The possible loss of the upstate economic czar (May 2008)
Just one month after touting his administration's new upstate economic development offices in Buffalo, Gov. David A. Paterson is moving away from the year-old system giving equal powers to upstate and downstate job-creation czars.
The governor is looking to have just one statewide economic development boss -- leaving uncertain the future of Daniel Gundersen, the Buffalo-based co-chairman of the Empire State Development Corp.
Newspapers across Upstate New York State published editorials commenting on the situation. Each newspaper published its own opinion, reached independently. The Buffalo News has agreed to host these editorials on its Web site to make it easier for readers across the state to see them. Here are the editorials:
Batavia Daily News
Don't deny upstate a voice in its future
Reports that Gov. David Paterson could do away with the upstate office for Empire State Development Corporation are troubling. Before he pulls the plug on the system of upstate and downstate co-chairmen, he should consider:
--The dual system has been in place only a short time. Dan Gundersen was put in charge of the upstate office in January 2007. The economic problems plaguing most of upstate New York haven't developed overnight, and can not be solved overnight. Gov. Paterson has said the co-chairmen system "wasn't working." But neither was the single-chairman system that preceded it.
-- New York State is all one state, it is true, but upstate and downstate have unique characteristics, just as different members of the same family have different personalities and qualities. A one-size-fits-all economic plan doesn't work. What makes sense in New York City too often does not work in the rural areas of the state. Yet, the stores, farms, schools, hospitals and other small businesses that form upstate's economic network are essential to the economic health of the state as a whole. Downstate cannot flourish on its own. It ignores upstate at its peril.
-- The upstate office under Mr. Gundersen has made progress even in a hostile economic environment. Steven Hyde, president and chief executive officer of Genesee County Economic Development Center, says Mr. Gunderson is "a guy who really gets it, from an economic development standpoint." Mr. Gundersen has secured new funding, developed regional blueprints, and played a major role in shining the light on upstate, Mr. Hyde said. "He is highly capable. I would hate to see him move on. His post disappearing would certainly slow our work." The state is facing budget pressures, true. "But even in hard economic times, you have to invest to be ready when times are better," Mr. Hyde warned. "This is no time to tear that fabric down."
--The team which has been advising Gov. Patterson in seeking a replacement for Patrick Foye, the downstate co-chairman who resigned after Gov. Eliot Spitzer left office in March, is made up mostly of executives of large downstate businesses. Their recommendation to revert to the single-chairman system is not in the interest of upstate, which many of their businesses have abandoned as they relocated either downstate or out of the state completely. Upstate needs to be represented on any economic advisory board that makes decisions affecting upstate.
-- If there is a restructuring of the Empire State Development Corporation, it should be done in such a way that upstate interests are neither harmed nor ignored. Someone needs to have the power and passion to promote the upstate region. If he dissolves the current co-chairmen system, Gov. Paterson needs to have a plan for a system that continues the good work that has been done so far upstate. The governor needs to make sure upstate will have a voice in its own future.
A voice in our own future. Respect for our unique qualities, strengths, and contributions. Support as we work to improve on our weaknesses. That's all we upstaters ask. A place at the family table.
Binghamton Press & Sun-Bulletin
Paterson must not abandon upstate: Region’s economic chair faces the ax; state aid is cut
New York Gov. David Paterson has said the right things since taking over for the disgraced Eliot Spitzer, but the gap between Paterson’s words and deeds regarding the upstate economy are alarming.
This March in Buffalo, Paterson expressed confidence that the $1 billion upstate economic revitalization fund — established by Spitzer — would remain part of the state budget. He said he was very serious about his commitment to upstate.
Just a few weeks later, Paterson reduced the fund to $700 million “due to fiscal pressures,” but reiterated his commitment to upstate economic revival. It wasn’t a pleasant hit, but the upstate communities accepted it in the interest of reducing state spending. Gov. Paterson also prohibited all but essential hiring in state agencies and said he would propose a hard freeze if target goals weren’t met.
