p

for the region. Each area should establish f

working with the State, a set of clusters of i

to its economy. Scarce economic developm

resources should be targeted to these clustOpportunities in other non-prioritized area

treated as of secondary importance. In man

there may be a consensus on that strategy b

the Regional Blueprints that each region de

few years ago, in which case the Regional C

focus exclusively on execution of that plan.

regions, the stakeholders may want to chardifferent course. The Regional Councils wi

a regular basis and convene the larger grou


60/191

Empower Regional Councils by giving th

Control over One Third of Economic Dev

Funds

Speed to market is critical, and New

many opportunities because our economic

development bureaucracy cannot make de

quickly and speak with one voice. In order

our economic development programs nimbresponsive, the Cuomo Administration will

third of economic development funds unde

control of the Regional Councils so they can

make decisions based on their local knowle

best opportunities within the region, while

two thirds of economic development funds

competition between regions to ensure thalargest opportunities Statewide have suffic

funding


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Competition for Economic Development

Regional Plans will be Measured and Aid

Based on Performance

Andrew Cuomo will base economic i

upon performance to the maximum extent

The one third of economic development fun

the control of the Regional Councils will inv

competitions within that region, while the t

of economic development funds will be sub

competition between regions, so the best

opportunities Statewide will have sufficien

This will help create a culture of competitio

performance-based decision making.

Provide Connections to Other Regions o

A regional approach to economic de


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connections between companies, universit

labor force in one region with the compani

universities and labor force in other region

State. As an example of connections betwe

the State should be connecting the financia

industry in New York City with the busines

outsourcing industry in Buffalo. There are

examples of related industry clusters in difregions benefitting from working with each

such as connecting the Micro-Electro-Mech

Systems cluster in Rochester with the

Nanotechnology cluster in Albany.

Support Regional Business Marketing Ef

Marketing and business attraction e

be a part of the states economic developm


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organizations have a deep understanding o

of businesses in their regions and a mission

economic development there. The Regiona

will serve as a forum for ensuring that the m

functions of the State and these private ent

are closely coordinated, so that site locator

companies understand that the State is spe

one voice when it comes to its marketing ef

Streamline the Process by which Grants

Payments are Made

The process for obtaining an econom

development grant involves multiple steps

multiple approvals by the ESDC staff and B

Certain grants are not finally approved by t

Board until the applicant has met, at least, t


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Once approved, the process of receiving fun

similarly convoluted. The entire process ca

three years before funds are received. This

must be streamlined to make New York mo

competitive.

The State will creates metrics to mea

length of time it takes from initial contact, t

application, to final approval, through to finAmong the other changes that the State wil

establishing is an electric payment drawdo

similar to that used by HUD and other fede

agencies. Once a grant is approved, funds a

transferred through an electronic request s

are usually available in a grantees bank ac

within 24 or 48 hours.

Promote International Trade


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in the Great Lakes region of the United Stat

Great Lakes Region has some of the highest

volumes of exports and has the greatest rel

exports of any of the large metropolitan are

nation. The upstate regions of Buffalo-Niag

Rochester and Syracuse are more export in

than the nation, have a growing base in the

services with Buffalo-Niagara showing a gr55.8 percent over the five year period of 20

2008, which exceeds the average growth ra

top 100 metros and of the United States as

is estimated that 8.6 percent of all jobs in th

Niagara region (47,900), 11.5 percent of th

Rochester (60,300) and 9.3 percent of the j

Syracuse (30,400) are export related. Thesthan the national average and more than th

in the top 100 metro areas 26


66/191

trade, commerce and tourism must be over

aggressive programs should be put in place

maximize current and future opportunities

Create Performance Metrics to Measureand Maintain Accountability

Private business relies heavily on pe

metrics to improve their operations and clo

analyzes the ROI of every investment. Ne

needs to integrate both of these principles

aspect of our economic development policyshould implement clear operating metrics f

execution of our economic development pr

including the period of time it takes to eval

implement proposals. We should benchma

between regions and set targets based on b


67/191

The need to objectively track, measu

analyze the ROI of various State program

perhaps of even greater importance. The S

does not have enough money to invest in ev

of program or project that could result in jo

and economic development. The need for t

analysis is crucial to the success of a region

economic development strategy, so that wemore clearly what is working in some regio

