For example, Bradford County, PA, a predominantly rural region in the northern tier,  is now the number one job creating county in Pennsylvania. New shopping centers are being built along with new hotels. Coffee shops and diners are bustling, freight rail and air service is surging  and schools and non-profit agencies are receiving unsubsidized funding that is able to go back into local communities. Farmers, who a few years ago were not sure how to stay afloat, are now investing in new livestock and new equipment. Bradford County is also enjoying nearly 0% unemployment – a far cry from what is happening due north.  Just recently at a seminar in Binghamton,  a Bradford County official said that if New York doesn’t want the drills, “they be happy to keep them in PA.”   New York can simply not afford to let that happen.

As New York goes through yet another public comment period, special interests and misinformation continue to dominate the conversation regarding drilling.  Opponents scramble to find evidence that drilling is unsafe while Pennsylvania, Ohio and West Virginia forge ahead – balancing the interests of environmental protection with economic opportunity.

The Governor and the DEC have put forth a rational approach to drilling that protects water resources and provides sound regulations to minimize the impacts of natural gas drilling. State officials are ready to move forward and it is time that they do. After nearly four years of development, the DEC has put forth a plan with detailed rules to promote transparency, protect air and water and ensure the well-being of local communities.

It is estimated that natural gas development in New York will spur $11.4 billion in economic output and create nearly 20,000 jobs in the southern tier and western regions of the state. These are areas, which combined, lost 48,000 payroll jobs between 2000-2010. The jobs created will be high-skilled, high-wage and local jobs. This comes at a time when New York desperately needs to act as a job stimulator and not an inhibitor.

In the year ahead, New York is facing nearly a $2.5 billion budget deficit and lower than anticipated sales tax revenue that will further add to the state’s budget woes. To this point, Governor Cuomo has demonstrated a sound understanding of what is needed to make New York competitive and we need to support his pragmatic approach to drilling. We have made significant progress this year to right-size the state’s economy, but we cannot continue to impede the economic opportunity that drilling provides. It is time to move New York forward.

The 2010 Top 100 drew 2,000 guests

A week from tomorrow, I’ll be attending my favorite event of the year. It’s the Rochester Top 100, a gala celebration that recognizes Greater Rochester’s fastest growing, privately held, locally based businesses.

This year, we’ll mark the 25th anniversary of the Top 100, which the Rochester Business Alliance puts on in partnership with the local office of the accounting firm KPMG LLP. What I love about this event, the area’s biggest business gathering of the year, is that it gives us a chance to celebrate as a community the considerable accomplishments of our homegrown enterprises. We’re expecting more than 1,500 guests for this year’s gala.

To be eligible for the Top 100, companies must be locally based, privately held and have at least $1 million in revenues for each of their last three fiscal years.

I’m proud to say that despite some very difficult economic times, we had a tremendous turnout of applications for the list.
I can’t tell you who is on it, but the list will be released Friday by our print media partner at DemocratandChronicle.com, which is also creating a special section highlighting the businesses for Sunday’s newspaper. And we’l have it on our website Friday as well.

But I can tell you that the companies are a strong representation of the Rochester area economy – growing businesses in technology, manufacturing, construction, financial services, retail, service industries and wholesale distributors.

And most of them are small businesses. Eighty-one of the 100 companies employ fewer than 250 people and nearly half employ fewer than 50. Some of the companies Rochester legends, tracing their start-ups back to the late 1800s and early 1900s. But 30 of the companies were launched within the last 10 years.

In all, it’s an impressive list, a real testament to our region’s entrepreneurial spirit and economic resiliency, and something which all Upstate can take pride in.

Throughout the two-day Accelerate Upstate conference and in follow up conversations that occurred for weeks afterward, participants developed specific recommendations for improving Upstate’s economic future given the demographics of and resulting political imbalance in New York State.  That input received- through group conversations, feedback forms, e-mails, and even tweets- was aggregated into the full agenda, which is available here and arranged according to eight key themes:

1)     A new attitude toward economic development is needed in Albany:

o    Each Regional Economic Development Council should head a more coordinated approach between state and non-state economic development groups.

o    New York State needs to create an environment more attractive for investment by addressing stringent taxes and regulations.

2)     Upstate must capitalize on its bi-national location and relationship with Canada:

o    The leadership of both New York State and the Province of Ontario need to convene to increase their working relationship.

o    Both sides of the border need to begin looking toward the future of both entities as a bi-national logistics hub.

