ECONOMIC DEVELOPMENT AND REVITALIZATION

• We must lay the foundation for the economy of the future, and that means investing in infrastructure.

• The Metropolitan Transit Authority has projected that its 2009 budget gap will be at least $1.2 billion. Governor Paterson will implement the recommendations of the Ravitch Commission to keep the MTA strong. 
• Governor Paterson will continue to move forward on major infrastructure projects across New York, including the Second Avenue Subway, the East Side Access, the Tappan Zee Bridge and the Peace Bridge.
• He will also consider the recommendations of the Commission on State Asset Maximization. Governor Paterson is a strong proponent of partnering with the private sector to maximize public assets. The private sector can contribute expertise and much needed capital for existing asset classes, including transportation, higher education, K-12 education, energy, and surplus properties.

• Governor Paterson reiterates his support for property tax relief and the need to lower the cost of doing business in New York.

• Governor Paterson has proposed capping property taxes, relieving state mandates, and helping improve the efficiency of local governments.
• There are more than 4,700 independent local government entities statewide, with municipal borders established centuries ago, supplemented by a tangle of special districts and entities providing a patchwork of services.

• Specifically, Governor Paterson has called on the Legislature to join him in acting on the recommendations of the Commission on Property Tax Relief and the Commission on Local Government Efficiency.

• Governor Paterson puts forth bold reforms to the Empire Zone Program.

• The Empire Zone program was established to attract new business and to encourage existing businesses to expand and create more jobs. It is not working.
• The proposed reforms to the program will refocus the program’s strategy on attracting commerce and industry to New York that will contribute economic benefits well in excess of the tax benefits provided; reduce the cost and limit out-year growth of the existing program; and significantly improve the accountability for the program by consolidating authority and responsibility for administration.
• There are currently 85 Empire Zones with more than 9,200 participants. Governor Paterson has proposed requiring every participant to produce 20 dollars of benefits for every dollar of state money invested. Only the programs that meet or exceed this requirement would continue to receive tax benefits. 
• These reforms will save the state $272 million in 2009-2010.
• Governor Paterson has proposed reinvesting $100 million of the full annual Empire Zone savings to establish a new economic development grant program and to offer tax credits for research and development in strategic sectors.

• Speaking of one state, one future, Governor Paterson is committed to developing and revitalizing every part of New York State. 

• Governor Paterson has reunited New York’s economic development programs, instead of keeping them split into Upstate and Downstate. 
• Governor Paterson remains committed to the Upstate Revitalization Fund, and he has tasked the Empire State Development Corporation with identifying transformational projects Upstate.