Hoyt: "Governor's Budget Could Derail Local Development"

According to this New York Times article, Governor David Paterson may put an end to controversial Empire Zone business incentives in order to balance the state's $15 billion deficit. Assemblyman Sam Hoyt is ready to ask Paterson to restructure the Empire Zone program locally so that the Canal Side Project, which falls within the zone, still enjoys program benefits.
"The governor's budget, which he'll submit tomorrow, marks the beginning of debate," Hoyt said. "It doesn't mean it will pass, but we've known for a a long time that the Empire Zone program is broken. When something is broken, it's going to be the first thing to go when you're looking at a 12 to 15 billion dollar deficit. We need to find out if it can be restructured and whether private developers can still reap the benefits of it."
Hoyt went on to say that the Canal Side Project, most of which is in his district, relies heavily on the ability of Benderson Development Corporation and Bass Pro to receive incentives through Empire Zone. "If Empire Zone is dropped from the budget, it will jeopardize the project," Hoyt said.
"There's a 30-day amendment period, during which the governor can modify his original proposal," Hoyt stated. "I'll do my best to make it clear that we need Canal Side to move forward."

As we mentioned in our previous post, we’re in the process of changing the Buffalo Rising site. We’re almost there as we expect to launch the new site on Friday, December 19th.
In the meantime, posting will be light as we log new stories in the new publishing system which will only be viewable when we launch on Friday.
As always, we appreciate our users’ patience as we make this transition but we promise it will be well worth it. With faster load times, a comment view … 




Comment Options
abc123
WOW! Sam the Man is handing out new promises. Who's gonna keep watch and see if he follows up on this one?
Report this
bhorvath
I see it differently - dropping Empire Zone in the long run will mean true believers in Buffalo will create redevelopment and weed out the cut and run Bendersons and Cimenellis of the world who ultimately rip off the City for their own pockets.
Yes, keep if for the canal project, grandfather it in or it will die.
Report this
Sal
I'll quote myself: "I guess Sam Hoyt has been working on this and not responding to my repeated request of explanation of NY RPTL section 1805 which protects NEW YORK CITY AREA PROPERTY OWNERS ONLY from high tax assessment increases. WHY CAN'T BUFFALO AREA PROPERTY OWNERS BE PROTECTED ALSO?"
Report this
Colin
The "promise" being handed out here is that he'll do his best. I'm sure he will.
Report this
Assaroni
Canalside is dead. Credit markets, budget shortfalls, lack of capital, and a shrinking population with the highest taxes in the country equal DOA. Unfort. Sa doesnt do a whole lot beside write letters and you people continue to vote him in year after year and then have the gall to bitch when he does nothing year after year..
Report this
STEEL
Its is a good idea to raise taxes and kill off any plan that would result in more taxes down the road. Of course if the whole state was treated as n empire zone the population of metro Buffalo would probably be more like 2.3 million people right now. What a bother all those extra people would have been and parking would have been a headache.
Report this
NBJOHN
Depression in Upsate = Secession of Upstate
We vote him in and he does nothing but draw a salary Shame on us.
My opinion....
Report this
Colin
1. I don't get the criticism of Hoyt here. There is a potential obstacle to a big development in Buffalo, he says that he'll try to do something about it, and then people claim that he "does nothing." It happens again and again here -- Hoyt announces he's secured funding for this or that project, or will look into this or that problem, and he's accused of doing nothing. Are the legislators who we never hear from doing less than nothing?
2. If upstate were to secede from NYS, we'd be a backwater basket case.
Report this
NBJOHN
1.We already are a backwater basket case.....At least we could govern our own govt and have Downstate govern it for us - and not care about us. I know I am just dreaming
2. Criticism of Hoyt is our perogative. He has been in office X number of years, and where are taxed to death and the area is worse off. He is my elective official - I can criticize all we want
I did not vote for Sam "Smiley clam bake " Hoyt
Report this
whynot
Keep increasing taxes... I heard the weather in North Carolina is fantastic this time of year.
BTW, we already are a backwater basket case. Western New York is a freaking joke and continues to make idiotic decisions that accelerates our decline. Our politicians are WORTHLESS! WORTHLESS! WORTHLESS!
I can't think of a local or state politician who is worth a damn to the people of New York. The bar is so low that a local politician only needs to cut a few ribbons or side with an easy win initiative for the people of WNY to say "he is doing a great job". Seriously, wake the fuck up people!
Report this
Buffalo21stcentury
Well eliminating Empire Development will ABSOLUTELY KILL ALL OF UPSTATE NY!
However, smart local politicians would immediately ask for all allocations of cheap hydro power devoted outside of the Buffalo Niagara Metro area be sold at market rates to fund local economic development.
We should immediately make the proposal to use a local asset to bargain for the maintenance of our local development incentives.