in others. This analysis should include both

tax credit incentive programs and economi

development grant programs. Today, the D

Budget uses a static scoring method that

there is no return to the State in terms of in

tax revenue from any of these programsasince there are no rigorous, objective analy

which of these programs actually work in p


68/191


69/191

T

4Targeting Incentives to Get

Yorkers Back to Work and

Attract, Retain and Expand

o revitalize New Yorks econo

create jobs, New York needs a

business climate that makes

competitive and an effective regional econo

development strategy and State bureaucra

implement our plans. In many cases, howe

York will also need additional incentives to

with other states and countries to attract co

to New York and keep jobs here. Especially


70/191

Targeted Tax Incentive Programs

New Yorks tax credit incentive prog

the last decade have been poorly targeted a

resulted in not using efficiently a large port

limited funds the State has available for eco

development. Indeed, in many cases these

were compensating for New Yorks poor bu

climate, including high property taxes. We

replace these poorly targeted tax incentive

with programs that are more directly relate

States and each regions economic develop

strategy.

A New Jobs Now Tax Credit for the

d l d h f h C


71/191

underemployed. Therefore, the Cuomo

Administration will work with the Legislatu

enact an emergency two year $300 million

Now tax credit program to encourage emp

hire unemployed New Yorkers. Any busine

increases its employment by providing a fu

a New York resident who has been unempl

least sixty days and keeps that person emp

the job for at least one year will receive a re

tax credit equal to the employer portion of

tax for that worker, up to a maximum credi

per worker. Based on metrics developed b

Economic Policy Institute27, the Jobs Now

would create over 165,000 jobs over two y

Given the prolonged period of high unemplwe are experiencing, providing jobs for New

must be the overriding priority of NYs econ


72/191

Based on metrics developed by the EcoPolicy Institute, the Jobs Now tax cr

would create over 165,000 jobs over two

Fix the Recently Enacted Excelsior TProgram

New York State this year allowed the

Empire Zone tax credit program and replac

a new, more targeted program called the Ex

credit program. Two-thirds of the more thmillion in annual subsidies under the curre

Zone tax credit program have gone to real e

development, utilities, retail and profession

firmstypes of businesses that are ancho

New York irrespective of this kind of tax in

d l t ffi i l it 't t i


73/191

development officials, it won't create a sing

will waste money by giving credits to comp

would have located or expanded in New Yo

these tax credits. Here are some of the cha

Cuomo administration will make: First, the

program offers a tax credit per job of $2,50

per job for five years. As Andrew Cuomo p

the New NY Agenda, we will give qualifying

businesses a tax credit equal to 100 percen

income tax receipts the State will collect fro

companies new employees for a period of

Second, The Excelsior program provides pr

credits based on the value of the property b

improved by the company's new investmen

thereby producing very little benefit. We wproperty tax credit on the value of the prop

improvement that is after the investment

other New York State R&D tax credit progr


74/191

other New York State R&D tax credit progr

will eliminate this limitation and expand R&

credits. Fourth, we will streamline the appl

approval process. When businesses are cho

whether to locate in New York or other stat

York economic development officials need

position to make commitmentspromptlyre

the availability of tax benefits.

Strive to Keep Prior Commitments

As a stop-gap measure to close this y

budget gap, the State took the extraordinar

of deferring the payments of tax credits to

range of businesses that had made decision

reliance on receiving these credits. This w

equivalent of borrowing the amount due un

deferral will not be extended again into the


75/191

deferral will not be extended again into the

Moreover, when the State does pay busines

funds owed under these tax credits, it shou

interest for the period of time the State has

money. Only in this way will New York be

seriously when it offers to use tax incentive

attract and retain jobs.

Because of the great importance of H

Preservation Tax Credits to the revitalizatio

downtownsespecially Upstatethe State

immediately end the deferral of payments

Preservation Tax Credits.

