[0:09] Good morning, everyone. Let's get started now.

[0:16] welcome to the october 9 hearing on economic development hosted

[0:22] by myself and my colleagues, assemblywoman buttenschon.

[0:33] let's see. We are going to give asd five

[0:42] minutes-- esd five minutes for testimony and if you need more

[0:44] time after that, we'll give you more time and then we'll go to

[0:48] questions. Okay.

[0:48] are you ready? Go ahead.

[0:50] >> I just want to say good morning to everyone and I

[0:53] appreciate our colleagues being here also.

[0:57] so again, chair stirpe and I sincerely appreciate those that

[1:05] have come in to do testimony today and more importantly, to

[1:12] hear from you so that as chair of small business, we ensure

[1:19] that the foundation of those businesses throughout the state

[1:22] of new york can continue to thrive.

[1:25] so, again, thank you, everyone. >> would you guys like to say

[1:35] anything? >> just say thank you for being

[1:39] here. >> any other comments?

[1:47] no? Okay.

[1:53] all right. Thank you.

[1:54] you can get started now. >> good morning.

[1:57] thank you chairman stirpe, chairwoman buttenschon and

[2:00] distinguished members of the state assembly.

[2:03] my name is hope knight. I serve as president and c.e.o.

[2:07] of empire state development and commissioner of the department

[2:10] of economic development. I'm joined today by esd chief

[2:17] operating officer and deputy commissioner kevin younis.

[2:22] new york's economic resiliency remains strong despite federal

[2:25] uncertainty. As new tariffs and failed

[2:30] policies create economic head winds nationally, we are taking

[2:33] proactive measure to mitigate impacts and identify

[2:36] opportunities for growth and help businesses and stakeholders

[2:39] navigate these challenges. We have diversified our economy,

[2:43] continue to support small businesses and created new job

[2:46] opportunities for all new yorker s.

[2:49] since governor hochul took office, new york has gained more

[2:52] than 800,000 new private sector jobs, a growth rate of 10.4%

[2:58] outpacing the national rate of 8.6%.

[3:01] esd is taking an active role in analyzing the impacts of

[3:06] tariffs. At the governor's direction, esd

[3:09] to provide a comprehensive tariff report and understanding

[3:14] of the reeled world consequences that federal policies have

[3:16] imposed on our economy. This will lead to better equip

[3:20] the state's businesses we created a user friendly tariff

[3:23] guide and launched an online tariff impact survey for

[3:27] businesses to share direct feedback.

[3:29] over the past year, eds expansion in rome.

[3:40] this project, which will be the largest investment in natural

[3:45] food manufacturing in the nation , will create over 1,000

[3:48] jobs and use 12 million pounds of milk per day, all sourced

[3:53] from new york farmers. Which I bony is locating it's

[3:57] project on the site prepared under esd new york program cho y

[4:10] chobani is one of several companies making up new york's

[4:13] ecosystem which continues to grow under governor hochul's

[4:16] leadership. At esd we recognize a thriving

[4:18] economy needs a skilled workforce.

[4:21] I'm proud to share that through the on ramp initiate workforce

[4:25] development training will soon begin at temporary facilities in

[4:27] syracuse. This commitment to expanding our

[4:31] workforce will continue throughout the state at the

[4:34] initiatives three other centers located in the capital region

[4:39] finger lakes and mohawk valley. And provided through the office

[4:46] of strategic workforce development.

[4:48] central to esd mission is removing barriers for new york's

[4:51] small businesses which represent over 90% of the state's business

[4:59] community. And we want to thank governor

[5:00] hochul and the state legislature for their support.

[5:02] this year's budget effectively doubled funding for the

[5:06] new york's link program, to an unprecedented $1.1 billion.

[5:10] this program provides lower interest rate loans to micro and

[5:15] small businesses which is increasingly important during

[5:18] this time of rising costs nationally.

[5:21] we are continuing our commitment to new york's minority and women

[5:25] owned business enterprise community and addressing

[5:28] workforce disparities. Over the past year,we have

[5:32] maintained the nation's highest mwbe partnerships rate at more

[5:38] than 32% and streamlined the certification process

[5:40] significantly decreasing wait times for applicants.

[5:44] furthermore, in partnership with the legislature,we recently

[5:48] extended the mwbe program through 2028 and are launching a

[5:54] comprehensive policy study to provide recommendations on how

[5:57] to further strengthen and improve the program.

[6:01] I am proud of the strides we've made this year.

[6:03] we are building a more resilient, equitable and

[6:08] prosperous new york for all and we are doing it together.

[6:10] thank you for your continued support and I look forward to

[6:14] our ongoing participate partnership and I'm happy to

[6:17] take your questions. >> okay.

[6:19] thank you. You know, I would like to focus

[6:25] a little bit on workforce development.

[6:28] I know that we have appropriated a great deal of money over the

[6:33] last four budgets, probably close to a billion dollars in

[6:41] workforce workforce development. Sometimes I hear that it's very

[6:46] difficult to access the funding. I don't know exactly what the

[6:50] process is, but if you could tell me how much of that funding

[6:57] has actually gone out into training programs, how much is

[7:03] still available, and what the process is by which-- and I

[7:11] would say some not-for-profit organizations, who do some

[7:15] specialized stuff, especially with people who maybe have had

[7:21] or been incarcerated or had other issues that they have

[7:24] dealt with as we are looking desperately for people to fill

[7:27] all these jobs. So, can you give me a little

[7:32] information on that? >> absolutely.

[7:36] so the entire workforce development effort across the

[7:42] state is spread across a number of agencies.

[7:46] esd has stood up the office of strategic workforce development

[7:50] in the 22-23 budget. We were allocated $150 million

[7:55] to support that office and effort, really focused on

[7:58] providing support to train workers for high-skilled jobs:

[8:09] we have put forward a new strategy, sort of enhanced

[8:14] strategy to provide workers with wrap around services, so, as you

[8:19] talk about not for rost,-- not-for-profit, we are asking

[8:26] workforce providers to join in consortiums to have

[8:29] not-for-profits that may provide support like mentoring or child

[8:33] care or transportation in trying to remove barriers that are

[8:39] created for folks that want to access training and employment

[8:45] so we have provided $68 million in grants of that $150 museum--

[8:54] $150 million to p 7 workforce organizations and we are working

[8:59] with 500 business partners, so folks that are actually hiring

[9:02] these people that are being trained.

[9:05] and we are seeing success with folks getting trained in areas

[9:09] like construction and photonics and areas in the semiconductor

[9:16] sector, that are providing living wage jobs for individuals

[9:19] here in new york state. >> okay.

[9:23] as far as how much funding is still available to go out, do we

[9:30] have any idea what that number is?

[9:33] >> so in addition to the $68 million in training grants,

[9:37] there is another $30 million that went out for the on ramp

[9:45] program. >> there you go.

[9:48] for a red-green color blind guy, these are hard to know whether

[9:52] they're on. Excuse me.

[9:53] we have roughly 50 of the 150 remaining.

[9:57] there was on ramp utilized about 30 of the 150, the 68 hope

[10:02] talked about and I think there are a couple of other programs

[10:07] supported from that funding. >> has there been an evaluation

[10:17] you've done on the effectiveness of these programs and, you

[10:21] know,especially for training and maybe some other as nurses,

[10:27] teachers, anything like that? Because I know we are struggling

[10:31] in those areas, too. >> I know that some of the other

[10:37] agencies have been working on training programs like for

[10:41] nurses and teachers, et cetera. I would have to follow up and

[10:44] find out if they've done any evaluation in those areas.

[10:47] we have put out an annual report, first annual report last

[10:53] year on our programs that speak to some of the results of the

[10:59] office of strategic workforce development.

[11:11] and the excelsior job tax credit program.

[11:16] can you provide an update on the new semiconductor workforce

[11:21] training program and expand empire job retention program as

[11:26] far as this past year's budget? >> those are programs that we

[11:30] have been working on regulations for.

[11:32] we are going to post those up for comment and they should be,

[11:37] you know, available in the coming months.

[11:46] >> my favorite subject, centers of excellence and advanced

[11:55] technology. You know, my constant question

[12:00] is why we sort of keep them at the same level every year and

[12:06] it's, you know, hard to get them an increase when what we see is

[12:10] the return on investment in these programs is, if not the

[12:15] highest one of the highest that we have in any of our economic

[12:19] development programs, do you see anything in the future that

[12:22] would lead us to believe that we might be able to expand in some

[12:28] of these areas, provide some additional funding to see if the

[12:36] return on investment continues at the same or better rate?

[12:40] >> so, you know, our nystar division which oversees the

[12:48] (inaudible), has a broad range of innovation assets that

[12:53] support these cats and codes and enhances and lyncheses their I

[12:59] am leverages their impact so we are happy to have that

[13:03] discussion during the cycle. >> good morning.

[13:15] thank you. We have been joined by another

[13:18] colleague of ours, assemblymember dais.

[13:23] thank you for being here. But ceerly my colleague asked

[13:29] some of the questions but I want to switch to the tax credit

[13:35] program. And I want to talk a little bit

[13:39] about the small businesses that would be involved within this.

[13:46] and the first question I ask is can you tell me how many small

[13:51] businesses that are taking advantage of the tax credit

[13:54] program that you have offered? >> and I want to confirm that

[13:57] you are talking about the excelsior tax credit program?

[14:00] >> yes. >> so I would have to get you an

[14:03] exact number, but I know that roughly 50%, 40% of our

[14:07] businesses that take advantage of the program are small

[14:10] businesses. >> okay.

[14:12] and is there any emphasis placed on in-state versus out of state

[14:18] businesses? >> no emphasis.

[14:20] we are just looking for businesses that are looking to

[14:22] grow. >> beautiful.

[14:23] >> that's right. >> and I just wanted to

[14:25] reconfirm that because we have, as you had talked about chobani

[14:32] coming, we realize that nobody can do it alone, so our small

[14:35] businesses that have been 100, 50 years, are looking to see how

[14:40] they can support, as new folks come to town.

[14:43] but we certainly don't want to forget them.

[14:46] >> absolutely. That's right.

[14:48] >> is there a little bit that you could talk to about how

[14:52] empire state development ensures those businesses that have been

[14:56] in rooted within communities, how we strengthen them also?

[15:00] >> absolutely. As you know, empire state

[15:02] development has a regional office system.

[15:04] so our regional directors are in touch with business

[15:09] organizations; some of the businesses directly.

[15:12] and we are, you know, involved in providing, you know,

[15:18] information regarding access to capital, lower cost capital

[15:21] opportunities, opportunities for growth when we have new

[15:25] industries coming into the state and will provide small

[15:28] businesses tremendous opportunities.

[15:30] so we are always having those conversations with our small

[15:33] business community. >> that is able to provide that

[15:36] support. >> yes.

[15:39] >> could we just talk a little bit about the tech transfer

[15:43] program for small businesses? And primarily the question is,

[15:51] again, how is the success rate on that one?

[15:54] and what do we see with the sttr program?

[15:57] >> yes, so as you know, thanks to the governor and the

[16:02] legislature, we have this $6 million fund to provide

[16:08] matching funds for small businesses that get grants from

[16:12] the federal government. We have exhausted virtually all

[16:16] of that $6 million for 60 companies that have won awards

[16:21] in the sttr program. >> okay.

[16:27] and those counties are listed on the website?

[16:31] or how would I be able to brag about it?

[16:34] >> we can get you a copy of that.

[16:36] >> probably my colleagues would like to see it, too.

[16:37] >> sure. >> all right.

[16:40] how about new york rush? Another one that I do contact

[16:46] your office quite frequently on. And the concern that we have in

[16:53] the mohawk valley is workforce housing.

[16:55] and I understand that I will continue to ask you to take a

[17:02] look at the importance of workforce housing as we

[17:06] understand that many individuals need housing but as we are

[17:13] trying to attract individuals to the area, we need what is

[17:17] identified within workforce housing.

[17:18] I just wondered if there was any further conversation on how

[17:22] funding could be directed to those individuals that

[17:28] interested in working in small businesses or colleges or

[17:30] anywhere in that effect. >> absolutely.

[17:32] we foe that there is a housing crisis and then you couple that

[17:36] with, you know, significant growth and specific regions

[17:40] around the projects and it puts more pressure on the housing

[17:43] supply. So thanks to the go rush

[17:48] program, we have support for infrastructure that we are

[17:53] housing that would be created. We know that a lot of the sites

[17:57] around the state would require very extensive and expensive

[18:02] infrastructure to be able to think about providing advancing

[18:07] housing projects forward. And approximately $150 million

[18:15] of the of rush fund is committed for projects that have been put

[18:21] forward that are virtually shovel ready, ready to go and we

[18:25] look forward to continuing to talk to communities around the

[18:30] state, including yours, about advancing workforce housing and

[18:34] specific communities. >> and I would sincerely

[18:37] appreciate that because, again, emphasizing those individuals

[18:42] that we need within our community but they need a place

[18:46] to live that is something that is affordable as well as

[18:51] appropriate for them and their families.

[18:56] how about, as my colleague did ask many of the questions, can

[19:01] we talk a little about of the-- an update on the link deposit

[19:07] program that you have? >> yes.

[19:09] >> and what is the average loan that you are supporting for

[19:13] individuals? >> so, as you know, the link

[19:18] deposit program now known as link has been available for many

[19:22] years. The capacity of the program was

[19:26] about $550 million. It was doubled in last year's

[19:31] budget, a billion dollars. And I know that there is about

[19:37] 132 million-dollar pipeline of loans now in the system against

[19:41] about the cap of $550 million. And so, you know, we see

[19:47] tremendous uptake in this product because it does provide

[19:50] a lower interest rate for small businesses, with respect to the

[19:53] average loan size I have to get back to you on that.

[19:57] >> okay. Downtown revitalization.

[20:01] >> yes. >> as we know, the collaboration

[20:03] that occurs as well as with new york forward.

[20:09] is there any information that is published from your agency that

[20:15] identifies the effectiveness of this program and kind of

[20:19] highlights the positives? >> we have reports related to

[20:25] downtown revitalization initiative projects and we can

[20:29] provide those to you. >> and success rates that you

[20:33] are seeing? Bragging in the last year that

[20:36] you could talk about with... >> we see tremendous success in

[20:41] the program. I think, you know, the program

[20:44] requires communities to come together and do planning, so

[20:47] just that process in itself provides a community with

[20:52] tremendous assets to kind of build upon as they execute their

[20:58] projects. >> and the final one is the

[21:02] supportive housing. Could you just talk a little bit

[21:04] about how you are working with your fellow commissioners in

[21:07] regards to ensuring that individuals that need housing as

[21:10] well as support? >> absolutely.

[21:13] so as you know, housing is in the purview of the dhcr but I

[21:19] work very closely with the commissioner in that agency to

[21:22] advance supportive housing; primarily in the space where

[21:27] there are state-owned facilities, kind of look at what

[21:30] the opportunities are, what the needs of the community are and,

[21:34] you know, advance projects where we believe supportive housing is

[21:38] extremely necessary. >> thank you.

[21:42] at this point, I'm good. >> member bendett.

[21:53] questions? >> thank you.

[21:54] I'm a small business owner and have been for 30 years.

[21:56] in fact I own three different businesses.

[21:59] when you talk about chairman stirpe was talking about

[22:03] workforce development, what are we doing for workforce

[22:05] development to get people interested in starting their own

[22:08] business and helping them succeed?

[22:10] when I first started, I didn't even know what a z report was.

[22:13] I didn't have that information. What are we doing as a state to

[22:17] encourage people to open up brick and mortar stores and

[22:21] people that basically employ all the people other than the state

[22:25] workforce? >> yes, so thank you for that

[22:29] question. You know, we have many small

[22:31] business resources available for folks that are aspiring

[22:36] entrepreneurs. You can start with our

[22:39] entrepreneurial assistance centers.

[22:41] those are centers that give folks the ability to put

[22:45] together business plan, road map for opening a business.

[22:49] will be able to point them toward access to capital, you

[22:53] know, whether those are community banks or

[22:57] not-for-profits, that are provide small business loans.

[23:00] >> and how do people find those, that information?

[23:03] that's one of the challenges that I have found as a small

[23:06] business owner is finding these types of things.

[23:08] and I know you can do a google search but are we doing

[23:12] outreach? Like yesterday we had career jam

[23:15] at hudson valley. Are we doing outreach for that?

[23:18] >> we are doing tremendous outreach.

[23:20] we are using the organizations that exist within communities,

[23:23] you know, chambers of commerce organizations, not-for-profits

[23:27] that focus on advancing small businesses.

[23:31] we work through the legislature and sometimes we send out, you

[23:35] know, literature that speaks to events that we are having that

[23:39] promote our products and services.

[23:41] >> okay. And as a small business owner, I

[23:43] can just say that I think we need as a state to do a better

[23:46] job of getting that out there. I think people have a really

[23:49] challenging time finding this information.

[23:51] I had a little bit of a challenging time finding it, and

[23:55] I just put on my facebook page a link to the main street grant

[24:01] for small businesses. But it wasn't an easy thing for

[24:05] me to find. It really was a little bit

[24:09] challenging. On your new york forward grants,

[24:12] as chairwoman buttenschon said, I think those are very good.

[24:15] I've had three communities in my district receive them and they

[24:20] have been, you know, very effective.

[24:21] but I also think that they're not as much economic development

[24:25] as they are monies to improve the quality of life of the

[24:30] people in those villages. I don't know that they're

[24:33] definitely to help small businesses.

[24:38] what do you think about minimum wage and about-- I don't want to

[24:44] use the word child, but I want to use the word young worker in

[24:49] the workforce. Many of us in the small business

[24:51] community are consistently asked by friends and family and

[24:55] different community members to hire their kids to give them an

[24:59] entreé into the workforce, to show them how to work and to

[25:03] teach them an ethic, et cetera, et cetera.

[25:06] unfortunately with the rise of the minimum wage, it's been more

[25:10] challenging for people like me and my brothers and sisters, who

[25:13] are in small business to help people get into that.

[25:17] do you think that maybe we should have a conversation about

[25:21] something like that so that small business owners have the

[25:25] ability to help their communities, help their kids get

[25:28] better work ethic but not have to carry the burden of giving a

[25:31] kid a living wage? >> there may be opportunities to

[25:37] discuss work training programs and would be happy to talk to

[25:39] you about that. >> yeah, also, many of our small

[25:44] businesses are the people that collect our sales tax.

[25:47] that's a big part of our life, you know, we are retailers, we

[25:51] collect the sales tax. We put it into the bank and we

[25:54] pay it to the state. Do you think that it might be

[25:58] effective in the future to consider incentivizing people to

[26:02] go into small business and to be partners with the state in

[26:06] collecting that sales tax? >> I think that growing our

[26:09] small business community is critical and working to create

[26:13] more small businesses in communities is essential.

[26:17] >> we are on the same page. I agree with you 100% and I'm

[26:21] willing to discuss any of these issues with anybody in the small

[26:23] business community. And one of my, that I feel like

[26:28] we have a shortcoming on is that we don't do a good enough job of

[26:32] communicating with our small businesses.

[26:33] I know you said that you have terrific outreach, but I really

[26:37] do, as a person in the community, who attends chamber

[26:42] events, who is close with the chamber, who knows people in

[26:45] your organization and others, people have not really been

[26:53] forthcoming with trying to help me.

[26:55] it seems like it is more of a reactive approach than a

[26:58] proactive approach. Would you agree with that?

[27:01] >> I look forward to working with you and the community and

[27:03] the organizations there to really push out the information

[27:06] and resources that we have to deliver to small businesses.

[27:09] >> yeah, I think we really need to.

[27:11] thank you very much. >> thank you.

[27:15] >> member dais. >> good morning, commissioner.

[27:21] >> good morning. A couple quick questions.

[27:23] first on workforce development, last week on september 30 I held

[27:25] a rally for veterans around veteran poverty.

[27:30] about 35% of our veterans are struggling, 65% are doing well.

[27:33] we have a lot of veteran-owned businesses in new york state

[27:37] that we need to support. But my question on workforce

[27:40] development is what are we doing as a state towards workforce

[27:43] development for veterans; for example, I was with gary from

[27:47] the building trades helmets to hard hats.

[27:50] what is your organization doing in reference to veterans?

[27:52] >> so we work with workforce development providers that do

[27:57] significant outreach to veterans.

[27:59] and we look at fields such as construction in the

[28:04] semiconductor area as well as advanced manufacturing.

[28:06] so we definitely work with organizations that are focused

[28:11] on helping veterans. >> and veteran businesses?

[28:14] >> we have resources to support businesses like access to

[28:17] capital and other technical assistance.

[28:19] and we definitely outreach to them as well.

[28:22] >> do we have a good centralized-- I have been

[28:25] working with the legislature for centralized information for

[28:27] veterans. Do you think we can streamline

[28:29] funding for these veteran-owned businesses better and if so, how

[28:33] would you go about that? >> I would like to talk to you

[28:36] more about that. We have streamlined a lot of our

[28:39] processes to provide access to our resources businesses

[28:43] including veterans. >> okay.

[28:46] a quick flip. In reference to economic

[28:48] development on our small and medium-sized businesses which

[28:51] you focused on. Tariffs are taking a small chunk

[28:54] out of our small businesses. Some of our large corporations

[28:58] they love the tax breaks they're receiving but our small and

[29:02] medium-sized businesses are getting crunched.

[29:04] you mentioned chobani, one of our largest use of dairy

[29:08] farmers. I know it's not the agricultural

[29:10] committee but our agricultural industry is getting really

[29:15] squeezed. The parts that they need to use

[29:17] for their tractors, even john deere tractors, the parts come

[29:21] from other countries. What can we do to support our

[29:26] agricultural as a city, assemblymember, how can I

[29:30] support the north country and other businesses that are key to

[29:33] new york state's economy as they're or dealing with the

[29:35] tariff situation? >> so you know, this summer, the

[29:41] governor directed esd to do a couple of things around tariffs.

[29:47] particularly esd put together a tariff guide to support

[29:49] businesses that were managing tariffs, providing information

[29:52] on how to mitigate the impact, some export guide information,

[29:58] et cetera. And so we put that out there to

[30:00] support small businesses, how to manage tariffs better.

[30:04] we have also put together an online survey to collect

[30:09] information with respect to how tariffs are impacting businesses

[30:15] across the state. And we expect-- we are getting

[30:17] some of that information and synthesizing it to better

[30:25] understand how to help businesses that are or dealing

[30:27] with tariffs. >> I think my time is up.

[30:33] >> member lemondes. >> thank you, chair stirpe.

[30:37] thank you for being here. I just want to read a brief

[30:40] statement and I will ask several questions.

[30:42] the premise is energy, as all businesses, we know all

[30:45] businesses need energy. Goldman sachs research institute

[30:49] estimates 160% growth in data center power demand by 2030.

[30:54] only five years from now with a potentially representing 19% of

[30:58] that demand by as early as 2028. Other states are facing similar

[31:04] challenges with virginia already experiencing energy drains from

[31:08] a.I. Data centers. Do you support bringing nuclear

[31:12] plants back online or exploring other innovative solutions like

[31:18] small modular nuclear energy? >> so thank you for that

[31:22] question. We joined nyserda last week at a

[31:27] nuclear summit that focused on advancing nuclear to new york.

[31:32] the governor is taking the lead on this discussion and knows

[31:36] that we need a large mix of energy sources to power the

[31:42] industries of the future. And so the governor has

[31:46] definitely, you know, voiced that moving advanced nuclear

[31:51] forward is something that new york state is look at.

[31:53] >> that's fantastic. That's a very big departure from

[31:59] her previous position over the last several years.

[32:01] we all know how important energy is.

[32:03] and as you know, we pay for businesses, 50% higher than the

[32:10] national average for commercial energy in this state and 62%

[32:14] higher for residential energy. So all of our-- everybody in

[32:18] here, every rate payer in this room is watching their energy.

[32:25] no matter what you put in to create efficiency in your own

[32:28] use, personal use or business use, your bill is skyrocketing

[32:32] upward in this state and having a devastating impact on our

[32:36] businesses, especially heavy, commercial energy intensive

[32:39] businesses and I represent a steel plant in my district.

[32:42] and there is no way, ever, that they're going to use solar

[32:48] energy to do what they do. And this is more of a statement,

[32:53] but my question at the end of this is: I sure hope that there

[33:01] is recognition that we are paying too much.

[33:04] and the notion that rate payers are going to pay for solar and

[33:09] wind and all of this other stuff and the school bus initiative.

[33:14] that doesn't work in my district.

[33:16] you can't use electric school buses in winter conditions in

[33:21] hilly terrain. They just don't work.

[33:23] so is there recognition that this comprehensive

[33:27] new york state energy policy has to be reviewed and has to be

[33:33] changed? >> so new york state is going

[33:35] through a planning exercise with respect to energy.

[33:42] nyserda is taking the lead on creating a new york state energy

[33:46] plan. We know that we need a range of

[33:50] energy sources to power industries of the future and

[33:57] provide more capacity that will be needed.

[34:03] >> that's fantastic. I hope that we recognize our

[34:07] need for alternative energy. Thank you.

[34:10] thank you, chair. >> let me say we have been

[34:14] joined by a couple more members. Daniel norber and judy griffin.

[34:25] I want to take this opportunity, member tapia got some

[34:31] miscommunication. She thought this was down at 50

[34:33] broadway and she is sitting there waiting to ask questions.

[34:36] I promised I would ask her questions for her.

[34:39] so I will do these as quickly as possible.

[34:45] good morning, commissioner knight.

[34:47] my first question concerns the state's response to the federal

[34:50] government's attack on our state we have seen the trump

[34:54] administration pause or cancel funding for several projects

[34:57] across new york state, including both large scale projects like

[35:00] the gateway project, but also smaller projects as well.

[35:05] how is esd responding to this? And is the state using funding

[35:09] to back all these projects? >> thank you for that question.

[35:14] you know, there is certainly a certain amount of uncertainty

[35:20] with respect to much federal nund funding and esd is in touch

[35:27] with our state and federal partners to understand better,

[35:33] you know, what funding cuts are happening.

[35:36] and we haven't had to manage through anything very specific

[35:42] to our esd portfolio, but continue to monitor the

[35:46] situation. >> okay.

[35:48] thank you. Last year's hearing there was a

[35:51] lot of discussion around mwbe. Accord together 2024 disparity

[35:57] report, 15% of available firms were hispanic-owned yet their

[36:03] utilization rate was only about 1.8%.

[36:06] has empire state development taken any specific action since

[36:08] then to close that gap? And can you share what

[36:11] measurable progress has been made to increase contracting

[36:15] opportunities for hispanic-owned businesses since the report came

[36:20] out? >> so we have been working very

[36:25] diligently in our mwbe program to increase utilization of

[36:34] businesses across the spectrum. And we have been involved in

[36:40] working with our agencies and authorities to give them more

[36:44] guidance around the availability of has to firms.

[36:49] we provide our online directory. We have been having webinars to

[36:56] get agencies and authorities to understand accessibility of

[36:59] these mwbes and so with respect to benchmarks, I would have to

[37:06] come back to assemblywoman about that, but we certainly have been

[37:10] making strides to increase utilization in the area.

[37:18] >> okay. I guess this is a comment more

[37:20] than a question. To express my support for the

[37:25] downtown revitalization initiative application for

[37:28] fordham road, while the bronx has received a dri award in

[37:33] another neighborhood, fordham road remains one of our most

[37:37] important commercial corridors and the dri would help

[37:41] strengthen those connections and support our community.

[37:47] >> noted. >> all right.

[37:51] >> we are joined by senator sanders.

[37:55] >> hi there. Mr. Norber.

[38:00] >> thank you. Thank you very much for being

[38:01] here today. As we all know, our world,

[38:06] new york state the u.s. In general, we are going towards an

[38:09] a.I. Initiatives. A lot of businesses are going to

[38:12] be transferring over to phs ises done by a.I. Agented agents,

[38:17] deliveries or other industries. Are there any types of programs

[38:20] that you guys are going to be looking at or starting in order

[38:24] to adapt to this new change? Maybe the programs that can

[38:28] actually benefit businesses that want to start use using a.I.

[38:34] because is something that is going to be happening, no

[38:36] question about it. Are there things that you guys

[38:37] are looking at? >> we know that a.I. Action in

[38:41] businesses is happening rapidly and the response to that is this

[38:48] last past budget, harmony a.I. Was passed and a common of that

[38:53] is to provide training to small businesses with a.I. Tools.

[38:58] we are working with our eac, entrepreneurial assistance

[39:03] centers to roll that program out, and we should be-- I think

[39:07] we are in the process of hiring a vendor to deliver it and

[39:10] should be delivering it in the coming months.

[39:14] there will be training for businesses across

[39:16] new york state. >> yes.

[39:16] >> to adapt to this? >> to provide tools for aicht,

[39:19] that's right. >> so there is an effort to push

[39:22] businesses to that? I'm just asking, what is the

[39:25] opinion that... >> we know that it is coming so

[39:28] we want businesses to be prepared.

[39:32] >> I have a question regarding, has there been any progress of

[39:38] achieving the goal of 100% broadband connectivity in the

[39:41] rural areas in new york state? >> yes.

[39:44] so we have just-- the comment period ended just a couple of

[39:51] weeks ago, and we were able to submit our application to the

[39:57] federal authorities and to ntia. And we are waiting to, you know,

[40:02] get awarded this funding so that we can roll the program out.