Report this
RaChaCha
I've been hearing since before the election that Obama has a major urban agenda in the works - and clearly the nation is now also looking at billions of dollars of reinvestment to help revive the economy. A simple and profound step, then, would be to allocate some of those resources to states to create the citywide equivalent of Empire Zones for financially struggling cities nationwide (which is most of them). That could spur private-sector urban reinvestment by lowering effective tax rates - effectively leveling the playing field with the suburbs. A recent Buffalo News editorial credited much of Boston's rebirth to a drastic tax cut - check it out: http://www.buffalonews.com/149/story/417990.html.
Three days ago, the mayors of Great Lakes cities jointly called for an urgent economic recovery effort focused on investment in public infrastructure and creating jobs within Great Lakes region (www.glslcities.org/news.htm). Perhaps, then, the region would be a good pilot location for these citywide reduced tax zones. It can only be imagined what that could do for Buffalo.
Report this
Colin
1. WNY gets more from the state than we give. If we were to remove ourselves from NYC/Long Island/Albany, we would get poorer. I'm not in favor of getting poorer.
2. Criticism of Hoyt -- or any pol -- is certainly a voter's prerogative, but the criticism here is just stupid. To say that someone isn't doing anything after he lets you know he's done something is just dumb.
Report this
whynot
Colin - What exactly has Hoyt done? He said that he would like to maintain the status quo funding for the waterfront, that must have been really difficult for him. It is a no lose proposition for him, if status quo is maintained than we say that he has done something, if not then it was out of his hands. We are paying him for this?
I agree that we cannot remove ourselves from downstate, as a region. That said, more and more New Yorkers are seceding themselves from the state to better opportunities and quality of life in other states. That alone will ensure that the decline continues and the taxes will increase for those who stay. So what is Hoyt doing about this???
Report this
RonR
@Colin-
I am not sure about the statement of WNY getting more from the state than it gives. Consider this.
If WNY or Upstate for that matter were to leave New York, they would be able to draft new rules for everything. Things like Medicaid, Welfare and Union laws like Wicks could all be removed or restructured. Costing the area MUCH MUCH less to exist.
Here is another way to look at it. 90% of the county budget is for mandates from the state. Some are funded and a lot are not. If Upstate were to become a new state, I am pretty sure that 90% could be reduced in half. Which would reduce the budget to the level were state funds received would not matter.
Additional to this, if upstate were to become a state, it would get Federal funds that would not have to be shared with downstate or wasted on unfunded or funded mandates.
Report this
Assaroni
I want Sams job. Its better than being a weather man! Say whatever you want, bang an intern, and keep your job and salary...What gives? No accountability for any of our pols.
Report this
Colin
1. What has Hoyt done? This site is full of stories about some project that he's pushed, or some funding he's secured for a local initiative, or some issue he thinks is important. Now, you might disagree with him about these things -- you might think that the project is a bad idea, or that the funding is pork, or that the issue is trivial. And that's your right as a citizen. But the claim that he "does nothing" is false.
2. Sure, if upstate seceded we could write new laws for the new state. But is there really reason to think that things would be that different? The process of writing those new laws would be influenced by the same forces that had influenced the drafting of NYS law previously. Business groups, civic groups, unions and the like wouldn't simply disappear. And many of the unfunded mandates from Albany are actually handed down from Washington DC.
Report this
NBJOHN
What has Sam Hoyt done??? Every intern Albany...Wooo Hooo
I guess that is what we pay him for...
Report this
sonyactivision
Upstate should secede. Being left to fend for ourselves and then taxed for the privilege was what lead to the United States to begin with. If Downstaters want to pay $20 for a pack of smokes and take out a second mortgage to cover the property taxes, then I say, enjoy. But Upstate wants to compete and to rebuild and that useless ballast in Albany just keeps us underwater. Secede now...and let them keep Albany as a special parting gift.
Report this
abc123
From Colin: 1. What has Hoyt done? This site is full of stories about some project that he's pushed, or some funding he's secured for a local initiative, or some issue he thinks is important. Now, you might disagree with him about these things -- you might think that the project is a bad idea, or that the funding is pork, or that the issue is trivial. And that's your right as a citizen. But the claim that he "does nothing" is false.
Colin, that's the issue - plenty of plans and promises and nothing finalized. Therefore, I use your question - What has Sam Hoyt -DONE-?
Report this
BacktoBuffalo
I think the Empire State Development Corporation has more pull than Sam Hoyt to save the Enterprise Zones. Sam is just jumping on a hot issue like he always does. Either he focuses on neighborhood-based issues that a freakin block club could handle (e.g. rowdy students in the Elmwood Village area) or he inserts himself into an issue even though he is totally irrelevant (e.g. pulling his relatively miniscule discriminatory funds from the Westside Housing organization and thinking it would have an affect).
Why doesn't he find an important issue, focus on it, and make it happen - be an Assemblyman!