Targeted Economic Development Grants

Creating a good business climate so

businesses can be competitive and maintai

economic development grants These strat


76/191

economic development grants. These strat

targeted grants should replace the vast sum

legislatively directed capital spending that

represents politically expedient pork rathe

part of an integrated regional economic dev

plan. The Cuomo Administration will offer

distinct types of economic development gra

programs. The Revitalize NYs Economy

will provide grants for economic developm

investments that do not consist of either co

specific grants or grants to further the grow

high technology industry cluster. These w

competitive capital grants for such projects

preparing shovel-ready sites, repurposing

manufacturing and other facilities, creatingdowntown commercial areas and other job

projects The Strategic Companies progra



77/191


clusters that rely heavily on commercializin

university-based research.

Revitalize NYs Economy Grants

The Revitalize NYs Economy gran

competitive program that can cover a rang

projects that will lead to job creation and c

activity. These grants could be used for the

types of projects, among others:

Revitalizing blighted downtown arethem more attractive to business;

Developing shovel-ready sites for amanufacturing facility, repurposing

underutilized factories or other combuildings to attract new employers, infrastructure improvements neede

will have the greatest impact on the econom


78/191

will have the greatest impact on the econom

region. The criteria for success should incl

whether and to what extent the proposal:

In the case of a revitalization projectit advances a strategic objective of threvitalization or urban developmentclearly defined project (rather thadealing with a series of unrelated buthat improves the area in a way thatattract commercial activity, business

Leverages financing from other sourincluding private investment, federaor matching funds from other goverentities in the region;

Creates a specific number of jobs wireasonable period of time; and

Capitalizes on an existing pool of hucapital in the region

Strategic Companies Grants

tax incentives for certain businesses that ar


79/191

anchored to New York in return for their

to locate in New York or expand jobs or ma

investments here. In some cases, however,

direct incentives may be needed to induce

to locate or expand in New York. We need

the arsenal of the State and its Regional Co

limited pool of discretionary funds to close

with certain strategic companies. As with

economic development programs, the gran

subject to a clawback provision in the even

recipient company fails to create the jobs a

investment promised. In addition, busines

receiving these Strategic Companies grants

real importance to the region in question ain the Regional Councils strategic plan.

provide economic development capital gra


80/191

p p p g

of a competitive program to support the gr

high technology clusters that emerge from

consortiums of higher education and indus

will not be grants to specific companies, bu

centers of joint activity that a range of com

large and small participate in. In nearly all

these centers will leverage university-base

that is being commercialized by the compa

industry cluster. The process for these Inn

Economy Grants is described in greater det


81/191

T

5Make Higher Education a J

Generator: Higher EducatioIndustry Partnerships

he Regional Councils described

Attracting and Retaining Jobs

to coordinate the efforts of Sta

government in attracting, nurturing and re

businesses of all sizes to New York. There

set of businesses, however, where the invo

government requires a special set of policie

are the companies that rely heavily on hard

and research and development to achieve a

competitive differentiation and advantage.

ensuring that promising research is conver


82/191

new products, businesses and ultimately jo

This comprehensive strategy should

two related tracks, both of which involve cr

partnerships between institutions of highe

and private industry: First, an ambitious te

transfer program for connecting universit

researchers with the entrepreneurs and ve

capitalists who know how to turn their inv

into commercial products, and their comm

products into companies. Second, for the la

market opportunities, the State must conne

companies with our leading research unive

win the global competition for these busine

State must develop a comprehensive strate

commercializing these inventions and recr

retaining the businesses built on this resea


83/191

Technology Transfer

At both the national and state level,

policymakers have created programs to sp

transfer of knowledge created and refined

university setting to new and existing firms

create commercially viable products from t

knowledge. New York possesses all the ing

needed for this type of science and technol

innovation strategy to succeed, namely:

An intellectual infrastructure, i.e. unand public or private research laborthat generate new knowledge and di

Mechanisms for transferring knowleone individual to another or from oncompany to another;

Although New York possesses all of these a


84/191

challenge is that these elements are dispers

the States landscape. Our geography impe

stop shopping of the kind that investors an

can find on Sand Hill Road in California, or

Route 128 outside of Boston.

