Hits: 0
WPCNR FOR THE RECORD. From the Governor Andrew Cuomo wesbite. January 5, 2012:
Wednesday, Governor Andrew Cuomo addressed the state legislature on his goals for 2012. Focusing on growing the New York economy, the Governor put forth an agenda to rebuilding New York’s infrastructure requiring billions of new construction dollars.
Here is the text of the Governor’s speech:
One year ago — almost to the day — I delivered my first
State of the State address as your Governor.
I said last year that New York was at a crossroads.
New Yorkers were hurting. The economy was causing
hardship and anxiety. People needed help. But our State
government was mired in scandal, ineffective, and rife with
partisanship.
One year ago, we were divided as a state: Upstate and
Downstate, millionaires and the middle class, gay and
straight, Democrats and Republicans.
Our state had a deficit. And not just a fiscal deficit, but even
worse, a trust deficit, a performance deficit, and an integrity
deficit.
New Yorkers deserved better — and New Yorkers knew it.
For me, the Capitol building itself was a symbol of the
deterioration, decline, and dysfunction of State government.
It had been under renovation for eleven years, and it was
scheduled to take an additional four. By the time they were
done with the repairs, we would have had to start all over
again!
The situation was grim. Our people had problems, and our
2
government did not have the capacity or the credibility to
help.
New Yorkers had a choice to make. We could remain
dysfunctional and divided, or we could come together,
reestablish our government, and rebuild our great state. We
made the right choice.
We chose to begin to change the culture of Albany.
To put the people first.
To rebuild the trust.
To restore our deteriorating Capitol.
And in just one year, working together, we made great
progress. The 234th Legislative Session was one of the
most productive for our state government in modern political
history.
We began the year by closing a $10 billion deficit with no
gimmicks, and we did it on time. The budget included
historic reforms to redesign and consolidate state
government, eliminate automatic spending increases that
cost New Yorkers billions of dollars, and cap spending
increases for education and Medicaid.
After 20 years of failure, we enacted the state’s first-ever
property tax cap. New York’s property taxes are among the
highest in the nation, but for more than 15 years, both
houses of the Legislature and three governors failed to bring
these skyrocketing costs under control. The tax cap that we
enacted limits increases in property taxes to 2 percent, or
the rate of inflation — whichever is less. Schools and local
governments can go beyond the cap, but only if 60 percent,
respectively, of the voters or local legislative body approve.
3
We eliminated over 3,800 prison beds and 370 juvenile
facility beds — because we finally accepted that prisons are
not an economic development program. In addition to the
closure of Tryon Boys Residential Center in January 2011,
we shut four residential juvenile facilities and downsized
another four. We have worked to put a greater emphasis on
prevention and on community-based alternatives to
incarceration.
We eliminated the MTA payroll tax for almost 290,000 small
businesses, 81 percent of small businesses in the MTA
region. In addition, we cut the payroll tax by as much as
two-thirds for more than 6,000 businesses with payrolls
between $1.25 and $1.75 million. We also eliminated the
MTA payroll tax for over 410,000 self-employed taxpayers
who make less than $50,000 a year. The total savings from
the MTA tax cuts will be $250 million. The state will
compensate the MTA for revenue lost as a result of the tax
cut.
We passed the toughest rent regulation laws in 30 years.
The new laws will protect more than one million New
Yorkers from skyrocketing rent by, among other things,
raising the deregulation rent threshold for the first time since
1993 and raising the income threshold for the first time since
1997. It will also help prevent landlords from manipulating
the system to move apartments out of rent regulation.
We executed a new economic development policy with our
New York Open for Business campaign and by establishing
Regional Economic Development Councils across the state.
We passed an affordable energy policy with Recharge NY,
on-bill energy efficiency financing, and, after a decade of
trying, an Article X electric generation siting law. These
programs will lower energy costs, promote energy efficiency,
and reduce pollution.