3)     Workforce development programs need to be appropriately linked to employer needs:

o    The private sector, State leadership, and the federal government must work together to define future workforce needs and take steps to meet them

o    It is critical that we address both hard and soft skills across the K-12 continuum and into high education.

4)     Improved access to working capital is required for innovators and entrepreneurs to grow businesses:

o    New York State can and should allocate additional funds for early-stage technology companies.

o    Regional chambers of commerce should serve as matchmakers between private sector investors and startup companies.

5)     Both higher education and the private sector can benefit by increasing their relationships with one another:

o    New York State must work with its colleges and universities to make funding available for capital projects and match degree programs with emerging workforce needs.

o    The Higher Education Compact should be reformed to provide schools with more flexibility in implementing curriculum changes.

6)     Fresh water resources must be protected, and efforts need to be coordinated with neighboring states and provinces:

o    The federal government should restore funding to the Great Lakes Restoration Initiative (GLRI).

o    State leadership must engage in Great Lakes issues to ensure New York is prominently considered in future decision making on a national level.

7)     The public and private sectors must work more collaboratively across Upstate:

o    New York should implement policy that will facilitate and encourage public-private partnerships.

o    The Governor’s regional offices should be realigned to meet ESD and DOL boundaries (consistent with the new Regional Economic Development Councils).

8)     Upstate and Downstate can and need to work together on a wide range of issues:

o    Peers in local governments, business organizations, labor, and employers of all sizes need to collaborate, particularly with respect to issues of common interest such as energy policy, and Upstate “back office” support for Downstate companies.

o    The State would benefit by launching a “Sister City” program to match Upstate and Downstate communities with complementary industries.

The Partnership is committed to seeing this agenda implemented, and we’re committing the resources necessary to do so.  But it’s really not “all about us.”  Indeed, I’m sharing the Accelerate Upstate Action Agenda with you as well as to local, state, and federal government officials, our partners in economic development, and in Unshackle Upstate and the Great Lakes Metro Chambers Coalition, and the members of the ten NYS Regional Economic Development Councils, because this agenda is a road map for all of us.  If Upstate’s economy is really going to grow and in a sustaining way, we all have to look in the mirror, ask ourselves what our role is, and commit to action.

From the outset, we have taken steps to ensure that Accelerate Upstate is more than just a conversation; it needs to be, and is, about such actions.  That continues this week.  We welcome your continued input at accelerate@thepartnership.org.

As we continue to endure this difficult recession and fiscal crisis, it is more critical now than ever to do everything we can to make the climate in New York State as easy as possible for businesses to succeed.  This is the only way we can get through these difficult times. With that, I believe if Albany addresses the following business related issues, New York State can become a more viable and attractive place to maintain a successful business:

In order to build on our state’s current strengths and capitalize on our manufacturers and businesses that are already here and operating, we need to retool the Excelsior jobs program.  I am encouraged by provisions made in the recent budget concerning the Excelsior program, and hope to see more significant change in the future.  While the changes are small, such as the extension of the current tax benefit period from five to ten years, it shows businesses that our governmental leaders see that this program is not perfect, and still in need of retooling.  We need additional changes and improvements, such as addressing the limited resources invested in the program or the significant lack of regional input.  The current value of Excelsior is estimated to be less than half of the benefit of the Empire Zones program that it replaced.  Simply put, that is not enough.

Another area in significant need of attention is the increasing costs of Medicaid.  It is essential for Albany lawmakers to restrain the large and increasing tax burdens imposed by Medicaid.  New York State Medicaid spending is significantly higher in cost than in any other state. Medicaid spending this year, with the addition of federal increased assistance is slated to be more than $36B, $3.3B or 10% higher than FY09 levels.

As part of continued efforts to reduce spending in Medicaid, MACNY encourages the following:

• First, reduce “medically needy” loopholes.

• Second, lower the “local cap” on Medicaid spending by one-half percent each year, so that the inflation rate paid by individual counties will decrease significantly.

• Third, implement more aggressive fraud prevention and detection programs.

• Fourth, expedite the implementation of disease management programs.

• Fifth, rationalize the hours spent on personal care services.  The added costs of home attendant services, such as home shopping, need to reviewed and drastically adjusted.

In order for New York State to regain its financial footing, we all need to work together.  Albany needs to help create a sound business climate that allows for job growth.  Businesses are ready to invest.  What the business community needs is reassurance from the State Legislature and the Administration that they truly are valued in our State and that New York State wants to a partner to aid and not hinder growth.