[40:06] >> have there been delays on that?

[40:08] >> there were a few delays on that, absolutely.

[40:11] >> okay. But you see it happening this

[40:14] year? >> we do.

[40:15] we think it's going to happen in the coming weeks, months.

[40:19] >> okay. >> in terms of being awarded the

[40:21] funding. >> thank you very much.

[40:25] >> member griffin, do you have a question?

[40:29] >> thank you, chair. I have a question about the

[40:40] policy study on the mwbe program.

[40:44] I just wondered, how are you con-- are business owners being

[40:50] contacted to find out about the program and services or like who

[40:56] will-- how will the study be done?

[40:59] who are you asking for information from?

[41:02] like their experience with this program?

[41:04] >> yeah, no, thank you for that question.

[41:07] yeah, as you know, the disparity study was completed last year

[41:12] and working with the governor and the legislature, this policy

[41:15] study was agreed to. And effectively what the policy

[41:18] study is going to do is provide context for the disparity study.

[41:22] I think provide a brief legal analysis, understand utilization

[41:27] patterns better and make recommendations to strengthen

[41:30] and improve the program. We will be issuing an rfp at the

[41:35] end of this year to hire a firm to do the policy study and focus

[41:44] on those items that I just mentioned.

[41:46] >> okay. Thank you.

[41:47] and I know many minority and women owned businesses in my

[41:54] district, 8021 on long island, a lot of them come to me and they

[41:57] just don't know how to get started.

[41:59] they don't know, like where they can avail themselves of services

[42:02] , they don't really know how to get certified.

[42:04] and I wondered is there a contact that I can direct them

[42:11] to, an actual person to maybe help transition them into this

[42:15] system? Because I feel like there is a

[42:17] lot of minority women-owned businesses that are not part of

[42:22] the program and don't know how to be part of the program.

[42:24] >> so we would be happy to work with your office to provide a

[42:28] contact person. We have been having forums

[42:34] around the state to provide exactly the information that you

[42:38] are talking about. We had one about a week and a

[42:42] half ago in southeast queens abutting long island, to provide

[42:48] that information to small businesses that are interested

[42:52] in the mwbe program as well as certified mwbes to help them

[42:58] have greater access opportunities throughout state.

[43:00] >> okay, great. We'll touch base off line.

[43:03] thank you so much. >> senator sanders.

[43:09] do you have a question? >> yes, sir.

[43:11] first I would like to thank the chairs for allowing me to sit in

[43:14] with you. I appreciate the courtesy.

[43:17] I want to-- good morning, good morning.

[43:20] good to see you again. I want to speak of the studies

[43:24] that you are doing. I applaud you for doing the

[43:27] policy study. It's good to understand the

[43:30] bigger picture of things. And I suggest two things to you.

[43:33] the first, of course, is that we really drill down on the

[43:38] disparity within the disparity ies as has been alluded

[43:42] to earlier by one of my assemblymember colleagues.

[43:46] the disparity within the disparity, the decision and

[43:52] recent supreme court decision allow extra help or extra work

[43:57] for those people in the disparity within the disparity.

[44:01] the second is consider, in new york city they give a grade

[44:08] to how agencies are doing, on how they're doing for complying

[44:15] with mwbe. Consider that we need to do that

[44:17] up here in albany; that we need to grade the agencies and the

[44:25] development ideas, whatever else is out there, we need to grade

[44:29] everyone on how we are complying with the governor's edict.

[44:35] consider those things. Thank you very much to the

[44:37] chairs. >> you are welcome.

[44:41] I have a few more questions. Has your deem determined or been

[44:49] determining which economic incentive programs may shut down

[44:52] due to the federal funding cuts? >> we continue to monitor the

[44:58] situation. As I said, for example, the

[45:01] manufacturing extension program, that funding expires at the end

[45:06] of the year and we are looking to see if, you know, funding

[45:10] gets extended past that time. >> okay.

[45:15] of all the proposed semiconductor projects in

[45:20] new york state, how many are qualifying for the green chips

[45:25] tax incentive and how many are not?

[45:27] >> so, as you know, the green chips incentive has a threshold

[45:34] and two of our projects have qualified.

[45:38] global foundries and micron. What programs do they offer to

[45:55] maintain ecofriendly practices? >> so we offer incentives that

[46:03] really encourage ecofriendly practices.

[46:07] >> I guess two things, assemblymember.

[46:11] one is we have a division that really supports small businesses

[46:15] in terms of compliance with environmental regulations and

[46:19] rules. It's the environmental

[46:23] business-- we have a team of folks who work with businesses

[46:26] all the time to help with compliance.

[46:28] and then, you know, per state law, we are also required to

[46:34] ensure some degree of alignment with environmental goals for the

[46:40] state when we award state funding.

[46:43] usually it's done through, verified the seqr process but

[46:47] otherwise we engage in assessment to make sure that

[46:50] folks are thinking about those goals and adhering to the

[46:54] broader requirements regarding utilization.

[46:57] >> okay. How does the restore

[47:00] new york city program ensure projects are community-driven

[47:04] and not subsidies for private developers that could afford

[47:07] them otherwise, avoiding gentrification and displacement?

[47:12] >> with respect to the restore program, that funding is

[47:17] generally provided through the municipality to support the

[47:21] project, and so municipalities really do the screen around

[47:27] assessing that information. >> we understand the many

[47:39] technological research and development projects around a.I.

[47:41] are occurring upstate new york. How is your team ensuring the

[47:44] benefits and jobs from these developments also come downstate

[47:47] to communities like the bronx? >> there are a number of

[47:53] projects that are going on in new york city with respect to

[47:59] a.I., and you know, we work with city government to make sure

[48:05] that there are opportunities for workforce kept development, for

[48:11] training so that underserved communities are getting access

[48:14] to these programs. >> thank you.

[48:22] member buttenschon. >> thank you.

[48:24] every comment and question that my colleagues brought up are

[48:27] very important to me, whether we are talking about agriculture,

[48:31] small business, energy costs, minority women-owned businesses

[48:37] and clearly the emphasis that has been placed on our small

[48:41] business and the needs they have , I have hosted roundtables

[48:44] for our small business and I have heard from my chambers.

[48:51] and the echoing thought is, again, they're not sure how to

[48:56] navigate. And I appreciate you sending

[48:58] someone to my last roundtable because the face-to-face

[49:03] interaction is very helpful because it does provide that

[49:07] insight. So I ask you to challenge your

[49:10] team on how that can happen at a higher level to ensure that each

[49:15] region of the state in new york is represented.

[49:18] you also have the entrepreneurship assistance

[49:23] centers. Well, where I am, there isn't

[49:26] one close by, so it is a great asset.

[49:31] how can we bring it closer to many of our small businesses or

[49:35] what are you doing to bring them closer?

[49:37] >> I think we are working with organizations within communities

[49:42] that support entrepreneurship to try to bring our services closer

[49:45] to the businesses where they exist.

[49:48] and we can continue to work with , you know, your teams, your

[49:54] organizations and communities to bring them closer and even more

[50:00] frequently to the small businesses.

[50:01] >> so do you have the funds to expand this program so that it

[50:07] is within the regions and obviously the mohawk valley is

[50:13] very near and dear to me, but I'm sure my colleagues would say

[50:16] the same. >> so last year, you know, for

[50:19] many years, we had 24 entrepreneurial centers.

[50:23] we expanded to 26. It was done through a

[50:27] competitive process. If we were to expand further,

[50:29] that would have to be during a part of the budget negotiations.

[50:33] >> and how much of that budget is utilized for this program?

[50:37] >> they received 173,000 each. >> each one does?

[50:46] >> yes. And can you talk a little bit

[50:50] about the relationship between the grants for the incubators as

[50:55] well as the innovative hotspots? Is there a crossover or just

[51:00] talk a little bit about that. >> those are competitively

[51:04] awarded. >> the incubators are called

[51:09] new york state certified incubators so it's a process by

[51:11] which the state does a competitive sort of solicitation

[51:16] and incubators meet certain standards are provided that

[51:19] certification and level of funding.

[51:22] new york state incubators is the next level up.

[51:25] so in addition to providing this baseline service, they're

[51:28] providing an enhanced support, maybe something over and above

[51:32] what the baseline services are. And they, in turn, get that

[51:37] hotspot designation and they get a higher level of funding.

[51:41] >> so... >> they're aligned.

[51:43] very much aligned. >> how about the grant

[51:46] distribution because the area that I come from, the colleges

[51:52] are highly involved. >> yes, almost all instances,

[51:55] there is at least strong partnership with the colleges

[51:58] and universities. The hotspots, I think, receive

[52:02] $500,000 a year, and the incubators are $250,000.

[52:05] would I have to verify that but I think that's right.

[52:09] >> 500 each? >> 500 each.

[52:15] yeah. >> thank you.

[52:21] >> mr. Lemondes. >> thank you.

[52:23] thank you, chair. Thank you, colleagues and thank

[52:26] you again for being here. One of my colleagues had brought

[52:29] up helping agriculture. I want to give you a simple

[52:37] scenario, and this is of a farm that came to me for help.

[52:42] the minimum wage in pennsylvania is approximately half of what it

[52:46] is in new york. So a slaughter run of livestock

[52:50] for this particular farm, done equi distance in pennsylvania

[52:57] versus a slaughterhouse in new york, the slaughterhouse in

[53:00] new york costs twice as much. Is there any thought or

[53:04] recognition that perhaps our minimum wage and our just cost

[53:09] structure on business in general is too high?

[53:13] >> so, you know, I work closely with the commissioner of ag and

[53:18] markets on farm issues. So I really want to have, you

[53:21] know, a further discussion with him about this.

[53:24] >> I would love to be involved in that because this is what

[53:29] farms, you know, as you know, agriculture is our state's

[53:32] number one industry. It's my assembly district's

[53:36] number one industry. If were you to walk around any

[53:39] street in any one of our cities, what is our state's number one

[53:43] industry, they wouldn't come up with that answer.

[53:46] you know, that's unfortunate. But nonetheless, as our

[53:50] businesses are being strangled by costs, and overregulation,

[53:55] what are we doing simply to just remove some of those burdens so

[54:00] businesses won't feel like they have to leave?

[54:06] >> as you know, esd is not a regulatory agency, and we don't

[54:11] look to talk to our colleagues about, you know, structure and--

[54:16] >> right. It was just general in nature.

[54:18] I mean this is a team sport. And if it's not looked at that

[54:24] way, then we all fail is my point.

[54:27] so thank you. Thank you, chair.

[54:30] >> I have one more question. We talked, or you mentioned how

[54:37] the process to become eligible for mwbe has been streamlined

[54:43] and is much shorter because I know that my office got many

[54:50] phone calls for numbers of years about how painful and how long

[54:54] it took to get certified mwbe. So what actually happened?

[54:59] I mean how did it get streamlined?

[55:06] what are you doing that-- what are you not doing that you used

[55:10] to do before? >> thank you for that question.

[55:12] esd worked very hard to streamline the process, thanks

[55:15] to the government and legislature providing

[55:19] $11 million to do a couple of things to help us increase

[55:24] staffing, to get rid of the backlog because you had a

[55:28] backlog of several thousand sand applications.

[55:30] we also had I backlog of appeals that needed to be gone through.

[55:35] so we did staff up temporarily to get through the backlog.

[55:42] we engineered our process. We didn't eliminate any of the

[55:48] review required by 15a, but just streamlined and had greater

[55:55] resources. You know, before we did that,

[55:57] the average cycle time for application review and approval

[56:01] was several hundred days. Now we quote 90 to 120 days, but

[56:08] our average is about 65 days. And I think one of the big

[56:15] frustrations for a lot of companies was not when they

[56:18] initially became an mwbe but getting recertified, it seemed

[56:24] like, you know, they were going into this endless cycle.

[56:31] I'm assuming that's easier now than it used to be?

[56:33] >> it is the same process, but we have, like I said, have been

[56:38] able to reduce the cycle time. I would also like to note, with

[56:42] the current leadership of the mwbe program, we've tried to

[56:47] create much more transparency into the process and so

[56:51] companies better understand what they need to put forth with

[56:56] respect to recertification. >> okay.

[57:00] >> thank you very much. Are we okay.

[57:04] everybody is set. Thank you.

[57:06] >> one more. My question has to do with

[57:10] outreach regarding the proposed propelled transmission line

[57:14] project. In my area nassau county, we

[57:17] have northern boulevard which is the home of house of businesses,

[57:20] small businesses. I mean some businesses might be

[57:23] affected, some might not. Is there some type of outreach

[57:26] regarding how we can help these tiny stores get through the

[57:32] projects because this is not just happening in nassau county.

[57:33] it's happening all over the state in one form or another.

[57:37] so is there some type of way of handling this issue?

[57:40] >> so, you know, I am familiar with the pipeline projects.

[57:47] esd is not involved in these projects but I can certainly,

[57:50] you know, check in with my colleagues at the other agencies

[57:55] to see what kind of outreach is happening with the small

[58:00] businesses. >> thank you.

[58:01] that's it. >> thank you very much.

[58:02] >> thank you very much. >> our next panel... Randy van

[58:18] waggoner and dr. Christopher spence.

[59:11] >> thank you for being here, as randall van wagoner from mohawk

[59:20] valley community college in utica new york and you are both

[59:23] doctors, dr. Christopher spence from the utica school

[59:26] district that has recently added a career and tech program and

[59:31] the bridge that the two of you will continue to transpire is

[59:36] amazing and I appreciate that. I believe we will start with

[59:44] president van wagoner. >> good morning, chairwoman

[59:49] buttenschon, chairman stirpe and members of the committee.

[59:52] I'm in my 19th year as president of mohawk valley

[59:55] community college located in utica and rome new york.

[59:58] pleasure to share testimony in workforce development grounded

[1:00:01] in our experiences. Community colleges are power

[1:00:04] engines of workforce development across new york in partnership

[1:00:08] with empire state development and various state agencies, we

[1:00:10] deliver solutions closely aligned with local employer

[1:00:13] needs and today's workforce landscape is shaped by several

[1:00:17] factors that place growing pressure on our workforce

[1:00:21] systems and as a.I. Technologies accelerate, I encourage state to

[1:00:25] strongly consider supporting community colleges to help

[1:00:28] employers develop strategies to leverage a.I. Effectively and

[1:00:32] retain workers accordingly. Let me share ow we have

[1:00:38] leveraged several workforce development initiatives.

[1:00:40] since 2017, mvcc has led advanced manufacturing and other

[1:00:45] industries. Nearly mvcc has supported more

[1:00:50] than 2700 apprenticeship experiences and nearly 2,000

[1:00:54] registered apprentices across suny colleges in coordination

[1:00:57] with new york state department of labor.

[1:01:00] , alongside suny schenectady, we administer $23 million in

[1:01:05] apprenticeship related funding. Mvcc created the free fast track

[1:01:09] training model to better serve adult learners after conducting

[1:01:12] community focus groups. And offers flee short-term

[1:01:18] skill-based training that lead directly to quality jobs and

[1:01:21] career pathways. Since january of 2023, almost

[1:01:23] 3,000 students have enrolled for the 70% completion rate.

[1:01:27] and pre-fast track is amplified by outreach, 17 braided funding

[1:01:33] streams, many of which are from the state and strategic mix of

[1:01:37] credit and non-credit offerings that extend our community reach.

[1:01:41] mvcc was one of four institution as warded the designation for

[1:01:44] the win network for regional advanced manufacturing

[1:01:46] partnership, the on ramp effort, in collaboration with local

[1:01:50] partners we are conducting stakeholder engagement and labor

[1:01:54] market analysis during phase 1 to inform a phase 2 proposal

[1:01:58] which includes up $20 some will in operating and $20 million

[1:02:03] some capital investment over the nement three years.

[1:02:05] the on ramp center will expand the free fast track model in our

[1:02:09] region to support major employers like the new chobani

[1:02:13] facility in roam. The mohawk valley regional

[1:02:17] economic development council plays a key role, three notable

[1:02:21] examples include the recent mv power efforts where they

[1:02:26] received 2.3 million of the 10 million grant to expand free

[1:02:28] fast track training and to herkimer fulton montgomery and

[1:02:34] oswego county and other suny institutions in the region.

[1:02:37] the advanced institute for manufacturing or aim as it is

[1:02:41] known at mvcc where we are the only community college in the

[1:02:45] state designated as a regional manufacturing extension

[1:02:50] partnership site. Aim supports small and medium

[1:02:53] sized manufacturers across six counties with consulting

[1:02:55] training and technology services and has helped create or retain

[1:02:59] more than 2900 jobs and contributed over $245 million in

[1:03:05] economic impact. Since 2014, mvcc has center the

[1:03:10] hotspot grant to fund operations at the incubator, located next

[1:03:14] to aim, the think u baiter offers meant oreship training to

[1:03:19] entrepreneurs and helps launch nearly 20 ventures annually.

[1:03:23] it also houses the mohawk valley small business development

[1:03:26] center as our region is the only one to co-locate both entities

[1:03:31] maximizing regional entrepreneurial support I urge

[1:03:42] you to continue supporting and investing in these proven

[1:03:45] efforts. Today is a sample of how

[1:03:46] community colleges can maximize state resources and why they

[1:03:50] should be seen as the most significant leaver to deploy

[1:03:53] statewide workforce strategies. We are nimble, employer

[1:03:56] connected and mission aligned to support economic mobility and

[1:04:00] regional growth throughout new york.

[1:04:02] with your continued support and strategic investments I've

[1:04:05] mentioned today, community colleges can serve as the

[1:04:07] foundation for new york's next generation of workforce

[1:04:10] innovation. Thank you for your support and

[1:04:15] type. >> thank you, superintendent

[1:04:21] spence, please. And who do have you with you

[1:04:25] today? >> good morning all

[1:04:35] distinguished members of the committee, I'm dr. Christopher

[1:04:38] spence, superintendent of schools for the utica city

[1:04:39] school district. I'm joined here today by our

[1:04:43] chief operations officer as well as our director of cte who have

[1:04:46] been instrumental in this work. And so we are here today to talk

[1:04:48] about our new cte wing that we have are happy to have brought

[1:04:56] into fruition and designed to exspanned educational attainment

[1:05:01] as well as occupational attainment, particularly

[1:05:04] postsecondary opportunities within our region.

[1:05:06] based on a work that you all have done to provide grants and

[1:05:09] funding streams for multiple partners supporting local

[1:05:13] businesses, we are now developing the human capital

[1:05:16] which will help us provide the labor force for those businesses

[1:05:19] immediately within our area. It's been an amazing endeavor

[1:05:26] because it has been receiving sounding community support from

[1:05:28] our local businesses that the work with us to help develop the

[1:05:31] pathways and the content, knowledge and skills necessary

[1:05:34] for these post secondary opportunities to come to

[1:05:38] fruition. In other words, what skills,

[1:05:40] habits of mine and content knowledge to students need

[1:05:44] postsecondary in order to be immediately employable?

[1:05:47] as we are expanding small businesses within the area we

[1:05:51] can say definitively that we have a workforce that is ready

[1:05:55] to engage upon graduation from high school or take those skills

[1:05:59] and go and pursue tertiary education in business and

[1:06:03] whatever they would like. I would like to use some of this

[1:06:06] time here to talk about intricacies of the pathways and

[1:06:13] how we are developing our young people to ensure immediate

[1:06:16] success postsecondary so I'm going to allow michelle to talk

[1:06:19] about our pathways. And just so we don't miss it,

[1:06:23] some of the things that you are asking what pathways we are

[1:06:25] talking about, we have our health professions, construction

[1:06:30] technologies, advanced manufacturing, robotics,

[1:06:34] automation, fiber opennics, electricity and so many other

[1:06:37] high demand fields where we know there is a scarcity in the labor

[1:06:43] force, fiber optic. >> thank you very much for

[1:06:45] having us. >> we have a systematic k-12

[1:06:48] approach that we have implemented in the utica city

[1:06:50] district. We are starting in the

[1:06:53] elementary schools with exes pose your-- exposure to business

[1:06:56] and industry, their local community and different

[1:06:59] occupations. We take a deeper dive in middle

[1:07:02] school. As the students move into high

[1:07:03] school, the cte wing is beautiful.

[1:07:05] it's state-of-the-art. We are very fortunate when we

[1:07:08] were planning, we are offering electricity and fiber optics,

[1:07:14] cybersecurity, future educators, construction tech, ev auto,

[1:07:18] advanced manufacturing, robotics, health professions

[1:07:22] media productions entrepreneurial zone, computer

[1:07:25] applications, business, finance and marketing and business

[1:07:28] analytics. Students are able, once they

[1:07:30] have had exposure k-9 they are able to apply at the end of

[1:07:35] ninth grade in experience cte in 10-12.

[1:07:39] one thing we have done currently because we backward designed

[1:07:43] this, we have pre-apprenticeships so we have

[1:07:46] pre-apprenticeship in all of the pathways and what that

[1:07:49] pre-apprenticeship does is it allows us to connect to local

[1:07:52] businesses. We have over 200 business

[1:07:55] partners and it really started because it started with mack any

[1:08:01] and we put students through the pre-apprenticeship who sent to

[1:08:07] class and mirrored that in all of the pathways that we offer.

[1:08:09] we work went priceses, wynne hospital, indium and prea

[1:08:16] apprenticeship is allow students to develop technical skills,

[1:08:19] career prad practices, work in those businesses and industries

[1:08:22] and learning what they like, what they don't like and

[1:08:25] connecting to their community and hopes to keep them here.

[1:08:28] >> and if I could just expand on that.

[1:08:32] not only are we developing or have we developed programs in

[1:08:36] line with new york's aspire portrait of a graduate and where

[1:08:40] we are going, we are also in discussion with our regional

[1:08:45] partners omh and boces to talk about the ways in which we can

[1:08:49] expand access to our cte programming so that the impact

[1:08:52] that utica will experience is shared more broadly with our

[1:08:55] partners in the area as we are looking to further rejuvenate

[1:08:58] and develop this region. Along those same lines, would I

[1:09:01] like to give chief operational officer time to talk about the

[1:09:05] impact locally as we work with our vendors in the community and

[1:09:08] things like that. >> good afternoon everyone.

[1:09:13] how are you? It's a huge impact.

[1:09:16] being in the operation side for over 22 years in the district,

[1:09:19] we know how vital it is for the skilled labor in our community.

[1:09:24] we know the struggle we have to fill those positions throughout

[1:09:27] the years and know that it's a huge impact for everybody in the

[1:09:35] community with those skilled labor positions.

[1:09:38] and we also you through these projects feed the local economy

[1:09:41] with those skilled labor positions moving forward.

[1:10:00] >> I will ask my first question to mr. Van wagoner.

[1:10:05] looking at your testimony, things seem to be very rosie.

[1:10:09] very successful in all areas. Everything is great.

[1:10:14] but tell me, I mean what obstacles do you see, you know,

[1:10:20] in your community that needs to be addressed so that we can help

[1:10:26] you be even more successful. >> I'm in my 19th year and

[1:10:30] when I talk to my colleagues around the country, it is

[1:10:37] reaffirmed how fortunate I feel to be in new york state and the

[1:10:39] way in which the state values education, both k-12 and

[1:10:44] postsecondary. However, it is a great challenge

[1:10:47] in that all of these varied funding streams that I mentioned

[1:10:54] that mvcc takes great advantage of and we are proud of and

[1:11:00] grateful for the administrative costs that comes with managing

[1:11:07] multiple funding streams when there is all of this workforce

[1:11:11] development effort and yet community colleges at our core,

[1:11:15] we are workforce development. When we look at our base aid,

[1:11:19] while it has been probable the best we have ever been,

[1:11:25] certainly in my 19 years, it's hard to look at the four-year

[1:11:31] sector getting 3.5 times per student what community colleges

[1:11:34] get so our-- the base infrastructure and the core of

[1:11:39] our operation to support the workforce development is

[1:11:41] probably our greatest challenge, to be quite frank.

[1:11:46] and working with employers, sometimes working through some

[1:11:52] of the with apprenticeship, the department of labor has made

[1:11:56] great strides in breaking down red tape but there are still

[1:12:00] miles to go. We have seen, in the last three

[1:12:03] years, a great accelerating in the numbers that we are able to

[1:12:09] bring into pre-apprenticeship and apprenticeship because of

[1:12:11] changes that the department of labor has made in streamlining

[1:12:14] the process. >> I mean I guess I would have

[1:12:20] to agree with you, when the on-ramp program was started and

[1:12:27] you saw all these dollars in the budget for everything, I was a

[1:12:29] little confused as to why the majority of that didn't already

[1:12:33] go through the community colleges since they happen to be

[1:12:37] kind of the centers of where we would train people for high need

[1:12:44] jobs, you know, in the area. And I'm still hoping that, as we

[1:12:51] go through the process, we can direct more and more of that

[1:12:56] funding to a community colleges. They have facilities, I mean

[1:13:00] they could use some more equipment probably, things like

[1:13:03] that. But I know in our area, onondaga

[1:13:09] community college, we've put a great deal on their shoulder to

[1:13:13] train all these people from micron and the supply chain

[1:13:17] companies that are coming along with it.

[1:13:20] nursing, all the healthcare shortages we have now.

[1:13:26] so I think that you are correct. >> thank you for that.

[1:13:31] if I could add one more, and really appreciate the support

[1:13:34] with that. Looking forward, you know, the

[1:13:38] carnegie classifications changed this past year for postsecondary

[1:13:43] institutions which you think of r-1 research institutions and

[1:13:48] r-2. It used to be community colleges

[1:13:49] now there are 31 different rankings of classification for

[1:13:53] postsecondary institutions. Community colleges are now

[1:13:57] ranked on low, medium and high in the graduation rate,

[1:14:01] accessibility based on pell grants and your post-graduate

[1:14:06] outcomes and new york state, in my opinion, has one of the

[1:14:15] weakest data systems when it comes to employment and our

[1:14:19] ability to track postgraduate outcomes as the accountability

[1:14:23] ramps up, I would hope that the state pays close attention to

[1:14:27] the infrastructure that will be needed to provide those

[1:14:30] outcomes. I can tell you 70% of our free

[1:14:33] fast track students have completed the class but then the

[1:14:39] extent to which I can truly get those data points on their job

[1:14:45] placements, very difficult under the direction of the suny

[1:14:49] chancellor, very excited about the digital transformation

[1:14:51] effort that suny is putting in place, selecting a vendor for

[1:14:58] non-credit data system for the entire suny system.

[1:15:01] that is very exciting and it can help the state shore up it's

[1:15:07] system on employment and post-graduate outcomes.

[1:15:09] >> thank you. >> thank you again for both of

[1:15:15] your testimony. Dr. Spence, how many students

[1:15:19] are in the utica school system? >> as of our most recent pupil

[1:15:28] count 9,178 in our enrollment and we have otherses in out of

[1:15:33] district placement and charters. >> how many lang languages.

[1:15:38] >> over 52 languages. >> I want to emphasize the

[1:15:42] demographics of the community. And this question is to both of

[1:15:45] you, can you talk about your partnership as you opened up the

[1:15:53] center and worked with the college to see how the great

[1:15:56] programs that were discussed are going to blend if a student

[1:16:00] chooses? >> well first I think should we

[1:16:02] talk about-- I mean we have a couple do you want to talk about

[1:16:05] the fast track or mvcc bridge program?

[1:16:09] >> it goes back 25 years the millennial project with the

[1:16:13] bridge program, dual enrollment, having those in place.

[1:16:17] the high school is literally across the street for those who

[1:16:21] don't know. Probably 300 yards away from our

[1:16:23] utica campus. And when it came to the-- as the

[1:16:27] school district was designing and developing the programming

[1:16:30] for the cte wing, our free fast track model was just coming into

[1:16:36] play january of 23, that we sat down faculty and staff to design

[1:16:42] all of those pathways that they spoke of.

[1:16:45] each one of our free fast track classes, it can only be access

[1:16:51] free fast track funding if it is in a career pathway; for

[1:16:55] example, cdl training would be great.

[1:16:58] get that free fast track, get that job in 12 weeks, make six

[1:17:01] figures as a truck driver but where is the pathway with that?

[1:17:05] so all of these programs have pathways for them.

[1:17:07] >> I think one that is most critical for us is the one for

[1:17:11] for the rta, teaching assistants.

[1:17:13] we have a program where people can get a certification and

[1:17:17] allows us to really fill high needs, critical areas within the

[1:17:21] organization so these partnerships are instrumental

[1:17:26] number one, it's a testament to us being a good steward of

[1:17:28] public resources but also these partnerships helping us to

[1:17:32] address human capital issues within the region while also

[1:17:35] expanding educational attainment and, again, occupational attain

[1:17:39] many. So two things we are looking at

[1:17:40] is how are we creating opportunities for students to

[1:17:43] fulfill their educational aspirations while providing a

[1:17:48] pathway and avenue for students to be pursuing employment

[1:17:53] opportunities postsecondary. And another thing that we

[1:17:55] haven't discussed is the percentage of students that

[1:17:58] economically disadvantaged in our school system that really

[1:18:02] need an opportunity to postsecondary provide and find

[1:18:07] employment and help them feed their families and support their

[1:18:09] families. So it has been a really great

[1:18:12] partnership and again, we appreciate the support of

[1:18:14] assemblywoman buttenschon as you have given the district.