Now, however, Gov. Paterson wants to end the practice of having two chairmen — one upstate and one downstate — oversee the Empire State Development Corporation. He apparently doesn’t think the state needs two people, even though the regional economies are vastly different and history shows that upstate has been shortchanged for years in the Manhattan-centered system.
Worse yet, Paterson apparently has targeted upstate co-chair Daniel Gunderson for demotion even though the downstate chair, vacated by Patrick Foye shortly after Paterson took office, is empty. If there’s got to be attrition, wouldn’t that be the job to eliminate?
Not in New York, obviously. The downstate politicians — and Paterson is one — would never stand for such a thing.
But neither should upstate politicians, of either political stripe. They should not stand by and see their constituents written off again. Broome County Executive Barbara Fiala, like Paterson a Democrat, struck the right tone on Monday when she said, “One New York is fine, but we (upstate and downstate) are in competition. We have different needs, and I certainly want to ensure that we have a person (who) is in tune with our needs.”
Catherine Glover, president and CEO of the Greater Binghamton Chamber of Commerce, noted, “Our economic development situation needs to be addressed by someone who is immersed in the area and … has the authority to do something without a negotiation with New York City.” Indeed. We’ve already seen the results of Manhattan-dominated decision-making over the past decade — job and population losses upstate, utter obliviousness to our plight downstate.
The governor is wrong this time, and the entire upstate community ought to object.
Gov. Paterson’s deeds must match his words. Otherwise, he’ll go down as just another one of those New York City politicians who offer lip service, but little else, to upstate communities.
The Buffalo News
Center development here: Governor should tap Gundersen, locate state agency in Buffalo
Word from Albany that Gov. David A. Paterson is being advised to end the special focus New York put on this economically challenged region ought to trigger heated protests and concerted action by the leaders of this community. And that action should center on persuading the governor to strengthen state emphasis on upstate recovery, not weaken it.
He can do so by putting state economic development leadership completely in the hands of current Empire State Development Corp. Upstate Co-chairman Daniel C. Gundersen and keeping his headquarters here. Gundersen, who also serves now as commissioner of the state's Department of Economic Development and previously worked as a deputy secretary of economic development in both Pennsylvania and Maryland, is a logical choice for the statewide role and already is well versed in upstate’s acute development needs.
There were problems with the co-chairmanship approach to ESDC leadership, which split that role between Gundersen here and Patrick Foye in Manhattan. Insiders say the split caused delays and inefficiency. Foye's recent resignation opens a door to restructuring, and Paterson seems likely to follow a push from his advisers to restore single-person leadership.
He should do so — by returning to former Gov. Eliot L. Spitzer's initial promise to relocate the state agency from Manhattan, which doesn’t need so much of a redevelopment push, to Buffalo, an upstate city that does.
The current advice is coming to a New York City-based governor from people who think “upstate” New York is the same as Fifth Avenue. Paterson must recognize that there are real upstate economic development needs that deserve far more consideration than any politically based pressure to appoint a Manhattan head of a Manhattan-based agency. Gundersen is the right person, in the right place. That needs affirmation from the governor.
It is hard to imagine the pace of upstate development being much slower than it has been through many years. Spitzer's original idea and campaign promise of moving the state agency’s headquarters to Buffalo, while keeping some staff in Manhattan, would have focused the state on the needs of New York west of the Hudson River.
The watered-down idea of co-chairmanship at least centered the attention of one high-ranking and influential official on those needs, but returning leadership solely to Manhattan now while dissolving the post of upstate cochair would be a slap in the face to a region that has already suffered quite enough of those.
Keeping the focus on upstate, far less able to attract development on its own than Manhattan, should be a priority for Paterson.
