Majority Plan Creates Immediate Jobs, Grows Small Businesses & Attracts New Investments
The New York State Senate Majority today unveiled an innovative jobs and economic development program to get New Yorkers back to work. Through three targeted initiatives New Jobs New York will:
· Create jobs immediately to provide a much-needed economic boost out of this recession;
· Boost the confidence of small business owners to grow;
· Implement a tax incentivization program that works for businesses already in New York, and attracts new investments and jobs for the future.
The Majority, led by Senators William Stachowski (D-Lake View), Darrel Aubertine (D-Cape Vincent), David J. Valesky (D-Oneida) and Brian X. Foley (D-Blue Point) gathered with small and large business owners throughout the state at jobs-focused roundtables to learn about existing programs that work, need improvement, and where businesses need new programs to succeed in New York.
Senate Majority Conference Leader John L. Sampson said, “Our economy works best when New Yorkers are working. Creating jobs and attracting business through sound economic development helps grow the economy and halt the devastating impact of the fiscal crisis. Our job is to get people back to work. The Senate Majority will continue to build on its efforts to combat the unemployment crisis and get New Yorkers working again.”
Senator William T. Stachowski (D-Lake View) said, “Small businesses are the first to put money and jobs back into the community, and indeed are the foundation of economic growth and stability in New York State. Incentivizing business owners to stay and grow in New York through the ‘New Jobs New York’ initiative will create jobs and open doors for economic growth across the State.”
Senator Andrea Stewart-Cousins (D-35th District) said, “One of our top priorities for the State of New York is to stimulate the economy in ways that creates jobs and makes our businesses competitive. New Jobs New York initiative provides small business with necessary tools for creating the jobs that are vital to New York’s long term economic strength. I am proud to stand with Senator Sampson and my colleagues in the Majority Conference to support this initiative which can help put New Yorkers back to work.”
Senator David Valesky (D-Oneida) said, “The New Jobs New York plan addresses the specific needs of New York businesses and communities, and targets the very industries that have the most growth potential and offer the most promise for Upstate New York. Previous one-size-fits-all models were well-intentioned, but failed to spur the long-term growth we desperately need. This plan will not only put New Yorkers back to work immediately, but it will implement a smart and targeted long-term economic development strategy that will enable all regions of New York State to thrive in the new economy.”
Senator Diane Savino (D-Staten Island) said, “New York is where business wants to be, we just need the programs and opportunities in place to help them grow. Our plan is built around the recognition of all New York has to offer to businesses, including a highly skilled and educated workforce which will attract new investments.”
A RECORD OF PROTECTING & CREATING JOBS
Because job creation and economic revitalization are the Senate Democrats top legislative priority, this plan complements many initiatives that have already become law which have helped save or create 400,000 jobs, preventing the state from being in an even more precarious economic crisis than we already are.
Power for Jobs
Supporting more than 330,000 jobs, primarily Upstate and on Long Island, Power for Jobs provides low-cost energy to participating businesses who, in turn, keep jobs in New York State. The Majority is looking to build on the program’s success by passing legislation this year which will make the program permanent, among other enhancements.
Green Jobs NY
The first-in-the-nation “green jobs” program, this plans creates 14,000 good-paying construction jobs, lowers energy costs, and weatherizes more than one million homes. Local contractors, certified to perform the retrofits will be able to expand their crews, creating new and permanent jobs in green construction and additional jobs in local businesses and manufacturing that serve those new workers.
TANF/Federal Stimulus Funds Targeted to Infrastructure Upgrades & Community Needs
Targeted federal reconstruction dollars are developing a 21st century infrastructure model for New York, creating 50,000 new construction jobs in the process, as well as adding resources and new jobs to fields which have seen their need grow since the economic decline, including non-profit and community-based organizations. These funds also placed nearly 1,400 new police officers on the streets.
Other programs already passed by the Senate include reforms to the Minority- and Women-Owned Business (MWBE) program and IT-insourcing,
THE MAJORITY JOBS PLANS
RESTORE NY II
Legislation is necessary to create jobs quickly.
Restore NY II will establish thousands of new jobs within nine weeks of implementation by funding small-scale transformational demolition, restoration, and construction projects with an emphasis on small community construction and restoration projects.
Preference will be given to: (1) projects in blighted or distressed areas; (2) projects that incorporate the principles of smart growth, energy efficiency, urban agriculture and green building design; and (3) projects that incorporate an accompanying workforce development component. Projects must be ready to commence construction within 60 days of award.
Eligible applicants will be either municipalities or not-for-profit entities assigned by a resolution of the governing body of a municipality. Eligible activities are the same as Restore NY, but will also include green markets and urban agriculture, the development/restoration of urban parks or green spaces, and affordable housing renovation projects.
The timeline for job creation will begin when the first applications are approved by ESDC – in about nine weeks, or 63 days, after the enabling legislation becomes law.
About 75 jobs will be created for every million dollars invested in the RestoreNY II Program. The Program cost will be $50 million, in capital funding, which is expected to create about 3,750 jobs.
MAIN STREET INITIATIVE
Small businesses are the first to get us out of a recession.