[1:18:20] >> I think president van wagoner, you brought up a point

[1:18:24] that you know I do bring up to both of you is assessment and

[1:18:29] the importance of state dollars that have been put into these

[1:18:35] great programs. And as you stated, you are

[1:18:39] hiring people just to manage how we jockey everything and it is

[1:18:44] frustrating and I understand the regulations as my colleague

[1:18:47] brought up. But more importantly, do you see

[1:18:49] something on your end that could be done to track those students?

[1:18:56] and listen, I have worked with the department of labor and I

[1:18:59] will continue to emphasize them to provide that data to you, but

[1:19:04] is there something legislatively that we can do to help support

[1:19:10] you or any other means to say how could you track those

[1:19:15] students to see their success? >> yeah, right now our approach

[1:19:19] has been we have taken what we have developed through our

[1:19:26] guided pathways efforts with our credit students going to a

[1:19:31] single point of contact, student support adviser, case manage

[1:19:35] many in recent years we have done the same in the non-credit

[1:19:38] workforce side so we have workforce navigators and it's

[1:19:42] literally personal followup. So absent a statewide data

[1:19:46] system, it's that personal followup and that's costly in

[1:19:50] terms of human capital; which goes back to our base funding

[1:19:54] challenges that we have. >> and it would be the same in

[1:19:57] k-12. I mean we look at it

[1:20:00] longitudinal study over time. How have people performed in the

[1:20:03] system after looking at these different interventions as the

[1:20:07] initiatives and the state change over time.

[1:20:10] and hour challenge is the same. How do we track that while

[1:20:14] managing existing student base that we have.

[1:20:16] so to denote efficacy long-term, we need a department that is

[1:20:21] research-based, to study the impact of our initiatives and

[1:20:24] interventions over time whether as we are assess social

[1:20:29] mobility, educational atiniment or occupational attain many.

[1:20:32] there are models that do that. It comes down to what you said,

[1:20:35] the human capital aspect of it. >> you have been to conferences

[1:20:38] with other states, haven't seen anybody that is that could give

[1:20:41] us a hand with that? >> I started my career in

[1:20:46] institutional research and 30 years ago the state of colorado,

[1:20:49] I could submit my graduation file, get the unemployment

[1:20:53] insurance file and know where my graduates were new york state,

[1:20:57] it is not that easy. >> it's on us is what you are

[1:21:02] saying. >> there are special-- there is

[1:21:04] a special mou, there are things in motion, but been working on

[1:21:08] it for 18 years now. >> I do know of another system

[1:21:13] that has sort of that institutional research mechanism

[1:21:17] built in the k-12 structure. I forget the particular district

[1:21:21] but have I colleagues that left r-1s that do that work.

[1:21:24] human capital. It's funding, you know, to fund

[1:21:27] a department, specifically designed to track student

[1:21:30] outcomeses over time, we would need additional revenues to

[1:21:34] support that type of initiative. >> and as chair of small

[1:21:38] business, could you tell me what emphasis, as we talked about, is

[1:21:43] the great programs you have, are placed on small businesses in a

[1:21:48] percentage, would you say? >> I would say our cte program

[1:21:51] is designed to do just that. As a small business owner

[1:21:53] myself, I understand the dirth scarcity of being able to find

[1:22:00] people to do the work, you know, the demand is growing in the

[1:22:03] area. And as you all continue to

[1:22:06] invest across the state and provide nishs and grants to

[1:22:09] expand small businesses, we must-- so too must we have the

[1:22:16] human capital and the people to fulfill those roles and so it

[1:22:20] really is a perfect marriage and we place the emphasis,

[1:22:23] especially as we are looking to revitalize our local economy,

[1:22:26] when a school district wins, so, too, does the local economy

[1:22:30] because we are providing the next generation of leaders and

[1:22:34] employees for many of our small businesses and many of the

[1:22:37] people that exit ours schools, we have some that directly

[1:22:40] across from the school that became small business owners so

[1:22:44] it's an amazing endeavor and we are looking to bridge that gap

[1:22:48] while providing our small business owners with a citizenry

[1:22:54] and employee base that we have done the training up front.

[1:22:57] and that's evidenced by the certifications and pathways

[1:23:00] because when we designed them, it was not divorced from the

[1:23:07] business. Our captains of industry came to

[1:23:09] us and said these are the particular skill sets we need in

[1:23:12] order to be effective in our work and how can you design a

[1:23:15] pathway to make sure the students post-secondary mirror

[1:23:20] the skills needed once they enter.

[1:23:22] less training for the businesses.

[1:23:24] they can have more immediate I am pack and we hope to see

[1:23:26] growth in our local economy. >> thank you.

[1:23:29] I have to put in a plug for agriculture as well as possibly

[1:23:36] as we know the future farmers of america program that is the

[1:23:41] largest, with my colleagues in new york city.

[1:23:42] so clearly we see the importance of that as well as veteran

[1:23:50] minority-owned businesses. Thank you for your time.

[1:23:51] >> thank you all. >> mr. Lemondes.

[1:23:55] >> thank you, chair thank you all for being here.

[1:23:58] I think what you are doing is fantastic.

[1:24:02] very simple question and it has to do with chair stirpe's

[1:24:06] initial question. He talked about, and you

[1:24:08] responded to some of the things that you need.

[1:24:11] could you just give a ball park of the funding that you need to

[1:24:16] go with this additional level of support?

[1:24:21] >> as it relates to a statewide data system, I don't even know

[1:24:26] what a number would be on that. But what we have, the community

[1:24:31] college sector within suny we have asked the last two years

[1:24:34] for $100 million, which the way we arrived at that when we would

[1:24:39] talk about the state, why is it that you take the public funding

[1:24:43] that goes to suny four-year and suny community colleges and it's

[1:24:49] three and a half times per student.

[1:24:52] and yet the state is all about equity and underserved

[1:24:57] population support and economic mobility and yet you have this

[1:25:00] huge inequity. And the response is, it's the

[1:25:04] county. The counties.

[1:25:06] have you to talk to the counties.

[1:25:07] when you look at the counties, the counties provide more than

[1:25:10] $100 million more than the state in supporting dlujs so that has

[1:25:14] been our ask the last two years, just come close to the dunes.

[1:25:18] we are not even trying to get to equal the three and a half.

[1:25:23] just equal the counties. >> thank you very much.

[1:25:27] appreciate it. >> anybody else?

[1:25:33] mr. Dais. >> is it still morning?

[1:25:34] yes, it is. First off, thank you guys for

[1:25:37] coming. I'm a big believer in community

[1:25:39] colleges first and foremost. Actually got a lot of love for

[1:25:42] utica. I worked over on a production

[1:25:44] site in utica and we hired directly from some of the

[1:25:47] community colleges there and utica is a great town, great

[1:25:53] food and. >> ocean blue.

[1:25:56] >> ocean blue, yeah. I also have a background in

[1:26:00] advanced manufacturing where I worked with a community college

[1:26:02] in california and we built an innovation center, hired

[1:26:05] directly and they did a really good job in putting placement.

[1:26:07] I have also did workforce development programs and the

[1:26:12] biggest-- the thing that I hated most when you had dedicate the

[1:26:15] young people who went through the entire program and didn't

[1:26:18] have a job lined up for them at the end, right?

[1:26:21] they were on their second or third strike and needed that

[1:26:24] chance. We only have a 15-20% placement.

[1:26:26] I wish I could get that number up higher.

[1:26:29] so what would you recommend so that we can get those

[1:26:32] placements, those numbers higher so that your students who do the

[1:26:34] right things, who show up every day and work their tails off we

[1:26:38] can get them into the jobs across the state that would help

[1:26:40] our economy? >> yeah, did you say you wanted

[1:26:43] to... >> I just wanted to say that our

[1:26:46] district is pleased that in real time we have employers reaching

[1:26:49] out to us to talk about employment opportunities once

[1:26:55] students complete the pathways and apprenticeships and we are

[1:26:57] working on that in real time. Do you want to say anything

[1:27:00] about that? >> sure.

[1:27:04] actually, on the way out here, I had a business reach out to me.

[1:27:07] now that they know we have our cte wing, these

[1:27:13] pre-apprenticeships, everybody wants in on that.

[1:27:14] we are very fortunate in that way one thing that we can do is

[1:27:19] really fine tune that pre-apprenticeship.

[1:27:21] we want to give you the career and tech stills.

[1:27:24] we wanted connected to the business but what is the

[1:27:27] businesses, you know, what is their obligation afterward?

[1:27:31] what are you willing to do to commit to these students?

[1:27:35] people are being very creative. On the way out here, I had a

[1:27:39] call and we are meeting next week to design a new

[1:27:42] pre-apprenticeship but they're going to be giving students

[1:27:45] opportunities to work at their place of business and build that

[1:27:50] connection and jump into a pre-apprenticeship and they're

[1:27:53] also a new york state certified apprenticeship business so they

[1:27:56] can move their way in there. >> thank you.

[1:28:00] additionally, what are you guys doing directly with veterans?

[1:28:03] what is your enrollment with veterans in your schools and

[1:28:05] what can we do to help the veterans get into the workforce

[1:28:08] development programs to make sure they get the job

[1:28:10] opportunities they deserve? >> I didn't hear the first part

[1:28:13] of the question. >> veterans.

[1:28:15] how many veterans. >> school district a little

[1:28:17] challenging. >> I'm sorry.

[1:28:20] >> for veterans we work very closely with the veterans

[1:28:24] outreach center and several non-profits in the area that we

[1:28:26] will often host roundtables of those non-profits that support

[1:28:31] veterans. Utica doesn't have an excessive

[1:28:37] concentration of veterans in contrast on other areas of the

[1:28:40] state, but we have a veterans coordinator and work through,

[1:28:44] not just the veterans but also their family members coming to

[1:28:47] college on the g.I. Bill. >> thank you.

[1:28:53] >> mr. Norber. >> thank you for being here

[1:28:55] today. There are not many things

[1:28:58] important than getting people to work after they are done with

[1:29:00] college or high school, making sure they have the skills

[1:29:03] necessary to get them to work and full fulfill their lives as

[1:29:06] quickly as possible. My question has to do more with

[1:29:09] the tracking, like you said before that is so difficult

[1:29:12] without a statewide data system. A normal one, one that is

[1:29:19] efficient and works. We don't really know why or how

[1:29:25] kids or students after school are working and what is the

[1:29:27] reason behind that? Why they can't find a job.

[1:29:30] what is going on with them. If they're going to a different

[1:29:33] state is important and it's important to understand what is

[1:29:35] going on in terms of tracking of businesses businesses leaving

[1:29:39] the state because that's something that also might have

[1:29:41] an effect. So is there any plan to track

[1:29:47] also businesses or-- or push more to make sure that we know

[1:29:51] what is going on with the students?

[1:29:57] >> I'm not aware of anything tracking the businesses but

[1:30:00] looking at a state like texas that I think florida also have

[1:30:05] very strong data tracking systems.

[1:30:06] >> there you go. And that helps inform decision

[1:30:12] makers at all levels of government as well as the

[1:30:14] college on a daily basis where we provide-- at this time we try

[1:30:19] to do what we can in terms of we do a high school feedback report

[1:30:24] to all of our local school districts to give them some data

[1:30:28] points. And for us, as I said, it just

[1:30:33] remains a challenge. Yeah and it's-- I know it would

[1:30:36] take time for that, but I just really appreciate the

[1:30:38] opportunity to put this on your radar screen.

[1:30:41] >> there are states implementing that and do have an efficient

[1:30:45] system. Can't we just copy and paste

[1:30:48] that and find a way to do the same?

[1:30:52] >> not to reinvent the wheel. >> it's fascinating.

[1:30:56] >> is there somebody you are talking to in other government

[1:30:59] agencies? >> that, I don't know.

[1:31:03] >> thank you. >> mr. Griffin.

[1:31:11] -- ms. Grirve. Thank you again to chair stirpe

[1:31:13] and chair buttenschon and welcome to all of you.

[1:31:15] thank you for being here. My first question is to

[1:31:22] president van wagoner. I am impressed with the programs

[1:31:24] you have developed and the focus on workforce despite the lack of

[1:31:34] funding, you have done quite well.

[1:31:36] I want you to describe a little further.

[1:31:38] you mentioned developing a.I. Programming and I wonder if you

[1:31:41] could describe a little further what you would like to put in

[1:31:43] place at mohawk valley? >> earlier this spring so we

[1:31:48] have trained a couple hundred and certified more than 100

[1:31:55] individuals working with local employers in what is a 30 day

[1:32:01] agility challenge. We are working with human skills

[1:32:04] that a.I. And their c.e.o. Todd mccleese who developed this,

[1:32:09] designed for 15 minutes a day online self-paced for 30 days,

[1:32:14] built on that notion of if you are working with a.I. On a daily

[1:32:18] basis, for 30 days, you are going to build good habits, and

[1:32:22] kind of the theory of action here is that if we let a.I.

[1:32:29] happen to us the same way we let social media happen to us,we'll

[1:32:34] end up with the a.I. Equivalent of the doom scroll where you

[1:32:41] lose all sense of human agency and the 30-day agility challenge

[1:32:44] is a human first method, if you will where it reinforces the

[1:32:52] need to maintain your sense of agency with a.I. And human

[1:32:58] skills, we believe community colleges is the mechanism, the

[1:33:01] community college level is the mechanism to deploy this

[1:33:04] statewide. With a.I. It's not access to the

[1:33:06] technology. It's ac stoats right kind of

[1:33:08] training. And we believe we have that

[1:33:11] right kind ever training. Human skills working with suny

[1:33:15] orange, suny adirondack, we are the first ones to come through

[1:33:19] with mvc dr now suny broom, finger lakes, multiple colleges,

[1:33:23] the intent is to develop some regional hubs around community

[1:33:28] colleges to deploy this training not just to workers but to

[1:33:35] new yorkers in general. We have it available in our

[1:33:39] community education flyer that goes out each term.

[1:33:41] >> it sounds like excellent idea and is there a level of funding

[1:33:45] you believe to really accomplish the goals that you have?

[1:33:51] >> actually we are working on a proposal on that that hopefully

[1:33:55] we see soon. >> thank you very much and

[1:33:59] quickly. Superintendent spence and team,

[1:34:02] I think you have done an amazing job with your program and I

[1:34:06] just-- we won't have time now but I think it would be

[1:34:09] important for you to give advice to other school districts across

[1:34:12] the state in how to replicate that in some way.

[1:34:14] I think that would be really helpful to many districts that

[1:34:18] we have along island and across the state.

[1:34:24] >> anybody else? All set.

[1:34:27] thank you very much. >> thank you.

[1:34:33] >> I appreciate coming. >> next panel, randy wolken and

[1:34:55] kevin schwab. >> he is accosting someone else

[1:35:25] who just walked out. >> is everybody ready?

[1:35:57] thanks for being here. Who goes first.

[1:36:02] do you want to do it, randy? Okay.

[1:36:08] >> there we go. Thank you.

[1:36:14] it's a pleasure to be here this morning.

[1:36:16] thank you for inviting me randy wolken president and c.e.o. Of

[1:36:22] mack any. We are pleased for the tad's

[1:36:26] testimony and the impact and effectiveness of the workforce

[1:36:28] development programs that have been funded momentous and

[1:36:43] important moment in manufacturing.

[1:36:45] they call it the manufacturing moment, with huge amounts of

[1:36:48] investment. Now in the central new york

[1:36:51] region I'm sure kevin will talk about that, too but throughout

[1:36:54] the state of new york, time of tremendous growth and

[1:36:57] opportunity. Specifically we would like to

[1:36:59] thank the legislature for inclusion of 1.75 million for

[1:37:04] the manufacturers intermediary apprenticeship program in this

[1:37:08] year's budget 500,000 for the pre-apprenticeship program.

[1:37:11] without the support of these and our many champions in the

[1:37:16] assembly and senate, the programs would not be possible.

[1:37:20] it has proven to be instrumental in addressing new york's

[1:37:23] manufacturing workforce challenges across the state,

[1:37:27] supporting companies with literally hundreds of companies

[1:37:29] in recruitment, skilling act acting as the intermediary and

[1:37:35] group sponsor for what goes on with the state university of

[1:37:38] new york and partners from manufacturers alliance

[1:37:41] throughout every region in the state.

[1:37:43] building on a decade of success since 2016 m wr ap has supported

[1:37:48] apprenticeship programs for all individuals, regardless of their

[1:37:51] work experience or academic qualifications helping employers

[1:37:55] meet their workforce needs to grow and thrive in

[1:37:57] new york state, this earn and learn model provides equitable

[1:38:02] upward mobility for employees by combining both career-related

[1:38:05] education and on-the-job training.

[1:38:10] this comprehensive approach for the semiconductor and advance

[1:38:13] manufacturing industry sectors broadens the talent pipeline for

[1:38:20] underrepresented populations since just 2022, the alliance

[1:38:22] has served over 700 registered apprenticeships with 60% being

[1:38:27] from underrepresented populations.

[1:38:30] new york's most robust workforce development ecosystem continues

[1:38:33] to attract new businesses and grow existing operations such as

[1:38:39] advancement of manufacturing such as chobani, fairlife,

[1:38:44] micron, seamans and others are choosing new york to expand and

[1:38:47] relocate their businesses. They're voting with confidence

[1:38:51] that our state's ability to provide solutions to their

[1:38:53] workforce needs. Macny is engaged in micron's

[1:38:57] future ready workforce comisht consortium.

[1:39:00] and leading efforts with community partners and

[1:39:02] educational institutions to develop registered

[1:39:04] apprenticeship program that will replicate initial success that

[1:39:07] micron has already had with the idaho manufacturing association

[1:39:12] and the college of western idaho which are both achieving this

[1:39:15] right now in boise. Macny's efforts in workforce

[1:39:19] development extend to multiple underrepresented populations in

[1:39:22] advanced manufacturing, and thanks to the support of

[1:39:24] new york state, legislative as well as the empire state

[1:39:30] development's office of strategic workforce development

[1:39:32] macny has launched a pre-apprenticeship program

[1:39:35] focusing on women for registered apprenticeship and job

[1:39:38] opportunities in advanced manufacturing, commonly known as

[1:39:40] real life rosie is a program provides women with 12 weeks of

[1:39:43] free training in advanced manufacturing, industry

[1:39:47] certifications and empower skills such as resume

[1:39:49] development, digital networking and confidence building.

[1:39:53] successful participants receive up to six job interviews with

[1:39:56] companies that offer registered apprenticeships.

[1:39:59] in fact, new york state department of labor recognizes

[1:40:02] real life rosies as the first registered apprenticeship

[1:40:05] correct entry program for advanced manufacturing in

[1:40:09] new york state. On behalf of macny and

[1:40:12] manufacturers alliance we commend the new york legislature

[1:40:16] for the investment and the steadfast commitment of the

[1:40:21] advancing esd office of workforce development as a

[1:40:23] statewide priority. Because of this investment, we

[1:40:25] are now able to scale the program statewide, cohorts are

[1:40:29] launched this fall in central nosh, capital region, finger

[1:40:32] lakes, the southern tier, and more regions to be added in

[1:40:39] 2026. Also macny alliance of parter in

[1:40:40] continue to focus on programs that provide pathways for yews,

[1:40:44] affects several of our partners you just heard from.

[1:40:47] to succeed in the past year we have also brought in the

[1:40:52] rochester rtma through the finger lakes youth

[1:40:56] apprenticeship program called fly app placing 40,000 400

[1:41:04] students with employers. We have our partners for

[1:41:06] education business program with over 30 years of experience.

[1:41:09] and this closes the gap between industry and education focusing

[1:41:12] on stem careers, engages local employers across sectors with

[1:41:18] things such as factory tours, job shadow internships and

[1:41:22] professional workshops and guest speakers.

[1:41:24] in the past three years alone, 7,000 students and educators

[1:41:29] across 36 districts have partnershipped in this

[1:41:31] programming. Additionally the transadvance

[1:41:34] the partner apprenticeship program for people with

[1:41:37] intellect intellectual and developmental disabilities

[1:41:38] within the manufacturing industry.

[1:41:40] the program was launched in mohawk valley community college

[1:41:42] in the utica area in center for workforce development at monroe.

[1:41:49] the program breaks barriers for neurodiverse learners by

[1:41:54] creating a curriculum design with comprehensive support and

[1:41:59] arranging job interviews with signatory companies.

[1:42:02] we connect outreach to provide technical assistance to

[1:42:05] businesses who want to enhance the recruiting efforts.

[1:42:07] in addition the state funding many of our participating

[1:42:10] companies have utilized the empire state apprenticeship tax

[1:42:14] credit that is a valuable component for manufacturers to

[1:42:19] attract apprenticeships and mentors.

[1:42:21] steadfast supporters of the program and look forward to the

[1:42:23] extension. We thank you for your continued

[1:42:24] support of the workforce efforts I've just mentioned and of

[1:42:27] course your efforts in making new york state an attractive

[1:42:30] place to build and grow manufacturing facilities.

[1:42:34] >> thank you. You are next.

[1:42:39] >> good morning, chairman stirpe, chairwoman buttenschon

[1:42:43] and members of the committees. Thank you for having us here

[1:42:47] today. I'm kevin schwab.

[1:42:49] vice president of public policy and government relations with

[1:42:51] centerstate c.e.o. In syracuse. Where business leadership and

[1:42:55] economic development organization across a 12-county

[1:42:59] region with businesses large and small among our membership.

[1:43:03] every day our team goes to work with the mission to make our

[1:43:06] region a place where business thrives.

[1:43:08] and all people prosper. As you can see from my written

[1:43:12] comments, I have considerably more than five minutes I've

[1:43:14] submitted to you so I will be jumping through at different

[1:43:17] points to try to stay close to the timeline here.

[1:43:20] let me start with the really good news.

[1:43:22] I will also touch on opportunities and, yeah, there

[1:43:25] are still real challenges in front of us.

[1:43:27] but the good news, everywhere I go, you know, the first question

[1:43:31] comes out of peep's mouths is tell me what is going on with

[1:43:36] micron. I can tell you that we are at

[1:43:38] the front end of a wave of growth in syracuse that we have

[1:43:41] not seen in generations since, in the nearly three years since

[1:43:45] micron announced its $100 billion mission it is track

[1:43:53] to be in the ground before the end of the year and producing

[1:43:56] memory chip for commercial use in 2028.

[1:44:02] the second fab on track for 2030 and micron recently opened its

[1:44:08] syracuse office and hired dozens of people in syracuse with many

[1:44:11] more to come. Since I provided the update last

[1:44:13] year, we have seen significant occurrences in the central

[1:44:16] new york economy that are very, very positive signs.

[1:44:19] we see population growth accelerating, wages are growing

[1:44:23] faster in our key industrial sectors and faster rate than at

[1:44:27] state or national averages. Job growth is consistently

[1:44:30] higher in the syracuse msa than the state average, up a little

[1:44:35] over 2.5% to date, compared to 2024, and that compares with

[1:44:40] 1.3% job growth statewide. There are nearly 7,000 more jobs

[1:44:44] right now in central new york than a year ago.

[1:44:47] that growth ranks us among the top 10 nationally right now

[1:44:50] among large and mid-sized metros.

[1:44:52] in other words we are doing pretty well.

[1:44:55] building permits for new housing up 57% from 2023 to 2024.

[1:45:00] that's still not nearly enough. But it is pretty impressive

[1:45:05] progress. And over the last sdec aid, we

[1:45:07] have gone-- decade we have gone from an anemic of courser of

[1:45:12] 5 million-dollar a year to an average of $65 million a year.

[1:45:16] and that's thanks to significant support from the legislature and

[1:45:19] from the administration that has allowed us to expand our

[1:45:24] offerings for business start-ups.

[1:45:25] we have the largest business incubator and succeed ale rate

[1:45:29] are into the-- accelerator in the state and one of the biggest

[1:45:35] in the nation. Everything is great, right?

[1:45:38] not so fast. We have more job openings than

[1:45:41] people to fill them wee. Have incredible skills gaps.

[1:45:44] and our city has some of the highest concentrated poverty in

[1:45:47] the nation. That is just unacceptable and

[1:45:50] frankly syracuse is not alone in that.

[1:45:51] we have aging public infrastructure that in some

[1:45:54] cases is not up to the needs of a growing community and

[1:45:56] certainly is not up to the capacity in many cases.

[1:46:00] and our civic infrastructure is growing quickly, too.

[1:46:03] or at least the needs are. Think hospitals, housing,

[1:46:06] hotels, et cetera. Housing perhaps next to

[1:46:09] workforce, by the way, is our most daunting challenge and

[1:46:13] certainly when asked what keeps me up at night, those are the

[1:46:16] top two on my list and we need to leverage momentum from large

[1:46:20] opportunities like micron to attract more companies to start

[1:46:22] in our region and to attract companies as well.

[1:46:27] we also need to turn this into a virtuous cycle.

[1:46:32] you don't take your foot off the gas at this point.

[1:46:34] you lean in, you invest more. You make the changes now that

[1:46:38] will have an impact two generations, three generations

[1:46:42] from now. So where do we do that?

[1:46:44] workforce is vital. Issues-- it is key to have one

[1:46:48] stop approaches like northland and buffalo, like on ramp that

[1:46:54] has been talked about. Over come issues of persistent

[1:46:57] poverty more than having workforce programs but the

[1:46:59] supports for people who need them, including things like

[1:47:02] benefits cliff supports and changing the way we do deal with

[1:47:06] that right now. Site development is critical.

[1:47:09] we have invested and we need to continue to invest in that to

[1:47:12] attract other companies. You have heard about our energy

[1:47:14] needs. We need to lean into that.

[1:47:16] all of the above and yes, we are very supportive of new nuclear

[1:47:20] energy for our region and for our state.

[1:47:22] new business innovation is critical.

[1:47:25] accelerated programs like 43 north, genius new york,

[1:47:28] luminate, they have all delivered.

[1:47:32] we need to renew the programs, not back away from them even

[1:47:36] though some are due to expire. Tax credits for jobs in

[1:47:39] investment. Think excelsior tax credit and

[1:47:41] more. We need to do that as well.

[1:47:44] I talked about angel investment tax credits.

[1:47:47] new york really has paltry creds.

[1:47:52] this is a place where we can make a difference for all of the

[1:47:55] start-ups we talk about, we can be highly competitive if we are

[1:47:58] willing to lean in and support vetches up to $500,000 in new

[1:48:02] businesses. And I'm going to finish out with

[1:48:04] a couple of quick things. We have done very well with our

[1:48:07] regional council process of saying let's plan within

[1:48:11] regions. We need to start thinking about

[1:48:12] how do we leverage what is happening across regions.

[1:48:15] we need to connect regions better.

[1:48:17] we need to really think across regional economic development or

[1:48:22] super regional economic development.

[1:48:24] we can talk about what that looks like and connecting us

[1:48:27] physically. High speed rail across new york

[1:48:29] should be something that we are willing to study and follow up

[1:48:33] on and invest. We should be connecting

[1:48:35] everywhere from niagara falls to new york city because there are

[1:48:39] a lot of opportunities there. People wouldn't realize that

[1:48:42] today there are more than 20,000 people each day who travel

[1:48:46] between syracuse, buffalo and rochester to commute.

[1:48:48] let's increase that, let's leverage the strength of those

[1:48:51] areas. And then finally, new york into

[1:48:53] esd to foster an environment that promotes growth.

[1:48:57] we are never going to be a low tax state.

[1:49:00] I'll concede that. But we really shouldn't be 49

[1:49:04] and 50 on the lists either. We need to make this a place

[1:49:07] that's attractive and inviting for new businesses to start here

[1:49:11] , businesses to move here, people to want to build their

[1:49:15] lives here. Happy to take your questions.

[1:49:17] thank you for having me. >> thank you.

[1:49:28] >> when you talk about the investments needed and you talk

[1:49:31] about workforce, you know, we've got a number of workforce

[1:49:38] programs started, sounds like you think maybe there should be

[1:49:44] more. So what else is really needed

[1:49:47] beside what we are doing currently?

[1:49:52] anybody? >> I'll start.

[1:49:53] I mean obviously we need to continue to invest more.

[1:49:56] I mean we've got literally tens of thousands of jobs that we are

[1:49:59] trying to fill. So it really starting now in

[1:50:03] that approach matters. That's the nexus of why we are

[1:50:07] doing both our pre-apprenticeship program and

[1:50:10] career awareness. We want to get as many

[1:50:12] individuals who are currently in our communities employed in

[1:50:15] these next, both next opportunities and existing

[1:50:17] opportunities. So we need to double down on our

[1:50:21] investments that kevin said correctly needs supports around

[1:50:24] those investments because training alone sometimes isn't

[1:50:26] enough. You need the supports around

[1:50:28] things like child care and transportation.

[1:50:30] and other ways to make sure that they both attend the training

[1:50:33] and more importantly, once they get a job, they can keep those

[1:50:38] jobs. >> I would add to that that

[1:50:41] those supports are the difference for pulling a lot of

[1:50:43] people out of persistent and even generational poverty.

[1:50:49] it really does make a difference in terms of of the ability for

[1:50:51] people to not only enter these programs but to complete these

[1:50:56] programs. And once they do, that's life

[1:50:58] changing, right? We've seen it over and over

[1:51:01] again. When I hear numbers like, you

[1:51:03] know, 20%, for example, completion on some programs, I

[1:51:10] don't think that's a statement on the program.