A state economic development chairman or co-chairman does more than cut ribbons and round up tax breaks. It is a position that is supposed to include acquaintance with what people need and want, and what developers have to offer, so that the two can be put together. The idea is not just to dole out money, but to lean on other state officials to improve business conditions locally and statewide through decisions on everything from tax policy to Thruway tolls to labor laws.
Upstate doesn't just deserve its own economic development friend at court. It desperately needs one. Paterson should not take it away.
Elmira Star-Gazette
Governor should not yank upstate economic chair: Give the Spitzer concept more time to bring results to this region
For upstate New Yorkers, Gov. David Paterson brought a major piece of baggage to the job when he took over after Eliot Spitzer's resignation: his downstate political roots. Spitzer got rid of his downstate leanings through two terms as attorney general, but Paterson, after a long career representing his Senate district in Harlem, has something to prove about being a governor for all of New York.
His statement last week that he wanted to do away with the upstate economic development chairman did little to inspire confidence that he's as concerned about this region’s future as Spitzer had been. No, he didn’t say he would ignore upstate, but by proposing the elimination of the chairmanship that Spitzer devised to serve upstate, Paterson sends the message that this region doesn’t deserve special attention.
But it does, and Daniel Gundersen, the upstate chairman of the Empire Development Corp., deserves a chance to demonstrate that Spitzer's instincts were correct. Let’s not forget that the former governor, during his 2006 campaign, likened parts of upstate to Appalachia and, once elected, tried to remedy that problem by hiring Gundersen to concentrate on upstate.
Gundersen started work in February 2007, and now 15 months later, Paterson is ready to scuttle the plan to assign upstate its own state official whose main purpose is to reverse this region’s economic decline. Instead, he wants to go back to the old system of one chairman, rather than two — one for upstate and another for downstate.
Through a spokesman last week, Paterson said the commitment to upstate would remain the same as it is now and that he intended to retain Gundersen. But that's not the same thing as having a top official whose focus is to improve upstate’s economic conditions.
If Gundersen were to become the one chairman of the Empire Development Corp., he couldn't devote as much time to upstate as he does now. If he were to work under a new chairman, he could lose the autonomy he has now to reach agreements with businesses, hire staffers and call upon resources to further his business agenda.
In short, the independence that made the position so powerful and promising in the first place could disappear, leaving upstate battling with downstate interests for help from Albany.
Gundersen had some sound ideas when he stepped into the upstate economic development chairman's job in 2007. Here is what he had to say in an interview with the Star-Gazette about 10 days after he began his job:
Q: What expectations should taxpayers have for your office in order to evaluate in the coming months and years how successful Gov. Spitzer's upstate efforts have been?
A: First and foremost are we more responsive? Has there been more balance of focus between the perceived and real attention for upstate? Does upstate have the organized voice now to discuss and pursue regional priorities? Is there an economic development strategy that furthers regional blueprints for action? Are we helping more businesses export products to more businesses around the globe? Are we capturing more cross-border investments that lead to new jobs? Have we reclaimed sites and developed brownfields? Have we made progress in some of the systemic issues that Gov. Spitzer has referred to as the perfect storm of unaffordability — taxes and high operating costs? Are we more optimistic three years from now than we are today? Those are a few of the ways we can measure whether we are moving in the right direction or not.”
Inside those questions are many goals that still apply to upstate and that need more time to develop. Paterson may not have been the originator of the upstate economic campaign, but now that he's in charge, he has an obligation to give it time to work.
Dumping the upstate chairmanship now is a bad idea.
Rochester Democrat & Chronicle
Paterson errs: Governor wrong to make economic development change
First, it's troubling that Gov. Paterson wants to suddenly switch gears on the way that economic development is handled upstate.
Then, to make matters worse, he appears to have allowed downstate interests to heavily sway his decision-making.
Say what you will about former Gov. Spitzer, but he stuck by his campaign pledge to give the upstate economy more attention. He recognized that business as usual did not serve upstate well.
