The Council has welcomed separate jobs proposals offered by the Senate and Assembly, but warned that any development plan must address business's main priority: cutting New York's consistently above-average job-creation costs.
On March 10, Senate Majority Leader Joseph Bruno proposed "Excell-NY," a plan highlighted by targeted tax cuts and a new business development infrastructure. The plan would cost $7 million in 2004-05, with costs growing to $50 million when the program is fully effective, the Senate release said. Tax relief would be about $40 million next year, and would grow to $283 million when fully effective.
On March 9, Assembly Speaker Sheldon Silver proposed "NY@Work," a $525 million plan that would: extend the state's Power for Jobs program; change the state's economic-development administration; impose new restrictions on the state's Empire Zone program; promote industry investments; and invest in workforce education and training focused on high-tech jobs.
"We welcome these proposals and hope that lawmakers can embrace the good ideas offered in crafting a job-growth plan that will also focus on reducing the high costs that do the most damage to our job growth: taxes, workers' compensation costs, energy costs, and health insurance costs," said Business Council President Daniel B. Walsh.
The Senate plan would: expand the R&D tax credit from 9 to 40 percent, with the credit refundable and available for four years; create a local-option property tax rebate to developers that finance costs of outfitting or retrofitting technology parks to accommodate new businesses; add Empire Zones in the 11 counties that lack one, and expand zones in Genesee and Orleans counties; permit expansion of fully utilized zones if that promotes high-tech growth and attracts out-of-state jobs and investments; eliminate the petroleum business tax on kero jet fuel; create five regional centers to offer emerging businesses innovation capital, venture capital, and technical and business expertise; and create four capital funds to provide matching funds for early-stage companies and federal grants.
The Assembly plan would: extend the state's Power for Jobs program and modify it with unspecified changes; impose new restrictions on the state's Empire Zone program; establish a "Make-It-Here" manufacturing initiative that would focus on small manufacturers and niche markets, flexible manufacturing, and R&D: invest in high-tech and biotechnology/biomedical research and commercialization projects; continue capital support for high-tech research at academic institutions; create a capital fund to foster investments in business incubators for start-ups and "accelerator" facilities for later-stage companies; and change the state's economic-development administration.