[1:51:12] I think that's a statement on the people's ability to make it

[1:51:15] through those programs simply because of other factors in

[1:51:18] their lives: I know we have seen considerably higher success

[1:51:21] rate with some of the programs that's we have in our region,

[1:51:27] centerstate c.e.o. Has been associated with with a number of

[1:51:29] partners across syracuse, onondaga county and neighboring

[1:51:32] counties in part because we begin with starting with the

[1:51:35] companies and what their needs are, working back from that,

[1:51:39] recognizing that you need to know that you are training

[1:51:41] people for the right things. Finding people with the aptitude

[1:51:45] and the interest. That means reaching out throw

[1:51:49] community partners. Through not-for-profits that

[1:51:51] focus on this and they be when they are making their way

[1:51:55] through, making sure they in fact have the supports, the

[1:51:57] child care, the stipends, the transportation supports.

[1:52:02] and benefit cliffs are an issue and something we need to think

[1:52:07] about. All of that has to factor into

[1:52:10] someone's ability to make it through workforce development

[1:52:12] program. >> I mean how do you think we

[1:52:14] are doing as far as reaching out?

[1:52:16] I realize you know, one of our big struggles is finding enough

[1:52:22] workforce enough people to fill all these jobs and we are having

[1:52:25] to go into communities we've never been in before.

[1:52:29] that's why we need, you know, the support services all around

[1:52:34] it, et cetera. But are we reaching enough

[1:52:38] people doing this or is there something else we need to do?

[1:52:41] >> I'll give you an etch. We need smart program designs

[1:52:48] and continued supports. Our real life rosie program, in

[1:52:51] particular, which was launched in 2023, the numbers are quite

[1:52:56] compelling. The offer of supports, while 148

[1:52:59] total participants, 78% completion rate, then 72% also

[1:53:04] received certificates recognized credentials and nearly 70% have

[1:53:08] employment. So the reality is if you have

[1:53:10] those supports, once you find the individuals and you gets

[1:53:13] them in there, if we continue to support them as they go through

[1:53:17] both the preparation and the employment, we can keep them

[1:53:21] there but we have to continue to do more and more outreach to

[1:53:25] make sure individuals know of these program opportunities and

[1:53:27] they can complete them. >> mr. Chairman, to answer

[1:53:30] your question, no, I don't think we are doing fluff to reach

[1:53:34] tout-- we are not doing enough to reach tout people yet.

[1:53:37] this is hard work. You really need a level of trust

[1:53:43] and confidence in communities that frankly have had reasons

[1:53:46] not to have trust and confidence.

[1:53:49] you need partners within those communities.

[1:53:52] you need to build a presence there someone earlier mentioned,

[1:53:59] you know, we have tremendous community colleges, why aren't

[1:54:03] we funneling more through this? Community colleges should

[1:54:08] certainly be strong and active and integral partners in this

[1:54:13] process, but the outreach piece of this is the part that,

[1:54:18] perhaps, they're not best providing that is something they

[1:54:26] are incredibly good at when we are talking about training

[1:54:29] people to provide the skills. But there is the connection

[1:54:32] within the community that is the secret sauce to making this

[1:54:36] work. >> so you think that the fact

[1:54:38] that some of these new onramp centers are going to be located

[1:54:46] deep in the communities that we're looking for these to

[1:54:50] access these populations of people, are really the secret.

[1:54:55] because getting them up to occ or having them even know about

[1:54:59] what is going on at occ is more of the struggle.

[1:55:03] >> I actually think it's the latter.

[1:55:06] we are talking about in the example you and I are discussing

[1:55:10] we are talking about a few short miles difference and on bus

[1:55:14] lines. It is not impossible but people

[1:55:16] have to know that it's there. They have to see themselves

[1:55:19] there. They have to believe that there

[1:55:21] is a way for them to get on the path.

[1:55:24] and that there's something on hill for them, right?

[1:55:27] when you go up onondaga hill to occ that is the really hard part

[1:55:34] where community partners are critical and having a presence

[1:55:37] within the communities that have so much disinvestment becomes

[1:55:42] the game changer. And having the partners starting

[1:55:46] partners in the business community so you can build a

[1:55:49] level of confidence hey if you make it through this there's

[1:55:53] something waiting for you. Having labors is the same.

[1:55:58] in terms of the success of the programs you've heard we've seen

[1:56:02] similar levels of success. But the reality is there is --

[1:56:07] there are barriers at that time need to be overcome to get

[1:56:11] people started. >> on your apprenticeship

[1:56:15] programs, I mean is there a big backlog of people looking to get

[1:56:19] into these programs? You know, we talk about

[1:56:23] expanding them and everything. But are there people waiting now

[1:56:27] to get in? >> we learned we need to start

[1:56:30] with the preapprenticeship approach often time to the make

[1:56:33] sure they have individuals ready to start in an apprenticeship

[1:56:37] program. That is the way the programs are

[1:56:39] now designed. If you start a preapprenticeship

[1:56:43] program we are looking for companies.

[1:56:45] there are not enough individuals within a company who want to

[1:56:51] start a apprenticeship program. The good news is once there is a

[1:56:54] pool of candidates available we will have half a dozen and

[1:57:01] companies that want to interview them and individuals progressing

[1:57:05] through a program and can be brought into their companies.

[1:57:08] so, no, we don't have enough individuals there's enough

[1:57:13] individuals both engaged and ready to go we have to do more

[1:57:16] prep work specifically. And the company relationships

[1:57:20] become critical making sure that companies are ready to accept

[1:57:23] them and prepared to put them into their operations the an

[1:57:27] entry level but on a pathway to success not just a starting job

[1:57:31] but a future job as well. >> one of the things that I know

[1:57:36] there are other questions, but I do want to emphasize that

[1:57:40] connection with the companies. Being important.

[1:57:43] not only for helping to guide the programming, but to build a

[1:57:47] level of confidence and credibility within the students.

[1:57:52] they know there's something waiting they can see themselves

[1:57:56] in it they tour and build relationships with the companies

[1:57:59] during the training. And it not only leads to better

[1:58:05] success during the programs but we know it leads to retention

[1:58:09] and opportunities for advancement within those

[1:58:11] companies once they reach them. >> thank you to both of you.

[1:58:24] I appreciate it. I'm surprised randy still talks

[1:58:28] to me because I send everyone. I do have a question that has

[1:58:35] been brought up number one, is the tracking.

[1:58:39] can you talk about tracking and you talk about success, how do

[1:58:43] you do it? Can you share the model with the

[1:58:45] college and the high school? >> we do both share a model and

[1:58:52] more than willing to share it others, too.

[1:58:55] we are tracking those key statistics completion rates for

[1:59:01] those in the preparation programs, certification rates

[1:59:05] are they getting credentials that employers will want and

[1:59:09] we're tracking I will call it stickiness do they stay

[1:59:14] employed. And we have individuals we want

[1:59:17] to circle back and give them a chance to complete the program.

[1:59:20] I do think as you mentioned those numbers become critically

[1:59:24] important as we continue to make these investments over time, we

[1:59:29] will citizen to focus on those numbers.

[1:59:32] not only did you complete training but did you get job

[1:59:38] offers? We know retention rates go way

[1:59:41] up when we do the supports in terms of training and

[1:59:44] preparation. But the numbers matter greatly.

[1:59:47] >> you do it inturnly? >> we have to do it internally.

[1:59:51] >> how often do you track? Annually?

[1:59:55] >> well, we'll track routinely specific to the individuals who

[1:59:59] go through the programming, we'll track those individuals.

[2:00:02] and then we also are tracking the registered apprentices

[2:00:07] within the companies those are the touch companies we can have

[2:00:11] related to the individuals and you heard in the other panel

[2:00:15] having better data for the state would be helpful.

[2:00:19] literally we have to track the individuals we are connected to.

[2:00:24] >> similar to what randy is discussing we do the same.

[2:00:27] it is how we know. Of course it's easier when you

[2:00:32] know the companies that are dealing with.

[2:00:35] not an advantage that our community colleges have

[2:00:38] necessarily. Most students go through college

[2:00:41] and they choose their path when they complete their program.

[2:00:45] in our instances we are working directly with a cohort of

[2:00:51] businesses as well as a cohort of students going through the

[2:00:56] programming. And, so, those are are the

[2:00:58] places where they are most likely to be placed.

[2:01:01] those are the places where we can follow-up and we do treat

[2:01:05] that as part of the support systems we're talking about.

[2:01:08] how are they doing when they get to that company?

[2:01:11] what are the needs? Where are they a year later?

[2:01:15] and that is all part of the tracking that begins when they

[2:01:20] start the program when they are identified.

[2:01:22] so you can see how that would go through.

[2:01:25] but it is more of a call it a closed system perhaps than the

[2:01:30] community colleges have. >> it sounds like it's part of

[2:01:32] the program that the student must continue to keep in touch

[2:01:36] with you, is that a contract between you and the apprentice?

[2:01:42] >> as kevin mentioned we have a relationship we do with the

[2:01:46] company so we know if they are employed and working there.

[2:01:50] so it still is voluntary generally on the participant

[2:01:55] perspective. But they have an incentive also

[2:01:58] to stay connected as they are looking for the next round of

[2:02:02] employment if they are not employed where they were.

[2:02:05] but it is the company connection that provides the most

[2:02:09] resolution and easiest to get data we have a direct connection

[2:02:13] and they are interested in program success.

[2:02:15] >> I appreciate your support for start-ups.

[2:02:18] but also as you know, the mohawk valley is rich in many

[2:02:24] businesses, 1500 years. Can you tell me how you reach

[2:02:27] out to them to ensure that collaboration continues?

[2:02:31] >> yeah. I think it's our primary focus

[2:02:35] right now we work with companies who are currently in communities

[2:02:39] our members, as well as companies who are coming but

[2:02:43] they don't yet have a presence. So from our perspective working

[2:02:48] with companies is the key existing companies to make sure

[2:02:54] they get first dibbs on the individuals going through the

[2:02:56] programming and the other ones doing interviewing those are the

[2:03:01] current participants in the programs in the mohawk valley

[2:03:03] for example. They are the ones doing the

[2:03:06] interviewing, doing the tours, and having first chance at our

[2:03:11] participants. >> so with your question

[2:03:15] relative to small businesses and workforce programming in

[2:03:18] particular or more broadly in support of small businesses?

[2:03:21] >> looking at ensuring, yes, I understand the importance of

[2:03:25] start-ups but many of the businesses that have had roots

[2:03:30] have worked hard have the same challenges are asking please

[2:03:33] don't forget us. >> we are we proudly operate our

[2:03:38] regional chamber and provide significant level of programming

[2:03:42] for those members. And as part of the expansion of

[2:03:47] our incubator and accelerator model we are offering more

[2:03:51] programming to existing and small businesses to be able to

[2:03:54] come in and frankly trying to communicate that more broadly to

[2:03:57] companies within the region. It was part of the motivation

[2:04:03] behind the expansion of what we were able to do.

[2:04:06] we believe we will be able to offer a much broader range of

[2:04:10] services to those companies and supports where needed.

[2:04:14] >> and as you bring up chambers the importance of the cross

[2:04:21] regional approach is my chambers would like to be a part.

[2:04:24] how do you work to ensure the cross regional areas are heard,

[2:04:30] satisfied and a part of the conversation?

[2:04:32] >> I think there are really large opportunities that have

[2:04:37] sort of developed and gone unnoticed.

[2:04:43] in part because we've seen real success with our regional

[2:04:47] council model. And so we wanted to build on

[2:04:50] that. But you look at some industries

[2:04:53] where you see huge growth potential where new york could

[2:04:57] become much stronger if we worked across those very

[2:05:02] regions. The mohawk valley, central new

[2:05:05] york, downstate, finger lakes, western new york, southern tier,

[2:05:10] all have for example, components that could make our unmanned

[2:05:15] systems or drones industry in this state much stronger if they

[2:05:21] work together. Advanced air mobility.

[2:05:24] sort of a related industry. The north country.

[2:05:28] southern tier. Central new york.

[2:05:30] new york city. All have a compelling case to

[2:05:33] work together on this. We've all talked about

[2:05:37] semiconductors moving across the state and the impacts.

[2:05:40] I think you can identify certainly industries where cross

[2:05:45] regional focus and cooperation and building strategies could

[2:05:50] benefit companies within all of those regions simply by working

[2:05:55] more closely together and building or organizing

[2:05:58] strategies. Not in silos but in

[2:06:01] coordination. >> I think I should clarify are

[2:06:03] you doing that now is my question and how are you doing

[2:06:06] that? >> we are doing that in some

[2:06:08] instances as it relates to semiconductors.

[2:06:12] we have built what is called the new york smart I corridor the

[2:06:16] first time we've worked in a coordinated way across buffalo,

[2:06:23] rochester, syracuse, ithaca, and incorporating areas including

[2:06:29] the mohawk valley into that as well where we believe we will be

[2:06:33] able to build a stronger industry in the state by

[2:06:38] bringing the regions together. >> I would say as a trade

[2:06:43] association we are working with every chamber.

[2:06:48] any chambers interested in working with us please let us

[2:06:52] know we work with center state and so many chambers we would

[2:06:56] love to bring our expertise and our connections and more

[2:07:01] importantly tap into the collaborations going on

[2:07:04] throughout the state. I'm with you, we need to

[2:07:07] continue to do more and more collaboration if we are going to

[2:07:10] lift industry and help communities.

[2:07:12] >> and with the previous that testified were you aware of

[2:07:17] their programs at utica? >> we are aware of those

[2:07:21] programs we work with the school district as well as north valley

[2:07:26] community college has been the most expansive of the community

[2:07:30] colleges so far. >> and if the legislators here

[2:07:33] three priorities what would they be for us?

[2:07:38] >> sure. Well, you heard me talk about

[2:07:40] the two things that keep me up at night.

[2:07:44] and that is absolutely continuing to lean into

[2:07:48] workforce because our growth without bringing as many people

[2:07:51] as humanly possible along with us, really isn't a success.

[2:07:57] right? We can do this.

[2:07:59] we can be an example of how to holistically bring entire

[2:08:05] communities along in a way we have not been doing it before.

[2:08:09] housing. Housing scares me because we

[2:08:11] know the influx of people coming and we've watched communities go

[2:08:15] through rapid demand increases for housing and not being able

[2:08:19] to meet that demand. New york is frankly tough for

[2:08:22] delivering new housing. Our communities have a lot of

[2:08:27] say. The processes take longer here.

[2:08:30] and when we know we have an urgent need, we need to be able

[2:08:35] to streamline that process as much as possible.

[2:08:39] particularly, we think, in providing not only market rate

[2:08:43] housing and affordable housing but housing in a workforce space

[2:08:47] and they may need to be supports for the develop the of that

[2:08:51] housings, strategies we have been working on.

[2:08:54] and the third thing you will hear me continue to talk about

[2:08:57] is, in fact, our ability to take advantage of the momentum that

[2:09:02] we have in our region, spread it out further.

[2:09:06] but also make sure we can perpetuate it invest in supply

[2:09:12] chain companies and people starting up new companies and,

[2:09:15] yes, supporting our existing small businesses by helping them

[2:09:18] tap into the growth areas that are here.

[2:09:21] those are my top three. >> I would say that power and

[2:09:25] people are going to be necessary.

[2:09:27] we talked about workforce but having enough natural gas and

[2:09:31] electrons we have investment coming but the industries need

[2:09:35] electricity and natural gas. We need all the above approach.

[2:09:39] we talked about people, energy, I think keeps me up at night as

[2:09:43] well. I think we need to make sure

[2:09:45] that this is a place that sort of I will call it speed to

[2:09:51] delivery. We need to get our approvals

[2:09:55] done and move forward quickly because the industries existing

[2:09:57] as well as those coming here really need to be able to move

[2:10:02] quickly. And let's create continue to

[2:10:05] create and advance an environment of being even more

[2:10:08] focused on growth. New york state has this

[2:10:12] opportunity to be a growth state again to have an influx of

[2:10:15] population we can see a quarter of a million people move here.

[2:10:21] let's be growth communities and the focus of the state on that

[2:10:25] would help. >> thank you.

[2:10:31] >> good morning. Thank you.

[2:10:36] it is clear we need workforce development and have

[2:10:39] coordination between the industries I have experience in

[2:10:42] utica and lean in new york which I believe is in rome the

[2:10:46] syracuse area. And though I represent the city

[2:10:50] I care what happens across the state.

[2:10:52] you have my full support on trying to fast high speed rail

[2:10:57] makes sense industrial rail and focusing on power infrastructure

[2:11:01] is key for our manufacturing industry.

[2:11:03] with that said I want to make sure I want things to be made in

[2:11:07] new york but I've seen a lot of concerns about the tariffs at

[2:11:11] that time are squeezing some of our manufacturing industry.

[2:11:13] the reality is there are some parts and pieces of our supply

[2:11:18] chain we can't make here in new york.

[2:11:21] we have to import from other areas.

[2:11:24] and how simple it can be I love cool ranch doritos and I laugh,

[2:11:31] no seasoning on the chip. And I saw that mccormick's is

[2:11:36] in pennsylvania one of the top seasoning companies is facing

[2:11:41] $140 military riff issue because spices have to be imported from

[2:11:45] other countries. And I'm concerned about

[2:11:49] businesses like medical supplies.

[2:11:51] a lot of those components are made in india, and pakistan and

[2:11:56] we manufacture it here in new york.

[2:11:57] I'm worried about aerospace, indian corporation and alloyed

[2:12:03] steel. These are great companies that

[2:12:07] are hiring new yorkers but are being squeezed.

[2:12:10] what can we do to help them? I agree we need to be less

[2:12:15] regulation and need how we can help our businesses how do we

[2:12:19] protect them from the tariffs that are hurting the small and

[2:12:23] medium sized businesses? >> I think it's a challenging

[2:12:26] time because of the uncertainty with the companies not knowing

[2:12:29] what will the tariff people and how long will it exist.

[2:12:33] I think as communities we need to support these industries with

[2:12:38] complicated supply chains. And the reality is that is going

[2:12:41] to be the case for quite a while.

[2:12:43] we are seeing some relocation into our state obviously within

[2:12:47] the country, too, based on what is transpiring but it is an

[2:12:52] uncertain environment we are trying to help companies sort

[2:12:56] through their supply chains they have to make individual

[2:12:59] decisions and help them find as partners in the community in new

[2:13:04] york state find suppliers within the country that they can shift

[2:13:07] some of the production to. But it's going to be

[2:13:11] complicated. And we were all hopeful we

[2:13:13] settle down and know more of the landscape and I'm not sure we

[2:13:19] do. It's challenging.

[2:13:20] >> how do you do your forecasting?

[2:13:22] trying to build forecasting for micron.

[2:13:25] you don't know what your copper wire is going to cost you a year

[2:13:28] from now and it can throw off any major production or

[2:13:33] manufacturing. It's unfair to businesses across

[2:13:36] not just new york but across the country.

[2:13:39] >> very challenging. >> thank you, chair.

[2:13:46] the bulk of my question is directed to you, but you are

[2:13:55] both comment on it. Back to your legislative

[2:13:58] breakfast a year ago this month three businesses present, all

[2:14:02] three very well established new york state businesses.

[2:14:05] two of the three said they would no longer expand in new york the

[2:14:09] third one, the jury was still out.

[2:14:14] I'm asking for you to comment on the ease with which businesses

[2:14:22] can coordinate with the state for all their development needs

[2:14:26] and growth? I want to specifically say one

[2:14:29] thing. I remember one of them, it

[2:14:33] struck me and I almost have the guy's words memorized because it

[2:14:37] was so bad. He said you know when we look to

[2:14:40] expand in inalienable, we make one phone call and 20 people

[2:14:45] call us back all offering power, utilities, shovel ready sites,

[2:14:51] labor, et cetera. We try to make that phone call

[2:14:54] in new york, we've got to call 20 different numbers nobody can

[2:14:58] make any decisions and it is a loop that we don't have time and

[2:15:03] resources to engage in. We can't do it anymore and we

[2:15:06] are not going to. With that level of difficulty

[2:15:09] that our own businesses are making these decisions to expand

[2:15:15] outside of the state, do you feel confident that we can

[2:15:23] reduce these egregious burdens on our businesses in this state?

[2:15:28] >> I'm of the opinion we need to make continued improvements in

[2:15:33] the operating systems we have. I do know that we have lots of

[2:15:36] members who would like to continue to expand here and we

[2:15:40] need to be sensitive to that. There are other challenges as

[2:15:44] businesses will acknowledge in other states related to power.

[2:15:47] it is not easy to get electrons in inanna or central new york.

[2:16:09] we are competitive to get micron to come.

[2:16:13] I can give you three dozen organizations that are growing

[2:16:17] and some are pausing because they are sorting out tariffs and

[2:16:21] the impact. We need to do better.

[2:16:23] at the same time they can be competitive.

[2:16:25] >> sorry to cut you off. I got your response and the

[2:16:29] essence of time. Energy.

[2:16:31] are you advocating and do you feel like the state is listening

[2:16:34] to our need for nuclear power? >> I do.

[2:16:37] I think the advanced nuclear summit recently indicated a sea

[2:16:42] change in the opportunity to do advanced nuclear and there is a

[2:16:45] sea change looking at all the above strategy let's have

[2:16:49] natural gas. I do think there's been a shift

[2:16:53] and I give many people the credit for looking at all of our

[2:16:57] needs things changed since 2019. Let's change to an all of the

[2:17:02] above strategy. >> I want to reiterate I can

[2:17:04] tell you something we as an organization have been urging

[2:17:07] and we've seen just a sea change in terms of attitude towards

[2:17:14] nuclear in the last probably three years.

[2:17:18] definitely in the last five years in the state.

[2:17:20] I would now say certainly what we are hearing from folks in the

[2:17:25] industry, new york is leading into --

[2:17:28] leaning into the possibility of new nuclear really at a level

[2:17:33] that is on par with maybe a handful of states nationwide.

[2:17:39] really becoming very supportive. >> wonderful.

[2:17:41] thank you. Good news.

[2:17:43] thank you, gentlemen. Thank you.

[2:17:46] >> thank you to you both for being here.

[2:17:49] this one is probably goes to randy.

[2:17:54] I represent 8021 on long island and I recently went to a

[2:17:59] solution workforce solution summit.

[2:18:04] and we heard from a number of people but john was one from the

[2:18:09] new york state innovation summit.

[2:18:11] and what was really interesting is that he spoke about the wide

[2:18:18] range of opportunity in the manufacturing industry on long

[2:18:22] island it's like a best kept secret because most of the room

[2:18:26] did not know that. He said it's difficult getting

[2:18:31] school districts to embrace this it's also difficult to get

[2:18:35] parents to embrace it because the parents are I iting the kids

[2:18:38] go to the four-year college and that route.

[2:18:42] he spoke of the great opportunity right on long island

[2:18:45] and I know there's opportunity throughout the state.

[2:18:48] but he expressed like that there needs to be much more

[2:18:51] partnership outreach to bring this to the forefront so

[2:18:56] students in high school or maybe people in a career that is not

[2:19:01] going anywhere can know about this outlet.

[2:19:05] I wondered you're central new york do you find that similar

[2:19:08] situation across the state in your area?

[2:19:10] or is it different? And what do you suggest we do

[2:19:14] about that? >> I'm glad you brought this up.

[2:19:17] those are considerable challenges throughout the state

[2:19:19] and we work with our long island partners and huge opportunity on

[2:19:25] long island. Manufacturing is the largest

[2:19:27] industries in long island. So the way we've tried to tackle

[2:19:31] it and we continue to work on this is to get students into

[2:19:34] places of work. So this will put close to 400

[2:19:40] individuals, students from high schools from 11 school districts

[2:19:45] into factories and facilities to see these great jobs that are

[2:19:48] high-tech and pay well. You can get right out of high

[2:19:51] school through an apprenticeship path there are different ways to

[2:19:54] do it and I love about registered apprenticeships you

[2:19:57] can start at 18. One finished he is 71.

[2:20:00] there is no reason why you can't start at any point to be in the

[2:20:06] great paying long-term jobs we have to work with school

[2:20:09] districts and we learned this and we brought the business and

[2:20:14] been a part of us for 20 we need more outreach to schools.

[2:20:19] if students can see places and spaces and go home and tell

[2:20:22] their parents I like that job and this is my path.

[2:20:25] by the way it doesn't preclude me from going to college but

[2:20:30] maybe I learn and earn first and I don't have a college debt.

[2:20:33] I do think we need to do more. We won't get there if there is

[2:20:40] not awareness about these jobs from parents, students and

[2:20:43] community at large, the dirty dark places and spaces that once

[2:20:49] manufacturing do not exist anymore at all.

[2:20:51] we need to change people's perceptions.

[2:20:54] >> thank you. >> thank you both for being

[2:20:59] here. I commend you guys for doing

[2:21:01] what you are doing it's important we get kids back to

[2:21:05] wanting to go back to work. Like we said regarding schools

[2:21:09] it starts with that and giving them some type of incentive and

[2:21:14] career path where they could see themselves working in

[2:21:17] manufacturing or into jobs that probably doesn't look good

[2:21:21] enough on social media. Because I do think it is a

[2:21:25] cultural issue that we need to get back to and show them why

[2:21:29] this is good for them and good for the community and affordable

[2:21:33] for them in terms of affordability the state there is

[2:21:36] an issue in new york state of affordability.

[2:21:39] and a lot of kids want to stay around their parents or

[2:21:43] communities and they want to ensure themselves and the jobs

[2:21:47] are there but there isn't enough kids are not seeing themselves

[2:21:54] working. I know there's programs in place

[2:21:57] that we can try to work with. But I do think we have to get

[2:22:01] back to the schools and to the culture and trying to have them

[2:22:06] see themselves do just build a family and life for themselves

[2:22:11] around these types of jobs if it is a small business or

[2:22:15] manufacturing or industries or trucking or distribution or

[2:22:19] warehousing and there are so many.

[2:22:20] if they don't see themselves doing that it will be difficult

[2:22:24] for the businesses to hire them. Do you see any types of ways

[2:22:29] maybe on a more in terms of social media, in terms of the

[2:22:34] way to implement that kind of idea to make them see that early

[2:22:39] on when they are sophomores, juniors, seniors in high school?

[2:22:43] >> I think it starts earlier than that.

[2:22:48] and I will say one of the things that we found perhaps most

[2:22:54] impressive in the syracuse area, I think you heard about it from

[2:22:57] the folks at the utica school district earlier today is career

[2:23:02] and technical education programming.

[2:23:05] it really does provide a different way for folks to

[2:23:09] learn. Certainly puts them on a path

[2:23:12] where if they choose to go directly into a career, they are

[2:23:16] able to do that. And even if it doesn't, in many

[2:23:20] cases these are credit earning paths which will shorten the

[2:23:23] time they are in college. And let them get that degree

[2:23:29] faster. It tends to be more experiencal

[2:23:31] more hands on learning. In syracuse there are more

[2:23:35] connections to business while the kids are in school.

[2:23:37] so if they were in utica, what kid knows what a is if his

[2:23:44] father doesn't work there or the mother doesn't work at ttm.

[2:23:48] how do you know what that is? So, I think, you've got those

[2:23:55] challenges. But the other thing that is

[2:23:59] perhaps most impressive about what we're seeing right now

[2:24:03] happening in cte programming, is that it is just much more

[2:24:09] innovative than what we've seen in traditional classroom

[2:24:14] settings. And certainly in syracuse and I

[2:24:16] suspect it would be the same in school districts throughout the

[2:24:20] state, the graduation rate is much, much higher.

[2:24:24] and the city of syracuse kids going through cte programming

[2:24:27] are graduating at a higher than 90% rate.

[2:24:31] in an urban school district. That is saying something.

[2:24:35] so that would be the way I would approach it.

[2:24:38] and, sure, if you want to get spokes models for medical device

[2:24:42] companies or whatever, it might work on social media.

[2:24:45] but I think day in and day out kind of contacts are the best.

[2:24:50] >> I agree it starts with the hands on approach and getting

[2:24:54] business leaders and people into schools and back to kevin's

[2:24:58] point, the city of syracuse has half of the students at the high

[2:25:01] school level in cte programs. I I believe we should have

[2:25:07] student exposure to cte every high school pathway have some

[2:25:11] industry related connection. If you don't have a chance to be

[2:25:14] out in the community you don't for what the jobs look like.

[2:25:17] and that goes across the board for construction.

[2:25:20] any kind of job if you don't know what the day-to-day looks

[2:25:24] like you have not had exposure to it you won't consider it.

[2:25:29] new york state's effort and regions are working on this with

[2:25:31] state ed how do we get more career exposure while you are in

[2:25:35] high school. But I agree, we should be

[2:25:38] talking about things in middle school maybe as early as third

[2:25:42] or fourth grade. The truth is do people know of

[2:25:45] today's modern jobs and skill sets needed?

[2:25:48] they don't. >> something I believe parents

[2:25:51] should be pushing and be involved with.

[2:25:53] if you are saying we can do it that early on if it's working in

[2:25:58] syracuse that kind of implementation can work

[2:26:02] anywhere. Maybe they can see themselves

[2:26:03] early on working in that path would be great.