So it's no wonder that across upstate, business leaders, in particular, are worried about the new signal Paterson is sending.
Out of nowhere, he announced late last week plans to ditch Spitzer’s creation of equally influential upstate and downstate economic development posts.
And get this: Paterson did it after conferring with downstate executives who complained the system, which brought Dan Gundersen aboard as upstate development chairman and Patrick Foye as the downstate chair, wasn't working. They argued that having two economic development chairs sent the wrong message, and that it’s “one state.”
True, New York is “one state,” but for the most part, the upstate region historically has been treated as a stepchild. There is no reason to believe that would change if the Empire State Development Corp. returned to its former structure of having one head.
In fact, now that the national economy is slowing down, upstate could fall even farther off the radar screen. Remember, this region has been battling a sluggish economy since the early 1990s.
Both Sens. Chuck Schumer and Hillary Clinton each were elected to their initial six-year terms on improve-the-upstate-economy platforms.
Obviously, that hasn't happened in significant ways for myriad reasons.
But it's indisputable that under Spitzer and Gundersen, there had been commendable progress.
A $700 million upstate revitalization fund that earmarked $65 million for redevelopment of Midtown Plaza and $50 million for the University of Rochester are strong examples. If Paterson persists in not leaving well enough alone, the least he should do is give the statewide job to Gundersen.
Schenectady Gazette
Gov. shouldn't be so quick to drop upstate economic czar
It's unclear just what Gov. David Paterson has in mind for the Empire State Development Corp., but it apparently does not include continuing to have two separate chairmen, one for downstate and one for upstate. The addition of an upstate chairman, Daniel Gundersen, was one of the things Eliot Spitzer did to show his recognition of the desperate condition of upstate's economy and his desire to do something about it. More important, it wasn't only a PR move; Gundersen has some real power -- to make decisions, get spending and projects approved, etc. Paterson should think twice before going back to one chairman.
Gundersen is headquartered in Buffalo. Not exactly a central location, but that's why it was chosen. It's out of the way -- away from the money of Manhattan and the politics of Albany -- and therefore easily forgotten about. It is also perhaps the best symbol of upstate New York's decline, a once-prosperous city that has seen much of its tax base, and population, disappear over the last 25 years or so.
Paterson has said he believes having two economic development czars sends the wrong message, because "we are one state." The trouble is, given the economic and political dominance of downstate, it doesn't always feel that way to upstaters. Spitzer's two-headed czar plan, though it may have led to some bureacratic problems, was an attempt to make upstate feel it wasn't being ignored. Paterson should give the current arrangement more time to prove its worth.
If he goes ahead with the change, he could soften the blow by naming Gundersen to the unified chairman's job. And by locating the unified headquarters in Albany, rather than Manhattan, where it was before.
Syracuse Post-Standard
Paterson's Switcheroo: After just a year trying something new, is he returning to the old ways?
Last December, when then-Gov. Eliot Spitzer and Upstate economic development chairman Dan Gundersen spoke with regional editorial writers, Upstate was front and center on their radar. "The Upstate economy ... will be the most important measure of our success or failure," Spitzer predicted. Gundersen observed: "What we've had for at least a couple of decades was a Downstate-centric approach to economic development. We needed this Upstate focus ... ."
In his State of Upstate address last January, Spitzer spoke of a billion-dollar fund for the region, with millions more to finance urban projects like Syracuse's Connective Corridor, the Near West Side initiative and others. "We're focusing on the fundamentals that will result in job creation," Gundersen said.
Even then there were rumblings of discontent. Long Island business leader Matthew Crosson said Spitzer's policy "risks widening the economic and political divide that has separated Upstate and Downstate."
Since then, Spitzer went up in smoke in a sex scandal. Amid recession jitters, the red ink is spreading. Gundersen's Downstate counterpart, Patrick Foye, left in March.