Another challenge is that while a nu

colleges and universities in New York State

pursue commercialization, but few institut

higher education in New York State can sup

campus-based technology transfer offices w

staff and budget needed to nurture inventi

are not yet ready to be licensed. As a resul

must actively work to foster the creation of

effective infrastructure to support technolo

transfer so that faculty inventions from all

the state can be appropriately developed T


85/191

Capital

New Yorks support for programs th

access to early-stage capital for the

commercialization of advanced science and

technology research is critical.

Cultivate alumni angels. Angel inoften provide an essential funding bseed funding from friends and familexhausted. For example, Cornell Unisponsors a group for its alumni who

invest in emerging businesses.32 So, the University of Pennsylvanias WhSchool.33 The National Science Founfunds the National Council of EntrepTech Transfer to provide support fo

establishing university angel groupsState will work to connect New Yorkand universities with that effort, as w

d i t d ti b t

higher education as well as represen


86/191

emerging industry clusters.35

Eliminate the Capital Gains Tax onInvestments in Start-Up and Early

Companies. In order to encourageinvestments in innovation and entrewe will eliminate the State capital gainvestments in start-up and early stacompanies.

As witAccelerate NYC fund managed by thePartnership, investment decisions shmade by venture capitalists with expthe particular sector. Not only will t

a level of non-political and expert demaking, it will help to create a pipelithese professional investors that wilsecure institutional financing as the business matures.

Leverage federal research grants.matching dollars for selected federa

grants that meet the test of applied rEstablishing the threshold test of anpeer reviewed federal research gran

Investment Program to establish un

f d f d 36


87/191

focused venture funds.36

Leverage tax incentives. To the extpermitted given budget conditions, eresearch and development tax credi

that engage in sponsored research ocollaborative projects with colleges universities in New York State, perhexpanding upon the Qualified EmergCredit. Requirements should align wexisting federal tax policies so that fface challenges in understanding whqualify, and which products or procequalify. Such a credit would encouracompanies to establish ongoing relawith university researchers and resecenters.

Culture

A culture of entrepreneurship is crit

success of commercialization of university

The Cuomo Administration will work to ins

are focused on and place value on

hi k l


88/191

entrepreneurship as a key elemeacademic research will set a toneefforts are a vital part of the futuState. These efforts can range frogestures to larger public events w

university presidents and industgovernmental leaders gather to csuccess.

Be Fair in Sharing Rewards. Wresearchers perceive that an instintellectual property policies fairthe rewards of commercializatiomore inclined to focus on this as activity. The Cuomo Administratseek the support of college and uacademic officers to ensure that policies are fair and that all faculresearchers are familiar with theinstitutions commercialization p

Prime the STEM student pipeliEncourage more students to entetechnology, engineering, and mat

graduates. Provide matching doll

b k d i t hi


89/191

company-backed internship prog

Collaboration

Only about six in 10 colleges and unirealize revenues that exceed costs for their

technology transfer operations.38

Foster commercialization socinetworks. Create a bridge amonstudents, faculty researchers and

industry collaborators to ensure understanding of the relationshipcampus-based research with ma

To maxim

to technology transfer and commercializati

resources, the State will encourage a comm

practice model that will draw the states c

universities into closer collaboration on tec

transfer and commercialization efforts.

Extend capacity. Use State officcreate a shared infrastructure to


90/191

create a shared infrastructure tosupport commercialization efforincluding developing agreementswhich institutions with higher leexperience and sophistication in

technology transfer could effectivadopt other campuses. Create tequivalent of extension agents orriders to provide technology trasupport to campuses for which in

a full set of programs and servicenot make sense.39

Bring in the big guns. Invite coluniversity presidents to participaindustry/firm attraction.

This could be dgeographically, but perhaps instediscipline, recognizing the extremdifferences in the needs of dispar

disciplines and industries.