4
We passed ethics reforms to restore trust in government.
The Public Integrity Reform Act of 2011 contains some of
the most comprehensive ethics improvements enacted in
state government. Among other things, it requires state
officials to disclose outside clients and customers, requires a
detailed disclosure of officials’ income and assets, creates a
database of all individuals and firms that represent clients
before state agencies, requires all lobbyists and clients of
lobbyists to disclose all business relationships with public
officials, and broadens the definition of lobbying. And it
strips public officials convicted of a felony in relation to their
office from receiving their taxpayer-funded pension.
We attacked chronic, high unemployment among
disadvantaged inner-city youth with an innovative jobs
program that will provide immediate tax credits to
businesses that hire our youth and will also provide training
to make sure these youths are ready for employment.
We provided desperately needed flood relief to stormravaged
homeowners, farmers, and small business owners.
We restored New York’s reputation as the progressive
capital of the nation. We passed landmark achievements in
social justice and economic justice.
For decades, millions of New Yorkers had been treated as
second-class citizens by their own government. We ended
that injustice. We stopped the discrimination. We made
history. We led the nation. We passed marriage equality for
ALL New Yorkers and we did it together. With this historic
victory, New York is the largest state in the nation to grant
same-sex couples the freedom to marry.
But we didn’t stop there. We also fought for tax fairness.
For decades, millions of New Yorkers were burdened with
an unfair tax code. Whether a person made $20,000 or $20
million, they paid the same rate. It was just wrong —
5
because a flat tax is not a fair tax. Last month, we changed
that, adding new brackets for the middle class and for highearners.
Our principle is simple: the more you make, the
higher rate you pay. And we stimulated our economy by
cutting taxes for New Yorkers earning $40,000 to $300,000.
Today, the middle class is paying the lowest rate in 58
years.
Without a doubt, 2011 was a successful year for our state. It
was also a challenging year. And the most heroic acts of
last year did not happen in Albany — they happened in
communities across the state.
Last summer, Hurricane Irene and Tropical Storm Lee
devastated communities all over the state — communities
that could least afford it. We are still reeling from the
damage today. But in our darkest hours, New York shined
the brightest, and the storm clouds had a silver lining: the
way New Yorkers responded.
People all across the state came together in a beautiful
display of community. And our first responders were
selfless. They were professional. And they were
courageous. They are what public service is all about.
We have accomplished much, there is no doubt. We have
been through much, there is no doubt. But there is also no
doubt that we have only just begun. We have established
the capacity and credibility to govern. We have reversed
decades of decline. Now is the time to get to work —
building a New New York.
In New York, we may have big problems, but we confront
them with big solutions. Today, I am laying out a three-part
plan:
1. The next phase in our economic blueprint for growth
6
2. A reimagined government that can make our plans a
reality
3. And a New York vision for a progressive future
THE ECONOMIC BLUEPRINT
Our challenge for 2012 is this: How does government spur
job creation in a down economy while limiting spending and
maintaining fiscal discipline? The answer: Creative publicprivate
partnerships that leverage state resources to
generate billions of dollars in economic growth.
We Will Build the Largest Convention Center in the
Nation
Let’s begin by building on our economic strength.
New York is an international destination. Tourism is at
record numbers. Tourists spent $50 billion in New York State
in 2010. We know that if we build it, they will come —
because New York is the place to be. But we must stay
ahead of the competition.
Convention centers are important generators of economic
activity. New York needs a larger, state-of-the-art venue to
be competitive for the largest tradeshows and conventions.
The Jacob Javits Convention Center on Manhattan’s West
Side is obsolete and not large enough to be a top tier
competitor in today’s marketplace. The Javits Center is, in
fact, 12th in the nation in size — behind the convention
centers in Anaheim and Atlanta.
