Skip to Main Navigation

The Buffalo News

Web Search
by YAHOO! SEARCH

The governor's plan to revive upstate cities (February 2008)

Published:November 20, 2009, 9:35 AM

Font Size:
  • E-mail
  • Share
  • Print

Updated: August 20, 2010, 2:46 PM

On Dec. 13, 2007, newspapers across New York State published their third in a series of occasional Upstate Focus editorials.

The issue of concern chosen for that day was the governor's plan to revive upstate cities.

Each newspaper published its own opinion, reached independently. Here are the editorials:

Batavia Daily News

Thanks for the spark, but government is still smothering upstate

Eliot Spitzer says he's learned a lot in his first year as New York State governor. One thing he's learned is that it's easier to compare upstate to Appalachia, as he did while campaigning in 2006, than it is to do anything about it. But he hasn't given up on upstate and he's asking upstate not to give up, either.

In a conference call with upstate newspaper editorial writers Nov. 30, Mr. Spitzer recapped his plans for boosting upstate's economy and urged editors to spread a spirit of optimism. He's appointed an upstate economic development "guru," Dan Gunderson, an act that at least recognizes a problem exists. Last week, he announced a plan to provide broadband Internet service to remote areas - something that, as Mr. Spitzer notes, is critical to moving upstate into the next century economy. And in October he announced a series of investments entitled "Rebuilding the Upstate Economy: City by City."

In Batavia, "City by City" takes the form of a $3 million state grant to help develop the infrastructure of the Genesee OATKA ag manufacturing park behind the Genesee County Fairgrounds. While Mr. Spitzer can't take credit for thinking of the ag manufacturing park, since it's been in the works for several years, he gets credit for recognizing a good idea when he sees it and finding the money to help move it along.

Of course, the money isn't in hand yet. But Mr. Spitzer says everyone in Albany agrees the City by City investments are important to fund, and so, to all intents and purposes, the money is there.

The ag manufacturing park and the similar projects such as the redevelopment of Midtown Plaza in Rochester and Peace Bridge expansion in Buffalo can only help in a region that is struggling. But these projects can only provide a spark; they cannot catch fire under the smothering of this state's layers of taxes, fees and regulations. They need air.

Business needs a government that works. It needs a government that doesn't allow a Thruway Authority to give pleasure boaters free travel on the state's canal system while it raises tolls for working men and women commuting on the superhighway. Making state authorities accountable was one of the reforms recommended in the 2004 New York Public Interest Research Group report, "Reform New York: 10 Steps Lawmakers Can Take to Change Albany." Three years later, authorities still don't answer to anyone.

Business needs a government that is compassionate to both the poor who need Medicaid and the taxpayers who pay for it. Genesee County Manager Jay Gsell allocated $9.2 million in the county's 2008 budget for Medicaid - that represents 37 percent of the county's property tax. New York is one of only two states in the nation that require county contributions for Medicaid, and it has one of the most generous Medicaid programs. But the cost comes in property taxes that are helping smother the life out of upstate.

Mr. Spitzer has only been in office one year. He's had his successes - workmen's compensation reform is one of them - and his failures - his proposal to give illegal aliens driver's licenses. His popularity may be sagging now, but he's got three more years - plenty of room for optimism, and enough time to see if his upstate initiatives do the job. If they work half as well as he hopes, he'll have no popularity problem upstate. No one wants Mr. Spitzer to succeed with upstate economic development more than the people who live here.

Binghamton Press & Sun-Bulletin

Recovery catalysts: Spitzers upstate economic efforts appreciated; tax reform would do more

On Nov. 30, editorial writers from upstate had the chance to chat with Gov. Eliot Spitzer and Upstate Chair of the Empire State Development Corporation Daniel Gundersen about specific efforts in our regions to jumpstart the economy. Spitzer said that "the upstate economy ... is perhaps the most important issue confronting me as governor. It will be the most important measure of our success or failure." How difficult will it be to achieve success with this issue? Its going to be tough, Spitzer admits, "pushing back against long-term trends, long-term economic factors that do not get resolved or transformed overnight."

The governor cited three key areas that are often mentioned as inhibitors to growth upstate: workers compensation reform, property tax relief and reducing energy costs. In his first year in office, there has been movement on all of these.

Right out of the gate, the governor announced his framework for workers compensation reform, which went into effect in July. Spitzer announced in April the "15 by 15" energy efficiency program in which he aims to reduce the states energy use 15 percent by the year 2015. To that end, he would like to see tougher building codes and new appliance energy efficiency standards. The effort includes $295 million invested in renewable energy projects across New York. This fall the state rolled out $1.3 billion in property tax relief aimed at the middle class.

