1/6/2010

On Wednesday, January 6, Governor David Paterson delivered his State of the State Address.  The Governor laid out his blueprint to rebuild New York into a national model of ingenuity and strength and to rebuild the people’s confidence.

The Governor also took on the Legislature for past failures.  “My colleagues, the times are measured.  I would ask for your understanding that we dispense with the flourishes and formalities,” Governor David Paterson said.  He then launched immediately into an anti-legislative, anti-special interest theme that he used recently in plugging a deficit and trying to bolster his poll numbers.

Fiscal Reform

The Governor outlined his plan for fiscal reform that included real and lasting cuts to the bureaucracy, a merging of agencies the duplicate efforts, and a long-term strategy for fiscal planning.  He also plans to make government more accountable and transparent to taxpayers by deploying EmpireStat, a new program to track the progress of State agencies.  EmpireStat will be a critical tool for the Governor and the public to access whether the State, its agencies and authorities are making real progress.  The Governor also proposed reform legislation and would cap the growth of State government spending.

Ethics Reform

In his address, the Governor proposed the Reform Albany Act of 2010 that puts the interests of the people ahead of the lobbyists and special interests.  The goal of this legislation is to bring fairness and openness to the governing process.  The Reform Act would include a new and independent Ethics Commission for overseeing Government.  This Commission would be comprised of individuals who have no relationship with the State officers they oversee and make fundamental change to the way Albany operates. 

He also proposed a new public campaign finance system that would drastically reduce the maximum campaign contributions, ban corporate contribution, and provide for a 4:1 public matching system with enhancements to encourage participation.  The Governor stated, “The monied interests – many of them here today as guests – have got? to understand that the days of influence in the Capitol are numbered.  No one person or group is above any others and any more or less deserving of any hardship or pain.”

Governor Paterson also proposed under the Reform Albany Act term limits for members of the Legislature as well as statewide elected officials by limiting State Assembly and State Senators to six, two-year terms and limiting statewide office holders to two, four-year terms.

Economy and Jobs

In his speech, the Governor also proposed a plan that would help form the foundation of New York’s economic comeback, which includes building a manufacturing base; a modern energy infrastructure and a commitment to helping people lift themselves up. He stated that this would be accomplished with an economic development program that is suited to the times we live in and the jobs that the people of the State aspire to.

Also proposed was the Excelsior Jobs Program that would replace the existing Empire Zones.  A collection of three aggressive tax incentives would be the centerpiece of this program; a $25 million New Technology Seed Fund to create the next Silicon Valley right here in New York; an initiative to establish the infrastructure for a revived New York Insurance Exchange; a reformed Power for Jobs Program; and the Manufacture Legacy Program to buy up, retrofit and sell abandoned manufacturing sites across the State.

The Governor stated that to rebuild New York’s economy would mean creating opportunities for all New Yorkers.  A more diverse and competitive business climate would mean more jobs and more money, which is why he believes that investing in MSBE is a key piece of his overall economic development strategy.

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The next step for the Governor will be to release his Executive Budget on January 19 to the Legislature.  At that time, we will see exactly how the Governor plans to address the current budget deficit; what cuts he is proposing; and how he plans to pay for various programs.  CTANY has already met with Executive Staff and the Division of the Budget to strongly advocate against any new taxes placed on our industry.  

We will keep you informed every step of the way.