This is not a new problem. We have talked about it for
7
years. But today is different, because today I propose we do
something about it. I propose that we build the largest
convention center in the nation. 3.8 million square feet —
larger than McCormick Place in Chicago, which is currently
the largest in the United States. This will bring to New York
the largest events, driving demand for hotel rooms and
restaurant meals and creating tax revenues and jobs, jobs,
jobs.
We are pursuing a joint venture with the Genting
Organization, a gaming development company, to complete
this vision at the Aqueduct Racetrack venue. It is a $4 billion
private investment that will generate tens of thousands of
jobs and economic activity that will ripple throughout the
state. In addition to the new convention space, up to 3,000
hotel rooms will be developed. We will make New York the
#1 convention site in the nation.
We Will Master Plan the Javits Convention Center Site
We can then master plan the 18-acre Jacob Javits
Convention Center site as a mixed-use facility to revitalize
New York City’s West Side. We will follow the highly
successful Battery Park City model, which has resulted in
housing, hotels, museums, and over 10 million square feet
of Class A office space. As part of the redevelopment, we
will explore options for serving the needs of smaller and
medium sized trade shows at the Javits site or elsewhere on
the West Side of Manhattan.
We estimate over $2 billion in private sector development in
creating a new 21st century neighborhood for the West Side.
To put it in perspective, the Javits Center site is larger than
the World Trade Center and the United Nations. This will
complement the development at Hudson Yards and
Moynihan Station.
8
$1 Billion Economic Development Package for Buffalo
While we build on our strength in New York City, we must
also invest in the struggling areas of our state. New York is
a stronger state when every region of our state is strong.
Buffalo has the third highest poverty rate of any city in the
nation, behind only Detroit and Cleveland, with 28% of
residents living in poverty and chronically high
unemployment.
But it doesn’t have to be that way.
We know from experience that large investments in growth
industries can pay substantial dividends. Twenty-five years
ago, the state began investing in the Albany area’s high-tech
industry. Today, the Albany area is a world-class center for
nanotechnology innovation and the home of major
semiconductor manufacturers. We saw great results from a
substantial, sustained state investment.
We can do it again. We did it in Albany, and we can do it in
Buffalo.
Buffalo has the workforce, the talent, the resources, and the
will to succeed. We believe in Buffalo. And we’ll put our
money where our mouth is.
So, today, I say to national and global industries: Come to
Buffalo. The State of New York is ready to invest $1 billion
in a multi-year package of economic development
incentives. That’s a “B” — for $1 billion and for Buffalo.
Let’s empower the Buffalo Regional Council to develop a
viable plan to create thousands of jobs and to spur at least
$5 billion in new investment and economic activity.
9
I have asked Bruce Katz of the Brookings Institution, a
national expert on regional economic development
strategies, to work with Buffalo to meet this challenge.
Second Round of Regional Economic Development
Awards
Last year, we implemented our new economic policy:
A macro strategy with New York Open for Business, a
coordinated communications and marketing effort
demonstrating to business leaders throughout the
world the benefits of doing business in New York
State; and
A micro strategy with the Regional Economic
Development Councils.
The Regional Councils exceeded all expectations across the
state and redefined the way New York invests. Lieutenant
Governor Bob Duffy has done a remarkable job in this effort.
The councils transformed the state’s economic development
approach from a top-down model to a bottom-up,
community-based one. The Councils act as a coordinated
point of contact for state-supported economic development
funding and business assistance programs in each region.
This year, $785 million was awarded through the Councils.
We will keep the momentum going this year. We will be
launching a $200 million second competitive round of
regional economic development awards.
This year, New York Open for Business will go global and
include a new effort coordinated by the Empire State
Development Corporation and the Port Authority to boost
New York’s international competitiveness and market New
York to the world as a place to invest and do business. New
10
York Open for Business will also promote tourism by
highlighting our regional treasures like the Adirondacks,
Catskills, our wine country, and our Long Island beaches.
We have the greatest attractions in the country; let’s market
them properly and generate more tourism throughout the
state.