Most recently, the governor went on a tour called Rebuilding the Upstate Economy: City by City. At each stop on the tour, he announced funding for various projects that would help the local economies and in turn, synergize upstate. Projects included expanding the Peace Bridge into Canada; redevelopment of Niagara Falls downtown; sprucing up the Buffalo waterfront; redeveloping Rochesters Midtown Plaza; boosting organic farming efforts in Yates County; addressing several efforts in downtown Syracuse, including the connective corridor that strengthens the link to Syracuse University; helping a micro-enterprise effort in Rome; pledging funding toward the effort of bringing broadband access to the Plattsburgh area; and giving $1 million toward the redevelopment of the former Anitec site in Binghamton.

All these efforts are appreciated, but will they be enough of a catalyst to reverse current trends? There has been much uproar about the planned increases in Thruway fares. The rate hikes were approved in 2005, when, as you recall, gas was less expensive. They were supposed to help pay for the $2.1 billion cost of highway and bridge repairs needed.

Taxpayers have had enough, though. That is the rallying cry of upstaters — were simply being taxed out of existence. What makes taxpayers especially angry is that their hard-earned tax dollars are being mismanaged or wasted on puffing up the fat layers of our government, sometimes through public authorities such as the Thruway Authority, that do not have enough oversight. For all the taxes we pay, we wonder, shouldnt our standards of living be keeping pace? If taxes for starting businesses, owning homes, educating our children, and all those other fees added onto just about everything else in the state were lowered dramatically or ceased, thats when New York would look attractive again. To get there, though, we have to start removing all the layers of fat that these taxes are supporting. Layers of government must be reduced — there simply isnt the population in upstate to support them all. That will require the courage of leaders who are more concerned about the needs of the people they represent than their future re-election.

Mr. Governor, over-taxation is the No. 1 long-term trend that has choked the life out of upstate. How can you expect to support the budget of kings with pauper incomes? This, sir, is the reform — the catalyst — we need most and as soon as possible.

Buffalo News

Saving upstate

Gov. Eliot L. Spitzer made an interesting comment recently about his "City by City" upstate economic initiative -- interesting because, although his statement was mainly accurate, it trailed behind it a large and critical asterisk.

Here's what he said in announcing a project in Central New York: "Many people talk about the upstate economy as if it is some monolithic region, but the truth is exactly the opposite. A "one size fits all' approach hasn't worked."

That is plainly and obviously true. What is needed in the failed industrial city of Buffalo is different from what is needed in Oneonta, where he spoke. Yet, a crucial and frequently underappreciated influence does, indeed, link the anemic economies of Buffalo and Oneonta to each other and to every other city in upstate New York: namely, that they are cities in upstate New York.

It's no coincidence that New York, home of the country's most dysfunctional legislature, is also home to a roll-call of failing cities where property taxes are scandalous, business costs are exorbitant and the population is fleeing. Those issues are largely out of the control of localities. Albany caused those problems and Albany must fix them. If it doesn't, Spitzer's local projects will fall short.

The governor understands that. He is pursuing a twin-track strategy to try to resuscitate the upstate economy, through his recently-rolled-out City by City infrastructure program and also through an effort to rewrite some of the rules with which Albany has bound and gagged upstate.

The local efforts are important and look to be well crafted. The Buffalo project, for example, includes renovation of the former federal building at 200 Delaware Ave., completion of the long-delayed Peace Bridge project and development of the Buffalo waterfront. The latter are not new efforts, but by giving them renewed focus and cloaking them in gubernatorial accountability, they stand more likely to be achieved.

What is more, they are projects that truly could have an impact on the local and regional economies. Development of Buffalo's waterfront will attract businesses, shoppers and residents, for example. Completion of the long-stalled Peace Bridge project will ensure that Buffalo and Western New York can better tap into the huge Canadian market that lives within an hour or two from the border.

And the money for most of the projects -- all but those in Rochester and Syracuse -- already have funds in hand. These are doable, well defined projects but as helpful as they may be to local and regional economies, they won't be enough unless Spitzer is also able to push an unwilling Legislature down the parallel track of reform.

That is a gargantuan and much more difficult task. Lawmakers love spending money on large infrastructure projects that get their names in the newspaper, but they don't much like changing laws in ways that displease favored groups or that weaken their grip on office.

Both are necessary if New York is going to stanch the hemorrhage of population loss. Indeed, both are closely linked. Lawmakers serve special interests with impunity precisely because gerrymandered districts and other rules of operation leave them largely free from serious political challenge.