[2:26:10] >> thank you we appreciate it. Thank you.

[2:26:30] >> next, kari puleo and bruce hairston.

[2:26:56] >> thank you to both of you for being here.

[2:26:59] I know you represent chambers from across the state not only

[2:27:03] from your own perspective. I appreciate it.

[2:27:08] please start. >> I'm kari puleo.

[2:27:20] and this is bruce hairston. I represent the utica chamber of

[2:27:24] commerce and bruce is just down the road in rome, new york.

[2:27:28] together we represent over a thousand businesses across the

[2:27:32] mohawk valley and our role is to advocate for conditions that

[2:27:35] allow small businesses to launch, survive, grow and

[2:27:40] sustain good jobs in our region. In preparation for today's

[2:27:43] testimony, I met with over 25 businesses in anticipation

[2:27:49] talking about what we're hearing from them small businesses in

[2:27:53] every single sector of our economy, retail, healthcare,

[2:27:57] hospitality, tech and manufacturing and this is what

[2:27:59] we're hearing there is a common theme to their concerns.

[2:28:02] access to capital is their top barrier.

[2:28:06] micro businesses can not meet matching rules for state grants

[2:28:09] and loans. They see the opportunity but the

[2:28:12] up front requirements block them from trying.

[2:28:15] for solo entrepreneurs who want to have employees, the

[2:28:20] opportunities are fewer. This leads to commercial loan

[2:28:24] customers who fall prey to predatory and unscrupulous

[2:28:28] practices of merchant cash advance companies destroying

[2:28:31] small businesses everyday in our community.

[2:28:33] our programs are too complex when funds exist the number of

[2:28:38] agencies, acronyms and timelines and complicated rules are

[2:28:42] overwhelming. One small retailer told me by

[2:28:44] the time I hired somebody to help complete the forms the cost

[2:28:49] exceeded the benefit and I cannot absorb that overhead that

[2:28:54] explains why many never apply for state programs.

[2:28:57] heather of holland farms looked at state grant programs planning

[2:29:01] her second location in the syracuse area but the project's

[2:29:05] timing and stipulations meant thee could not wait for

[2:29:08] approvals. The application was so complex

[2:29:11] she considered hiring help and that is ridiculous for a company

[2:29:14] that has been in business since 1955.

[2:29:17] the project was delayed financed at a higher cost and lost

[2:29:21] opportunities for more job creation than she originally

[2:29:27] anticipated. Regulations and paperwork

[2:29:28] continue to drive costs as the number two most regulated state

[2:29:32] in the country we need to do better.

[2:29:35] rules string teams that don't have staff as health are gates

[2:29:39] from the bank of utica points out the administrative burden

[2:29:43] creases cost, limits growth and reduces the number of jobs

[2:29:48] available. Workforce and training gaps

[2:29:50] still persist. Employees can't find stable

[2:29:55] reliant workers. Apprenticeship programs are

[2:29:57] helping to meet but the capacity limits in licensing restrictions

[2:30:02] constrain how many people can enter trades.

[2:30:06] elevated owner reports training programs hit a hard cap on

[2:30:10] participants and how quickly apprentices can become licensed

[2:30:14] mechanics while demand for work remains high, the limits

[2:30:19] struggle. We also see problems with equity

[2:30:22] and geography. Micro enterprises immigrant

[2:30:25] owned shops and rural businesses face the steepest hurtles.

[2:30:32] alesha gains porter captured it because she is using her revenue

[2:30:37] to keep the doors open she has not been able to take a

[2:30:41] paycheck. That reality must guide how

[2:30:43] programs are designed. She has been in business since

[2:30:46] july of 2024 and has still not taken a paycheck but there's

[2:30:51] great things on the horizon. Bruce is going to tell us what

[2:30:54] is working and recommendations. >> thank you for having us here

[2:30:57] today. Thank you chairman buttenschon.

[2:31:01] what is working? When support is accessible and

[2:31:05] paired with technical assistance we see real results.

[2:31:09] storefront improvements, increased customer presence and

[2:31:13] targeted corridors and stronger capacity to secure long-term

[2:31:18] financing the difference is capital and navigation equals

[2:31:22] outcomes. Recommendations, practical fixes

[2:31:25] that would make a difference right now.

[2:31:29] create streamline micro grant checks under $25,000 with

[2:31:33] minimal reporting. Embedded technical assistance.

[2:31:39] fund local partners and chambers, nonprofits to help

[2:31:43] with applications, language support and compliance.

[2:31:46] enable faster disbursement, partial up front payments or

[2:31:51] small awards to address cash flow constraints.

[2:31:55] make matching flexible. Phase-in kind or reduce matched

[2:32:00] options for qualifying micro businesses.

[2:32:04] coordinating single one stop intake so businesses don't

[2:32:08] resubmit the same documents across agencies.

[2:32:12] and six, require local reporting, published aggravated

[2:32:17] outcomes for the utica rome region so we can track benefits

[2:32:21] and where gaps remain. >> the changes are not giveaways

[2:32:26] they are pragmatic if businesses cannot survive the application

[2:32:29] process or wait months for reimbursements the state loses

[2:32:33] jobs, tax revenue and investment.

[2:32:36] when I sat down with dan jones the managing director of wealth

[2:32:41] management he told me two statements.

[2:32:44] first he does not receive nor desire state financing for

[2:32:51] anything. It's the reason many of his

[2:32:53] peers moved to florida and he does not want to move his

[2:32:55] family. He fold up noting there are

[2:32:59] issues to doing business in new york state it's death by a

[2:33:03] thousand paper cuts. Too much regulation, too many

[2:33:05] departments to deal with, challenging labor laws, did he

[2:33:09] mention taxes? How about energy costs a major

[2:33:12] that inflates the cost of purchasing power for necessary

[2:33:16] goods and services for all, especially those who make less.

[2:33:21] and it reduces the services available to the public.

[2:33:26] what our new york state government has done to create

[2:33:30] the wage earner and the wealthy. >> in closing small businesses

[2:33:34] are the backbone of our local economies especially regions

[2:33:38] like our outside of new york city metro.

[2:33:40] and utica and rome we see the scars of industrial decline and

[2:33:45] the seeds of resurgence entrepreneurs launching ventures

[2:33:49] in clean energy, manufacturing retooling, downtown

[2:33:54] revitalization arts enterprises immigrant founded businesses and

[2:33:57] local retail reconnecting with the community.

[2:34:01] but to truly move the needle the state economic development

[2:34:05] programs must be purposeful and accountable and accessible to

[2:34:09] our businesses. In 20252026 budget is a strong

[2:34:13] opportunity if we ensure the dollars get into the hands of

[2:34:16] the business owner and use them effectively especially those in

[2:34:21] historically underserved and economically fragile

[2:34:23] communities. The chambers are ready to

[2:34:26] partner to host application clinics, deliver technical

[2:34:29] assistance and ensure state dollars create jobs that the are

[2:34:33] intended for our community. Thank you again for this

[2:34:36] invitation and for your stewardship of new york's

[2:34:40] economic future. We look forward to answering any

[2:34:43] questions that you may have for us.

[2:34:45] I appreciate it. >> okay.

[2:34:47] thank you. Let me ask, I know you said that

[2:34:55] everything is too difficult filling out the paperwork and

[2:34:59] doing all that. But, you know, in --

[2:35:04] there is a small business development centers.

[2:35:08] aren't they utilized to help with this?

[2:35:11] they work one-on-one with businesses to do these things.

[2:35:15] >> we consistently refer businesses to the sbdc they are

[2:35:20] a wonderful partners but they have limited capacity as well.

[2:35:23] the amount of advisers they host within their centers does not

[2:35:27] meet the demands of what is out there and available in terms of

[2:35:31] state dollars and the navigation of the process.

[2:35:34] we are deeply in tuned with what is going on and meet with our

[2:35:39] state partners regularly. They come in for roundtables

[2:35:43] educational events but there is still a gap between the amount

[2:35:45] that is needed and what is available.

[2:35:50] >> okay. Is there some way we can

[2:35:57] identify what the I don't know duplicative or other burdensome

[2:36:05] things that businesses have to do?

[2:36:09] I remember this was a longtime ago, probably between 2008 and

[2:36:16] 2010 where there was a commission that went around the

[2:36:19] state looking to eliminate, and they couldn't find that many

[2:36:23] things. People didn't want any

[2:36:27] regulations or they didn't want to tell us about anything else.

[2:36:31] that didn't really accomplish a heck of a lot.

[2:36:35] >> one of the recommendations that we have is using empire

[2:36:38] a.I. To review and reduce the amount of regulations that are

[2:36:44] duplicative and looking at the policies we have within our

[2:36:47] state to begin to streamline things.

[2:36:51] >> okay. And I will just say this for

[2:37:00] everybody up here, trust me, the amount of time it takes to get

[2:37:05] money out the door any grants that are given is amazing.

[2:37:11] and it has makes us feel almost as bad as the people who are

[2:37:17] waiting for the money. >> yeah.

[2:37:19] one of the organizations I talked to was the bake of utica

[2:37:23] who manages 300 nonprofit accounts and the consistent

[2:37:28] problems they've had to deal with because of the delays in

[2:37:31] funding. A lot of these grants that go to

[2:37:35] nonprofits are small and don't have the capacity and overhead

[2:37:38] to wait, three, six, nine months over a year for reimbursement of

[2:37:43] services. >> and many other challenges

[2:37:45] when you have to match coming up with that money.

[2:37:49] many businesses sometimes have to take out a loan, pay the

[2:37:52] interest on that. Expend the funds and again you

[2:37:56] are waiting three to six months. In some cases to get reimbursed.

[2:38:01] there is a gap in-between I want the grant money I have to borrow

[2:38:06] to pay for it. I know I'm getting reimbursed

[2:38:09] but the timing of me getting reimbursed is going to put a

[2:38:14] hinderance on my business. Changes and obstacles there.

[2:38:18] >> yeah, that happens. >> I mean, I can understand that

[2:38:29] there is a lot of frustration especially about the

[2:38:34] reimbursement process the fact that you have to spend money to

[2:38:37] get it is a problem for especially the smallest

[2:38:42] businesses. But I don't know they have not

[2:38:46] allowed us to change that yet. So we'll see.

[2:38:52] okay. >> again, thank you for being

[2:38:57] here. And I appreciate your clear and

[2:39:05] concise ideas as well as solutions they are very

[2:39:09] important. So how many businesses do you

[2:39:12] hear partnering with nonprofits? I think my colleague eluded to

[2:39:18] the difficulty of private funding.

[2:39:21] but looking to our nonprofits for a lot of answers?

[2:39:24] >> well, I can as one example they are reaching out and doing

[2:39:30] a lot of work for not-for-profits as far as

[2:39:33] helping with finances, the bookkeeping the management

[2:39:37] services I think that is important.

[2:39:40] so I think that is helpful for small businesses they are doing

[2:39:44] it because they know the struggles of small businesses.

[2:39:48] as a chamber director I'm always trying to connect my members

[2:39:51] with entities like the hr firms and bookkeeping companies

[2:39:55] because they don't really think about those things as much and

[2:40:00] sometimes they get caught up in tax issues we do workshops to

[2:40:05] get that information disseminated to small business

[2:40:08] owners and they do a lot as well in utica.

[2:40:11] >> what we see is that small business owners wear multiple

[2:40:16] hats to manage and administration alone for some of

[2:40:20] the paperwork for some of the grant programs is beyond their

[2:40:25] capacity to actually run their business.

[2:40:27] so you are not seeing growth because to hire somebody to

[2:40:31] manage all of the paperwork and to streamline those processes

[2:40:34] could be make much more efficiencies where you can see

[2:40:38] future growth. >> and I can appreciate that as

[2:40:42] the hosting of roundtables I know my colleague talked about

[2:40:45] how can we connect. But most of them are doing

[2:40:49] everything. So it's do we do it at 8:00

[2:40:52] a.m.? 8:00 p.m.?

[2:40:54] they are every part of their small business.

[2:40:57] so it is a challenge and if we could streamline it with your

[2:41:02] comments here. And I know, bruce, rome faced a

[2:41:06] tornado recently. >> absolutely.

[2:41:07] >> and that is where you came up with the idea of the minimum of

[2:41:11] just the 25,000 dollar kick and I know your mayor and the city

[2:41:16] has just approved something similar for small businesses

[2:41:21] apply. And it is an easy form, right?

[2:41:23] it is a quick? >> yeah, it's simple its a

[2:41:28] survey what your intentions are for your business and gives

[2:41:33] background for your business and asks for tax and dba program and

[2:41:39] it is a micro grant program the city is giving them money from a

[2:41:45] cbg fund it is a small start up thing but 100 grand to start and

[2:41:51] the mayor's goal is approve three businesses he wants

[2:41:55] something substantial. 2500, 5,000 doesn't impact the

[2:41:59] small business. For his first pilot program he

[2:42:02] is looking at three businesses maybe 35,000 apiece.

[2:42:07] and really make significant impact.

[2:42:09] and also it has to do with hiring maybe employing

[2:42:14] part-time, full-time person. But it's job growth included.

[2:42:18] I think that is I astart. It's important everyone has

[2:42:22] access. Our role was to put it out to

[2:42:24] our business community and give everybody a fair chance to apply

[2:42:27] for it. Those are the things I like to

[2:42:31] see more of. I think we can manage it.

[2:42:33] we have a lot of partners who have experience managing grants

[2:42:37] and doing the proper background checks and make sure there is no

[2:42:41] fraud. We've done that when we had our

[2:42:44] business assistance fund when we did that with the tornado.

[2:42:47] we got together with the city. We reviewed applications and

[2:42:51] maxed out at 2500. The city would kick in the other

[2:42:55] 25 and it was a max of 5,000. And we helped out 62 small

[2:43:01] business owners. It was grant funded and money we

[2:43:04] gave. The good thing it makes me proud

[2:43:07] of our region and our area. Most of our bigger businesses

[2:43:11] donated to the chamber to help with that part of it.

[2:43:14] and then the city had money from the state.

[2:43:16] and things to kick in the rest. The $5,000 helped them with

[2:43:21] putting up panels to cover windows or 5,000 on the

[2:43:26] insurance deductible. I know the ability for us to do

[2:43:29] those things are out there partnering with our

[2:43:33] municipalities our states or idc's in our communities.

[2:43:40] >> what we've heard the common theme and you talk about

[2:43:45] reporting and assessment, do you see that as a challenge also

[2:43:49] with many of your businesses spending more time trying to --

[2:43:54] >> again it's the paperwork and the follow-up not that there

[2:44:00] shouldn't be payment work and follow-up that is necessary.

[2:44:02] but anything we can do to streamline that so the

[2:44:07] reimbursement comes in sooner that is part of it.

[2:44:10] is the follow-up paperwork process reporting is so intense

[2:44:14] for some of our smaller businesses.

[2:44:17] we're talking about 10 employees and people are managing multiple

[2:44:21] hats. They just forego the funding

[2:44:24] because it eliminates the opportunity for them to grow

[2:44:27] because they cannot hire somebody to manage the

[2:44:29] paperwork. >> thank you.

[2:44:36] >> good afternoon. I guess I had confusion and I

[2:44:42] realized the manufacturing and this is rome and utica.

[2:44:47] I will pushback a little bit on your testimony.

[2:44:51] in reference to I think the gentleman moving down to

[2:44:55] florida, I get it, right. I ran my small business I've

[2:44:59] been on your side of the table where I represented industry and

[2:45:02] you want tobies oriented on this side of the aisle on this podium

[2:45:07] we have to represent the people. And so if we are going to try to

[2:45:10] have a business industry that wants to pay below a living wage

[2:45:14] we are not doing our job. If you look at the major, most

[2:45:18] people cannot afford a one bedroom apartment in upstate new

[2:45:23] york. Now imagine where I live in new

[2:45:25] york city where it's almost impossible.

[2:45:27] we have to make sure that new yorkers who are hard-working new

[2:45:31] yorkers have a living wage. That does not mean as a state we

[2:45:36] can't streamline our business practices it does not mean we

[2:45:39] can't look at our red tape. New york needs to become more

[2:45:44] efficient from a government standpoint.

[2:45:46] but it will be hard to go back to the people of new york when

[2:45:51] acc but c.e.o. Pay as accelerated at such a rate and

[2:45:56] major has moved at a snail's pace and we have to lift it from

[2:46:03] above middle and down to make new york affordable in some

[2:46:07] realm. >> I think when we heard

[2:46:09] business owners complain about major we are thinking about the

[2:46:13] entry level jobs we had as a teenager.

[2:46:16] the jobs that gave you a skill set that got you in the door

[2:46:21] that taught you to be on time and listen to your manager those

[2:46:24] entry level jobs where you are not supporting a household and

[2:46:27] family and how that increases the cost of goods and services

[2:46:31] for everybody. >> so my colleague brought up

[2:46:34] the case young people, 18, 19 and 20 and and there's 18 and

[2:46:41] 19-year-olds supporting themselves.

[2:46:42] how do we separate that from 18 and 19-year-olds versus the 18

[2:46:47] and 19-year-olds living in their parents' house.

[2:46:49] when it comes to regulations and laws it creates a complex

[2:46:54] situation where if we try to cut out these specialized that we

[2:47:02] cut the little caveats out and that is creating the red tape

[2:47:06] because you need to have the compliance aspect to say, oh,

[2:47:10] worker a and b qualify for the wage where worker c and d does

[2:47:16] not and creating the same issue you are bringing to us where we

[2:47:21] need to streamline the red tape. >> a perfect example I was the

[2:47:24] director of the ymca before I took this position we knew the

[2:47:28] major was going up and we tried to budget for it as a

[2:47:33] not-for-profit is difficult it is a thin line.

[2:47:35] I made $100 this year or I'm in the red.

[2:47:39] the thing that was interesting is when I left there, after $15

[2:47:45] I had lifeguards who were 15, you can guard.

[2:47:51] and they were negotiating with me on pricing.

[2:47:54] you know, I can go to verona state park and make $22.

[2:48:00] wow we've turned the corner here.

[2:48:02] I have somebody who hasn't worked a lick in their life and

[2:48:05] they are negotiating with me. I just tell you that because

[2:48:09] this is wow it's difficult. And I looked you had to earn

[2:48:14] your way and progress and I'm sure most of you looked at it

[2:48:19] that way, too. And I said you go ahead and do

[2:48:23] that she came back and asked me if there was an opportunity for

[2:48:27] her to work. The major really does have a

[2:48:30] significant impact on small businesses and not-for-profits.

[2:48:34] I can't speak for the for-profits because I know the

[2:48:38] big banks and all that, they do well and they bring in revenue

[2:48:42] I'm not saying they are not impacted but for the small

[2:48:45] business owners it's really making a significant difference

[2:48:49] in how they operate. That's my point.

[2:48:52] I understand where you are coming from for sure.

[2:48:55] regulations shouldn't be the reason we have it keep everyone

[2:48:58] in an even playing field. Thank you.

[2:49:02] >> thank you. >> thank you, chair.

[2:49:07] thank you both for being here. My question is simple.

[2:49:11] this is anecdotal from feedback I've gathered in talking to

[2:49:16] people business owners and it's about the grant process itself.

[2:49:20] I'm not talking not-for-profit, but for-profit entities mostly

[2:49:27] agricultural. And the feedback is consistent.

[2:49:30] and it goes like this... I can't allocate 40 hours of

[2:49:36] personal labor to a $10,000 grant.

[2:49:39] and both of you have eluded to this.

[2:49:42] and I'm just curious if you hear the same thing?

[2:49:45] where businesses are just saying it would be great but it's so

[2:49:50] upside-down. >> it is.

[2:49:51] >> and the burden of the burden of documentation that a business

[2:50:00] is required to provide is the biggest discriminator for people

[2:50:06] and businesses being able to utilize these grants.

[2:50:10] I'm curious if you're seeing the same?

[2:50:14] >> yes. I heard that time and time

[2:50:16] again. The regulations the paperwork

[2:50:18] the documents that exist within the state.

[2:50:21] you submitted it for you already have that information why am I

[2:50:26] submitting it again? Across different application

[2:50:30] portals consistently. >> and even for the minority

[2:50:33] women owned businesses I've sent people on the website and I

[2:50:38] follow-up a couple weeks later and I don't have time to do

[2:50:42] that. I can't navigate that stuff.

[2:50:45] it's time consuming and I understand the detailed

[2:50:48] information that is needed or required.

[2:50:50] because I know everyone is afraid somebody putting in

[2:50:54] information or defrauding the state, but they won't do it and

[2:50:59] it's frustrating for me because I think it is a benefit once you

[2:51:02] get through the hurdle. But, again, it requires time and

[2:51:06] resources they can't allocate. >> so have you seen in your

[2:51:11] careers and evolution where it was ever more efficient, easier,

[2:51:17] business friendly, for businesses to engage in these

[2:51:22] opportunities to where we are today?

[2:51:24] or no? >> as the director of the ymca I

[2:51:30] wrote a number of grants from foundations we have in our

[2:51:33] community. The process is a lot easier.

[2:51:36] and it is a lot informal but they still require basic

[2:51:42] information. I've also been involved in state

[2:51:44] grants as far as getting building funds and things.

[2:51:49] I've worked with my c.e.o. And we have to sit in the office

[2:51:52] together and take weeks the a time to put the information

[2:51:56] together that is how long of a process it is.

[2:51:59] it definitely makes a difference in regards to the types of

[2:52:02] grants you are going for. State grants are very

[2:52:06] challenging. Federal grants are even more

[2:52:09] challenging than the state. You guys have something to hang

[2:52:12] your hat on. >> thank you.

[2:52:23] >> thank you for taking the time to be here today.

[2:52:26] my question has to do with the people that they hire a small

[2:52:29] business or any type of business that wants to hire to get the

[2:52:34] grants whether federal or state grants they have to hire

[2:52:37] somebody to fill out the paperwork.

[2:52:39] especially if you are looking for sba loans it's impossible

[2:52:44] without having someone as a mediator between you and the

[2:52:49] sba. Is there any type of regulation

[2:52:51] on these people who are hired? Or how much they can charge and

[2:52:56] fees or anything like that? >> I don't believe so.

[2:52:59] a lot of times it is a set fee. We never say that you should

[2:53:06] offer a percentage of a grantor something like that a concrete

[2:53:10] fee is best. You see malpractice where you

[2:53:14] see people who write grants and want a percentage of the grant

[2:53:18] versus this is the fee to do the work.

[2:53:20] >> does it help you if there's somebody to mediate between

[2:53:24] yourself and the sba? >> I think it would be helpful

[2:53:29] to business owners. >> I definitely think so.

[2:53:32] right now I get a lot of the calls and I would love to help

[2:53:37] but we're a two-person office. So even though I have grant

[2:53:41] experience my marketing coordinator has grant writing

[2:53:44] experience we don't have the capacity to sit down and go

[2:53:47] through grants. I met with a couple yesterday

[2:53:51] and they are trying to get the erie canal in rome back up and

[2:53:56] running a not-for-profit now. And we can give you a list of

[2:54:01] grants. I will try to provide a grant

[2:54:04] writing class to help our business owners out that is

[2:54:07] something I plan on doing in the near future.

[2:54:09] they are willing to try and take a stab at it. Willing to take

[2:54:13] a stab at it but it's a lot if you haven't done it before.

[2:54:17] that's all we can do is to try to give them information.

[2:54:20] but if there were a pox, somebody we could staff to

[2:54:23] assist with that, that would make a tremendous difference in

[2:54:25] regards to the paperwork for those types of things.

[2:54:27] >> it could be very convoluted for what I understand, depending

[2:54:31] on the type of and how much money.

[2:54:33] it could be millions of dollars in sba loans.

[2:54:35] >> even a part-time position would be beneficial.

[2:54:40] I'm trying to figure out ways to hire someone part time so we can

[2:54:45] help with some of those things. I think it's critical to our

[2:54:48] businesses to have access to some of those programs that esd

[2:54:53] offers and right now I can send them a flyer but they look at

[2:54:57] it, like I don't really understand how I go about this

[2:54:59] and again we can only put so much time into giving that

[2:55:03] assistance as a two-person office.

[2:55:05] >> I think when you are talking about equity and growth, your

[2:55:10] mwbe businesses that have maybe never been aware of the process

[2:55:14] or entered versus our legacy companies and the awareness.

[2:55:16] so if you are looking to grow companies, it's that kind of

[2:55:21] position that could assist those smaller companies and growth.

[2:55:24] >> another question regarding minimum wage.

[2:55:27] are you spoking to a lot of businesses affected by it or the

[2:55:31] chance that there might be another increase in minimum wage

[2:55:34] at the state level? >> yeah,.

[2:55:40] >> I guess I hit on a... >> I mean my background, I used

[2:55:46] to be a union representative. So I come from different places

[2:55:49] where I see the value in the increases and the minimum wage

[2:55:54] increases and as a not-for-profit, I saw the

[2:55:57] effects of how it significantly impacted our budget.

[2:56:00] so as a small business owner, my father was in new jersey, so I

[2:56:08] feel like I have a good rant of everything going on.

[2:56:12] I guess it's the val balance, you know.

[2:56:16] how do you go to increase? What-- and are you doing the due

[2:56:20] diligence to study the real impact on the small business

[2:56:24] owner and how that's going to affect?

[2:56:27] I know no one here wants to put anyone out of business.

[2:56:30] I know that. I don't know you personally but

[2:56:32] I don't think you do your jobs looking to put people out of

[2:56:35] business or hurt anyone and it's a tough job to balance.

[2:56:39] people need to live comfortably and new york is not a cheap

[2:56:45] state and sometimes the businesses don't do it or won't

[2:56:46] do it on their own. You can look at the south where

[2:56:49] people are still making 7:-- 7 clinton 50.

[2:56:55] people don't know that in new york.

[2:56:57] if you go somewhere else, the minimum wage is half the price.

[2:56:59] I don't know if I answer answered your questions because

[2:57:03] I struggle with it. >> you did.

[2:57:05] the questions in the south the businesses are closing down as

[2:57:09] much as the states that are increasing minimum wage.

[2:57:12] that's something we can look at also.

[2:57:14] >> absolutely. >> thank you.

[2:57:18] >> thank you. Good afternoon thank you both

[2:57:20] for being here. I just wanted to speak about the

[2:57:26] empire a.I. I was at the new york business

[2:57:29] council conference recently and a lot of concerns and challenges

[2:57:35] were echoed there. Ryan silva, head of the

[2:57:39] new york state economic council mentioned new york state has

[2:57:43] 17 million words in regulatory language.

[2:57:47] so his suggestion was using empire a.I. To vastly like

[2:57:53] reduce duplicative language and outdated regulations that we no

[2:57:57] longer that no longer apply I wondered on top of that is there

[2:58:03] any other avenues that you would recommend be looked at?

[2:58:07] >> first we wholeheartedly recommend that solution but I

[2:58:10] think talking to business owners and say, literally, what is one

[2:58:14] thing, that's what I ask them one question.

[2:58:18] what is one thing if you were talking to the state you would

[2:58:20] want them to know about your business and then they can start

[2:58:23] to give you solutioned, right so really looking to business

[2:58:26] leaders for solutions, which is what, in five minutes we tried

[2:58:30] to come here today and do. >> I think that's great.

[2:58:38] and one new regulation or suggestion that would be helpful

[2:58:41] is the required local reporting so everyone knows where they

[2:58:45] stand, what is due, what is not due, where there is disparity.

[2:58:48] so I think that is a great idea. And stars the funding local

[2:58:56] partners, chambers and such, I agree with that and I had

[2:59:01] suggested that years ago. I represent a district in long

[2:59:04] island hampstead, the largest town in america had a great deal

[2:59:11] of funding that got funded from the federal government from

[2:59:14] covid so one of my suggestions to the town of hampstead

[2:59:17] supervisor was take some of that money and distribute it to the

[2:59:21] chambers and some of the local businesses, have some kind of

[2:59:24] maybe an application process to distribute money that could

[2:59:28] really go a long way. That was ignored but I wondered

[2:59:35] do you have any-- have you, beside looking for state funding

[2:59:39] have you looked at local government funding in your areas

[2:59:43] to see if local government would provide any funding for local

[2:59:50] chambers and non-profits? >> I think we have been in the

[2:59:53] conversations recently. I want to point out one thing

[2:59:56] where you are talking about information disbursing out into

[3:00:00] communities across new york state, every region,

[3:00:03] every community is different. Every chamber is different.

[3:00:06] hope knight this morning referenced how many times they

[3:00:10] disburse their information through chambers of commerce.

[3:00:12] you heard bruce have two staff. So what how does that

[3:00:18] information, if the state is relying on chambers to disburse

[3:00:23] information to a two-person staff versus centerstate c.e.o.

[3:00:27] here, they have upwards of 50 staff, you are going to have a

[3:00:31] very different outcome on the information getting to its

[3:00:36] intended recipients. >> that's a very good point.

