Executive Budget Proposals Promote Economic Development Statewide

Governor Cuomo recently kicked-off 2017 with budget proposals that continue to support and build on an approach to economic development that emphasizes regional strategies and prioritizes ongoing investment in an innovation economy – at a time when New York State is experiencing historic highs in private sector jobs and a decrease in statewide and regional unemployment rates. ESD President, CEO & Commissioner Howard Zemsky spoke to legislators on Feb. 1 and offered highlights of those proposals, many of which involve public-private partnerships that leverage state funding and community assets with private investment to create economic opportunity. Highlights include the following:  

  • $750 million for another round of the Regional Economic Development Council (REDC) initiative, which since 2011 has guided State investment of approximately $4.6 billion into more than 5,200 infrastructure, community development and job creation projects statewide, leveraging more than $22 billion in private and other investment (and commitments creating and retaining 210,000+ jobs).  
  • $500 million for Buffalo Billion Phase II, building on the economic progress spearheaded by the Buffalo Billion that has revitalized Western New York. The proposed Phase II investment focuses on improving workforce development, expanding investments in downtown revitalization, life sciences and advanced manufacturing, and promoting continued growth of the innovation economy.
  • $55 million for tourism initiatives that will contribute to the ongoing health and growth of the tourism industry in New York State, which has created a record economic impact of more than $100 billion in recent years. With more than 234 million annual visitors, statewide tourism generated more than $63 billion in direct visitor spending and approximately $8 billion in state and local tax revenue.
  • $650 million to spur growth in the life sciences industry. The first investment will provide $15 million to support the buildout of the JLABS Innovation Center – a collaboration between Johnson & Johnson and the New York Genome Center with capacity for up to 30 life science startups..  
  • A three-year extension of the New York State Film Tax Credit Program at the existing funding level. Since 2011, more than 1,000 film and television projects have submitted applications to the program, generating an estimated $15 billion in spending and approximately 934,000 new hires in New York State.
  • $10 million to support the proposed Photonics Venture Challenge in Rochester – a multi-year competition and business accelerator program designed to support start-up companies that commercialize rapidly developing technologies. The Photonics Venture Challenge, the latest in a series of successful Upstate business competitions, would present $1 million to the most promising start-up company.
  • Ongoing commitment to high-speed internet access through the New NY Broadband Program, through the country’s largest and most ambitious state investment in broadband deployment, intending to connect every New Yorker to high-speed broadband by the end of next year. In 2015, the Governor and Legislature made a $500 million commitment to broadband deployment. To date, $54.2 million has been awarded to 25 projects through the program’s Phase 1, with significantly more commitment expected soon, in Phase 2.
  • Support for American manufacturing with the Governor’s “Buy American” proposal, with state entities giving preference to American-made goods for procurements of more than $100,000.