(Photo Credit - Brett Carlsen, New York Times)

Synergy had been doing well in the Binghamton area. In 2008, the company expanded due to demand growth and “demonstrated superior sales and customer support,” according to Founder and CEO Corey Conklin. There was every reason to be positive about the company’s growth. Lee changed things for many businesses, as we are seeing down here in the Southern Tier.

Synergy representatives cited the costs to relocate to higher ground and other financial considerations in their decision to close. The financial considerations included taxes, energy costs, workers’ compensation and unemployment insurance costs. Quite simply – all things being equal – New York is just more expensive than other states.

This closure will result in the loss of 200 local jobs – yet another hit to the Southern Tier.  However, I respect the decisions that businesses have to make to remain operational.  Sadly enough, when you take the flood out of the equation you get a clear picture of what businesses are constantly challenged by – the cost of doing business in New York.

If New York continues to cost more than other states, it will constantly be at risk of losing business – whatever the catalyst may be.  I am confident that the Southern Tier will recover from the devastation of Tropical Storm Lee and our organization will continue to be a positive voice for business in Binghamton.  Stories like Synergy Solutions should provide a clear but painful reminder to Albany, that the best way to keep New York open for business is to simply cost less to be here.

With three meetings under our belts, enthusiasm is running high among members of the Finger Lakes Regional Council.

It’s not that we’ve drunk the Kool-Aid on New York state’s future. We realize there are a lot of challenges ahead on the road to economic resurgence, some of our own making and some imposed by the national and global economies. And the recent flooding in parts of Upstate certainly didn’t help.

But the Regional Council – one of 10 in the state – has been charged with drafting a strategic economic development plan for our area. As part of the process of creating this plan, we’ve been about assessing our nine-county region – its strengths, its struggles, its unfulfilled promise.

That part has been pretty easy, because the truth is, there are a lot of positive attributes about life in the Finger Lakes, attributes that the Regional Council is hoping to capitalize upon in its economic development plan.

Many of these are noted in our Regional Council’s vision statement, which we’re still tweaking in preparation for our final report, due to Gov. Cuomo on Nov. 14. The statement refers to our region’s sustainable natural resources, its assets as a tourist destination, its expansive arts and cultural offerings. Even more importantly, in terms of stimulating job creation, it talks about our diverse, well educated and dedicated workforce. Put these together with our proven history of community collaboration, our celebrated entrepreneurial spirit, the unparalleled intellectual capital and products held by local businesses and our institutes of higher learning, and it offers a great recipe for success.

But what’s also sparked our enthusiasm is the process. On this council, I am one of 21 representatives from across the region, people from business, labor, and government, all coming together to openly share expertise and ideas. There have been some complaints that there isn’t sufficient representation on the committee, but I don’t agree.

The committee is made of major stakeholders in the process, and their task is to oversee a region-wide process that includes many opportunities for community engagement, with three more public engagement sessions to be held before the Nov. 14 report deadline. I’ve also heard people complaining that it’s the same old ideas being put forth by the same people, calling it a sign that the region lacks the creativity needed to succeed in economic development creativity. But I disagree with that, too. I believe that what this really demonstrates is that we, as a region, have clearly identified our assets and our obstacles, and that we are focused on our vision – creating jobs and growing our economy.

While I don’t want to give the impression that this council process will solve all our region’s economic problems, or those of any other region in New York, I do believe that we need to credit the state with an important change in course. This process is designed to engage communities more in their own futures, to make the state more nimble and responsive, to invest taxpayer money more wisely. It is a coordinated approach, so that when a project comes to the Regional Council, the people who can make it happen – the regional leaders, the economic development professionals, and the state agencies – will all be there in one place, poised to act.

Perhaps you have a project in mind? Now’s the time to share your vision.

After months of postponements and with much fanfare, Governor Cuomo announced the launch and membership of his long awaited 10 Regional Economic Development Councils at the end of July.

Five Buffalo Niagara Partnership board members – including myself – are members of the WNY council.  Among the 28 members of the WNY Council, there are approximately 10 businesspeople, and we’ve formed an informal caucus among them, in order to try to make the business perspective as effective and focused as possible.

Each council’s initial job is to complete a strategic economic development plan for its region (our region is Allegany, Cattaraugus, Chautauqua, Erie, and Niagara counties) by November 14.  The format for that plan, as well as the process for completing it are precisely defined by the Governor’s office.