[3:00:38] thank you. >> just waned to circle back

[3:00:44] with you quickly, bruce, you were hiring a life guard and you

[3:00:49] you said there was an toppings work at a state park and there

[3:00:55] was already a discrepancy. So I heard you we'll work on

[3:01:02] that we had to pay the 15 and the state bumped up because they

[3:01:06] were having challenges. They were offering more money

[3:01:14] and I said well, I guess you should go there we are already

[3:01:20] paying top of the limit because we had to so that was kind of

[3:01:24] the conversation and then she wanted to negotiate with me

[3:01:27] about the prices. >> and I just see that parallel

[3:01:30] with our small businesses. Is that they feel so we are

[3:01:37] conscious of that. >> I appreciate you because when

[3:01:41] you are home, you have a lot of forums, you reach out to small

[3:01:45] businesses and reach out to kerry and I, and I appreciate

[3:01:49] you engaging us and listening to us.

[3:01:51] that's one of the reasons we are down here.

[3:01:53] thank you for that. >> all right.

[3:01:55] well thank you very much. Appreciate the input.

[3:02:08] have a nice day. >> all right, you, too.

[3:02:12] >> now for everybody else who has been waiting, the final

[3:02:16] panel. >> no, we have two more.

[3:02:20] >> two more? >> good afternoon everyone and

[3:03:25] thank you. We sincerely appreciate you

[3:03:28] being here this afternoon and listening this morning.

[3:03:35] so I will turn it over to my colleague.

[3:03:38] >> now we just want you guys to get going, so who will start?

[3:03:44] do you want to go way over here? >> thank you chair stirpe and

[3:03:56] buttenschon. I appreciate you having us here

[3:03:58] today. I am ashley ranslow, national

[3:04:04] director for the national federation of independent

[3:04:06] businesses. We represent 11,000 businesses

[3:04:08] across new york. Our members are the traditional

[3:04:10] small businesses you think of, right?

[3:04:12] your local restaurants, dry cleaners, hardware store, small

[3:04:15] manufacturers, small farms, anything you can imagine bee

[3:04:19] probably represent somebody in that industry or in that sector.

[3:04:25] and it has been talked about a lot today but I want to

[3:04:27] highlight a couple of things here.

[3:04:29] there are close this 500,000 small businesses in the state of

[3:04:32] new york. They employ approximately 40% of

[3:04:33] the state's private sector workforce which is over

[3:04:39] 3 million new yorkersment a staggering 98% of new york's

[3:04:45] businesses have fewer than 100 employees so new york state's

[3:04:49] economy is driven in such a large part by small businesses a

[3:04:54] strong vibrant small business ecosystem is essential to the

[3:04:58] state and 67 cents of every dollar spent as a small business

[3:05:01] is reinvested in the local community, which is why they're

[3:05:05] so important across every community in new york state.

[3:05:12] unfortunately post-pandemic, there continues to be immense

[3:05:14] financial challenges for small businesses.

[3:05:16] you've heard about them today. Empire state development puts

[3:05:19] out a small business report every year about how small

[3:05:24] businesses compare from previous years and while since 2019 we

[3:05:27] have seen a slight percentage growth in small business, it's

[3:05:34] very small and it lags other parts of the country and there

[3:05:37] has been a decline in employment.

[3:05:42] even though have you seen an uptick,.

[3:05:49] it is evident that small businesses are struggling in the

[3:05:51] state of new york. When we talk about economic

[3:05:56] development programs, I can't stress enough that most of the

[3:06:00] economic development programs that are offered in new york are

[3:06:02] not geared toward small business owners.

[3:06:05] they are geared towards certain industries, certain sectors,

[3:06:09] larger businesses much the programs and resource are

[3:06:15] available, while helpful and useful are not the same that are

[3:06:19] offered to larger counterparts of certain industries.

[3:06:22] they're access to capital, access to loan programs, that

[3:06:26] kind of thing, which are great if you are trying to fund

[3:06:31] expansion or try to fund a certain endeavor but it's not

[3:06:34] the same as a tax credit or a grant or some other mechanism

[3:06:39] that is consistently offered in other spaces.

[3:06:43] that's the big differential here.

[3:06:45] when you go into empire state development's website and I play

[3:06:48] with this tool all the time. It says what do I qualify for?

[3:06:51] and you can put in where you are located, how many employees they

[3:06:55] have, what seconder you are in. Think about like your local

[3:06:58] restaurant. If you pick your local

[3:07:00] restaurant and say I have been in business for 10 years.

[3:07:03] I am one to 10 employees, you know, you fill it out, what pops

[3:07:09] up at the end is, you can go talk to a small business

[3:07:11] development center, you can get access to capital.

[3:07:15] that's what is available to you. When we talk and they're not

[3:07:26] available in new york. Moving forward, we recommend

[3:07:28] that those are revisited. There are a lot of valuable

[3:07:33] programs here in the state. Let's talk about the eligibility

[3:07:38] criteria is is there a way to gear it to small business

[3:07:42] owners, whether to upgrade their equipment, upgrade their

[3:07:46] technology about being able to retain jobs.

[3:07:49] we talk about these job retention programs in certain

[3:07:54] sectors. Let's do that for small business

[3:07:55] as well since they employ almost half of the state's workforce.

[3:07:59] things like that when we need to look at eligibility requirements

[3:08:02] and programs offered procurement is a lost opportunity.

[3:08:10] the state spends an immense amount of money in contracts,

[3:08:26] they know how to get procurement.

[3:08:27] we need to make it easier for small businesses to access those

[3:08:31] procurement contracts because that's a great way, again, of

[3:08:35] reinvesting money into the local community and lastly, I just

[3:08:38] want to touch on, which has been talked about today, we have to

[3:08:42] talk about regulations and the cost of doing business in

[3:08:45] new york whether it's energy costs, insurance cost,

[3:08:50] streamlining the regulatory environment.

[3:08:52] all of those things impede small business growth and if you want

[3:08:55] economic development, have you to make sure your businesses

[3:08:57] know or can be able to succeed and that really does come down

[3:09:03] to the overall business climate. And with that, I will thank you

[3:09:08] and as in my testimony, there are other recommendations as

[3:09:11] well. But I appreciate you having me

[3:09:13] here. >> thank you, sonia.

[3:09:17] sonya. >> good afternoon chairman

[3:09:30] stirpe, chairwoman buttenschon and respected members of the

[3:09:33] committees thank you for the invitation to share testimony on

[3:09:37] the impact and effectiveness of new york's economic development

[3:09:40] programs. I appreciate your continued

[3:09:41] leadership and your focus on ensuring our programs promote

[3:09:45] equitable growth and reach all new yorkers.

[3:09:47] I am sonya smith, state director for new york small business

[3:09:52] development center, administered by the state university of

[3:09:55] new york and in partnership with the u.s. Small business

[3:09:58] administration has served new york's entrepreneurs for

[3:10:00] over 40 years. This is a true definition of

[3:10:04] public-private partnerships to serve all communities.

[3:10:06] we operate 20 regional centers and 70 satellite locations

[3:10:11] across all 62 counties providing no cost, one on one business

[3:10:15] advisement, training and market research to 23,000 clients

[3:10:18] annually. With the educational programming

[3:10:19] that reaches an additional 15,000 entrepreneurs statewide.

[3:10:24] each dollar invested in our program returns $ 3.07 in tax

[3:10:32] revenue. Our collaborative role in state

[3:10:33] economic development, although the nysbc is federally funded

[3:10:39] and state supported through suny at 2.67 million, it is not

[3:10:43] directly funded through the state's economic development

[3:10:46] appropriation. Yet our work directly

[3:10:48] complements and amplifies programs centered by empire

[3:10:51] state development, the department of economic

[3:10:53] development, and our local partners.

[3:10:55] through partnerships with esd divisions we help new yorkers

[3:10:59] navigate the ecosystem of statewide programs from restore

[3:11:02] new york, fast new york, global new york and dri, and the office

[3:11:05] of strategic workforce development.

[3:11:08] one of our strongest collaborations with is the

[3:11:10] division of women and minority business development that

[3:11:15] receives 70 to 80 mwbe certification applications each

[3:11:18] week. And the nysbc assess with 40% of

[3:11:21] the statewide output of successful applications ensure

[3:11:25] ensuring businesses are on the only certified by contract ready

[3:11:31] to compete for opportunities. On average they have assisted

[3:11:35] 366 clients with procurement and contracting advisement and

[3:11:38] trainings on these topics in addition assisted with over 28

[3:11:42] contracts, securing and totaling $79 million.

[3:11:46] beyond mwbe support, we also partner with esd entrepreneur

[3:11:50] assistance centers and community organizations to create a

[3:11:53] seamless pipeline from entrepreneur training to

[3:11:59] business. From 2023 to 2024 nysbdc secured

[3:12:04] over is 45 million in capital created and retained over 10,000

[3:12:08] jobs and launched 1900 new businesses.

[3:12:10] our client base remains highly diverse, 53% women, 41% minority

[3:12:17] , 15% rural, 6% veteran and 2% disabled ensuring that

[3:12:21] the state's economic growth is truly inclusive.

[3:12:24] these numbers represent real people.

[3:12:27] each person represents new york's commitment to

[3:12:29] empowering small business. Despite the outcomes, new york

[3:12:32] continues to rank among the lowest in states direct funding

[3:12:35] for sbdc network. Over the past two budget cycles,

[3:12:39] we've experienced significant cost pressures due to inflation,

[3:12:43] rising wages and expenses for technology, travel and program

[3:12:46] delivery. These factors have resulted in a

[3:12:49] 14.6 decrease in staffing and service capacity and

[3:12:53] corresponding 30% reduction in clients served measurable

[3:12:57] impact. For the 20 centers across

[3:12:59] new york state, this is a reduction of one full-time

[3:13:03] equivalent per center-for-the state program.

[3:13:06] an equivalent investment $5 million per appropriation

[3:13:09] would help offset the increase and sustain the funds and

[3:13:13] strengthen new york's ability to align sbdc programs with state

[3:13:17] funding new york cities. This would expand our reach in

[3:13:19] under served communities and ensure continuity and high

[3:13:22] quality business assistance statewide.

[3:13:24] this is not just a budget issue. It's an opportunity to

[3:13:28] strengthen our already proven partnership with deeper

[3:13:31] integration between nysbdc, empire state development and

[3:13:36] department of economic. We can stale the mwbe

[3:13:38] certification and procurement pipeline, expand support for

[3:13:41] food and accommodation industries, grow and

[3:13:44] manufacturing programs and advance initiatives in aicht and

[3:13:47] workforce readiness. New york's economic development

[3:13:50] ecosystem is strongest when we leverage each partner's

[3:13:52] expertise and data to create a continuum of support from nidh

[3:13:58] to global competitiveness we stand ready to continue as a

[3:14:02] strategic partner to the state, helping small businesses start,

[3:14:05] succeed and stay in new york. Thank you for the opportunity to

[3:14:08] share our impact and vision for continued collaboration.

[3:14:11] I welcome any questions from the committee.

[3:14:16] >> good afternoon., chairman stirpe, buttenschon, members.

[3:14:21] committee, thanks for having us today.

[3:14:25] I'm winthrop thurlow, executive director of lifesciencesny, a

[3:14:35] statewide association of life sciences space.

[3:14:36] our members are innovating, researching, creating and

[3:14:41] developing healthcare products. So we are talking about drugs,

[3:14:45] diagnostic tools, medical devices.

[3:14:47] in many ways, our members are driving new york's economy into

[3:14:57] the future my message to you really is simple and that is,

[3:15:02] our members rely on many of the state services.

[3:15:05] it's nice to sit next to jim d'agostino here and the services

[3:15:10] that the state's maps and fuse hub offer.

[3:15:14] those array of services, whether we are talking about the

[3:15:16] hotspots and some of the other assets of nystar and the other

[3:15:21] programs are critically important to the success of life

[3:15:26] sciences industry in new york. One of the things I would say to

[3:15:29] you is in the life sciences, we are small business, we are

[3:15:34] medium sized businesses, we are large businesses.

[3:15:37] our members range from start-ups to established companies that

[3:15:42] all of you have heard about. We have tremendous opportunities

[3:15:45] here in new york in an incredibly competitive

[3:15:51] environment. We are competing against states

[3:15:53] like massachusetts and california and north carolina

[3:15:57] and minnesota we cannot afford to be left behind in that

[3:16:03] competitive environment initiatives like empire a.I. Are

[3:16:05] going to be transformative, initiatives like the bio genesis

[3:16:10] park and additional investments in cell and gene therapy are

[3:16:14] driving innovation in new york state.

[3:16:17] those are creating businesses, creating jobs.

[3:16:21] we have opportunities to leverage the huge attractiveness

[3:16:25] of new york city, with an adisability to-- an ability to

[3:16:30] create manufacturing opportunities in places that

[3:16:32] have capacity and available workforce and a lower cost of

[3:16:37] business. Let me give you a couple of

[3:16:43] examples. Regeneron and the tremendous

[3:16:45] work they're doing. Their headquarters are in

[3:16:48] tarrytown in westchester county, it makes sense, in many ways,

[3:16:51] for them to place their headquarters in metropolitan

[3:16:55] new york city. Where are they doing their

[3:16:57] manufacturing? Primarily saratoga and

[3:17:00] rensselaer counties because it's accessible, it has capacity, and

[3:17:04] frankly it has a lower cost of doing business: when you look

[3:17:08] at where are the drivers in the life sciences industry,

[3:17:12] certainly one of the leading drivers is boston.

[3:17:16] and I would encourage this committee to take a look at what

[3:17:20] is happening in boston. We do not need to replicate what

[3:17:23] they're doing in massachusetts. We need to find ways to service

[3:17:28] and be the place where talent is going to continue to grow a

[3:17:34] short example. Take a look at wses,

[3:17:38] massachusetts. Worcester, massachusetts, could

[3:17:40] be any upstate new york city. It had its population zenith in

[3:17:44] about 1950, went through a long painful decline in

[3:17:49] deindustrialization. Over the last 15 years,

[3:17:51] worcester, massachusetts, has seen significant population

[3:17:57] growth that is non-immigrant related.

[3:17:59] what it is related to is an increasing cost of doing

[3:18:03] business in boston which is then moved these opportunities

[3:18:08] westward. We have opportunities along the

[3:18:11] 87 and 90 corridor to bring that kind of energy to places like

[3:18:15] the capital region, mohawk valley, central new york and

[3:18:17] western new york to drive innovation.

[3:18:21] I will also say to you that I have a slightly different

[3:18:25] perspective on the regulation burden problem I've heard many

[3:18:28] of the folks today talk about the reality is in the healthcare

[3:18:34] development industry, we know what it is like to work in a

[3:18:40] heavily regulated place, the bulk of the regulations that our

[3:18:43] members are facing are really coming from washington and not

[3:18:46] from albany. What I would encourage this

[3:18:49] committee to think about though, to be incredibly careful as we

[3:18:56] begin to apply additional regulatory burdens.

[3:18:59] so, for example, in the artificial intelligence space,

[3:19:02] quite candidly, I wish we told all artificial intelligence

[3:19:06] stories through the lens of the life sciences because it's in

[3:19:10] our industry that we are creating better diagnostic tools

[3:19:14] better drugs and better devices. We need to be careful as we look

[3:19:19] at regulating some of the concerns about a.I. That we

[3:19:23] don't impose unnecessary burdens that are going to slow

[3:19:27] innovation in that space. I see a red light flashing so I

[3:19:32] will stop talking but I'm happy to answer questions.

[3:19:36] >> good afternoon, honorable chair berns and esteemed members

[3:19:40] of the legislature. Thank you for the opportunity to

[3:19:45] speak today in support of additional funding for the

[3:19:47] new york manufacturing extension partnership or new york mep.

[3:19:54] your leadership in advancing policies that foster economic

[3:19:57] growth, strengthen our manufacturing sector and create

[3:20:00] high quality jobs, is greatly appreciated.

[3:20:05] manufacturing is a cornerstone of new york's economy, employing

[3:20:09] over 400,000 workers statewide, but our manufacturers face

[3:20:14] significant challenges and you have heard some of them today,

[3:20:17] including workforce shortages, global competition, supply chain

[3:20:24] disruptions cyber security threats and the rapid pace of

[3:20:28] technological change. New york mep is a statewide

[3:20:31] network dedicated to helping small and mid sized

[3:20:35] manufacturers meet all of these challenges.

[3:20:38] through 10 regional centers and one statewide center, new york

[3:20:46] mep has hands on assistance that improves efficiency, supports

[3:20:49] technology adoption, strengthens workforce development and

[3:20:54] enhances overall competitiveness.

[3:20:55] over the last five years, new york mep has generated over

[3:21:04] $7.6 billion in economic impact and supported more than 32,000

[3:21:09] jobs statewide. For every dollar invested in

[3:21:11] new york mep, new york sees a return of $125.

[3:21:20] demonstrating extraordinary value for our economy.

[3:21:24] new york mep work translates into measurable outcomes,

[3:21:30] including 6555 jobs created or retained a billion dollars in

[3:21:36] newer retained sales. $37 million in cost savings and

[3:21:42] $190 million in new client investments.

[3:21:44] these results ill illustrate the high return on investment in

[3:21:48] tangible benefits that new york mep provides to manufacturers

[3:21:53] and communities across the state.

[3:21:55] new york mep operates as a public-private partnership,

[3:21:59] federal funding comes primarily through the national institute

[3:22:03] of standards and technology and new york mep also generates

[3:22:07] revenue through project fees. Current state funding levels

[3:22:12] limit new york's mep abilities to expand services and reach

[3:22:17] more manufacturers, particularly as the industry faces emerging

[3:22:20] challenges in technology, sustainability and supply chain

[3:22:25] resilience. This is why we are requesting an

[3:22:30] additional $2.875 million in the state's fiscal year 2025-26

[3:22:36] budget. This funding will allow new york

[3:22:39] mep to equip manufacturers with advanced technologies,

[3:22:43] automation, robotics, a.I., promote sustainability and help

[3:22:48] companies integrate green technologies in line with

[3:22:51] new york's climate goals, support expansion into emerging

[3:22:56] industries such as semiconductors, clean tech and

[3:22:59] life sciences, strengthen domestic supply chains, enhance

[3:23:03] cyber security and support reshoring initiatives and

[3:23:09] provide workforce training and apprenticeship to prepare

[3:23:12] workers for modern manufacturing.

[3:23:13] let me share a few examples of new york mep's impact.

[3:23:18] one manufacturer achieved as 9100 certification, which is a

[3:23:23] globally rebounding sized aerospace standard, with

[3:23:26] new york mep support, the company improved initiativecy,

[3:23:33] reduced defects and opened new market opportunities.

[3:23:35] new york mep helped another manufacturer provide specialized

[3:23:39] training for machine operators, boosting productivity, safety,

[3:23:43] morale and retention. Companies also have used lean

[3:23:48] manufacturing techniques and strategic partnerships to

[3:23:51] optimize operations, reduce costs and strengthen supply

[3:23:55] chains ensuring faster production cycles and on time

[3:23:59] deliveries. Despite these successes,

[3:24:01] new york mep faces funding and contracting challenges that

[3:24:05] threaten its ability to serve manufacturers.

[3:24:08] without support, we risk reduced reach and services for small and

[3:24:13] mid sized manufacturers, loss of competitiveness for new york

[3:24:18] manufacturers with potential job and economic losses and reduced

[3:24:21] access to related grant programs including smart I corridor,

[3:24:28] build back better, blue forge, usda rural communities,

[3:24:34] appalachian regional commission initiatives, among others.

[3:24:36] to address these challenges,y we respectfully urge the

[3:24:40] legislature to renew all of our sub recipient agreements for

[3:24:44] new york mep centers by january 1 so we can continue

[3:24:49] with state endorsement, 2: provide gap funding from january

[3:24:54] through march 2026 until the next fiscal year budget is

[3:24:57] passed, and lastly, include the requested additional

[3:25:02] 2.875 million for new york mep in the state's fiscal year

[3:25:06] budget coming up. I'm out of time but I wanted to

[3:25:09] get through the bullet points there.

[3:25:11] thank you. >> so if I want to summarize all

[3:25:16] of this, the great state programs that this side of the

[3:25:20] table needs to make sure it counts and get increased a

[3:25:27] little bit are not anything at all that helps the regular small

[3:25:34] businesses like you said, they're not geared towards that.

[3:25:37] they're geared towards specialized industries et cetera

[3:25:40] and you just don't get any money so you are having a problem

[3:25:45] keeping people and being able to provide outreach to the normal

[3:25:51] means of people would you serve which are a lot of your people,

[3:25:57] too probably so how do we do all this?

[3:26:02] what would you recommend, if you were going to create a grant

[3:26:07] program or a couple different grant programs for regular small

[3:26:11] businesses, restaurants, you know, clubs, hardware stores,

[3:26:16] things like that, what would you do and what would the

[3:26:20] requirements be and how much money would you want to give

[3:26:27] each business or up to a certain amount.

[3:26:32] >> thank you for the request I think it's also going to be

[3:26:38] depending on the region and the industry, I know you just talked

[3:26:42] about retail and food accommodation in the sense that

[3:26:45] you heard both of the chambers talk about they send any type of

[3:26:49] whether it's sba or grant it's a county or local municipality,

[3:26:56] federal or state grant opportunity, they try to send

[3:26:58] those clients or small businesses to the sbdc but as

[3:27:02] you mentioned and as I stated, it's the capacity.

[3:27:05] the assistance is there for the administrative burden to

[3:27:08] hopefully take that off of the small business.

[3:27:11] and if those programs are created to help them with facade

[3:27:15] or, you know, some equipment purchases or also going through

[3:27:21] an apprenticeship program to learn the sbdc were hosted at

[3:27:28] some of the community colleges. There is the opportunity to

[3:27:30] partner with an sbdc. I think there are parameters are

[3:27:33] having a grant program. It depends on the business and

[3:27:36] the region and industry you are focused on there.

[3:27:40] >> and I think assemblyman, to your question, you ask most

[3:27:45] small business they're in the going to tell you they want a

[3:27:48] grant, right they're really not asking for money.

[3:27:51] that's generally not their mo, so the point I was really trying

[3:27:57] to make if you are trying to assess and evaluate the economic

[3:28:01] development program impact on small business, they're just

[3:28:04] generally isn't an impact, right?

[3:28:06] so if you want to hear some economic development dollars

[3:28:10] towards small business there is a way to do that by changing

[3:28:13] eligibility criteria in certain programs.

[3:28:16] like the excelsior jobs program, for example.

[3:28:19] the criteria was changed this last budget cycle.

[3:28:23] the regs are out now. Esd has proposed them there are

[3:28:29] potential changes you can look at in some of the programs to

[3:28:33] see if there are tax credits or other things you can offer to

[3:28:36] small businesses looking to expand job growth or what have

[3:28:40] you I think that's an opportunity in terms of funding

[3:28:43] and where do you get money which is always the big question and I

[3:28:46] think that's where there are a lot of programs, pfm put out a

[3:28:57] report last year we need to look at some of these programs that

[3:29:05] really do a poor return on investment and is there a way to

[3:29:08] redirected to the most dollars to something that is really just

[3:29:11] going to make an impact on the community.

[3:29:15] >> I would say, too, I would hope that we don't see this as a

[3:29:20] zero sum game. Frankly while my members

[3:29:24] certainly are in a specialized place, many of them are small

[3:29:30] businesses. And so thank you assemblymember

[3:29:39] stirpe for helping us to secure some money to put together a

[3:29:43] series of investor conferences we will hold this year to

[3:29:47] connect early stage innovators with the investor community.

[3:29:50] those are relatively small dollars, state dollars that can

[3:29:55] be leveraged to connect innovators with the investor

[3:29:59] community. Frankly, I hear that same

[3:30:03] dynamic across industries: the connections to capital are

[3:30:07] always a challenge and if we can leverage some relatively small

[3:30:10] state dollars to help facilitate connections to private dollars.

[3:30:22] >> you say they're not really looking for grants or-- are they

[3:30:26] looking for loans that are easier to center, easier to get,

[3:30:37] easier to administer. >> loans are something to use if

[3:30:40] you are going to grow, right? You are looking at an expansion

[3:30:45] effort. You are trying to go into a

[3:30:47] different direction or expand your operation or invest in new

[3:30:50] equipment. That's when you are looking for

[3:30:52] loans. I think the vast majority of

[3:30:53] small businesses are saying I'm just trying to keep my head

[3:30:57] above water and, can we find a way to make that easier and I

[3:31:04] think that's really where they are coming from is, and you know

[3:31:08] there have been talks about streamlining regulations and

[3:31:11] things I've I've I will jiff you one quick example.

[3:31:15] -- local restaurant, small business member of ours owns

[3:31:20] multiple restaurants. He is getting ready to retire.

[3:31:22] he doesn't want to just close them down, right?

[3:31:24] he wants to see them keep going so he is looking at people to

[3:31:27] sell them to. Employees who have worked their

[3:31:30] way up into management positions to give them the next

[3:31:33] opportunity. And he has had a couple people

[3:31:36] and all they needed was to transfer a liquor license and it

[3:31:41] took months and months and months and it's those types of

[3:31:47] things that don't need to be so hard that don't need to be so

[3:31:50] difficult, and it was he had one buyer back out because he wasn't

[3:31:56] going to wait eight months for a liquor license, right?

[3:32:00] and so again, that's not necessarily your purview here

[3:32:04] but it is just an example and evidence of how hard it is and

[3:32:09] it doesn't need to be that hard. A small business owner will tell

[3:32:12] you, I just need to you get out of the way, right?

[3:32:16] like that's what I'm asking to you do, and again, you know,

[3:32:19] obviously there are things that need to be in place and et

[3:32:22] cetera, but if we can I think, find other ways to drive down

[3:32:29] costs, to streamline things, that's a better way of helping

[3:32:32] small businesses. On the flip side, when you are

[3:32:37] spending almost $10 billion a year in economic development

[3:32:40] programs we also have to make sure we are getting bang for our

[3:32:43] buck if part of that bang is that you want to help small

[3:32:47] businesses, right now we are not doing that in the economic

[3:32:50] development space. >> if could I chime in, too, I

[3:32:55] just want to say unfortunately liquor licenses are involved

[3:32:59] here in this committee. And that's the bane of my

[3:33:02] existence, basically. So you mentioned assemblyman

[3:33:08] stirpe, we are in a little more specialized space, but I did

[3:33:12] want to pint point out that the new york mep centers, have a

[3:33:19] tremendous amount of funding partners and different grant

[3:33:23] programs and things that we tap into on behalf of our

[3:33:26] manufacturers, partners like national grid, nyseg, rg & e,

[3:33:33] workforce development institute, the county workforce boards.

[3:33:34] there are a lot of specialized programs that we are able to

[3:33:39] direct to our never manufacturers.

[3:33:40] I also, if for nothing else wanted to put it on your radar

[3:33:45] across the mep network but starting with tdo in central

[3:33:49] new york, we are working on developing a pilot program in

[3:33:55] coordination with empire state development to service

[3:34:00] manufacturers that, you know, when where the consolidated

[3:34:04] funding application, cfa, may not be the right fit.

[3:34:07] maybe they don't qualify because of job creation or whatever, but

[3:34:10] it's a great project, you know, it's going to help boost

[3:34:15] productivity, grow their business but maybe not hit the

[3:34:17] job numbers that the cfa requires.

[3:34:19] so across the mep network we are helpful that-- hopeful that we

[3:34:24] are going to be rolling out the program working with empire

[3:34:27] state development. One of the things that on the

[3:34:30] new york mep side, we are always looking, you know, for

[3:34:34] innovative new ways to help our manufacturers out and that's one

[3:34:37] ever them, to your point, you know, what programs.

[3:34:39] we are looking into that because that's what we've heard from our

[3:34:43] manufacturers we need access to capital.

[3:34:46] we can't really-- we don't qualify for the cfa but we need

[3:34:55] help. >> okay, go ahead.

[3:35:04] thank you to all of you, I hear you loud and clear on the

[3:35:09] regulations and as I was sitting here I think maybe we would

[3:35:14] ensure that all of our commissioners or one of their

[3:35:18] designee be at these hearings because I think it is very

[3:35:22] important and I will invite them to listen to your testimony and

[3:35:25] share it with them because you are right.

[3:35:29] we hear it all the time there is a little bit of business owners

[3:35:33] that want to do transfers and it's frustrating because of the

[3:35:39] fear so thank you for that. Sonya, I know gina hadek is one

[3:35:45] of your team members that, as I have had many roundtables, go to

[3:35:54] gina but she is one person. I understand the points that you

[3:35:56] have brought forward and will continue to look at the support

[3:36:02] you provide. Sonic research lab is within

[3:36:09] coming up with innovative ideas. I appreciate as well as with

[3:36:12] manufacturing. My one question to all of you is

[3:36:15] the folks that have testified today, do you know them all?

[3:36:18] do you work with them? We talked about cross regional?

[3:36:24] clearly there is a lot of overlap that we are seeing and

[3:36:26] we want to make sure you are nodding your heads all yes so

[3:36:33] that's great to hear bus if we are going to talk about the

[3:36:36] state as a whole, we want to make sure that everyone is aware

[3:36:39] of what everyone else and it's across regionalal with macny and

[3:36:46] whore else. >> assemblywoman buttenschon,

[3:36:51] truer words have never been spoken.

[3:36:53] one of the things critical to the success of our organization

[3:36:55] that we place at the very top of our priorities list driving

[3:37:00] collaboration and partnership. In the life sciences, we have a

[3:37:04] presence in one way or another in 62 counties.

[3:37:09] and to be able to connect or members to the resources and

[3:37:15] assets across the state is a critically important part.