Comprehensive Approach to Casino Gaming
We have long flirted and dallied with another potential
economic engine — casino gaming — and when it comes to
gaming, we have been in a state of denial.
It’s time we confronted reality.
It’s not a question of whether we should have gaming in New
York — the fact is we already do. Native Americans have
five casinos in New York and we have nine racinos at our
racetracks. We don’t fully realize it, regulate it, or capitalize
on it, but we have gaming. In fact, New York State now has
29,000 electronic gaming machines — more than Atlantic
City, and more than any state in the Northeast or Midwest.
Our state is also surrounded by gaming. States and
Canadian provinces just across our borders have legalized
casino gaming. They get the tourism, the revenue, and the
good jobs that belong here.
It’s estimated that over $1 billion of economic activity from
gaming can be generated in our state. Therefore, let’s
amend the Constitution so that we can do gaming right. And
let’s take the first step this year.
The NY Works Fund and Task Force
We have a great opportunity to rebuild New York. We need
private sector jobs, and we also need to rebuild our
11
infrastructure to keep New York competitive and safe.
Currently:
32 percent of the state’s bridges are rated deficient;
40 percent of the state’s roads are rated fair or poor
and getting worse; and
83 percent of our state parks and DEC’s major dams
are in disrepair.
We have much work to do. We cannot wait. And we need a
new approach to get it done.
Today, I am announcing the New York Works Fund and
Task Force to master plan, coordinate, leverage, and
accelerate capital investment and put thousands of New
Yorkers to work in every corner of the state. We will
leverage state investment by a multiple of 20-to-1.
We will improve or replace more than 100 bridges. And we
will finally build a new the Tappan Zee Bridge — because 15
years of planning is too long. We will repair 2,000 miles
worth of roads – that’s like driving from Buffalo to New York
City five times! We will build new roads, bridges, and other
critical transportation projects across the state.
We will finance upgrades to 90 municipal water systems.
We will improve 48 state parks and historic sites visited by
over 37 million people each year.
And in the wake of Hurricane Irene and Tropical Storm Lee,
we will repair 114 flood control projects and dams.
12
Strengthen Our Energy Infrastructure with an “Energy
Highway” System to Power New York’s Economic
Growth
Another key to powering our economic growth is expanding
our energy infrastructure. Just as President Eisenhower’s
interstate highway project propelled the nation forward in the
1950s, today the energy grid provides critical infrastructure
and an opportunity for economic growth.
We have an excess of generation capacity and tremendous
wind power potential in Upstate and Western New York and
north of the border in Quebec. We have tremendous energy
needs Downstate. Just as we built the New York State
Thruway to unite distant parts of the state, we will develop
an “Energy Highway” system that will bring excess fossil-fuel
energy from Western New York downstate, and also tap into
Upstate’s potential for renewable energy, like wind power.
Just like we built the Northway, we will develop an energy
expressway down from Quebec. This will preserve Western
New York’s current allocation of low cost hydropower and at
the same time help address the energy needs of Downstate.
To make this happen, we will issue requests for proposals to
implement a master plan to power our needs for the next
half-century. We believe private companies will finance and
build $2 billion in infrastructure to complete the system and
build the capacity to supply New Yorkers.
We will also work on repowering old and dirty plants so they
stop polluting our urban neighborhoods and start increasing
energy supply. The permanent Article X energy siting law
we passed last year will be a critical tool to help with meeting
our energy needs and protecting our environment in this
effort. Not only will it fast-track much needed energy
generation projects, but it will also be a model for including
13
some of the strongest environmental protection regulations
in the nation.
MTA Investment
Investments by the Metropolitan Transportation Authority
help protect the reliability of the transportation network that
supports the metropolitan New York regional economy and
8.5 million riders a day. MTA capital investment is also a
major driver of economic activity and infrastructure
development. The MTA’s “Built in NY” program has an
impact on economic development throughout New York
State, from Oriskany to Jamestown, Yonkers to
Plattsburgh. Vendors and suppliers around the state
support MTA work and provide thousands of local jobs. We
will continue to work with the Legislature to support the MTA
capital program, not only for the system’s 8.5 million daily
riders, but also for manufacturing in the state.