In my conversations with Partnership members, electeds and other government officials, and even council members, there is a lot of misinformation about what the councils can do.  I think that’s because of the extensive media coverage of sometimes unconsciously overhyped statements made during the council announcements. The implementation of the councils’ actual activities really is a “work in progress” due to the limited number of Cuomo administration central staffers who are directing this work only recently being able to turn their attention to it, and because there is a strong bias among them that any/all prior economic development planning efforts are “unworthy” of serious consideration in this process.

So, in the context of the above, let me try to provide you with a sense of what we’re trying to accomplish with the WNY council and of the council “culture” which doesn’t make it easy:

• It’s absolutely critical that there be a common, explicit definition of economic development which drives all of our council’s work.  We believe that definition is “expanding sustained private sector investment and jobs”.  And, in turn, all of the council’s specific recommendations should be prioritized according to how directly and quickly they achieve that outcome.

• The council’s plan is not (and should not be) “all about the money” and that’s for two primary reasons.  First, there’s really only very limited resources directly available in response to the councils’ proposals; it’s not the advertised $1 billion, but only $200 or so million across all 10 councils, with four councils getting $40 million each and the other six councils somehow splitting the remaining $40 million – $6.67 million each (ie. the expressed “competition” merely is for getting either of those amounts); and the sources of the $200 or so million – capital funds and tax credits – further limit the impact (eg. there’s no “cash” for something like a venture capital fund).  Second and far more significant (but less “sexy”), virtually every business person and economic development professional firmly believes (including ESDC President Kenneth Adams in his address at our Accelerate Upstate conference) the items which will have the greatest, most widespread, and sustaining positive impact on expanding private sector jobs and investment are removing government “barriers” and consciously organizing the agencies delivering government tools and services – including the revision of the criteria they used to allocate their resources – in response to specific economic development opportunities.  None of this costs $, most of it can be achieved by administrative order without legislative action, and if it is achieved, it’s a home run, probably a grand slam.

• The combination of a very tight schedule, a commitment to a prescribed process which includes meetings scheduled around the calendars of the state officials, the “reinventing the wheel” approach which comes from the bias against utilizing similar work done in even the recent past, and having all meetings open to the media and others definitely is not conducive to generating thoughtful work products achieved in an effective/efficient way.  It’s also likely to frustrate/turn off the business members of the council who represent the ultimate “customer” of what the councils are all about – private sector employers and investors.  We cannot let that happen.

So there you have it – my briefing of what actually is taking place in and around our regional economic development council.  We will work hard at making it “right” and as positively impactful as possible.  Indeed, we have lots of staff coordinating working groups and volunteers directly engaged to do so.

Andrew J. Rudnick
President & CEO
Buffalo Niagara Partnership

But I implore you, don’t let your disgust with campaigning discourage you from heading to the polls on Nov. 2.  Because this year, it is more important than ever that you vote.

Unshackle Upstate has renamed Election Day as Judgment Day for the New York State Legislature. That’s because there is so much at stake – specifically the future direction of New York state and its economy. And who we, the voters of this state, choose to send to the Capitol can significantly affect that outcome.

Voters will choose a new governor and lieutenant governor. They will also vote on state comptroller, attorney general and all 212 seats in the Legislature.  It is our chance to take back our state government, to put in office people who will do what’s best for New York – control spending, lower taxes and create jobs.

Just by casting your ballot, you remind all elected officials that your approval is neither automatic nor to be taken for granted. They have to earn your vote with service, and that means acting in the best interest of taxpayers to lower state spending and reduce taxes.

But for whom you cast that ballot will also send a strong message.

New Yorkers have long paid some of the highest taxes in the nation. Yet in the last two years, the Legislature passed laws that hit the average family with $1,300 in new taxes and fees.

This summer, US News reported that, over the past two years, New York’s per-capita state tax hikes totaled $414 per person – far more than any state including California, which has raised taxes by $312 per capita. According to the report, New York by itself accounted for 29 percent of all the state tax increases proposed and enacted since 2009.

The 2010-11 budget added $1.2 billion in new taxes, in large part to cover the whopping $136 billion spending bill and close an enormous – and growing – budget gap. Lawmakers balanced the budget by relying on their usual one-shots and temporary enhancements, not by addressing the state’s spending problems.

That makes it certain that the budget gap will just continue to rear its ugly head.  In fact, the comptroller estimates the state will face a cumulative spending gap that could exceed $37 billion through its fiscal year 2013-14, largely because lawmakers have failed to find a permanent solution to the discrepancies between spending and revenues.