[3:37:19] we could not do what we do without the folks at the mep

[3:37:23] network, with you the macny, without centerstate, without all

[3:37:27] of those. I will just share I was recently

[3:37:29] on long island and listening to some folks understandably

[3:37:34] complain. We at long island are in the

[3:37:37] forgotten part of new york. And I often laugh and quite

[3:37:42] frankly probably get in thrubl for saying this, I over think

[3:37:46] that the one thing that unites all new yorkers outside of the

[3:37:49] island of manhattan is the conviction that they are in the

[3:37:52] forgotten part of new york. And I think in part that's

[3:37:56] driven by the complexity that we have in the state but to your

[3:38:02] point, work that we need to do to better join the various

[3:38:07] regional assets, the work that folks are doing across the

[3:38:12] network is really the way to grow success.

[3:38:16] so thank you. >> and I would agree.

[3:38:22] I echo everything he said. We do a lot of work

[3:38:29] collaboratively working with his group.

[3:38:31] macny, centerstate and empire state development all sit on my

[3:38:34] bods there. We board of directors there.

[3:38:36] we work with the community boards and colleges, we are

[3:38:39] across, you know, the entire new york mep landscape, we are

[3:38:45] embedded within the fabric, the economic development fabric of

[3:38:47] every region of the state. >> I was going say it's a lesson

[3:38:56] for state government, honestly, what you see in terms of

[3:38:58] collaboration among the different groups that obviously

[3:39:03] I don't work with these fine gentlemen all that often, but

[3:39:06] there are other groups like other chambers and other

[3:39:09] organizations that we collaborate with small business

[3:39:11] development centers, sba or whoever it may be, there is

[3:39:15] constant communication going on between all of us.

[3:39:18] and I don't think you see that from a state agencies level the

[3:39:22] right hand is not talking to the left hand and there is overlap a

[3:39:27] lot of times that can be of great assistance to a small

[3:39:30] business owner and I think the state agencies could collaborate

[3:39:34] a lot more than they do. >> you got home work.

[3:39:39] >> I know you mentioned gina hadok out of the mohawk valley

[3:39:44] community college sbdc and at that time was a very beneficial

[3:39:51] relationship built with esd and mep division when jason clark

[3:39:56] came on board, we talked about the backlog and all of the

[3:39:59] things pending and recertification and gina

[3:40:01] actually worked with lauren and jenny and a couple of their

[3:40:04] other team members to help with streamlining that, looking at

[3:40:08] the key areas where there are challenges from small businesses

[3:40:10] so that communication was a partnership and the

[3:40:15] redevelopment and revamping of that program.

[3:40:17] and as I mentioned, we do 40% of the accepted applications for

[3:40:21] that program and a key partner along with apex as well as the

[3:40:26] eacs and some chambers are involved but we do the brule can

[3:40:29] of the work. >> I know that and I guess I

[3:40:32] just find the challenge that it is called gina, you know, she is

[3:40:37] one person. That's what happens every time

[3:40:40] in the roundtable and we have to invite her.

[3:40:43] so I appreciate that. I'm just wondering, again, are

[3:40:48] we doing it as we should because many of those small businesses

[3:40:51] are like you you got me for an hour because have I to get out

[3:40:55] of here and get to work. Thank you.

[3:41:02] >> thank you all for being here. I'm just curious if, in all of

[3:41:07] your analysis, are loss of population comes up as an issue,

[3:41:18] and okay, I see four heads nod. Thank you.

[3:41:21] I would think it is, too. As you know, we are now for the

[3:41:25] fourth consecutive year in a row, the highest outmigration

[3:41:29] state in the country. I ask you then, recognizing that

[3:41:33] a healthy economy requires population growth, any economist

[3:41:37] at any level will acknowledge that.

[3:41:40] and unhealthy one gets worse with every loss of every

[3:41:45] taxpayer and every producer, let's call them producers for

[3:41:48] this case. In this case.

[3:41:54] do you bring that up and say, hey, look, we are losing people.

[3:41:58] we are driving them away? I know my colleagues on the left

[3:42:01] don't want to acknowledge this, but lock at federal

[3:42:13] representation as well 50 years ago we had about 40

[3:42:17] congressional representatives in the state.

[3:42:18] we have 26 right now so when people say we don't have a

[3:42:22] problem, I say we have a huge problem we have a huge loss in

[3:42:29] congressional representation for federal dollars and federal

[3:42:31] programs nches and here we are again, losing mental rajing

[3:42:37] people, hemorrhaging businesses. And I justed my question is

[3:42:43] simply what do you think we can do to stop the loss so that we

[3:42:48] can actually reverse it in all of the things I've heard all day

[3:42:53] by all the panelists talking about are all individually doing

[3:42:57] great things but there are holes in the hall of the-- holes in

[3:43:00] the hull of the boat. And until we fix that and make

[3:43:03] the boat float, we've got problems.

[3:43:06] >> so let me jump in and say a couple things from my

[3:43:12] perspective. Workforce is the number one

[3:43:13] issue that our members are concerned about.

[3:43:17] being able to find a qualified workforce to staff their needs

[3:43:23] and frankly in our industry, workforce runs the gamut from

[3:43:28] front line manufacturing, all the way up to post-ph.d

[3:43:33] doctoral candidates, right? It's everywhere in between and

[3:43:35] the ability to find those employees to fill those jobs is

[3:43:42] a critical challenge. I bough say to you a couple of

[3:43:44] things and I say this as somebody frankly who spent his

[3:43:48] entire life in upstate new york. I grew up in cortland, small

[3:43:51] manufacturing town, right? You know it.

[3:43:55] we manufactured trucks and smith corona typewriters.

[3:44:01] we used to look at rochester and say rochester, new york, is

[3:44:04] never going to have a problem. They have eastman kodak.

[3:44:08] we will always need film. They have xerox.

[3:44:10] we will always need copies. They have bausch & lomb, we will

[3:44:16] always need lenses and the dig-- digital revolution came along

[3:44:23] and we didn't need those things the way we thought we would need

[3:44:26] them. The approach that I think

[3:44:29] successful is to turn-- and rochester has done a tremendous

[3:44:31] jobs taking the intellectual assets and turning them into

[3:44:34] small businesses that are growing and succeeding and I

[3:44:36] believe that jobs that employees will follow where job

[3:44:41] opportunities exist. The other thing that I would say

[3:44:43] to you, and I think it was kevin schwab who mentioned earlier,

[3:44:48] the nationwide levels of concentrated poverty in many of

[3:44:50] our cities in new york. What that really means to me is

[3:44:55] that we have an untapped resource of workers.

[3:44:58] we need to figure out how to capture baxter, the former in

[3:45:08] skaneateles has challenged his company to find employees from

[3:45:14] auburn. In part, it might be a bit

[3:45:16] related to the increase in the minimum wage and some fast food

[3:45:21] professions. In part it's also related to

[3:45:25] transportation challenges, child care challenges, all those wrap

[3:45:27] around services. So my answer to you is is it a

[3:45:32] problem? Absolutely.

[3:45:33] we need to take a holistic look at what we are doing and find

[3:45:37] solutionses to the problem and we can do it.

[3:45:43] >> we hear the workforce challenge from many of the

[3:45:45] manufacturers that we have in our region.

[3:45:49] I really think that's where the new york mep system is

[3:45:54] strategically designed to help. We help manufacturers develop

[3:45:59] retention strategies, attraction efforts, we have, you know, a

[3:46:03] lot of resources. We connect with a lot of

[3:46:05] partners on the workforce side as well.

[3:46:08] you the also on the technical side, you know, for some of

[3:46:12] these hard to fill jobs, that's where new york mep steps in and

[3:46:19] says okay is there automation? Are there things we can do to

[3:46:23] boost your productivity? Maybe there is a different way

[3:46:25] of looking at your processes where we are still short a

[3:46:30] person but maybe we can fix that on the process or automation

[3:46:35] side there so again that's where we have a little bit of a

[3:46:38] different, I think, viewpoint on that.

[3:46:40] we see it as an opportunity. That's where we thrive.

[3:46:54] >> how are y'all doing? I'm glad to my colleague came up

[3:47:02] with the census and having an ac receipts count of all

[3:47:05] new yorkers, meaning anyone who lives in our state, needs to be

[3:47:07] counted, and I do think the business industry needs to be a

[3:47:11] part of that and advocate for it advertise for it because to his

[3:47:16] point if we can get the proper count we would have greater

[3:47:21] federal representation and a bigger piece of the pie and go

[3:47:24] to the programs we are talking about, making sure they're

[3:47:26] funded. Additionally, I think no one up

[3:47:30] here left or right can agree we can be more streamlined as a

[3:47:34] state and we want to make sure the programs are efficient and

[3:47:36] work better. The other side of it is we want

[3:47:41] to make sure nobody takes advantage of the system because

[3:47:43] all it takes is one bad actor completely take down a system

[3:47:48] and next thing you know, the post is saying the new york

[3:47:51] assembly didn't take the proper steps to ensure this program is

[3:47:54] in line, right so you are right, we have to find that balance one

[3:47:59] thing we need to look at, we have had a track record over the

[3:48:02] last couple of years to help small businesses and I want to

[3:48:05] give a big shoutout to labor chair harry bronson and our

[3:48:09] speaker because of the $7 billion we did to help the

[3:48:12] unemployment insurance fund to get that off the backs of all

[3:48:15] businesses but definitely small and mediumized businesses is a

[3:48:18] huge win for the business industry and community and so I

[3:48:23] don't want to hear people saying the new york state assembly

[3:48:26] doesn't understand that. We are trying to find the

[3:48:28] balance of making sure people have living wages while at the

[3:48:31] same time proper regulations that ensure that our businesses

[3:48:34] are acting as good faith partners.

[3:48:37] with that said, to director smith, you have experience with

[3:48:46] pennsylvania. What in pennsylvania do you

[3:48:48] think works well that we should bring here to new york?

[3:48:57] >> both the assemblymembers, thank you for the question, talk

[3:49:00] about population and that's where most of our funding was

[3:49:02] cut in 2020, due to the pandemic so our program already got

[3:49:06] smaller since then. But to answer your question, on

[3:49:11] pennsylvania, I actually was the associate state director for

[3:49:15] programs and policy. A lot of what we did were

[3:49:19] developing centers of excellence and really highlighting the

[3:49:24] expertise of not only the staff but the needs of the different

[3:49:28] communities. So it could be, for instance,

[3:49:30] one was on e-commerce and we partnered with the department of

[3:49:37] -- or economic development agency so eda, on the federal

[3:49:40] side, funding that program. And so that was for anything on

[3:49:46] shop phi or online platforms for businesses to get on the retail

[3:49:52] side online. In general, the regulations or

[3:49:54] the state side of policy, anything of that nature,

[3:49:58] everyone is unique but I think far behind and having access to

[3:50:08] capital or individual programs that are actually supporting the

[3:50:12] small businesses, so, of course, ded are putting out programs but

[3:50:20] the small businesses like you heard don't have the time or the

[3:50:23] bandwidth or the understanding or even the awareness

[3:50:27] acknowledgment of that and I think that's what is different

[3:50:29] in a lot of states. They invest in that for the

[3:50:32] technical assistance to be there to support those programs.

[3:50:35] if you are going to put new money into programs, you need

[3:50:39] the technical assistance to support that as well and that is

[3:50:41] very different in other states business transition is a big

[3:50:47] thing we are trying to develop a program around that it will be

[3:50:53] piloted in assemblyman stirpe's district out of the onondaga

[3:50:56] community college sbdc north central but we are doing that

[3:51:00] out of county funds and private funds to do that.

[3:51:03] it's not state supported and so that's the difference I see is

[3:51:07] that there is no streamlineing and conversations between state

[3:51:14] agencies to support that. >> quick followup you said you

[3:51:19] are doing it in the chairman's district but we need impact

[3:51:22] program. >> the mainstream program out of

[3:51:26] the ssbci, state credit initiative or business incentive

[3:51:31] was out of tress treasury, and through that program, if you are

[3:51:35] going to put programs out like that, you need the technical

[3:51:39] assistance partners or resources to be able to have small

[3:51:42] businesses understand the awareness, the administrative

[3:51:44] part and how to apply for that and if they're eligible.

[3:51:47] so I feel like that's the difference in certain states is

[3:51:50] the support from the state to streamline and have that

[3:51:53] information but also have resources available.

[3:51:55] >> got it. Thank you.

[3:51:58] >> and quickly just on your point on unemployment insurance,

[3:52:01] I was smiling at chair stirpe because he has heard me since

[3:52:05] 2021 about that issue ad nauseum.

[3:52:10] I'm sure there are times he doesn't want to take my phone

[3:52:12] call on that issue. So I commend your chamber, the

[3:52:17] assembly particularly the speaker and so many members

[3:52:19] within that chamber for getting that done.

[3:52:21] >> including both these chairs. >> and all these chairs.

[3:52:24] that was a tremendous, tremendous accomplishment and

[3:52:28] one that small businesses have been calling for for a few years

[3:52:32] now and I do comment you because you look the lead on that issue

[3:52:38] and it would not have gotten done without your leadership

[3:52:43] across the board. We recognize that and that's a

[3:52:45] great example of something to help small business.

[3:52:52] that was an unnecessary cost driver that we could take away

[3:52:56] and there are things like that that we can look at.

[3:52:59] >> thank you. >> thank you all for being here.

[3:53:05] I just want to say that earlier on said a lot of the businesses

[3:53:09] are not looking for grants and you hit the nail on the head

[3:53:13] with that because I know a lot of these businesses in my area,

[3:53:15] especially in long island, they're looking for

[3:53:18] sustainability. They don't want a handout.

[3:53:19] they want to just know that they can survive month to month just

[3:53:23] by doing their jobs because they see these businesses as their

[3:53:26] babies and they don't want it to go and they want them to thrive,

[3:53:31] near not looking to make millions of dollars from the

[3:53:33] business. They just want to survive.

[3:53:35] and that's something we should be helping more on.

[3:53:41] and throughout the panelist as everybody, we have not gotten to

[3:53:45] that issue that same way people are leaving the state, this is

[3:53:49] probably because also businesses, which are the

[3:53:51] backbone of our state, are not thriving and not doing well

[3:53:54] enough. I had a business, which was a

[3:53:57] staple of our community for many years and from year to year, the

[3:54:00] resources, is services, the wages, the insurances they keep

[3:54:04] on going up and up and it's not something that they can could

[3:54:08] keep up-- they could not keep up with because they can't charge

[3:54:11] for a hamburger $45 and that's what it comes down to at the end

[3:54:15] of the day. I know we should be doing more

[3:54:17] to help with the sustainability of these businesses and not just

[3:54:21] with grants and we'll do what we can.

[3:54:24] I promise the that. >> okay.

[3:54:31] good afternoon. Thank you for being here.

[3:54:35] winthrop, I really want to thank you for shouting out long island

[3:54:38] because sometimes we get a little lost in the shuffle.

[3:54:41] so I appreciate that. I wanted to ask you about the

[3:54:45] federal cuts life sciences has incurred because there is not a

[3:54:52] sector that has not been devastated by the federal cuts.

[3:54:55] I just wanted to know how it lies with the life sciences,

[3:54:59] those cuts. >> well, thank you for the

[3:55:02] compliment and then you went and poured salt in a real wound here

[3:55:07] is what I would say and this is one thing that would I want this

[3:55:10] committee to really kind of folk news on.

[3:55:13] there has certainly been an awful lot in the press about the

[3:55:17] devastating impact frankly to our universities at cuts in

[3:55:22] federally funded research those are real, those are problematic.

[3:55:26] by the way, those are economic development and business dollars

[3:55:29] that are going to have impacts across the state.

[3:55:33] in addition, one aspect of that that I think has gotten too

[3:55:39] little attention is the recollection anythings that most

[3:55:43] health product innovation is coming out of our universities,

[3:55:48] through our networks of incubators, accelerators and

[3:55:51] other places so not only are we looking at huge cuts to

[3:55:58] universities. We are looking at a pinch in the

[3:56:00] pipeline of new products coming tut at the tend of this process.

[3:56:04] we are all about innovation and improving lives, losing that

[3:56:10] pipeline of products is not only devastating to the state of new

[3:56:15] york and the united states, it's devastating to patients around

[3:56:18] the world. And we need to continue to

[3:56:22] advocate, frankly, from my perspective, if you really want

[3:56:25] to make america healthy again, we increase investment in

[3:56:32] research; cree-- we increase research in healthcare

[3:56:36] innovation to drive down costs of chronic diseases like stroke

[3:56:40] and cancer and diabetes and these things that are sending

[3:56:45] healthcare costs through the roof.

[3:56:46] that's the way to both improve health and to lower costs and so

[3:56:51] I think we in new york have an opportunity to be a leader in

[3:56:55] that ways. There is not a location on the

[3:56:58] face of this planet that has the wealth of educational resources,

[3:57:03] the workforce, the brain power, and, frankly, the attraction to

[3:57:08] capital than we have in new york and we need to leverage those

[3:57:12] strengths to continue to grow the business.

[3:57:14] one last thing that I will say about the bio genesis park in

[3:57:18] long island, it's going to be adjacent in nassau county to

[3:57:24] queens. The most diverse place on the

[3:57:25] face of the planet. That's a strength.

[3:57:30] that allows researchers to tap into populations and diversity

[3:57:35] of populations that you could not find anywhere else.

[3:57:37] we need to make smart investments in places like that

[3:57:41] because that's where new york can be a leader.

[3:57:43] >> thank you very much for that. I'm out of time.

[3:57:47] ashley, sonya thank you for shining the light on actual

[3:57:50] small businesses, the life blood of our communities throughout

[3:57:54] the state that they're often left out of the esd programs

[3:57:57] they just don't qualify. I have been inquiring on that

[3:58:01] before and never got the answers we need to make a change so ?I

[3:58:06] really would love to work on ways that we can establish more

[3:58:11] programs deered for the small businesses that we have through

[3:58:13] out our state and I know another thing is, we don't have time now

[3:58:17] but I hope to find out more about your a.I. Recommendations

[3:58:20] in regards, so perhaps I'll email you.

[3:58:23] >> terrific. Thank you.

[3:58:27] >> thank you all very much. Great conversation.

[3:58:38] now we go to the remaining people who have been sitting

[3:58:40] here patiently. Nobody snored.

[3:58:45] it was good. >> hi there.

[3:59:34] hello. >> you are going to make this

[3:59:35] really quick. >> yes.

[3:59:38] we know we are standing in between everyone and lunch.

[3:59:43] >> okay. Since we started on this side

[3:59:47] last time, we'll go and start on this side this time.

[3:59:51] >> thank you very much. By the way, I texted gina to

[3:59:56] tell her how many times she has been mentioned clarkson class of

[4:00:06] 1990. Thank you very much.

[4:00:07] we are very excited about the opportunity today about how

[4:00:11] clarkson and all of our partners are driving innovation, job

[4:00:15] creation, sustainable economic growth across new york state.

[4:00:17] that is consistent with our mission to last 125 years to

[4:00:21] seek out the real needs of american people and we do that

[4:00:25] through partnerships that strengthen both local and

[4:00:27] statewide economies and do a lot of hands on education in applied

[4:00:31] research. We are proud to say that esd

[4:00:33] investments produce tangible results.

[4:00:35] new technologies, new and retained companies, and new jobs

[4:00:40] for new yorkers. And we would always welcome

[4:00:43] further review by these committees on incentives for the

[4:00:48] corporate partners we talked about (inaudible) you mentioned

[4:00:52] people talking about the federal pressures that are on

[4:00:55] universities right now. Our corporate partners are

[4:00:58] coming to us with all of their challenges right now also so any

[4:01:02] tax breaks or incentives we can give them to work with our

[4:01:05] universities would be very welcome in this process, too I'm

[4:01:08] going to highlight three of our programs.

[4:01:12] it is the innovation hotspot for the north country, our

[4:01:17] new york state center of excellence and healthy water

[4:01:19] solutions with suny esf and our center for advanced materials

[4:01:22] processing one of the cats in the state.

[4:01:26] first north country innovation hotspot.

[4:01:28] I'm not used to hearing that long island is forgotten in the

[4:01:32] north country but we will put that out there.

[4:01:34] operates in downtown potsdam through shipley's center for

[4:01:37] innovation, they help with idea to market as a lob incubator

[4:01:42] prototyping spaces, dmesh usuallyization support,

[4:01:45] mentorship networking. Last year we helped with more

[4:01:47] than 60 entrepreneurs and small business navigate the rural

[4:01:50] economic development ecosystem. Start-up developing advance pfas

[4:01:56] removal and destruction technologies.

[4:01:57] they do that in collaboration ration with with our healthy

[4:02:03] center and last year with commercialization support and

[4:02:05] from the hotspot, demax plasma increased revenues by there

[4:02:12] 361,000. This year we launched

[4:02:14] entrepreneurship meetups drawing over 150 north country residents

[4:02:19] who share in ideas to strengthen the economy.

[4:02:21] the hotspot reported over 12 million in non-job economic

[4:02:25] impacts and working to expand mentorship and training aspects

[4:02:30] across all seven counties of northern new york.

[4:02:32] the next is the center of excellence and healthy water

[4:02:35] solutions, co-led with suny esf, united expertise and

[4:02:39] engineering, watershed science and environmental technology to

[4:02:41] safeguard one of new york's greatest assets: clean, healthy

[4:02:45] water. Something we should never take

[4:02:49] advantage of. Since its launch in 2019 we have

[4:02:52] received 4.6 million in state funding, listened 10 million in

[4:02:55] additional federal and industry support.

[4:02:57] we have funded 38 research seed projects, 25 commercialization

[4:03:01] projects and 18 research and education initiatives and

[4:03:06] engaged over 25 municipal and industry partners.

[4:03:08] these have produced 1.3 million direct economic impact and as I

[4:03:12] said, we have secured additional federal resource grants with

[4:03:16] that projects range from the pfas to working with lake

[4:03:25] association, skaneateles and canandaigua that attracts

[4:03:31] nutrient runoff that lead to detecting harmful algae blooms

[4:03:36] and impacts tourism. We have new innovation and

[4:03:39] satellite technology that we are preparing for commercialization

[4:03:41] with that. Very exciting.

[4:03:42] also it was brought up so many times I added a paragraph in.

[4:03:45] our center also inspires the next generation.

[4:03:49] we offer real world stem experiences for high school

[4:03:52] students engaging communities in water resources with the same

[4:03:57] companies and industry partners we are using now in our research

[4:04:02] areas my plea on that is that college students are some of the

[4:04:06] best people to inspire-- college students with stem experience

[4:04:12] are the best to inspire the next generation to get involved.

[4:04:16] they relate to them, similar in age and life experiences big

[4:04:19] brothers, sisters and added bonus for all of that.

[4:04:23] and finally camp since 1987, connects companies from all

[4:04:31] across new york state in metals, polymers, bio materials, nano

[4:04:37] materials, sustainability manufacturing from

[4:04:38] semiconductors to clean energy. Camp has played a critical role

[4:04:42] in building new york's semiconductor industry we are

[4:04:45] the world leader in chemical mechanical plannerrization.

[4:04:49] cmp, a foundational process in semiconductor manufacturing.

[4:04:54] these capabilities help them improve yield, reduce defects et

[4:04:58] cetera. We have hosted for the last 28

[4:05:02] years, international symposium on cmp and that has been part of

[4:05:07] the reason it has been attracting business that

[4:05:09] industry to this state. In the last six years, we have

[4:05:15] created over 325 jobs statewide, secured 32.5 billion in new

[4:05:19] funding and worked with a variety of companies in all of

[4:05:22] those things. So in conclusion, you know, we

[4:05:25] would really like to again thank you for all that you do and

[4:05:30] respectfully ask for your continued support in

[4:05:32] consideration of collaboration with the governor incentive for

[4:05:36] full funding of these programs as well as any new areas of

[4:05:41] emphasis that beat some of the state needs in pfas and

[4:05:45] manufacturing technologies that we all want to keep our water

[4:05:47] and healthy areas safe. >> thank you distinguished

[4:05:57] members of the committee, jen smith in my role within cornell

[4:06:02] university's center for regional economic advancement, I lead

[4:06:06] grow new york, a nystar funding food and ag start-up accelerator

[4:06:11] and competition. I'm honored to making new york

[4:06:15] farms and producers and high tech agri-businesses can thrive.

[4:06:18] thank you for your time. The headlines of grow new york

[4:06:22] are impressive since 2019, grow new york start-ups have created

[4:06:25] over 250 new jobs, raised over $100 million in follow on

[4:06:31] funding create new markets for farmers and new food business

[4:06:36] and address labor and climate constraints so my testimony will

[4:06:41] address the demonstrated potential for food and

[4:06:43] agricultural start-ups to diversify, strengthen and expand

[4:06:47] new york's economy, incrementally by building a

[4:06:50] strong infrastructure for growth and exponentially through

[4:06:55] industry changing technologies. Start-ups kirkly those working

[4:07:00] in agtech and food teak build new sources of growth,

[4:07:07] positively impact farmers top and bottom lines anchoring

[4:07:11] skilled diploma in the region and broadening opportunities in

[4:07:15] rural areas of the state. Upstate new york has a long

[4:07:18] tradition of growing, making, moving, storing selling food and

[4:07:22] the grow new york program defined and enriches agrisystem

[4:07:28] built on dairy farming and value added dairy production, small

[4:07:32] and mid sized vy verse family farms, trees fruits, grape,

[4:07:37] maple and controlled environment agriculture among others.

[4:07:41] the illustration I like to use when I'm talking about grow

[4:07:43] new york's ability to strengthen the region is craft cannesery,--

[4:07:49] a contract manufacturer of marinades based in genesee

[4:07:54] county. Our 2022 investment into craft

[4:07:56] cannery let them expand their processing facility and add an

[4:08:00] inline metal detector that scans sealed products which expanded

[4:08:04] the volume and type of products and pliers they can work with

[4:08:07] meaning they have doubled their number of employees, more than

[4:08:11] doubled their number of sales, and means more regional farms

[4:08:14] are selling more products to more small food businesses that

[4:08:19] can contracts with them. In 2024 inequity based start-ups

[4:08:25] raided 18.7 billion across 869 deals, signaling a return to

[4:08:29] pre-pandemic venture capital trends.

[4:08:31] start-ups in the grow new york region received 91.48 million.

[4:08:38] the entirety of upstate new york receives less than 1% of the

[4:08:41] venture capital invested in new york state.

[4:08:44] to continue to nurture a nation leading food and agtech

[4:08:49] ecosystem in an economic region defined in part by lack of

[4:08:52] investment by vcs, it's essential to use state funded

[4:08:56] competition resources as a starter is to help start-ups

[4:08:59] scale and grow thus attracting outside investment.

[4:09:02] to illustrate the potential of grow new york to help attract

[4:09:05] venture funds into our state, I'll tell you about a scribe bio

[4:09:10] science, this they were founded in 2017 in ithaca is a spinout

[4:09:13] from cornell and the voice thompson institute based on the

[4:09:18] discovery of soil molecules detectable by plants which react

[4:09:22] by priming their inmate-- innate defense responses.

[4:09:26] in short, it's a sustainable non-toxic way for crops to

[4:09:32] resist disease and pathogens, the lead commercial product won

[4:09:38] a $500,000 investment in 2021 providing legitimacy for them to

[4:09:44] raise 2.5 million in a seed round.

[4:09:45] that funding facilitated field trials and local hires which in

[4:09:49] turn led to a strategic partnership with nutrient ag

[4:09:52] solutions which is integrating them into their premixes for the

[4:09:57] u.s. Market. Based on the strength of the

[4:09:59] company and their data, ascribe has a multimillion dollar

[4:10:03] oversubscribed series eight set to close this fall.

[4:10:06] I share these two case studies as evidence that the investments

[4:10:10] made in the earlier years of grow new york are starting to

[4:10:12] pay off now. I ask that you continue to fund

[4:10:16] grow new york for further rounds of competition.

[4:10:19] new york has long been a bread basket for the northeast.

[4:10:23] it has been a beacon for innovators with a program like

[4:10:26] grow new york, we combine the strengths, agrifood capability

[4:10:29] and productivity and start-up stickiness with the net result

[4:10:33] of more opportunity for more kinds of people, especially in

[4:10:37] rural parts of the state. Thank you.

[4:10:44] >> thank you. I would like to begin by

[4:10:46] thanking you, chairman stirpe, chair buttenschon and the

[4:10:49] members of the assembly economic development and small business

[4:10:51] communities for, of course, the opportunity to testify here

[4:10:54] today. My name is julie suarez,

[4:10:58] associate dean for cornell college agricultural and life

[4:11:04] sciences, we are nested within the private ivy league

[4:11:07] institution of cornell university but we are also

[4:11:10] uniquely a contract college and deeply embedded within the state

[4:11:13] university system of new york. So we have both the public and

[4:11:15] private facing mission. And for over 150 years, we have

[4:11:19] been very proud to serve as new york's land grant

[4:11:23] institution today I want to focus my remarks on one over

[4:11:28] arching economic development issue, the tremendous

[4:11:30] opportunity for new york's farmers, rural communities and

[4:11:32] consumers arising from the growth of dairy manufacturing I

[4:11:35] also want to thank these committees, the legislature and

[4:11:38] the governor for taking a chance in 2018 by funding our center of

[4:11:43] excellence in food and agriculture at our agritech

[4:11:46] campus 234 jefe. I'll share-- in geneva.