Invest in Solar While Protecting Ratepayers
New York is a national leader in renewable energy
production and use. Not counting our large-scale
hydropower resources, close to 2,000 megawatts of
renewable energy capacity have been built in New York — a
number nearly three times greater than the combined total of
Massachusetts, New Jersey, and Connecticut. Moreover,
we have one of the most cost-effective renewable resource
development programs in the country.
New York is fortunate to have abundant water, wind,
biomass, and solar resources. Over the decades, we have
aggressively developed our hydroelectric resources and are
making great progress in tapping our land-based wind
resources. Now it is time to focus more attention on
exploiting our solar potential.
14
But we need to do this in ways that protect the ratepayer —
and certain approaches that have been proposed do not
meet both goals of expanding production of solar energy and
protecting the ratepayer. Solar power is still more expensive
per megawatt hour to develop than other renewables.
Therefore, we will greatly expand the state’s solar programs,
but as we do so we will keep an eye firmly on costs. We will
increase competitive procurement of large, commercialsized
solar projects. And we will expand rebate programs
for residential and commercial small-to-medium systems.
In its first year, the NY-Sun Initiative will be capable of
doubling the customer-sited photovoltaic capacity that was
installed in 2011. By 2013, we estimate that NY-Sun will
quadruple the 2011 capacity. We will continue to establish
New York’s technology leadership in this important emerging
market while balancing investments in other renewable
resources and protecting the taxpayer. This approach will
create jobs, expand solar power, and protect ratepayers — a
win, win, win.
Expedite On-Bill Financing for Consumer Energy
Efficiency Upgrades
New York was the first state in the nation to offer a statewide
program that allows consumers to retrofit their homes with
energy efficient upgrades and pay for the cost on their
monthly energy bill. The work pays for itself over time
because the energy savings reduce consumers’ energy bills
by more than the cost of repaying the loan. On-bill financing
was scheduled to commence in June 2012, but we have
reached an agreement with utilities to begin offering it in
January 2012. This early start will help produce immediate
jobs, and it has the potential to provide benefits to 40,000
homes across the state.
15
Master Plan for Energy Efficiency in State Facilities
In order to promote energy efficiency — and, at the same
time, save money, create jobs, and reduce pollution – we
are developing a master plan for accelerating energy-saving
improvements in state facilities. The plan will call for
substantial investment in cost-effective energy efficiency
measures in state buildings over the next four years.
Millions of dollars can be saved if we implement economical
energy efficiency measures. All of this will be accomplished
at no cost to the state because the upfront investment will be
repaid from the energy savings.
Beyond the financial benefit, this program will also create
thousands of highly skilled jobs across the state, including
energy auditors, planners, engineers, electricians, and
construction workers, and it will reduce lifecycle greenhouse
gas emissions by 8.1 million metric tons — roughly
equivalent to removing 1.4 million passenger vehicles from
the road for one year.
Hydraulic Fracturing in the Southern Tier
In 2011, the Department of Environmental Conservation
(“DEC”) conducted a comprehensive review of the impact of
proposed gas drilling using high-volume hydraulic fracturing.
DEC presented for comment significantly improved
measures to protect the state’s drinking water, air, land, and
other natural resources, and completed a study of potential
socioeconomic impacts. DEC released the revised draft
Supplemental Generic Environmental Impact Statement and
comprehensive regulations governing all aspects of high
volume hydraulic fracturing. DEC also held four public
hearings around the state, attended by a total of 6,000
16
people. The Department received more than 15,000
comments.
DEC is reviewing all the comments and expects the final
environmental impact study and the advisory panel’s
recommendations to be released in 2012, before any
decisions are made on how to proceed.
