Big hitch in Spitzer promises Money not a sure thing for big-ticket projects in struggling upstate cities
By JAMES M. ODATO, Capitol bureau First published: Thursday, November 1, 2007
ALBANY -- The millions of dollars Gov. Eliot Spitzer is promising as he unveils big-ticket economic development projects for struggling upstate cities has one hitch: the money is not a sure thing. The state does have the $5 million Spitzer pledged to General Electric on Wednesday, but in other cases, he still needs to negotiate the funds with the Legislature. That includes, said Budget Director Paul Francis, $50 million Spitzer promised earlier this month to help redevelop Rochester's Midtown Plaza and $20 million for Syracuse's "Connective Corridor" project.
Negotiations to complete that deal have been stalled, Francis said.
The projects are tied up in a package of at least $900 million proposed to be split among the Senate, Assembly and Spitzer for economic development. A tentative agreement fell apart in June before the Legislature broke for the summer. At the time, Spitzer called Senate Republican capital project proposals pork "dripping with fat."
And talks since then have been nearly nonexistent, Capitol officials say.
Spitzer, who estimates he's got a $4.3 billion deficit to fill heading into the new fiscal year, may not know for sure if he'll be able to deliver the economic development funds until the conclusion of the 2008-2009 budget. That budget is unlikely to be put together with the Legislature before March 31.
"I'm concerned about what that deficit could mean for economic development," said Brian McMahon, president of the New York State Economic Development Council. He said he hopes a capital deal comes together by the end of the year.
Sisa Moyo, a spokeswoman for Assembly Speaker Sheldon Silver, said the $20 million for Syracuse's project is supposed to be split between the governor and Assembly.
"Both are contingent upon a capital deal," she said. She had no update on talks on capital projects but said one of Silver's priorities is to fund the Connective Corridor in Syracuse.
The project involves developing a transit system connected to Syracuse's major educational and medical institutions with arts and cultural organizations, and businesses downtown. In fact sheets accompanying the news releases, the governor said state funding for that project and Rochester's depends on "legislative negotiations."
Spitzer would need a lot more to achieve his economic development vision.
The chiefs of the state Empire State Development Corp., for example, want to set up an Investment Opportunity Fund that would provide grants to help projects of at least $20 million in value.
The strategic plan calls for the state to invest no more than 25 percent toward such projects, but the fund must be part of the state budget negotiated with the Legislature.
The state does have the $5 million Spitzer pledged to General Electric on Wednesday, but in other cases, he still needs to negotiate the funds with the Legislature.
Apparently this GE initiative has been in the plans for quite some time. How convienent that they should unvail it's final decision a week before the election.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
I like the part where Spitzer says he has to negotiate with the legislature for the rest of the funds. Spitzer is going to try and do what he wants anyway and does he really think that the legislature is going to want to try and give him anything after the way he's handled the illegal immigrant drivers license debacle.
We will all be punished now for not jumping on the illegal drivers license issue.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
Apparently this GE initiative has been in the plans for quite some time. How convienent that they should unvail it's final decision a week before the election.
Just like a Coke commercial during Super Bowl......let's just leave it at--baaaaaaaa, baaaaaaa sheeple......
...you are a product of your environment, your environment is a product of your priorities, your priorities are a product of you......
The replacement of morality and conscience with law produces a deadly paradox.
STOP BEING GOOD DEMOCRATS---STOP BEING GOOD REPUBLICANS--START BEING GOOD AMERICANS
A $1B upstate strategy Governor's address expected to call for fund to aid struggling areas By JAMES M. ODATO, Capitol bureau First published: Tuesday, January 8, 2008
ALBANY Gov. Eliot Spitzer will unveil a plan for a $1 billion Upstate Revitalization Fund in his State of the State address Wednesday, according to people who have seen a draft of the address. The governor is also expected to disclose his interest in plans for the Division of Lottery, which is based in Schenectady, to raise new revenues.
Spitzer's upstate proposal comes in an election year when leaders in both parties are calling for a focus on improving the economy in areas of the state that have fallen on hard times, generally outside of New York City. Senate Republicans last year pitched their Upstate Now plan, calling for $3.7 billion in a 10-point program to fix the economy. Spitzer's plan appears to have similar components. His new fund would help him pay for commitments he made last year in his City by City program. The Democratic governor traveled upstate to dispense state money to spur private investment in urban areas such as Syracuse, Utica and Rochester. The $1 billion he calls for will back up many of those pledges and many more new grants for upstate cities. The money will also fuel investments in businesses through a Strategic Industries Fund, allow for additional spending on farms and other agricultural operations and for state park restoration projects. The revitalization plan is expected to be a highlight in the State of the State address scheduled for 1 p.m. Wednesday in the Assembly chamber and in Spitzer's presentation at Buffalo State College on Jan. 16, his first speech on the state of upstate. The governor will also talk about spending more on the SUNY/CUNY network, announcing the creation of an endowment fund to help pay for expenses and expansion. He will signal support for 2,000 more faculty members at CUNY and SUNY, probably phased in over five years, as recommended by a higher education commission that reported to him last month, said two people familiar with that part of the draft. "The failure to invest in this infrastructure will doom ourselves long-term," Spitzer told reporters outside the University at Albany's College of Nanoscale Science & Engineering after his first official visit to the $4.2 billion complex Monday. "If you do not build the best higher educational system -- if you do not invest in the intellectual foundation for the future economy -- then we will dissipate." He may also indicate his general support for a plan unveiled by the higher education commission that calls for tuition being adjusted campus-by-campus, based on ambitions and needs. However, he was vague when asked about it Monday, stating he is "hesitant" to raise tuition "if we can avoid doing so." Two people familiar with Spitzer's speech also said the governor wants to raise the idea of privatizing the Division of the Lottery, although the matter may be more fully explained at his budget address later this month. His Division of the Budget staff, concerned about closing a $4.3 billion budget gap, has been considering leasing to a private company all or part of the lottery operation and has also been reviewing borrowing against future lottery revenues, according to people informed of the discussions. The governor will also talk about setting up a property tax cap to prohibit the continued growth of local taxes despite substantial state aid. The upstate investment fund sounds like a good program, but more fundamental improvements are more important, said Brian McMahon, executive director of the New York State Economic Development Council. "Reducing taxes, energy costs, health care costs, costs that have made our business climate as poor as it is," he said. Spitzer will also disclose his plans for legislation aimed at dealing with the problems of foreclosures and victims of mortgage scams and unfair home loans. The nine-point bill he will describe has a lender liability provision to cover abuses by brokers. writers Marc Parry and Larry Rulison contributed to this report.
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