Entrepreneurial Partnership

entrepreneurs who can take an important d

d l b


91/191

or invention and turn it into a real business

the more successful examples of this appro

group called Jump Start Inc., which was for

2004 by civic and community leaders in res

the economic decline of Northeast Ohio. Ju

primary resource is intensive entrepreneur

assistance delivered by former successful

entrepreneursmost of them serial entrep

who have started multiple new businesses.

entrepreneurs become directly involved in

start-up companies until the point at which

company is able to raise capital from privat

investors and recruit a capable managemen

Jump Start has invested about $4 mi

annually in high-potential, early-stage com

offers veteran entrepreneurs to help guide

million to expand their operations beyond

i


92/191

region.

As part of the NY Works Agenda, the

Administration will create a program simil

Start that provides entrepreneurial mentor

research-based start-up companies.

Research Based University-Industry Con

Technology transfer and commercia

efforts plant the seeds of emerging product

businesses. A different kind of effort is req

make New York the location of choice for la

economic activity in industries that rely he

scientific and technological research and

development.

Since the creation of Silicon Valley b

located there; Austin, Texas, whose success

th U i it f T t A ti d B t


93/191

the University of Texas at Austin; and Bosto

result of research conducted principally at

Massachusetts Institute of Technology and

University. The economic strength of each

regions is the direct result of the creation o

comprehensive university-based research

infrastructure which includes state-of-the-

research and development, pilot prototypin

workforce training and economic outreach

industry.

New York has one major success sto

the States efforts in this area: the Nanotech

innovation and industry cluster that stretch

the IBM Hudson Valley Research Park in Ea

through the Albany NanoTech Complex tha

the State University at Albany College of Na

nanotechnology jobs across New York State

(representing more than $2 5 billion in sala


94/191

(representing more than $2.5 billion in sala

wages) by 2015 when the Global Foundries

reaches full utilization. The States involve

an indispensable ingredient in the creation

major new industry in New York State.

New York has the opportunity to nu

development of similar consortiums of high

education and industry in other industry se

rely heavily on research and development a

commercializing university-based research

program of Innovation Economy capital gra

help support these efforts. The Innovation

grants will be issued through a competitive

so that it does not devolve to crony capitali

barrel politics. The Cuomo Administration

into place a clear set of guidelines and base

sciences, renewable energy and other clean

technologies and telecommunications


95/191

technologies, and telecommunications.

While the exact guidelines for an am

program of this nature will be developed in

six months of the Cuomo Administration, thfollowing are some of the criteria that shou

considered:

State funding should only be diretowards major science and technareas in very large economic maras nanotechnology, biotechnologrenewable energy, cleantech andtelecommunications. Although

commercialization, not basic resewhat the State is interested in, thstill be complementary federal reefforts which could leverage our investments.

The allocation of funding must bl it b d bj ti f t

a competitive potential for reten

expansion in the same science an


96/191

expansion in the same science antechnology area.

The individual university-based must have an implementation strenables integration of the skills aresources from as many academiinstitutions across the state as poaddition, the economic developmblueprint must allow regional ec

and associated industry clusters entire state to interact with and bfrom the intellectual and physicaof the main university-based con

All state funding should be provibasis of a minimum match of app$5 of private and federal funding$1 of State funding.

The goal of the Innovation Economy

Support Higher Educations Role as a Job

Generator


97/191

New Yorks public and private colleg

universities are among the States great eco

well as educational, assets. The State mustrange of policies that recognize this vital ro

higher education, including policies that en

SUNY and CUNY have sufficient tuition reve

a strong partner in economic development

*****

This program of planting seeds for fu

growth through an aggressive technology t

and commercialization effort while simulta

working to create university-industry cons

that hold the potential for creating major n

of economic activity will put New York Stat

leadership position in competing for the hi


98/191

6


99/191

6Training a Workforce for the

Century

New York States workforce develop

systems have failed to keep pace with the

transformation in the level of skills demand

todays job markets. This is true both in te

we prepare young people to enter the work

in managing the ongoing workforce develo

needs of those in the workforce for many y

skills are not well matched for todays jobs

Clinton recently described this skills-gap as

factor in sluggish jobs growth,

(T)he biggest problem [in

immediately drop from 9.6 to about

percent.40


100/191

Traditional workforce development

have allowed every sector of the economy w

stake in workforce development - from edu

government agencies to the business comm

operate in largely autonomous orbits. The

described by the National Governors Assocthat employers confront growing shortages

adequately prepared workers, yet high turn

discourage many businesses from making m

investments in employee education and tra

Low-skilled workers experience declining w

they lack the skills to secure better jobs and

resources to obtain higher-level skills.The critical role of New York State

Merging the workforce developmeneconomic development functions ofgovernment to create systems that a


