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Sunday, November 22, 2009

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Reform — and improve

Empire Zone program needs changing and must be more simple and efficient

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Sometimes it pays to hear people talk common sense. That's what occurred this week at a hearing on New York's soon-to-expire Empire Zone program. Developers and other speakers told Assemblyman Robin Schimminger the truth about what needs to happen. The question now is how much — or whether — the truth matters in Albany.

Schimminger, D-Kenmore, is chairman of the Assembly Committee on Economic Development, Job Creation, Commerce and Industry. He convened the hearing to help guide the state's thinking as the program nears its 2010 expiration.

Perhaps the most important truth to come out of the hearing is that, however it might be configured, New York needs to have this kind of program. Without one, this high-tax state will hemorrhage jobs and opportunities to states that are more business-friendly.

"New York must have a flagship economic development program," said Brian T. McMahon, executive director of the New York State Economic Development Council. "If companies can't rely upon these incentives, they're going to go to Michigan, Pennsylvania or North Carolina."

He's right, and not just that New York has to offer these kinds of incentives, but that companies have to be able to rely on them. Which brings us to the other points raised by speakers including developers Carl Montante and Rocco Termini; Alfred Culliton, chief operating officer for the Erie County Industrial Development Agency; and Brian Reilly, Buffalo's chief economic development officer. According to their good common sense, the next program needs to be:

- Simple, with clear, easily understood eligibility criteria. The current one is anything but clear.

- Speedy. Business operates on a timetable that is businesslike.

- Stable and devoid of politics. It can't change with every election, or businesses will conclude they can't rely on it.

- Decentralized. Western New York's needs are much different from Long Island's or Manhattan's.

- Up to date. Albany should study other states' programs to be sure New York's is efficient and competitive.

If Schimminger — known as a friend to business — can successfully bring this message to the Legislature, New York might end up with a program that is not only an improvement over the current one — generally viewed as a disaster — but one that will help Western New York's economy to start humming again.


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