[4:11:49] I'll share an upupdate in our c coe as well.

[4:11:53] I wanted to say I believe strongly in taking

[4:11:57] responsibility for my mistakes. I stapled your pages together

[4:12:01] incorrectly this morning so I will abridge my remarks.

[4:12:03] will you find more written data in the testimony and would I

[4:12:06] like to say I did it to make sure you are paying attention

[4:12:09] but the reality is it was a simple error so forgive me.

[4:12:12] just this week I wanted to talk about data from the

[4:12:16] international dairy foods association which ranked

[4:12:18] new york state number one in the nation for new investments in

[4:12:23] dairy manufacturing capacity. Let me reemphasize this again.

[4:12:28] new york is first in the entire nation for private sector

[4:12:31] investments in dairy manufacturing.

[4:12:33] cornell has long noted in fact this committee as well as other

[4:12:37] colleagues in the legislature, that our state has incredible

[4:12:41] potential in world food manufacturing due to our

[4:12:44] climate, including abundant water resources even though we

[4:12:46] are currently in a drought. Our innovative farmers, science

[4:12:50] driven competitive edge, proximity to over 100 million

[4:12:53] consumers in the eastern sea board and the state's favorable

[4:12:58] tax and investment climate for farmers.

[4:12:59] it has been my observation that new york's economic development

[4:13:02] agenda often focuses on the latest high tech trend, what

[4:13:06] appears to be bright, shiny and easy to visualize taking for

[4:13:11] granted the strength of our agrifood system so I really want

[4:13:14] to commend the governor, ag an markets and the legislature for

[4:13:18] these recent investments in this sector.

[4:13:21] nationally over 11 billion is being invested in dairy

[4:13:23] manufacturing. The gap between our first ranked

[4:13:26] new york at 2.8 billion and second ranked texas at

[4:13:31] 1.5 billion and wisconsin at 1.1 billion is striking and

[4:13:36] highlights new york's competitive advantage.

[4:13:38] research at cornell shows that manufacturers base location

[4:13:41] decisions first on access to an abundant milk supply.

[4:13:45] again our farmers are attracting these investments.

[4:13:47] second, on water access, and third on labor costs and

[4:13:53] availability. Environmental regulations feed

[4:13:55] cost land availability and taxes rank far lower.

[4:13:59] with record breaking manufacturing investment,

[4:14:03] farmers face a generational opportunity to grow jobs and

[4:14:05] investment in a rural community while remaining economicallily

[4:14:09] viable and environmentally sustainable.

[4:14:11] preliminary estimates suggest we need to grow our annual milk

[4:14:15] supply by 5 to 6 billion pounds a year.

[4:14:17] we have two innovation constraints that may limit this

[4:14:21] growth. First new york's available

[4:14:23] farmland is finite. And second, our labor shortages

[4:14:27] persist at both the farm and manufacturing levels.

[4:14:31] new york's over arching challenge to meet rising dairy

[4:14:33] demand and ensurings growth aligns with our clcpa goals that

[4:14:37] we believe that cornell cals, agriculture be a significant

[4:14:42] part of the solution to climate challenges.

[4:14:44] our research addressed two priorities.

[4:14:45] the first is per cal efficiency ensuring that dairy cows are

[4:14:50] healthy, well fed and producing milk with higher concentrations

[4:14:53] of the proteins and amino acids manufacturers needs.

[4:14:56] the second is advancing on farm technology, labor assisted

[4:15:00] devices and robotics including a.I. Enabled robotics.

[4:15:04] support for research and development to continue to boost

[4:15:08] per cow efficiency will assist new york state in meeting the

[4:15:11] demands for mill frk all of these new processing plants.

[4:15:15] in fact historic precedent based on research and development at

[4:15:17] cornell suggests that farmers can adequately meet at least

[4:15:21] 3.5 billion in additional pounds of milk produced annually

[4:15:25] without significantly adding to cow numbers should new york

[4:15:27] decide to invest in science, recognizing my time is super

[4:15:31] limited I'm going to switch to our center on excellence at our

[4:15:36] geneva campus and I wanted to just highlight a few brief

[4:15:39] bullet points if I may. Since its establishment in 2018,

[4:15:43] our coe has worked with over 1100 and supported over 1500 new

[4:15:52] and retained jobs primarily in the rural spaces but also in

[4:15:56] new york city. We have help generate and

[4:16:02] increased member revenue companies by 57 million and

[4:16:08] helped companies acquire 87 million in non-governmental

[4:16:12] funds. The coe has had a remarkable

[4:16:15] impact in our spaces an spaits job growth.

[4:16:18] we appreciate your leadership in funding it and helping us to

[4:16:21] support and develop our new eastern new york center which we

[4:16:23] expect to extend our services to the eastern part of the state as

[4:16:27] well. So thank you and I'm happy to

[4:16:28] address any questions. >> thank you everyone for the

[4:16:36] opportunity to be here and testify today.

[4:16:41] I'm mike kennerknecht, assistant director of state relations and

[4:16:48] economic development coordinator at the university of rochester.

[4:16:52] the university is the largest private employer and largest

[4:16:55] healthcare provider in upstate new york in fact we directly and

[4:17:01] indirectly support 66,700 jobs in the state of new york.

[4:17:05] that's one out of every 126 jobs.

[4:17:12] many of the affiliates are going to be hospitals, long-term care

[4:17:17] facilities, but some of the affiliates that I'm going to

[4:17:19] talk about today are very critical state and federal

[4:17:24] assets. One of which I'm going to start

[4:17:25] out with and go out of order if you are following along in the

[4:17:28] testimony. I'm going to jump to next core

[4:17:31] and illuminate because I haven't heard it mentioned t. Nextcore

[4:17:34] is an affiliate of the university of rochester, the

[4:17:37] only state and federally designated incubator in the

[4:17:40] finger lakes region. Programs offered at nexcore

[4:17:46] leverage regional assets to drive workforce development and

[4:17:50] resulted in 1.2 billion in economic impact and over 8,000

[4:17:53] jobs created or retained since 2018.

[4:17:56] some of the state programs that nextcore offers is venture for

[4:18:02] climate tech and scale for climate tech, embark,

[4:18:06] manufacturing accelerator and luminate.

[4:18:10] luminate, I want to touch on this now.

[4:18:15] nextdoor administers the luminate program.

[4:18:17] the largest in the world as far as a business accelerator for

[4:18:22] start-ups in the opi spates, optics photonics and imaging.

[4:18:27] luminate has invested 25 million in 85 start-ups and those

[4:18:31] companies have spent $21.6 million on more than 140

[4:18:35] projects with new york sign manufacturing and supply chain

[4:18:40] companies. These efforts have resulted in

[4:18:43] 210 new direct hires and support or retained an estimated 700

[4:18:49] jobs. Companies in the portfolio have

[4:18:51] raised an additional 437 million, providing an

[4:18:55] estimated 14-1 investment ratio the reason I wanted to lead with

[4:19:01] this is because luminate, like other programs, is funded

[4:19:05] through the innovation venture competition program.

[4:19:08] it was a $75 million fund established in the budget a few

[4:19:14] years ago proprovide funding for the programs for five years.

[4:19:18] luminate and others are going to be funded through 2026 but after

[4:19:22] that, there will not be funding so we are hoping that when we

[4:19:26] see the executive budget proposal and the final budget

[4:19:34] this spring, the competition program will continue to be

[4:19:38] funded. I'm going to skip back because

[4:19:39] can I not be here without talking about the centers for

[4:19:43] advanced technology and centers of excellence.

[4:19:50] new york state supports 30 centers statewide for centers

[4:19:55] for advantaged technology. They have long been one of the

[4:20:01] most successful, if not the most successful economic development

[4:20:05] program for new york state. These are the state's numbers,

[4:20:08] not our numbers. But they average anywhere from

[4:20:12] 20 to 1 to 40 to one return on investment every single year.

[4:20:18] in the 2024 reports, from esd, the most recent ones available,

[4:20:24] the cats and the c coes helped to regenerate 3156 jobs and

[4:20:30] general rate over 900 million in economic impact with an roi

[4:20:36] greater than 31-1 and that's for the 2022-2023 reporting year.

[4:20:42] it's the most recent one available.

[4:20:45] at the university of rochester, we are very fortunate to have

[4:20:48] three cats and coes, our center for advanced technology is ceis

[4:20:58] which focuses on the optics photonics and imaging space.

[4:21:02] our center of excellence is in data science and artificial

[4:21:06] intelligence and thanks to support from the legislature, a

[4:21:09] couple years ago, we had one of the newest coes which is rna

[4:21:16] research and therapeutics, a joint center of excellence with

[4:21:19] the university of albany and the university of rochester.

[4:21:23] and one thing I want to touch on real quick.

[4:21:26] I know time is going to run out quick.

[4:21:27] is a connection with empire a.I. When I was here last year, the

[4:21:31] university of rochester was not part of empire a.I. But we are

[4:21:34] now. And this touches on some of the

[4:21:38] recent comments about collaboration.

[4:21:43] the newest coe that I touched on which is a collaboration with

[4:21:51] the university of rochester and university of albany is now

[4:21:52] working on a project with the empire a.I. Consortium,

[4:21:57] researchers at the university of rochester and university of

[4:21:59] albany are using computer vision and a.I. To analyze the recorded

[4:22:03] movements of patients with neuromuscular diseases, most

[4:22:08] common form of adult onset muscular dystrophy.

[4:22:13] researchers hope to use the empire a.I. System to develop

[4:22:16] innovative treatments for als. This is a great example of

[4:22:23] collaboration not just between public and private institutions

[4:22:26] but also how the centers of scheps are collaborating with

[4:22:29] each other-- excellence are collaborating with each other

[4:22:32] and supporting greater statewide nishs like empire a.I.

[4:22:36] so I just say in conclusion, the university of rochester is

[4:22:43] grateful for the programs that receive state funding at the

[4:22:50] university I know the state eats financial outlook is

[4:22:52] challenging. It seems like it is almost every

[4:22:55] year but we certainly want to encourage strong sustained

[4:23:01] investment and university based innovation and economic

[4:23:03] development programs. Thank you.

[4:23:09] >> I guess I'll start off and new york state, in effect.

[4:23:25] >> somehow I can never turn these things on or off so thank

[4:23:29] you for your question, you know, I'll speak from my college, the

[4:23:32] college of agriculture and life science as thought for the-- and

[4:23:37] not for the overall university. We have had over 110 million in

[4:23:42] it cancel grants and contracts since january, multiyear

[4:23:44] research contracts, a lot of them were in the climate space

[4:23:47] and let me point out that whether we are talking about

[4:23:49] climate change we are also talking about the climate

[4:23:52] adaptation and assisting our farmers do things like climate

[4:23:56] smart agricultural briding so that our farmers have the tools

[4:23:58] that they need in the form of field crops, vegetables,

[4:24:02] specialty crops that are adapted to the next climate change

[4:24:06] adaptation that we see. So the 100 millionings having an

[4:24:10] immediate impact on our institution.

[4:24:11] I would point out that this comes after a long-term systemic

[4:24:17] issue that has been identified in the first trump

[4:24:19] administration in 2019 where usda conducted a survey of what

[4:24:25] new york, what our federal government was investing in

[4:24:27] agricultural sciences based r & d.

[4:24:30] back in 2019, and it hasn't gotten any better.

[4:24:34] we found out that china, the european union, argentina and

[4:24:39] brazil are outpacing our investment as a society in

[4:24:42] public sector agricultural research and technology

[4:24:45] innovation. This is a significant challenge

[4:24:46] for our federal government and for our state to grapple with

[4:24:49] that we will have long-term implications on our farmers.

[4:24:54] so in brief, the lack of federal r & d is going have significant

[4:24:58] consequences on our ability to fulfill the rand grant mission

[4:25:05] to help have the competitive advantage and the impact has

[4:25:10] been and continues to be incredibly difficult.

[4:25:14] >> everybody else having the same sfek?

[4:25:19] >> I think it's the uncertainty and just always managing your

[4:25:24] way through that, what are the overhead rates going to be

[4:25:29] moving forward. A critical source of equipment

[4:25:31] that we usually acquire, at least at clarkson university

[4:25:34] uses its dollars on overhead that allows us to work with a

[4:25:37] lot of smaller companies, the knollton technologies ought of

[4:25:41] watertown that don't have the infrastructure in their own

[4:25:45] business to have the same equipment that is going to be

[4:25:49] one of the unknowns, how we work on that I would love to think

[4:25:53] about how we can get more incentive from corporations to

[4:25:57] help with those investments rather than just by the project

[4:26:03] because transelectron microstope is 1.5 millions.

[4:26:08] when you are working with the semiconductor industry, that's

[4:26:11] one project but you need multiple projects to pull that

[4:26:13] together and that's what we have been using the federal I I

[4:26:17] their, too all of us at universities are doing a better

[4:26:19] job explaining how our research has impact.

[4:26:22] we often wrote paragraphs that had a lot of technical language.

[4:26:28] we got an e.p.a. Grant after it had been pulled because I made a

[4:26:30] lot of pleas going nobody wants to drink pfas in their water.

[4:26:34] let's figure out we are trying to help you and our human rights

[4:26:38] find a cheaper way of creating a sensor technology that can do it

[4:26:43] for $200 instead of 5,000 per test run and we can do it

[4:26:46] cheaper, faster better and we need to prove this out.

[4:26:49] that seemed to be enough that we got that money back.

[4:26:53] so having to explain it in ways how it impacts communities, I

[4:26:57] think is really important and that's not always how many of us

[4:27:00] had written grants for the typical reviewer of a program.

[4:27:11] have you experienced-- the university of rochester

[4:27:16] typically receives in excess of $400 million in federal research

[4:27:20] funding annually. That supports thousands of jobs

[4:27:24] across the region. So certainly the changes that we

[4:27:30] have seen whether it's respect to funding for research to

[4:27:34] overhead rates, all of that certainly has a negative impact

[4:27:38] on jobs, on hiring decisions, but also that goes to what win

[4:27:45] said on the previous panel, it's going to impact I.p. And

[4:27:49] innovation because in the life sciences space, without the

[4:27:54] funding for some of these projects, it's going to impact

[4:27:57] the opportunity for companies, start-ups and others.

[4:28:09] >> again, thank you to all of you.

[4:28:11] we hear you loud and clear and I can el you, I work with julie

[4:28:15] quite a bit and she has brought this information along to us.

[4:28:21] I host a farm tour annually and she is always there.

[4:28:25] so she is the boots on the ground for our agricultural

[4:28:29] community so I thank you for that I just want to clarify,

[4:28:37] with the folks that have testified and I've asked

[4:28:39] everyone, do you work with them at all any that testified today?

[4:28:45] >> well jen and I worked very closely together with the

[4:28:49] cornell center for regional economic...

[4:28:51] >> no I mean the other panels. >> I'm sorry, I misunderstood

[4:28:56] your question. >> generally?

[4:28:59] >> I'm just looking again to see if these partnerships are being

[4:29:03] made and clearly we are going to have to start making sure that

[4:29:08] we all introduce each other I know we work with others across

[4:29:15] the state because our ecosystem is smaller and that's how we get

[4:29:18] bigger and better resource access by partnering with

[4:29:22] centerstate, partner is with the utica chamber even on a number

[4:29:25] of things. We have a lot of the same

[4:29:27] overlap and corporations and alumni businesses and air force

[4:29:31] research lab contracts that were heavily involved so we are

[4:29:34] spending a lot of time across the state of new york.

[4:29:37] we are used to in the north country making a drive to go to

[4:29:40] places so and hanging out with our friends at suny esf in a lot

[4:29:44] of the projects, so we are very much much with all of them.

[4:29:48] did I new york state business council manufacturing tour on

[4:29:51] all of the north country stops this past week as well.

[4:29:55] >> and the only other question is are farmers and our folks in

[4:30:01] agriculture are aware, right, have you made sure they

[4:30:03] understand what is happening as you have been such a strong

[4:30:09] crutch and sanes to them. Are you giving them any sort of

[4:30:13] advice of what to do if you are not there?

[4:30:16] I mean I know one of the farms you were doing a study in the

[4:30:20] corn field that we were there and you didn't even, because it

[4:30:23] has to be random, you didn't even know we chose that farm so

[4:30:28] I thought it was fun. We coordinate quite a bit

[4:30:31] internally. If I may go back to address your

[4:30:33] first question which I didn't understand at first so forgive

[4:30:36] me we do actually collaborate quite a bit with our community

[4:30:40] college partnerships and in fact while I do not do this directly

[4:30:45] myself, our cornell workforce program that the state

[4:30:48] legislature also funds has been working hand in hand with mohawk

[4:30:52] valley community college on the suny apprenticeship program.

[4:30:55] so I'm really pleased to say we have a pre-apprenticeship for

[4:30:58] dairy inarmers already approved through mohawk valley community

[4:31:03] college and we have multiple feed processing apprenticeship

[4:31:08] programs ongoing one with cayuga community college and milking

[4:31:14] ingredients, one with upstate niagara on the verge of getting

[4:31:18] approved and partnership with the local community college

[4:31:20] there. And our faculty members do the

[4:31:22] food safety training and in fact, our goal is to create

[4:31:40] connectivity. So while my work is centered in

[4:31:45] start-up works which is an incubator hotspot in ithaca, we

[4:31:50] are regularly engaging with our colleagues in central new york,

[4:31:53] the finger lakes and the southern tier explicitly by the

[4:31:58] mandate of our contract but increasingly in the north

[4:32:00] country and the mohawk valley, too, to make sure that there is

[4:32:04] a good fit between start-ups and the resources that are out there

[4:32:09] in new york state and more than that, to kind of convene people

[4:32:13] around those resources so there is fluency and understanding to

[4:32:19] the part of the resources themselves what is available for

[4:32:22] start-ups working in the food and ag space.

[4:32:25] and that includes the farms and the food businesses that are

[4:32:28] already here scwhr thank you. >> can I just add one more piece

[4:32:33] about the center for excellence in healthy water solutions.

[4:32:37] water is a great asset for new york and a number of

[4:32:40] municipalities that are very concerned about the micron

[4:32:43] buildout, what are the processes that's part of the pfas.

[4:32:53] and the same with chobani. Three farms have come to us

[4:32:56] talking about, you are asking for an increase.

[4:32:58] it's going to increase the dairy waste and you've got to manage

[4:33:01] that in a way that doesn't go into the river as and the water.

[4:33:05] have you to create the right digester systems for all of your

[4:33:09] dairy cattle emissions. >> thank you, chair.

[4:33:18] >> to your point, these conflicts are all over

[4:33:21] new york state and as we speak right now, they have been there

[4:33:25] for 15 or 20 years and you are absolutely right, I mean if

[4:33:29] anybody hit the nail on the head today, that was it because the

[4:33:32] average person does not understand what that increase

[4:33:36] means to their community, especially if they live next to

[4:33:40] that farm or they border it. And to your statements about

[4:33:46] pfas, I want to tell you, when I was saving this morning, I asked

[4:33:49] myself, what is my pfas load right now?

[4:33:54] so anything we can do-- and I can speak to you from my degree

[4:33:57] is in agricultural science, my undergraduate, and I have most

[4:34:01] of my military career was in scientific fields.

[4:34:04] so anything that we can do to help you, I am personally all

[4:34:10] about because the average person in our state does not understand

[4:34:15] what we are faced with, and how detrimental these things can be

[4:34:21] to not only people today but being able to reproduce our

[4:34:29] children, our grandchildren, et cetera.

[4:34:31] so I want to ask a question to all of you.

[4:34:35] I understand and my perspective, I have led several federal

[4:34:40] research and development programs and done a lot of work

[4:34:43] with universities so I have been on the other side of it, too.

[4:34:46] have you looked to see, and this is not a trick question.

[4:34:50] I don't know the answer, is what cornell is experiencing is

[4:34:55] purdue experiencing the same thing, is penn state

[4:34:58] experiencing the same thing, et cetera, throughout the country?

[4:35:00] do we know if there are sim rates of reduction or this

[4:35:08] (inaudible). >> that's a good question I know

[4:35:10] that there has been coordination and collaboration amongst the

[4:35:14] association of public land grant universities.

[4:35:18] there have been dislocations in funding for other public land

[4:35:22] grant universities as well. Whether or not it's the same

[4:35:25] amount, I'm not sure. >> I'm just curious.

[4:35:28] that would be a valuable thing to know to be able to put into

[4:35:32] perspective so that we can make will articles ument to help you

[4:35:37] I will say our agricultural colleges rank number one in the

[4:35:42] nation. We regularly in the top four,

[4:35:44] our r & d spend is 290 million per year annually just in my

[4:35:48] college, not cornells which is even higher than that.

[4:35:52] so our impact is probably greater than other land grants

[4:35:56] just by virtue of frankly how excellent our institution is and

[4:36:00] that is what we really sook to-- seek to preserve for new york

[4:36:07] family farmers. >> no doubt.

[4:36:08] I can personally say the only thing that I wish we could do

[4:36:14] immediately today for cornell is give you more funding because I

[4:36:20] have found-- >> we are always open to that,

[4:36:25] john this is very real. A lot of the things you have,

[4:36:28] you don't have the bandwidth to follow up with respect to how

[4:36:33] many people might take or make use of that.

[4:36:45] as somebody who has done a lot with cornell, that would

[4:36:49] immensely help you help us. >> I thank you for your

[4:36:51] partnership and I will say that if we fail to invest in science

[4:36:56] and agrifeed systems, our kids are going to have a much harder

[4:36:58] tile than we are going to have with the food supply.

[4:37:01] >> you don't center to convince me.

[4:37:05] absolutely. Thank you.

[4:37:07] >> >> so just real quick.

[4:37:21] the numbers jumped a little bit. For rochester, is it 10 million

[4:37:27] or $100 million that is in jeopardy in research?

[4:37:32] >> is it 10 million or 100 million?

[4:37:34] >> the number-- clarification on the number that is in jeopardy

[4:37:38] on research? >> I don't have a number for the

[4:37:41] number of federal grants that are in jeopardy at the

[4:37:44] university of rochester. I know it's in the millions but

[4:37:46] I don't know the overall I know there are multiple news stories.

[4:37:57] it has been clear certain blue states definitely, federal

[4:38:03] grants have been utilized targeting even in admissions,

[4:38:07] schools have to give an admission plan to get federal

[4:38:09] dollars to be approved. The economic multiplier in your

[4:38:16] the direction we are going it could be an economic deterrent

[4:38:20] in the billions for new york state or the country in

[4:38:23] general and specifically on agricultural, I know for

[4:38:28] example, one grant cancel add round the screw worm that can

[4:38:32] possibly cause over a billion dollars in damage for our cattle

[4:38:35] industry, which a lot of people don't know in new york we have a

[4:38:38] robust cattle industry, mostly dairy, but we have a robust

[4:38:42] cattle industry that might now be in danger because of the cuts

[4:38:47] in addition, our and I was surprises that congress members

[4:38:55] defended these cuts because it's going to impact not

[4:38:58] new york city per se but we are looking at the southern tier,

[4:39:01] north country and western new york, where a lot of those

[4:39:03] good paying scientific jobs and research jobs are now in

[4:39:07] jeopardy and I really am concerned about not just the

[4:39:09] current professors who have endowed chairs from it but that

[4:39:13] research assistant that doesn't get the chance to work on an

[4:39:18] awesome scientific project that can create a bright economic

[4:39:20] future for them so my question to you guys is how should we

[4:39:28] pivot and refocus and make it known that research and

[4:39:31] scientific research is key to our economic future?

[4:39:33] how do we pivot that conversation how do we make

[4:39:37] everyone understand how important it is continue to

[4:39:43] raise your voice and speak up your message resonates strongly

[4:39:47] with my heart because I believe strongly in the long-term value

[4:39:50] of research. Not just for our food systems

[4:39:53] which is what I know and our environmental systems clarkson's

[4:39:59] water resources so raising your voice I think is important.

[4:40:03] bee have a wonderful graduate student activity that we have

[4:40:09] science club, the barbara mcclintock club and our

[4:40:12] graduate students are taking action to start a letter writing

[4:40:14] campaign to start talking about the work, kind of as clarkson

[4:40:18] said, in a way that is non-scientific and helps the

[4:40:22] public understand the impact of long-term investments in

[4:40:24] research and science I'm happy to share some of the stories

[4:40:27] with you. They're really heart warming to

[4:40:29] see this ground swell of support I hope is starting to come when

[4:40:33] we as a society realize we need to support scientific innovation

[4:40:37] for our future. >> especially in agriculture,

[4:40:38] like people don't see a point of other countries ahead of us if

[4:40:45] our food supply complain gets interrupted or devastated by

[4:40:48] something we could have stopped we have no one to blame but

[4:40:54] ourselves I will add the timing is kind of funny.

[4:40:57] because when I was sitting up there during the hearing,

[4:41:01] university of rochester every few years, we hire an outside

[4:41:05] firm to do an economic impact report for the university.

[4:41:10] it's important to communicate to the community, to the state, to

[4:41:13] the federal government to our elected officials, the impact

[4:41:16] that the university is having. And I got the final draft while

[4:41:23] I was sitting up there. That's something that will be

[4:41:25] coming out soon. I know we at the university try

[4:41:28] to, you know, communicate the impact that the research is

[4:41:32] having, the jubes that it is supporting, the innovation that

[4:41:36] it is helping to foster and, you know, continuing to do that I

[4:41:39] know that my colleagues up here from clarkson, cornell and from

[4:41:44] other institutions across the state continue to do that and it

[4:41:49] is one of the most important things is to communicate that

[4:41:53] impact and it's something I'm going to continue to do.

[4:41:56] plenty of numbers in here and plenty more that are coming.

[4:42:01] >> thank you. >> I add a simple k-12 outreach

[4:42:04] I think is a simpler way of getting more of what we do in

[4:42:09] our labs in front of the children, they go home, they

[4:42:12] talk about it at their dinner table like wow I learned you who

[4:42:17] to program my phone to look at harmful algae blooms with the

[4:42:21] app and decide whether it's got characteristics that are bads or

[4:42:25] good and so citizen science is something that part of the

[4:42:28] outreach. That's always not the easiest

[4:42:30] thing and we think about impacts of federal funding changes that

[4:42:34] are going to be harder to fit that in but I think very much a

[4:42:38] priority how we communicate with the youth in our communities to

[4:42:42] get them excited about the kinds of careers new york has been

[4:42:45] investing heavily in a lot of stem technology companies and we

[4:42:50] have heard that they don't have enough, you know, student

[4:42:54] workers to fill those I had 250 companies come to clarkson.

[4:42:59] I graduate 750 a year at the last career fair and you know, I

[4:43:04] need 180 engineers and you are like, okay, you are not going to

[4:43:07] get them all here. I would love to have that

[4:43:09] problem at a bigger level getting more kids excited about

[4:43:13] the field. >> and I would just like to

[4:43:18] note, too, the first casualty of the reduction in funding coming

[4:43:23] from federal grants is really kind of the scarcity of

[4:43:30] resources with a net result of a lack of collaboration.

[4:43:35] and so, you know, supporting programs that build bridges

[4:43:39] between institutions, so that we are able to work together so

[4:43:43] that researchers are able to collaborate so that asker

[4:43:49] organizations that help researchers translate their

[4:43:53] findings into products and services that benefit our

[4:43:59] society that's see so support is those programs and making sure

[4:44:02] that mandate is built into the kind of programs that we are all

[4:44:06] here talking about today. One thing I was going to add

[4:44:15] real quick, research funding, I think it is important to note

[4:44:18] that when faculty leave a university the federal funding

[4:44:25] that they have been awarded, leaves with them, too so if we

[4:44:31] are unfortunate to lose a researcher to massachusetts,

[4:44:35] california, texas, some other state, they can bring with them

[4:44:40] those jobs you were just talking about because often times grad

[4:44:45] students assistants will follow with them, but hundreds of

[4:44:48] thousands, millions of dollars in federal funding go goes to

[4:44:52] that other institution. It can leave the state.

[4:44:55] new york has been very successful with the new york

[4:44:57] first program. It's focused on medical schools

[4:44:59] like the university of rochester we have been the recipient of

[4:45:04] three dint awards. That program has helped us to

[4:45:07] attract talent from other states, from texas and others,

[4:45:10] to new york and with them has come the star researcher but

[4:45:17] support staff and millions of dollars so it's important to

[4:45:23] also focus on the retention aspect because we don't want to

[4:45:29] lose talented researchers and faculty to other states that

[4:45:34] might be looking at making substantial investments in the

[4:45:39] life sciences and biotech space to try to make up for what is

[4:45:42] being created by changes in the administration down in

[4:45:47] washington. >> I just want to say when you

[4:45:50] were talking about having job fairs and you only have so many

[4:45:54] graduates, one of the top reasons that micron stated that

[4:45:58] they selected was site was because every year within an

[4:46:02] hour and a half of the site, 7200 engineers graduate.

[4:46:07] so that was a big deal for them. Thank you very much and sorry it

[4:46:15] took so long to get to you, but I think it was worth it.

10-9-25 Assembly Public Hearing on the Impact and Effectiveness of Economic Development Programs Funded in the Enacted 2025-26 State Budget

Agenda

Transcript