101/191

government to create systems that aneeds of high-growth employers witseeking residents according to regiobusiness demand;

Recognizing the essential role of eduliteracy as the foundation for a stronworkforce;

Emphasizing the critical role of youtemployment in building the workfortomorrow; and

Making On-the-Job training partnerspriority.

Integrate workforce development and e

development functions

Workforce development programmi

engines with the greatest likelihood of econ

impact, and tailors educational and workfo


102/191

development programming to meet the cur

future workforce needs of employers in hig

industries. New York must adopt this demdriven approach and coordinate the effort

the Regional Councils that bring together a

stakeholders in a region that play a role in

development and job creation.

Massachusetts, Pennsylvania, Michig

and Ohio, as well as New York City are all e

this demand-driven approach that integrat

workforce development with economic dev

Here are a few examples of how these prog

work:

Michigan

employers, educators, government agencie

community leaders. As of early 2010, there


103/191

more than 30 regional consortia of employ

educators, economic development and wor

development experts operating as MiRSAsthroughout the State of Michigan. These M

focus on promoting economic developmen

growth and retention in industry areas whi

the construction trades, healthcare, manufa

forest and timber, and direct care. MiRSA g

applicants have the discretion to define the

borders based on the location of industry, r

on preexisting municipal or local workforc

investment board (WIB) boundaries. Giv

multiple industries exist within many work

investment regions throughout Michigan, m

WIBs sit in more than one MiRSA enabling

Pennsylvania


104/191

The State of Pennsylvania has also m

workforce and economic development func

effort to build strong workforces and attrac

retain business activity within the state. Jo

Pennsylvania works through defined region

local industry clusters and employs a numb

innovative tools, the most notable of which

Pennsylvania Industries Partnership Progr

IPP was established in 2004 as a mechanism

connect workers to in-demand jobs in grow

industries. The IPP funds collaborative effo

businesses, workforce development profes

and educators in order to identify the work

needs of targeted industries and to suppor

The Michigan and Pennsylvania mod

involved moving the workforce developme


105/191

beyond traditional geographic boundaries

more formalized regional approach that is

suited to match workers with the job opporcreated by regional industry clusters. The

integrate New Yorks existing workforce de

functions into a more formalized regional s

will have to take into account funding sour

whether local or federal, that may have geo

limitations for various reasons.

Use the Regional Councils to Coordinate

States Efforts

The Cuomo Administration will use

Economic Development Regional Councils

services provided by innumerable agents, s

local Workforce Investment Boards (WIBs


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Stop Employment Centers, county social se

departments, and educational institutions i

Community Colleges and Boards of CooperEducational Services (BOCES).

The process of coordinating workfor

development efforts is further complicated

that 28 different funding streams supportw

development activities in New York State.4

funding sources, many of which are federal

varying standards for program developmenand individual participation, and also opera

different fiscal calendars. While these facto

significant challenges to developing a mode

more consolidated and efficient approach t

workforce development these problems ca

exists to better align the efforts of the vario

agencies of government that are focused on


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workforce training and job creation activiti

Focus on Education and Literacy as the B

Blocks for a Strong Workforce

The building blocks for a more skille

workforce in New York State must begin w

unyielding commitment to the educational

literacy needs of all sectors of our workforc

youth and adult populations. Statistics for

educational achievement and literacy in Ne

Statefrom the dismal reading levels of m

elementary schools students, to sobering h

graduation and dropout rates, to the bleak

community college completion rates and as

this will be a major focus of both education

social service efforts of the Cuomo Adminis


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Address the Critical Issue of Youth Empl

The deterioration of national labor m

conditions has accelerated the collapse of t

market across the country. Teen employme

have been declining sharply since the fall o

well before the national job market began t

deteriorate.42 As of June of 2010, the teen

unemployment rate in New York was 25.7

nearly three times the national rate of 9.5 p

The negative implications of youth

unemployment on long term success in the

are profound. The Center for Labor Market

it th t th f th d d i t

especially pronounced for low-income and

youth.


