Tom Rivers of the DailyNewsonline.com writes - “Gov. David Paterson and the majority of the state Legislature wants to scrap the Empire Zone program and come up with something new, a program that isn’t so generous to businesses.

The Empire Zone rewards companies that create jobs and make capital improvements. Local economic development agencies and state-wide business groups have praised the program for fueling business expansions in the state, including rural communities such as Genesee, Orleans and Wyoming counties.

Paterson’s budget proposal would retroactively apply new criteria for qualification to existing Empire Zone participants. A substantial number of the 9,800 businesses getting Empire Zone benefits could be removed from the program, including companies that have made major capital investments in New York, according to the Business Council of New York. The zone-certified companies employ approximately 380,000 people…

The Business Council of New York State, The New York State Economic Development Council and The Independent Power Producers of New York all oppose Paterson’s changes. The groups last week issued a joint statement, asking for the governor and Legislature to continue the program without drastically reducing the benefits.

The tax credits needed “to offset uncompetitive high costs, particularly property tax costs in New York,” the groups said in a news release.”

To read the rest of the story click here.

Jennifer Dloughy writes in the Times Union - “Researchers at X-Ray Optical Systems Inc. in East Greenbush have developed an analyzer that can instantly measure the amount of lead and other toxic metals in body fluids — a big improvement over current blood tests that can be expensive and time consuming.

But even with a demonstration product in his hands, CEO David Gibson says his company doesn’t “have the cash to take it from that to the marketplace.” Instead, “we’re sitting there in the valley of death,” Gibson said, referring to the time span between product development and commercialization — where sometimes even the most promising ideas go to die.

Legislation before Congress seeks to bridge that gap for a select group of entrepreneurs, such as Gibson, who have recently used federal dollars to develop new technologies. The measure, sponsored by Rep. Paul Tonko, D-Amsterdam, would create a new grant program for companies whose federal research and development dollars are drying up — just as they begin focusing on pushing new products to market.

Right now, Tonko said, “We just take people halfway through the journey.”

To read more click here.

Paul Post writes in the Saratogian - “he long-awaited deal to name an Aqueduct Race Track gaming operator has fallen apart, casting a pall over New York’s racing industry.

Gov. David Paterson on Thursday announced withdrawal of his support for Aqueduct Entertainment Group LLC to run the racino that’s slated to get 4,500 video lottery terminals.

The facility would give New York Racing Association the funds needed to boost purses and make much-needed Saratoga Race Course improvements. Without it, NYRA’s ability to continue racing might be in doubt, but the firm declined comment about the deal’s collapse.

“The Division of the Lottery has concluded that it cannot issue a gaming license to Aqueduct Entertainment Group (AEG),” Paterson said. “Therefore, the state has officially withdrawn its support for AEG to develop and operate a VLT facility at Aqueduct. The executive branch advocates that the selection of the Aqueduct VLT franchisee be done pursuant to an expedited, transparent, apolitical and publicly accountable procurement process.”

To read the rest of the story click here.

On Monday March 8th, more than 200 New Yorkers attending Small Business Day in Albany listened to New York State Comptroller Thomas DiNapoli announced the creation of a new Small Business web site. DiNapoli went on to tell those in attendance that the site, part of Your Money New York.com, was designed for small business owners and New Yorkers interested in starting a business with the essential resources needed to create and grow their business. The new section offers access to reliable information on how to start a business, get the appropriate permits and understand small business tax implications, as well as survive tough economic times.

“The importance of small businesses to our state’s economy cannot be overstated,” DiNapoli said. “Small businesses provide half of all private sector jobs. They’ve created nearly 70 percent of all new jobs over the past ten years. New York needs small businesses, and we need to do a better job to help small businesses thrive. This new small business section of Your Money New York is a good start. It provides a lot of useful tools for New Yorkers who already own small businesses and for those looking to start one.”

To visit the website click here.

E.J. McMahon of the Manhattan Institute’s Empire Center for New York State Policy, which recently issued its Blueprint for a Better Budget asks in his column in the New York Post -” Who can impose financial control on the state itself?”

In his State of the State mes sage in January, Gov. Pater son announced that Lt. Gov. Richard Ravitch would “take the lead in [developing] a four-year plan for fiscal recovery.”

Since few believed Paterson would still be in office after 2010, it seemed the lieutenant governor had embarked on an academic exercise with little relevance to this year’s budget process. Now, however, Ravitch’s project is about to become much more relevant.

Ravitch reportedly had been planning to unveil his first recommendations this week — a schedule that may now have to accommodate a transition to the governor’s office (or then again, maybe not, based on Paterson’s declared intention to stay put).

A key question either way: Will Ravitch put a deficit borrowing option on the table?
A hint to that effect appeared in the Feb. 28 New York Times profile of the lieutenant governor: The article recounted a phone call he took from state Comptroller Thomas DiNapoli, asking about “a rumor that Mr. Ravitch supported the state’s taking on more debt.”

To read the rest of the Column click here.

Mark Scheer of the Niagara Gazette writes - “Like most people in Niagara Falls, Ferry Avenue resident Aurelia Martin gets a bill from National Fuel every month.

Generally, it runs about $200.

