As municipalities in New York continue to apply for assistance from Gov. Andrew Cuomo’s Financial Restructuring Board for Local Governments, a federal judge has ruled that the City of Detroit can proceed with filing for bankruptcy.
The ruling means the city can cut billions from payments that are owed to city employees, retirees, investors and other creditors. Unions and pension funds had fought the bankruptcy on grounds that the city has not negotiated in good faith with creditors. The judge ruled that negotiating with creditors was not an option for the city due to the sheer number of creditors, which totals more than 100,000.
Public employee unions representing the city’s workforce and retirees have said they will appeal the court decision.
The Detroit case is an extreme example of the consequences for municipalities that fail to develop and follow multi-year fiscal plans.
The Public Policy Institute, the research and education arm of The Business Council cites data from the State Comptroller’s office that more than 100 local governments in New York do not have enough cash to pay 75 percent of current liabilities, and almost 300 localities ended 2010, 2011 or both, with a deficit.
Business Council member Time Warner Cable, a leading telecommunications company and service provider, plans to develop a $7.3 million Business Services Center in the Syracuse area, creating 95 new jobs over the next four years and moving 171 existing Syracuse-area jobs into the new facility. The project is contingent on a lease agreement and Onondaga County IDA sales tax benefits approval.
“We’re proud that our rapid growth has been part of the revitalization of New York’s economy,” said Ken Fitzpatrick, senior vice president and chief operations & transformation officer for Time Warner Cable Business Class. “This specialized facility will help us serve current and future business customers across the Northeast even more effectively and builds on our strong presence in Central New York with new jobs and investment.”
The new multi-functional center on Erie Boulevard, which is expected to be open for occupancy in spring 2014, will serve the company’s commercial customers in the northeastern United States. This will be the first ever consolidated Business Services Center of its kind for the company. The company plans to occupy a ground-floor space in a largely vacant and underutilized shopping center.
This announcement adds to Time Warner Cable’s longstanding presence in New York State. The company employs more than 10,000 people across New York state.
State University of New York Chancellor Nancy L. Zimpher named Dr. Gregory L. Eastwood officer-in-charge of SUNY Upstate Medical University effective immediately. Dr. Eastwood previously served as president of Upstate from 1993-2006.
“I am honored to take this leadership position, alongside the many faculty, staff, students, and volunteers who comprise Upstate Medical University and make it such a fine institution of learning, clinical care, and research,” said Dr. Eastwood.
Dr. Eastwood is a University Professor, one of the highest honors SUNY can bestow, and served as President for 13 years at SUNY Upstate Medical University between 1993 and 2006, and previously was the Dean of the Medical College of
In his capacity as University Professor he is a member of the Upstate faculty, teaching and pursuing scholarship in the Center for Bioethics and Humanities.
Following his departure from Upstate Medical University in 2006, Dr. Eastwood served as Interim President of Case Western Reserve University, where his term ended in July 2007.
CenterState Corporation for Economic Opportunity, a nonprofit that promotes economic development in the Syracuse area will receive a $225,000 federal grant, which is expected to generate an estimated $29 million in exports during the next three years for the digital device industry.
CenterState will provide $475,000 in matching funds for the grant through the International Trade Administration’s Market Development Cooperator Program for exports to Asia.
The Brookings Institution estimates that for every $1 billion in increased export sales, more than 5000 jobs are created and workers earn 1 percent to 2 percent higher wages. Doubling exports in the Syracuse metro area from $3.3 billion to $6.6 billion offers the potential to create 18,000 new jobs, according to CenterState.
Gov. Andrew Cuomo spoke at Onondaga Community College yesterday where his remarks focused on Start-Up NY and taxes. The Governor called New York’s tax rates “onerous,” and promoted his plan to completely eliminate state taxes for some businesses for a designated time period, as opposed to lowering the tax rates for all companies across the state. Specifically, he noted that the did not want to reduce taxes downstate, and was focusing Upstate’s economy as it has been, “shedding job and people for decades.”
Read more on the Governor’s trip on the Syracuse Post Standard website.
A high school in near Syracuse is proposing cutting 16 percent of the athletic department budget and eliminating eight teams and 24 coaching positions. As Donnie Webb of Syracuse.Com (The Post-Standard) wrote, that the proposal “spawned discussion about making residents pay for their kids to play sports.” While there may be discussion, it should be noted that it’s against the law in New York, and has been so since 1991. Webb zeroed in on the reasons why.
Syracuse recently ranked tenth on the list of top 10 cities for renting over home buying. CreditDonkey ranked metro areas based on affordability, property taxes, and the average credit scores. The Post Standard has more on why renting may be the better option in the Syracuse area.
Business Council member Destiny USA keeps on growing, this time with help from a international retail group, reports Kevin Tampone of Syracuse.Com (The Post-Standard). The eight stores are all new to the U.S.
Click here to get the list of new stores and what they carry.
Kevin Tampone of The Post-Standard (Syracuse.Com) wrote about CenterState CEO President Rob Simpson’s defense of Syracuse amid criticism of the city’s economic woes. He took particular umbrage at a Carl Schramm column that appeared on the Forbes.com website in February. In it, Schramm wrote”Today Syracuse’s civic distinctions are embarrassing.” Schramm is a university professor at Syracuse University and former head of the Ewing Marion Kauffman Foundation.
Click here to read more.
This is business after all. It also comes under the heading of interesting, a cow that fetched a record-high price at auction… a national record… nearly $80 thousand more than the previous record!
Marnie Eisenstadt of Syracuse.Com has the interesting details and the video of the auction.