Some changes have been made. Spitzer won a significant victory on workers compensation this year and a lesser one on reform of the Wicks Law, which drives up the cost of public projects.

But more is necessary. The Taylor Law, which covers public employee contracts, tilts toward the unions and has bloated state property taxes. Unless it is reformed to provide greater balance, the state will continue to discourage jobs and employers.

That kind of change would become much more likely if each legislative chamber would first reform their internal, top-down rules that discourage the free flow of ideas. That's hardly the point of a democracy.

Upstaters can be pleased with Spitzer's infrastructure projects but as useful and expensive as they stand to be, they are the easy part. It is urgent that he not let up on the state reforms needed to make upstate an economically competitive place to live and do business. Until that is done, this state will continue to bleed.

Rochester Democrat & Chronicle

Set priorities: Stronger upstate vision needed to balance hurdles

Collaborative prioritization will be the key to meaningful economic development progress in upstate New York. But as the saying goes, the devil is in the details. That fact will require a more aggressive, focused approach from both state leaders, such as Gov. Spitzer and upstate economic czar Dan Gundersen, as well as local officials.

The need to meticulously prioritize has been amplified by Spitzers ambitious City by City projects that promise a piece of the pie for all. Rochesters slice, of course, is the state-funded $50 million demolition of Midtown Plaza to make way for PAETECs new world headquarters. Midtown and the $20 million Connective Corridor in Syracuse are the only two projects that require legislative approval and a portion of a billion dollars in mostly borrowed capital. The remaining projects will be funded with "existing funds" that will generally require reappropriation of past monies not yet allocated.

Spitzer and Gundersen have characterized the individual city projects as "transformative" to their various regions. And they are — imagine what a bustling downtown core could mean for Rochester. Yet the backdrop is an estimated $4 billion budget deficit in 2008 and a collaborative vision for the regional economy not strong enough to hold up against the toxic, ever-changing climate in Albany.

Thats not to say such a vision isnt on the radar screen. Work is being done to address economic issues on a macro level. The Regional Blueprints, what Gundersen calls a "bottom up approach," have state and local leaders working together to compile a list of common strategies and needs. Taxes, energy initiatives and health care costs come to mind. Yet all of these visions for economic prosperity — from individual communities, the Senate, the Assembly, the governor — are creating an atmosphere of competition.

Gundersen says this could be a beneficial thing, forcing local leaders to be more thoughtful about which projects are important and then aggressively lobbying the state for assistance. Mayor Duffy is an example of that approach with the Midtown project.

But theres only so much money to go around.

A realistic list of the top priorities, both in Rochester and for the entire upstate region, must be ready to go when crunch time arrives. If deals are made at the eleventh hour as the budget is prepared — as is usually the case — once promised projects such as Midtown could be placed on the chopping block. The power and potential for progress upstate lie in the upfront preparation.

Syracuse Post-Standard

Developmental Delays: Upstates prospects compromised by high costs, inefficiency, neglect

New York state needs to welcome business ventures and help them flourish. But New York is not business-friendly. Its taxes and energy costs are high. It imposes onerous bureaucratic burdens on developers. It rewards a select few with incentives, expecting guaranteed job gains in a competitive marketplace. And its focus on New York City too often shortchanges Upstate.

Just this week, the Public Policy Institute of New York State reported the state has the second-highest cost of doing business, next to Hawaii, citing high taxes and electricity costs, among other factors.

Every governor tackles economic development, and Eliot Spitzer is no exception. His ideas are bold and sensible. But with his popularity sagging and political opponents poised to attack, prospects for success are uncertain.

Economic development is not entirely Albanys responsibility. Local governments frustrate developers with their multiple layers and narrow, competing political agendas.

Speaking with editorial writers last week, Spitzer called Upstates economy "perhaps the most important issue confronting me as governor." Asked whether a broad attack on the costs of doing business in the state is preferable to funding local projects, he replied: "Youve got to do both."

On the broad front, he pointed to his success in lowering workers compensation rates and shaving property taxes, as well as ongoing efforts to curb Medicaid and health-care costs and bring down energy rates. He didnt talk about the Empire Zone program, which continues to spend hundreds of

millions of dollars on business subsidies, with decidedly mixed results. What if more of those resources were diverted to reducing the tax burden on all businesses?

Spitzer spoke of his "city-by-city" rollout of state-funded development projects across Upstate — from $30 million for Syracuses Connective Corridor and several smaller projects, to $50 million for Buffalos waterfront development. Dan Gundersen, Spitzers new Upstate economic development director, joined the conversation to emphasize a new focus on regional economic strengths.