Sometimes it’s a little higher.

Either way, Martin knows she can’t afford not to pay it.

“The way they do it, it’s hard to gauge by your bill,” Martin said. “I don’t even really try to understand what it’s all about.”

Martin’s not alone in that respect. When it comes to paying for a vital service like home heating, it’s not uncommon for National Fuel customers to simply send a check, not knowing exactly what they are getting for their money.

So what happens to the average customer’s payment?

A portion of the proceeds are returned to the company in the form of profit. The largest portion covers the cost of the fuel, delivery of the product and the company’s operational expenses. A rather hefty chunk actually gets sent to the state of New York to cover sales tax and other fees.

Where does the money go?

According to National Fuel, every dollar of revenue received from the average customer is split up into five major categories — gas purchased, other operating costs, taxes, earnings and interest charges.

The largest percentage is devoted to the cost of the actual fuel and the price for delivering it to homes and offices. ”

To read the rest of the story click here.

In an op-ed that appeared in Crain’s, Kenneth Adams, president and CEO of the Business Council of New York State, Inc. stresses the importance of creating private sector jobs as the means to rebuild New York’s economy.

“Last year’s federal stimulus package seems to have made a terrible job-loss situation less bad. But we are not out of the woods. With national unemployment stuck at around 10%, the inevitable question is: What should government do next?

Lawmakers, especially here in New York, must remember that the solution is not for government to “create jobs” itself. Sustainable jobs that add economic value and strengthen (rather than tax) our communities come from the private sector. A better question might be: What should government do to encourage private-sector job growth?

In New York’s case, there are two answers: Remove existing barriers to business investment and job growth, and provide targeted incentives to support job retention and job creation.

The high cost of doing business in this state discourages new investments by businesses and smothers entrepreneurs in emerging sectors. As a result, New Yorkers, especially the young and well-educated, continue to leave for better opportunities elsewhere.

The biggest step for job creation here is a more competitive business climate with lower taxes, lower state-imposed costs in areas like energy and health coverage, and less burdensome regulations. But such improvements will take time to happen. Until then, New York can take smaller steps by offering more-targeted and cost-effective economic incentives to help offset our competitiveness burdens.”

To read the rest of the op-ed click here.

A Word From the Wise

Thomas Friedman in a recent op-ed in the New York Times writes about the need for business to increase investment in the US - “I was traveling via Los Angeles International Airport — LAX — last week. Walking through its faded, cramped domestic terminal, I got the feeling of a place that once thought of itself as modern but has had one too many face-lifts and simply can’t hide the wrinkles anymore. In some ways, LAX is us. We are the United States of Deferred Maintenance. China is the People’s Republic of Deferred Gratification. They save, invest and build. We spend, borrow and patch.

And this contrast is playing out in the worst way — just slowly enough so the crisis never seems acute enough to take urgent action. But, eventually, infrastructure, education and innovation policies matter. Businesses prefer to invest with the Jetsons more than the Flintstones, which brings me to the subject of this column.”

To read the rest of the Column click here.

“The latest numbers on job losses show that New York must cut spending and lower taxes to spark economic recovery in our state,” said Kenneth Adams, president and CEO of The Business Council of New York State, Inc.

According to the New York State Department of Labor’s (DOL) revised year-end job loss report, the recession deepened significantly in New York in 2009. The state’s average annual unemployment rate was 8.9 percent, the highest since 1992. It was up from 5.3 percent in 2008.

“Last year Albany politicians tried to tax and spend their way out of this crisis by raising taxes and fees by $8 billion. That only made the situation worse. In 2009 we lost 209,900 private sector jobs in New York and next year’s state deficit is now projected to be $9.1 billion,” said Adams.

“New York’s economy needs relief in the form of lower taxes and lower government spending in order to recover. Any new taxes will slam economic recovery and new job creation,” added Adams.

From April 2008 to December 2009 New York lost 352,700 private sector jobs, according to DOL.

Hundreds of farmers from across New York converged on the State Capitol Monday urging legislators to back off on a series of measures that aim to drive more family farms out of business, killing local agriculture and jobs.

The theme of the Capitol rally was: “Don’t plow us under!”

“Albany has spent the past year increasing our taxes, increasing our fees, and debating bills that will turn our family farms into factories, and we are simply tired of it,” said Dean Norton, president of New York Farm Bureau.

Kenneth Adams, president and CEO of the Business Council of New York State, Inc said, “New York’s high taxes and intense regulatory environment have driven jobs and people from our state. The success of family farms is vital to New York’s economy. Last year’s budget made a bad situation worse by adding billions of dollars in new taxes and fees in the middle of the recession. This year, the legislature must change course and take action to lower the cost of doing business in our state to ensure economic recovery.”

The farmers came to Albany to bring attention to the following issues:

– An ill-conceived, outdated labor bill that would force family farm operations into a labor system more appropriate for factories.

– A roll-back of excessive regulations, paperwork, and taxes and fees on family farm operations.

– A failing infrastructure, preventing efficient day-to-day transport of produce and milk to New York consumers.

– A DOT proposal to ban farm trucks from rural farm roads across the state.

– Broadband expansion that has bypassed rural New York.

For more information click here.