Paterson's 2008 Budget Proposal could hurt economic development

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Paterson's 2008 Budget Proposal could hurt economic development

By EVAN WHITE

Story Created: Dec 18, 2008 at 12:10 PM EST

Story Updated: Dec 18, 2008 at 5:35 PM EST

FRANKFORT, N.Y. (WKTV) - The only consistent theme in this year's budget proposal is that everyone seems to have an issue with some aspect of it.

Governor David Paterson's proposal calls for reform of the Empire Zone program - restructuring of state agencies among among other cuts.

The main sticking point for Herkimer County Executive Director Mark Feane has to do with Empire Zone programs which provide tax incentives to businesses.

Under the plan, all participants would need to demonstrate $20 dollars in investments and wages for every dollar that the state invests just to stay in the program.

This "20 to 1" plan would continue through June 2011.

The Governor projects savings of $272 million for taxpayers, and Feane feels that that is too costly to businesses.

"That would affect nearly all if not all of the 56 companies that were certified. For Instance we have our 2007 report those companies which employ 3,000 people had an investment level of $23 million," said Feane.

Feane acknowledged that changes are needed for the Empire Zone Program, but isn't in favor of the drastic restructuring Paterson is calling for.

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