Farm-NY: Strengthening Our Agriculture Sector
Agriculture contributes billions of dollars to New York’s
economy and has even more untapped capacity. We must
do more to support and grow this critical industry. There is a
serious need for new and upgraded farm infrastructure, and
farmers will need access to low-interest loans, especially if
interest rates rise in the next few years, to make these
improvements.
We will free up vital capital by expanding the New York State
Linked Deposit Program (LDP). Administered by the Empire
State Development Corporation, the Linked Deposit
Program provides farmers with capital at affordable interest
rates. Currently, farmers can qualify for loans at a 3 percent
interest rate reduction, if the project is located in a
designated area of the state. We propose modifying the
program to allow farmers anywhere in the state to qualify.
The U.S. Department of Agriculture has identified “food
deserts” in 32 of New York’s 62 counties, affecting more
than 600,000 New Yorkers. Data show that almost 1.5
million New Yorkers live in areas with limited supermarket
access. To help meet these New Yorkers’ needs, we plan to
expand FreshConnect farmers’ markets, which have been
highly successful. For example, our flagship market in
Harlem attracted approximately 2,000 people each week.
Finally, we will promote food distribution by creating largescale
distribution hubs strategically located across the state.
17
Expanding food access for underserved communities can
improve nutrition and lower costs related to obesity and dietrelated
disease while fostering community and economic
development. Tackling the food access problem with New
York agricultural products is a “win-win,” benefitting
underserved communities and New York farmers alike.
REIMAGINING GOVERNMENT
Without a doubt, this is an ambitious agenda. And we need
a government that can make it happen. This is not a
question of tinkering around the edges. We have to
fundamentally reimagine how government operates.
We need a government that performs better and costs less.
A government that works for the people must make a longterm
commitment to fiscal discipline. Our state is better able
to compete when we keep taxes down. That means holding
the line this year and agreeing to close our remaining $2
billion budget deficit with no new taxes and no new fees.
It also means enacting mandate relief. By next year,
pension costs for schools and state and local governments
will have increased 100 percent since 2009. We need to
reform the pension system and create a Tier VI.
The joint Legislative and Executive Mandate Relief Council
we created last year will begin its work this month. I will
request that the Council hold public hearings. We need a
robust public discussion on the pros and cons of the
mandates. The Commission will issue a package of
recommendations by the end of the session. We need a yea
or nay vote this year.
18
Using Technology to Improve Performance and Reduce
Cost: Virtual Capitol Online
To give our citizens more direct access to state government
and to improve their customer experience, we are creating a
“Virtual Capitol Online,” a one stop shop for citizens.
The Virtual Capitol Online will feature a seamless approach,
allowing citizens young and old to easily access information
about an array of state agencies. It will also build on existing
efforts to simplify online procedures for citizens searching for
a range of services, such as finding support for a business,
accessing health and human services information, and
interacting with tax, labor, and motor vehicle agencies.
Education Commission to Promote Performance and
Accountability
As we reimagine government, we must focus on our core
values.
The future of our state depends on our public schools. A
strong, effective school system is the hallmark of a healthy
democracy.
We must make our schools accountable for the results they
achieve and the dollars they spend.
I learned my most important lesson in my first year as
Governor in the area of public education. I learned that
everyone in public education has his or her own lobbyist.
Superintendents have lobbyists.
Principals have lobbyists.
Teachers have lobbyists.
School boards have lobbyists.
19
Maintenance personnel have lobbyists.
Bus drivers have lobbyists.
The only group without a lobbyist?
The students.
Well, I learned my lesson. This year, I will take a second job
— consider me the lobbyist for the students. I will wage a
campaign to put students first, and to remind us that the
purpose of public education is to help children grow, not to
grow the public education bureaucracy.
Today, we are driven by the business of public education
more than the achievement in public education. Maybe
that’s why we spen