Late last week, Gov. David Paterson called for abolishing the dual-chairmen model for the Empire State Development Corp. The co-chair system "wasn't working," he said, adding: "It sends the wrong message. This is one state."
For a governor to abandon this welcome focus on Upstate after just a year is passing strange, given that the Manhattan-based ESDC had been dysfunctional for decades. It may be no surprise that Paterson, who shuttles between New York City and Albany, heeded his mostly Downstate advisers. But unless he reconfirms that his new "statewide" focus includes Upstate, this region has good reason to worry.
Not working? Gundersen spent his first year logging 50,000 miles across Upstate, consulted hundreds of business leaders and developed "regional blueprints." Not working? Last December, Gunderson and Spitzer reported employers from the Southern Tier to Rochester had decided to stay put or expand.
Niagara Falls Mayor Paul Dyster calls Gundersen "a breath of fresh air." Sandy Parker, whose Unshackle Upstate coalition represents 45,000 businesses, is convinced Gundersen can help move the region forward. "To dilute those powers in any way would be a huge step backwards," she said last week. "How can we have a rivitalized economy if Empire State Development packs up its bags and heads home to midtown Manhattan again?"
"There was so much optimism among Upstate business leaders that real change was going to take place," says Darlene Kerr of the Greater Syracuse Chamber of Commerce. "There appears to be a real disconnect on the part of the current administration and its advisers."
Paterson could change his mind. Or he could appoint Gundersen to head the entire ESDC, headquartered in Buffalo. Most of all, though, the governor needs to show he cares about Upstate's economy. Spitzer helped dispel a longstanding sense that Upstate has been left out. The message from Paterson sounds all too familiar.
Watertown Daily Times
Keep upstate czar: Paterson should reconsider move to cut position
One of the most encouraging initiatives of former Gov. Eliot L. Spitzer's administration was a determined focus on revitalizing the economy and overall fortunes of upstate New York.
To that end, Mr. Spitzer appointed an economic development director to concentrate on the specific problems and aspirations of upstate communities -- a problem solver who would listen to public officials, business leaders and ordinary citizens throughout the state, someone who would work creatively with municipalities and regions to plan for economic revival.
Daniel C. Gundersen was chosen for that task, and he has devoted much of the past year traveling across upstate, meeting with local leaders, planning and announcing initiatives for community development and economic resurgence.
Despite former Gov. Spitzer's departure from government, a good work was started. Hope for a new economic beginning was kindled in Niagara Falls,Buffalo, Rochester, Syracuse, Northern New York and communities across the vast region known as upstate.
A City-by-City program identified key projects for various urban areas. The state budget contained $700 million for the Upstate Revitalization Fund, and Mr. Gundersen told reporters last month that all commitments to the $115 million City-by-City program would be funded. One was $10 million for housing around Fort Drum. Another funded Potsdam's partnership with Clarkson University in the renovation of Peyton Hall into a multiple-use facility that includes a business incubator.
And, Mr. Gundersen emphasized last month, "There will be funds for new City-by-City projects for smaller cities upstate."
But just as this grand effort to create jobs and stem the region's population flight finds its wings, Gov. David A. Paterson announced last week that New York will no longer have an upstate development director. It will return to the old way of having one economic development director for the whole state. That has not worked well in recent years.
An advisory group appointed by Mr. Paterson is working to find one director for Empire State Development, the Syracuse Post-Standard reported. The governor said that person could be Mr. Gundersen, and the Buffalo office where he has been based will remain. But Mr. Paterson said that having both an upstate and downstate director "sends the wrong message. This is one state."
The governor should reconsider. Unshackle Upstate, a coalition of more than 72 business and trade organizations, said the governor's proposal would "seriously undermine efforts to revitalize Upstate New York."
That is right. Good work has begun. It must continue. Upstate's needs are unique, and they were being addressed.
Keep the upstate development director intact. Keep the ball rolling. We are making progress. There is hope for upstate's revival.
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