Report this
Biniszkiewicz
Re: Secession:
Colin, I disagree. I do think things would be substantially different and better if upstate could write its own set of laws. We would end up with a tax rate much more similar to PA and OH than NY. Municipal unions, labor unions, medicare, workman's comp: a litany of expenses would go by the wayside if downstate didn't dominate state government.
A dozen years ago I was listening to Len Lenihan address a group and answer questions about the cost of government. With regard to Medicare, Lenihan explained that the federal government requires all states to fund at least ten circumstances from a list of possible coverages for medicare recipients. Beyond those ten there were another 29 eligible circumstances which states could opt to cover or not as they saw fit; the feds would pay half, the state pays the other half. NYS was the ONLY state in the union that picked ALL coverages. According to Lenihan at the time, it was a better package than state employees. This kind of fiscal largess would stop cold if left to the decimated communities of upstate. NYC is an entity unto itself economically. It is one of the great cities of the world with extraordinary appeal to corporations, patrons of the arts, tourists, etc. It's a Paris, a Tokyo, a London. As such it is largely immune to added costs of doing business. Not so upstate. We are not going to be able to secede. But we'd be far more competitive if we only could.
Report this
sbrof
I think the amount of power alone that WNY has 'given' to downstate for the past 50 years is more than everything else combined that we get back from them. The cheap power from the Falls should have been a catalyst of our economy. They loose 30% of it in transmission loses.. that 30% alone could reshape our region.
Report this
Colin
"Municipal unions, labor unions, medicare, workman's comp: a litany of expenses would go by the wayside if downstate didn't dominate state government."
I honestly don't get how this would happen. The municipal unions of Buffalo and other upstate cities wouldn't disappear in a new state -- their contracts are with municipalities, not with the state. Other unions, who have contracts in the private sector, wouldn't vanish, either. Unless we shipped off all our old people to NYC as part of the deal, I don't see how medicare would disappear. And I guess that we could write new worker's comp rules, but that process would be subject to the same sorts of pressures that produced the current set of rules.
Report this
Biniszkiewicz
Colin: the way it would change, as I see it, is that we wouldn't be saddled with the Taylor law with regard to public employees (which requires arbitration greatly benefitting unions as opposed to taxpayers); we wouldn't be saddled with the necessity to hire unionized construction labor with regard to state funded public construction projects (which drives up cost); we wouldn't offer such generous welfare and medicare benefits, but rather something more in line with our immediate neighbors. How do you explain the circumstance that Pennsylvania and Ohio, similarly located, feature far lower tax rates than New York?
Without NYC's influence in the legislature, charter schools would be far more abundant (reducing the incredible costs of public education) and public employees (police, fire, teachers) wouldn't be granted excessive medical retirement benefits, nor retirement pay based upon the employee's overtime laden final year of 'public service'. Doesn't it infuriate you that police and firemen routinely inflate their pensions by working 80 hours a week for their final year, enabling them to retire with more pension than their salary? Credit NYS's coddling of unions. In the environment of upstate, where every municipality is dying (save for, perhaps, the elite of Saratoga and the state capital which is dependent upon tax dollars for its economy), this excess would not be tolerated. That it is tolerated can be directly tied to NYC's immunity to the impact of unfunded state mandates.
Report this
Colin
Bini --
I get what you're saying, but I think you're missing a key point -- the forces that pushed for the laws you mention wouldn't disappear. You might want more charter schools, but NYSUT doesn't -- and they would still be a powerful force in upstate. The municipal unions you mention would still be powerful. You might want less healthcare spending, but SEIU 1199 certainly doesn't. The same thing is true of all the other "special interests" -- community groups, school boards, local governments, IDAs, business groups, culturals, etc. And it's hard to imagine the public authorities simply relinquishing control of their fiefdoms that happen to fall within the boundaries of a new state.
Report this
sonyactivision
^As a Right to Work state, a fully separated Upstate could deal a powerful blow to these unions since they would be stripped of the cover that Albany has given them for decades. Not that they would disappear entirely but rather, these unions would have a different experience negotiating with communities that can determine their own fate. When you look at the L.I.R.R. disability scam, you see the effect that union control of Albany has had. As for those other special interests, they have to learn to adjust to the realities of the economy Upstate and deal with it. If Western NY were ever to redraw the lines and get competitive, there would be new investment and business activity to re-energize those interests...privately.
Report this
whynot
The State is screwed for all the reasons that Colin mentions above. There is no hope short of rebuilding after the total economic collapse that we are quickly nearing.
Report this
jen
The idea of seceding would be interesting, but unless upstate stockpiles massive amounts of cash, it would crash and burn. Even if all the unions and retirees were no loner paid starting day one, that still leaves a lot of poor, elderly, students, hospitals, SUNY, schools, social services, not to mention cultural institutions that upstate would still need to pay for. Upstate would have to leave NY State over a number of years to ease the transition. I imagine many people would leave due to the uncertainty. The current population might not even be around to see the "final result". Not to mention all the lawsuits I am sure would be filed. It's an interesting thought though.
Report this