The Main Street Initiative creates over 1,900 new jobs, allow businesses to retain an additional 2,220 existing positions and includes a growth model for grants and technical assistance which will give small business owners the confidence and resources to cultivate new business opportunities and begin hiring again. Comprised of five basic elements, components of the plan include New York Boost, an Incubator Network, Customized Funds, tax incentives for high-tech businesses, and a mobile jobs training program. These elements combine to improve access to capital resources and expertise, provide workforce training in crucial skill sets, and leverage private capital for investment in jobs and infrastructure.
The Main Street Initiative small business program is comprised of five basic elements:
- New York Boost – Makes an investment to existing providers of services to small business clients that have increased needs in the economic downturn. Provides funding to existing programs supporting a total of 43 centers that provide quality services to small businesses throughout the State.
- Customized Funds – Provides specialized funds to address specific regional, capital program structure or market failure issues.
o CDFI Revolving Loan Fund - creates micro-loans to businesses not eligible for bank loans, as well as one-on-one counseling and business development assistance.
o North Country Revolving Loan Fund - tailored to the unique needs of businesses and communities in distressed areas in the North Country, including Tug Hill.
o Biofuel Incentive Fund -jump-starts conversion of underutilized agricultural land to production for bio-energy production or for capital costs for building methane biodigesters for the conversion of energy from bio-waste on agricultural lands.
- Training-On-The-Go – Funds portable skills training facilities, comprised of semi-trailers with all necessary instructional equipment, to make training in high value occupations a reality for students in rural areas, incumbent workers, and those enrolled in educational institutions without the resources to equip cutting-edge training facilities.
- Incubator Network - Modeled on NYSTAR’s successful Centers for Advanced Technology (CATs) program this initiative provides operating funds for five years to statewide network of ten designated university affiliated incubators.
- START UP – Tax incentives for new high-tech businesses.
OPEN FOR BUSINESS NY
To stimulate our economy and maintain economic growth over the long-term, Open for Business NY supports targeted job creation in both legacy and innovation-based industries employing attractive business incentives and investments that will be the cornerstone of New York’s future in the global economy.
Replacing the flawed Empire Zone program, this plan implements the intent of the Empire Zones, to support existing businesses and attract new investments in a targeted manner, Open for Business NY, enrollment in this program allows participants to earn access to a variety of refundable tax incentive options, including:
· Jobs Tax Credit: Program participants are eligible for a Jobs Tax Credit ranging between $2,500 and $10,000 for each new job to cover a portion of the associated payroll cost.
· Investment Tax Credit: Participants receive a 10-percent tax credit on investments that improve physical plants.
· Research & Development Tax Credit: The federal government offers a 30 percent tax credit for investment in research and development. Firms participating in the program will are eligible for a research and development tax credit of 10 percent of their federal credit.
· Property Tax Credit: Firms who locate in distressed communities are eligible for real property tax incentives.
Open for Business NY will create and/or retain approximately 30,000 jobs for every $50 million invested. A total of 210,000 jobs will be created or retained by the time Open for Business sunsets in 2017
Senator Darrel J. Aubertine, Chair of the Senate Agriculture Committee and Vice-Chair of the Senate Energy & Telecommunications Committee said, “Creating and preserving jobs must continue to be the forefront of our agenda. It’s critically important that we continue advancing policies that are business and job friendly, including a permanent low cost power program to replace Power for Jobs that gives businesses the stability and certainty they need to make significant investments in New York. I’ve introduced my proposal for the Senate Majority with support from key business interests and I look forward to working out a plan with the Governor and Assembly to make this successful program even better.”
Senator Brian X. Foley (D–Blue Point) said, “Job creation and economic development continues to be my top priority as we help working-families on Long Island and across New York State deal with this economic recession. From hosting jobs roundtables in local communities to infusing economic development funding into our downtowns, I am fully committed to using the senate’s resources to help turn the corner on this recession and build a stronger, more prosperous New York State.”
Senator Liz Krueger (D-Manhattan), Vice-Chair of the Senate Finance Committee said, "For years, New York State has been stuck with out-dated economic development models that barely worked and even frequently failed to create new jobs. With this plan we are providing the State multiple new tools for supporting both rapid job creation and long term sustainable economic expansion throughout our great State. We believe this plan will support our businesses by allowing them to grow jobs for New Yorkers and to stay competitive in the global marketplace."
Senator Suzi Oppenheimer (D-Mamaroneck) said, "The 'New Jobs New York' plan will anchor existing businesses in New York and create incentives for new companies to relocate here. Our program contains benefits for small businesses, which are the leaders in new job creation. I applaud Senators Sampson and Stachowski for their leadership in developing a plan that will bring jobs to New York."
Senator Daniel Squadron (D-Brooklyn/Manhattan) said, “With so many New Yorkers out of work, we must find innovative ways to create new jobs that help people achieve self-sufficiency, while also investing in our state’s long-term economic future. That’s why I’m so pleased that Conference Leader John Sampson and the Democratic Majority are fighting so hard for programs that create jobs all across the state.”
Senator Neil D. Breslin (D-Albany) said, “Ensuring long- term economic development is a critical component to getting New York back on solid ground. My top priority is putting New Yorkers back to work as quickly as possible. The ‘New Jobs New York’ initiative will create jobs immediately and bolster job growth and retention.”