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Business Advocacy

The Chamber serves as the “voice of business” at the local, state and federal level.  Our Economic Development and Legislative Affairs Committee meets monthly to identify issues that affect business, with the goal of improving the business climate to help existing businesses remain competitive and encourage new business development. 

Executive Budget Falls Short of Needed Reforms

Governor David Paterson unveiled his 2010-2011 Executive Budget on Tuesday, January 19th.  While the budget contains reductions in state spending in certain sectors, the proposal still increases spending $787 million or 0.6% from the prior year. Some of those reductions could harm taxpayers and the economy of Seneca County. Furthermore, a proposed $1 billion in new taxes and fees would only further burden employers and taxpayers.

Included in the spending cuts is a proposed 5% reduction in school aid. Without a property tax cap, it is likely that property tax payers would shoulder an increased burden to make up for shortfalls in school revenues.

Another possible cut would likely have an impact on a major industry segment in Seneca County – tourism. Last year, the State program that provides funds to each county to supplement marketing efforts was reduced 19%. This year, the Division of Tourism’s total budget may be slashed another 30%, and it is unclear at this time whether the program that funds counties is even included in the budget. Last year, the state funds represented approximately 40% of the Chamber’s total budget for tourism advertising. Due to the current uncertainty, we have been forced to reduce the scope of our advertising for this year as we plan for the spring season. 

The proposal to allow the sale of wine in grocery stores has been reintroduced in this year’s budget. A one-time franchise fee for this license would range from four-tenths of one percent to one-half of one percent of total gross sales, excluding sales of motor fuel and tobacco products. The franchise fee would be paid by each retail outlet. New York would join 35 other states that permit wine to be sold in grocery stores. This is expected to generate $93 million in revenue to the state. The Chamber will be reaching out to our wineries on this issue to ensure the organization is representing the best interests of members.

With health care costs among the top issues for all businesses, the Governor is proposing to reduce the small business subsidy for Timothy’s Law provisions of health insurance, which requires coverage of mental health care. Among the proposed fee increases are assessments and surcharges on health care providers including hospitals and nursing homes totaling $240.2 million. Undoubtedly, businesses and individuals struggling with the costs of health insurance would see further increases.

Of particular interest to Seneca County, the proposed budget includes a $1 per pack increase on the state excise tax on cigarettes, which would result in the highest state excise tax in the nation at $3.75 per pack. The Governor is also proposing to finally collect the taxes on cigarette sales to non-tribal members at American-Indian businesses, though stating that it will take approximately six months for the mechanism to be implemented. Skeptics feel this is only a stalling tactic to provide additional time for negotiation with the tribes. It is critical that pressure be kept on the governor’s office for enforcement. Otherwise, the increased excise tax would only strengthen the competitive advantage of American-Indian businesses over other retailers and cost the state and county additional revenue.

There are several proposals in the budget that attempt to spur economic development. The proposed budget would create the New Technology Seed Fund, where $25 million would be made available to assist university-based entrepreneurs in making the transition from pure research to the creation of marketable products that generate revenue. Priority would be given to start-up and early-stage small businesses that have demonstrated the most promising commercial potential in the fields of cutting-edge emerging technologies. Funding would be supported by the resources of the Job Development Corporation.

The Empire Zone Program, scheduled to sunset in June of this year, would be replaced by the Excelsior Jobs Program, which would provide incentives to firms in targeted industries such as biotechnology, pharmaceutical, high-tech, clean technology, green technology, financial services, and manufacturing.  Under this program, firms in those industries that create and maintain at least 50 net new jobs in New York for five years would be eligible for tax credits.  However, businesses currently in the Empire Zone Program could face decertification based on revised compliance criteria retroactively to the 2008 tax year. This would be a slap in the face to businesses currently in the program and have a chilling effect of businesses considering locating or expanding in New York. 

A briefing book for the entire Executive Budget is available online.

Pro-jobs groups including The Business Council of New York State and Unshackle Upstate are calling for additional state spending cuts to sustainable levels. Since 2000, the state budget has increased from $75 billion to $131.8 billion. During the past two years of a strained economy, spending has increased 12%.  However, cuts need to be more strategic, to avoid harming taxpayers and job-creating businesses. Furthermore, taxes, fees, and burdensome regulations on business need to be reformed to create an environment conducive to growth and economic recovery.

The Legislature is holding a series of joint public hearings on the budget proposal – by agency/issue area - and then negotiations with the Governor are expected to commence.  These hearings began on January 25th, and the final hearing is scheduled to be held on February 10th. Once the Governor and Legislature agree on a final budget plan, the Legislature then passes budget bills, and the new budget is enacted into law. The 2010-11 budget year begins April 1, 2010. 

The Chamber will be sending comprehensive comments on the proposal to our legislators and urges members to do so as well. Contact information for Senator Nozzolio and Assemblyman Kolb’s offices is on the Chamber’s website. At the Annual Dinner in January, Senator Nozzolio and Assemblyman Kolb both made pleas for the public to contact their offices with concerns. Calls to action on specific issues may also follow in the next few weeks during the critical budget negotiation process.

Card Check Legislation Threatens Workers’ Rights

The number one priority for unions across the country this year is the ironically named “Employee Free Choice Act”, otherwise known as “Card Check”. Ironic because the most objectionable feature of this bill is the elimination of employees’ rights to private, secret voting when deciding whether to introduce a union into a workplace.  A union certification could be accomplished without a vote just by getting enough signatures on cards.  This opens the door for coercion and intimidation, and this process can take place before an employer is even aware of it.  In addition, the bill calls for binding arbitration after a brief period of time following the certification.  It is a union organizer’s dream and an employer’s nightmare, and the U.S. Chamber and local chambers, other business organizations, and employers across the country are fighting it.  Your voice is needed by signing on to the attached letter provided by the U.S. Chamber.  You can also contact your Congressman and Senators to express your opposition. Our Senators are; Charles Schumer, (202) 224-6542; and Kirsten Gillibrand, (202) 224-4451. Our Congressmen is Michael Arcuri, (202) 225-3665. 

More information is available at the U. S. Chamber’s website, www.uschamber.org, including a way to submit a letter of opposition electronically.  This is a critical piece of legislation.  Make your voice heard.

The Seneca County Chamber of Commerce is a member of this bi-partisan coalition of over 70 business and trade organizations across Upstate New York representing upwards of 45,000 companies and employing more than 1 million people.  The goal of the coalition is to achieve reforms in Albany that make Upstate a stronger place to do business.

Since 1990, Upstate New York has lost hundreds of thousands of people and jobs while regions across the nation prospered and grew. New York State is the second most expensive state to do business in and our communities have been shackled by policies that just don't work here.  The coalition pursues a priority agenda to send the message to Albany “We want our economy moving.  Not our people.”

Click here (www.unshackleupstate.com) to learn more about the issues.

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