Now when something like that happens in our homes and business, we have only one choice. We are forced to tighten our belts, to purchase only what we can afford. New York hasn’t done that, and we’re all paying the price – in lost jobs and neighbors, as people leave the area for better, more affordable opportunities.

That’s why who you choose to send to Albany is so critical. We need lawmakers who understand the dire realities and are willing to be leaders, to step up and be accountable for the tough decisions it will take to fix this mess.

If you’re uncertain who that is, I urge you to get informed on your candidate choices. For starters, check out the endorsements made by Unshackle Upstate as well as its Legislative Scorecards.

I’ve heard the anti-incumbent calls to “throw out the bums,” but I don’t buy them. There are incumbent legislators who get it, and who have done an admirable job of representing their constituents. But in cases where that hasn’t happened, new blood is needed.

I don’t necessarily support term limits, either. Why? Because you, the voter, have the right to impose term limits every time there is an election. If you don’t like what your representative is doing, you simply vote for his or her challenger and put a new person in office.

So again, I implore you to exercise that right. Cut through the campaign rhetoric, and make a choice for a better future. Vote on Judgment Day, Nov. 2.

Those scorecards – available at http://www.unshackleupstate.com/scorecard-new/ – offer a look at the voting records of all 212 legislators in regard to the important issues of reducing taxes, mandates and state spending.

That’s important information for voters to consider, but it’s just one part of Unshackle’s efforts to educate voters and mobilize them to vote on Judgment Day, Nov. 2 for the candidates who will truly represent taxpayers’ interests in Albany.

Up next will be Unshackle endorsements. The scorecard results will be one factor in making those endorsements, along with input from chambers of commerce in the candidates’ areas and a review of each candidate’s history of support for Unshackle’s platform.

Between now and Nov. 2, you’ll be bombarded with information on the candidates, each with a story to tell about why he or she should be your choice and why their opponent isn’t even worth consideration.

All I’m suggesting is that rather than relying on these commercials, take the time to do some research. See what groups like Unshackle Upstate, NFIB and the Business Council of New York State are saying about the issues and the candidate’s stances on them.

Then factor that information into a Judgment Day decision on Nov. 2, a decision to send to Albany only those candidates who truly understand the state New York is in and are willing to stand up and make the tough choices ahead.

That’s when we’ll announce the results of our 2010 Legislative Scorecards. We’re calling these scorecards a voter’s guide to Judgment Day, Nov. 2, 2010.

That’s because from these scorecards, which we’re issuing for all 212 New York state legislators, you – the taxpaying voter – will be able to determine which of our lawmakers acted with your best interests in mind. For instance, who voted for reducing taxes, cutting spending, reducing state borrowing and mandates. And who just paid lip service to those important issues.

Let me give you a little preview, share our methodology. We’ve been keeping an eye on all the legislators – what bills they sponsored, what they supported and what they opposed. And we’ve assigned a value to their actions.

For instance, legislators could earn up to 60 points depending on how they voted in committee and on the floor on items supported or opposed by Unshackle. For instance, those who opposed a bill that would have required overtime pay for farm workers (a bill that was fortunately defeated), earned points.

Also in the calculation, up to another 25 points depending on how they voted on the 2011 state budget. In other words, those who voted against it got 25 points, those who voted for it got 0.

Legislators had a chance to improve their scores by up to 15 points by sponsoring bills that Unshackle Upstate supported. But they could also hurt their scores, losing up to 15 points by sponsoring bills that Unshackle opposes.

But these scorecards, revealing as they may be, are just one step in Unshackle’s endorsement process. They’ll be factored in with other measures, such as whether the candidate has a history of supporting or opposing Unshackle, as well as the candidate’s responses to our questionnaire and input from the chamber of commerce in each candidate’s area. All will be used to compile a list of endorsements we will be releasing in the coming weeks.

Why do we do all this? Because we at Unshackle Upstate feel it’s essential that you enter the voting booth on Nov. 2 armed with the facts and prepared to make a judgment. Did the candidates on the ballot before you stand up for you as a taxpayer, take the actions necessary to lower your taxes and create jobs? Or was the candidate more interested in securing re-election by advocating for the demands of a select few?

Read the scorecards. Study our endorsements. Then on Nov. 2, you be the judge.

Go to the voting booth and help us take back our state government. Send Albany a message that our elected officials work for us – the state’s largest special interest group – the taxpayers.