The focus on Upstate is welcome. But the battle for attention and resources is hardly over. The $20 million for Syracuses Connective Corridor and $50 million to redevelop Rochesters Midtown Plaza still need state legislative approval. And while Spitzer insists the city-by-city process will continue in coming years, he already faces a $4.3 billion budget deficit. Where will the money come from?

Dan Gundersen, Spitzers Upstate economic development director, said he spoke with "local players" before the state decided to fund the Connective Corridor. The governor acknowledged some might prefer those dollars go elsewhere. He might have gotten that message if he had consulted a new group in Syracuse called SANE — the Syracuse Alliance for a New Economy. SANE seeks to negotiate "community benefit agreements" for public development projects, ensuring that the widest possible group of stakeholders has a voice in decision-making. Reaching an absolute local consensus may be a pipe dream. But it would be reassuring to know that a development project of this size had the backing of a broad cross-section of the community before proceeding.

Local leaders working at cross purposes also doesnt help. This weeks paper told of a developer in Syracuse who withdrew a request for a tax break from the city under pressure from common councilors unwilling to forego the tax revenue — and his discovery that he was eligible for a break under the states Empire Zone program. One councilor congratulated him for his resourcefuless. But Mayor Matt Driscoll was not pleased. "This was a lot harder than it had to be," he complained. "Wheres the consistency, the predictability, for developers?"

Albany needs to make hard choices that will establish a more level and welcoming playing field for Upstate businesses. Meanwhile, local economic developers and elected officials must enlist the support of the broadest possible spectrum of community interests to ensure that their decisions are in the best interests of all.

Watertown Daily Times

Reviving upstate: Governor's ambitious quest is under way

When Eliot L. Spitzer was running for governor, he angered some New Yorkers by referring to upstate New York as "Appalachia."

This may not have been what upstaters wanted to hear from the man who would be governor, but it made his point. Much of upstate New York has been mired in economic doldrums for decades. Downtown areas have suffered from urban decay. Young New Yorkers in significant numbers have sought opportunities in other parts of the country. New York has been losing political representation in Congress because it was not keeping pace with the dynamic growth experienced by other states.

Gov. Spitzer has expressed a vision to reverse these trends, to revitalize upstate economically and lay the foundation for New York's future growth. He is enthusiastic about it and created the post of economic development director solely for upstate - the chairman is Daniel C. Gundersen.

During a recent conversation with editorial writers and editors from around the state, Gov. Spitzer said: "The upstate economy ... is perhaps the most important issue confronting me as governor. It will be the most important measure of our success or failure. It is also an incredibly difficult issue to confront."

The governor acknowledged that revitalization efforts involve "pushing back against long-term trends, long-term economic factors that do not get resolved or transformed overnight." He said his administration is approaching the problem "at multiple layers and multiple levels - macro, intermediate and micro."

On the macro level, the Spitzer administration has targeted energy, property taxes and workers compensation as key areas to spur growth. His statewide agenda includes lowering business costs, improving infrastructure and harnessing an innovation economy to encourage private investment and spur economic development.

He has also spoken about the importance of education - the state has changed the formula for funding schools to ensure that all New York students receivea sound education. And the governor seeks to make the state's universities part of the overall plan to stimulate economic development.

On the micro level, one of the most promising initiatives now taking place is the governor's "City-by-City" plan. Mr. Gundersen has toured the state, visiting political and business leaders, planners and economic development officials to identify key projects to be funded with regional revitalization in mind.

Thus Buffalo is receiving funding for waterfront development and transformation of a downtown office building into a hotel-office-residential complex. Construction of a new international Peace Bridge to Canada is planned as well as redevelopment of a Niagara Falls tourist corridor. A variety of projects are planned for Rochester, including its Midtown Plaza shopping mall. Syracuse is receiving funds for a Connective Corridor that will link the city's educational and medical institutions with arts and cultural groups as well as businesses.

Several other communities are part of the "City-by-City" plan. In the north country, the village of Potsdam has been singled out for its partnership with Clarkson University in the renovation of Peyton Hall into a multiple-use facility that includes a business incubator. So far, Watertown has not been mentioned, but the process is ongoing.

These projects are seen as the catalyst to growth and community development, specific to each region. The state money spent on these efforts must be seen as investments in New York's future.

The Spitzer administration obviously has put much thought and effort into this endeavor - in partnership with local communities. There is every reason to expect success.

Comments

There are no comments on this story.

Add your comment