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There are many models both within

outside of New York which attempt to addr

interrelated goals of keeping our youth in swhile simultaneously preparing them for th

the emerging job market. As Governor, And

Cuomo will be an uncompromising force in

promoting youth employment opportunitie

advocacy for funding, the creation of the st

public-private partnerships necessary to dr

term commitments , and in supporting the of programs which have demonstrated suc

keeping kids in school and keeping them on

to a productive adulthood, including:

Dual Enrollment Programs

students. These dual-enrollment programs

employed with great success and varying d


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emphasis in 40 states across the nation, as

the CUNY system. In fact, in many states ac

nation, the focus on dual-enrollment progrhas evolved into such an essential educatio

that every high school student within the s

given the opportunity to participate.

CUNYs dual enrollment program, Co

is collaboration between all 17 CUNY camp

240 of New York Citys 425 public high sch

Serving more 32,000 students each year, orpercent of all of New York Citys high schoo

population, it is the largest public urban du

enrollment program in the country.45 The 3

students who participated in College Nowi

2005 enrolled in close to 56 000 different c

Mentoring & Work Readiness Prog


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Mentoring and wok-readiness progr

had good success in engaging young people

educational and skills-development suppor

reinforces their individual values and prov

practical lessons about work in the real w

Hillside Work-Scholarship Connection (HW

Rochester is one such example. In HWSC, sc

based youth advocates handle a caseload o

students who may enter the program as ea

grade. The core mission is to assist particip

youth develop the skills needed to graduat

school, assess postsecondary employment

educational options, and the program requ

participation in work-readiness programm

d kl h

Invest in On-the-Job Training


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For both youth and adult population

Job (OTJ) training programs are an invalufor effecting new job placements and for cr

training opportunities which drive success

permanent employment placement, transit

advancement. These programs are also a w

employers because they enable a training p

tailored to individual business needs at sig

cost savings.48

DOL currently employs a nuOJT programs which match participating em

with qualified individuals who have been id

needing specialized training. The Cuomo

Administration will urge the Regional Coun

make OJT programs a priority in workforce

Collectively, these efforts will bring

workforce development efforts into the 21

t t th kf d f l


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to meet the workforce needs of employers

growth industries in each of New Yorks div

regions.


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7


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N

Address the Needs of Small Bu

ew York States small busines

up more than 99 percent of N

private employers and emplo

percent of the States private sector labor f

Nationally, nearly all net job creation in the

States from 1980 to 2005 occurred in firms

less than five years old.50 Although compar

statistics for New York are not readily avail

national trend almost certainly applies her

Nearly every part of the NY Works Agenda w

small business in some way, but these polic

be implemented and communicated in a wa

Enhance Access to Capital


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From 2006 through 2009,the number of loans to

small business in New YorkState declined 54 percent;f l d $100 000

Capital is the oxygen of business. If

cannot get access to capital to finance their

operations, they will stagnate or die. Many

economists argue that one reason our econ

weak and jobs are scarce is that many good

businesses are being starved for capital. Sm

businesses have continually struggled to ob

capital and credit necessary to sustain and

operations, and this condition has only beeexacerb

financia

econom

recessio

last two

decline was approximately 63 percent.51 A

element of the NY Works small business ag

get capital and financing flowing again to


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New York State currently sponsors a

array of programs that are designed to assi

Yorks small businesses in accessing financ

these programs leverage public money to s

private lending or investment, and most in

private institutions as partners in program

administration. Although some of these prhave had some success, on balance the prog

so scattered among multiple agencies that t

underutilized and not well known to their i

recipients.

get capital and financing flowing again to

businessesespecially small and medium

businesses that have limited financial reser

small businesses are typically directed to E

Regional Offices and program-specific part

information and assistance. In order to ma

andrew cuomo ny works agenda

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